Geopacific Resources: Annual Financial Statements – December 31, 2021

LIMITED GEOPACIFIC RESOURCES

ABN 57 003 208 393 and controlled entities

ASX Code: GPR

financial state

for the year ended December 31, 2021

CONTENTS

Corporate directory

2

Transaction Review

3

Ore reserves and mineral resources

12

Directors’ report

14

Remuneration report

23

Statement of Auditor Independence

42

The independent auditor’s report

43

Declaration of the directors

50

Consolidated statement of net income and other comprehensive income

51

Consolidated statement of financial position

53

Consolidated statement of changes in equity

54

Consolidated statement of cash flows

55

Notes to the financial statements

56

Information to shareholders

108

1 | Page

COMPANY DIRECTORY

Limited geopacific resources

Publicly listed company (ASX code: GPR) incorporated in New South Wales in 1986

Australian company Number (ABN)

Non-executive chairman Non-executive director Non-executive director Non-executive director

Chief Financial Officer & General Secretary

REVIEW OF OPERATIONS

REVIEW OF OPERATIONS

The Woodlark Gold Project (the Project) is a potentially high-margin gold deposit located on Woodlark Island in Papua New Guinea (PNG).

During the 2021 reporting period, project activities focused on infrastructure development and the ongoing community resettlement program. Major long-lead items such as the SAG and ball mills have been ordered and engineering and design work, mainly for the processing facilities, has progressed.

In November 2021, the Company announced that earthmoving activities associated with the development of the project had been delayed due to a combination of adverse weather, deteriorating ground conditions and the impact of COVID-19 limiting availability of site access and overall worker productivity rates. Additionally, it was decided to re-evaluate the original wharf design and evaluate a potential upgrade to the existing wharf facility to reduce construction costs and complexity while providing greater opportunities for participation. of the local community to the project. There were also delays in issuing the tender for the construction of the offshore tailings line and the local community resettlement scheme. Due to the impact of the delays, the Company has made the decision to postpone all non-essential Project activities.

As part of the postponement of non-essential work, the Company has initiated a critical path analysis to minimize the impact of delays on the overall project schedule as well as the initiation of a schedule review and cost estimate for determine the impact on the development budget. .

On December 15, 2021, the Company requested a voluntary suspension of trading in its ordinary shares listed on the ASX. This request came after the preliminary results of the review initiated in November 2021 indicated that there would likely be a significant increase in the capital cost for the development of the project. The Company continued the detailed work program to define and quantify the scale of the increase which continued into the 2022 financial year.

After the end of the financial year, it was determined from the continuous examination that changes were necessary to preserve the financial and patrimonial situation of the Company. In view of the continued delays in the project schedule and the resulting implications for escalating capital costs, a series of measures have been taken, including the suspension of all detailed engineering and civil works on the project. pending the conclusion of the company’s strategic options review and the initiation of a layoff program across the organization.

While project development was put on hold at the start of fiscal 2022, Geopacific remains committed to engaging with local Woodlark Island communities and activities associated with the community relocation program continue. Geopacific also continues to support other community-like programs on the island, including educational facilities and healthcare services.

Geopacific remains focused on realizing the full potential of the project and has commenced a drilling program aimed at extending the pit and extension targets across Woodlark Island.

REVIEW OF OPERATIONS

Exploration

During the year, the Company began a grade control and drilling campaign near the 20,000m pit, which represents the first RC drilling activity conducted on Woodlark Island since 2018. drilling contractor, Quest Exploration Drilling (QED), was mobilized to the site in September 2021 and to date. drilled about 80 holes. The drilling campaign was undertaken to better define and justify the upside optionality that resides in the existing pit shells (via grade control drilling) and in the broader mining and exploration leases on Woodlark Island.

Since the start of the program, the Company has received assays from 34 grade control holes with a substantial number reporting significant high-grade intersections (all within 60 meters of surface), confirming our view that there is considerable upside potential in existing pit shells. . Kulumadau’s key analytical findings include:

  • 080KUL146 with 58 meters at 4.67g/t Au (271 grams meters), surface;

  • 080KUL160 with 39 meters at 5.33g/t Au (208 grams meters), from 21 meters;

  • 080KUL145 with 37 meters at 5.59g/t Au (207 grams meters) from 8 meters;

  • 080KUL175 with 26 meters at 7.38g/t Au (192 grams meters) from 34 meters and 9 meters at 20.2g/t Au (182 grams meters), from 20 meters; and

  • 080KUL167 with 9 meters at 15.5g/t Au (140 grams meters), from the surface.

A larger drill rig was mobilized to the site in January 2022 to facilitate the drilling of deeper holes to test the immersion and extension targets associated with the current pits.

Results from resource extension drilling to date at Kulumadau and Busai reinforce the potential for pit extension opportunities, with the project’s three planned pits open laterally and at depth. To date, a total of 12 resource extension holes have been assayed at Busai and Kulumadau with very encouraging results, all within 100 meters of surface. Key results from the resource drilling campaign include:

Busai:

  • BSRC21140 with 14 meters at 5.01g/t Aufrom 73 meters;

  • BSRC21141 with 8 meters at 2.14g/t Au, from 19 meters; and

  • BSRC21136 with 11 meters at 1.99g/t Aufrom 16 meters.

Kulumadau:

  • KURC21027 with 17 meters at 0.97g/t Au, from 22 meters; and

  • KURC21024 with 12 meters at 0.76g/t Aufrom 65 meters.

A further 25 grade control holes and 5 resource extension holes from the Kulumadau deposit have been completed with laboratory samples awaiting analysis1.

Exploration drilling to the north and east of the current Kulumadau resource began in February 2022 and is ongoing. There are 14 holes of this program awaiting analysis1.

1 As of March 17, 2022

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