Catalyst Metals : Half year accounts (3.09 Mb)

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

ABN 54 118 912 495

INTERIM REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2019

CONTENTS

PAGE

CORPORATE DIRECTORY	3
DIRECTORS' REPORT	4
AUDITOR'S INDEPENDENCE DECLARATION	12
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	13
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME	14
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	15
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	16
NOTES TO THE FINANCIAL STATEMENTS	17
DIRECTORS' DECLARATION	20
INDEPENDENT AUDITOR'S REVIEW REPORT	21

CORPORATE DIRECTORY

DIRECTORS

Stephen Boston (Chairman)

Bruce Kay (Non-Executive Director)

Robin Scrimgeour (Non-Executive Director)

Gary Schwab (Non-Executive Director)

COMPANY SECRETARY

Frank Campagna

REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS

44 Kings Park Road

West Perth, Western Australia 6005

Telephone: [phone]

Facsimile: [phone]

Email: [e-mail]

Website: www.catalystmetals.com.au

AUDITORS

RSM Australia Partners

2 The Esplanade

Perth WA 6000

SHARE REGISTRY

Automic Pty Ltd

Level 2

267 St Georges Terrace

Perth, Western Australia 6000

Telephone: [phone] (with in Australia) [phone] (International)

Website: www.automicgroup.com.au

STOCK EXCHANGE LISTING

The Company is listed on the Australian Securities

Exchange
Home Exchange:	Perth
ASX Code:	CYL & CYLOA

Page 3

DIRECTORS' REPORT

___________________________________________________________________________

The Directors present their report on Catalyst Metals Limited and its subsidiaries for the half-year ended

31 December 2019.

BOARD OF DIRECTORS DIRECTORS

The names and details of Catalyst Metals Limited ("Company") directors in office during the half-year and up to the date of this report are as follows:

Stephen Boston Bruce Kay Robin Scrimgeour Gary Schwab

Directors were in office for the entire period unless otherwise stated.

REVIEW OF OPERATIONS

WHITELAW GOLD BELT

The Whitelaw Fault Corridor is the structural zone thought to control the emplacement of the Bendigo gold deposits and to extend in a generally northerly direction in favourable Ordovician rocks beneath the covering veneer of younger Murray Basin sediments. It has been shown to extend from the Bendigo area as far north as the Murray River. The objective of Catalyst is to use modern geophysical and drilling techniques to discover high grade gold deposits that can be mined by open cut or underground methods. Gold discoveries at the Four Eagles and Tandarra Gold Projects have confirmed the high prospectivity of the Whitelaw Belt (Figure 1). In addition to covering much of the Whitelaw Belt, exporation licences (EL's) in which Catalyst holds an interest cover parallel structural zones associated with gold mining areas to east and west of Bendigo, including those extending from the Fosterville gold mine (Figure 1). In total the EL's shown cover more than 2,100 square kilometres.

There was little field activity during the July-December 2019 half year, with much of the Company's project area under grain crop. Activity during this off-season is focussed on compilation and interpretation of the substantial body of data accumulated in the previous half year and planning for the upcoming field season. After harvest, drilling resumed late in the period.

As documented in periodic reports to the ASX, drilling conducted mostly in the first half of the year evaluated the continuity of known gold mineralisation, identified extensions of known deposits and provided indications of new discoveries, further confirming the extent and economic potential of gold within this structural zone.

Adjacent to the Whitelaw Belt, exploration commenced on new EL's to the east and west.

FOUR EAGLES JOINT VENTURE (RL006422, EL5295, EL5508, and EL6859 CATALYST 50%)

The Four Eagles Gold Project is a joint venture between Catalyst, and Gold Exploration Victoria Pty Ltd (GEV) (a wholly owned subsidiary of Hancock Prospecting Pty Ltd). Catalyst and GEV jointly fund continuing exploration expenditure. The project is managed by Catalyst within the Four Eagles Joint Venture.

The Four Eagles Joint Venture covers at its core an envelope of gold mineralisation about 6 kilometres long and 2.5 kilometres wide, including three distinct, parallel gold mineralised zones named Boyd's Dam - Boyd North, Hayanmi and Pickles, and the emerging Cunneens prospect (Figure 2).

During the half year Catalyst and GEV agreed terms for GEV to earn a 50% interest in additional Catalyst tenements, expanding the JV to include EL's 5521and 006894 Macorna Bore and EL006670 Boort (Figure 1).

Page 4

DIRECTORS' REPORT

___________________________________________________________________________

Figure 1: Whitelaw & Adjacent Gold Belt Tenement Holdings, Project Locations and

Gold-Mineralised Prospect Locations

Page 5

DIRECTORS' REPORT

___________________________________________________________________________

Figure 2: Four Eagles Gold Project showing locations of 2019 drilling, gold mineralised zones, trends

and targets with gold intersections recorded at Cunneens

Page 6

DIRECTORS' REPORT

___________________________________________________________________________

Boyd's Dam and Boyd North Prospects

Appraisal of The Boyd's Dam and Boyd North zones indicated gently southerly-plunging extensions of both mineralised centres (Figure 3). The Boyd's Dam extension included the intersection in diamond drill hole FEDD031 of 11.0m @ 37.2g/t Au (including 1.0m @ 247g/t Au and 1.0m @ 150.5g/t), from 145m depth.

Figure 3: Longitudinal Projection Boyd's Dam-Boyd North Gold Zone showing 2018 and 2019 intersections

Scoping of economic considerations included the continuation of geotechnical, hydro-geological and environmental studies and engagement with community and Indigenous stakeholders.

After crops were harvested, the resumption of drilling focussed on Boyd's Dam and Boyd North gold zones.

Hayanmi and Pickles Prospects

Reverse circulation and diamond drilling completed earlier in the year revealed after detailed logging, increased geological complexity in the occurrence of the Pickles gold mineralisation, resolving three parallel lines of mineralisation and the southerly extension by 200 metres of the easternmost (Figure 2).

Cuneens Prospect

Air core drilling completed earlier in 2019 revealed that mineralisation is likely concentrated along two separate lines and has now been encountered on each of 5 drill traverses over a strike length which exceeds 3 kilometres (Figure 2).

TANDARRA JOINT VENTURE GOLD PROJECT (RL006660) (CATALYST 51%)

The Tandarra project is located approximately 40 kilometres north of Bendigo along the Whitelaw structural corridor (Figure 1). Catalyst holds a 51% interest in the Tandarra Gold Project with the remaining 49% held by Navarre Minerals Limited.

Compilation of the results of diamond and reverse circulation (RC) drilling programs completed in the first half of 2019 enabled the interpretation of multiple parallel lodes, the shallowest situated 30-50 metres below the main Tomorrow Zone mineralisation (Figures 4 and 5). Key intersections from the diamond drilling include 3.0m @ 8.6g/t Au from 118m in DDT023 and from the RC drilling, 8.0m @ 3.6g/t Au from 149m in RCT249. A deeper intersection in DDT020, 0.4m @ 238g/t Au from 180m depth may indicate an additional zone.

Page 7

DIRECTORS' REPORT

___________________________________________________________________________

Figure 4: Longitudinal Projection Tomorrow Zone gold mineralisation

showing recent diamond drill holes and intersections in parallel zone (highlighted in blue)

The resumption of exploration drilling late in the half year has seen the completion of an initial program of air core drilling (27 holes, 3,235 metres) covering the southerly extension of the gold-mineralisedTomorrow-Macnaughtan corridor beyond the limit of previous drilling. With assay results pending, initial encouragement is reported in the form of quartz veining and sulphide alteration (Figure 5).

MACORNA BORE PROJECT (EL5508, EL5521, and EL006894 CATALYST 50%)

EL5508 at the northern end of the Whitelaw Belt tenements (Figure 1) was included in the original Four Eagles Joint Venture agreement with GEV. The adjacent EL's 5521 and 006894 were incorporated into the GEV Joint Venture by agreement during the half-year just completed.

BOORT PROJECT (EL006670 CATALYST 50%)

The original Four Eagles Joint Venture between Catalyst and GEV included a designated "Area of Influence" within which possible future co-operation was envisaged. Boort EL006670 situated to the west of the Whitelaw Belt, covering the Sebastian, Muckleford and other fault zones related to outcropping gold-bearing areas to the south (Figure 1) lies within the Area of Influence. Terms have been agreed between Catalyst and GEV during the half year for the formation of a separate joint venture at Boort.

SEBASTIAN PROJECT (EL5533), RAYDARRA EAST (EL5509)(CATALYST 100%), and RAYDARRA (EL5266 CATALYST EARNING 51%)

Three EL's at the south end of the Whitelaw Gold Belt were subject to small programs of reconnaissance air core drilling late in the previous half-year. Results received during the half year revealed at Sebastian, extended arsenic anomalism and occasional trace gold values, with a best value of 2.2g/t Au. Traverses on the Raydarra and Raydarra East ELs were unsuccessful.

DRUMMARTIN (EL006507 CATALYST 100% COMMENCING JOINT VENTURE)

Drummartin EL006507 is situated to the east of the Whitelaw Belt and covering parts of the Redesdale, Fosterville and Drummartin Faults extending northwards from the vicinity of Fosterville gold mine (Figure 1). Processing of the results of a gravity survey completed during the first half of 2019, led to the identification of multiple targets for reconnaissance drilling during 2019-20. During the half-year, Catalyst has entered into an Earn-in and Joint Venture Agreement with St Barbara Ltd. Under the Agreement, St Barbara can earn a 50% interest in the Drummartin Project by the expenditure of $3.5 million, and must spend $1.0 million before being entitled to withdraw from the Project.

Page 8

DIRECTORS' REPORT

___________________________________________________________________________

Figure 5: Tandarra Gold Project showing known mineralised structures (in red)

and geochemically anomalous gold (pink) and arsenic (purple) trends.

2019 Air core drilling is located along the southern extension of the Tomorrow-Macnaughtan

mineralisation corridor around and beyond the southern map boundary

Page 9

DIRECTORS' REPORT

___________________________________________________________________________

GOLDEN CAMEL (EL5449 AND EL5490 CATALYST EARNING 50.1% INTEREST)

A program of reverse circulation drilling (20 holes, 1,770 metres) to follow up mineralisation identified in 2018, and to provide an initial test in vicinity of previously mined locations (Golden Camel and Toolleen)

was completed late in the year. Results are incomplete and yet to be reviewed.

CORPORATE

The annual general meeting of the Company was held on 13 November 2019 and all resolutions were carried unanimously on a show of hands.

RESULTS OF OPERATIONS

The operating loss after income tax of the Group for the half-year ended 31 December 2019 was $1,138,846 (2018: $951,946).

The Company's basic loss per share for the period was 1.43 cents (2018: loss of 1.36 cents per share).

No dividend has been paid during or is recommended for the financial period ended 31 December 2019.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 immediately follows the Directors' Report.

This report has been made in accordance with a resolution of the Board of Directors.

Stephen Boston

Chairman

Dated: 13 March 2020

Page 10

JORC Reporting of Historic Navarre Exploration Results

Although Catalyst was not involved in previous exploration at the Tandarra Gold Project, it has elected to update the information to comply with the JORC 2012 Code. The results had been publicly reported by Leviathan Resources Pty Ltd (ASX code LVR) (December 2004 to January 2007), Perseverance Corporation Limited (ASX code PSV) (January 2008 to March 2011) and Navarre Minerals Limited (ASX code NML) (March 2011 to September 2014) in numerous announcements during the stated periods under the JORC 2004 Code. Catalyst has limited knowledge on how the data was collected but has had to make assumptions based on the available historic data generated by these companies.

Full location data on the Tandarra drill holes and a Summary of Sampling Techniques and Reporting of Exploration Results according to the JORC Code 2012 Edition were included in the Company's ASX announcements dated 1 September 2014 and 29 July 2015.

Competent person's statement

The information in this report that relates to exploration results is based on information compiled by Mr Bruce Kay, a Competent Person, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Kay is a non-executive director of the Company and 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 (the JORC Code). Mr Kay consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Much of the historical information relating to the Four Eagles project was prepared and first disclosed under the JORC Code 2004. This information has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was reported.

Information relating to the Tandarra project was first disclosed by previous tenement holders under the JORC Code 2004. This information has been subsequently reported by the Company in accordance with the JORC Code 2012, refer to announcements dated 1 September 2014, the quarterly activities report dated 31 July 2014, and for other Tandarra drilling on 29 July 2015.

Page 11

RSM Australia Partners

Level 32, Exchange Tower

2 The Esplanade Perth WA 6000

GPO Box R1253 Perth WA 6844

T [phone]

F [phone]

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Catalyst Metals Limited for the half-year ended 31 December 2019, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

1. The auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. Any applicable code of professional conduct in relation to the review.

David Wall

Partner

RSM Australia Partners

Perth, WA

Dated: 13 March 2020

THE POWER OF BEING UNDERSTOOD

AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2019

		31 December	30 June
		2019	2019
	Note	$	$
Current Assets
Cash and cash equivalents	5	21,670,040	15,897,453
Trade and other receivables		110,263	132,672
Total Current Assets		21,780,303	16,030,125
Non-Current Assets
Property, plant and equipment		94,191	7,942
Exploration and evaluation expenditure		2,614,681	1,956,481
Total Non-Current Assets		2,708,872	1,964,423
TOTAL ASSETS		24,489,175	17,994,548
Current Liabilities
Trade and other payables		750,725	1,414,495
Provision for employee entitlements		10,073	-
Other - advances	6	452,917	196,981
Total Current Liabilities		1,213,715	1,611,476
TOTAL LIABILITIES		1,213,715	1,611,476
NET ASSETS
	23,275,460	16,383,072
Equity
Contributed equity	7	41,332,464	33,301,230
Share based payments reserves		372,972	372,972
Accumulated losses		(18,429,976)	(17,291,130)
TOTAL EQUITY		23,275,460	16,383,072

The accompanying notes form part of this financial report

Page 13

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

For the Half-Year Ended 31 December 2019

	31 December	31 December
	2019	2018
	$	$
Other Income	357,297	60,677
Expenses
Professional fees	(243,888)	(140,500)
Administration costs	(60,573)	(82,035)
Occupancy costs	(6,385)	(7,260)
Personnel	(289,542)	(203,441)
Corporate costs	(267,096)	(157,877)
Exploration and evaluation expenditure written off	(628,659)	(421,510)
Loss before income tax expense	(1,138,846)	(951,946)
Income tax expense	-	-
Loss for the half year	(1,138,846)	(951,946)
Other comprehensive income	-	-
Total comprehensive loss for the half year	(1,138,846)	(951,946)
Total comprehensive loss attributable to
members of the company	(1,138,846)	(951,946)
Basic loss per share (cents per share)	1.43	1.36
Diluted loss per share (cents per share)	1.43	1.36

The accompanying notes form part of this financial report.

Page 14

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Half-Year Ended 31 December 2019

Balance at 1 July 2018

Total comprehensive loss for the period

Transactions with owners in their capacity as owners:

Issue of shares

Balance at 31 December 2018

Balance at 1 July 2019

Total comprehensive loss for the period

Transactions with owners in their capacity as owners:

Issue of shares

Issue of options

Share issue expenses

Balance at 31 December 2019

Contributed	Accumulated	Reserves	Total
Equity	Losses
$	$	$	$
20,050,765	(15,605,113)	372,972	4,818,624
-	(951,946)	-	(951,946)

259,264	-	-	259,264
20,310,029	(16,557,059)	372,972	4,125,942
33,301,230	(17,291,130)	372,972	16,383,072
-	(1,138,846)	-	(1,138,846)

7,875,000	-	-	7,875,000
157,785	-	-	157,785
(1,551)	-	-	(1,551)
41,332,464	(18,429,976)	372,972	23,275,460

The accompanying notes form part of this financial report

Page 15

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the Half-Year Ended 31 December 2019

Cash Flows from Operating Activities

Payments to suppliers, contractors and employees Interest received

Payments for exploration and evaluation Receipt of R&D incentive

Net cash flows used in operating activities

Cash Flows from Investing Activities

Payments for property, plant and equipment Payments for exploration and evaluation expenditure

Net cash flows used in investing activities

Cash Flows from Financing Activities

Proceeds from issue of shares

Proceeds from issue of options

Share issue expenses

Farm in advances received

Farm in advances expended

Net cash flows from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the half- year

Cash and cash equivalents at the end of the half-year

31 December	31 December
2019	2018
$	$
(1,421,881)	(318,613)
46,210	20,777
(628,659)	(421,511)
225,660	-
(1,778,670)	(719,347)
(89,786)	-
(658,200)	(366,952)
(747,986)	(366,952)
7,875,000	259,264
157,785	-
(1,551)	-
982,713	322,894
(714,704)	(381,952)
8,299,243	200,206
5,772,587	(886,093)
15,897,453	4,954,122
21,670,040	4,068,029

The accompanying notes form part of this financial report

Page 16

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

For The Half-Year Ended 31 December 2019

1. BASIS OF PREPARATION

This general purpose financial report for the half-year reporting period ended 31 December 2019 has been prepared in accordance with Australian Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001. Compliance with AASB 134 ensures the financial report compliance with International Financial Reporting Standard IAS 34: Interim Financial Reporting.

The half-year report does not include full disclosures of the type normally included in an annual financial report. It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2019 and any public announcements made by Catalyst Metals Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

Reporting Basis and Conventions

The half-year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

New and Revised Accounting Standards

The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

AASB 16 Leases

The consolidated entity has adopted AASB 16 from 1 July 2019. The standard replaces AASB 117 'Leases' and for lessees eliminates the classifications of operating leases and finance leases. Except for short- term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). For classification within the statement of cash flows, the interest portion is disclosed in operating activities and the principal portion of the lease payments are separately disclosed in financing activities. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. Adoption of AASB 16 has not had a material impact on the amounts presented in the consolidated financial statements.

2. SEGMENT INFORMATION

The Company operates in one business and geographical segment being mineral exploration in Australia.

3. EVENTS AFTER REPORTING DATE

There have been no items, transactions or events of a material and unusual nature likely, in the opinion of the Directors, to affect significantly, the results of those operations, or the state of affairs of the consolidated entity in future financial years.

4. CONTINGENCIES

The Company does not have any contingent assets or contingent liabilities as at 31 December 2019.

Page 17

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

For The Half-Year Ended 31 December 2019

		31 December	30 June
		2019	2019
		$	$
5.	CASH AND CASH EQUIVALENTS
	Cash at bank	21,670,040	15,897,453

The cash at bank as at 31 December 2019 includes $1,254,346 (30 June 2019: $1,679,572) held in trust by Catalyst Metals Ltd's subsidiaries, Kite Gold Pty Ltd and Tandarra Management Pty Ltd, advanced by Gold Exploration Victoria Pty Ltd (GEV) and Navarre Minerals Limited (NML) as funds provided in advance for exploration expenditure on the Four Eagles Joint Venture and the Tandarra Joint Venture.

		31 December	30 June
		2019	2019
		$	$
6.	ADVANCES
	Advance from applicants to Prospectus	-	12,073
	Opening balance of Advance from Joint Venture Partners	184,908	(165,974)
	Advances received from Joint Venture Partners	982,713	2,800,370
	Exploration expenditure	(714,704)	(2,449,488)
	Closing balance of (Receivable)/Advance from Joint	452,917	184,908
	Venture Partners
		452,917	196,981

The (receivable)/advance from Joint Venture Partners relates to monies (receivable)/advanced (from)/to Kite Gold Pty Ltd and Tandarra Management Pty Ltd for their contribution to exploration expenditure on the Four Eagles Gold Project and Tandarra Gold Project.

Page 18

CATALYST METALS LIMITED AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

For The Half-Year Ended 31 December 2019

				31 December 2019		30 June 2019
				Number	$		Number	$
7.	CONTRIBUTED EQUITY
	(a)	Share capital
		Ordinary shares
		Fully paid	(c)	82,392,444	41,174,679	78,892,444	33,301,230
	(b)	Other equity securities
		Options - Listed	(d)	7,889,250	157,785	-	-
		Options - Unlisted	(e)	1,000,000	-	1,000,000	-
		Total contributed equity			41,332,464			33,301,230
	(c) Movements in Ordinary Shares
				Number of	Issue
		Details		Shares	Price	$
		Balance at 30 June 2019		78,892,444		33,301,230
		Issue of shares		3,500,000	$2.25	7,875,000
		Capital raising expenses		-			(1,551)
		Balance at 31 December 2019		82,392,444		41,174,679
	(d) Movements in Listed Options
				Number of	Issue
		Details		Options	price	$
		Balance at 30 June 2019		-		-
		Issued during period		7,889,250			157,785
		Balance at 31 December 2019		7,889,250			157,785

(e) Movements in Unlisted Options
	Number of	Issue
Details	Options	price	$
Balance at 30 June 2019	1,000,000		-
Exercised during period	-		-
Balance at 31 December 2019	1,000,000		-

Page 19

DIRECTORS' DECLARATION

The directors of the company declare that:

1. The financial statements and notes:
2. 1. comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001; and
   2. give a true and fair view of the consolidated entity's financial position as at 31 December 2019 and of its performance for the half-year ended on that date.
3. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Stephen Boston

Chairman

Dated: 13 March 2020

Page 20

RSM Australia Partners

Level 32, Exchange Tower

2 The Esplanade Perth WA 6000

GPO Box R1253 Perth WA 6844

T [phone]

F [phone]

www.rsm.com.au

INDEPENDENT AUDITOR'S REVIEW REPORT

To the Members of Catalyst Metals Limited

We have reviewed the accompanying half-year financial report of Catalyst Metals Limited, which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors' responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2019 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Catalyst Metals Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Catalyst Metals Limited, would be in the same terms if given to the directors as at the time of this auditor's review report.

THE POWER OF BEING UNDERSTOOD

AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Catalyst Metals Limited is not in accordance with the Corporations Act 2001, including:

1. Giving a true and fair view of the consolidated entity's financial position as at 31 December 2019 and of its performance for the half-year ended on that date; and
2. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

David Wall

Partner

RSM Australia Partners

Perth, WA

Dated: 13 March 2020