STRATEGIC REPORT

Molaoi Zinc Project, Greece

Rockfire's exploration activities for 2022 started very positively with an announcement on 8 March 2022 that it had won an Open International Tender for the exploration and exploitation rights to the high-grade Molaoi zinc deposit in Greece. Winning the tender provided Rockfire with 100% ownership of a 30-year licence to explore and mine the Molaoi project, located in the Peloponnese region of Greece. Molaoi is an outstanding high-grade zinc deposit, and Greece offers a low-risk jurisdiction with a modern mining legislation and an active and progressive mining industry making it an attractive destination for the Company.

The Greek State drilled 173 cored diamond holes between 1979 and 1988, largely concentrated in a strike length of 1.5 km long. Multiple, stacked, zinc-bearing layers have been mapped over a total strike length of 7 km, providing enormous upside for additional expansion of zinc mineralisation. Some of the outstanding results from historical drilling at Molaoi include:

·      10.4 m @ 10.63 % Zn, 1.45% Pb, & 62 g/t Ag (AN011, from 79 m)

·      15.0 m @ 11.94 % Zn, 1.96% Pb, & 66 g/t Ag (AN017, from 136 m)

·      7.0 m @ 14.96 % Zn, 2.13% Pb, & 63 g/t Ag (AN028, from 187 m)

·      7.0 m @ 19.17 % Zn, 2.89% Pb, & 76 g/t Ag (B010, from 43 m)

·      9.9 m @ 18.06 % Zn, 2.87% Pb, & 91 g/t Ag (B011, from 184 m)

·      2.8 m @ 26.51 % Zn, 1.87% Pb, & 80 g/t Ag (BG013, from 57 m)

Zinc mineralisation starts at surface and has been extensively drilled down to approximately 220 m, where 5.15 m @ 10.8% Zn, 3.8% Pb, & 37g/t Ag was encountered. Mineralisation remains open at depth.

On 11 April 2022, the Company announced that the historical drill core had been located, photographed, and sampled as part of the Company's technical due diligence of the Molaoi deposit. The core has been stored under cover by the Greek Government and the original sampling intervals have been kept wrapped in plastic. This meant that we have been able to sample the precise interval as that selected in the 1980's. A total of 51 samples of the old core were taken to verify a spread of original assays ranging from 0.9% Zn to a maximum of 36.75% Zn. The samples collected for re-assay were specifically selected to represent a spatial spread to include the entire 1.5 km distance, where most of the historical drilling occurred.

The results of the core re-analysis were announced on 3 May 2022 and demonstrated that the core has successfully verified the high grades reported by previous explorers, with zinc, lead and silver values closely replicating historical analysis. This verification provided a big step towards de-risking the project and provided enormous encouragement for the team to move forward rapidly with resource expansion plans.

The highest individual assay returned was 0.5 m @ 34.1 % Zn, 12.9 % Pb and 474 g/t Ag. Not all the core was sampled and this individual sample is within a broader zone which was not resampled but grades 3 m @ 13.0 % Zn, 4.6 % Pb and 159.8 g/t Ag feature in historical analysis.

The verification process formed part of Rockfire's technical Quality Assurance/Quality Control (QA/QC) which is an important aspect of achieving an inaugural JORC resource estimate. Verification assays of this magnitude and accuracy confirm the significance of the Molaoi project and contribute to overall de-risking of the project.

The Molaoi project took an unexpected but very positive turn when it was announced to the market on 10 May 2022 that re-analysis of the historical drill core had discovered the presence of one of the world's critical metals, germanium, at Molaoi.

Critical metals are metals deemed vital for world economies to continue to provide technology. The supply of germanium is largely at risk due to geological scarcity. The European Union Environmental Agency includes germanium in the top 20 raw materials which have been identified by the European Commission as being critical metals, owing to risk of supply shortages.

The weighted average grade of the 51 samples collected during the re-analysis of core is 51 grams per tonne (g/t) Ge, with a peak value of 197 g/t Ge. 41% of samples returned germanium values above 50 g/t Ge.

Germanium is used in the manufacture of everyday technology including mobile phones, electronics, solar cells, camera lenses, satellites, computer screens, as well as steering and parking sensors for vehicles. Germanium is also used in numerous military applications including weapons-sighters (scopes) and infrared night vision.

A maiden inferred mineral resource estimate for Molaoi was announced on 23 May 2022. The mineral resource surpassed all expectations and demonstrated the quality and potential of the project. The resource is reported in accordance with the Joint Ore Reserve Committee ("JORC") Australasian Code (2012) for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

The inaugural JORC resource estimation for Molaoi delivered an inferred mineral resource of 2.3 million tonnes @ 11 % ZnEq. for 250,000 tonnes of ZnEq. Using a 4% low-grade cut, individual elemental grades are 9.4 % Zn, 1.7 % Pb and 47 g/t Ag. This results in 210,000 tonnes of zinc, 39,000 tonnes of lead, and 3.5 million ounces of silver being included in the maiden resource. Only 1,400 m of a potential strike extent of 7 km has been included in the resource and the resource remains open at depth and along strike. In addition to this, multiple, parallel mineralised lodes are not included in the resource, and are yet to be fully tested. The presence of parallel lodes may add materially to the resource in future estimates.

Metallurgical flotation test work completed in 1984 resulted in 96% zinc recovery, 92% lead recovery and 91% silver recovery into a bulk concentrate. These recovery factors were applied to the mineral resource to calculate the resulting zinc equivalent tonnes and grade.

The top 40 m from surface were excluded from the mineral resource as Rockfire is planning underground mining only to minimise social and environmental impacts. Germanium was not included in the maiden resource estimate owing to limited quantitative analysis.

Management considers Molaoi to be an outstanding base metal project, which we hope will grow to a globally significant scale. The quality of the grades and quantity over the first 1,400 m strike extent is testimony to the potential size of Molaoi, particularly if our planned exploration along strike proves to be successful.

Geological mapping and rock sampling throughout the Molaoi licence commenced on 17 August 2022, with an announcement on the same day detailing the initial work. Diamond drilling was being planned to target the expansion of the maiden JORC resource.

A Greek exploration geologist and a local mining engineer were appointed in late July 2022 to conduct exploration activities and prepare for drilling. A lease was signed for the Company to lease a core yard and field operations office, both located on the exploration licence and close to the planned drilling at Molaoi. Further, as part of the grant of the tender to Rockfire, a lease of a 10-acre (4.06 Ha) parcel of surface land at Molaoi was granted to the Company. The private lease transferred to Rockfire includes the portal and decline to the historical underground mine, developed during the late 1980s.

On 25 August 2022, Rockfire announced that preliminary metallurgical tests from Molaoi have returned excellent recoveries and concentrate grades for zinc, silver, lead and germanium. Copper and gold have also reported to the concentrates, adding high potential value to the future economics of the project. The metallurgical recoveries and grades attained in this round of tests significantly reduce process recovery and marketing risk. Metallurgical test work is being supervised by the Company's metallurgical consultants, BHM Process Consultants Pty. Ltd. ("BHM") in Perth, Western Australia, using core drilled by the Greek Government.

Results of the metallurgical tests report excellent recoveries of zinc (89%) and lead (74%). Commercially saleable grades of zinc (57% Zn), silver (856 g/t Ag), lead (63.6% Pb), germanium (117 g/t Ge), copper (2.62% Cu) and gold (0.52 g/t Au) are readily achieved at Molaoi. Two flotation circuit tests were conducted, with zinc/germanium (Concentrate 1) and lead/silver/copper/gold (Concentrate 2).

First-pass metallurgical recovery of zinc is 89%, with this figure likely to increase with more detailed tests. The performance of the zinc system is reported by BHM as "excellent", with a product grade of 57% Zn concentrate achieved in a single pass through a 3-stage flotation circuit. This is well above the desired product grade of 50% Zn contained for a saleable concentrate.

Germanium reports to the zinc concentrate with a commercially competitive grade of 117 g/t Ge and is expected to be recovered as part of the zinc concentrate. This is expected to be a valuable credit in the concentrate.

First-pass metallurgical recovery of lead is 74%, with this figure also expected to increase with more detailed test work. The lead circuit recovery is at a greatly over-concentrated value of 63.6% Pb concentrate achieved in a single pass through a 3-stage circuit configuration. This also far exceeds the market requirement of 40% - 50% Pb contained for a saleable concentrate.

Silver recovery is 85.6% from the rougher tails, with 15.2% of the silver reporting through to the lead concentrate at a grade of 856 g/t Ag, whilst copper and gold both reported to the lead concentrate with grades of 2.62% Cu and 0.52 g/t Au.

BHM expects that these recovery figures may be conservative as there is much metallurgical development and many optimisation tests still to occur on the project. More definitive testing will be initiated using core obtained from diamond drill core planned for later in the year. This work will include crushing, milling and abrasion work indices.

The Company announced on 2 November 2022 that the concrete entrance to the old underground portal and decline has now been exposed by excavation. Discussions held with people closely associated with the mining activity in the 1980s indicate that the mine was constructed with the use of steel and timber support beams. It's therefore possible that the decline remains open and clear beyond the portal. The decline was constructed using a 3.5m x 3.0m profile and varies in slope angle between an initial slope of 1:12 and steepening to a 1:7 rate of decline lower in the decline.

Access agreements were signed in preparation for our initial drill programme which is planned to consist of 4 geotechnical holes. These holes are designed to gather information on ground conditions to feed into underground mine design. These initial holes will also provide material for crushing and grinding work indexes and uniaxial compressive strength ("UCS") tests to measure the ability of the rock to withstand stress once mining commences.

Rockfire was delighted to announce on 21 November 2022, that geotechnical drilling was underway in Greece. An initial 4 holes (for a total of 840m) are planned to be drilled within the main mineral resource of 2.3Mt @ 11% zinc equivalent. These initial 4 geotechnical holes are expected to be followed by more holes to gather geotechnical information throughout the 1.5km of the resource and beyond. The average depth of drilling is 210m d, with the deepest hole planned to reach 270m below surface.

As part of the process to reach commercial extraction, the geotechnical tests for which this core will be used form a critical stepping-stone on the path to feasibility. The first holes are designed to provide the following analytical and geotechnical outcomes:

·      Confirmatory analysis to ensure correlation with previous assay results;

·      To gather geotechnical orientation and structural data to refine the interpretation of the orebody at Molaoi;

·      To obtain core for UCS tests. These tests inform our mining engineers of rock strengths when loads are applied/reduced in an actual mining scenario; and

·      To obtain sufficient core for crushing and grinding work indices. These tests determine the energy (and therefore cost) of crushing and grinding the ore to a powder and will form a key component of a feasibility study into the economics of the project.

High-grade results of rock samples taken from historic mullock (waste) dumps and surface outcrops were announced to the market on 28 November 2022. Zinc up to 25% Zn, lead up to 16.8% Pb and silver up to 498g/t Ag were returned in rocks from waste dumps and outcrop around old mine workings.

The highest results obtained are from the "Kalamaki" prospect, where the JORC resource of 2.3Mt @ 9.4% Zn, 1.7% Pb and 47g/t Ag is located. 9.3% Zn has been found in old workings at the "Fournos" prospect, approximately 1.5km north of the JORC mineral resource. Previous drilling by the Greek Government has encountered 3m @ 8.4% Zn in diamond drill core at Fournos.

Zinc at 15.8% Zn has been found in old workings at the "Mesovouni" prospect, approximately 1.0km northwest of the JORC resource. Previous drilling by the Greek Government had encountered 3m @ 6.7% Zn in diamond drill core at Mesovouni. Similarly, 8.7% Zn, 5.2% Pb and 161g/t Ag has been found in outcrop to the north of the "Gkagkania" prospect, approximately 1.5km northwest of the JORC resource. Previous drilling by the Greek Government had encountered 7m @ 10.2% Zn in diamond drill core at Gkagkania.

Being from the spoils (waste) around the opening of old workings, it is testimony to the high grades of zinc, lead and silver encountered during historical mining. Several high-grade results were obtained from outcrops with no historical mining. This emphasises the quality of targets to the north and northwest of the main resource area.

On 12 December 2022, the market was informed that massive sulphides had been encountered in drilling at the predicted depth and position.

Both massive and semi-massive sulphides were encountered in Rockfire's first drill hole at a depth and position predicted from historical drill data. Between 1979 and 1988, 173 diamond drill holes were drilled at Molaoi, as well as metallurgical tests, a feasibility study and the development of a portal and decline to the orebody. The

Company's exploration and exploitation permit allows Rockfire to capitalise on this excellent work by the Greek Government to help monetise the project in a timely manner.

Rockfire's first hole at Molaoi (MO_GTK_001) lies between historical drill holes and will serve to provide core for geotechnical test work to feed into a feasibility study. Massive sulphides occur between 130m and 134m, with semi-massive and disseminated sulphides continuing for a further 11m, down to 145m. More disseminated sulphides have also been encountered at 160m depth, which may represent a parallel lode beneath the main lode.

It is expected that sufficient mineralised core will be obtained to commence crushing and grinding work index studies. These studies determine the energy (and therefore cost) required to crush and grind the mineralised rock. The results from these studies are parameters required for technical and financial feasibility studies, which Rockfire plans to commence as soon as possible.

Lighthouse, Queensland Australia

The Lighthouse tenement includes the Plateau gold deposit, where an Inferred JORC resource has been drilled by Rockfire of 3.9 million tonnes @ 1.1 g/t Au and 6.4 g/t Ag (0.5g/t cut-off), for 131,302 ounces of gold and 800,000 ounces of silver. The tenement also comprises the Cardigan Dam, Split Rock and Double Event prospects.

On 11 April 2022, the Company announced that 557 soil samples had been collected from four sites within the Lighthouse tenement and results of this work were released to the market on 21 June 2022. Soil sampling returned strongly elevated gold results which outline a readily accessed and untested target at least 200 m long. The target is outside the area included in the JORC resource. Gold-in-soil values as high as 0.67g/t were encountered, as well as 2.3g/t silver. The soil anomaly is open along strike and extends beyond the limit of the sampling grid. Rockfire's management believes that the soil anomaly may present a target based on high-grade gold-in-rock samples as well.

Ongoing mapping and rock sampling at Plateau identified multiple new targets close to the drilled JORC gold resource and an announcement on 2 August 2022 confirmed that numerous faults have been identified. These faults are believed to carry fluids rich in gold and are interpreted as structural controls on gold mineralisation, including the Central Breccia and Eastern Breccia resources at Plateau. A new structural interpretation was completed which highlighted areas where dilation and rotation of the rocks has occurred. This provides open space within the rocks for heated and mineralised fluids to percolate through and deposit gold, silver and other metals.

Seventeen (17) rock samples collected during June 2022 outline two of the new exploration targets with results including 10.7 g/t Au, 3.2 g/t Au and 2.3 g/t Au. Twenty-nine percent (29%) of the rock samples returned results above 0.5 g/t Au, with more than 80% of results being above 0.1 g/t Au.

Rockfire continued to target additional near-surface, open-cut gold at Plateau. Soil sampling, rock sampling, geological mapping and geophysics confirm the presence of additional gold targets close to the edges of an intruded breccia (shattered rock), where the previously drilled 131,302 ounces of gold resource is positioned.

The new targets combined could add material ounces to the already-defined gold resources. With five new targets showing similar surface grades and dimensions to those in the two resource areas, it is realistic to target multiples of the resources already drilled.

Copperhead Porphyry Project, Queensland Australia

At the start of the reporting period, Rockfire had recently completed a diamond drilling programme and an update to the market was provided on 20 January 2022. This update included assay results for the third diamond drill hole (BCH003), which returned 370 m @ 0.20 % CuEq. from 57 m. Copper veins were observed throughout the entire 429 m long drill hole. The drill hole finished in copper-bearing veins.

Within this broad zone a higher-grade interval of 50 m @ 0.35 % CuEq. occurs from 259 m downhole depth and a more intensely veined interval of 22 m @ 0.41 % CuEq. has been intersected from 271 m downhole depth. Hole BCH003 significantly expanded copper mineralisation by 100 m directly east of hole BCH001 (501m @ 0.14% CuEq.), and 200 m north of hole BCH002 (357m @ 0,11% CuEq.), resulting in another significant increase in the footprint of the drilled copper-bearing area.

Hole BCH003 is, to date, the highest-grade hole drilled at Copperhead and long intervals including 62m @ 0.3% CuEq. is most encouraging. The grade variability is typical of large porphyry copper systems but importantly, the footprint of copper mineralisation is expanding with each hole. This third hole significantly expands the volume, and therefore tonnage, of the deposit.

Based on drilling 5 deep diamond holes at Copperhead, Rockfire announced a maiden inferred JORC mineral resource of 64 million tonnes @ 0.19% CuEq. for 120,000 tonnes of copper equivalent on 21 March 2022.

The mineral resource remains open to the north, east, west and at depth leaving scope for significant further resource increases. The extent and tenor of mineralisation at Copperhead have yet to be fully tested. Copper mineralisation starts at surface and continues for at least 400 m vertically below surface. With continued exploration success and expansion of the resource, Copperhead demonstrates potential to form a low-cost, bulk-tonnage, open-cut mining scenario.

Copper Dome

On 11 April 2022, it was announced that a landowner access and compensation agreement had been signed with the landowner at the Copper Dome porphyry project in Queensland.

A three-dimensional interpretation of an airborne helicopter-supported magnetic survey had been commissioned at the end of the previous reporting period to determine the characteristics of the magnetic response at depth. This 3D interpretation highlighted two large, strongly magnetic bodies lying approximately 500m below the surface. These bodies were both characterised by long intervals of low-grade copper and gold immediately above them which had been discovered in historical RC drilling.

Copper Dome remains a highly prospective porphyry copper/gold target for Rockfire, but no further work was completed during the 2022 calendar year.

KEY PERFORMANCE INDICATORS (KPI's)

The Board monitors KPI's, which it considers appropriate for a group at Rockfire's stage of development.

Financial KPI's

During the year, the Board monitored the following KPI's:

·      Cash flow and working capital;

·      Short-term and long-term cash flow models, which include variance analysis from original budgets.

RISK MANAGEMENT

The Board regularly reviews the risks to which the Group is exposed and ensures through its meetings and regular reporting that these risks are minimised as far as possible.

The principal risks and uncertainties facing the Group at this stage in its development are

Exploration risk

The Group's business has been primarily mineral exploration and evaluation which are speculative activities and, whilst the Directors are satisfied that good progress is being made, there is no certainty that the Group will be successful in the definition of economic mineral deposits, or that it will proceed to the development of any of its projects or otherwise realise their value.

The Group aims to mitigate this risk when evaluating new business opportunities by targeting areas of potential where there is at least some successful historical drilling or geological data available.

Resource risk

All mineral projects have risk associated with defined grade and continuity. Mineral reserves and resources are calculated by the Group in accordance with accepted industry standards and codes but are always subject to uncertainties in the underlying assumptions which include geological projection and commodity price assumptions.

The Group reports mineral resources and reserves in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code'). The JORC Code is a professional code of practice that sets minimum standards for public reporting of mineral exploration results, mineral resources and ore reserves. Further information on the JORC Code can be found at www.jorc.org.

Environmental, landowner and native title risk

Exploration and development of a project can be adversely affected by environmental legislation and the unforeseen results of environmental studies carried out during evaluation of a project. Once a project is in production, unforeseen events can give rise to environmental liabilities.

Access and compensation agreements are required to be negotiated between the Company and the landowner at each project. Queensland legislation provides an agreement template which may be modified by the Company and the landowner. The Company cannot guarantee landowners will provide access, regardless of existing laws in place to ensure such access is negotiated on fair terms.

Where native title exists, the Company obtains the necessary approvals for access and working programmes according to legislation and the Company's environmental, social and governance ("ESG") programme.

The Group is currently in the exploration stage. Any disturbance to the environment during this phase is minimal and is rehabilitated in accordance with the prevailing regulations of the countries in which we operate.

Financing and liquidity risk

The Group has an ongoing requirement to fund its activities through the equity markets and in the future to obtain finance for project development. There is no certainty such funds will be available when needed. To date, Rockfire has managed to raise funds primarily through equity placements despite the very difficult markets that currently exist for raising funding in the junior mining industry.

Political risk

All countries carry political risk that can lead to interruption of activity. Politically stable countries can have enhanced environmental and social permitting risks, risks of strikes and changes to taxation whereas less developed countries can have in addition, risks associated with changes to the legal framework, civil unrest and government expropriation of assets.

Bribery risk

The Group has adopted an anti-corruption policy and whistle blowing policy under the Bribery Act 2010. Notwithstanding this, the Group may be held liable for offences under that Act committed by its employees or subcontractors, whether or not the Group or the Directors had knowledge of the committing of such offences.

Insurance coverage

The Group maintains a suite of insurance coverage that is appropriate for the Group and Company. This is arranged via a specialist mining insurance broker and coverage includes public and products liability, corporate and professional, travel, property and medical coverage and assistance while Group employees and consultants are travelling on Group business. This is reviewed at least annually and adapted as the Group's scale and nature of activities changes.

Internal controls and risk management

The Directors are responsible for the Group's system of internal financial control. Although no system of internal financial control can provide absolute assurance against material misstatement or loss, the Group's system is designed to provide reasonable assurance that problems are identified on a timely basis and dealt with appropriately.

In carrying out their responsibilities, the Directors have put in place a framework of controls to ensure as far as possible that ongoing financial performance is monitored in a timely manner, that corrective action is taken and that risk is identified as early as practically possible. The Directors review the effectiveness of internal financial control at least annually.

The Board continuously monitors and upgrades its internal control procedures and risk management mechanisms and assesses both for effectiveness during the annual review. This process enables the Board to determine if the risk exposure has changed during the year. In order to assist the risk management function, the Company has a risk management policy, which is reviewed annually. The Executive Directors report regularly to the Board on the management of material business risks.

The Board, subject to delegated authority, reviews capital investment, property sales and purchases, borrowing facilities, guarantees and insurance arrangements.

CORPORATE SOCIAL RESPONSIBILITY

The Board takes account of the significance of social, environmental and ethical matters affecting the business of the Group. At this stage in the Group's development the Board has not adopted a specific policy on corporate social responsibility as it has a limited pool of stakeholders other than its shareholders. Rather, the Board seeks to protect the interests of Rockfire's stakeholders through individual policies and through ethical and transparent actions.

SHAREHOLDERS

The Directors are always prepared, where practicable, to enter into dialogue with shareholders to promote a mutual understanding of objectives and outcomes. The Annual General Meeting provides the Board with an opportunity to informally meet and communicate directly with investors.

ENVIRONMENT

The Board recognises that the Group's principal activity, mineral exploration, has the potential to impact on the local environment. To date, activities at the various projects have been limited to surveying and drilling activities and the Group does comply with local regulatory requirements with regard to environmental compliance and rehabilitation. The impact on the environment of the Group's activities has the potential to increase should our projects move into a development or production phase. This is currently assessed through baseline environmental studies that are being undertaken and identifying resources needed to manage environmental compliance in the future.

Given the Group's size and scale it is not considered practical or cost effective to collect and report data on carbon emissions.

EMPLOYEES

The Group engages its employees to understand all aspects of the Group's business and seeks to remunerate its employees fairly, being flexible where practicable. The Group gives full and fair consideration to applications for employment received regardless of age, gender, colour, ethnicity, disability, nationality, religious beliefs, transgender status or sexual orientation. The Group takes account of employees' interests when making decisions and welcomes suggestions from employees aimed at improving the Group's performance.

The Group now operates in Queensland, Australia and Greece, where it recruits locally as many of its employees and contractors as practicable..

SUPPLIERS AND CONTRACTORS

The Group recognises that the goodwill of its contractors, consultants and suppliers is important to its business success and seeks to build and maintain this goodwill through fair dealings. The Group has a prompt payment policy and seeks to settle all agreed liabilities within the terms agreed with suppliers. The Company encourages best practice from suppliers and contractors with regards to environmental issues.

HEALTH AND SAFETY

The Board recognises that it has a responsibility to provide strategic leadership and direction in the development of the Group's health and safety strategy in order to protect all of its stakeholders. The Group does not have a formal health and safety policy at this time. This is re-evaluated as and when the Group's nature and scale of activities change.

ENGAGEMENT WITH STAKEHOLDERS

The Board of Rockfire is proud of the high standard of corporate governance it has established and maintains. The Board makes a conscious effort to understand the interests and expectations of the Company's stakeholders, and to reflect these in the choices it makes in its effort to create long-term sustainable success for our business.

Engagement with our shareholders and wider stakeholder groups, including employees, landowners, suppliers, contractors and government agencies, plays a central role throughout Rockfire's business. The Board is aware that each stakeholder group requires a specific and unique engagement approach in order to create and maintain effective, sustainable and mutually beneficial relationships.

The Board's understanding of various stakeholder interests is factored into programme planning, boardroom discussions, strategy and budgets to assess potential long-term impacts of our business on each group, and how we might best address stakeholder expectations from our business.

Throughout this Annual Report, we provide examples of how we:

·      Take into account the likely consequences of long-term decisions;

·      Foster relationships with stakeholders;

·      Understand our impact on our local communities and the environment; and

·      Demonstrate the importance of behaving responsibly.

This engagement with stakeholders section forms our section 172 statement and should be read in conjunction with other information included in this Annual Report. Section 172 of the Companies Act 2006 requires the Directors to act in a way that they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole, taking into account the factors listed in section 172.

The Directors continue to observe, plan for, and communicate the interests of the Company's stakeholders, including the impact of its exploration activities on local communities and the environment. Acting in good faith and fairly between members, the Directors consider what is most likely to promote the success of the Company for its members in the long term.

The Board regularly reviews its principal stakeholders and how it engages with each. Stakeholder expectations are brought into the boardroom throughout the annual cycle through information provided by management and by direct engagement with stakeholders themselves. The priority of each stakeholder group may increase or decrease, depending on the degree of impact any decision may have on any particular stakeholder group.  The Board therefore seeks to consider the impact and priorities of each stakeholder group during its discussions and as part of its decision making.

The table below sets out the key stakeholder groups, their interests and how Rockfire has engaged with them over the reporting period. However, given the importance of stakeholder focus, long-term strategy and reputation, these themes are also discussed throughout this Annual Report.

On behalf of the Board

David Price, Chief Executive Officer

6 June 2023