Announcement PDF KINGSTON RESOURCES LIMITED & its Controlled Entities KINGSTON RESOURCES LIMITED ABN 44 009 148 529 Annual Financial Report For the year ended 30 June 2024 CONTENTS KINGSTON RESOURCES LIMITED & its Controlled Entities Contents Page No. Corporate Directory ...................................................................................................................................... 2 Chairman’s Letter ......................................................................................................................................... 3 Directors’ Report .......................................................................................................................................... 4 Lead Auditor’s Independence Declaration ................................................................................................. 29 Consolidated Statement of Financial Position ............................................................................................ 30 Consolidated Statement of Profit or Loss and Other Comprehensive Income ........................................... 31 Consolidated Statement of Changes in Equity ........................................................................................... 32 Consolidated Statement of Cash Flows ...................................................................................................... 33 Notes to the Financial Statements .............................................................................................................. 34 Directors’ Declaration ................................................................................................................................ 63 Independent Auditor’s Report .................................................................................................................... 64 Corporate Governance Statement .............................................................................................................. 69 Additional Information ............................................................................................................................... 70 CORPORATE DIRECTORY KINGSTON RESOURCES LIMITED & its Controlled Entities Corporate Directory DIRECTORS Mick Wilkes (B Eng (Hons), MBA, GAICD) Non-Executive Chairman Andrew Corbett (B Eng (Mining, Hons), MBA) Managing Director Anthony Wehby (MAICD) Non-Executive Director Stuart Rechner (BSc, LLB, MAIG, MAusIMM, GAICD) Non-Executive Director COMPANY SECRETARY Vinod Manikandan REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS Suite 202 – 201 Miller Street North Sydney NSW 2060 AUSTRALIA Telephone Email Website (02) 8021 7492 info@kingstonresources.com.au www.kingstonresources.com.au AUDITORS Hall Chadwick Chartered Accountants SHARE REGISTRY Automic Group BANKERS Australia & New Zealand Banking Group Limited Macquarie Group Limited Bank of South Pacific SOLICITORS Cowell Clarke Commercial Lawyers Resources Legal Pty Ltd STOCK EXCHANGE Australian Securities Exchange (ASX) Secondary Listing - Frankfurt Stock Exchange ASX CODE KSN -2- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Chairman’s Letter To our valued shareholders and other stakeholders Welcome to the Annual Report for 2024. It has been another very busy year for the team at Kingston, with the successful completion of the tailings retreatment project and refurbishment of the process plant in readiness for mining hard gold and polymetallic ores for our resources. We completed the tailings treatment in May, with 12,461oz of gold sold for the year, producing $10 million in operating cash flow. First gold ore from the Pearse pits was mined in June and processing through the newly refurbished crusher and mills commenced after year end in July 2024. What is most exceptional about the plant refurbishment is that very low costs incurred, which was achieved by a small team of highly skilled and dedicated professionals at site to manage the project. We anticipate this will be the start of long run of mining and processing at Mineral Hill that will underpin the growth of the Company in the coming years. As with most other activities at Mineral Hill, open pit mining is being carried out by the Company. Local employees who were operating the tailings re-mining project have transitioned across to open pit mining, with mining equipment being hired from a local supplier. We believe this strategy will continue to deliver significant benefits to the Company and local communities, and we therefore intend to follow the same strategy for development of the underground mine, which will recommence in 2025. At Kingston we believe Mineral Hill is now a significant strategic asset. It is unique in NSW, being a fully permitted mining and processing operation that can produce precious and base metals from the various orebody types that exist within the broader Cobar region. The region has multiple “stranded” orebodies that are not currently large enough to justify the time and cost to permit and build a dedicated process plant and tailings facility, thus presenting a significant opportunity for Kingston and the shareholders of other companies to benefit through strategic cooperation. The other significant development is the renewed enthusiasm for gold. In FY24, the gold price rose 21% from A$2,877 to A$3,486, as the global economy adjusted to expectations of falling interest rates following the high inflationary period post covid. Misima continues to represent an outstanding investment opportunity with strong economics and a long mine life. We continue to pursue strategic options for the development of Misima that will lead to growth in shareholder value and realisation of significant social benefits to the people of Misima and the people of PNG more broadly. Thank you again for your continued support for Kingston. Your sincerely Mick Wilkes Non-Executive Chair 13 September 2024 -3- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Directors’ Report The Directors present their report together with the financial statements of the Consolidated Entity (or ‘Group’), being Kingston Resources Limited (‘Kingston” or the “Company’) and its subsidiaries, for the financial year ended 30 June 2024 and the independent auditor’s report thereon. PRINCIPAL ACTIVITIES The Company is an Australian-based Company listed on the ASX. The principal activity of the Group during the period was mineral production and exploration. OPERATING RESULTS AND REVIEW OF OPERATIONS FOR THE YEAR Operating Results Kingston reported a statutory after tax loss of $720,353 (2023: profit $9,787,333). The financial loss in FY24 relative to profit in FY23 is due to completion of tailings retreatment project and transitioning to hard rock mining during the year. Review of Operations Kingston had an enormously productive year at Mineral Hill, completing numerous development projects and maximising gold production and cash flow over the term. The company also boasted commencement of open pit mining and a full plant refurbishment at Mineral Hill. Other major achievements included: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ Gold production of 11,818oz from the Tailings Project at Mineral Hill. Commenced open pit mining at Pearse North with the first blast on 11 June 2024. Processing plant refurbishment, a major technical and financial success, with key refurbishments including ball mill re-lining, conveyor belt alignment, crusher circuit, and motor control modernisation. Near mine underground discovery at Southern Ore Zone (SOZ), with a new underground lode discovered, confirming potential resource expansion. Assays from drill holes at SOZ extended high grade mineralisation over 400m along strike, confirming highgrade polymetallic mineralisation and supporting resource confidence. Mineral Resource Estimate for Pearse North increased by 30% in gold and 67% in silver (contained metal basis). Multiple phases of exploration and geotechnical drilling at deposits within the current mine plan and near mine targets within the mining lease. Strategic review at Misima Gold Project in PNG continued to maximise project value with interest driven by favourable gold prices. Potential pre-tax NPV of $2.2 billion under current market conditions. The company's growth outlook has been strengthened by the transition back to hard rock mining, allowing the company to redirect resources and skilled staff to higher grade ore. This achievement lays the groundwork for a five-year mine plan beyond the tailings processing phase. This plan complements the longer-term opportunities offered by the Misima Gold Project. Mineral Hill Mine Tailings Project Kingston had a highly successful year at Mineral Hill for our operations and projects. The Tailings project was successfully completed in May 2024, producing a total of 34,540 ounces of gold and generating $26 million in operating -4- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities cash flow since acquisition of Mineral Hill by Kingston in January 2022. This achievement has provided a solid financial foundation for the company's ongoing operations. Gold sales from the Tailings Project were 12,461oz at an average sales price of A$3,104/oz with all-in-sustaining cost (AISC) of $2,291 Table 1: FY24 production results and performance relative to FY23. FY23 Actuals FY24 Actuals Y on Y Δ 627,994 505,845 -19% Average Feed Grade (g/t) 1.36 1.30 -4% Gold Production (oz) 16,520 11,818 -28% Gold Sales (oz) 16,068 12,461 -22% Silver Sales (oz) 16,898 16,266 -4% AISC (A$/oz) $1,686 $2,291 36% Sales (A$m) $44.7 $38.67 -13% Operating Cashflow (A$m) $16.9 $9.99 -41% Tonnes Processed (t) Open Pit Mining Commences Open pit mining commenced at Pearse North, with the initial blast on 11 June and the first oxide ore delivered to the ROM pad (See ASX Announcement on 18 June 2024). This marks a significant step towards Kingston's goal of becoming a regionally significant producer, following the successful completion of the tailings retreatment project in May 2024. The company’s emphasis on owner-operator mining has continued, with equipment operators from the tailings mining operation successfully transitioning over to the open pit mining operations. Figure 1: Open pit blast. -5- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 2: Open pit excavation haulage Processing Plant Refurbishment and Commissioning The plant refurbishment has been a major technical and financial success for Kingston this year. Rapid advancements are occurring in every area of the operation. The project has been entirely managed in-house with our own expertise, significantly impacting our organisation's capabilities and creating a workforce with diverse skills. Key areas of focus during the year include the re-lining of the ball mills, alignment of the conveyer belts, refurbishment of the crusher circuit and fine ore bins and the modernisation of the motor control circuits (electrical control). In July, stockpiled oxide ore from Pearse North was fed into the comminution circuit, sales of gold and silver doré commenced in August. Restoring the Mineral Hill processing plant to full capability is creating immense value for the region. The plant is the only facility in the southern Cobar Basin capable of producing multiple metal concentrates and precious metal doré. -6- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 3: Stockpiled oxide ore on the ROM pad. Figure 4: Kingston Board of Directors inspecting the Minerals Hill plant Exploration and Development Kingston’s main focus on exploration drilling during the financial year was on the Pearse gold-silver deposits and SOZ polymetallic deposit. The primary aim of the drilling was to infill the existing drilling and provide data for updating the Mineral Resources, Ore Reserves and Life of Mine Plan (LOM) plan. Southern Ore Zone (SOZ) At SOZ, drilling programs were focussed on increasing the confidence in the current Mineral Resource estimates and exploring for extensions to the mineralisation. Infill and extensional drilling into the Southern Ore Zone returned high grade polymetallic assays and resulted in the confirmation of the near mine discovery made in the December quarter of 2023. -7- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 5: Mineral Hill regional geology, resources and infrastructure. Near-Mine Underground Discovery Kingston now has three intersections into the newly discovered underground lode. Drill hole KSNDDH019 followed up the initial intersection made in KSNDDH017 in the footwall of the Southern Ore Zone (See ASX announcement on 15 February 2024). Significant assays over this zone include: • 12.5m @ 3.41% CuEq from 405m (KSNDDH017) • 2m @ 6.37% CuEq from 255m (KSNDDH019) These two drill holes have also confirmed the historical significant intercepts from “New Structure #1” and highlighted the potential to extend the mineral resources at depth. -8- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 6: Board review on the progress of process plant refurbishment on July 23 The confirmation of the new lode marks a significant milestone for the company, as it paves the way for further discoveries within the mine. The Southern Ore Zone remains open along strike at both ends and at depth. The availability of suitable drilling platforms has been the only limiting factor for continuing to expand the footprint of underground mineralisation so far. Confirmation of the Main Underground Lode over 400m. Additional infill and extensional drilling into the underground resources was undertaken during the March quarter. Outstanding assay results were reported, clearly illustrating the high-grade nature of the deposit and the region’s metal endowment (see ASX announcement on 9 April 2024). Drill holes KSNDDH020, 21, 22 and 23 were drilled to infill the upper areas of the underground resources and aimed at increasing the confidence and extent of the existing resources. The -9- DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities main lode in this part of the deposit (namely, the A-lode) has now been traced continuously over 400m strike and 200250m down dip. Significant intersections include: • 9m @ 3.14% CuEq from 214m (KSNDDH020): o • 4m @ 2.38% CuEq from 228m (KSNDDH020) o • Including 3m @ 8.13% CuEq Including 3m @ 4.67% CuEq from 191m (KSNDDH021) 7.0m @ 3.76% CuEq from 164m (KSNDDH022): o Including 3m @ 6.18% CuEq from 165m • 8.0m @ 2.06% CuEq from 173m (KSNDDH023) • 10.2m @ 2.73% CuEq from 187.8m (KSNDDH023) Figure 7: Drill core from KSNDDH021 (4m wide sulphide rich breccia lode (estimated true width of 2m) within a broader 31.6m wide brecciated and veined lode zone from 175.3mdh). Pearse North During the year, drilling was completed at Pearse North, with the primary purpose of collecting additional geotechnical data in preparation for open pit mining (see ASX announcement on 5 September 2023). The results returned numerous high-grade gold intercepts, validating the existing geological model and enhancing the Company’s confidence in the mine plan. Additionally, there were other significant intersections outside the existing Mineral Resources, indicating the potential for additional mineralisation during mining operations. - 10 - DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 8: PGNT03 significant intersections The Mineral Resource Estimate (MRE) for Pearse North increased substantially, with gold and silver resources rising by 30% and 67% respectively. The total Resources is now 292 kt @ 3.2 g/t Au and 34 g/t Ag with 30 koz of gold and 318 koz of silver (see ASX Announcement on 7 May 2024). This increase reflects a greater confidence in the deposit’s continuity, as a review of the orientation of mineralisation demonstrated greater spatial continuity than previously modeled. Additionally, the mine plan is being optimised to leverage the current favorable gold prices, with planned pit designs undergoing re-optimisation. Table 2 Pearse North Mineral Resource Estimate at 1.0g/t Au Cut Off Classification Indicated Inferred Total Tonnes kt 270 22 292 Grade Au g/t 3.2 2.9 3.2 Grade Ag g/t 34.2 29.1 33.9 Metal Au koz 28 2 30 * Due to rounding to appropriate significant figures, minor discrepancies may occur, tonnages are dry metric tonnes. - 11 - Metal Ag koz 297 21 318 DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 9: Plan view of Pearse North mineralisation wireframe outlines, block model and pit design (horizontal section at 310m AHD +-5m). Eastern Ore Zone Drilling at the Eastern Ore Zone during the year confirmed a continuous lode, with a notable interval of 3m @ 25.94g/t gold. Kingston plans to re-enter the Eastern Ore Zone's underground development, where high-grade gold-copper was historically mined. The company is updating Mineral Resource estimates for near-term production areas. While EOZ mineralisation isn't currently included, it may be incorporated in future estimates. Encouraged by positive results, Kingston aims to expand Mineral Resources and extend Mineral Hill's life of mine through further exploration and drilling. The company remains focused on maximising mining value and sustainable growth. - 12 - DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Figure 10: Long section view of Eastern Ore Zone (EOZ) showing extension potential. Updated LOM Plan An update of the life of mine (LOM) schedule is currently underway. This update will include revised Ore Reserve estimates for the Pearse Pits and a first-ever Ore Reserve for the Southern Ore Zone (SOZ). The Ore Reserve inputs will incorporate the latest Pearse North Mineral Resource Estimate (MRE), updated metal pricing for all deposits, and a planned update of the SOZ MRE (which is being finalized). The sequencing will align with the LOM plan disclosed to the ASX on 27 June 2023, comprising open pit mining from the Pearse Pits and underground mining from SOZ and Jack's Hut. This represents the most comprehensive technical work undertaken at Mineral Hill in recent history, providing all stakeholders with clarity on the asset's long-term future. Numerous opportunities to extend the LOM and increase the proportion of Ore Reserves in the mine plan will continue to emerge. Safety, Environment and Sustainability During the year, Kingston implemented extensive new safety, training, and hazard management measures at Mineral Hill. With the transition to open pit mining, we've updated mining procedures and implemented a range of explosives management plans and protections. On-site training has intensified with the addition of staff in the mining and processing departments. In line with our commitment to local employment, we've launched a traineeship program offering nationally recognised qualifications. We're continuously upgrading our workforce's skills through on-the-job training, focusing on areas such as working at height, confined space operations, first aid, and blast procedures. Kingston Resources is committed to sustainability principles and has begun reporting on key environmental, social, and governance aspects. We're compiling sustainability disclosures using universal, comparable metrics centred on people, planet, prosperity, and governance principles. This framework allows us to align our mainstream reporting with performance against key indicators. We're actively seeking opportunities to enhance transparency on issues material to our business. - 13 - DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities Misima Gold Project Kingston’s focus at the Misima Gold Project has been to attract a company to help bring the mine back into production. An internal process has been operating to select a partner who has the technical credibility and financial strength to realise the project’s huge cash flow potential. . The project contains enormous latent value for Kingston shareholders, particularly in light of the recent strength in the price of gold. Recent momentum in the gold price over the last year has generated significant interest in the project, which is highly leveraged to gold prices. Under a favourable gold price scenario of US$2,400/oz and an AUD:USD exchange rate of 0.65, Misima is projected to deliver a pre-tax NPV1 of $2.2 billion. Near-mine surface mapping and inspections were undertaken during the year to firm up exploration models. Additionally, further environmental data was collected for the environmental impact statement (EIS). The company is partnering with the local PNG government representatives and related financial institutions to deliver a Women in Business program, which aims to increase the financial literacy of women on the island. Women are encouraged to develop business plans for their own business ideas so that they can advance their idea through to funding and eventual launch. The program has had high engagement and groups in the broader community are also expressing interest in being involved. Figure 1: Women in Business program on Misima Island. - 14 - DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities MINERAL RESOURCES TABLE Mineral Hill (NSW, Australia) Table 3: Mineral Hill Mineral Resource summary, prepared by Mr S. Hayward of Kingston Resources Ltd. Rounding errors may occur. Resource Category Tonnes Au Ag Cu Pb Zn Au Ag Cu Pb Zn kt g/t g/t % % % koz koz kt kt kt Measured Indicated Inferred Total 228 4,893 3,098 8,220 2.11 1.08 1.17 1.14 11 28 23 27 1.3% 1.2% 0.7% 1.0% 0.5% 1.7% 1.4% 1.6% 0.3% 1.1% 1.2% 1.1% 15 169 117 302 80 4,361 2,253 6,693 3 47 22 72 1.2 70 42 113 0.7 42 38 81 Table 4: Mineral Hill Mineral Reserve summary, prepared by Mr J. Wyche of Australian Mine Design and Development Pty Ltd. Rounding errors may occur. Tonnes Au Ag Cu Pb Zn Au Ag Cu Pb Zn kt g/t g/t % % % koz koz kt kt kt 697 697 0.00 1.95 1.95 0 57 57 44 44 0 470 470 Reserve Proved Probable Total Misima Gold Project (PNG) Table 5: Misima Gold Project Mineral Resource summary, prepared by Mr S. Hayward of Kingston Resources Ltd. Rounding errors may occur. Deposit Umuna Total Resource Umuna TOTAL Cooktown Stockpile Cooktown Stockpile Ewatinona Total Resource Ewatinona TOTAL Misima Misima TOTAL Classificatio n Indicated Inferred Cutoff g/t Au 0.3 0.3 Inferred 0.5 Indicated Inferred 0.3 0.3 Indicated Inferred Tonnes Mt 93.5 64.1 157.6 3.8 3.8 4.2 3.4 7.6 97.7 71.3 169 Gold g/t Au 0.78 0.58 0.70 0.65 0.65 0.88 0.74 0.81 0.79 0.59 0.71 Silver g/t Ag 4.3 3.8 4.1 7.0 7.0 2.6 3.2 2.8 4.3 3.8 4.1 Au Moz Ag Moz 2.4 1.2 3.6 0.1 0.1 0.12 0.08 0.2 2.5 1.4 3.8 13.1 7.5 20.5 0.9 0.9 0.3 0.3 0.7 13.4 8.7 22.1 Table 6: Misima Gold Project Ore Reserve summary, prepared by Mr J. Wyche of Australian Mine Design and Development Pty Ltd. Rounding errors may occur. Ewatinona Probable Ewatinona Total Umuna Probable Umuna Total Probable Misima Total Reserve Tonnes Mt Gold Au g/t Silver Ag g/t Au koz Ag koz 3.9 3.9 0.8 0.8 2.4 2.4 100 100 300 300 71.7 71.7 75.6 75.6 0.8 0.8 0.8 0.8 4.6 4.6 4.5 4.5 1,800 1,800 1,900 1,900 10,600 10,600 10,900 10,900 - 15 - DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities COMPETENT PERSON’S STATEMENT The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Stuart Hayward BAppSc (Geology) MAIG, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr. Hayward is an employee of the Company. Mr. Hayward has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Hayward consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. The Competent Person signing off on the overall Ore Reserves Estimate is Mr John Wyche BE (Min Hon), of Australian Mine Design and Development Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient relevant experience in operations and consulting for open pit metalliferous mines. Mr Wyche consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. Kingston publicly reports Exploration Results and Mineral Resource estimates in accordance with the ASX Listing Rules and the requirements and guidelines of the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves – the JORC Code. Kingston’s governance for public reporting of Exploration Results and Mineral Resource estimates includes important assurance measures. All reports are signed-off by appropriate JORC Competent Persons with JORC Code Table 1 Checklists as required. Exploration Results and Mineral Resource estimates are also peer reviewed (either by Kingston technical staff or suitably qualified external consultants) before Board approval and ASX release. FINANCIAL POSITION At the end of the financial year, the Consolidated Entity had net assets of $90,781,524 (2023: $76,454,900) and held $8,357,776 in cash (2023: $18,206,767). On 26 July 2023, the Company issued 4,561,810 shares to eligible employees upon exercise of 4,561,810 LTI options for cash totalling to $45,618. The fair value of options issued was $183,515. On 17 August 2023, the Company issued 11,764,705 shares and 5,882,352 unlisted attaching options totalling to $1,000,000 under Tranche 2 of the Share Placement Offer. No monies were raised from the Tranche 2 placement, however the final milestone payment of USD$3.5 million due to Quintana Resources Holdings LP upon producing 30,000 Oz’s of gold since acquisition of Mineral Hill Pty Ltd was reduced by USD$645,100 (A$1million). Fair value of unlisted options amounting to $69,043 was recognised under share-based payment reserve. The unlisted options are each exercisable at $0.14 each to acquire one fully paid ordinary share exercisable at any time up to 31 July 2025. On 17 August 2023, the Company issued 10,247,017 shares and 5,123,459 unlisted attaching options under the SPP offer for cash totalling $871,000. Fair value of unlisted options amounting to $60,136 was recognised under share-based payment reserve. The unlisted options are each exercisable at $0.14 each to acquire one fully paid ordinary share exercisable at any time up to 31 July 2025. On 18 August 2023, the SPP was completed upon issuing 1,517,647 shares and 758,823 unlisted attaching options to the sub underwriter Delphi Unternehmensberatung Akteingesellschaft, an existing major shareholder and sophisticated investor for cash totalling to $129,000. Fair value of unlisted options amounting to $8,907 was recognised under sharebased payment reserve. The unlisted options are each exercisable at $0.14 each to acquire one fully paid ordinary share exercisable at any time up to 31 July 2025. On 2 April 2024, the Company announced its intention to undertake a Share Placement Offer and an Accelerated NonRenounceable Rights Issue Offer (ANREO) raising a total of $13.48 Million. On 8 April 2024, the Company issued 124,490,461 shares under the Placement Offer and 11,241,969 shares under the accelerated component of the ANREO for cash totalling to $8,822,608. On 15 May 2024, the Company issued 71,751,815 shares under the retail component of the ANREO for cash totalling to $4,663,867. - 16 - DIRECTORS’ REPORT KINGSTON RESOURCES LIMITED & its Controlled Entities SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Other than reported above in the Review of Results and Operations, there were no significant changes in the state of affairs of the Company during the reporting period. MATTERS SUBSEQUENT TO THE END OF FINANCIAL YEAR On 29 August 2024, 1,134,182 STI performance Options vested and were converted to non-transferable ZEPOs. All the vested STI ZEPOs have an expiry date of 3 years from vesting. 2,010,910 unvested STI performance options expired. On 23 August 2024, the Company secured a $5 million debt facility in addition to its existing $10 million debt, under a revised facility agreement with PURE Asset Management to fund the Company’s key growth initiatives at Mineral Hill. The additional debt facility was drawn immediately and is repayable on 22 February 2027. Other than the above, there has been no other matter or circumstance which has arisen since 30 June 2024 that has significantly affected or may significantly affect: a) Kingston Resources Limited’s operations in future financial years; or b) the results of those operations in future financial years; or c) Kingston Resources Limited’s state of affairs in future financial years. DIVIDENDS OR DISTRIBUTIONS No dividends were paid during the financial year and the directors do not recommend the payment of a dividend. FUTURE DEVELOPMENTS AND EXPECTED RESULTS The Group will continue its operating activities and evaluation of its mineral projects and undertake generative work to identify and potentially acquire new resource projects. Due to the nature of the business, the result is not predictable. ENVIRONMENTAL REGULATIONS The mineral tenements granted to the Company pursuant to New South Wales Mining Act 1992 and the Papua New Guinea Mining Act 1992, are granted subject to various conditions which include standard environmental requirements. The Company adheres to these conditions and the directo