Shumba Energy : AUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2023

REGISTERED OFFICE:	TRANSFER SECRETARY	AUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTS
Suite 204, Grand Baie	Central Securities Depository Botswana	FOR THE YEAR ENDED 3O JUNE 2022
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 2022

	GROUP - 12 months ended	COMPANY - 12 months ended
	30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21
	USD (Audited)	USD (Audited)	USD (Audited)	USD (Audited)
Revenue	487 609	661 635	-	-
Cost of sales	(423 293)	(568 077)	-	-
Gross Profit	64 316	93 558	-	-
Other income/(loss)	32 200	33 400	-	-
Operating expenses	(1 610 714)	(617 848)	(52 738)	(130 998)
Employee costs	(137 339)	(200 863)	-	-
Operating loss	(1 651 537)	(691 753)	(52 738)	(130 998)
Finance income	-	609	813 568	613 012
Finance cost	(558 056)	(505 306)	(524 278)	(481 056)
Profit (loss) for the period	(2 209 593)	(1 196 450)	236 552	958
Taxation	(31 142)	(339)	-	-
Profit (loss) from continuing operations	(2 240 735)	(1 196 789)	236 552	958
Other comprehensive income
Available-for-sale financial assets adjustment	-	-
Exchange difference on translating foreign operations	(3 544 291)	2 447 049
Total comprehensive profit (loss) for the period	(5 785 026)	1 250 261	236 552	958
Profit (loss) attributable to:
Owners of the parent	(5 016 836)	1 026 065	236 552	958
Non-controlling interest	(768 190)	224 196
	(5 785 026)	1 250 261	236 552	958
Basic earnings per share (in thebe)	(0.01708)	0.00351
Number of Shares	293 676 389	292 617 333
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

ASSETS	GROUP		COMPANY
	30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21
Non-Current Assets	USD (Audited)	USD (Audited)	USD (Audited)	USD (Audited)
Property, plant and equipment	376 249	427 994	-	-
Goodwill	2 745 662	2 745 662
Exploration assets	13 718 191	15 491 795	-	-
Right of Use Asset	338 508	385 846
Investment in subsidiary	-	-	2 030 743	2 030 743
Loans	-	-	20 128 867	19 542 017
Financial Assets	88 377	99 803
Current Assets
Receivables and prepayments	53 188	2 705 646	1 806 261	1 808 378
Cash and cash equivalent	468 028	18 159	49	52
Total Assets	17 788 203	21 874 905	23 965 920	23 381 190
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the parent
Stated capital (including advance against stated capital)	17 795 944	17 770 830	17 795 944	17 770 830
Reserves	(1 008 673)	2 118 340	-	-
Accumulated loss	(12 291 090)	(10 440 370)	(1 718 446)	(1 928 383)
Non-controlling interest	3 140 743	2 984 390	-	-
Total equity	7 636 924	12 433 190	16 077 498	15 842 447
Non-Current Liabilities
Loan notes	4 617 123	3 709 731	4 212 473	3 709 731
Finance Lease Liability	333 446	405 978
Deferred consideration	1 500 000	1 500 000	1 500 000	1 500 000
	6 450 569	5 615 709	5 712 473	5 209 731
Current Liabilities
Trade and other payables	3 700 710	3 824 613	2 175 949	2 329 012
Current tax payable	-	1 393	-	-
Total Current Liabilities	3 700 710	3 826 006	2 175 949	2 329 012
Total Liabilities	10 151 279	9 441 715	7 888 422	7 538 743
Total Equity and Liabilities	17 788 203	21 874 905	23 965 920	23 381 190
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 12 MONTHS YEAR ENDED 30 JUNE 2022
	GROUP		COMPANY
	30-Jun-22	30-Jun-21	30-Jun-22	30-Jun-21
	USD (Audited)	USD (Audited)	USD (Audited)	USD (Audited)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations	1 454 935	(1 673 916)	(816 879)	`
Interest Income	-	609	813 568	-
Finance Costs	(558 056)	(505 306)	(524 278)	(613 012)
Tax paid	-	-	-	-
Net cash from operating activities	896 879	(2 178 613)	(527 589)	(576 664)
Net cash from investing activities	11 426	5 434	-	-
Net cash from financing activities	320 617	99 174	527 586	576 511
NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENT	1 228 922	(2 074 005)	(3)	(153)
Cash and cash equivalent at the beginning of the period	(20 400)	79 132	52	205
Effects of exchange rate movements	(758 223)	1 974 473	-	-
Total cash and cash equivalents at the end of the period	450 299	(20 400)	49	52
Cash and cash equivalent made up of
Cash at bank	468 028	18 159	49	52
Bank overdraft	(17 729)	(38 559)	-	-
	450 299	(20 400)	49	52

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 2022 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, Temo Bolokwe, Joshna Goordah, Praveen Beeharry