GWR : Interim Financial Report 31 December 2020

16 March 2021

ASX Announcement

Financial Report - Half-year ended 31 December 2020

GWR Group Limited ("GWR" or the "Company") encloses its interim financial report for the half-year ended 31 December 2020.

Yours faithfully

Mark Pitts

Company Secretary

This announcement has been authorised for release by Mr Mark Pitts, Company Secretary, GWR Group Limited.

GWR Group Ltd	97 Outram Street	PO Box 517	T [phone]	E [e-mail]
ABN 54 102 622 051	West Perth WA 6005	West Perth WA 6872	F [phone]	W www.gwrgroup.com.au

GWR GROUP LIMITED

HALF YEAR REPORT

DECEMBER 2020

Contents

Corporate Directory	2
Directors' Report	3
Consolidated statement of profit or loss and other comprehensive income	5
Consolidated statement of financial position	6
Consolidated statement of changes in equity	7
Consolidated statement of cash flows	8
Condensed notes to the financial statements	9
Directors' declaration	21
Auditor's independence declaration	22
Independent auditor's review report	23

GWR Group Limited • Half Year Report 31 December 2020

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Corporate Directory

Board of Directors:

Gary Lyons (Non-executive Chairman)

Tan Sri Dato' Tien Seng Law (Non-executive Deputy Chairman) Michael Wilson (Executive Director)

Datuk Chin An Lau (Non-executive Director) Kong Leng (Jimmy) Lee (Non-executive Director) Teck Siong Wong (Alternate for Mr Law)

Company Secretary:

Mark Pitts

Principal and registered office:

97 Outram Street

West Perth WA 6005

PO Box 517

West Perth WA 6872

Telephone: [phone]

Facsimile: [phone]

Email: [e-mail]

Website: www.gwrgroup.com.au

Issued capital as at 31 December 2020:

Fully paid ordinary shares: 301,712,472

Quoted Options: 12,833,333

Unlisted Options: 1,000,000

GWR Group Limited • Half Year Report 31 December 2020

Auditors:

Stantons International

Level 2, 1 Walker Avenue

West Perth, WA 6005

Telephone: [phone]

Facsimile: [phone]

Bankers:

National Australia Bank Limited

Level 1, 1238 Hay Street

West Perth, WA 6005

Share registry:

Automic Group

Level 2

267 St Georges Terrance

Perth WA 6000

Telephone: [phone]

Solicitors:

Bennett + Co

Ground Floor BGC Centre

28 The Esplanade

Perth WA 6000

Telephone: [phone]

Facsimile: [phone]

Stock exchange:

Australian Securities Exchange Limited Company code: GWR

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Directors' Report

Your Directors submit their report for the half-year ended 31 December 2020.

Directors

The following persons were Directors of the Company during the half-year and up to the date of this report. Directors were in office for this entire period unless otherwise stated.

Gary Lyons	Non-executive Chairman
Tan Sri Dato' Tien Seng Law	Non-executive Deputy Chairman
Michael Wilson	Executive Director
Datuk Chin An Lau	Non-executive Director
Kong Leng (Jimmy) Lee	Non-executive Director
Teck Siong Wong	Alternate for Mr Law

Company Secretary

Mark Pitts

Simon Borck (resigned 23 July 2020)

Dividends

No amounts have been paid or declared by way of dividend by the Company during the half-year or in the period to the date of this report.

Principal activities

The principal activities of the Company and its subsidiaries during the course of the half-year continued to be the exploration, evaluation and development of its mining projects in Australia.

Operating results

During the period, revenue earned was $742,381 (December 2019: $1,138,085), the decrease from the prior period was principally $875,000 from the sale of unlisted options which occurred as a one-off transaction during the previous half-year.

With exploration and evaluation expenditure of $541,597 (Dec 2019: $1,080,348) the consolidated loss after

income tax for the period was $785,136 (Dec 2019: $1,348,186 loss).

During the period, net cash used in operating activities was $1,102,963 (Dec 2019: $1,727,129), which included $557,008 of exploration and evaluation expenditure. Net cash outflows from investing activities for the period were $412,523 (Dec 2019: inflow of $975,000), comprised mostly of the payments for mining development expenditure of $723,633 (Dec 2019: nil) and receipts from the Mining Rights Agreement of $250,000 (2019: $250,000).

At period end, the Group held $4,411,627 (June 2020: $1,381,137) in cash and cash equivalents.

Review of Operations

Wiluna West - C4 Iron Ore Project

During the half-year, the Group entered into an Alliance Mining Contract with Pilbara Resource Group ("PRG") for

the development of the C4 Iron deposit, which covers all aspects of the operations from pit to port including mining crushing and transport services on a cost-plus basis for Stage 1 of the C4 Iron Deposit.

The PRG Alliance Contract covers just 1 million tonnes and the Group is not required to provide any significant upfront capital expenditure, while retaining a 70% share of profit over the project.

In addition to this, the Group secured access to the Rosslyn Hill Mining Camp for accommodation. The mining camp is located 22km north of the C4 Iron Deposit.

GWR Group Limited • Half Year Report 31 December 2020

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