Announcement PDF INTERIM FINANCIAL REPORT For the reporting period ended 31 December 2023 FAR EAST GOLD FAR EAST GOLD LTDLTD ACN 639 887 219 1 Financial Report for the reporting period ended 31 December 2023 WWW.FAREAST.GOLD ACN 639 887 219 CONTENTS DIRECTORS’ REPORT 3 LEAD AUDITOR’S INDEPENDENCE DECLARATION 5 FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 6 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 8 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 9 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 10 DIRECTORS’ DECLARATION 16 INDEPENDENT AUDITOR’S REVIEW CONCLUSION 17 FAR EAST GOLD LTD 2 Financial Report for the reporting period ended 31 December 2023 DIRECTORS’ REPORT Events after the reporting date The Directors’ present their report, together with the financial statements, on the consolidated entity consisting of Far East Gold Ltd (the parent entity or Company) and the entities it controlled at the end of, or during the half-year reporting period ended 31 December 2023 (the Group). In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: On 21 February 2024, the Company entered into Deeds of Amendment for the up-front Earn-in Agreements with the vendors of the Hill 212 Gold Project, Bluegrass Creek Gold Project and Mount Clark West Copper Gold Project. Under the terms of these Deeds of Amendment the parties agreed that the Company will retain its 90% interest in the projects without any further specified expenditure obligations and the vendors will retain their free-carry to completion of the Feasibility Study at which point the vendors may elect to take a 2% Net Smelter Royalty and the Company’s interest in the projects will increase to 100% (see the Company’s ASX announcement dated 28 February 2024). DIRECTORS The following persons were directors of Far East Gold Ltd during the whole of the period and up to the date of this report, unless otherwise stated: Paul Walker On 26 February 2024, the Company entered into a new Earn-in Agreement with the vendors of the Hill 212 Gold Project, Bluegrass Creek Gold Project and Mount Clark West Copper Gold Project to acquire the Reedy Creek project tenement which directly adjoins and links the Hill 212 and Bluegrass Creek projects. Under the terms of this new Earn-in Agreement the parties agreed that the Company has fully acquired a 90% interest in the project without any specified annual or staged expenditure obligations and the vendor has a free-carry to completion of the Feasibility Study at which point the vendors may elect to take a 2% Net Smelter Royalty and the Company’s interest in the Reedy Creek project will increase to 100% (see the Company’s ASX announcement dated 28 February 2024). Shane Menere Marc Denovan Justin Werner Dr Christopher Atkinson Michael Thirnbeck Principal activities During the period, the principal activities of the Group consisted of concluding asset acquisition agreements, the commencement and continuation of permitting activities and mineral exploration and evaluation. There were no significant changes in the Group’s nature of activities during the reporting period. OPERATING AND FINANCIAL REVIEW The loss for the consolidated entity for the reporting period amounted to $859,568 (compared to prior period loss $1,737,712). During the period, the Group continued the Phase 2 drilling program for its Woyla Copper Gold Project located in Aceh, Indonesia that comprised completion of a further 19 diamond drillholes totalling 3,377.3m, bringing the number of diamond drillholes completed by the Company on the Woyla Project to 112 totalling 17,248.8m. Exploration results and assays for the on-going Phase 2 drilling program at the Woyla Project have been progressively released during the period and continue to identify bonanza grade gold and silver within the tenement with peak assays returned of 81 g/t gold and 1,359 g/t silver. Detailed field mapping and UAV Magnetic Surveys were also undertaken for new and existing prospect areas at the Company’s Woyla Project. During the period, the Company finalised the remaining payments totalling $575,000 to the vendors of the Company’s Trenggalek Copper Gold Project. The Company commenced detailed field mapping and a Hyperspectral Satellite Survey for new and existing prospect areas at the Company’s Trenggalek Project. As part of capital raise during the period, by way of Placement of shares, the Company received a strategic investment of $4,000,000 from Eurasian Resources Group (ERG) which included the Company providing ERG with a Right of First Refusal to match or better any third party offer the Company may receive for the Trenggalek Project (see the Company’s ASX announcement dated 16 August 2023). FAR EAST GOLD LTD 3 Financial Report for the reporting period ended 31 December 2023 DIRECTORS’ REPORT Other than the matters above, subsequent to the half-year period ended 31 December 2023, there has not arisen between the end of the financial year and the date of this report any other item, transaction, or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to effect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, 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 immediately after this directors’ report. This Directors’ report is made in accordance with a resolution of the Board of Directors. ______________________________ Paul Walker Chairman Dated at Brisbane on 14th day of March 2024. FAR EAST GOLD LTD 4 Financial Report for the reporting period ended 31 December 2023 Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Far East Gold Ltd I declare that, to the best of my knowledge and belief, in relation to the review of Far East Gold Ltd for the half-year ended 31 December 2023, there have been: i. no contraventions of the auditor independence requirements as set out in 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. KPMG M J Jeffery Partner Brisbane 14 March 2024 KPM_INI_01 PAR_SIG_01 PAR_NAM_01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01 5 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME PERIOD ENDED PERIOD ENDED 31 DECEMBER 2023 31 DECEMBER 2022 $ $ 4,437 463 Consulting costs (277,051) (362,639) Share based payments expense (12,845) (82,439) Professional fees (164,564) (285,424) Finance costs (1,054) (3,596) Depreciation (40,809) (28,117) Listing and share registry expenses (7,712) (5,562) - (200,000) (46,910) (27,890) NOTES Revenue Interest Income Expenses Project acquisition costs Foreign exchange loss Employee benefits expense (76,625) (394,426) Other Expenses (236,435) (348,082) Total Expenses (864,005) (1,738,175) Loss before income tax expense (859,568) (1,737,712) - - (859,568) (1,737,712) Foreign currency translation reserve (1,469,830) (624,884) Total comprehensive income (2,329,398) (2,362,596) Owners of the Company (831,842) (1,737,712) Non-controlling interests (27,726) - (859,568) (1,737,712) Owners of the Company (2,235,525) (2,362,596) Non-controlling interests (93,873) - (2,329,398) (2,362,596) CENTS CENTS Basic loss per share (0.01) (0.01) Diluted loss per share (0.01) (0.01) Income tax expense Loss after income tax expense Other comprehensive income, net of tax Profit attributable to: Total comprehensive income attributable to: The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying Notes. FAR EAST GOLD LTD 6 Financial Report for the reporting period ended 31 December 2023 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION NOTES 31 DECEMBER 2023 30 JUNE 2023 $ $ 4,786,334 3,933,048 Current assets Cash and cash equivalents Trade and other receivables 4 212,675 108,329 Other assets 5 665,481 596,971 5,664,490 4,638,348 111,275 133,928 5,553 25,316 27,742,193 25,442,999 758,786 730,312 Total non-current assets 28,617,807 26,332,555 Total assets 34,282,297 30,970,903 1,338,785 2,207,244 Total current assets Non-current assets Property, plant and equipment Right of use asset Exploration and evaluation assets 6 Other assets Current liabilities Trade and other payables 7 Provisions 16,481 8,582 Short-term borrowings 92,871 89,940 Lease liability 6,751 29,843 1,454,888 2,335,609 Provisions 32,542 34,611 Total non-current liabilities 32,542 34,611 Total current liabilities Non-current liabilities Total liabilities 1,487,430 2,370,220 Net assets 32,794,867 28,600,683 41,742,795 35,345,315 Equity Issued Capital 8(a) Reserves 8(b) (168,143) 1,109,438 Non-controlling interest 2,532,717 2,626,590 Accumulated losses (11,312,502) (10,480,660) Total equity 32,794,867 28,600,683 The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying Notes. FAR EAST GOLD LTD 7 Financial Report for the reporting period ended 31 December 2023 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ACCUMULATED NON-CONTROLLING ISSUED CAPITAL RESERVES LOSSES INTEREST TOTAL EQUITY $ $ $ $ $ Balance as at 1 July 2022 29,229,115 972,318 (7,985,327) 2,867,553 25,083,659 Loss for the reporting period - - (1,737,712) - (1,737,712) Other comprehensive income/(loss) - (624,884) - - (624,884) Total comprehensive income/(loss) for the period - (624,884) (1,737,712) - (2,362,596) 6,019,692 - - - 6,019,692 CONSOLIDATED Transactions with owners: Contributions of equity, net of transaction costs (Note 8) Share-based payments - 82,439 - - 82,439 Balance as at 31 December 2022 35,248,807 429,873 (9,723,039) 2,867,553 28,823,194 Balance as at 1 July 2023 35,345,315 1,109,438 (10,480,660) 2,626,590 28,600,683 Loss for the reporting period - - (831,842) (27,726) (859,568) Other comprehensive income/(loss) - (1,403,683) - (66,147) (1,469,830) Total comprehensive income/(loss) for the period - (1,403,683) (831,842) (93,873) (2,329,398) - - 6,397,480 Transactions with owners: Contributions of equity, net of transaction costs (Note 8) 6,397,480 Issue of options - 113,257 - - 113,257 Share based payments - 12,845 - - 12,845 41,742,795 (168,143) (11,312,502) 2,532,717 32,794,867 Balance as at 31 December 2023 The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes. FAR EAST GOLD LTD 8 Financial Report for the reporting period ended 31 December 2023 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS PERIOD ENDED PERIOD ENDED 31 DECEMBER 2023 31 DECEMBER 2022 $ $ Payments to suppliers and employees (1,302,430) (1,180,127) Receipts from other operating activities 15,480 17,465 NOTES Cash flows from operating activities Interest received Net cash used in operating activities 749 463 (1,286,201) (1,162,199) Cash flows from investing activities Payment for property, plant and equipment (5,496) (101,190) Exploration and evaluation expenditure (4,324,205) (3,741,507) Net cash used in investing activities (4,329,701) (3,842,697) 6,889,500 6,505,500 (24,145) (23,773) Cash flows from financing activities Proceeds from the issue of share capital Repayment of lease liabilities Share issue transaction costs (378,763) (167,063) Net cash flows from financing activities 6,486,592 6,314,664 Net increase in cash and cash equivalents 870,690 1,309,768 Cash and cash equivalents at the beginning of the financial year 3,933,048 9,098,456 Effects of exchange rate changes on cash and cash equivalents (17,404) (13,912) Cash and cash equivalents at the end of the financial year 4,786,334 10,394,312 The above Condensed Consolidated Statement of Cash Flow should be read in conjunction with the accompanying Notes. FAR EAST GOLD LTD 9 Financial Report for the reporting period ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 1. Reporting Entity to adopt the going concern basis in the preparation of the financial report. The Group: Far East Gold Ltd (the ‘Company’) is a company domiciled in Australia. These condensed consolidated interim financial statements (‘interim financial statements’) as at and for the six months ended 31 December 2023 comprise the Company and its subsidiaries (together referred to as the ‘Group’). The Group is primarily involved in mining exploration. The consolidated annual financial statements of the Group as at and for the year ended 30 June 2023 are available upon request from the Company’s registered office at Level 18, 324 Queen Street, Brisbane, QLD, 4000 or at www.fareast.gold. - has been successful in raising $6,397,480 (after costs) (2023: $6,019,692) in equity during the year; - has cash at bank of $4,786,334 (30 June 2023: $3,933,048); - can scale back certain parts of its activities that are not essential so as to conserve cash; and - retains the ability, if required, to wholly or in part dispose of interests in mineral exploration. Based on the Group’s cash flow forecast the Group will require additional funding in the next 12 months to enable it to continue its normal business activities without curtailment and to ensure the realisation of assets in the ordinary course of business and extinguishment of liabilities as and when they fall due, including progression of its exploration and project development activities. Note 2. Basis of preparation This condensed consolidated interim financial report is for the half-year reporting period ended 31 December 2023. This report has been prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 134 Interim Financial Reporting. The Directors have prepared cash flow projections that support the ability of the Group to continue as a going concern. These cash flow projections include significant planned expenditure on the Group’s projects and assume the Group obtains sufficient additional funding from shareholders or other parties. If such funding is not achieved, the Group plans to reduce expenditure significantly, which may result in an impairment loss on the book value of exploration and evaluation expenditure recorded at reporting date. The financial information is intended to provide users with an update on the latest annual financial statements of Far East Gold Ltd and its controlled entities. As such, it does not include all the notes of the type normally included in an annual financial report that represent relatively insignificant changes occurring during the half-year within the Group. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2023, together with any public announcements made during the following half-year. These conditions give rise to a material uncertainty that may cast doubt upon the Group’s ability to continue as a going concern. The ongoing operation of the Group is dependent upon: These interim financial statements were approved by the Directors on 14th March 2024. Accounting policies The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements. - The Group raising additional funding from shareholders or other parties; and/or - The Group reducing expenditure in line with available funding. In the event that the Group does not obtain additional funding and/ or reduce expenditure in line with available funding, it may not be able to continue its operations as a going concern and therefore may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the consolidated interim financial interim report. The consolidated entity has considered the implications of new and amended Accounting Standards but determined that their application to the financial statements is either not relevant or not material. However, the Directors believe that the Group will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the interim financial report. Going concern The consolidated financial statements have been prepared on a going concern basis, which contemplates the realisation of assets and settlement of liabilities in the ordinary course of business. The interim financial report does not include any adjustments relating to the amounts or classifications of recorded assets and liabilities that might be necessary if the Group does not continue as a going concern. For the period ended 31 December 2023, the Group incurred a loss of $859,568 (30 June 2023: loss of $2,772,145) before income tax and net cash outflows from operating activities of $1,286,201 (30 June 2023: $1,321,464) and investing activities of $4,329,701 (30 June 2023: $9,908,807). The Group has net current assets of $4,209,602 (30 June 2023: $2,302,739) and total net assets of $32,794,867 (30 June 2023: $28,600,683). Based on the factors outlined below the Directors believe that it is reasonably foreseeable that the Company will continue as a going concern and that it is appropriate FAR EAST GOLD LTD 10 Financial Report for the reporting period ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 3. Operating segments Identification of reportable operating segments The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by the parent entity’s Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The consolidated entity is managed primarily on a geographic basis that is the location of the respective areas of interest (tenements) in Australia and Indonesia. Operating segments are determined on the basis of financial information reported to the Board which is at the consolidated entity level as well as the geographic level. The consolidated entity does not have any products/services it derives revenue from. Management currently identifies the consolidated entity as having two operating segments, being exploration and development of mine projects in Australia and exploration and development of mine projects in Indonesia. All significant operating decisions are based upon analysis of the consolidated entity as two segments. Accounting policy for operating segments Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. ‘EBITDA’ represents earnings before income tax, depreciation and amortisation. This is a key measure used by the CODM. FAR EAST GOLD LTD 11 Financial Report for the reporting period ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 3. Operating segments (continued) Segment information provided to CODM REPORTABLE SEGMENT AUSTRALIA INDONESIA CORPORATE TOTAL PERIOD ENDING 31 DECEMBER 2023 $ $ $ $ Segment revenue - - 4,437 4,437 (124,408) (476,774) (216,523) (817,705) Depreciation (196) (40,613) - (40,809) Finance costs - (1,054) - (1,054) (124,604) (518,441) (216,523) (859,568) EBITDA Segment loss before income tax REPORTABLE SEGMENT AUSTRALIA INDONESIA CORPORATE TOTAL PERIOD ENDING 31 DECEMBER 2022 $ $ $ $ Segment revenue - - 463 463 (290,289) (1,088,762) (326,948) (1,705,999) (649) (27,468) - (28,117) EBITDA Depreciation Finance costs Segment loss before income tax (1,212) (2,384) - (3,596) (292,150) (1,118,614) (326,948) (1,737,712) CORPORATE TOTAL Location of revenue, assets and liabilities REPORTABLE SEGMENT AUSTRALIA INDONESIA CONSOLIDATED 31 DECEMBER 2023 $ $ $ $ Revenue - - 4,437 4,437 Non-current assets 2,622,164 25,995,643 - 28,617,807 Segment assets 2,757,761 26,738,202 4,786,334 34,282,297 Segment liabilities (161,160) (1,326,270) - (1,487,430) REPORTABLE SEGMENT CONSOLIDATED 31 DECEMBER 2022 AUSTRALIA INDONESIA CORPORATE TOTAL $ $ $ $ - - 463 463 Non-current assets 1,860,214 18,056,115 - 19,916,329 Segment assets 1,900,683 18,567,797 10,394,312 30,862,792 Segment liabilities (574,924) (1,464,674) - (2,039,598) FAR EAST GOLD LTD 12 Revenue Financial Report for the reporting period ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 4. Trade and other receivables 31 DECEMBER 2023 30 JUNE 2023 $ $ GST receivable 78,018 20,983 Other receivables 134,657 87,346 Total 212,675 108,329 31 DECEMBER 2023 30 JUNE 2023 $ $ Note 5. Other assets Prepayments 665,481 596,971 Total 665,481 596,971 31 DECEMBER 2023 30 JUNE 2023 $ $ Note 6. Exploration and evaluation assets Exploration and evaluation – at cost 27,742,193 25,442,999 Total 27,742,193 25,442,999 31 DECEMBER 2023 30 JUNE 2023 The reconciliation of the written down value for the reporting period is set out below: $ $ Opening balance 25,442,999 15,506,953 Additions 2,299,194 9,936,046 Closing balance 27,742,193 25,442,999 The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent upon successful development and commercial exploitation or sale of the respective areas of interest. Note 7. Trade and other payables 31 DECEMBER 2023 30 JUNE 2023 $ $ Trade payables 1,031,825 1,908,246 Accrued expenses 235,983 224,721 Other payables 70,977 74,277 1,338,785 2,207,244 Total FAR EAST GOLD LTD 13 Financial Report for the reporting period ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 8. Issued Capital & Reserves a. Issued Capital During the period ended 31 December 2023, the Group issued 27,558,000 new shares at a price of $0.25. Transaction costs of $492,020 were incurred in respect of this transaction. b. Reserves 31 DECEMBER 2023 30 JUNE 2023 $ $ Share based payment reserve 1,082,725 956,623 Foreign currency translation reserve (1,250,868) 152,815 (168,143) 1,109,438 31 DECEMBER 2023 30 JUNE 2023 $ $ 956,623 945,154 SHARE BASED PAYMENT RESERVE Total SHARE BASED PAYMENT RESERVE Opening balance Performance rights exercised - (96,508) Options issued 113,257 - Share based payment expense 12,845 107,977 1,082,725 956,623 31 DECEMBER 2023 30 JUNE 2023 $ $ 152,815 27,164 Total FOREIGN CURRENCY TRANSLATION RESERVE Opening balance Foreign currency translation (1,403,683) 125,651 Closing balance (1,250,868) 152,815 Nature and purpose of reserves Share Based Payments Reserve The share-based payments reserve is used to recognise the grant date fair value of performance rights and options issued but not exercised separately within equity. Foreign Currency Translation Reserve (FCTR) The FCTR comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. FAR EAST GOLD LTD 14 Financial Report for the reporting period ended 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 9. Share-based payments On 21 August 2023, 1,000,000 options were issued to a third-party advisory firm for services performed in relation to the capital raising during the period (note 8). The fair value of the options granted was determined using the Black-Scholes option pricing model utilising the key inputs including the Group’s risk free borrowing rate and volatility of the Group’s shares. The fair value is appraised at the grant date and excludes the impact of non-market vesting conditions. Options issued in lieu of services FAIR VALUE OF FAIR VALUE SHARE-BASED AWARDED DURING AWARD DATE AND EXPIRY OF THE EXERCISE RISK EXPECTED EXPENSES FOR THE HALF YEAR VESTING DATE DATE AWARDED OPTIONS PRICE FREE RATE VOLATILITY THE PERIOD 1,000,000 21/08/2023 21/08/2026 $0.113 $0.40 3.93% 75.99% $113,257* *Expense recognised as share transaction costs in equity. Note 10. Events after the reporting date On 21 February 2024, the Company entered into Deeds of Amendment for the up-front Earn-in Agreements with the vendors of the Hill 212 Gold Project, Bluegrass Creek Gold Project and Mount Clark West Copper Gold Project. Under the terms of these Deeds of Amendment the parties agreed that the Company will retain its 90% interest in the projects without any further specified expenditure obligations and the vendors will retain their free-carry to completion of the Feasibility Study at which point the vendors may elect to take a 2% Net Smelter Royalty and the Company’s interest in the projects will increase to 100% (see the Company’s ASX announcement dated 28 February 2024). On 26 February 2024, the Company entered into a new Earn-in Agreement with the vendors of the Hill 212 Gold Project, Bluegrass Creek Gold Project and Mount Clark West Copper Gold Project to acquire the Reedy Creek project tenement which directly adjoins and links the Hill 212 and Bluegrass Creek projects. Under the terms of this new Earn-in Agreement the parties agreed that the Company has fully acquired a 90% interest in the project without any specified annual or staged expenditure obligations and the vendor has a free-carry to completion of the Feasibility Study at which point the vendors may elect to take a 2% Net Smelter Royalty and the Company’s interest in the Reedy Creek project will increase to 100% (see the Company’s ASX announcement dated 28 February 2024). Other than the matters above, subsequent to the half-year period ended 31 December 2023, there has not arisen between the end of the financial year and the date of this report any other item, transaction, or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to effect significantly the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity, in future financial years. FAR EAST GOLD LTD 15 Financial Report for the reporting period ended 31 December 2023 DIRECTORS’ DECLARATION 1 In the opinion of the directors of Far East Gold Ltd (‘the Company’): (a) the condensed consolidated financial statements and notes that are set out on pages 6 to 15, are in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its performance for the six-month period ended on that date; and ii. complying with Australian Accounting Standards AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Directors. Paul Walker Chairman Dated at Brisbane on 14th day of March 2024. FAR EAST GOLD LTD 16 Financial Report for the reporting period ended 31 December 2023 Independent Auditor’s Review Report To the shareholders of Far East Gold Ltd Report on the Condensed Interim Financial Report Conclusion We have reviewed the accompanying Condensed Interim Financial Report of Far East Gold Ltd. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the Condensed Interim Financial Report of Far East Gold Ltd does not comply with the Corporations Act 2001, including:  giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its performance for the half-year ended on that date; and  complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. The Condensed Interim Financial Report comprises: • Condensed Consolidated statement of financial position as at 31 December 2023; • Condensed consolidated statement of profit or loss and other comprehensive income, Condensed consolidated statement of changes in equity and Condensed consolidated statement of cash flows for the half-year ended on that date; • Notes 1 to 10 comprising material accounting policies and other explanatory information; and • The Directors’ Declaration. The Group comprises Far East Gold Ltd (the Company) and the entities it controlled at the end of the half-year or from time to time during the half-year. Basis for Conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence r