Announcement PDF ANNUAL R E POR T 2023 Contents Corporate Particulars .....................................................................................................................................................1 Chairmans Letter ..............................................................................................................................................................2 Operations Report............................................................................................................................................................3 Directors’ Report ............................................................................................................................................................13 Auditor’s Independence Declaration .................................................................................................................26 Independent Auditor’s Report ................................................................................................................................27 Directors’ Declaration.................................................................................................................................................31 Statement of Profit or Loss and Other Comprehensive Income......................................................... 32 Statement of Financial Position ............................................................................................................................33 Statement of Changes in Equity ............................................................................................................................34 Statement of Cash Flows ...........................................................................................................................................35 Notes to and Forming Part of the Financial Statements ........................................................................ 36 Shareholder Information...........................................................................................................................................58 Corporate Particulars DIRECTORS Mr Tim Kennedy Mr Greg Evans Ms Katina Law COMPANY SECRETARY Mr Greg Fitzgerald PRINCIPAL PLACE OF BUSINESS 5/62 Ord Street West Perth WA 6005 Telephone +61 8 9389 9021 www.yandalresources.com.au REGISTERED OFFICE 5/62 Ord Street West Perth WA 6005 SHARE REGISTRY Automic Level 5, 191 St Georges Terrace Perth WA 6000 AUDITORS HLB Mann Judd (WA Partnership) Level 4, 130 Stirling Street Perth WA 6000 STOCK EXCHANGE LISTING Australian Securities Exchange Home Exchange: Perth Code: YRL Managing Director Non-Executive Chairman Non-Executive Director Yandal Resources Limited Annual Report 2023 2 Chairmans Letter Dear fellow shareholders, As Chair of Yandal Resources Limited, I extend to you, our valued shareholders, warm greetings, and appreciation for your support of our gold exploration company. The year 2023 was clearly affected by market headwind which saw much investor interest captured by “battery” minerals and a lack of interest in the junior gold sector. History shows that sentiment nearly always turns back to gold, and we believe Yandal is extremely well positioned to benefit when this occurs. Through the efforts of our team the company at the time of writing has a growing resource inventory that totals circa 424,000oz all located on granted mining leases strategically adjacent to nearby mining operations. Most importantly the team has focussed on advancing prospects with the potential to make transformative new discoveries. With a resolute focus on laying the groundwork for growth, we persist in channelling our capital and resources towards the exploration of our most promising targets within the Yandal and Norseman-Wiluna greenstone belts. Simultaneously, we remain vigilant to identifying emerging prospects and new opportunities in the region. Recent times have seen us undertake measures aimed at renewing and retaining our invaluable personnel. We have instituted a rigorous cost management and budgeting strategy, conducted a comprehensive review of our Company's assets, and prioritised our drilling programs to ensure that every dollar spent adds value to your company. Our focus remains on our people and culture, fostering an environment that celebrates inclusivity, diversity, accountability, and safety and wellbeing in every activity we undertake. Our decision-making processes benefit from a blend of technical expertise, diligent investigation, diverse experiences, lessons learned, and innovative ideas. In tandem, our commitment to sustainability spurs us to continuously elevate our ESG policies, strategies, and overall impact. I would like to take this opportunity to commend and thank my colleagues on the Board for their invaluable contributions, with special recognition reserved for the stability, commitment, and expertise that Mr. Tim Kennedy our Managing Director and CEO, brings to his role. The Board is optimistic of the future and anticipates positive strides forward in the year ahead. In closing, allow me to reiterate our profound gratitude for your continued support and encouragement. It is your trust that propels us forward, guiding our efforts as we navigate the journey ahead. With a blend of strategic foresight, operational diligence, and unwavering commitment to shareholder interests, Yandal Resources Limited remains primed to create significant shareholder value from our quality portfolio through the efforts of our dedicated teams and stakeholders. Thank you and warm regards, Mr Greg Evans Chair 20 September 2023 Perth, WA Yandal Resources Limited Annual Report 2023 3 Operations Report INTRODUCTION The Company's primary focus is exploration, discovery, and development of gold projects within the north-eastern and eastern Goldfields of Western Australia. Our strategic objective is delineating valuable resources in locations with proven gold endowment, In the case of our project’s, endowment is confirmed by the proximity of multi-million ounce gold mines such as Jundee, Bronzewing, and Kanowna Belle. With a long mining history, the areas in which we are exploring have well established infrastructure, thereby facilitating rapid cost-effective development of future discoveries. All three projects are regarded as having strong potential for significant new discoveries. Figure 1- Regional map of the Company’s gold projects, greenstone belts, regional towns and significant resource projects Yandal Resources Limited Annual Report 2023 4 Operations Report INTRODUCTION continued In 2023, our field exploration efforts were concentrated on the Mt McClure and Ironstone-Well Barwidgee Projects. At Mt McClure most activity was directed towards establishing initial Mineral Resource Estimates (MRE’s) from drilling data beneath and marginal to the historic open pits. An initial MRE was also completed for the Gordons Dam prospect (Gordons Project). As of the time of writing, the Company's total gold MRE inventory across all three projects stood at 424,000 ounces. This figure is expected to rise further upon completion of the MRE for the HMS Sulphur prospect at Mt McClure, which is scheduled for early next year. Exploration efforts at Ironstone Well-Barwidgee were focused on refining and prioritising targets that will guide upcoming phases of drilling. This process has led us to emphasise the highly prospective Oblique, Quarter Moon, and New England Granite areas, all of which have demonstrated mineralisation and considerable large-scale potential. Ongoing exploration reviews and targeting enabled the Company to focus on areas of the highest potential to cost-effectively add value. On the latter point the company engaged highly regarded independent consultants with structural interpretation and targeting expertise to unlock new exploration opportunities within our tenements. This collaboration has led to the identification of exciting new exploration targets, which are currently being advanced. Our commitment to nurturing crucial, long-term relationships with key stakeholders, including Native Title holders, remains a priority. We express our sincere gratitude for their ongoing support. CORPORATE The Company maintained a high level of activity throughout the year spending a total of approximately $3.6m exploring its three exploration projects. Due to the tighter market conditions the Company was cognisant of the need to restrain expenditure and focus drilling on the very highest priority prospects. A very high proportion of the exploration spend was on drilling related activities which included approximately 5,000m of aircore drilling and 15,000m of RC drilling. To sustain these activities the Company executed a capital raise of $5m (before costs) via a strongly supported entitlement issue and placement launched in October 2022. Yandal’s cash position at 30 June 2023 was $4.2m. The Company retained a small but effective board of three Directors during the year. In February 2023, long-standing Company Secretary Bianca Taveira stepped down due to other commitments. Her role was assumed by Greg Fitzgerald, a highly accomplished executive with previous experience as Company Secretary for an ASX 200 gold company. In March 2023, the company recruited highly regarded gold geologist Chris Oorschot as Exploration Manager to provide a strong technical and strategic focus and reinvigorate the exploration effort. The Company moved premises from a shared office to a dedicated office space close to peer companies and service providers in West Perth. We commend our small but dedicated exploration team for their enthusiastic contribution to advancing our projects during the year. ENVIRONMENT, SUSTAINABILITY AND GOVERNANCE The Company ESG responsibilities are a key consideration when planning and conducting its activities whether in the corporate office or in the field. Our core responsibilities are outlined in our Corporate Governance Codes and Policies. The areas of particular focus are:  People: We aim to foster a working environment that is collaborative, enjoyable, and stimulating and where our employees can fully use their expertise and develop new skills to the benefit of the Company and their ongoing careers. Our people drive our ESG efforts, so we value and place high value on new initiatives in this regard.  Safety: The health safety and wellbeing of our people including employees and contractors is of the utmost importance. We have well developed safety procedures and recognise that a safe work environment comes when a culture of safety is fostered amongst our people such that it becomes an inherent part of all we do. We are pleased to advise that there were no injuries incurred by our workforce during the period.  Stakeholders: We value and respect all stakeholders in the regions where we work and recognise the unique long-term relationship Indigenous Stakeholders have with the land. We respect the traditional owners of the land on which we work and endeavour to build long-term mutually beneficial relationships with our Indigenous stakeholders. Yandal Resources Limited Annual Report 2023 Operations Report ENVIRONMENT, SUSTAINABILITY AND GOVERNANCE continued  Environment: We have a dual focus when it comes to our environmental impact. Firstly, we strive to minimise the impact that our activities have in the areas in which we work. Secondly, we place high importance on our land rehabilitation obligations and aim to leave no longterm adverse environmental impact. Figure 2 - Rehabilitation Activities at Gordons. Preparing a native seed mix (left) and spreading seeds at rehabilitation area (right). 5 Yandal Resources Limited Annual Report 2023 6 Operations Report IRONSTONE WELL-BARWIDGEE The 100% owned Ironstone Well-Barwidgee Project covers approximately 374km2 of contiguous tenure, covering 53km of strike of highly prospective and under-explored greenstone between the Jundee and Bronzewing mines in the northern Yandal Greenstone Belt. The Yandal Belt has less than 2% outcrop and exploration is hampered by a thick weathering profile and widespread transported cover which masks the bedrock geochemistry. Within the project tenure less than 6% of historic drill holes are deeper than 100m and less than 30% are deeper than 50m and as a result much of the tenure has been poorly tested by past exploration efforts. The Company's overarching strategy involves identifying regions of significant geological and geophysical potential and then juxtaposing this information with historical exploration drilling data to pinpoint the most promising targets. These targets are then tested with effective drill programs for the presence of significant gold mineralisation. Yandal already has an established Resource of 268,000oz(1) of gold at Flushing Meadows and considers there to be strong potential to make new discoveries and expand this resource base within the extensive tenure holding. (1) YRL ASX announcement dated 4 November 2020 During the year, the company completed aircore and RC drill programs to refine and test several prospects. Encouraging aircore results were returned from Quarter Moon where intercepts including 6m @ 1.1g/t Au from 19m incl. 3m @ 1.9g/t Au (YRLAC1064) have extended the footprint of that prospect to over 1.5km of strike. RC drilling returned positive results from Sims Find, where an intercept of 3m @ 3.6g/t Au from 138m (YRLRC1045) was returned, approximately 2km NW along strike from the Figure 3 -Regional geology plan showing key prospects and tenure at main zone of mineralisation. At Cash, located on the the Ironstone Well- Barwidgee project southern margin of the project immediately along strike from the Corboys Deposit (ASX: NST), RC drilling returned encouraging intercepts, including 3m @ 3.6g/t Au from 96m (YRLRC1036) and 3m @ 2.3g/t Au from 26m (YRLRC1016) and now indicate a mineralised horizon over 400m long. The Company completed a high-resolution aeromagnetic survey over the area from Sim’s Find to New England Granite to better define these prospects. Data were merged with broader spaced historical data to produce seamless high-resolution coverage, which was used to refine geological models. At Sims Find where mineralisation is interpreted to be associated with demagnetised zones, 3D inversion modelling was completed on the merged data to assist in future drill targeting. The New England Granite prospect comprises a granitic intrusive measuring approximately 4.3km x 2km that is cut by large scale tensional faults subordinate to the nearby Ockerbury Fault. Historic drilling has demonstrated that the deformed margins of the granite in contact with the surrounding greenstone sequence has elevated gold associated with quartz veining. The competency contrast related to granite-greenstone contacts is a common gold mineralisation control in the Yandal belt and elsewhere. Data generated from the aeromagnetic survey has assisted in accurately delineating the deformed granite margins and prospective cross-cutting faults, which in turn is being used in drill targeting. During the second half of the year the Company completed a litho-structural reinterpretation and targeting study using independent consultant, Mike Outhwaite (Lithify Pty Ltd). This work fed into a project-wide prospect ranking exercise completed by the in-house exploration team. As a result, the company has determined that the priority prospects to focus on over the coming six to twelve months will include Oblique, Quarter Moon and New England Granite (Figures 4 and 5). Each of these prospects has large scale potential with strike extents in-excess of 1.5km at Oblique and Quarter Moon and 4km at New England Granite and demonstrated gold mineralisation in previous broad spaced drilling. Yandal Resources Limited Annual Report 2023 Operations Report IRONSTONE WELL-BARWIDGEE continued Figure 4 - Oblique and Quarter Moon targets showing proximity to Flushing Meadows Resource over TMI and 1VD aeromagnetics Figure 5 - New England Granite Prospect showing +4km long eastern margin target zone over TMI and 1VD aeromagnetics 7 Yandal Resources Limited Annual Report 2023 8 Operations Report MT MCCLURE The Mt McClure Project is located 15km SW of the historic Bronzewing gold mine and 10km from Orelia gold mine both owned by Northern Star Resources Ltd (ASX: NST) in the southern Yandal Belt (Figure 6). The greater Mt McClure gold camp, which covers a strike length of some 30km and includes Northern Star’s Orelia mine (+1Moz), has a total gold endowment of +1.8Moz. Yandal’s Mt McClure Project includes several historical open cut pits from which a total of approximately 100,000z of gold was mined to maximum depths of between 60 to 100m mostly in the 1990’s. During the year, the Company completed initial Mineral Resource Estimates (“MRE’s”) on the margins of the Success, Parmelia and Challenger historic open cuts incorporating the extensive historic drilling database and recent Yandal drilling, which highlighted significant zones of unmined mineralisation extending up to 240m beneath the base of previous mining. The MRE’s defined a combined Resource inventory at Mt McClure of 2.225Mt @ 1.9g/t Au for 136,000oz at a 1.0g/t lower cut-off, as summarised in Table 1. Additional RC drilling during the year and subsequent to year’s end outside of the historic open cut footprints has defined additional zones of shallow, predominantly oxide mineralisation. Notably, drilling at HMS Sulphur, located immediately north of the Success historic open cut and MRE area, has defined a zone of mineralisation extending over a 700m strike length and down to a depth of 150m. An initial MRE for HMS Sulphur is expected to be completed early next year. Figure 6 - Plan view of the Mt McClure project showing the regional geology, tenements, location of key prospects Table 1 – Breakdown of Mt McClure initial Mineral Resource Estimate by Deposit (1.0 g/t Au lower cut-off) Category Inferred Deposit Tonnes Grade Au (000’s) (g/t) (Oz) Challenger(1) 718 1.9 44,000 Success(2) 1,255 1.9 75,000 (3) Parmelia 252 2.1 17,000 Total 2,225 1.9 136,000 Note: Due to the effects of rounding totals may not represent the sum of the individual components. The individual MRE’s at each deposit are open at depth and constrained by a lack of drilling, and in some cases indicate plunging shoots which have higher grade potential. Refer to the YRL ASX Announcements of (1) 22 August 2022, (2) 6 September 2022 and (3) 20 September 2022 for details of MREs Yandal Resources Limited Annual Report 2023 9 Operations Report MT MCCLURE continued Figure 7 - Success Long Section showing block model coloured according to grade, historic pit outline (grey) and Yandal broad spaced drilling (blue traces) New RC intercepts during the year include: HMS Sulphur • • Gilmore • • 14m @ 1.3g/t Au from 113m including 2m @ 6.4g/t Au from 119m (YRLRC1076); 8m @ 1.7g/t Au from 148m including 4m @ 3.1g/t Au (YRLRC1077); 21m @ 0.8g/t Au from 90m including 3m @ 2.5g/t Au from 90m (YRLRC1086); 17m @ 0.6g/t Au from 43m including 5m @ 1.4g/t Au from 45m (YRLRC1085) In addition to RC drilling at advanced prospects, a total of eleven early-stage targets were tested by an aircore program focussed on the under-explored hanging wall sequence east of the main line of mineralisation. Targets were generally in areas interpreted as favourable for mineralisation based on proximity to cross-cutting (conjugate) faults and/or areas exhibiting demagnetisation, potentially representing alteration associated with mineralisation. Of the eleven targets tested, three returned significant gold results (>0.1g/t Au) and have been earmarked for follow-up in the coming year. Yandal Resources Limited Annual Report 2023 10 Operations Report GORDONS The 100%-owned Gordons Project is located 35km north of Kalgoorlie. The project covers approximately 112km2 of tenure adjacent to operating mines at Gordon Sirdar and Mulgarrie and is close to both third party and publicly owned haulage infrastructure. Significantly, it is located on the flank of the Scotia-Kanowna Dome, a key regional geological feature, that is an important control on the formation of gold mineralisation, including the multi-million ounce Kanowna Belle and Paddington deposits. During the year the company completed an Initial MRE for Gordons Dam and undertook a comprehensive 3D model of the geology and structure of the broader project to assist in prioritising future work and drill targeting. The Gordons Dam deposit is located on a granted mining lease toward the northern end of the project and represents a new discovery by Yandal. The initial Gordons Dam MRE contains a total of 365,000t @ 1.7g/t Au for 20,000oz (> 1g/t Au lower cut-off grade) as summarised in Table 2. The deposit consists of laterite and paleochannel hosted mineralisation overlying weathered and fresh bedrock hosted mineralisation. Bedrock mineralisation remains open down-plunge and along strike. Recent 3D geological modelling indicates that a felsic intrusion, likely a key mineralisation control, plunges to the to the north-east and represents a potential future drill target. Figure 8 - Regional geology map of Gordons Project showing key prospect locations and nearby mines. Table 2 – March 2023 Gordons Dam Mineral Resource Estimate (1.0g/t Au Lower Grade Cut-off) above 120m vertical depth. Category Inferred Material Type Tonnes Grade (g/t Au) Total (oz) 48,000 1.8 3,000 Transported (paleochannel) 99,000 2.0 6,000 Oxide 152,000 1.5 7,000 Transitional Fresh Total 65,000 365,000 1.5 1.7 3,000 20,000 Note: Due to the effects of rounding, totals may not represent the sum of all individual components. The Resource is reported as a global estimate, not constrained within optimised pit shells. Full details of the MRE are available in YRL’s ASX Release of 6 April 2023. Yandal Resources Limited Annual Report 2023 11 Operations Report GORDONS continued The 3D geological modelling and targeting exercise over the entire Gordons Project was designed to determine the structural and stratigraphic controls on mineralisation. This work highlighted that a key prospective feature in the region is the Gordon-Sirdar Shear Zone (“GSSZ”) and associated splays which extend through the Gordons Project and are coincident with Star of Gordon prospect and the nearby Gordon-Sirdar mine (Figure 9). The GSSZ is associated with a steepening of the eastern margin of the main Scotia-Kanowna Granite Dome. This geometry provides opportunities for enhanced fluid permeability and strain partitioning making it an ideal location for targeting larger-scale gold mineralisation. In association with the GSSZ the study also interpreted a keel of mixed greenstones interpreted to be similar to the Kanowna Belle lithologies extending south of the Gordons Project. Prospects proximal to the GSSZ have the highest potential for large discoveries and will be the focus of exploration moving forward. In response to the findings of the study the Company acquired the rights to a key tenement (E27/701 – currently in the application phase) that covers the interpreted extension of the GSSZ structure extending south from the Gordons Project towards Kanowna Belle (Figure 9). The Company regards this as an excellent opportunity to explore an area in an exceptional geological setting for the discovery of significant gold deposits near the major mining centre of Kalgoorlie. Figure 9 - Schematic views of broad scale three-dimensional modelling showing interpreted boundaries of Scotia-Kanowna Granite from Bouger gravity (left diagram) and rendering of granite morphology (pink) and location of key structures (red) (right diagram). Yandal Resources Limited Annual Report 2023 12 Operations Report MINERAL RESOURCES Yandal Resources Ltd - Mineral Resource Summary Indicated Deposit Tonnes Grade Au (‘000s) (g/t) (oz) Ironstone Well Flushing Meadows1 2,141 1.3 91,000 Mt McClure Challenger2 Success3 Parmelia4 Sub-total - MMC Gordons Gordons Dam5 Grand-total6 2,141 1.3 91,000 Tonnes (‘000) Inferred Grade (g/t) Tonnes (000’s) Total Grade (g/t) 5,245 1.1 177,000 7,386 1.1 268,000 718 1,255 252 2,225 1.9 1.9 2.1 1.9 44,000 75,000 17,000 136,000 718 1,255 252 2,225 1.9 1.9 2.1 1.9 44,000 75,000 17,000 136,000 365 7,835 1.7 1.3 20,000 333,000 365 9,976 1.7 1.3 20,000 424,000 Au (oz) Au (Oz) Due to the effects of rounding totals may not represent the sum of the individual components. 1. Reported above 0.5g/t Au lower cut-off grade, refer to Yandal Resources Ltd ASX announcement dated 4 November 2020 for full details. 2. Reported above 1.0g/t Au lower cut-off grade, refer to Yandal Resources Ltd ASX announcement dated 22 August 2022 for full details 3. Reported above 1.0g/t Au lower cutoff grade, refer to Yandal Resources Ltd ASX announcement dated 6 September 2022 for full details.4. Reported above 1.0g/t Au lower cut-off grade, refer to Yandal Resources Ltd ASX announcement dated 20 September 2022 for full details 5. Reported above 1.0g/t Au lower cut-off grade, refer to Yandal Resources Ltd ASX announcement dated 6 April 2023 for full details 6. All Resources are reported as global estimates, not constrained by optimised pit shells. COMPETENT PERSONS STATEMENT The information in this document that relates to Exploration Results, geology and data compilation is based on information reviewed or compiled by Mr Chris Oorschot, a Competent Person who is a Member of The Australasian Institute Geoscientists. Mr Oorschot is the Exploration Manager for the Company, is a full-time employee and holds options in the Company. Mr Oorschot has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Oorschot consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to the Flushing Meadows, Mt McClure and Gordons Dam Mineral Resource Estimates is based on information compiled and generated by Andrew Bewsher, an employee of BM Geological Services Pty Ltd (“BMGS”). Both Andrew Bewsher and BMGS hold shares in the company. BMGS consents to the inclusion, form and context of the relevant information herein as derived from the original resource reports. Mr Bewsher has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. YRL confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. FORWARD LOOKING STATEMENTS This document may contain certain forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Yandal Resources Limited’s (Yandal’s) current expectations, estimates and projections about the industry in which Yandal operates, and beliefs and assumptions regarding Yandal’s future performance. When used in this document, words such as “anticipate”, “could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although Yandal believes that its expectations reflected in these forward-looking statements are reasonable, such statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Yandal and no assurance can be given that actual results will be consistent with these forward-looking statements. Drilling results presented indicate geological potential for mineralisation but there can be no certainty that these results will eventually form part of a Mineral Resource Estimate. Yandal Resources Limited Annual Report 2023 13 Directors’ Report Your Directors present their report on Yandal Resources Limited for the financial year ended 30 June 2023. DIRECTORS The following persons held office as Directors of Yandal Resources Limited during the financial period and up to the date of this report unless otherwise noted: Mr Tim Kennedy Mr Greg Evans Ms Katina Law Managing Director Non-Executive Chairman Non-Executive Director INFORMATION ON DIRECTORS AND OFFICERS TIMOTHY KENNEDY B.App Sc (Geology), MBA, MAusIMM, MGSA MANAGING DIRECTOR (appointed 17 February 2021, appointed Chair 1 July 2021, resigned as Chair 4 April 2022, appointed Managing Director 4 April 2022) Mr Kennedy is a geologist with a successful 30+ year career in the mining industry, including extensive involvement in the exploration, feasibility and development of gold, nickel, platinum group elements, base metals and uranium projects throughout Australia. His most recent executive role was as exploration manager with IGO Limited, which during his 11 years IGO grew from being a junior explorer to a multi-commodity mining company. Mr Kennedy played a key role as part of the team that represented IGO on the exploration steering committee with AngloGold Ashanti during the multi-million ounce Tropicana, Havana and Boston Shaker discoveries and the discoveries by IGO of the Rosie magmatic nickel sulphide deposit; the Triumph VMS deposit and the Bibra orogenic gold deposit. Prior to that Mr Kennedy held seni