Great Western Regulatory News (GWMO)

Great Western Mining Corporation PLC

("Great Western", "GWM" or the "Company")

Half Yearly Report and Unaudited Condensed Financial Statements

Financial Highlights:

· Loss for period €427,590 (30 June 2020: loss of €487,441)

· Basic and diluted loss per share 0.0001 cent: (30 June 2020: 0.0004 cent)

· Net assets at 30 June 2021: €8,711,124 (30 June 2020: €6,449,718)

· Issue of new shares raised £1,085,400 (€1,250,449)

· Strong cash position at date of this report

Operational Highlights:

· Completion of first ever drilling at the Rock House Group

o Six holes drilled at the Southern Alteration Zone ("SAZ") totalling 1,685 feet (515 metres)

· Completion of first-phase drilling programme for gold and silver at the Olympic Gold Project

o Eleven holes across four target areas

· Appointment of Gemma Cryan as a Non-Executive Director

o Adding extensive background in mineral exploration and geology 

· Test results indicate gravity separation to be a viable production method for processing material from Mineral Jackpot spoil heaps

· 51 spoil heaps now identified covering 14,000m²

· Consultant Metallurgist engaged to prepare specifications and detailed costing for proposed processing operations

Post period End:

· Results of Trafalgar Hill and West Ridge drilling programme

o High grade intercepts of up to 8.90 grams/tonne gold achieved

o Drilling results support the potential for target expansion

· Rock House and Olympic Gold Drilling Results

o Major gold breakthrough at Rock House in virgin territory

o Best intercepts of 8.02 grams gold per tonne and 2.29 grams gold per tonne

o Continuation of OMCO vein mineralisation identified at Olympic Gold east of faulted zone

Brian Hall, Executive Chairman, commented: "This was an extremely productive period for the Company as we made significant progress across a number of our projects, with drilling and subsequent results highlighting the potential for precious metals over our large portfolio of assets in Nevada. We are focused on fast-tracking the exploitation of precious metals to achieve early gold and silver sales and are well funded both to extend our drill programme and to finance the first phase of a processing plant for spoil heap material."

For Further Information:

Interim Report

For the six months to 30 June 2021

Please find herewith Great Western Mining Corporation PLC's half year, unaudited financial statements for the period ended 30 June 2021. Great Western is a mineral exploration and development company which is not yet generating revenues and is therefore reporting a net loss for the period of €427,590 (30 June 2020: €487,441; 31 December 2020: €852,042), reflecting a reduction on administrative expenses over the comparative period. The Company has no borrowings or other debt beyond creditors in the normal course of business and at the period end, net current assets were €8.7 million.

During the period, the Company raised approximately £1.1 million cash through the issue of new shares, providing the flexibility to extend its exploration activity beyond its firm 2021 drilling programme.

The Company has a land position of approximately 60km² in the prolific Walker-Lane trend in Mineral County, Nevada where it has already established an inferred copper resource and is currently focusing its attention on the potential for commercial deposits of gold and silver. The Covid pandemic has created some challenges, particularly for Trans-Atlantic travel and availability of local labour, but the Company has generally been able to meet them successfully and proceed with its active exploration programme largely unhindered, with the finance in place to do so.

Drilling Operations

During the year to date, Great Western has completed a 17-hole, 3,000 metre drill programme in pursuit of precious metals, covering four separate prospects as well as sub-prospects. Although the Company has previously carried out extensive drilling for copper and established a copper resource, the 2021 drill programme is the first that it has undertaken specifically for precious metals and the results have been very encouraging.

Prospects drilled so far this year are: Trafalgar Hill (Olympic Gold Project), OMCO Mine Area and OMCO Mine Extension (Olympic Gold Project), West Hill (Olympic Gold Project) and Southern Alteration Zone (Rock House Group of Prospects) with best assay results of 8.90 grams/tonne Au at Trafalgar Hill and 8.02grams/tonne Au at the Southern Alteration Zone. All the prospects that have now been drilled merit follow-up drilling, plans for which are now firm but start of which will depend on rig availability in a currently very tight market.

In 2020, Great Western acquired an option to purchase the Olympic Gold Project for a total cost of $250,000 payable over 4 years together with a royalty over future production and the options of (1) prepaying to complete an earlier acquisition or (2) relinquishing at any time during the 4-year option period. In the 16 months since this agreement was signed, the Company has moved forward rapidly to explore the area and it has now become a core component of the asset portfolio, which the Board believes holds great potential for the Company. In May 2021, the Company paid the first anniversary option payment of $25,000 to extend the agreement for another year.

The Rock House Group had never been drilled until this year and its prospectivity was worked up by the Company's team based on satellite imagery, followed by soil sampling, trenching and desktop studies. As such this was quite high a risk venture but yielded reportable grades of gold in all six holes, with two holes delivering good grades.

The remaining phase 1 drill projects for this year, at Mineral Jackpot and the M4 copper prospect, depend on the availability of a track-mounted reverse circulation rig which the Company has identified, to overcome access problems.

Processing Operations

At the end of 2020 the Company produced a small doré bar from spoil heaps at one of the five old, abandoned gold and silver mines which make up the Mineral Jackpot Group, proving the viability of recovering precious metals from spoil heaps close to the Mineral Jackpot group of mines. As a result of further measurements during 2021, the number of spoil heaps identified has been increased to 51 and the estimate of the area covered by those spoil heaps increased to approximately 14,000m². A load of the same material was air-freighted to a specialised laboratory in the UK for a 4-month analysis which concluded that precious metals could most effectively be recovered via a relatively simple gravity processing method. A consultant metallurgist engaged by the Company has now provided detailed design and economics for this plant which will most likely be simplified to produce a concentrate for sale to a refinery, rather than pouring precious metals in a remote location with associated high security risks.

Surface samples from the spoil heaps are currently being analysed in a laboratory to verify the viability of the planned processing operation. An outstanding issue is the proposed upgrade of part of a mountain road which will enable a suitable rig to access the site for exploration drilling and the upgraded road but which would also enable delivery of material from spoil heaps for the proposed processing operations.

The Company also has access to significant tailings at the Olympic Gold Project, left over from producing operations at the OMCO Mine, together with a stockpile of material which has never been processed. Again, surface samples from the tailings are currently being analysed in a laboratory and a two-man portable rig will be used to drill the tailings in order to obtain more detailed assay results and to determine the volume of the heap. Initial indications suggest that a cyanide-leaching procedure could produce a profitable revenue stream for the Company from the tailings in the future, while the stockpile of unprocessed material could potentially be amalgamated with the Mineral Jackpot gravity separation project.

Gold mines take time to develop but the tailings, spoil heaps and stockpiles represent materials which have already been mined and Great Western is seeking to exploit these assets to achieve early revenues in the most effective and economical way.

Copper Projects

On the Black Mountain group of claims, the Company has already generated an inferred resource of 4.3 million tonnes copper at a grade of 0.45%, through approximately 5,000 metres of drilling. The Board considers that there is potential for a major copper porphyry on its claims but that it is too large a project for the Company to carry on its own. It is therefore actively seeking a larger partner to join this venture, with the financial and technical resources to take it to the next stage. At East Mine claims, which have been identified as another potential copper target, the Company is waiting on contractor availability to conduct an induced polarisation survey.

Other exploration activities

During the period, the Company completed a magnetometer survey over the accessible part of Mineral Jackpot and has located a drone survey company to conduct an aerial magnetometer survey over the less accessible portion of the acreage. The drone survey, merged with the land-based magnetometer survey already completed, will provide a greatly enhanced picture of the various prospects at Mineral Jackpot.

Corporate

Earlier this month Great Western held an Investor-meet-Company online session to ensure better shareholder engagement and this means of communication is expected to be repeated. The session was based around an updated Company presentation which is available on www.greatwesternmining.com. The presentation sets out not only the work currently in progress but also contains an appendix which describes all the Company's inventory of multiple prospects for gold, silver and copper, including those on which work has yet to commence.

The Company is pleased to welcome Ms. Gemma Cryan to the Board as a non-executive director, an experienced Mineral Exploration Geologist who serves as Geology Manager at Greatland Gold PLC and is an executive director at Starvest PLC, a mining investment company. As the Company has a small team, the strong support of the non-executive directors is invaluable to management and during the short time Gemma Cryan has been with the Company, she has already made an important contribution to its activities.

Looking ahead, the next phase of drilling is ready to start as soon as suitable rigs become available in the current tight market post-Covid. Plans will be developed for processing existing mined materials as soon as possible, with updates being provided as milestones are reached.

The Board would like to thank shareholders for their continuing support and will ensure that regular communications are provided around significant developments.

Unaudited Condensed Consolidated Income Statement

For the six months to 30 June 2021

All activities derived from continuing operations. All losses are attributable to the owners of the Company.

Unaudited Condensed Consolidated Statement of Other Comprehensive Income

For the six months to 30 June 2021

Unaudited Condensed Consolidated Statement of Financial Position

For the six months to 30 June 2021

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2021

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2021

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months to 30 June 2021

Unaudited Condensed Consolidated Statement of Cash Flows

For the six months to 30 June 2021

Unaudited Notes to the Condensed Financial Statements

For the six months to 30 June 2021

1. General information

Great Western Mining Corporation PLC ("the Company") is a company domiciled in the Republic of Ireland. The Half Yearly Report and Unaudited Condensed Consolidated Financial Statements ('the half yearly financial statements') of the Company for the six months ended 30 June 2021 comprise the results and financial position of company and its subsidiaries ("the Group").

The Group half yearly financial statements were authorised for issue by the Board of Directors on 29 September 2021.

Basis of preparation

The half yearly financial statements for the six months ended 30 June 2021 are unaudited. The financial information presented herein does not amount to statutory financial statements that are required by Chapter 4 part 6 of the Companies Act 2014 to be annexed to the annual return of the company. The statutory financial statements for the financial year ended 31 December 2020 were annexed to the annual return and filed with the Registrar of Companies. The audit report on those financial statements was unqualified.

The Group half yearly financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

The financial information contained in the half yearly financial statements have been prepared on the historical cost basis, except for the decommissioning provision, share-based payments and warrants, which are based on fair values determined at the grant date. The accounting policies have been applied consistently in accordance with the accounting policies set out in the annual report and financial statements for the year ended 31 December 2020 except as outlined below.

Accounting policies

The accounting policies adopted are consistent with those of the annual Financial Statements for the year ended 31 December 2020. New and amended standards that became applicable for the Group in the current reporting period have not resulted in changes to accounting policies or retrospective adjustments.

Use of estimates and judgements

The preparation of half-yearly financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

In particular, significant areas of estimation uncertainty in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following area:

• Note 13 - Share based payments

• Note 14 - Share warrants - financial liability

In particular, significant areas of critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following areas:

• Note 7 - Property, plant and equipment; consideration of impairment

• Note 8 - Intangible asset; consideration of impairment

• Note 11 - Trade and other payables - Decommissioning provision.

2. Going concern

The financial statements of the Group are prepared on a going concern basis.

In order to assess the appropriateness of the going concern basis in preparing the financial statements for the six months ended 30 June 2021, the Directors have considered a time period of at least twelve months from the date of approval of these financial statements.

The Group incurred an operating loss during the half-year ended 30 June 2021. As the Group is not generating revenues, an operating loss is expected for the next twelve months. However at the balance sheet date, the Group had cash and cash equivalents amounting to €2.71 million which includes approximately €1.18 million raised in the period which the Board considers will enable the Group to meet continuing operating expenditure and the planned work programme.

The future of the Company is dependent on the successful outcome of its exploration activities and implementation of revenue-generating operations. The Directors believe that the Group's ability to make additional capital expenditure on its claims interests in Nevada can be assisted if necessary by raising additional capital or from future revenues. The Directors have taken into consideration the Company's successful completion of placings and the exercise of warrants by warrant holders during 2020 and 2021 to provide additional cash resources.

The Directors have concluded that the Group will have sufficient resources to continue as a going concern for the period of assessment period of not less than 12 months from the date of approval of the unaudited condensed consolidated financial statements without material uncertainties. Accordingly, the unaudited condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments that would be necessary if this basis were inappropriate.

3. Segment information

The Group has one principal reportable segment, Nevada, USA, which represents the exploration for and development of copper, silver, gold and other minerals in Nevada, USA.

Other operations are disclosed under "Corporate Activities" which includes cash resources held by the Group and other operational expenditure incurred by the Group. These assets and activities are not within the definition of an operating segment.

In the opinion of the Directors the operations of the Group comprise one class of business, being the exploration and development of copper, silver, gold and other minerals. The Group's main operations are located within Nevada, USA. The information reported to the Group's chief executive officer (the Executive Chairman), who is the chief operating decision maker, for the purposes of resource allocation and assessment of segmental performance is particularly focussed on the exploration activity in Nevada.

It is the opinion of the Directors, therefore, that the Group has only one reportable segment under IFRS 8 'Operating Segments', which is exploration carried out in Nevada. Other operations "Corporate Activities" includes cash resources held by the Group and other operational expenditure incurred by the Group. These assets and activities are not within the definition of an operating segment.

Information regarding the Group's results, assets and liabilities is presented below.

Segment results

Segment assets

Segment liabilities

The Group operates in three principal geographical areas - Republic of Ireland (country of residence of Great Western Mining Corporation PLC), Nevada, U.S.A. (country of residence of Great Western Mining Corporation, Inc., a wholly owned subsidiary of Great Western Mining Corporation PLC) and the United Kingdom (country of residence of GWM Operations Limited, a wholly owned subsidiary of Great Western Mining Corporation PLC).

The Group has no revenue. Information about the Group's non-current assets by geographical location are detailed below:

4. Finance income

5. Income tax

The Group has not provided any tax charge for the six months periods ended 30 June 2021 and 30 June 2020 or the year ended 31 December 2020. The Group has accumulated losses which are expected to exceed profits earned for the foreseeable future.

6. Loss per share

Basic earnings per share

The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:

Diluted earnings per share

There were no potentially dilutive ordinary shares that would increase the basic loss per share.

7. Property, plant and equipment

8. Intangible assets

The Directors have reviewed the carrying value of the exploration and evaluation assets. These assets are carried at historical cost and have been assessed for impairment in particular with regards to the requirements of IFRS 6 'Exploration for and Evaluation of Mineral Resources' relating to remaining licence or claim terms, likelihood of renewal, likelihood of further expenditures, possible discontinuation of activities over specific claims and available data which may suggest that the recoverable value of an exploration and evaluation asset is less than carrying amount. The Directors also considered other factors in assessing potential impairment including cash available to the Group, commodity prices and markets, taxation and regulatory regime, access to equipment and services and the impact of Covid-19 restrictions. The Directors are satisfied that no impairment is required as at 30 June 2021. The realisation of the intangible assets is dependent on the successful identification and exploitation of copper, silver, gold and other mineral in the Group's licence area. This is dependent on several variables including the existence of commercial mineral deposits, availability of finance and mineral prices.

9. Trade and other receivables

All amounts above are current and there have been no impairment losses during the period (30 June 2019: €Nil, 31 December 2020: €Nil).

10. Cash and cash equivalents

For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash in hand, in bank and bank deposits with maturity of less than three months.

11. Trade and other payables

The Group has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

12. Share capital