Half-Year Report for period ended 31 December 2020

In assessing the Group as a going concern:

·      the Directors anticipate to secure additional working capital through the issue of shares to sophisticated and professional investors approved at the Annual General Meeting of the company as disclosed in note 11 for $650,000;

·      Settlement of the existing convertible note debt of $310,000 via the issue of shares (note 11);

·      Settlement of the litigation accrual of $465,640 and related party payables via the issue of shares and options (note 11); and

·      Raising of additional funds via an anticipated placement or rights issue.

Based on past experience, the Directors are confident that they can raise additional capital if and when required. Based upon cash flow forecasts, the directors are satisfied that the going concern basis of preparation is appropriate, including the meeting of exploration commitments.

Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due.

iii.  Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. These estimates and associated assumptions are based on historical experience and various factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Note 2             Segment reporting

i.    Identification of reportable segments

The Group operates predominantly in the mining industry. This comprises exploration and evaluation of uranium projects. Inter-segment transactions are priced at cost to the Group.

The Group has identified its operating segments based on the internal reports that are provided to the Board of Directors on a monthly basis. Management has identified the operating segments based on geographical location - Mauritania and Sweden, where exploration and evaluation activities take place, and Australia, as the corporate head office.

Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.

Segment assets include the costs to acquire tenements and the capitalised exploration costs of those tenements. Financial assets including cash and cash equivalents, and investments in financial assets, are reported in the Treasury segment.

ii.   Basis of accounting for purposes of reporting by operatingsegments

(1) Accounting policies adopted

Unless stated otherwise, all amounts reported to the board of directors, being the chief decision makers with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.