Announcement PDF Viking Mines Limited ABN 38 126 200 280 Annual report for the year ended 30 June 2017 Viking Mines Limited ABN 38 126 200 280 CONTENTS Corporate information 3 Chairman’s letter 4 Operations report 5 Directors’ report 12 Auditor’s independence declaration 19 Statement of comprehensive income 20 Statement of financial position 21 Statement of changes in equity 22 Statement of cash flows 23 Notes to the financial statements 24 Directors’ declaration 38 Independent auditor’s report to the members 39 ASX additional information 41 2 Viking Mines Limited ABN 38 126 200 280 CORPORATE INFORMATION Directors Executive Chairman: John (Jack) Gardner Executive Director: Peter McMickan Non-Executive Deputy Chairman: Raymond Whitten Company secretary Michael Langoulant Registered office Suite 2, Level 1, 47 Havelock Street West Perth WA 6005 Website www.vikingmines.com Email: info@vikingmines.com Ph: (61-8) 6313 5151 Fax (61-8) 9322 8892 Share registry Computershare Investor Services Pty Limited Level 11, 172 St Georges Terrace Perth WA 6000 Email: web.queries@computershare.com.au Ph: 1 300 787 272 Fax: (08) 9323 2033 Solicitor Jackson MacDonald Level 17, 225 St Georges Terrace Perth WA 6000 Auditor Rothsay Chartered Accountants Level 1, Lincoln Building 4 Ventnor Avenue West Perth WA 6005 Stock Exchange Listing Australian Securities Exchange (ASX code: VKA) 3 Viking Mines Limited ABN 38 126 200 280 CHAIRMANS LETTER Dear fellow shareholders, Your Board of Directors is pleased to present the eighth Viking Mines Limited (“Viking” or the “Company”) annual report. As we go to press, I am pleased to report that your company is in a strong cash position, for a junior exploration & mining company. Of the USD 8 million cash component of the Akoase sale, USD 5 million has been received, with a further USD 3 million expected by December. Your directors operate with low overheads so that most funds are applied to projects. We have been actively searching for mature projects rather than greenfields opportunities, as exploration can be a risky business. Gold offers attractive opportunities when care is taken in selection. Your directors have concentrated on the extraordinarily endowed Ashanti Gold Belt in Ghana. I am particularly pleased to note that Viking will shortly be awarded the Tumentu lease, with its drill-ready targets. We are pursuing a number of other opportunities in the Ashanti belt with the view of building a world class suite of mature gold properties. Viking is investigating hard rock tin-lithium opportunities in the world class regional belt stretching from Myanmar through Thailand into Malaysia, Hard rock tin associated with lithium rich micas is particularly attractive in Thailand where the Government is supportive of lithium battery development.. Tin itself has become an attractive commodity and lithium continues its strong growth. As previously advised your company seeks particular minerals including gold, copper, zinc and manganese, in jurisdictions where it expects to operate safely. We have searched in Australia but to date have not found a project of value compared with going offshore, where we can bring the extensive experience of your directors to bear. On behalf of the Board I also thank our new investors and existing shareholders for your continued support, and we look forward to keeping you informed of our progress during 2018. Yours faithfully Jack Gardner Executive Chairman 4 Viking Mines Limited ABN 38 126 200 280 OPERATIONS REPORT The focus of Viking Mines Ltd (Viking or the Company) activities over the past year was to crystallise receipt of the sale proceeds from the sale of its Ghana located Akoase gold project, while seeking new projects to acquire. As at the date of this report the Company has received USD5 million cash sales proceeds from the sale of the Akoase gold project, and USD3 million due to be paid by 31 December 2017. The Company’s search for a new project led to a transaction to acquire a lithium project in Thailand. After considerable effort and early exploration promise this acquisition did not proceed as Viking formed the view that certain key condition precedents could not be met. Figure 1: Viking Mines Project Locations Figure 2: Viking Mines Gold Project Locations, Southern Ghana 5 Viking Mines Limited ABN 38 126 200 280 Ghana Projects The Viking Mines mineral licences are located in southern Ghana, West Africa (Figure 2) in one of the most strongly gold endowed and tightly held geological provinces in the world, the Ashanti Gold Belt. Numerous multi-million ounce gold deposits are located within and on the margins of the Ashanti Gold Belt, including two of the largest gold deposits in the world, Obuasi and Tarkwa. Akoase Gold Project (Viking 100% - reducing to 0% upon completion of sale) In June 2015 the Company announced that it is had executed a sale contract for the Akoase Gold Project for an overall transaction value of US$10 million, of which USD 8.0 million was to be paid in cash. At the date of this report Viking has been paid USD5 million in sales proceeds (USD3 million having been received since the end of the financial year). Securing and completing the necessary documentation to be granted government approval to this sale was a focus of the Company during the first half of the financial year. Receipt of government approvals occurred in December 2016. . The remaining USD 3 million is due in December 2017 and covered by a Guarantee of payment from BXC Ghana Ltd. (Refer to ASX announcement re Deed of Acknowledgement May 2017). Current Akoase sale and the Deed of Acknowledgement summary:  USD5 million – paid to date,  USD 3 million to be paid by 31 December 2017*, and  a further USD 2 million via royalties from production. * This payment date is subject to a 30 day buffer before BXC Ghana is considered to be in default such that penalty interest applies to the overdue amount. The Board of Viking remains extremely confident that the balance of the Akoase sale proceeds will be received in a timely manner. An Inferred mineral resource estimate, classified in accordance with the JORC (2012) Code, of 20.6 Mt @ 1.2 g/t Au for 790,000 ounces of contained gold, at a 0.5 g/t Au cut-off was completed for the Akoase East deposit in September 2013. The Akoase resource is reported in the Mineral Resources Statement below in Table 1. Tumentu Gold Project (Viking 100%) [formerly part of West Star Joint Venture] Viking previously held the hard rock rights to the West Star gold project, which is located approximately 185km west of Accra (Figure 2), with sealed road access within 5km and grid power within 10km of the project area. The tenement holder and Joint Venture partner held the alluvial rights on the project. As a result of alleged non-compliance with the Mining Act by the Joint Venture partner the original joint venture tenements have been rescinded/or will not be renewed. Notwithstanding the above Viking’s Ghanaian subsidiary has, lodged a prospecting licence application (the Tumentu licence application) over the majority of the area of the previous West Star prospecting licence. Viking is of the view that the new Tumentu prospecting licence application contains the most prospective area from the previous joint venture. Upon the Tumentu licence being granted Viking will proceed with a previously planned reconnaissance drill program to test a strong gold in soil anomaly located adjacent to the Salman shear zone. Thailand Lithium Project In November 2016, Viking entered into an agreement with Argo Metals Group Limited (Argo) and its shareholders to acquire a lithium project, and an option to acquire a tungsten project, both in southern Thailand. Early sample results from the project areas were promising; however key conditions precedent to the acquisition remained outstanding more than 6 months after entering into the agreement. Thus in May 2017, Viking issued a formal Notice of Termination to Argo that it would not proceed with the acquisition of Argo as Viking felt these key conditions precedent to the acquisition were no longer considered achievable. Prior to terminating this acquisition Viking did undertake field sampling and other geological activities on the Thailand projects. As Viking is not proceeding with the acquisition the results of these activities have not been reported. Viking is actively considering other tin-lithium project opportunities in this region. 6 Viking Mines Limited ABN 38 126 200 280 Mongolia Projects Mongolia is a nation rich in mineral resources situated between two of the world’s largest economies. It has the advantage of prospective geology and proximity to markets and, as a result, has attracted significant investment to the country in recent years. Viking holds two advanced coal projects in Mongolia (Figure 3). Berkh Uul Ulaanbaatar Khonkhor Zag Figure 3: Viking Mines Coal Project Locations, Mongolia Berkh Uul Coal Project (Viking 100%) Berkh Uul is located 400 km north of Ulaanbaatar in northern Mongolia within the Orkhon-Selege coal district and within 20km of the Russian border (Figure 3). The project is within 40km of rail access into Russian off-take markets, in close proximity to water, infrastructure and transport. The deposit consists of shallow, consistent coal seams of high quality bituminous coal amenable to open pit mining. Discussions had confirmed a local industrial demand for unwashed Berkh Uul coal, due to its low ash and relatively high calorific value. Four MOU’s have been signed with government entities in the Darkhan region. The MOU’s, signed with Viking’s Mongolian subsidiary BRX LLC state the government entities intent to enter into future purchase agreements for Berkh Uul project coal, and establishes testing of a bulk sample as a basis for technical evaluation of the coal. In 2015 a Mongolian Government review of the Law on Prohibiting Mineral Exploration and Extraction near Water Sources, Protected Areas and Forests (commonly referred to as the “Long Name Law”) resulted in Viking being advised that approximately 53% of the Berkh Uul prospecting licence falls within a headwaters of rivers zone and is subject to a determination of an exclusion zone under the Long Name Law. This government determination impacts upon the Company’s current coal resource. During the year Viking continued its efforts to reverse/amend this ruling. A site visit with various federal and local government officials was conducted and numerous submissions were made to the government on this matter. Viking continues to seek a resolution relating to changes to boundaries of protected areas affecting the Berkh Uul prospecting license. However with no guidance currently forthcoming from either the Ministry for Mines and Heavy Industry or Environmental Ministry, the Company is considering its legal options. The Berkh Uul deposit has a JORC (2012) coal resource of 38.3 Mt. Of this, 21.4Mt is classified as Indicated and 16.9Mt classified as Inferred. The coal is bituminous in rank (ASTM classification) with average in situ quality as follows: Total Moisture 19.8%, Calorific Value 5,323 kcal/kg (air dried basis, adb), Ash 15.5% (adb), and Total Sulphur 0.37% (adb). The Berkh Uul resource is reported in the Mineral Resources Statement below in Tables 2and 3. 7 Viking Mines Limited ABN 38 126 200 280 Khonkhor Zag Coal Project (Viking 100%) Khonkor Zag is an anthracitic coal project located 1,400km southwest of Ulaanbaatar in Western Mongolia (Figure 3). It is strategically located within 40km of China’s Burgastai border port with an existing haul road adjoining the tenement. The current mining licence was granted in April 2013, for a period of 30 years. Government approvals have already been received for the Khonkhor Zag Environmental Impact Assessment, and the Feasibility Study Report, which provides a clear pathway for any future mining and coal production at Khonkhor Zag. Excellent scope exists to develop Khonkhor Zag as a low cost, high margin premium coal project close to Chinese markets. No on-ground work was undertaken during the year. Joint venture partners are currently being sought to assist with development of the project. Corporate In the 2017/2018 financial year the company will drill the Tumentu gold project in Ghana and continue to seek development or sale opportunities for its Mongolian coal projects. It remains your Company’s policy to give priority to more mature exploration opportunities over greenfields exploration due to the inherent lower risk, and shorter lead time to production. We have the experience of management to take mature projects forward. Australia presents a very competitive market today for gold, base metals, lithium and other specialty mineral projects; to date your Company has not found an advanced project out of many presented, to which it can add significant value. We continue to seek a suitable Australian project. Of the preferred overseas destinations, Ghana in particular presents advanced gold properties to the Company. This is partly a consequence of your board’s long association there. The Company will continue to build a suite of advanced gold exploration projects in one of the world’s most endowed gold provinces, where the Government is stable and mining friendly. The Company will carefully asses all projects presented to it with a view to exploiting its strong cash position for the maximum benefit of all shareholders. 8 Viking Mines Limited ABN 38 126 200 280 Mineral Resources Statement The Mineral Resources statement for the Company, as at 30 June 2017 is summarized below: 1. Akoase Gold Project, southern Ghana, Viking 100% ownership reducing to 0% upon completion of sale The Akoase East resource has been independently estimated by internationally recognized and qualified resource consultancy GHD Pty Ltd in accordance with the JORC (2012) Code. An Inferred mineral resource estimate of 20.6 Mt @ 1.2 g/t Au for 790,000 ounces of contained gold, at a 0.5 g/t Au cut-off was completed for the Akoase East deposit in September 2013 (Table 1). The Akoase East resource estimate is based on geological, drilling and assay information up to the end of August 2013. It includes approximately 10,000 metres of historical Reverse Circulation (RC) drilling data, plus data from approximately 10,000 metres of RC and 3,000 metres of diamond drilling completed by Viking between 2010 and 2013. Table 1: Akoase East JORC (2012) Inferred Resource Estimate (September 2013) TOTAL Cut off (g/t Au) Million tonnes Au g/t Oz Au (x 1,000) 0.4 21.6 1.2 800 0.5 20.6 1.2 790 0.75 16.9 1.3 710 1.0 12.0 1.5 570 BY WEATHERING TYPE Oxide Cut off (g/t Au) Million tonnes Au g/t Oz Au (x 1,000) 0.4 5.9 1.2 220 0.5 5.7 1.2 217 0.75 4.6 1.3 194 1.0 3.2 1.5 156 Fresh Cut off (g/t Au) Million tonnes Au g/t Oz Au (x 1,000) 0.4 15.6 1.2 581 0.5 14.8 1.2 570 0.75 12.3 1.3 518 1.0 8.7 1.5 417 Ordinary Kriging whole block estimates using 25mE x 25mN x 10mRL parent block dimensions. Reported using gold (Au) lower cut-off grades (preferred cut-off is 0.5 g/t Au). Using rounded figures in accordance with the Australian JORC Code (2012) guidance on Mineral Resource Reporting. Viking is not aware of any new information or data that materially affects the above resource calculation, and that all material assumptions and technical parameters underpinning the estimated resource continue to apply and have not materially changed. The Akoase East resource estimate and associated report was completed by internationally recognised resource consultants GHD Pty Ltd in September 2013. The resource estimate has been reviewed by Viking’s Competent person, Mr Peter McMickan, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), member number 105742. Mr McMickan has approved to the Akoase East resource estimation as outlined in this report in accordance with the requirements of the JORC Code (2012) and ASX Rules. 2. Berkh Uul Coal Project, northern Mongolia, Viking 100% ownership An Indicated and Inferred coal resource estimate, classified in accordance with the JORC (2012) Code, for the Berkh Uul coal project was completed in March 2014. The resource estimate was completed for Auminco Mines Ltd by internationally recognized and qualified consultancy group, RungePincockMinarco Ltd, and totals 38.3 Mt. Of this, 21.4Mt is classified as Indicated and 16.9Mt classified as Inferred (Table 2). The coal is bituminous in rank (ASTM classification) with average in situ quality as follows: Total Moisture 19.8%, Calorific Value 5,323 kcal/kg (air dried basis, adb), Ash 15.5% (adb), and Total Sulphur 0.37% (adb) (Table 3). 9 Viking Mines Limited ABN 38 126 200 280 Tables 2and 3: Berkh Uul JORC (2012) Indicated and Inferred Resource Estimate (February 2014) Table 2: Berkh Uul JORC (2012) Coal Resource Tonnage (million tonnes in situ) Resource type Seam Indicated Inferred Total 1 Measured _ 4.4 3.5 7.9 2 _ 2.6 0.3 3.0 OC subtotal _ 7.0 3.9 10.9 1 _ 8.2 8.3 16.5 2 _ 6.2 4.8 10.9 UG subtotal _ 14.4 13.1 27.4 16.9 38.3 Open Cut Underground Grand Total _ 21.4 Sum of columns may not equal the total due to rounding Table 3: Berkh Uul JORC (2012) Coal Resource Quality Resource type Open Cut Seam TM (%) IM (%) Ash (% adb) VM (% adb) FC (% adb) TS (% adb) CV (kcal/kg adb) Rdis 1 20.8 13.5 14.4 32.6 39.5 0.34 5373 1.35 2 21.0 13.7 9.8 34.9 41.6 0.35 5693 1.31 subtotal 20.9 13.6 12.7 33.4 40.3 0.34 5493 1.33 1 18.9 12.0 20.1 30.9 37.1 0.37 5011 1.39 2 20.9 13.8 10.0 34.5 41.7 0.37 5684 1.32 subtotal 19.1 12.1 19.2 31.2 37.5 0.37 5066 1.38 OC subtotal 20.3 13.1 15.0 32.6 39.3 0.35 5342 1.35 1 18.9 12.2 18.8 31.3 37.8 0.34 5110 1.38 2 20.9 13.7 10.3 33.9 42.0 0.42 5681 1.32 subtotal 19.7 12.8 15.2 32.4 39.6 0.37 5355 1.35 1 18.7 12.0 19.6 31.0 37.4 0.35 5050 1.39 2 21 13.8 10.6 33.8 41.8 0.43 5657 1.32 subtotal 19.6 12.6 16.3 32.0 39.0 0.38 5272 1.36 19.6 12.7 15.7 32.2 39.3 0.38 5313 1.36 category Ind Inf Underground Ind Inf UG subtotal Grand Total 19.8 12.8 15.5 32.3 39.3 0.37 5323 1.35 Note: Air Dried Basis(adb); TM- total Moisture; IM-Inherent Moisture; VM-Volatile Matter; FC – Fixed Carbon; TSTotal Sulphur; CV- Calorific Value; Rdis- in situ Relative Density. Sum of columns may not equal the total due to rounding The principal author of the Berkh Uul resource estimate and associated report is Mr Brendan Stats, who is a professional geologist with over 10 years’ experience in mining and mineral resource estimation. Mr Stats is a Senior Geologist of RungePincockMinarco Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy member number 311313. Mr Stats is responsible for the Berkh Uul resource estimation and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and for the activity to report a mineral resource. Mr Stats has approved the Berkh Uul resource estimation as outlined in this report in accordance with the requirements of the JORC Code (2012) and ASX Rules. 10 Viking Mines Limited ABN 38 126 200 280 Peter McMickan Executive Director Forward Looking Statements: This document may include forward looking statements. Forward looking statements may include, but are not limited to statements concerning Viking Mines Limited’s planned exploration programs and other statements that are not historical facts. When used in this document, words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward looking statements. Although Viking Mines Limited believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward looking statements. 11 Viking Mines Limited ABN 38 126 200 280 DIRECTORS’ REPORT Your Directors present their annual financial report on the consolidated entity (referred to hereafter as the “Group”) consisting of Viking Mines Limited (the “Company” or “Parent”) and the entities it controlled at the end of, or during, the financial year ended 30 June 2017. In order to comply with the Corporations Act, the Directors report as follows: Directors The following persons were Directors of the Company during the whole of the financial period and up to the date of this report: John William (Jack) Gardner (Executive Chairman) Jack Gardner was appointed a Director on 27th July 2007. He graduated with Bachelor of Engineering from the University of Melbourne in 1962 and has a Master of Business degree from Curtin University. He is a Fellow of The Institution of Engineers Australia. Mr Gardner has a long and distinguished career in servicing the mining industry in Australia as well as in West Africa. As a Director and General Manager of Minproc Engineers he was responsible for design and construction of gold and base metal plants. He established Minproc in Ghana where the company became that country’s leading mining project engineers. In Ghana he also headed Ghana Manganese Company (GMC) as Executive Chairman after negotiating its purchase from the Government of Ghana. Privately owned, GMC grew from 300,000 tpa to 1.7 million tpa of manganese carbonate shipments, until it was acquired for cash. Mr Gardner has been a Director of Mincor Resources Limited since its inception and 1996 ASX listing. Mr Gardner was also associated with Guinor from 1993, overseeing a number of expansions of the Lero heap leach project, and was pivotal in the development of the 350,000 oz pa LEFA Corridor gold Project. Guinor was acquired by Crew Gold Corporation Inc. Peter McMickan (Executive Director) Peter McMickan was appointed a Director on 27th July 2007. He graduated with an Honours Degree in Geology from the University of Melbourne, Australia in 1977 and has post-graduate qualifications in Mineral Economics from Macquarie University and is a Member of the Australasian Institute of Mining and Metallurgy. His professional career has spanned 34 years worldwide with a number of major, well respected international exploration and mining companies including Newmont, Pancontinental Mining, BP Minerals, Kalgoorlie Consolidated Gold Mines and Homestake. He is a highly regarded geologist and manager, with a proven track record of business and technical success throughout his career. His experience covers corporate, senior management and technical supervision of mining, development and exploration projects throughout Australia, Africa and Europe. He managed the mine geology, exploration and successful resource development of Guinor’s Lero gold project in Guinea, West Africa. During his four years with the company, the company’s exploration spend increased to US$1 million per month, which sustained the existing heap leach operation and resulted in expansion of the resource to over 4Moz of gold in the space of two years. This expanded resource base underpinned a major re-development of the Lero project to a 6Mtpa CIP/CIL operation producing 350,000 ounces of gold per year. Raymond Whitten (Non-Executive Director & Deputy Chairman) Raymond Whitten was appointed a director on 29 October 2014. Mr Whitten is an admitted solicitor with over 40 years’ experience having previously acted as President of the City of Sydney Law Society. Mr Whitten is an experienced investor with a wide range of investment interests and has served as a Director of many private and public companies. In 2005 as Chairman of the National Stock Exchange of Australia Limited (NSX) he was responsible for its successful IPO on the ASX in 2005. His current roles include serving as Chairman of Whittens & McKeough, a boutique Sydney law firm specialising in mergers and acquisitions and corporate law. Mr Whitten was formerly the Deputy Chairman of the Safety, Return to Work and Support Board (a board formed under statute responsible for determining the general policies and direction for the following agencies: Workcover NSW, Motor Accidents Authority NSW and Lifetime Care and support Authority NSW). Mr Whitten holds a Bachelor of Arts and Bachelor of Laws from the University of Sydney, a Masters of Laws from the University of Technology, Sydney, is an accredited specialist in business law and is a Notary Public. 12 Viking Mines Limited ABN 38 126 200 280 DIRECTORS’ REPORT Interests in the shares and options of the Company and related bodies corporate The following relevant interests in shares and options of the Company or a related body corporate were held by the directors and their associates as at the date of this report. Directors Number of fully paid ordinary shares John Gardner Raymond Whitten Peter McMickan 29,150,413 42,095,782 4,046,837 Company Secretary Michael Langoulant Mr Langoulant is a Chartered Accountant with almost 30 years' experience in corporate administration and fundraising for public companies. Mr Langoulant had ten years with large international accounting firms, and has acted as chief financial officer, company secretary and director for a number of publicly listed companies. Mr Langoulant established his own corporate services consultancy firm in 1994. Principal activity The principal activity of the Group during the financial period was investment in mineral exploration projects. Dividends No dividend has been paid or declared since the start of the financial period and the Directors do not recommend the payment of a dividend in respect of the financial period. Review of operations Information on the operations of the Group is set out in the review of Operations Report on pages 5 to 11 of this Annual Report. Significant changes in the state of affairs Apart from as outlined in the Operations Report there have been no significant changes in the state of affairs of the Group to the date of this report. Matters subsequent to the end of the financial period There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods other than the receipt of a further USD2 million in sales proceeds relating to the sale of the Akoase gold project. Likely developments and expected results Additional comments on expected results of certain operations of the Group are included in the review of operations and activities. Environmental legislation The Group is subject to significant environmental legal regulations in respect to its exploration and evaluation activities in Ghana. There have been no known breaches of these regulations and principles. Indemnification and insurance of Directors and officers During the financial period the Company has paid premiums in respect of a contract insuring all Directors and officers of the Company and its controlled entities against liabilities incurred as Directors or officers to the extent permitted by the Corporations Act 2001. Due to a confidentiality clause in the contract the amount of the premium has not been disclosed. Meetings of Directors During the financial period there were 6 formal Directors’ meetings. All other matters that required formal Board resolutions were dealt with via written circular resolutions. In addition, the Directors met on an informal basis at regular intervals during the financial period to discuss the Group’s affairs. 13 Viking Mines Limited ABN 38 126 200 280 DIRECTORS’ REPORT The number of meetings of the Company’s board of Directors attended by each director were: Directors’ meetings held 6 6 6 J Gardner R Whitten P McMickan Directors’ meetings attended 6 6 6 Shares under option Outstanding share options at the date of this report are as follows: Grant Date Date of expiry Exercise price Number of options April 2017 30 June 2020 $0.046 12,000,000 No option holder has any right under the options to participate in any other share issue of the Company or any other controlled entity. Shares issued on the exercise of options During the current financial year there were no shares issued upon the exercise of options. 14 Viking Mines Limited ABN 38 126 200 280 DIRECTORS’ REPORT Remuneration Report This report outlines the remuneration arrangements in place for the key management personnel of Viking Mines Limited (the “Company”) for the financial year ended 30 June 2017. The information provided in this remuneration report in relation to the current financial year has been audited as required by Section 308(3C) of the Corporations Act 2001. The remuneration report details the remuneration arrangements for key management personnel (“KMP”) who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Company, and includes all executives of the Company and the Group Key Management Personnel (i) Directors J Gardner (Chairman) R Whitten (Non-executive Deputy Chairman) P McMickan (Executive Director) (ii) Other executives M Langoulant (Company Secretary) Details of Directors’ and executives’ remuneration are set out under the following main headings: A Principles used to determine the nature and amount of remuneration B Details of remuneration C Employment contracts/Consultancy agreements D Share-based compensation A Principles used to determine the nature and amount of remuneration The objective of the Company’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aims to