Alien Metals : 2022 Annual Report for the period ending Dec 31, 2022

Registered number: FC027089

ALIEN METALS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 DECEMBER 2022

ALIEN METALS LIMITED

CONTENTS

	Page
Company Information	2
Chairman's Report	3
Directors' Report	5
Statement of Directors' Responsibilities	13
Corporate Governance Report	14
Independent Auditor's Report	21
Consolidated Statement of Comprehensive Income	26
Consolidated Statement of Financial Position	27
Consolidated Statement of Changes in Equity	28
Consolidated Statement of Cash flows	29
Notes to the Financial Statements	30

ALIEN METALS LIMITED

COMPANY INFORMATION

Directors	Guy Robertson (Executive Chairman) - appointed 26 April 2023
	Daniel Smith (Non-Executive Director)
	Roderick McIllree (Executive Director) - appointed 7 September 2022
	Mark Culbert (Non-Executive Director)
	Jonathan Battershill (Non-Executive Director) - resigned 26 April 2023
	Bill Brodie Good (Executive Director) - resigned 28 July 2022
Registered Office	Craigmuir Chambers
	PO Box 71
	Road Town
	Tortola
	British Virgin Islands
	VG1110
Company Number	UK FC027089
	BVI 1029783
Bankers	HSBC Bank plc
	70 Pall Mall
	London
	SW1Y 5EZ
Nominated Adviser	Beaumont Cornish Ltd
	Building 3
	566 Chiswick High Road
	London
	W4 5YA
Independent Auditor	PKF Littlejohn LLP
	Registered Auditor
	15 Westferry Circus
	Canary Wharf
	London
	E14 4HD

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ALIEN METALS LTD

CHAIRMAN'S REPORT

Dear Shareholders,

I am pleased to present the Chairman's statement for Alien Metals Ltd (the 'Company' or 'Alien Metals') for the year ended 31 December 2022. This year has been a pivotal one for the Company, marked by significant progress in our exploration and development projects, and strategic acquisitions that have strengthened our portfolio.

Operational Highlights

During the year, we made significant progress in our exploration and development projects in Australia. Our flagship project, the Hancock Iron Ore Project in Western Australia, has continued to demonstrate strong potential for high-grade direct ship iron ore, and we remain well-positioned to capitalise on the growing demand for iron ore in China.

Acquisitions

We have been active in pursuing strategic acquisitions that complement our existing portfolio and strengthen our long-term growth prospects.

In March 2022 the Company completed the acquisition of a 100% interest in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia containing palladium and Platinum Group Elements ('PGE') plus significant quantities of other strategic metals including rhodium, nickel and copper.

In June 2022, we completed the acquisition of the Elizabeth Hill Silver Project in Western Australia, which has a historical production record of over 2.7 million ounces of silver and the Vivash Gorge Iron Ore Project. These acquisitions expand our footprint in Western Australia and provides us with new high-grade silver and base metal projects.

In December 2022, we completed the acquisition of the potential high-grade iron ore project, Brockman West, in Western Australia. This project is located in the heart of the Pilbara region, one of the world's premier iron ore producing regions, and has the potential to deliver significant value for our shareholders.

Project updates

Hancock Iron Ore Project: Alien Metals continued to progress its Hancock Iron Ore Project in Western Australia, which covers a large area prospective for iron ore. The Company conducted exploration activities, including drilling, detailed mapping, sampling, and geophysical surveys. Initial findings have led to a maiden mineral reserve and mining inventory along with improving the overall resource potential of continued high-grade iron ore ridges. The Company plans further drilling to identify additional resources throughout the licence area. The Company is continuing work on multiple fronts towards putting the Hancock Project into production and to this end there is a key Native Title meeting scheduled in July following which the Company will have a clearer idea on the timing for production commencing. Furthermore, work continues to define an updated MRE on the Sirius Extension and this is now expected to be published in Q3 this year.

Elizabeth Hill Silver Project: Alien Metals continued its exploration efforts at the Elizabeth Hill Silver Project in Western Australia. The Company carried out detailed geological and structural studies, coupled with geophysical surveys, to delineate high-priority drill targets. These targets were subsequently drilled with excellent results confirming the presence of broader high grade silver mineralisation around the old mine. Further drilling programmes are planned to expand the resource base and assess the project's overall potential. In addition, the Company completed the installation of equipment on site to facilitate re-entry to the old mine workings, such as headframes, winders and an overall refurbishment of the shaft entrance and local mining licence.

Munni Munni: Alien Metals continued to compile and assimilate all historical data for the Munni Munni intrusion. The project area contains a historic JORC 2004 compliant resource of 24 million tonnes @ 2.9 grams per tonne ('g/t') PGM and gold for 1.14 million ounces ('moz') palladium ('Pd'), 0.83 moz Pt ('platinum'), 152 thousand ounces ('koz') Au ('gold') and 76 koz Rh ('rhodium'). The Company completed its long term strategy of consolidating the entire northern Munni Munni licences into a single coherent tenement, under 100% ownership. Potential exists for a much larger, high value, multi-commodity resource, many of which appear on critical mineral lists. Munni Munni represents one of the largest undeveloped primary PGM Resources in Australia.

Donovan 2 Copper-GoldProject: Alien Metals continued exploration activities at Donovan 2 during the year, including exploratory drilling. This programme yielded encouraging, anomalous, copper and gold results and improved Alien Metals' understanding of the projects prospectively. However, substandard core recovery over key intervals has led to the evaluation of strategic alternatives for this project, including continued exploration, or divestment.

Financial Results

As an exploration and development Group which has no revenue, Alien reported a loss for the twelve months ended 31 December 2022 of $2,375,000 (31 December 2021: loss of $2,258,000).

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ALIEN METALS LTD

CHAIRMAN'S REPORT

Outlook

Looking ahead, we remain focused on delivering long-term value for our shareholders by continuing to advance our exploration and development projects. The acquisitions we have made during the year strengthen our portfolio and provide us with additional growth opportunities.

We will continue to prioritise safety, sustainability, and good governance in all our operations, as we work to create value for all our stakeholders.

Conclusion

In conclusion, I would like to thank our employees, contractors, and shareholders for their continued support during the year. We are pleased with the progress we have made, and we look forward to updating you on our achievements in the coming year.

Yours sincerely,

Guy Robertson

Executive Chairman

30 June 2023

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