Belararox Limited Condensed Financial Report For The Half-Year Ended 31 December 2022

Belararox Limited (ASX:BRX) (“Belararox” or “the Company”), is pleased to present its Half Year Report.

Directors

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

Principal activities

During the financial half-year the principal continuing activities of the Company consisted of exploration and evaluation of:

• The Belara project – a 643 square kilometre tenement package located in central NSW. The Belara project is a highly prospective near-term base-metal production opportunity, with potential for zinc, copper, silver lead, and gold in close proximity to well developed infrastructure; and
  
• The Bullabulling project – an early-stage gold exploration tenement package comprising of 26 granted prospecting licences located 30km west of Coolgardie in the Eastern Goldfields of WA, in close proximity to the Bullabulling gold mine.

Review of operations

The loss from continuing operations for the financial half year after providing for tax amounted to $1,778,568 (December 2021 loss: $548,534).

Exploration

During the period, Phase 1 resource drilling has been successfully concluded at Belara and Native Bee. A total of 38 holes for 5,871 m have been drilled, with 3 holes abandoned.

A maiden Mineral Resource Estimate (MRE) was completed in accordance with the JORC (2012) Code for Belara and Native Bee with Inferred Resources of 5.0 million tonnes (Mt) at 3.41% Zinc equivalent (ZnEq). The MRE includes: 1.82% Zinc; 0.33% Copper; 0.63% Lead; 17.5 g/t Silver and 0.21g/t Gold at a 0.85% ZnEq cut-off (see ASX announcement dated 3 November 2022).

Electromagnetic surveys (FLEM and DHEM) were conducted to test for extensions to known mineralisation within the broader Belara and Native Bee project. Downhole electromagnetic data confirmed the extension of mineralisation in and around Native Bee with localised zones of high conductance.

Geometallurgical, sequential open circuit flotation tests on low-grade composite from early Belara drilling confirms the potential for producing saleable Copper, Lead, and Zinc concentrate grades with recoveries to improve on more representative samples from recent drilling. Testwork was conducted at Auralia Metallurgical Laboratories under the management of JT Metallurgical Services with the key outcomes being the derivation of a flowsheet and reagent conditions capable of producing saleable copper (>20%), lead (>30%), and zinc (>50%) concentrates.

Planning for Phase 2 drilling program was completed. Phase 2 drilling aims to target down dip extensions to the Belara deposit, and the Native Bee mine and its southern extensions.

Additional activities included ongoing mapping and ground truthing of areas to the north of Belara and to the south of Native Bee to assess for the potential of extensions to known mineralisation.

Subsequent events

• Belararox announced execution of a non-binding terms sheet with Fomo Ventures No1 Pty Ltd to acquire its Toro – Malambo – Tambo (TMT) Project in Argentina. TMT is an extensive 32,000 hectare project with potential for large scale Base Metal mineralisation and untested porphyry targets.
  
• Belararox' NSW landholding increased by 300% with the grant of two pending ELAs. ELA6287 was granted as EL9523 and ELA6176 was granted as EL9538 during the month of February 2023 for 5 years.
• The Phase 2 drill campaign at Belara and Native Bee commenced.

Significant changes in the state of affairs

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

Events subsequent to reporting date

As announced on 3 January 2023, the Company executed a Non-Binding Terms Sheet with Fomo Ventures No 1 Ltd (“FOMO”) and its shareholder to acquire the TMT Project in Argentina. In addition, the Company issued Appendix 3B's giving notice of the proposed issue of the following securities should the transaction with FOMO be approved by BRX shareholders after due diligence:

• 2,500,000 ordinary fully paid BRX shares;
  
• 1,000,000 Listed Options (BRXO); and
• 10,500,000 Performance Shares subject to meeting conditions outlined in the FOMO Release

There were no other matters or circumstance which have arisen since 31 December 2022 that has significantly affected, or may significantly affect the Company's operations, the results of those operations, or the Company's state of affairs in future financial years.

Rounding of amounts

The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.

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 immediately after this directors' report.

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