Announcement PDF ABN 50 127 291 927 INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2023 This interim financial report does not include all the notes of the type normally included in an annual financial report. This report is to be read in conjunction with the Annual Report for the year ended 30 June 2023 and any public announcements made by Emu NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK Page 2 CONTENTS Page Number DIRECTORS’ REPORT 4 AUDITOR’S INDEPENDENCE DECLARATION 17 CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE 18 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 19 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 20 CONSOLIDATED STATEMENT OF CASH FLOWS 21 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 22 DIRECTORS’ DECLARATION 27 INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS 28 COMPETENT PERSON’S STATEMENT Any details contained herein that pertain to exploration results, mineral resources or mineral reserves are based upon information compiled by Mr Kurtis Dunstone, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Dunstone is an employee of EMU NL and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Dunstone consents to the inclusion herein of the matters based upon his information in the form and context in which it appears. Page 3 DIRECTORS’ REPORT Your directors are pleased to present their report on the consolidated entity (referred to hereafter as the Group) consisting of Emu NL and the entities it controlled at the end of, or during, the half-year ended 31 December 2023. DIRECTORS The names of the directors who held office during or since the end of the period are: Peter Thomas Gavin Rutherford Terrence Streeter Tim Staermose REVIEW AND RESULTS OF OPERATIONS Revenues and results A summary of the Group’s revenues and results for the period is set out below: Half Year Ended 31 December 2023 Consolidated entity revenues and loss Revenues $ Net Result $ 10,925 (1,173,585) REVIEW OF OPERATIONS Exploration activity focus during the half centred on the Georgetown Project in North Queensland. Two separate reconnaissance field programmes were conducted during July and December 2023. Activity at the Georgetown Project was prioritised as Rare Earth projects, particularly clay hosted projects, have progressively lost investor and market interest as global REE prices collapsed. At its Annual General Meeting, held in November 2023, the EMU’s board advised attendees that exploration activity and expenditures at its REE projects would be wound back. This decision was made despite the completion of excellent programmes of exploration work at all of EMU’S WA REE projects resulting in significant TREO1 grades. The Georgetown Project offers early-stage exploration over very prospective ground with potential for scale deposits to be discovered. More than 1,000 mineral occurrences have been reported from historic mining and prospect areas. EMU’s early work at Georgetown has been targeted towards prospects that may have the potential to evolve into scale mining operations. The two field trips conducted during the half, resulted in the overall collection of 557 rock, stream, termite mound and soil samples. Assay results from the sampling have provided significant encouragement. Success has been achieved with the discovery of a high-grade copper vein swarm within the northern, Fiery Creek tenement pointing to potential 1 Total Rare Earth Oxides Page 4 DIRECTORS’ REPORT (Continued) early, scale exploration success. High grade copper, gold, lead and silver results have been recorded and confirmed from a number of separately identified prospective areas. Anomalous pathfinder elements at prospects located within all 3 tenements, have also provided further encouragement for follow up work. GEORGETOWN PROJECT EMU completed its maiden 15-day reconnaissance field survey during July and August 2023. A substantial high grade, outcropping, copper in quartz veining, (potentially polymetallic) system was identified within the Fiery Creek tenement with assay results from in situ rock sampling evidencing broad, high-grade copper and silver mineralisation. EMU’s updated the market with its results following this field trip2  Assays results record up to 18% copper (180,100ppm) and up to 6.4 ounces silver (200 g/t) from rock samples in broad quartz breccia hosted veins at Fiery Creek  Extensive 750m x 750m intrusive related, north-south striking, outcropping copper veining up to 2m wide identified from field mapping  Veining displays extensive secondary copper mineralisation at surface  Multi element assay results indicate the possibility of a significant copper dominant, polymetallic system with pathfinder element anomalism widespread throughout the sampled area  EMU posits a further ~2km strike of the copper-silver mineralisation extending to the south  Assays from rock chip samples report up to 35.4 ounces per tonne (1,100 g/t) silver and 26% (261,000ppm) lead from Snake Creek prospect area  Extensive pegmatite veining up to 50m wide and striking approximately 2km observed within Fiery Creek and the Perpendicular Peak tenements Fiery Creek Copper Veining In the central zone of a circular geophysics anomaly known as the Yataga Granodiorite, within the Fiery Creek tenement, the exploration team discovered swarms of north-south trending, subvertical quartz breccia veins with extensive secondary copper mineralisation including malachite, chrysocolla, azurite, covellite and chalcocite. These outcropping veins were observed to be up to 2m wide and were able to be followed along-strike for hundreds of metres. The veins are cut by east-west trending faults. Scattered small pits and rock piles indicate historical workings in the area. No record of modern exploration has been published and none is thought to have been undertaken. The mineralised veining was noted to be rich in oxides and sulphides, coinciding with natural clearings in the vegetation, indicating that the shedding sulphides within the immediate vein areas are preventing plant growth. These visible, linear, cleared areas, which can be determined from satellite imagery as open ground, free from vegetation, provide EMU with strong vectors for follow up work. 2 ASX Release “Copper Silver Lead Assay Results Pegmatite Fields Georgetown” 5 October 2023 Page 5 DIRECTORS’ REPORT (Continued) EMU’s field team collected samples from surface rocks, termite mounds and stream sediments. These samples were returned to Labwest in Perth with assay results confirming a copper-rich (polymetallic) prospect with grades of up to 18% copper and 6.4 ounces per tonne of silver. During the second field trip in December 2023, samples were collected in the southern area of the outcropping copper veining at Fiery Creek with assays results pending at period end. Library samples of the rock were dispatched for petrography follow up work to determine mineralisation characteristics which would provide further targeting information. EMU has since updated the market of the strong likelihood of a potential scale Copper Moly system at Fiery Creek following the receipt of final assays and petrographical information. Figure 1. Aeromagnetic map of prominent Yataga Granitoid intrusive feature with sample area marked in red and EMU’s review of vegetation destruction indicating extensions of copper-silver rich veining. Page 6 DIRECTORS’ REPORT (Continued) Snake Creek Lead-Silver Evidence of historic workings were observed at Snake Creek. Shallow trenches were observed, aligned along an east west trending shear zone in a rhyolitic host rock. Fresh veins of sulphides were seen in the ore, including pyrite and galena. Alteration around these shear zones was primarily chloritic, with some possible silica flushing indicating quartz with extensive iron oxide and boxworks after sulphides. Some narrow stockwork quartz veining was also identified in the area. The historic workings were noted to be up to 2m wide. Assay results from samples taken during the survey from the area report lead values up to 26.1% and silver values up to 35.4 ounces per tonne, (1,100 grams per tonne). The field survey provided encouragement for the targeting of an additional potential scale project. EMU has commenced further work to verify the significance of this mineralisation. Munitions Creek Prospect The Munitions Creek area was identified as a priority during the pre-fieldwork, with historic rock chip samples reporting significant gold values3. The gold-hosting structure was observed to be a 3-4m wide blue-grey quartz vein with a fine, brecciated fracture network. The vein strikes NE-SW and is roughly sub-vertical to steeply dipping towards the east. The 200m strike, multiple vein occurrence suggests a stacked vein system. EMU has since commenced new work to ascertain the potential scale of the prospect. Pegmatities A pegmatite swarm was mapped in the south of the Fiery Creek tenement. The pegmatites were between 5m-50m wide and were continuous, cross faulted, and extended up to 1.9 kilometers in strike. They trend east-west and are subvertical. The pegmatites show some displacement along north-south trending faults and were observed to contain large mica balls up to 20cm across, are variably potassic and often show graphic textures. The pegmatites were very coarse grained with an abundance of micas and feldspars observed. Some east-west trending pegmatitic veins were also found at Munitions Creek prospect and were sampled. These were similar in character to those found in Fiery Creek. GEORGETOWN GOLD4 At its Sandy Creek area in the Georgetown tenement, EMU recorded gold grades of up to 36.1g/t from rock samples. Sandy creek is situated close to the historic gold mining town of Georgetown. The area is marked by a significant number of old workings and presents EMU with an excellent follow up target prospect. EMU’s rock samples, obtained from the Dagworth prospect, recorded up to 15.4g/t. EMU conducted a review of historic information recorded from its Georgetown Project tenements which was presented in its 7 December ASX release: 3 4 ASX Release “Scale Project Added to Exploration Portfolio” 1 September 2022 ASX Release “EMU Records Gold Assays to 36.1 g/t at Georgetown QLD” 7 December 2023 Page 7 DIRECTORS’ REPORT (Continued)  Camp Oven Creek area historic surface rock assay results ranging from 12.9 up to 224 g/t gold and 24 to 135 g/t silver from rock samples in broad rhyolite breccia hosted veins in the NW5.  15 historic rock values greater than 31.1 g/t gold (> 1 Ounce) identified from zones in the Camp Oven Creek, 130 Quartz Vein and Quartz 250 Prospects (“new historic information”)6.  Three historic rock samples in the Quartz 130 prospect returned values ranging from 51 g/t gold up to 73 g/t gold7.  Limited historic drilling at Rhyolite Breccia/Turtle Arm returned values to 2m at 15.8g/t Au and 3m at 2.8g/t Au.  86 historic surface rock samples greater than 1 g/t gold with a weighted average of 17.3 g/t within Georgetown EPM 27667 - NW Camp Oven Creek/Turtle Arm quadrant8.  2 EMU Reconnaissance rock samples returned 36.1 g/t gold and 25.6 g/t gold respectively from the Sandy Creek prospect just south of Georgetown  Limited historic drilling at Munitions Creek (EPM 27642) returned values to 4m at 2.73/t Au and 1m at 10.85g/t Au. 5 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Report CR20472 (Emu Appendix 1 – CR20472 Appendix 3). Table 4. 6 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Reports 20472, 23854, 71155. Also see table 4. Described as “new” in the sense that knowledge of this information is new to EMU. 7 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Report 23854, 71155. Also see table 4. 8 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Reports 20472, 21962, 23854, 28639, 42618, 71155. Table 4. Page 8 DIRECTORS’ REPORT (Continued) Figure 2 - Identified current and historic Gold Occurrences at Fiery Creek and Georgetown Tenements Page 9 DIRECTORS’ REPORT (Continued) CONDINGUP REE PROJECT Before the decline in the REE market, assay results from EMU’s maiden aircore drilling programme were received from Condingup REE Project. The 34 hole 2,2762m aircore drilling programme, was highly successful for REE concentrations with all holes reporting REE TREO grades up to 2,513ppm TREO. This result confirmed EMU’s credible endeavour to meet market aspirations and investor expectation to search for and acquire clay hosted REE projects. In its release to the market, following the drilling, EMU highlighted9  Extensive high grade assay results recorded from standard 4m composite samples up to 2,513pmm Total Rare Earth Oxides (TREO)  High value Magnetic Rare Earth Oxide (MREO) ratio to TREO of 21% (average for drilling programme) extending to a maximum of 40.7% at Merivale Rd  Heavy Rare Earth (HREO) ratio of up to 53.08%  The aircore programme targeted only a minor portion of viable clay trap sites and deeply weathered Booanya granites within the 1,560 square kilometre project, indicating the vast scale of prospectivity available over the project for further testing  First phase aircore drilling programme demonstrated continuity of grade and thickness over multiple kilometres in the wide-spaced drill programme with mineralised lenses running up 6-8kms in length  Anomalous grade >300ppm TREO values intersected in 33 of the 34 holes drilled over significant intercepts up to a maximum 59m vertical drill intercept  High grade >750ppm TREO values intersected in 67% of holes drilled. Flat-lying REE zones located in relatively shallow thick clay zones immediately above fresh granite lithologies The “proof of concept” roadside aircore drilling programme tested three main targets at Kettles-Parmango, Merivale and Baring Roads where interpreted bedrock mapping indicated deep clay traps within the prospective Booanya Suite granitic intrusives. The three drill targets were tested by continuous 4m composite sampling through the complete weathering profile from surface to bedrock. Overall, the drilling tested only a very small proportion of the substantial 1,560 square kilometre Condingup REE Project, leaving scope for multiple target areas remaining for follow-up work. (see Figure 3– Drill Collar Location Plan). 9 ASX Release “Extensive High Grade REEs over multiple km at Condingup Project” 9 October 2023 Page 10 DIRECTORS’ REPORT (Continued) Figure 3 –Drill Collar Plan showing positions relative to geology and Emu tenement boundaries The Condingup aircore drilling programme and multielement analysis of the sampling confirmed significant grades of REE mineralisation over wide intercepts in the maiden drilling programme designed to test the proof of concept. The assay results returned anomalous grade >300ppm TREO values in 33 of the 34 holes completed, demonstrating the prospectivity of the region and the fertility of the host rocks. Consistent wide mineralised intercepts confirmed the Condingup REE Project as a project that stood “head-to-head” alongside its peers in the globally significant Esperance clay hosted REE province. The distribution of anomalous REE elements generally occupy a variable but wide interval of clays and saprolite immediately above the granite bedrock. The width of intercepts in the vertical drilling range up to 59m (Hole 23CAC019) and the lateral extensions of these “lenses” reach at least 6-8km, which pointed to significant project prospectivity and economics within the market, at the time the drilling took place. Page 11 DIRECTORS’ REPORT (Continued) Badja Gold/Tungsten/Lithium Project Following a review of the Badja project’s structural and geochemistry datasets by a consulting geologist, Mr Nigel Maund, EMU conducted a short field verification survey during September 2023. This survey identified the presence of LCT (Lithium-Cesium-Tantalum) pegmatites. Subsequent LIBS analyser testwork of rock samples, the UV fluorescing of spodumene and the visual identification of the crystal morphology support the presence of lithium-bearing spodumene crystals contained in mafic rock samples returned from the field. The LIBS analyser reading on the hand samples have obtained values of 1,426ppm Li (equivalent to 0.31% Li2O), see Figure 4 below. LCT pegmatite occurrences at Badja are interpreted to be sourced from discrete highly fractionated, late-stage granite plutons on the south-west portion of the project. Figure 4. – Hand-specimen of spodumene crystals in LCT pegmatite showing strong pink fluorescence, a characteristic feature under long-wavelength UV light. See location of sample in Figure 5. Mr Maund was commissioned in July 2023 to investigate the importance of the regional granite intrusive bodies surrounding the project area.10 EMU’s geologists posit that the late stage, fractionated, intrusive 10 Report by Mr Nigel Maund BSc (Hons)Lond., MSc, DIC, MBA, F.Aus.IMM, FAIG, F.SEG, FGS, MMSA, Consultant Economic Geologist “A Report on Badja Gold Project Area Near the Historic “Gnows Nest” Gold Mine, Wadgingarra Gold Field, Badja Station, Western Australia”, 25 August 2023 Page 12 DIRECTORS’ REPORT (Continued) granite plutons, identified primarily from airborne geophysical surveys, are the key drivers of high-grade gold and tungsten occurrences at Badja. The investigation by Mr Maund revealed major LCT Pegmatite pathfinder geochemistry and element associations in historic and recent EMU geochemistry leading to the field survey. Page 13 DIRECTORS’ REPORT (Continued) Figure 5. – Conceptual model for LCT pegmatites in the western and southern intrusive-mafic contacts at Badja. Multi-element geochemistry, particularly the immobile elements (eg., Rb, Cs & Be) supports a latestage fractionated granite source. Note location of sample and spodumene specimen reported in this announcement. Page 14 DIRECTORS’ REPORT (Continued) EMU received several approaches from interested parties. EMU continues to evaluate the interest looking to realise maximum value for the asset either through sale or retention. EMU’s work at Badja has defined and upgraded what is now regarded as a multi-element project adding prospectivity for high grade gold and tungsten and lithium. VIPER GRACELAND AND MERREDIN REE PROJECTS EMU conducted no further work other than administrative requirements to retaining these projects. EMU has since indicated its intention to surrender the projects given the state of the REE market and the significant holding costs involved in maintaining the tenements. SUNFIRE PROJECT EMU has no further updates to report on the Sunfire Project as it awaits direction from the WA Government as to its intention to allow drilling activities in the old forestry workings in the state forest. EMU has not received any feedback from its correspondence most recently dated November 2022. EMU has met all required environmental obligations with respect to accessing WA State Forest areas within the project with the commencement of onsite exploration activities. There continues to be a complete lack of progress coupled with the absence of any indication from Government departments as to the likely probability of drilling consent being forthcoming. This lack of progress and inability by the Government departments to determine the viability of ongoing exploration and drill testing of the Sunfire Ni-Cu targets has frustrated exploration that would have been in the interest of the State and its peoples. EMU has placed progress on the back burner to allow Governmental instrumentalities to respond at their glacial pace. Page 15 DIRECTORS’ REPORT (Continued) CORPORATE Changes in Securities During the reporting period:  574,750,007 fully paid ordinary shares were issued at $0.0015 each as a private placement to sophisticated and professional investors resulting in the Company receiving a total of $862,125 before costs;  287,375,004 options (exercisable at $0.003 each, expiry 31 December 2026) to acquire fully paid ordinary shares were issued on the basis of 1 option for every 2 shares subscribed pursuant to the above placement; and 30,000,000 options (exercisable at $0.003 each, expiry 31 December 2026) to acquire fully paid ordinary shares were issued to the lead manager in respect of services provided to the above placement.  Other The Annual General Meeting of Members (AGM) was held on 30 November 2023. All resolutions considered at the AGM were passed on a poll. EVENTS SUBSEQUENT TO END OF PERIOD Since the reporting date, and as of the date of this report, no other matter or circumstance has arisen which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent 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 on page 17. This report is made in accordance with a resolution of directors. Signature of Peter S Thomas affixed to original document and held on file Peter S Thomas Chairman 15 March 2024 Page 16 AUDITOR’S INDEPENDENCE DECLARATION To those charged with the governance of Emu NL As auditor for the review of Emu NL for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been: i) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the review; and ii) no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Emu NL and the entities it controlled during the period. Signature of Elderton Audit Pty Ltd affixed to original document and held on file Elderton Audit Pty Ltd Signature of Sajjad Cheema affixed to original document and held on file Sajjad Cheema Director 15 March 2024 Perth Limited liability by a scheme approved under Professional Standards Legislation T +61 8 6324 2900 E info@eldertongroup.com A Level 32, 152 St Georges Terrace, Perth WA 6000 ABN 51 609 542 458 W www.eldertongroup.com Page 17 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Half-Year Ended 31 December Notes 2023 $ 2022 $ REVENUE Interest revenue 10,925 5,864 - 81 (6,915) (4,056) Exploration and tenement expenses (569,727) (494,653) Key management personnel compensation (224,417) (197,674) Other expenses (383,451) (178,283) (1,173,585) (868,721) - - (1,173,585) (868,721) Adjustment to fair value of available-for-sale financial assets - - Other comprehensive income for the period, net of tax - - (1,173,585) (868,721) (0.07) (0.13) FOREX gain EXPENDITURE Depreciation expense LOSS BEFORE INCOME TAX Income tax expense LOSS FOR THE HALF-YEAR ATTRIBUTABLE TO MEMBERS OF EMU NL OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss TOTAL COMPREHENSIVE (LOSS) FOR THE PERIOD ATTRIBUTABLE TO MEMBERS OF EMU NL Basic and diluted loss per share (cents) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. Page 18 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Notes 31 December 30 June 2023 $ 2023 $ CURRENT ASSETS Cash and cash equivalents 789,997 1,149,742 Trade and other receivables 61,470 53,446 TOTAL CURRENT ASSETS 851,467 1,203,188 Motor vehicles, plant and equipment 537 7,452 TOTAL NON-CURRENT ASSSETS 537 7,452 852,004 1,210,640 Trade and other payables 219,555 213,709 TOTAL CURRENT LIABILITIES 219,555 213,709 TOTAL LIABILITIES 219,555 213,709 NET ASSETS 632,449 996,931 NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES EQUITY Contributed equity 3 34,376,313 33,606,226 Reserves 4 142,617 103,600 (33,886,481) (32,712,895) 632,449 996,931 Accumulated losses TOTAL EQUITY The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Page 19 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Share-based Payments Reserve Accumulated Losses $ $ Issued Capital $ BALANCE AT 1 JULY 2022 Total $ 31,233,579 126,000 (30,725,292) 634,287 Loss for the period - - (868,721) (868,721) Other comprehensive income - - - - TOTAL COMPREHENSIVE INCOME - - (868,721) (868,721) Proceeds from issue of shares and options Share issue costs Reversal of KMP and other share based payments on exercise of options 968,188 - - 968,188 (55,939) - - (55,939) - (41,000) - (41,000) SUB-TOTAL BALANCE AT 31 DECEMBER 2022 912,249 (41,000) - 871,249 32,145,828 85,000 (31,594,013) 636,815 BALANCE AT 1 JULY 2023 33,606,226 103,600 (32,712,895) 996,931 Loss for the period - - (1,173,585) (1,173,585) Other comprehensive income - - - - TOTAL COMPREHENSIVE INCOME - - (1,173,585) (1,173,585) Proceeds from issue of shares Share issue costs Share based payments - options issued to lead manager 862,125 - - 862,125 (92,038) - - (92,038) - 39,017 SUB-TOTAL BALANCE AT 31 DECEMBER 2023 770,087 39,017 - 809,104 34,376,313 142,617 (33,886,481) 632,449 TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS 39,017 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Page 20 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 Half Year Ended 31 December 2023 $ 2022 $ CASH FLOWS FROM OPERATING ACTIVITIES Expenditure on mining interests (506,519) (315,622) Payments to suppliers and employees (615,744) (532,722) 10,925 5,864 (1,111,338) (842,480) Payments for new tenements (57,511) (84,385) Net cash provided by investing activities (57,511) (84,385) Proceeds from issue of securities 901,142 923,688 Proceeds from exercise of options - 3,500 Share issue costs (92,038) (55,939) Net cash provided by financing activities 809,104 871,249 Net increase / (decrease) in cash and cash equivalents (359,745) (55,616) Cash and cash equivalents at the beginning of the half-year 1,149,742 784,956 - 81 789,997 729,422 Interest received Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Effects of exchange rate changes on cash and cash equivalents CASH AND CASH EQUIVALENTS AT THE END OF THE HALF-YEAR The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. Page 21 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2023 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 and does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by Emu NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. These financial statements have been prepared on an accruals and historical cost basis, except where indicated. Going concern The financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business. As disclosed in the financial statements, the Group incurred a loss of $1,173,585 and had net operating cash outflows of $359,745. The ability of the entity to continue as a going concern is dependent on securing additional capital raising activities to continue its operational and exploration activities. Should the entity not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements and that the financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be necessary should the entity not continue as a going concern. EMU expects that it will continue to have negative operating cash flows as is usual for mining exploration entities, but expenditures on discretionary exploration expenses have been significantly curtailed and will be dependent on available cash resources. The Company is rationalising its tenement holdings consistent with its perception of market support/lack of support therefor. The Company is considering opportunities to raise equity funding and/or the trade sale of one or more tenements. NOTE 2: SEGMENT INFORMATION The Group has identified that it operates in only one segment based on the internal reports that are reviewed and used by the board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group's principal activity is mineral ex