Greatland Gold Regulatory News (GGP)

Notes

Year ended

30 June 2017

£

Year ended

30 June 2016

£

Revenue

2

-

-

Exploration costs

(557,848)

(145,232)

Administrative expenses

(694,186)

(518,894)

Operating loss

(1,252,034)

(664,126)

Finance revenue

1,500

1,223

Loss before taxation

3

(1,250,534)

(662,903)

Income tax expense

4

-

-

Loss for the year

(1,250,534)

(662,903)

Other comprehensive income

Exchange differences on translation of foreign operations

29,240

45,444

Other comprehensive income for the year net of taxation

29,240

45,444

Total comprehensive income for the year attributable to equity holders of the parent company

(1,221,294)

(617,459)

Loss per share - basic and diluted

8

(0.07) pence

(0.06) pence

Note

30 June 2017

30 June 2016

£

£

£

£

ASSETS

Non-current assets

Tangible assets

9

-

8,058

Intangible assets

10

671,515

332,154

671,515

340,212

Current assets

Cash and cash equivalents

Trade and other receivables

17

12

930,500

51,793

883,478

88,429

Total current assets

982,293

971,907

TOTAL ASSETS

1,653,808

1,312,119

LIABILITIES

Current liabilities

Trade and other payables

13

(118,829)

(68,131)

TOTAL LIABILITIES

(118,829)

(68,131)

NET ASSETS

1,534,979

1,243,988

EQUITY

Called-up share capital

Share premium reserve

Share based payment reserve

14

15

1,091,598

7,042,627

328,060

1,041,614

5,720,907

277,533

Retained earnings

(7,223,363)

(6,062,883)

Other reserves

296,057

266,817

TOTAL EQUITY

1,534,979

1.243.988

Alex Borrelli

Chairman

Gervaise Heddle

Chief Executive Officer

£

£

£

£

£

£

£

£

£

Note

30 June 2017

30 June 2016

£

£

£

£

ASSETS

Non-current assets

Investment in subsidiary

11

50,000

50,000

Current assets

Cash and cash equivalents

Trade and other receivables

17

12

910,588

1,293,411

852,348

533,114

Total Current Assets

2,203,999

1,385,462

TOTAL ASSETS

2,253,999

1,435,462

LIABILITIES

Current Liabilities

Trade and other payables

13

(98,963)

(61,795)

TOTAL LIABILITIES

(98,963)

(61,795)

NET ASSETS

2,155,036

1,373,667

EQUITY

Called-up share capital

Share premium reserve

Share based payment reserve

14

15

1,091,598

7,042,627

328,060

1,041,614

5,720,907

277,533

Merger reserve

225,000

225,000

Retained earnings

(6,532,249)

(5,891,387)

TOTAL EQUITY

2,155,036

1,373,667

Alex Borrelli

Chairman

Gervaise Heddle

Chief Executive Officer

£

£

£

£

£

-

-

Notes

Year ended

30 June 2017

£

Year ended

30 June 2016

£

Cash (out)flows from operating activities

Operating loss

Decrease/(Increase) in trade & other receivables

Increase(Decrease) in trade & other payables

Depreciation

Share option charge

Salary sacrifice charge

(1,252,034)

36,637

50,698

1,405

140,580

-

(664,126)

(40,162)

(106,920)

3,323

217,533

83,000

Net (decrease) in cash and cash equivalents from operations

(1,022,714)

(507,352)

Cash in/(out)flows from investing activities

Interest received

Disposal of fixed assets

Payments to acquire intangible assets

1,500

7,251

(319,011)

1,223

-

-

Net cash in/(out)flows used in investing activities

(310,260)

(1,223)

Cash inflows from financing activities

Proceeds from issue of shares

Transaction costs of issue of shares

1,409,679

(37,975)

660,000

(23,000)

Net cash flows from financing activities

1,371,704

637,000

Net increase in cash and cash equivalents

17

38,730

130,871

Cash and cash equivalents at the beginning of period

883,478

748,117

Exchange gain/(loss) on cash and cash equivalents

8,292

4,490

Cash and cash equivalents at end of period

17

930,500

883,478

Notes

Year ended

30 June 2017

£

Year ended

30 June 2016

£

Cash flows from operating activities

Operating loss

Decrease/(Increase) in trade & other receivables

Increase/(Decrease) in trade & other payables

Share option charge

Salary sacrifice charge

(731,074)

49,703

37,168

140,581

-

(542,191)

(53,012)

(18,393)

217,533

83,000

Net (decrease) in cash and cash equivalents from operations

(503,622)

(313,063)

Cash in/(out)flows from investing activities

Interest received

Loans to subsidiary

158

(810,000)

100

(175,000)

Net cash (outflows) used in investing activities

(809,842)

(174,900)

Cash inflows from financing activities

Proceeds from issue of shares

Transaction costs of issue of shares

1,409,679

(37,975)

660,000

(23,000)

Net cash flows from financing activities

1,371,704

637,000

Net increase in cash and cash equivalents

17

58,240

149,037

Cash and cash equivalents at the beginning of period

852,348

703,311

Cash and cash equivalents at end of period

17

910,588

852,348

1

Principal accounting policies

1.1

Authorisation of financial statements and statement of compliance with IFRS

The group financial statements of Greatland Gold plc for the year ended 30 June 2017 were authorised for issue by the board on 24th October 2017 and the balance sheets signed on the board's behalf by Mr Gervaise Heddle and Mr Alex Borrelli. Greatland Gold plc is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on AIM.

The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The Company's financial statements have been prepared in accordance with IFRS as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The principal accounting policies adopted by the Group and Company are set out below.

Adoption of new and revised Accounting Standards

In the current year, the Company has adopted all of the new and revised standards and interpretations issued by the Accounting Standards and Interpretations Board that are relevant to its operations and effective for the current reporting period and there is no material impact on the financial statements of the group or company.

1.2

Significant accounting judgments, estimates and assumptions

Significant accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

Impairment of goodwill and intangibles with indefinite useful lives

The Group determines whether goodwill and intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash-generating units to which the goodwill and intangibles with indefinite useful lives are allocated.

Share-based payment transactions

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black-Scholes model.

1.3

Basis of preparation

The consolidated financial statements of Greatland Gold plc and its subsidiary have been prepared in accordance with International Reporting Standards (IFRS) as adopted for use in the European Union.

The consolidated financial statements have been prepared on the historical cost basis, except for the measurement to fair value of assets and financial instruments as described in the accounting policies below, and on a going concern basis.

Going Concern

The consolidated entity has incurred a loss before tax of £1,250,534 for the year ended 30 June 2017, and had a net cash outflow of £1,332,974 from operating and investing activities. At that date there were net current assets of £863,464. The loss resulted almost entirely from exploration costs and associated administrative related costs.

The Directors are confident in the Company's ability to raise new finance from stock markets if this is required during 2018 and the Group has demonstrated a consistent ability to do so. This includes a share issuance of 166,666,667 placing shares for gross proceeds of £750,000 and 271,928,572 shares as a result of warrant conversions for proceeds of £958,107 since the 2017 financial year-end.

Therefore, as at 17 October 2017 a total of 438,595,539 shares have been issued since 30 June 2017 raising net total proceeds of £1,663,107.

The Group's cash flow forecast for the 12 months ending 31 October 2018 highlights adequate funding at current levels of projected expenditure to last well into 2019. The Board of Directors are confident that sufficient funding is in place to meet all its operational and exploration commitments over the next twelve months and to remain cash positive for the whole period.

Given the Group's current positive cash position and its ability to raise new capital the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.

1.4

Basis of consolidation

The consolidated accounts combine the accounts of the Company and its sole subsidiary, Greatland Pty Ltd, using the purchase method of accounting.

In the Company's balance sheet the investment in Greatland Pty Ltd includes the nominal value of shares issued together with the cash element of the consideration. As required by the Companies Act 2006, no premium was recognised on the share issue. The difference between nominal and fair value of the shares issued was credited to the merger reserve.

1.5

Goodwill

Goodwill on acquisition is capitalised and shown within fixed assets. Positive goodwill is subject to annual impairment review with movements charged in the income statement.

Negative goodwill is reassessed by the Directors and attributed to the relevant assets to which it relates.

1.6

Non-current asset investments

Investments in subsidiary companies are classified as non-current assets and included in the balance sheet of the Company at cost at the date of acquisition irrespective of the application of merger relief under the Companies Act.

1.7

Cash and cash equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

1.8

Income tax and deferred taxation

Current tax assets and liabilities for the current and prior periods are measured as the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the balance sheet date.

Full provision is made for deferred taxation resulting from timing differences which have arisen but not reversed at the balance sheet date.

1.9

Tangible fixed assets

Fixed assets are depreciated on a straight-line basis at annual rates that will reduce the book amounts to estimated residual values over their anticipated useful lives as follows:

· Motor vehicles: 25% per annum

· Equipment: 7% per annum

1.10

Foreign currencies

Both the functional and presentational currency of Greatland Gold plc is sterling (£). Each group entity determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

The functional currency of the foreign subsidiary, Greatland Pty Limited, is Australian Dollars (A$).

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement.

On consolidation of a foreign operation, assets and liabilities are translated at the balance sheet rates, income and expenses are translated at rates ruling at the transaction date. Exchange differences on consolidation are taken to the income statement.

1.11

Other income

The Group had no other income during the periods ending 30 June 2017 and 30 June 2016. Previous years consisted of a grant from the state government of Western Australia. Government grants are accounted for on a receipts basis.

1.12

Finance costs/revenue

Borrowing costs are recognised as an expense when incurred.

Finance revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

1.13

Trade and other receivables

Trade receivables, which generally have 30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts.

An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.

1.14

Financial instruments

The Group's financial instruments, other than its investments, comprise cash and items arising directly from its operation such as trade debtors and trade creditors. The Group has an overseas subsidiary in Australia whose expenses are denominated in Australian Dollars. Market price risk is inherent in the Group's activities and is accepted as such.

There is no material difference between the book value and fair value of the Group's cash.

1.15

Trade and other payables

Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.

1.16

Earnings per share

Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:

· costs of servicing equity (other than dividends) and preference share dividends;

· the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and

· other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

1.17

Exploration and development expenditure

Exploration and development costs include expenditure on prospects at an exploratory stage. These costs include the cost of acquisition, exploration, determination of recoverable reserves, economic feasibility studies and all technical and administrative overheads directly associated with those projects. A substantial proportion of these costs are carried forward in the balance sheet as intangible fixed assets.

Recoupment of capitalised exploration and development costs is dependent upon successful development and commercial exploitation of each area of interest and are amortised over the expected commercial life of each area once production commences. The Company adopts the 'area of interest' method of accounting whereby a substantial proportion of exploration and development costs relating to an area of interest are capitalised and carried forward until abandoned. In the event that an area of interest is abandoned, or if the Directors consider the expenditure to be of no value, accumulated exploration costs are written off in the financial year in which the decision is made. All expenditure incurred prior to approval of an application is expensed with the exception of refundable rent which is raised as a debtor.

Impairment reviews are carried out regularly by the Directors of the Company. Where a project is abandoned or is considered not to be of commercial value to the Company, the related costs are written off or provisions are made.

1.18

Share based payments

The fair value of options granted to directors and others in respect of services provided is recognised as an expense in the profit and loss account with a corresponding increase in equity reserves - the share based payment reserve.

On exercise or cancellation of share options, the proportion of the share based payment reserve relevant to those options is transferred to the profit and loss account reserve. On exercise, equity is also increased by the amount of the proceeds received.

The fair value is measured at grant date charged in the accounting period during which the option becomes unconditional.

The fair value of options is calculated using the Black-Scholes model taking into account the terms and conditions upon which the options were granted. Vesting conditions are non-market and there are no market vesting conditions. The exercise price is fixed at the date of grant and no compensation is due at the date of grant.

2

Revenue and segmental analysis

The Group's prime business segment is mineral exploration.

The Group operates within two geographical segments, the United Kingdom and Australia. The UK sector consists of the parent company which provides administrative and management services to the subsidiary undertaking based in Australia.

The following tables present revenue and loss information and certain asset and liability information by geographical segments:

UK

Australia

Total

Year ended 30 June 2017

£

£

£

Revenue

Total segment revenue

-

-

-

Total consolidated revenue

-

Result

Segment results

(731,074)

(520,960)

(1,252,034)

Loss before tax and finance costs

Interest receivable

Loss on disposal of investments

(1,252,034)

1,500

-

Loss before taxation

Taxation expense

(1,250,534)

-

Loss after taxation

(1,250,534)

Year ended 30 June 2017

UK

£

Australia

£

Total

£

Assets and liabilities

Segment assets

948,698

705,110

1,653,808

Total assets

1,653,808

Segment liabilities

(98,964)

(19,865)

(118,829)

Total liabilities

(118,829)

Other segment information

Capital expenditure

-

319,130

319,130

Depreciation

-

1,405

1,405

UK

Australia

Total

Year ended 30 June 2016

£

£

£

Revenue

Total segment revenue

-

-

-

Total consolidated revenue

-

Result

Segment results

(542,192)

(121,934)

(664,126)

Loss before tax and finance costs

Interest receivable

(664,126)

1,223

Loss on disposal of investments

-

Loss before taxation

Taxation expense

(662,903)

-

Loss after taxation

(662,903)

Year ended 30 June 2016

UK

£

Australia

£

Total

£

Assets and liabilities

Segment assets

940,161

371,958

1,312,119

Total assets

1,312,119

Segment liabilities

(61,795)

(6,335)

(68,130)

Total liabilities

(68,130)

Other segment information

Capital expenditure

-

-

-

Depreciation

-

3,323

3,323

3

Loss on ordinary activities before taxation

2017

£

2016

£

Loss on ordinary activities before taxation is stated after charging:

Auditors' remuneration - audit

Depreciation

Directors' emoluments

15,000

1,405

391,725

15,000

3,323

293,026

Auditors' remuneration for audit services above excludes AU$5,100 (2016: AU$5,100) charged by Charles Foti (Australia) relating to the audit of the subsidiary company.

4

Taxation

2017

2016

Analysis of charge in year

£

£

Tax on profit on ordinary activities

-

-

Factors affecting tax charge for year

The differences between the tax assessed for the year and the standard rate of corporation tax are explained as follows:

2017

2016

£

£

Loss on ordinary activities before tax

(1,250,534)

(662,903)

Standard rate of corporation tax in the UK

20%

20%

£

£

Loss on ordinary activities multiplied by the standard rate of corporation tax

(250,107)

(132,581)

Effects of:

Expenses not deductible for tax:

Share option charge

42,174

43,507

Future tax benefit not brought to account

207,933

89,074

Income tax expense

-

-

No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits against which they can be recovered.

5

Employee information (excluding directors)

Staff costs comprised:

2017

£

2016

£

Wages and salaries

-

-

Number

Number

Administration

-

-

6

Dividends

No dividends were paid or proposed by the Directors. (2016: £Nil)

7

Directors' emoluments:

2017

£

2016

£

Directors' remuneration

391,725

293,026

Directors' fees

Consultancy fees

Share options cancelled

Payment for Fair Value of Options

Share options granted

Pro rata shares issued: salary sacrifice

Total

2017

£

£

£

£

£

£

£

Executive directors

C N Baxter

Gervaise Heddle

Non-executive directors

Alex Borrelli

Michael McNeilly (appointed 10 February 2017)

Paul Johnson (resigned 14 August 2016)

A R M Bell (resigned 14 August 2016)

-

-

-

-

-

-

93,750

110,750

28,500

13,088

-

-

-

-

-

-

-

-

-

-

-

-

-

-

28,018

28,018

14,009

13,342

-

-

18,000

-

13,125

-

13,125

18,000

139,768

138,768

55,634

26,430

13,125

18,000

-

246,088

-

-

83,387

62,250

391,725

2016

£

£

£

£

£

£

£

Executive directors

C N Baxter

Gervaise Heddle

Non-executive directors

Alex Borrelli

Paul Johnson

A R M Bell

J Watkins

6,000

-

-

-

6,000

6,000

71,250

2,250

-

-

10,500

9,000

(40,000)

-

-

-

(10,000)

(10,000)

-

-

-

-

-

2,000

37,864

67,820

37,864

37,864

37,864

-

6,000

-

4,375

4,375

6,000

-

81,114

70,070

42,239

42,239

50,364

7,000

18,000

93,000

(60,000)

2,000

219,276

20,750

293,026

On 6 April 2016 the Company's directors proposed to swap a proportion of their salary for the next twelve months in exchange for shares in the Company. Under this proposal, a total of 47,428,570 shares at 0.175 pence per share were issued at a cost of £83,000. Of this amount £62,250 has been expensed during the year and £20,750 was expensed in the previous year.

No pension benefits are provided for any director.

Also, see note 21 for related party transactions

8

Loss per share

The basic loss per share is derived by dividing the loss for the period attributable to ordinary shareholders by the weighted average number of shares in issue.

2017

£

2016

£

Loss for the period

(1,250,534)

(662,903)

Weighted average number of Ordinary shares of £0.001 in issue

Loss per share - basic

1,694,378,384

(0.07) pence

1,049,314,266

(0.06) pence

Weighted average number of Ordinary shares of £0.001 in issue inclusive of outstanding options

1,694,378,384

1,049,314,266

As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive; as such, a diluted earnings per share is not included.

9

Motor vehicle

Equipment

Total

£

£

£

28,008

4,792

32,800

(30,086)

-

(5,148)

-

(35,234)

-

2,078

356

2,434

-

-

-

Disposals during the period

21,736

(24,753)

3,006

(3,230)

24,742

(27,983)

1,405

-

1,405

1,612

224

1,836

-

-

-

-

-

-

6,272

1,786

8,058

Motor vehicle

Equipment

Total

£

£

£

24,639

4,216

28,855

-

-

-

-

-

-

3,369

576

3,945

28,008

4,792

32,800

Disposals during the period

15,862

-

2,612

-

18,474

-

3,290

33

3,323

2,584

361

2,945

21,736

3,006

24,742

6,272

1,786

8,058

8,777

1,604

10,381

10

2017

£

2016

£

962,948

319,130

20,231

1,302,309

(630,794)

-

-

(630,794)

671,515

332,154

11

£

12

2017

£

2016

£

2017

£

2016

£

Current trade and other receivables:

Prepayments

Other debtors

Loans due from subsidiary

38,109

13,684

-

87,813

616

-

38,109

-

1,255,302

87,813

-

445,301

1,293,411

533,114

The loan due from subsidiary was interest free throughout the period, and has no fixed repayment date. No provision £nil (2016: £nil) has been made against this loan.

13

2017

£

2016

£

2017

£

2016

£

Trade creditors

Accruals

89,012

29,817

22,047

46,084

69,146

29,817

15,711

46,084

98,963

61,795

14

Called up, allotted, issued and fully paid

Number

£

1,485,099,848

1,041,614

146,249,997

50,000,000

125,000,000

15,000,000

25,000,000

13,333,333

8,928,571

36,333,332

8,000,000

50,000,000

5,000,000

17,000,000

14,625

5,000

12,500

1,500

2,500

1,333

893

3,633

800

5,000

500

1,700

1,984,945,081

1,091,598

Total share options in issue

15

The Company has an employee share option plan to enable the issue of options as part of the remuneration of key management personnel and directors to enable them to purchase ordinary shares in the Company. Under the plan, 75 million options were granted for no cash consideration and were granted for a period of three years expiring 18 July 2020. Under the same plan, 14 million options were granted for no cash consideration and were granted for a period of three years expiring on 10 August 2020.

The fair value of the options using the Black-Sholes method and assumptions were as follows:

Furthermore, 25 million share options were granted for no cash consideration to SI Capital Limited, the Company's Broker, for a period of two years expiring on 30 June 2018.

The fair value of the options in respect of the services to be provided using the Black-Sholes

method and assumptions were as follows:

The fair value of the share options expensed during the year was £140,582; £90,054 in respect of the exercised share options was transferred to reserves (2017: £217,533).

The volatility is set by reference to the historic volatility of the share price of the Company. The Black-Sholes model assumes that an option is only capable of exercise at expiry.

16

Nature and purpose of reserves - Other reserves

Merger Reserve

The merger reserve was created in accordance with the merger relief provisions of the Companies Act 1985 (as amended), and 2006, relating to accounting for business combinations involving the issue of shares at a premium. In preparing group consolidated financial statements, the amount by which the fair value of the shares issued exceeded their nominal value was recorded within a merger reserve on consolidation, rather than in a share premium account.

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

Available for sale financial asset reserve

This reserve is used to record the post-tax fair value movements in available for sale assets and investments.

17

Cash and cash equivalents - Group

30 June 2017

£

Currency adjustments

£

Net Cash flow

£

30 June 2016

£

Cash and cash equivalents - Company

30 June 2017

£

Currency adjustments

£

Net Cash flow

£

30 June 2016

£

Cash at bank and in hand

910,588

-

58,240

852,348

Total cash and cash equivalents

910,588

-

58,240

852,348

Cash at bank earns interest at floating rates based on daily bank deposit rates.

Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.

18

Exploration commitments

Ongoing exploration expenditure is required to maintain title to the Group mineral exploration permits. No provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the operations of the Group.

19

Significant agreements and transactions

There were no significant agreements and transactions to report other than that reported in Note 20 (Acquisition of Havieron Project - Western Australia).

20

Events after the reporting period

Subsequent to the end of the reporting period, it was announced that these conditions had been fulfilled and, as a result, on 15 August 2017, Greatland Gold plc issued 65,490,000 fully paid ordinary shares in Greatland Gold plc to Pacific Trends Resources Pty Ltd.

On 17 July 2017 the Company announced that it had received a binding option conversion notice for the conversion of 4,000,000 options at price of 0.2p per share for a total amount of £8,000.

On 03 August 2017 the Company announced that it had received a binding warrant conversion notice for the conversion of 1,600,000 warrants at price of 0.375p per share for a total amount of £6,000.

On 14 August 2017, the Company announced that an application had been made to AIM for a block admission ("Investor Warrants Block Admission scheme") in respect of 305,138,097 new Ordinary Shares, which will be issued and allotted from time to pursuant to the exercise of options under the following schemes: (a) 189,066,668 investor warrants with an exercise price of 0.375 pence per Ordinary Share, and (b) 116,071,429 investor warrants with an exercise price of 0.45 pence per Ordinary Share.

During the period from 14 August 2017 to 20 September 2017, binding option conversion notices were received for 22,500,000 warrants at a price of 0.375p per share for a total amount of £84,375.00. These shares were admitted under the Investor Warrants Block Admission scheme announced 14 August 2017.

On 20 September 2017 the Company announced that it had raised £750,000 through a strategic placing of 166,666,667 new ordinary shares of 0.1 pence each at a subscription price of 0.45 pence per Ordinary Share. Under this placing, warrants to subscribe for a further 166,666,667 new Ordinary Shares in the Company were issued at an exercise price of 0.7p per warrant, within a 24 month exercise period, potentially raising a further £1,166,666 for the Company at 0.7p, should these warrants be exercised.

Subsequent to the placing in September 2017, and following a sharp rise in the Company's share price in October 2017, the Company has at 17 October 2017 received binding warrant conversion notices for the conversion of 271,928,572 warrants at various prices for a total amount of £958,107.

21

The sub licence agreement to share the rental, service costs and other outgoings of an office with Regency Mines plc and Red Rock Resources plc has been effective throughout the year and a fixed fee of £6,000 per quarter, excl. VAT was agreed. The total cost to the Company during the year was £28,800 (2016: £28,800). The current lease arrangement will be terminated at 1 December 2017 and the Company will make alternative office arrangements.

Remuneration of key management personnel

The remuneration of the directors, and other key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS24 Related Party Disclosures.

£

£

Share based payments

Key management personnel

246,088

150,640

26,050

111,000

182,026

-

22

Financial instruments - Group

The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations.

The Group's exposure to currency and liquidity risk is not considered significant. The Group's cash balances are held in Pound Sterling and in Australian dollars, the latter being the currency in which the significant operating expenses are incurred.

To date the Group has relied upon equity funding to finance operations. The Directors are confident that adequate cash resources exist to finance operations to commercial exploitation, but controls over expenditure are carefully managed.

The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements. The currency of the financial assets is as follows:

Cash and short term deposits

30 June 2017

£

30 June 2016

£

Sterling

910,588

852,348

Australian Dollars

19,912

31,130

At 30 June 2017

930,500

883,478

The financial assets comprise interest earning bank deposits.

23

There is considered to be no ultimate controlling entity.

24

As permitted by section 408 of the Companies Act 2006, the profit and loss account of the parent Company has not been separately presented in these accounts. The parent Company loss for the period was £730,916 (2016 £542,091).

The annual report will be made available today on Greatland Gold's website at: http://greatlandgold.com/media/results/. The annual report will also be posted to shareholders in due course.