Shumba Energy : AUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTS AND INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 3O JUNE 2021

REGISTERED OFFICE:	TRANSFER SECRETARY	AUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTS
Suite 204, Grand Baie	Central Securities Depository Botswana	FOR THE YEAR ENDED 3O JUNE 2021
Chemin Vingt Pieds	Plot 64511, Fairgrounds	Company Registration - 111905 C1/GBL
Grand Bay 30529	Private Bag 0417
Republic of Mauritus	Gaborone Botswana

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 12 MONTHS ENDED 30 JUNE 2021

	GROUP - 12 months ended		COMPANY - 12 months ended
	30-Jun-21	30-Jun-20		30-Jun-21	30-Jun-20
	USD	USD		USD	USD
Revenue	661 635	618 933		-	-
Cost of sales	(568 077)	(499 749)		-	-
Gross Profit	93 558	119 184		-	-
Other income/(loss)	33 400	558 476		-	(5 963)
Gain on bargain purchase	-	4 977 507		-	-
Operating expenses	(617 848)	(2 025 091)		(130 998)	(122 046)
Employee costs	(200 863)	(461 925)		-	-
Depreciation, amortisation and impairment expenses	-	(8 004)		-	-
Operating loss	(691 753)	3 160 147		(130 998)	(128 009)
Finance income	609	1 831		613 012	746 942
Finance cost	(505 306)	(455 047)		(481 056)	(432 401)
Profit (loss) for the period	(1 196 450)	2 706 931		958	186 532
Taxation	(339)	(1 054)		-	-
Profit (loss) from continuing operations	(1 196 789)	2 705 877		958	186 532
Other comprehensive income
Available-for-sale financial assets adjustment	-	-
Exchange difference on translating foreign operations	2 447 049	(446 978)
		(446 978)
Total comprehensive profit (loss) for the period	1 250 261	2 258 899		958	186 532
Profit (loss) attributable to:
Owners of the parent	(1 063 503)	3 216 395		958	186 532
Non-controlling interest	(133 286)	(510 518)
	(1 196 789)	2 705 877		958	186 532
Basic earnings per share (in thebe)	0.003510	0.01102
Number of Shares	292 617 333	291 819 493
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

ASSETS	GROUP			COMPANY
	30-Jun-21	30-Jun-20		30-Jun-21	30-Jun-20
Non-Current Assets	BWP	BWP		BWP	BWP
Property, plant and equipment	427 994	403 116		-	-
Goodwill	2 745 662	2 745 662
Exploration assets	15 491 795	15 122 560		-	-
Right of Use Asset	385 846	372 864
Investment in subsidiary	-	-		2 030 743	2 030 743
Loans	-	-		19 542 017	18 929 005
Financial Assets	99 803	93 168
Current Assets
Receivables and prepayments	2 705 646	88 297		1 808 378	1 783 815
Cash and cash equivalent	18 159	108 567		52	205
Total Assets	21 874 905	18 934 234		23 381 190	22 743 768
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the parent
Stated capital (including advance against stated capital)	17 770 830	17 621 778		17 770 830	17 621 778
Reserves	2 118 340	28 772		-	-
Accumulated loss	(10 440 370)	(9 313 206)		(1 928 383)	(1 929 341)
Non-controlling interest	2 984 390	2 760 194		-	-
Total equity	12 433 190	11 097 538		15 842 447	15 692 437
Non-Current Liabilities
Loan notes	3 709 731	3 282 272		3 709 731	3 282 272
Finance Lease Liability	405 978	378 122
Deferred consideration	1 500 000	1 500 000		1 500 000	1 500 000
	5 615 709	5 160 394		5 209 731	4 782 272
Current Liabilities
Trade and other payables	3 824 613	2 675 248		2 329 012	2 269 059
Current tax payable	1 393	1 054		-	-
Total Current Liabilities	3 826 006	2 676 302		2 329 012	2 269 059
Total Liabilities	9 441 715	7 836 696		7 538 743	7 051 331
Total Equity and Liabilities	21 874 905	18 934 234		23 381 190	22 743 768

-

-

-

-

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 12 MONTHS YEAR ENDED 30 JUNE 2021

	GROUP			COMPANY
	30-Jun-21	30-Jun-20		30-Jun-21	30-Jun-20
	BWP	BWP		BWP	BWP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations	(1 673 916)	5 583 017		36 348	(324 447)
Interest Income	609	1 831		-	746 942
Finance Costs	(505 306)	(455 421)		(613 012)	(432 401)
Tax paid	-	(1 981)		-	-
Net cash from operating activities	(2 178 613)	5 127 446		(576 664)	(9 906)
Net cash from investing activities	5 434	(5 632 799)		-	-
Net cash from financing activities	99 174	(13 553)		576 511	-
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENT	(2 074 005)	(518 906)		(153)	(9 906)
Cash and cash equivalent at the beginning of the period	79 132	153 003		205	10 111
Effects of exchange rate movements	1 974 473	445 035		-	-
Total cash and cash equivalents at the end of the period	(20 400)	79 132		52	205
Cash and cash equivalent made up of
Cash at bank	18 159	108 567		52	205
Bank overdraft	(38 559)	(29 435)		-	-
	(20 400)	79 132		52	205

Notes on Resources Statement

Shumba Energy has over 4 billion tons of coal of which an excess of 1 billion tons have been drilled to indicated and measured levels. These are the highest confidence levels of explorattion drilling and allowable resources to be converted to mineral reserves for mining purposes

Sechaba Project coal can be used for generating power and international export coal. The group has entered into a startegic partnership with Lurco Group South Africa for the development of the Sechaba project

The multiple Thermal coal products from Morupule South Project may be sold into both Power Generation and Industrial markets both locally and internationally according to demand and the company's overall trade and supply demands.

The group entered into an agreement with Kibo Energy plc ("Kibo") to consolidate the Mabesekwa resource. Previously Kibo acquired 85% of one third of the resource with the group holding the remaining two thirds. In the new agreement Kibo will hold 35% of the consolidated resources and the group will hold the remaining 65%

By order of the board

The audited financial statements for the 12 months ended 30 June 2021 is in compliance with International Financial Reporting Standards (IFRS).

The standard used for the disclosure of Mineral Resources, results, exploration is the JORC code

The Board of Directors accepts full responsibility of the accuracy of the information contained in the report.

The statement of direct and indirect directors and senior officers pursuant to section 8(2)M of the Securities (disclosure obligations of reporting issuers) rules 2005 is available free of charge at the registered office of the Company at Suite 204, Grand Baie, Chemin Vignts Pieds, Grand Bay 30529

Directors Alan Glegg (Chairman) Mashale Phumaphi (CEO) Thapelo Mokhathi, Doversh Kumar Chumum, Alan Rungassamy