TORN RESO : Full Year Statutory Accounts

ABN 72 002 261 565

Financial Report

For the year ended 31 December 2021

Torian Resources Limited
Corporate directory
31 December 2021
Directors	Mr. Paul Summers - Executive Chairman
Mr. Peretz Schapiro - Executive Director
Mr. Dale Schultz - Non-Executive Director
Company secretary	Mr Leonard Math
Registered office:	104 Colin Street, West Perth WA 6005
Telephone:	[phone]
Fax:	[phone]
Email:	[e-mail]
Website:	www.torianresources.com.au
Share register	Advanced Share Registry Services
110 Stirling Highway
Nedlands WA 6009
Telephone: [phone]
Facsimile: [phone]
www.advancedshare.com.au
Auditor	BDO Audit Pty Ltd
Level 18, 727 Collins Street
Melbourne VIC 3008
Telephone: [phone]
https://www.bdo.com.au/
Stock exchange listing	Torian Resources Limited shares are listed on the Australian Securities Exchange
(ASX code: TNR)

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Torian Resources Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 31 December 2021.

Directors

The following persons were directors of Torian Resources Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

Mr Paul Summers

Mr Peretz Schapiro Mr Dale Schultz

Principal activities

The activities of the Group and its subsidiaries during the year ended 31 December 2021 was to explore mineral tenements in Western Australia.

Review of operations

The loss for the consolidated entity after providing for income tax amounted to $3,275,380 (31 December 2020: $2,070,357). Cash reserves at year end were $1,848,370 (31 December 2020: $2,373,018) and net assets amounted to $29,516,934 (31 December 2020: $22,285,730).

During the financial year ended 31 December 2021, the following activities occurred:

• ● On 6 January 2021, the Company announced the results from a further two sections (4 drill holes) from Phase 1 of the Mt Stirling drill program which drilled 31 RC holes for 5,767 metres. This phase confirmed and extended the Mt Stirling gold system over 480m strike, on 40m centre drill spacings.

• ● On 22 January 2021, the Company announced that BDO Audit Pty Ltd (BDO) had been appointed as the Company's auditors with effect from 22 January 2021. This appointment followed the resignation of RSM Australia Partners. The

  Board's decision to change auditors was made following a tendering process and consideration of the Auditor's location relative to the Company's management.

• ● On 27 January 2021, the Company announced significant high-grade results from a further 3 sections (7 drill holes) from Phase 1 of the Mt Stirling drill program which drilled 31 RC holes for 5,767 metres. This phase confirmed and extended the Mt Stirling gold system over 480m strike, on 40m centre drill spacings.

• ● On 3 February 2021, the Company announced a significant high-grade gold intercept discovered ~80m NW of the current defined resource estimate area. These results confirmed extension of Mt Stirling's strike of mineralisation by at least 80m to the NW. Significantly, three additional NW extension Phase 2 drill sections, occur in direct NW strike of MSRC061 gold mineralisation intercepted, for a further 120m extension of interpreted mineralised strike.

• ● On 15 February 2021, the Company announced that another gold mineralised zone has been discovered at Mt Stirling ~60m east of Mt Stirling Main Zone on section 1600N.

• ● On 19 February 2021, the Company announced that assay results received from the Mt Stirling Gold Project continue to confirm strike extension of the Mt Stirling Gold System to the north-west, with the system now confirmed over ~680m strike.

• ● On 15 March 2021, the Company announced that it has entered into an agreement to make a strategic investment into BullionFX, a leading blockchain company focused on developing blockchain based currencies backed by precious metals (bullionfx.com).

  BullionFX is developing a decentralised digital gold registry linked to global wholesale spot market liquidity, surrounded by institutional grade protections including insurance, audit and storage, allowing users to use physical gold as a mechanism for payment, trade and storage of wealth. BullionFX is developing a gold-backed cryptocurrency token that it intends to list on as yet decided secondary market exchanges and forex platforms in the future and launch a suite of payment and debt solutions. BullionFX are currently at the stage of developing 'smart contracts' (this a technical term for the code that goes into blockchain).

• ● On 17 March 2021, the Company announced that assay results received from the Mt Stirling Gold Project continue to confirm strike extension of the Mt Stirling Gold System to the north west, with the system confirmed over ~760m strike.

• ● On 24 March 2021, the Company announced that it has received binding commitments for a placement to raise $4.0 million to local and international sophisticated investors and long-term shareholders through the issue of approximately 72.7 million fully paid ordinary shares together with a 1-for-3 attaching option at an issue price of $0.055 per share (Placement). Funds raised ensured that drilling would continue unabated at the Mt Stirling Gold Project throughout 2021. The Placement included an attaching listed option exercisable at $0.02 expiring on 7 February 2022 on the basis of one option for every three Placement shares issued (Placement Options).

• ● On 7 April 2021, the Company announced that recent drilling results had confirmed that the Mt Stirling Gold System extended over ~1.1km of Strike and remained open in multiple directions. Additionally, a new Western Zone has been discovered at the south eastern end of the Mt Stirling Gold System.

• ● On 12 April 2021, the Company announced that recent drilling results continued to extend the Mt Stirling Gold System over ~1.1km of Strike, ~300m at depth, and that the system remained open in multiple directions.

• ● On 27 April 2021, the Company announced that Monger Gold Limited (ASX: MMG) had lodged a Prospectus with ASIC on 16 April 2021 to raise between $5-$6million. On 28 May 2021 it was announced that the IPO closed after completing the issue of 25million ordinary shares to raise $5m. Monger listed on the ASX on 2 July 2021. At the time of listing, Torian held ~10.71% of Monger.

• ● On 27 April 2021, the Company announced that final assay results included in the mineral resource estimate update. Many of these latest results contain grades far exceeding the previous 2019 global grade. Results received also incorporated anomalous 4m comps previously reported and which had been upgraded as individual zones.

• ● On 3 May 2021, the Company announced that that via its wholly owned subsidiary Tarmoola Holdings Pty Ltd (THP) it has exercised its option to purchase the 172,662 Ha (424,748 acre) Tarmoola Station and associated mining services business "Carhill Contracting" for a purchase price of $4,000,000. The purchase of the station and associated business also includes hard assets (Machinery, vehicles etc) that have been independently valued at $1,165,600 (inc GST).

• ● On 12 May 2021, the Company announced receipt of further assay results to be included the mineral resource estimate update. Results received also incorporated anomalous 4m composites previously reported and which had been upgraded as individual zones.

• ● On 27 May 2021, the Company announced details of Mt Stirling Interim Mineral Resource Estimate Update. The Mt Stirling Interim Mineral Resource Estimate (MRE) increased by 200% to 2.05M tonnes @ 1.54 g/t Au for 102,000 ounces including 20,000 Indicated ounces from surface (using a 0.5 g/t gold cut-off). Torian Resources engaged BM Geological Services (BMGS) to complete a Mineral Resource Estimate (MRE) for the Mt Stirling deposit situated 40km northwest of Leonora WA, during May 2021.

• ● On 31 May 2021, the Company announced Multiple shallow mineralised gold intercepts not included in the recent Interim Mineral Resource Estimate (MRE) updated warrant follow-up drilling at Mt Stirling.

• ● On 31 May 2021, the Company announced that all resolutions at the annual general meeting were passed on a poll.

• ● On 1 June 2021, the Company announced that Mt Malcolm Mines NL (Mt Malcolm), through its wholly-owned subsidiary Mt Malcolm Gold Holdings Pty Ltd has exercised its option to acquire Torian's non-core tenements located in the Leonora district of Western Australia comprising the Malcolm, Mt George, Mt Stewart, Rabbit Warren South, Braemore and Calypso Prospects (Malcolm Project). Pursuant to the agreement previously announced on 14 April 2020, Torian granted Mt Malcolm an exclusive eighteen-month option to acquire the Mt Malcolm Project for consideration of $350,000 cash.

• ● On 7 July 2021 (and updated on 28 July 2021), the Company announced that surface pXRF and field work conducted over recent weeks has uncovered two new high priority targets at the Mt Stirling Gold Project. The discovery of the Tyrannus prospect on the NNW Ursus Fault position. The Tyrannus discovery was structurally significant as situated on inflection and splay junction of Wonambi Shear termination onto Ursus Fault, ~400m east of Mt Stirling gold mineralisation.

• ● On 3 August 2021, the Company announced that it has secured funding to settle on Tarmoola Station. Financing was arranged by RiverFort Global Capital Ltd, a London based UK Institutional Investment Manager (authorised and regulated by the UK Financial Conduct Authority), focusing on high growth companies. Though its wholly owned subsidiary, RiverFort Global Opportunities PCC Ltd, ("RiverFort") has advanced the Company $3.27 million (before costs) which the Company anticipates will be repaid in ordinary course of business. Interim funding of $3.049 (before costs) was immediately provided. Torian's Executive Directors and CFO to provided ~$1.7m of personal shares as collateral to secure the agreement.

• ● On 9 August 2021, the Company announced that all initial results from Diorite regional reconnaissance drilling hadnow been received and reviewed. A total of 21 drill holes for 2,683m were drilled. Encouraging results from gold intercepts associated with historical workings at the "Unexpected Mine" prospect, and mineralised target horizon zone at Diorite

  East, warrant follow-up RC drill testing.

• ● On 3 September 2021, the Company announced results from its drilling campaigns at Stirling Well. Results had increased the footprint of gold mineralisation at Stirling Well, with pierce point intercepts beyond the maiden resource boundary. The tenor of high-grade intercepts were also significantly above the global resource grade.

• ● On 17 September 2021, the Company announced that the conditions relating to the equity swap agreement it entered into with BullionFX in March of 2021 had been satisfied, following BullionFX listing its token $BULL on a secondary exchange and trading for >US50¢. As part of the equity-swap arrangement to take a low- risk equity position in BullionFX

  Ltd ("BullionFX") subscribing for US$1M of BullionFX equity representing 5,000,000 shares in BullionFX (a 2.5% stake at the time of agreement). In return BullionFX will acquire 27,711,968 ordinary shares in Torian. The agreement was completed on 17 October 2021 with the issue of 27,711,968 ordinary shares to BullionFX and the issue of 4,000,000 advisor options exercisable at 2.6¢ expiring 5 February 2024 to advisors Carraway Corporate Pty Ltd and Kikceto Pty Ltd in consideration for the introduction and assistance in negotiating the Equity Swap Agreement.

• ● On 20 September 2021, the Company announced that Hydra gold mineralisation had been confirmed with Auger Vacuum (AV) selective arsenic-rich samples returning anomalous gold along multiple interpreted strike target zone locations.

• ● On 27 September 2021, the Company announced that all resolutions at the general meeting were passed on a poll.

• ● On 28 September 2021, the Company announced A non-renounceable pro rata entitlement offer of up to approximately 347,754,860 Options to Eligible Shareholders on the basis of 2 New Options for every 5 Existing Shares held as at the Record Date at an issue price of $0.001 per New Option, each exercisable at $0.035 on or before 30 November 2023, to raise up to approximately $347,755 before issue costs.

• ● On 28 September 2021, the Company announced that the Mt Stirling Gold System Extended 280m Further SE. The interpreted mineralised strike of the Mt Stirling Gold System exceeded 1040 metres.

• ● On 5 October 2021, the Company announced that Tyrannus gold mineralisation had been confirmed over 600m with Auger Vacuum (AV) selective arsenic-rich samples returning significant anomalous gold from multiple interpreted target zones.

• ● On 12 October 2021, the Company announced that Mr Ian Pamensky had been appointed as Company Secretary following the resignation of Mr Matthew Foy who had resigned as Company Secretary due to personal reasons.

• ● On 13 October 2021, the Company announced results from various drilling campaigns at Mt Stirling. Results continued to expand the extents of gold mineralisation at various prospects and multiple gold domains, with pierce point intercepts beyond the current resource boundaries.

• ● On 26 October 2021, the Company announced that the Tyrannus gold footprint had been extended to 1000m with Auger Vacuum (AV) selective arsenic-rich samples returning further gold intercepts from target zones ~400m further NW Tyrannus oxide mineralisation is expanding in both strike and width at multiple areas amenable to open pittable Resource(s)