DevEx Resources : Annual Report 2021

DEV.AX

CONTENTS

Corporate Directory ..........................................................................................................................................................

1

From the Chairman + Managing Director........................................................................................................................

2

Mission Statement ............................................................................................................................................................

4

ESG Elements ...................................................................................................................................................................

5

Highlights 2020-2021 ........................................................................................................................................................

6

Forward Plan 2021+ ..........................................................................................................................................................

7

Sovereign Project .............................................................................................................................................................

8

Junee and Basin Creek Projects ...................................................................................................................................

11

Cobar Projects ................................................................................................................................................................

16

Nabarlek Project..............................................................................................................................................................

18

Other Projects .................................................................................................................................................................

20

Investments + Financial Review ....................................................................................................................................

21

Competent Person Statement........................................................................................................................................

22

Tenement Schedule ........................................................................................................................................................

23

Directors' Report.............................................................................................................................................................

25

Auditor's Independence Declaration.............................................................................................................................

34

Consolidated Statement of Comprehensive Income ...................................................................................................

35

Consolidated Statement of Financial Position .............................................................................................................

36

Consolidated Statement of Changes in Equity ............................................................................................................

37

Consolidated Statement of Cash Flows........................................................................................................................

38

Notes to the Consolidated Financial Statements.........................................................................................................

39

Directors' Declaration.....................................................................................................................................................

58

Independent Auditor's Report .......................................................................................................................................

59

ASX Additional Information ...........................................................................................................................................

63

2021 ANNUAL REPORT DEVEX RESOURCES LIMITED

CORPORATE DIRECTORY

Directors

Tim R B Goyder

Chairman

Brendan J Bradley

Managing Director

Bryn L Jones

Non-executive Director

Richard K Hacker

Non-executive Director

Company Secretary

Kym Verheyen

Principal Place of Business & Registered Office

Level 3, 1292 Hay Street

WEST PERTH Western Australia 6005

Tel:

(+61 8) 6186 9490

Fax:

(+61 8) 6186 9495

Web:

www.devexresources.com.au

Email:

[email protected]

Auditors

HLB Mann Judd

Level 4

130 Stirling Street

PERTH Western Australia 6000

Share Registry

Computershare Investor Services Pty Limited

Level 11

172 St Georges Terrace

PERTH Western Australia 6000

Tel: 1300 850 505

Home Exchange

Australian Securities Exchange Ltd

Level 40

152-158 St Georges Terrace

PERTH Western Australia 6000

ABN

74 009 799 553

ASX

Share Code: DEV

DEVEX RESOURCES LIMITED 2021 ANNUAL REPORT | PAGE 1

FROM THE CHAIRMAN + MANAGING DIRECTOR

Tim Goyder

Brendan Bradley

CHAIRMAN

MANAGING DIRECTOR

Dear Fellow Shareholder,

We are pleased to present DevEx's 2021 Annual Report and to reflect on what has been an exceptionally busy and productive year for the Company against the backdrop of continued buoyant conditions in the junior exploration sector.

Building on an aggressive project procurement strategy in recent years, targeting several of Australia well-endowed mineral provinces, DevEx can now maintain its accelerated exploration momentum across its projects in WA, NSW and the NT - with drilling planned to continue across all regions in the coming 12 months moving the Company closer to what we hope will be a breakthrough discovery.

As we all know, discovery success stems from a combination of having quality ground, applying the best possible science and, most importantly, having strong backing, access to sufficient funding and a willingness to be persistent.

DevEx has all of these attributes and qualities in abundance and - with exploration programs gathering momentum across world-class mineral provinces in three States and Territories - the Company has put itself in the best possible position to achieve success in FY2022.

Firstly, in the Julimar Region of Western Australia, we are excited by the progress being made at our Sovereign Project, which comprises a combination of 100 percent held tenure and our farm-in agreement with Australian Silica Quartz Group. This highly strategic ground package lies ~35km north of Chalice Mining's world-class Gonneville Ni- Cu-PGE discovery and just south of Caspin Resources' Yarawindah Brook Ni-Cu-PGE project.

This year, our reconnaissance air-core drilling confirmed the presence of a large differentiated mafic-ultramafic intrusion extending over a strike length of 12km at Sovereign comprising intrusive rocks similar to the upper portion of the Julimar mafic-ultramafic intrusion, as seen on the western edge of the Gonneville intrusion that hosts Chalice Mining's potentially world-classNi-Cu-PGE deposit to the south.

In summary, we believe the Sovereign Project hosts a prospective intrusion of significant scale, with the right rocks of the right age and excellent potential to yield a significant Ni-Cu-PGE discovery. We are looking forward to the next phase of exploration, which will comprise a combination of ground-based EM, as well as deeper RC and diamond drilling to test this theory. This work will commence in September and gather momentum towards the end of the year.

In NSW, we enjoyed a very active year on several fronts within the sizeable exploration portfolio we have secured in the Lachlan Fold Belt - currently one of Australia's most active exploration provinces.

At the 100%-owned Junee Project, we completed wide- spaced reconnaissance air-core drilling at the Nangus Road Prospect, with drilling intersecting coincident copper-gold bedrock mineralisation up to 3.5g/t Au, and 1,700ppm Cu (over 1 metres intervals) defining a prospective porphyry Cu-Au target over 2km in length. With multiple IP chargeability anomalies beneath this bedrock Cu-Au mineralisation we believe results have markedly upgraded prospectivity of the Project - highlighting the potential to discover a large Cadia-Ridgeway style porphyry copper- gold system. We are very excited to see the next ramp in intensive exploration drilling in the months ahead.

We further expanded our Lachlan Fold Belt portfolio in NSW during the year via the new North Cobar Project and a farm- in agreement with Thomson Resources on the prospective Wilga Downs gold-base metal project in the Cobar Region.

In last year's Annual Report, we highlighted the growing opportunity presented by our commanding ground position at the West Arnhem-Nabarlek Project in the Alligator Rivers Uranium Province (ARUP) in the Northern Territory as a result of improving sentiment in the uranium sector.

This is Australia's highest-grade uranium province, with an endowment of 500 million pounds of U3O8 (mined and current resources) throughout the region. DevEx's tenure centred on the historical Nabarlek Uranium Mine, which

PAGE 2 | 2021 ANNUAL REPORT DEVEX RESOURCES LIMITED

produced 24 million pounds at a remarkable grade of 1.84% U3O8 during the early 1980's.

During the year, the Company initiated a project-wide review of our +4,700km2 of strategically located tenure in the ARUP, with a multi-pronged focus that includes near- mine opportunities (extensions of the high-grade Nabarlek mineralisation) and numerous historical prospects across the regional tenure. Surface mapping and geochemistry commenced around the middle of the year and is ongoing.

Given the scale of our portfolio and the multi-pronged nature of our exploration activities, we completed two important and strongly-supported capital raisings during the year to strengthen our balance and ensure that the Company is well-placed both to fund its ongoing activities and, in the event of discovery success at any of our projects, quickly escalate drilling.

In conclusion, we would like to extend our sincere thanks to outstanding and hard-working exploration team at DevEx. It is thanks to their focus and hard work that the Company has been able to prosecute an extensive exploration effort across our key projects, notwithstanding the impacts and challenges presented by the COVID-19 pandemic - which has continued to interrupt travel, close borders and prevent the free movement of people and equipment throughout the year.

Most importantly, we have once again been able to keep our people safe at all times.

We would also like to warmly thank our shareholders for their continued support, and to welcome the new investors who joined our register through the two share placements completed during the year. Your support and confidence in our projects, our people and our strategic vision for DevEx is greatly appreciated.

Our objective is to make a major discovery that will materially change the value of the Company and deliver outstanding returns to our shareholders. We believe we are well placed to deliver on that goal, and we are looking forward to another exciting year in 2022.

Yours faithfully,

Tim Goyder

Chairman

Brendan Bradley

Managing Director

DEVEX RESOURCES LIMITED 2021 ANNUAL REPORT | PAGE 3

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DevEx Resources Limited published this content on 27 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2021 02:11:05 UTC.