Mithril Resources : Half Year Report December 2021

onlyMithril Resources Limited

ABN 30 099 883 922

useHalf-Year Report - 31 December 2021 personalFor

Mithril Resources Limited Corporate directory

31 December 2021

Directors

onlyCompany secretary Registered office

Principal place of business

useShare register

personalAuditor

Solicitors

Bankers

Stock exchange listing

Website

For

Mr Garry Thomas (Non-Executive Director)

Mr John Skeet (Managing Director)

Mr Stephen Layton (Non-Executive Director)

Ms Claire Newstead-Sinclair

Vistra Melbourne

Level 4

100 Albert Road

SOUTH MELBOURNE VIC 3205

Vistra Melbourne

Level 4

100 Albert Road

SOUTH MELBOURNE VIC 3205

Computershare Investor Services Pty Ltd

Level 5, 115 Grenfell Street

ADELAIDE SA 5000

Nexia Melbourne Audit Pty Ltd

Level 12, 31 Queen Street

MELBOURNE VIC 3000

Quinert Rodda & Associates

Level 6, 400 Collins Street

MELBOURNE VIC 3000

National Australia Bank

800 Bourke Street

MELBOURNE VIC 3008

Mithril Resources Limited shares are listed on the Australian Securities Exchange (ASX code: MTH)

www.mithrilresources.com.au

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Mithril Resources Limited Directors' report

31 December 2021

The directors present their report, together with the financial statements, on the consolidated entity (referred to

hereafter as the 'consolidated entity') consisting of Mithril Resources Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.

onlyJ hn Skeet Stephen Layton

Directors

The following persons were directors of Mithril Resources Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Garry Thomas

Dudley Leitch (resigned 7 July 2021)

Principal activities

During the financial half-year the principal continuing activities of the consolidated entity consisted of:

●	to carry out exploration of mineral tenements, both on a joint venture basis and in its own right;
●	to continue to seek extensions of areas held and to seek out new areas with mineral potential; and
●	to evaluate results achieved through surface sampling, drilling and geophysical surveys carried out.
use
There has been no significant changes in the nature of those activities during the half-year.
Review of operations
personal

The loss for the consolidated entity after providing for income tax amounted to $447,748 (31 December 2020: $1,198,987). Refer to page 3 for detailed comments on operations.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial half-year.

Events after the reporting period

No matters or circumstances have arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out after this directors' report.

ForThis report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors:

___________________________

John Skeet Managing Director

15th March 2022

Melbourne

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Mithril Resources Limited

Review of Operations

31 December 2021

only				DECEMBER 2021 HALF YEARLY ACTIVITIES REPORT
Highlights - Copalquin Gold-Silver, Mexico
• A high-grade maiden JORC indicated and inferred mineral resource estimate (MRE) was delivered on
	schedule for the first drill target area of El Refugio-La Soledad in the Copalquin District, Mexico
• The maiden MRE, delivered within our first 14 months of drilling, highlights the high-quality
use	gold and silver resource potential for the Copalquin District
	o	2,416,000 tonnes @ 4.80 g/t gold, 141 g/t silver for 373,000 oz gold plus 10,953,000 oz silver
			(Total 529,000 oz AuEq*) using a cut-off grade of 2.0 g/t AuEq*
		o 28.6% of the resource tonnage is classified as indicated
				Tonnes	Tonnes	Gold	Silver	Gold	Gold	Silver	Gold
				(kt)	(kt)	(g/t)	(g/t)	Equiv.*	(koz)	(koz)	Equiv.*
								(g/t)			(koz)
		El Refugio	Indicated	691	5.43	114.2	7.06	121	2,538	157
				Inferred	1,447	4.63	137.1	6.59	215	6,377	307
		La Soledad	Indicated	-	-	-	-	-	-	-
				Inferred	278	4.12	228.2	7.38	37	2,037	66
		Total		Indicated	691	5.43	114.2	7.06	121	2,538	157
personal				Inferred	1,725	4.55	151.7	6.72	252	8,414	372
			TOTAL	2,416	4.80	141	6.81	373	10,953	529
			Mineral resource estimate El Refugio - La Soledad using a cut-off grade of 2.0 g/t AuEq*

Highlight drill Results received during the half year

o 18.67m @ 9.64 g/t gold, 278.8 g/t silver from 144.0m, (CDH-094)including

		9.30m @ 17.9 g/t gold, 482.2 g/t silver from 148.89m
For	o 2.00m @ 9.90 g/t gold, 122 g/t silver from 286.0m (CDH-085),including
	1.00m	@ 19.0 g/t gold, 209 g/t silver from 286.0m
o	12.29m @ 4.08 g/t gold, 85.2 g/t silver from 250.71m (CDH-086),including
		1.50m	@ 8.98 g/t gold, 137 g/t silver from 250.71m, and including
		2.00m	@ 15.35 g/t gold, 333 g/t silver from 258.0m
	o 8.90m @ 0.97 g/t gold, 5.53 g/t silver from 252.1m (CDH-087),plus
		3.00m	@ 3.71 g/t gold, 79.0 g/t silver from 349.0m
	o 8.85m @ 7.2 g/t gold, 335 g/t silver from 312.15m (CDH-084),including
		2.50m	@ 18.22 g/t gold, 583 g/t silver from 317.0m, plus
		2.10m	@ 2.05 g/t gold, 73.6 g/t silver from 324.9m, plus
		1.00m	@ 1.16 g/t gold, 36.0 g/t silver from 394.0m

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Mithril Resources Limited

Review of Operations

31 December 2021

• High-gradeintercepts in CDH-079 and CDH-080 extended the El Refugio high-gradegold-silver 'clavo' 80m further east:

	o 12.4m @ 7.60 g/t gold, 332 g/t silver from 86.6m (CDH-079),including
	4.19m @ 18.1 g/t gold, 810 g/t silver from 90.0m.
	o 6.11m @ 5.08 g/t gold, 197 g/t silver from 112.19m (CDH-080),including
	2.30m @ 9.47 g/t gold, 399 g/t silver from 116.0m.
•	Bonanza grade intercept in CDH-077 extended the El Refugio high-gradegold-silver 'clavo' 160m further
only	down dip:
o 8.26m @ 80.3 g/t gold, 705 g/t silver from 468.34m (CDH-077),including
use	6.26m @ 106 g/t gold, 913 g/t silver from 468.34m, including
0.77m @ 837 g/t gold, 6,680 g/t silver from 471.63m
•	Continued development of the El Refugio 'clavo' with further high-grade intercepted:
	o 2.70m @ 13.8 g/t gold, 82.9 g/t silver from 300.3m (CDH-075),plus
	4.25m @ 10.9 g/t gold, 364 g/t silver from 307.05m, including
	2.65m @ 16.3 g/t gold, 414 g/t silver from 315.0m, plus
personal•	2.00m @ 1.02 g/t gold, 17.5 g/t silver from 315.0m, plus
4.50m @ 0.84 g/t gold, 34.8 g/t silver from 358.5m
Mexican value added tax refunds continued throughout the half year (plus a further ~A$180,000 received
•	Metallurgical and mining study work commenced for El Refugio resource
•	Targets expanded for the district scale Copalquin mining district 2022 exploration program
Highlights - Corporate
•	Appointment of Ms Claire Newstead-Sinclair as Company Secretary effective 1 December 2021
•	A$3.3m share placement (before costs) at A$0.015 per share
•	Binding term sheet for sale of 90% interest in Limestone Well tenements. Sale Agreement to be
	completed next quarter with cash proceeds of A$500,000 (ASX Announcement 12 October 2021)
•	Cash at bank A$1.828m as of 31 December 2021 (excluding A$500,000 from Limestone Well sale)

For	during January 2022)
_________

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide the half yearly activities report for its Copalquin Gold Silver Project in Mexico for the period ending 31 December 2021.

Copalquin District, Mexico

In November 2021, the Company delivered its maiden JORC mineral resource estimate (MRE) as scheduled and meeting the expectation at this early stage in the exploration of the Copalquin Mining District. (ASX Announcement 17 November 2021).

The maiden MRE is high-grade gold and silver and with 28% of the MRE tonnage in the indicated category. This is an excellent result from our first 14 months of drilling and demonstrates the district potential to deliver high-quality gold and silver resources as the exploration work progresses.

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