Orion Minerals : Half Year Financial Report - 31 December 2022

and its Controlled Entities

ABN: 76 098 939 274

31 December 2022

Interim Financial Report

This interim financial report does not include all the notes of the type normally included in the annual financial report. Accordingly, this report is to be read in conjunction with the annual financial report for the year ended 30 June 2022 and any public announcements made by Orion Minerals Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Orion Minerals LtdInterim Financial Report

Corporate Directory

BOARD OF DIRECTORS	SHARE REGISTRY
Mr Denis Waddell (Non-Executive Chairman)	Link Market Services Limited
Mr Errol Smart (Managing Director/CEO)	QV1, Level 2, 250 St Georges Terrace
Mr Thomas Borman (Non-Executive Director)	Perth, Western Australia 6000
Mr Godfrey Gomwe (Non-Executive Director)	Telephone: [phone]
Mr Alexander Haller (Non-Executive Director)
Mr Mark Palmer (Non-Executive Director)
	STOCK EXCHANGE LISTING
COMPANY SECRETARY	Primary listing:
	Australian Securities Exchange (ASX)
Mr Martin Bouwmeester	ASX Code: ORN
	Secondary listing:
REGISTERED OFFICE AND PRINCIPAL PLACE OF	JSE Limited (JSE)
BUSINESS	JSE Code: ORN
Level 21
55 Collins Street	JSE SPONSOR
Melbourne, Victoria, 3000
Telephone: [phone]	Merchantec Capital
	13th Floor, Illovo Point
	68 Melville Road
AUDITOR	Illovo, Sandton 2196
BDO Audit Pty Ltd
Level 18	WEBSITE
Tower 4, 727 Collins Street	www.orionminerals.com.au
Docklands, Victoria 3008

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Orion Minerals Ltd	Interim Financial Report

Directors' Report

The directors present their report together with the consolidated interim financial report for the half year ended 31 December 2022 and the independent auditor's review report thereon.

DIRECTORS

The names of Orion Minerals Ltd Directors at any time during or since the end of the half year are:

Director

Non-executive

Designation

Appointed

Mr Denis Waddell	Non-executive Chairman	27 February 2009
Mr Thomas Borman	Non-executive Director	16 April 2019
Mr Godfrey Gomwe	Non-executive Director	16 April 2019
Mr Alexander Haller	Non-executive Director	27 February 2009
Mr Mark Palmer	Non-executive Director	31 January 2018
Executive
Mr Errol Smart	Managing Director	26 November 2012

CORPORATE STRUCTURE

Orion Minerals Ltd (Orion or Company) is a public company limited by shares, that is incorporated and domiciled in Australia. The Company has prepared a consolidated interim financial report incorporating the entities that it controlled during the financial reporting period, including those newly acquired (referred to as the Group).

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activity of the Group during the reporting period was exploration, evaluation and development of base metal, gold and platinum-group element (PGE) projects in South Africa (Areachap Belt and Okiep Copper Complex, Northern Cape). The Company also holds interests in the Fraser Range Nickel-Copper and Gold Project in Western Australia and the Walhalla Project in Victoria, Australia. There were no significant changes in the nature of the Group's principal activities during the reporting period.

OPERATING RESULTS

The Group recorded a loss for the half year of $7.47 million (31 December 2021: loss of $10.47 million). The result is driven primarily by a $2.99 million unrealised foreign exchange loss, contractor and advisor expenses of $2.33 million, exploration expenditure incurred of $2.21 million which, under the Group's deferred exploration, evaluation and development policy, did not qualify to be capitalised and was expensed and finance income of $1.60 million, principally related to interest receivable on the Company's investment in preference shares, issued to the Company (through its subsidiary Agama Exploration & Mining (Pty) Ltd (Agama)) by Prieska Resources Pty (Ltd) (Prieska Resources).

Net cash used in operating and investing activities for the half year totalled $7.80 million (31 December 2021: $9.78 million) and included payments for exploration and evaluation activities of $5.11 million (31 December 2021: $7.17 million). The Group continues to focus strongly on the development of its Prieska Copper-Zinc Project in South Africa's Areachap geological terrane,

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Orion Minerals Ltd	Interim Financial Report

Directors' Report (continued)

Northern Cape (Prieska Project), Okiep Copper Project, Jacomynspan Project and exploration within its Areachap Belt projects in South Africa.

Net cash from financing activities totalled $6.49 million and included proceeds from the issue of ordinary shares of $4.84 million.

Cash on hand as at 31 December 2022 was $2.73 million (30 June 2022: $4.29 million).

The basic loss per share for the Group for the half year was (0.14) cents and diluted loss per share for the Group for the half year was (0.14) cents (31 December 2021: basic loss per share 0.23 cents and diluted loss per share 0.23 cents).

REVIEW OF OPERATIONS

During the half year, Orion continued to progress its strategy of building a high-quality pipeline of future facing base metals development and exploration assets to supply the demands created from a global clean energy transition. Results included strong progress with financing and pre-development activities at the development-ready Prieska Copper-Zinc Project (Prieska Project), as well as progressing exploration programs and feasibility studies at the Okiep Copper Project (OCP) and Jacomynspan Project, all located in the mineral-rich Northern Cape Province of South Africa.

Funding for Prieska was significantly advanced during the reporting period, with total pre- development funding of more than ZAR350 million (~$32 million) secured to carry out demonstration trial mining and allow dewatering to commence from underground mine workings. Both of these work streams are critical to a Bankable Feasibility Study for an Early Production Plan at Prieska. The study work, including trial mining, is scheduled for completion by Q3 2023.

Pre-development funding has also been secured for the Okiep Copper Project, with South Africa's Industrial Development Corporation acquiring a 43.75% stake in New Okiep Mining Company. The Industrial Development Corporation will now advance its share of pre- development costs, amounting to ZAR34.6 million (~$3.0 million), and will facilitate meaningful economic participation by Historically Disadvantaged South Africans to further the ownership objectives of the Mining Charter 2018.

A Mining Right has been granted and executed for the Flat Mines Area at the OCP, paving the way for the commencement of confirmation drilling and metallurgical sampling required to complete an advanced stage Feasibility Study.

At the Jacomynspan Nickel-Copper-PGE Project, a metallurgical test work program commenced to produce battery precursor products and other critical metal micro-powders from Jacomynspan ore. This work is being progressed under an exclusivity agreement signed with Stratega Metals in May 2022. Test work is progressing, with promising results and the exclusivity period has been extended to 31 July 2023.

In the Fraser Range Province in Western Australia, Orion's joint venture partner, IGO Limited (ASX: IGO), undertook aircore drilling, geological logging and moving loop electromagnetic (MLEM) surveys.

The Company strives at all times to achieve a sustainable balance between intense operational effort and maintaining a strong focus on safety, environment and community.

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Orion Minerals Ltd	Interim Financial Report

Directors' Report (continued)

REVIEW OF OPERATIONS (continued)

HEALTH AND SAFETY, ENVIRONMENTAL, SOCIAL AND GOVERNANCE

Health and Safety

No lost-time injuries were reported during the half year period. The hours worked for the 6 months ended 31 December 2022 are shown in Table 1.

Table 1: Hours worked at the Areachap Projects during the 6 months ended 31 December 2022 (South Africa).

Category of work	6 months to December 2022 (hours)
Exploration	8,375
Mine re-entry	21,012
Contractors	18,709
Total	48,096

The Lost-Time Injury Frequency Rate (LTIFR) per 200,000 hours worked is 0 for the 2022 calendar year.

The Company continues to manage the risks from the COVID-19 pandemic in the workplace in line with government and industry guidelines. No COVID-19 cases or hospitalisations were reported during the reporting period.

Community and Stakeholder Engagement

Prieska Project - Task Team Update: Focussed workstreams

The Prieska Copper-Zinc Mine (PCZM) Task Team continued to engage during the reporting period and prepare the roadmap of how Orion and host community businesses and other stakeholders will collaborate to promote the increased participation of local businesses and the creation of more employment opportunities in the Siyathemba Local Municipality and Vanwyksvlei areas.

It was agreed that the PCZM Task Team will be split into two focused work groups: one that will concentrate on promoting local procurement and the other on promoting the employment of host community residents.

These work groups are assessing the capacity of host community businesses and available skill- sets and comparing these to the future needs of the mine, both during its construction and operational phases. They will then develop methods and interventions to bridge the gap between what will be required by the mine and what the host communities have to offer. Orion remains committed to achieving the aspirational targets for host community participation.

Orion held a meeting with the Siyathemba Stakeholder Engagement Forum (SEF) in November 2022 to provide updates on the progress at the Prieska Project.

During this meeting, Orion provided an update on ongoing funding efforts, plans for the revised Bankable Feasibility Study (BFS) as well as the early production and dewatering plans at the PCZM. The forum also discussed the ongoing Bosberaad Task Team Process which concluded its mandate at the end of the reporting period. A report on the roadmap developed by the Task Team for the achievement of the aspirational host community employment and procurement targets (agreed at the Bosberaad in October 2021) is anticipated to be concluded and circulated to stakeholders during Q1 CY2023.

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