Announcement PDF 2023 Annual Report Year ending 30 June 2023 ASX:VKA ABN 38 126 200 280 Corporate Directory Directors Auditor Mr Charles Thomas - Non-Executive Chairman BDO Audit (WA) Pty Ltd Mr Julian Woodcock - Managing Director and CEO Level 9, Mia Yellagonga Tower 2, 5 Spring Street, Perth WA 6000 Mr Michael Cox - Non-Executive Director Registered Office and Principal Place of Business Solicitors 15-17 Old Aberdeen Place, West Perth WA 6005 Level 48 152-158 St Georges Terrace, Perth WA 6000 Telephone: +61 8 6245 0870 Share Register Automic Pty Ltd Level 5, 191 St Georges Terrace, Perth WA 6000 Telephone: 1300 288 664 (within Australia) Telephone: +61 2 9698 5414 (outside Australia) Email: hello@automic.com.au Hamilton Locke Stock Exchange Listing Viking Mines Limited shares are listed on the Australian Securities Exchange (ASX: VKA) Website www.vikingmines.com Corporate Governance Statement The Corporate Governance Statement can be found on the Company's website: www.vikingmines.com/corporate-governance Contents Chairman’s Letter 2 Review of Operations 3 Directors' Report 17 Auditor's Independence Declaration 29 Consolidated Statement of Profit or Loss and Other Comprehensive Income 31 Consolidated Statement of Financial Position 32 Consolidated Statement of Changes in Equity 33 Consolidated Statement of Cash Flows 34 Notes to the Financial Statements 35 Directors Declaration 52 Independent Auditor's Report to the Members of Viking Mines Limited 53 Annual Mineral Resource and Ore Reserves Statement 57 Shareholder Information 58 Tenement Schedule 61 Chairman’s Letter Dear Viking Mines shareholders, It is with great pleasure that I present the 2023 Annual Report for Viking Mines Limited (ASX: VKA) (Viking or the Company). The Company had a successful year following the signing of a binding agreement to earn up to 99% of the Canegrass Battery Minerals Project (Canegrass or the Project) located in the Murchison Region of Western Australia. The Project represents a value accretive transaction for the Company and its shareholders to invest in an established project with a substantial Mineral Resource Estimate already defined. Following the announcement of the Farmin agreement in November of last year, the Company has spent the remainder of the year advancing exploration activities to verify the current Inferred Mineral Resource Estimate of 79Mt at 0.64% V 2O 5 , 29.7% Fe and 6.0% TiO2 and to test for extensions. Viking completed a number of predrilling exploration activities, which included multiple field visits to map the outcropping Vanadiferous Titanomagnetite and to take rock chip samples for analysis. The Company also completed a ground magnetic survey, which covered the 9km strike length of VTM horizon. The purpose of these exploration activities was to determine an Exploration Target Estimate in the lead up to the drilling campaign. 2 | V I K I NG M I NE S LT D Once heritage survey clearance was completed Viking commenced an extensive 7,500m drilling campaign which, subsequent to the reporting, period has returned shallow, thick and highgrade vanadium mineralisation across the project area. Importantly, results from the Kinks South target sit outside of the current Mineral Resource Estimate, providing an excellent opportunity to grow this already substantial Resource. It has been extremely pleasing as Chairman to witness the Company’s progress over the year. Your continued support throughout the 2023 Financial Year is greatly appreciated, and I strongly believe the Company will be able to increase value for its shareholders in the year ahead. I would also like to thank my fellow Directors for their contribution during the past year. Yours Sincerely, Charles Thomas Non-Executive Chairman Review of Operations The 2023 Financial Year was a significant year for the Company as it refocussed its strategy and entered into a binding agreement to earn up to 99% of the Canegrass Battery Minerals Project (Canegrass or the Project), with a primary commodity of vanadium. The Project already has a defined inferred JORC (2012) Inferred Mineral Resource Estimate (MRE) of 79Mt at 0.64% V 2O 5 , 29.7% Fe and 6.0% TiO2 . Following a thorough due diligence process, it was determined that there is a substantial exploration potential to discover and define additional resources outside the current limits of the estimated MRE. The focus for the Company for the remainder for the second half of the financial year was to advance exploration activities across the Canegrass Battery Minerals Project. 2023 ANNUAL REP ORT | 3 Canegrass Battery Minerals Project The Company announced on 30 November 2022 the successful signing of a binding agreement between Viking Critical Minerals Pty Ltd, a wholly owned subsidiary of Viking Mines Ltd, and Flinders Canegrass Pty Ltd, a wholly owned subsidiary of Red Hawk Mining Ltd (ASX:RHK) (formerly Flinders Mines Ltd (ASX:FMS)). Under the terms of the agreement, Viking can earn up to 99% of the Canegrass Battery Minerals Project (“Canegrass Project”) via a Farm-In Arrangement (“FIA“), with the remaining 1% attainable with milestone and production related payments. The Project is located in the Murchison Region, 620km north-east of Perth, Western Australia and 60km SE from the township of Mt Magnet. The Canegrass Projects’ primary commodity is Vanadium (as Vanadium Pentoxide – V 2O 5) and contains a substantial JORC (2012) Inferred Resource of 79Mt at 0.64% V 2O 5 (Table 1). Nickel, Copper and Cobalt are reported within the drilling data which has not previously been estimated into the MRE and will be assessed and investigated by Viking for its potential. Table 1 – Canegrass Project Vanadium Mineral Resource estimate, 0.5% V 2O 5 cut-off grade, >210m RL (due to the effects of rounding, the total may not represent the sum of all components Deposit JORC Classification Tonnage (Mt) V 2O5 % Fe % TiO2 % Al 2O3 % P% SiO2 % LOI % Fold Nose Inferred 59 0.66 30.5 6.5 11.9 0.006 22.9 2.9 Kinks Inferred 20 0.57 27.4 5.5 13.0 0.009 25.9 3.1 79 0.64 29.7 6.0 12.2 0.007 23.6 3.0 Total Field Visit – Farm-In Due Diligence The Company announced on 5 January 2023, that it had successfully completed the 30-day Due Diligence to its satisfaction, a condition precedent to the FIA 2 . As part of the Due Diligence process, Viking undertook a 5-day field visit to the Project. The field visit identified outcropping VTM units at the locations with historical rock chip samples over a strike length of 8km (Figure 1) at the Project which have been shown to contain high grade V2O 5 up to 1.7% 3 . These results indicated that only a small portion of the prospective horizon had been effectively explored and that substantial upside remains to grow the Resource. 1 ASX Announcement Viking Mines (ASX: VKA) 30 November 2022 – Viking to Farm-in to Substantial Battery Mineral Resource 2 ASX Announcement Viking Mines (ASX: VKA ) 5 January 2023 – VKA Confirms 8km Trend of VTM Outcrop & Commences Farm-In 4 | V I K I NG M I NE S LT D Review of Operations Initial Drilling Campaign The Company successfully and safely completed an initial Reverse Circulation (RC) drill program totalling 6 holes for 543m at Canegrass. Significantly, 17m of massive magnetite VTM mineralisation was intersected at the estimated target depth in hole VCRC0006 along with multiple magnetite bearing horizons in hole VCRC0005 3 . Assays received by the Company confirmed thick, high grade Vanadium rich zones at the interpreted target depths in hole VCRC00063 • 17m at 0.98% V 2O 5 from 89m, including 12m at 1.06% V 2O 5 from 91m • 19m at 0.61% V 2O 5 from 52m, including 6m at 0.88% V 2O 5 from 65m Furthermore, substantial elevated copper, nickel and cobalt values were identified within the hole. Significant intercepts of these additional battery metals include: • 17m at 590ppm Cu, 814ppm Ni and 190ppm Co from 89m • 12m at 1281ppm Cu, 766ppm Ni and 122ppm Co from 65m including; • 6m at 0.20% Cu from 70m with a Peak copper value of 0.31% Cu Figure 1 – Cross section through Kinks South target showing drilling results in hole VCRC0006 and projected target zones. Ground Magnetics Survey The Company engaged geophysical consultants, Planetary Geophysics Pty Ltd, to undertake a 16km2 ground magnetic survey at Canegrass. Significant improvements in the resolution of the magnetic anomaly maps has been achieved when comparing the previous airborne data to the new ground magnetics data. This improvement is due to the higher sampling frequency occurring along the lines walked during the data collection and the magnetic sensor being closer to the ground, as opposed to the older open-source data, which was collected using an airborne survey flying ~20m above the surface. Subsequent processing of the data was completed to produce a magnetic inversion model which was utilised in the planning and targeting the magnetite horizons at Canegrass 4 . 3 ASX Announcement Viking Mines (ASX: VKA) 20 March 2023 – Viking Drills 17m of Massive Vanadiferous Titanomagnetite 4 ASX Announcement Viking Mines (ASX:VKA) 21 February 2023 – Viking Commences Ground Magnetics Survey at Canegrass 2023 ANNUAL REP ORT | 5 Review of Operations Figure 2: Comparison images showing improvement in resolution of magnetics data achieved through collection of Ground Magnetics at the Canegrass Project. Top image (A) is composite image of opensource magnetics data collected at 40m spacings and 20m fly height. Bottom image (B) is ground magnetics data collected on variable 20m and 40m line spacings and ~3m collection height, merged with opensource data. Both images are presented as Total Magnetic Intensity, Reduced to Pole (TMI-RTP) (ASX Announcement 5 April 2023). 6 | V I K I NG M I NE S LT D Review of Operations Exploration Target Estimate: The Company completed an Exploration Target Estimate (“ETE”) for the Canegrass Project by consolidating the data obtained through field mapping, geophysical modelling and drilling observations. The ETE has been completed across six contiguous target areas across the Project as shown in Figure 3. The ETE is located outside of the existing extent of the Mineral Resource Estimate (refer to Figure 3). A summary of the respective targets is given below in Table 1. The total ETE is calculated to be in the range of: 144Mt to 192Mt at 0.45% to 0.99% V2O5 for 1.44 to 4.19 Billion Pounds V2O55 The potential quantity and grade of mineralisation of the ETE at the Canegrass Project is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will confirm the target ranges. The ETE has been generated by following a process to determine potential ranges of tonnes and grades at a series of exploration targets, with the calculations used by the Company to direct the strategy to drill test targets at the Project. The following sections outline the process used to derive the ETE. Table 2 – Summary of Exploration Target Estimate by Target Area Exploration Target Estimate Area 5 Million Tonnes Grade V 2O 5 % Billion Pounds V 2O 5 Lower (SG 3) Upper (SG4) Lower Upper Lower Upper Fold Nose South Extension 52.8 70.3 0.43% 1.07% 0.50 1.66 Fold Nose North Extension 11.2 15.0 0.43% 1.07% 0.11 0.35 Fold Nose to Kinks South 26.9 35.8 0.45% 1.06% 0.26 0.83 Kinks South 23.1 30.8 0.46% 1.04% 0.24 0.71 Kinks West Extension 1.7 2.2 0.57% 0.88% 0.02 0.04 Kinks North Extension 28.4 37.8 0.50% 0.71% 0.32 0.59 Total 144.0 192.0 0.45% 0.99% 1.44 4.19 ASX Announcement Viking Mines (ASX:VKA) 14 June 2023 – VKA Defines Substantial Upside Growth Potential at Canegrass 2023 ANNUAL REP ORT | 7 Review of Operations Figure 3 – Map showing the targets which comprise the Exploration Target Estimate and the respective estimate ranges. Note planned drilling which is underway at the project is shown as white triangles and all historical drilling as indicated by the legend (refer ASX announcement 14 June 2023). Major 7,500m Drilling Programme At the end of the financial year, the Company commenced with and subsequently completed a major drill programme at the Canegrass Battery Minerals Project, comprised of ~44 Reverse Circulation (RC) drillholes, totalling ~7,500m. The drill programme had two main objectives. 1. To improve the confidence in the current Mineral Resource Estimate (MRE) by drill testing within the existing Inferred (JORC 2012) MRE limits of 79Mt at 0.64% V 2O 51 to validate and improve the existing geological interpretation. 2. To grow the Mineral Resource base through discovery of new Vanadiferous Titanomagnetite (VTM) mineralisation by drill testing targets outside of the limits of the current MRE. Subsequent to the reporting period the Company received results from the Kinks south target and the Kinks deposit confirming substantial zones of high-grade vanadium mineralisation. 8 | V I K I NG M I NE S LT D Figure 4 – Drill Rig at the Canegrass Battery Minerals Project Kinks South Target Drilling at the Kinks South target has returned multiple and consistent, thick zones of vanadium mineralisation (reported as V 2O 5) along a 1.5km strike length. The Kinks South target does not form part of the current MRE and presents a substantial opportunity for the Company to grow the mineral resource base, specifically targeting a high-grade component >30Mt >0.9% V 2O 5 . Significant intercepts include: 6 • 6 VCRC0011: 38m at 0.76% V 2O 5 (>0.5%) from 114m, including: 15m at 0.95% V 2O 5 (>0.8%) from 118m & 7m at 0.98% V 2O 5 (>0.8%) from 145m 15m at 0.72% V 2O 5 (>0.5%) from 160m, including: 10m at 0.92% V 2O 5 (>0.8%) from 165m • VCRC0007: 46m at 0.55% V 2O 5 (>0.5%) from 68m, including: 12m at 0.82% V 2O 5 (>0.8%) from 88m • VCRC0008: 16m at 0.57% V 2O 5 (>0.5%) from 110m, including: 12m at 1.02% V 2O 5 (>0.8%) from 110m • VCRC0010: 34m at 0.57% V 2O 5 (>0.5%) from 43m, including: 12m at 0.96% V 2O 5 (>0.8%) from 61m ASX Announcement Viking Mines (ASX: VKA) 21 August 2023 – Viking Discovers Extensive Vanadium System at Kinks South 2023 ANNUAL REP ORT | 9 Review of Operations Figure 5 – Map of the Kinks South target area showing V 2O 5 assay results from Vikings 2023 drilling programmes. Intercepts are reported above a 0.5% V 2O 5 cut-off, with included intercepts (where reported) >0.8% V 2O 5 cutoff. Composite intercepts have been derived for zones>6m width, reporting above minimum cut-off grade and a maximum of 6m consecutive internal waste zones. Intervals reported are downhole lengths and the true widths are not known. VCRC0006 previously reported in ASX release 18 April 2023. Elevated values of Cu, Ni and Co have been intersected, with Cu being the most significant throughout the results received. Copper mineralisation is directly associated with the VTM mineralisation, but also extends below and above the target horizons. Further work is required to understand the significance of the Copper mineralisation and association with the VTM mineralisation, however the Company is encouraged as the presence of these highly anomalous values indicates significant copper is present in the mineralised system and leads to the potential for further enriched zones to be identified. Whilst not the primary commodity of focus for the Project, if sufficient Cu, Ni and Co reports to the tail in the magnetic concentrate process, a sulphide flotation could potentially be undertaken to recover these additional minerals to the benefit of the Project. This process route will be further investigated by the Company. • VCRC0010: 56m at 0.14% Cu, 640ppm Ni & 123ppm Co from 52m 10 | V I K I NG M I NE S LT D • VCRC0012: 37m at 0.10% Cu, 827ppm Ni & 162ppm Co from 99m • VCRC0018: 18m at 0.12% Cu, 812ppm Ni & 178ppm Co from 12m Kinks South Target The completed drilling included seven holes at the Kinks MRE target area for 1,099m, testing the higher-grade western and lower-grade eastern blocks within the Kinks MRE target area. The drilling had two primary objectives: 1. Test for continuity of the target Vanadiferous Titanomagnetite (VTM) horizon in the >0.6km long western block of the MRE, identified in outcrop mapping and seen in historical high-grade drillholes (not yet used to update the MRE) with the objective of extending the mineralised horizons to surface and to the west of the current MRE limits into the Kinks West Extension Exploration Target Estimate (ETE) area. Review of Operations 2. Test the continuity of the VTM in the >0.8km strike lower grade eastern block and determine the style and grade of mineralisation to the east of the interpreted fault that bisects the deposit and identify any marker horizons that may assist in the interpretation of the geology and mineralised offsets as a result of the faulting observed. Elevated values of Cu, Ni and Co have been intersected, with Cu being the most significant throughout the results received. Copper mineralisation is directly associated with the VTM mineralisation and tends to occur within approximately the same intervals as the V 2O 5 . Consistent elevated values for copper have been seen throughout the drilling and ranges between 0.06% to 0.1%. Significant Vanadium Pentoxide (V 2O 5) intercepts from the program include:7 Further work is required to understand the significance of these results and association with the VTM mineralisation, however the Company is encouraged as the presence of these highly anomalous values indicates significant copper is present in the mineralised system and leads to the potential for further enriched zones to be identified • VCRC0021: 40m at 0.75% V 2O 5 (>0.5%) from 202m, including: 27m at 0.83% V 2O 5 (>0.8%) from 203m • VCRC0019: 38m at 0.70% V 2O 5 (>0.5%) from 96m, including: 15m at 0.86% V 2O 5 (>0.8%) from 101m • VCRC0020: 12m at 0.66% V 2O 5 (>0.5%) from 51m, including: 6m at 0.86% V 2O 5 (>0.8%) from 54m • VCRC0019: 42m at 0.08% Cu, 573ppm Ni & 162ppm Co from 97m • VCRC0021: 35m at 0.07% Cu, 609ppm Ni & 188ppm Co from 202m • VCRC0018: 13m at 0.10% Cu, 602ppm Ni & 138ppm Co from 51m Figure 6 – Map of the Kinks Deposit and the Kinks West Extension ETE target area showing V 2O 5 assay results from Vikings 2023 drilling programmes. Intercepts are reported above a 0.5% V 2O 5 cut-off, with included intercepts (where reported) >0.8% V 2O 5 cut-off. Composite intercepts have been derived for zones>6m width, reporting above minimum cut-off grade and a maximum of 6m consecutive internal waste zones. Intervals reported are downhole lengths and the true widths are not known. Note historical drillhole results which have not yet been incorporated into the MRE for the Kinks deposit (orange callouts) and results currently informing the MRE (white callouts). 7 ASX Announcement Viking Mines (ASX:VKA) 24 August 2023 – Viking Hits High-Grade at Kinks – 40m at 0.75% V2O5 2023 ANNUAL REP ORT | 11 Review of Operations Figure 7 – Map of the Fold Nose Deposit showing V 2O 5 assay results from Vikings 2023 drilling programmes. Intercepts are reported above a 0.5% V 2O 5 cut-off, with included intercepts (where reported) >0.8% V 2O 5 cutoff. Composite intercepts have been derived for zones>6m width, reporting above minimum cut-off grade and a maximum of 6m consecutive internal waste zones. Intervals reported are downhole lengths and the true widths are not known. Note historical drillhole results which have not yet been incorporated into the MRE for the Fold Nose deposit (orange callouts) and results currently informing the MRE (white callouts). Fold Nose Deposit The Company drilled eight target areas focused on extending and growing the already substantial Inferred Mineral Resource Estimate (MRE) of 79Mt at 0.64% V 2O 5 estimated at the Fold Nose and Kinks deposits. Drilling at the Fold Nose MRE target area has returned thick high-grade zones of vanadium mineralisation (reported as V 2O 5) both within and external to the current MRE limits. In addition, the results correlate with historical drilling, which has occurred since the last MRE update and has not yet been included into the Mineral Resource (Figure 1). Further, mineralisation remains open to the West. Selected significant V 2O 5 intercepts from the recent program and located within the current Fold Nose MRE limits include. 12 | V I K I NG M I NE S LT D • VCRC0027: 42m at 0.74% V 2O 5 (>0.5%) from 79m, including: 17m at 0.80% V 2O 5 (>0.8%) from 83m & 8m at 0.99% V 2O 5 (>0.8%) from 108m • VCRC0026: 3 8m at 0.72% V 2O 5 (>0.5%) from 138m, including: 26m at 0.82% V 2O 5 (>0.8%) from 140m • VCRC0031: 24m at 0.81% V 2O 5 (>0.5%) from 96m Additional significant Vanadium Pentoxide (V 2O 5) intercepts from the recent program and located outside the current Fold Nose MRE limits include: Review of Operations • VCRC0035: 20m at 0.52% V 2O 5 (>0.5%) from 21m & 24m at 0.71% V 2O 5 (>0.5%) from 201m, including: 14m at 0.87% V 2O 5 (>0.8%) from 202m • VCRC0036: 2 2m at 0.53% V 2O 5 (>0.5%) from 21m, including: 6m at 0.91% V 2O 5 (>0.8%) from 35m • VCRC0038: 14m at 0.58% V 2O 5 (>0.5%) from 4m In addition to the substantial Vanadium grades received, there has also been an associated increase in the Iron and Titanium grades above the MRE average grade of 30.5% Fe and 6.5% TiO2 seen within the high-grade vanadium intercepts (>0.8% V 2O 5). Key intersections include: • VCRC0035: 14m at 39.2% Fe & 8.7% TiO2 from 202m • VCRC0026: 2 6m at 37.2% Fe & 8.0% TiO2 from 140m • VCRC0031: 23m at 35.1% Fe & 7.3% TiO2 from 97m • VCRC0026: 8 m at 42.5% Fe & 8.7% TiO2 from 108m Metallurgical Testwork 36 samples were collected from hole VCRC0006 and submitted to ALS metallurgy for Davis Tube Wash (DTW) testwork with a target P80 75-micron grind to ascertain recovery of Vanadium by magnetic separation methods. High recoveries of 90.9% were achieved for the main interval of 17m at 0.98% V 2O 5 , with the concentrate grading 1.44% V 2O 5 , 60.3% Fe, 10.6% TiO2 , 1.13% SiO2 and 1.72% Al2O3 and a high mass recovery of 59.6%.9 Mass recoveries for all samples averaged 45.7% by weight which is significantly higher than typical titaniferous magnetite deposits (30% Wt). This will lead to improved economics when processing this ore compared to other ores where the yield is typically 30% by weight. 9 The elevated Fe and TiO2 grades are associated with the massive magnetite bands observed in the drilling and there is the opportunity to see an increase in the average grade when correctly domaining these zones within the MRE update. Elevated values of Cu, Ni and Co have been intersected through the drilling at Fold Nose, FNE and FSE, with Cu being the most significant throughout the results received. Copper mineralisation is both directly associated with the VTM mineralisation and tends to occur within approximately the same intervals as the V 2O 5 and in separate horizons outside of the massive VTM mineralisation. • VCRC0035: 2 3m at 0.07% Cu, 531ppm Ni & 149ppm Co from 21m & 12m at 0.07% Cu, 688ppm Ni & 196ppm Co from 201m, & 17m at 0.15% Cu, 622ppm Ni & 106ppm Co from 275m • VCRC0032: 1 5m at 0.08% Cu, 504ppm Ni & 97ppm Co from 53m & 12m at 0.14% Cu, 702ppm Ni & 138ppm Co from 138m Testwork Summary • The DTW testwork has demonstrated that a high-quality magnetic concentrate can be produced from the VTM mineralisation at the Canegrass Project. • Low levels of Al2O3 and SiO2 provide a positive indication that a suitable feed for roasting can be produced to produce a V 2O 5 flake with further testwork required. • High-grade iron values in the concentrate demonstrate the opportunity to investigate producing an iron/magnetite concentrate for direct shipping. • The confirmation of Cu, Ni and Co reporting at various recoveries to the non-magnetic tail confirms future potential to recover this additional battery mineral and that more testwork is required. • The mass yields were typically 45% by weight indicating the samples were fresh. Oxidised or weathered samples would produce much lower yields. • Vanadium recovery remains consistent throughout hole VCRC0006 in zones of massive magnetite. ASX Announcement Viking Mines (ASX: VKA) 4 August 2023 – Viking Achieves Exceptional Vanadium Recoveries up to 99.3% 2023 ANNUAL REP ORT | 13 Review of Operations Farm-In Agreement Status Table 3 below outlines the schedule of the Farm-In Agreement (FIA), as announced on 30 November 2022, and Table 4 details the production and milestone related payments for consideration of the remaining 1% of the Project. As of 31 July 2023, Viking has spent a total of $1.28 million on the Project and initiated completion of the 1st stage of the farm-in and now holds 25% of the Project. The spend in excess of $1 million required for Stage 1 contributes directly towards Stage 2 of the FIA. As such Viking are required to spend $0.72M over the next 12 months to achieve completion of Stage 2 to acquire a further 24% interest in the Project. Table 3 – Farm-In Agreement terms for Viking to acquire up to 99% of the Canegrass Battery Minerals Project. Duration (months) Stage Equity Earned (VKA) Cumulative Equity Earned (VKA) $0 1 0% 0% Complete $225,000 $1,000,000 18 25% 25% Complete Stage 2 earn-in $275,000 $1,000,000 12 24% 49% In Progress Stage 3 earn-in $325,000 $1,000,000 12 26% 75% Stage 4 earn-in $375,000 $1,000,000 12 24% 99% Total $1,250,000 $4,000,000 Item Cash Payment at completion of each stafe Exploration Spend Signing of agreement $50,000 Stage 1 earn-in 54 - Status - Table 4 – Production and milestone related payments in consideration for the remaining 1% of the Canegrass Battery Minerals Project after Viking complete stages 1-4 of the JV Farm-In Agreement. Period $ payment on annual anniversary of 1 st production $ Total Grant of Mining Lease $100,000 $100,000 Years 1-3 $50,000 $150,000 Years 4-6 $75,000 $225,000 Years 7-9 $90,000 $270,000 Years 10 $100,000 $100,000 Total 10 $845,000 ASX Announcement Viking Miens (ASX:VKA) 16 August 2023 – Viking Proceeds to Stage 2 of Canegrass Project Farm-In 14 | V I K I NG M I NE S LT D Review of Operations Ghana Akoase Gold Project At the court hearing held on 24 January 2023, the High Court of Ghana (Commercial Division) made a judgement which determined that the purchasers of the Akoase Project, namely Akoase Resources Limited, BXC Company Ghana Limited and Cheng Yi (Defendants) are liable to pay the full royalty on 50,000 ounces of gold produced at a rate of US$40/oz, totalling US$2M. In addition, costs of Ghana Cedis (GHS) 1.2M were awarded to Vikings subsidiary Resolute Amansie Limited (RAL)11 . Figure 8 – Map showing Viking 100% tenure and tenement under option with Encounter Resources at the First Hit Project. First Hit Gold Project The Company’s First Hit Project (First Hit Project) is located 50km west of Menzies in the Western Australia Goldfields. Limited exploration activity was undertaken on the First Hit Project during the reporting period with the primary focus being on the Canegrass Project. The Company continued with its assessment of the results from the three phases of drilling, totalling 15,000m that had been undertaken at the First Hit Project. As the Company continues with its identification of exploration targets and its review of gold and potential lithium targets, it maintains the tenement in good standing with all statutory reporting being completed and lodged. Interest at a rate of 5% APR was also determined to be calculated on the royalty at the dates which the court ascertained the royalty was due. The dates stipulated by the court are 1 June 2022 for 33,000oz of gold produced (date of the site visit by the independent expert) and 24 January 2023 for 17,000oz of gold produced (date of the ruling of the Court). An entry of judgement received from the Court on 13 March 2023 recorded the Defendants were liable to pay US$2.78M (AUD4.2M) plus costs of GHS 1.2M (AUD160K). RAL received payment of US$713k (AUD1.051M) and GHS1.2M (AUD160K) before the end of the reporting period 12 . The payments are considered by the Company to be respectively towards the outstanding overdue payments and interest from the sale of the Akoase Gold Project, and the court ruled costs of GHS1.2M (AUD160K). The Company continued to pursue the remaining balance of the monies owed using our legal team in Ghana. A settlement payment of US$2.12M (A$3.25M) was received after the end of the reporting period which the company has accepted as full and final payment.13 After the end of the reporting period, a small drill programme was completed on the Emerald Prospect tenement E30/1137. 5 drillholes for 307 metres were drilled targeting northern extensions from the Emerald Gold Mine. No significant intersections were received, however low-level gold anomalism was identified, possibly indicating the northern continuation of the structure. The company is currently planning an exploration programme for the First Hit project tenements which is scheduled to take place in H1 FY24. 11 ASX Announcement Viking Mines (ASX:VKA) 30 January 2023 – VKA Succeeds in Ghana Legal Claim with greater than A$4M Due 12 ASX Announcement Viking Mines (ASX:VKA) 26 April 2023 – Viking Receives $1.14M from Ghana with $3.19M Debt Remaining 13 ASX Announcement Viking Mines (ASX:VKA) 25 September 2023 - Viking Receives $3.3m Final Settlement in Ghana Litigation. 2023 ANNUAL REP ORT | 15 Review of Operations Business Development The Company entered into a significant transaction in the year to acquire the Canegrass Battery Minerals Project. This is a product of ongoing business development activities where the Company seeks to identify, review and asses