Bluejay Regulatory News (JAY)

29 June 2023

Final Results for the Period ended 31 December 2022 and Notice of General Meeting

Bluejay Mining plc ('Bluejay' or the 'Company'), the AIM, FSE listed and OTCQB traded exploration and development company with projects in Greenland and Finland, is pleased to announce its Final Results for the year ended 31 December 2022 (the 'Period').

2022 Highlights

· 2022 Field Programme at Disko-Nuussuaq Joint Venture ('JV') with Kobold Metals completed

· ERMA announce official support for Dundas

· Electronic Nautical Charts published for Dundas

· 2022 field season completed at Dundas

· Aerial geophysical survey at Kangerluarsuk completed

· 2022 exploration programme at the Enonkoski JV with Rio Tinto completed

· Robert Edwards appointed as Executive Chairman to the Board of the Company

· £5.3m (US$7m) raised through the issuance of new shares to progress the Dundas optimisation

Post Period

· Executive Chairman, Robert Edwards, released a strategic review of Bluejay and its current portfolio of assets and new development strategy

· Positive results from the 2022 airborne geophysical survey at Kangerluarsuk refined existing suite of drill-ready targets

· Drill programme at Enonkoski consisting of follow-up drilling at the Laukunlampi target

· Drilling commenced at Hammaslahti with assays underway

· £1.3 million (US$1.65m) raised through the issuance of shares to new and existing shareholders primarily for the advancement of Hammaslahti

Notice of General Meeting

Bluejay Mining plc, the AIM, FSE and OTCQB traded exploration and development company with projects in Greenland and Finland, is pleased to give notice that its Annual General Meeting ('AGM') will be held on 27 July 2023 at 11:00am at The Washington Mayfair Hotel, 5 Curzon Street, London, W1J 5HE. Copies of the Notice of AGM and the Form of Proxy will be posted to shareholders today and available to view on the Company's website shortly.

Chairman's Statement

During the period under review, Bluejay was able to return to the field for the first time post the COVID-19 pandemic.

Both the Enonkoski Nickel-Copper-Cobalt ('Ni-Cu-Co') JV Project ('Enonkoski') with Rio Tinto in Finland, and the Disko-Nuussuaq Nickel-Copper-Cobalt-Platinum Group Metals (Ni-Cu-Co-PGM) JV Project ('Disko') with KoBold Metals ('KoBold') in Greenland which are both partner-funded, progressed their respective work streams.

Bluejay was also able to complete follow up drilling at the Dundas Ilmenite (Titanium) Project ('Dundas'), as well as progress some valuable study work which the team can utilise to inform other studies that we may undertake in Greenland related to mine delivery.

The year under review also saw the Company assess its strategy, and upon further reflection of the relative merits of the assets within the portfolio and the results achieved to date, Bluejay has enhanced its focus on those assets that its feels offer the best risk/reward profile and most deserve the deployment of shareholders' funds, which is of particular importance in a market environment that is not cyclically supportive for mineral explorers and developers. Our key objective is to enhance shareholder value by developing commercial critical mineral discovery opportunities in Greenland and Finland. I am both encouraged and assured in the knowledge that Bluejay is fortunate to have more than one opportunity within its current asset base to achieve this.

With this new strategy, each project in Bluejay's portfolio will get an equal opportunity to compete for shareholders' funds, so long as they can demonstrate that they have the potential to maximise value for the Company's shareholders.

Where assimilation of synergistic projects can be achieved that enhance and upgrade our current portfolio, we will pursue them providing that there is a strong science and commercial basis to do so. When projects do not meet hurdle rates, they will be classified as non-core and dealt with appropriately.

Through our strategic review published in late 2022, we determined that one of our 100% owned projects, the Hammaslahti Copper-Zinc-Silver-Gold ('Cu-Zn-Ag-Au') Project ('Hammaslahti'), strongly met the technical criteria to be able to drive shareholder value within a relatively short timeframe. Previous work conducted by the Company several years ago delineated the high potential 'E-lode' which is located parallel to historical mine workings. Historically, Hammaslahti produced a total of seven million tonnes of high-grade Cu-Zn-Ag-Au ore between 1971 and 1986, with all ore lodes remaining open at depth. The discovery and expansion of E lode makes for a compelling exploration and development platform.

Another of our 100% owned projects that we feel can be meaningful and is certainly of scale, is the Kangerluarsuk Zinc-Lead-Silver±Cu-Ge ('Zn-Pb-Ag±Cu-Ge') Project ('Kangerluarsuk') in West Greenland. The results of the airborne survey completed in 2022 confirmed management's belief that we are dealing with a large-scale mineralised system. A maiden drilling campaign at Kangerluarsuk was planned for the summer of 2023, however, due to unseasonal and unexpected sea-ice conditions, we were unable to progress on this without potentially incurring additional risks and expenditure.

The Enonkoski Ni-Cu-Co JV Project with Rio Tinto progressed during the period and post period, following the ground gravity survey which commenced in November 2022. This survey showed promising drill targets within the Makkola-Hälvälä target. This was followed up by a diamond drilling programme undertaken at the Laukunlampi intrusion in early 2023. The aim of this drilling programme was to demonstrate the presence of strong metal enrichment of economic grades of nickel, copper, and cobalt.

In the first full exploration field season under the JV structure with Kobold Metals, Disko underwent a significant work programme which aimed to further delineate and define drill targets of merit. The JV maintains its constructive view of Disko and is working collaboratively to work up a sound geological model of the district using the extensive historical data overlain with new perspectives. 

At the corporate level, and after careful consideration, the Board of Bluejay no longer deemed the demerger of the Disko Exploration Ltd. subsidiary and its projects in the best interests of shareholders. Bluejay can achieve more by utilising its existing platform to unify the expertise of its teams in both Greenland and Finland.

During the period, Bluejay also experienced changes in its Board of Directors and I was proudly appointed Executive Chairman on 25 October 2022. Since my appointment we have defined a new strategy on the Company's approach to developing its assets against a particularly challenging market backdrop. I reiterate that Bluejay will never progress a project without a sound strategic and commercial basis to do so.

Moving forward in 2023, Bluejay will continue to use its new strategy to explore and develop its projects with the aim to increase their value to maximise value for its shareholders.

Greenland

During the Period, the first major exploration campaign commenced at the Disko-Nuussuaq JV project. This campaign targeted massive nickel, copper, cobalt, and platinum group metals. This included 4,500 line-kilometre ('line-km') of aerial geophysical survey, 2,115 line-km of a high-resolution drone magnetic survey and a 3,030 line-km Falcon Airborne Gravity Gradiometer survey and 3,572 geochemical samples.

The geochemical samples, geophysical data and mapping data from the exploration campaign are currently being integrated alongside existing data and interpreted by KoBold's team utilising its AI platforms. More data was gathered than originally expected during the 2022 season which has prolonged the analysis time required. The final interpretation of the data will allow the Joint-Venture to prioritise the ratification of mineralisation targets and will form the basis of future work.

Our 100% owned Kangerluarsuk Zn-Pb-Ag±Cu-Ge Project experienced significant development, with an aerial geophysical survey that covered 587 line-km of gravity gradiometry, magnetic data and terrain data during the period. The positive results of the aerial survey were fully processed in the fourth quarter of 2022 and have greatly improved the Company's confidence in what are now drill ready targets. This is supported by multiple independent datasets that indicate the presence of sulphide mineralisation and the outcropping of high-grade mineralisation within our licence area.

Historical chip samples results of 41.1% zinc and 45.5% lead and grab samples of 9.3% lead, 1.2% copper and 596 grams per tonne ('g/t') silver confirm that we have a very high potential district under our control, hosting what we believe to be a major Palaeoproterozoic sedimentary basin immediately to the house and hosted within this basin is the former Black Angel zinc-lead-silver mine which produced 11 million tonnes of ore grading at 12.6% zinc, 4.1% lead and 29 g/t silver for its former operators, Cominco (now Teck Resources) and Boliden.

Furthermore, the Geological Survey of Denmark and Greenland ('GEUS') has acknowledged Kangerluarsuk as containing the strongest cluster of stream sediment zinc anomalies in Greenland, with samples up to 2,200 parts per million zinc.

Because of the exciting characteristics Bluejay had allocated part of the proceeds of the up-to US$6 million Subscription from Towards Net Zero completed in February 2022, for developing the Kangerluarsuk project through a summer drilling campaign, scheduled for 2023.

However, due to unseasonal and unexpected weather conditions, sea-ice was formed in the fjord leading towards Kangerluarsuk which prevented the Company from safely operating in the project area on time and on budget. Because of this, we were unable to continue with the maiden drilling campaign. Kangerluarsuk Zn-Pb-Ag±Cu-Ge Project remains one of the high priority assets for value creation and we will replan and resume the campaign when it is feasible to do so.

Our understanding of Dundas Ilmenite Project was also advanced significantly during the period, with the publishing of the Electronic Nautical Charts, conducted by the Danish firm, Geodata, which covers the seaward approach and coastal waters. Dundas also received official support from the European Raw Material Alliance ('ERMA'). Of the £5.3 million of fresh equity raised in March 2022 by the Company, £2.2 million was spent on the summer drilling programme at Dundas. We expect to receive the revised Mineral Resource Estimate relatively soon.

Consistent with the new strategy as outlined in the Chairman's Review of late 2022, the Company's aim is to present a more realisable way to develop the Dundas project.

Finland

The Enonkoski Ni-Cu-Co JV Project with Rio Tinto also progressed during the period under review and into 2023 with exploration programmes and surveys revealing new drilling targets.

Between May and July 2022 there was a follow-up drilling programme at Muhelampi, with a total of three new diamond drill holes, and one drill hole extension, that drilled a total of 1,648.20 metres ('m'). This was followed by downhole electromagnetic surveys of selected drill holes and a top bedrock drill programme that consisted of 60 holes, focused on new targets and infill sampling at the targets tested by the 2021 top of bedrock sampling.

In November 2022 a ground gravity survey was conducted at the Makkola-Hälvälä target in the south-eastern part of the 15km Enonkoski Ni-Cu-Co Project area. The survey consisted of 670 survey stations with 50m station spacing and 50-100m line spacing, conducted with the aim to generate new drilling targets. The survey was completed in December and revealed several new drill targets of interest at the Laukunlampi intrusion, where Bluejay conducted its first exploration programme that consisted of 1,000-1,500m of follow-up drilling.

The results of the first exploration programme at Enonkoski were very encouraging and have increased the Company's confidence in the project area. One of the drill holes returned significant intervals of nickel sulphide-droplets and represents the highest sulphide content of any hole that has been drilled in the Laukunlampi intrusion to date and has thus extended the potential search space in the area.

Post Period, a total of 951m was drilled out of the planned 1,000-1,500m campaign, and will be followed-up by another drilling programme that consists of a single drill depth of 400m. The aim of this follow-up drilling programme is to further test the current geological model, which indicates that the pyroxenitic units (a favourable rock type in the Laukunlampi intrusion that hosts Ni-Cu-Co mineralisation) continue to the north-west.

Hammaslahti Cu-Zn-Ag-Au Project received focussed development post period. A 2,000m drill programme conducted on the E-Lode, confirmed the continuity of the high-grade Cu-Zn-Pb-Au-Ag ore lode. Further indication of the high-grade mineralisation present at Hammaslahti is the presence of polymetallic mineralisation which is interpreted to be a partially re-mobilised volcanogenic massive sulphide ("VMS").

The historical high-grade production, coupled with the presence of polymetallic mineralisation, indicates the potential of the project to enhance shareholder value. In accordance with the Company's new strategy, Bluejay has raised £1.3 million in June 2023 to further the development of Hammaslahti specifically to generate a Mineral Resource Estimate ("MRE") at the E-Lode. The conditional divestment of the Company's Black-Shales assets to Metals One continues.

Financial

In February 2023, Bluejay announced an equity subscription where up to US$6 million would be received from Towards Net Zero ("TNZ"), consisting of three tranches of US$2 million. However, shortly following the receipt of the first tranche, the Company took the decision with the pragmatic agreement from TNZ to terminate the arrangement. The decision to return US$2 million of capital in April 2023 was not taken lightly but was driven by the view that the original benefits of the structure were outweighed by the risks created by entering into it in the first place, and a simpler funding route was pursued thereafter.

In June 2023, the company successfully raised US$1.7million in new equity from new and importantly existing shareholders to further the development of Hammaslahti Cu-Zn-Ag-Au Project instead, following the unforeseen weather conditions that prevented workable access to Kangerluarsuk. These funds will immediately go towards finalising a MRE on Hammaslahti's E-Lode as well as General Corporate purposes.

In recognition that current shareholders have already borne a significant burden of risk in the past, Bluejay is in discussions with two strategic entities with complimentary attributes which we believe have the ability to strengthen both the financial and technical capabilities of the business as we explore and develop our portfolio of projects. This is aimed to both financially derisk the business as well as create a unique and powerful combination of skills.

Outlook

Despite a volatile economic and market environment, critical minerals are essential to the global energy transition, and Bluejay is uniquely positioned to play a pivotal role in helping to secure a global sustainable supply of these essential minerals. The official support for Dundas from the ERMA further indicates just how strongly Bluejay is positioned to help supply the critical minerals required to aid the green energy transition and other key industries. Moreover, because Bluejay operates in jurisdictions that are both well-endowed from a mineralogical perspective, are mining friendly and also unlikely to undergo political instability or threaten our ownership rights, we are confident that we will succeed in achieving our goal.

To help with our goal of securing a global, sustainable, supply of critical minerals, we have secured and maintained strong relationships with globally significant partners. We have received significant support from the Greenlandic and Danish government, as well as partnerships with Rio Tinto, KoBold Metals and an Asian Master Distribution partner for Dundas. In total, these partnerships have seen approximately US$40 million contractually committed to a number of its projects and will help Bluejay significantly advance its portfolio of assets up the value curve.

Located 12km north of the former high-producing Black Angel Zn-Pb-Ag Mine, Kangerluarsuk Zn-Pb-Ag±Cu-Ge Project represents huge potential for Bluejay and the opportunity to maximise shareholder value. With the results from our surveys and geological work, we believe that Kangerluarsuk can maximise value for shareholders, and are immensely enthusiastic about the upcoming drilling programme at the project.

Our ability to pivot and focus on other promising projects when events arise that are out of our control speaks volumes of the strength of Bluejay's project portfolio.

I look forward to updating shareholders on the development of Hammaslahti and will provide an update on the maiden drilling programme at Kangerluarsuk when we have a clearer timeline of when we are able to commence drilling.

I would like to thank all who have supported our endeavours in Greenland and Finland, and our shareholders for their faith in the long-term potential embedded within the Bluejay proposition as we continue to progress our strategic goals. The communities, strategic partners and the Bluejay team itself have been immensely supportive in our efforts to develop the Company's projects, and their hard work has created an exciting opportunity this season at Hammaslahti.

I look forward to the rest of the year and seeing the progression of our projects, especially Hammaslahti, as we move them higher up the value curve and continue to realise value from our new strategy.

Robert Edwards

Executive Chairman

STATEMENTS OF FINANCIAL POSITION

As at 31 December 2022

The Company has elected to take the exemption under Section 408 of the Companies Act 2006 from presenting the Parent Company Income Statement and Statement of Comprehensive Income. The profit for the Company for the year ended 31 December 2022 was £1,784,303 (loss for year ended 31 December 2021: £3,486,819).

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2022

COMPANY STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2022

STATEMENTS OF CASH FLOWS

For the year ended 31 December 2022

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

1. General information

The principal activity of Bluejay Mining plc (the 'Company') and its subsidiaries (together the 'Group') is the exploration and development of precious and base metals. The Company's shares are listed on the AIM market of the London Stock Exchange and the open market of the Frankfurt Stock Exchange. The Company is incorporated and domiciled in England.

The address of its registered office is 6 Heddon Street, London W1B 4BT.

2. Summary of significant Accounting Policies

The principal Accounting Policies applied in the preparation of these Consolidated Financial Statements are set out below. These Policies have been consistently applied to all the periods presented, unless otherwise stated.

2.1. Basis of preparation of Financial Statements

The Group and Company Financial Statements have been prepared in accordance with UK-adopted International Accounting Standards (UK adopted IAS) in accordance with the requirements of the Companies Act 2006. The Consolidated Financial Statements have also been prepared under the historical cost convention, except as modified for assets and liabilities recognised at fair value on business combination.

The Financial Statements are presented in Pound Sterling rounded to the nearest pound.

The preparation of financial statements in conformity with UK-adopted IAS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Accounting Policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Consolidated Financial Statements are disclosed in Note 4.

2.2. New and amended standards

(1) New and amended standards mandatory for the first time for the financial periods beginning on or after 1 January 2022

The IASB issued various amendments and revisions to UK IAS and IFRSIC interpretations which include IFRS 3 - Reference to Conceptual Framework, IAS 37 - Onerous Contracts, IAS 16 - Proceeds before intended use, IAS 8 - Accounting estimates and Annual Improvements - 2018 - 2020 Cycle. The amendments and revisions were applicable for the period ended 31 December 2022 but did not result in any material changes to the financial statements of the Group or Company.

ii) New standards, amendments and interpretations in issue but not yet effective or not yet endorsed and not early adopted

Standards, amendments and interpretations that are not yet effective and have not been early adopted are as follows:

The Group is evaluating the impact of the new and amended standards above which are not expected to have a material impact on the Group's results or shareholders' funds

2.3. Basis of Consolidation

The Consolidated Financial Statements comprise the financial statements of the Company and its subsidiaries made up to 31 December. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

· The contractual arrangement with the other vote holders of the investee;

· Rights arising from other contractual arrangements; and

· The Group's voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

a) Subsidiaries

Subsidiaries are entities over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Investments in subsidiaries are accounted for at cost less impairment within the parent company financial statements. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by other members of the Group. All significant intercompany transactions and balances between Group enterprises are eliminated on consolidation.

b) Joint Venture

A joint venture (JV) is a joint arrangement in which the parties that share joint control have rights to the net assets of the arrangement. Joint arrangements are accounted for using the equity method of accounting and are initially recognised at cost. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The aggregate of the Group's share of profit or loss of the JV is shown on the face of the statement of profit or loss and other comprehensive income as part of operating profit and represents profit or loss after tax. The financial statements of the JV are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in the JV. At each reporting date, the Group determines whether there is objective evidence that the investment in the JV is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the JV and its carrying value, then recognises the loss as 'Share of profit of a joint venture' in the statement of profit or loss and other comprehensive income.

c) Reimbursement of the costs of the operator of the joint arrangement

When the Group, acting as lead operator or manager of a joint arrangement, receives reimbursement of direct costs recharged to the joint arrangement, such recharges represent reimbursements of costs that the operator incurred as an agent for the joint arrangement and therefore have no effect on profit or loss. When the Group charges a management fee (based on a fixed percentage of total costs incurred for the year) to cover other general costs incurred in carrying out the activities on behalf of the joint arrangement, it is not acting as an agent. Therefore, the general overhead expenses and the management fee are recognised in the statement of profit or loss and other comprehensive income as an expense and income, respectively. The amount of income does not represent revenue from contracts with customers. Instead, it represents income

from collaborative partners and hence is outside scope of IFRS 15.

2.4. Going concern

The Consolidated Financial Statements have been prepared on a going concern basis. The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement and the Strategic Report.

As at 31 December 2022, the Group had cash and cash equivalents of £1,996,957. The Directors have prepared cash flow forecasts to 30 June 2024, which take account of the cost and operational structure of the Group and Parent Company, planned exploration and evaluation expenditure, licence commitments and working capital requirements. These forecasts indicate that the Group and Parent Company's cash resources are not sufficient to cover the projected expenditure for the period for a period of 12 months from the date of approval of these financial statements. These forecasts indicate that the Group and Parent Company, in order to meet their operational objectives, and meets their expected liabilities as they fall due, will be required to raise additional funds within the next 12 months.

In common with many exploration and evaluation entities, the Company will need to raise further funds within the next 12 months in order to meet its expected liabilities as they fall due, and progress the Group into definitive feasibility and then into construction and eventual production of revenues. The Directors are confident in the Company's ability to raise additional funds as required, from existing and/or new investors, within the next 12 months. The Company has demonstrated its access to financial resources, as evidenced by the successful completion of a Placing in March 2022 with an equity raising of £5,379,999. 

Given the Group and Parent Company's current cash position and its demonstrated ability to raise capital, the Directors have a reasonable expectation that the Group and Parent Company has adequate resources to continue in operational existence for the foreseeable future. 

Notwithstanding the above, these circumstances indicate that a material uncertainty exists that may cast significant doubt on the Group and Parent Company's ability to continue as a going concern and, therefore, that the Group and Parent Company may be unable to realise their assets or settle their liabilities in the ordinary course of business. As a result of their review, and despite the aforementioned material uncertainty, the Directors have confidence in the Group and Parent Company's forecasts and have a reasonable expectation that the Group and Parent Company will continue in operational existence for the going concern assessment period and have therefore used the going concern basis in preparing these consolidated and Parent Company financial statements.

2.5. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

2.6. Foreign currencies

(a) Functional and presentation currency

Items included in the Financial Statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the 'functional currency'). The functional currency of the UK parent entity and UK subsidiary is Pound Sterling, the functional currency of the Finnish subsidiaries is Euros and the functional currency of the Greenlandic subsidiaries is Danish Krone. The Financial Statements are presented in Pounds Sterling which is the Company's functional and Group's presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where such items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

(c) Group companies

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

· assets and liabilities for each period end date presented are translated at the period-end closing rate;

· income and expenses for each Income Statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and

· all resulting exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities, and of monetary items receivable from foreign subsidiaries for which settlement is neither planned nor likely to occur in the foreseeable future, are taken to other comprehensive income. When a foreign operation is sold, such exchange differences are recognised in the Income Statement as part of the gain or loss on sale.

2.7. Intangible assets

Exploration and evaluation assets

The Group recognises expenditure as exploration and evaluation assets when it determines that those assets will be successful in finding specific mineral resources. Expenditure included in the initial measurement of exploration and evaluation assets and which are classified as intangible assets relate to the acquisition of rights to explore, topographical, geological, geochemical and geophysical studies, exploratory drilling, trenching, sampling and activities to evaluate the technical feasibility and commercial viability of extracting a mineral resource. Capitalisation of pre-production expenditure ceases when the mining property is capable of commercial production.

Exploration and evaluation assets are recorded and held at cost

Exploration and evaluation assets are not subject to amortisation, as such at the year-end all intangibles held have an indefinite life, but are assessed annually for impairment. The assessment is carried out by allocating exploration and evaluation assets to cash generating units ('CGU's'), which are based on specific projects or geographical areas. The CGU's are then assessed for impairment using a variety of methods including those specified in IFRS 6.

Whenever the exploration for and evaluation of mineral resources in cash generating units does not lead to the discovery of commercially viable quantities of mineral resources and the Group has decided to discontinue such activities of that unit, the associated expenditures are written off to the Income Statement.

Exploration and evaluation assets recorded at fair-value on business combination

Exploration assets which are acquired as part of a business combination are recognised at fair value in accordance with IFRS 3. When a business combination results in the acquisition of an entity whose only significant assets are its exploration asset and/or rights to explore, the Directors consider that the fair value of the exploration assets is equal to the consideration. Any excess of the consideration over the capitalised exploration asset is attributed to the fair value of the exploration asset.

2.8. Investments in subsidiaries and joint venture

Investments in Group undertakings are stated at cost, which is the fair value of the consideration paid, less any impairment provision.

Additional contributions by the JV Partner which increase the net assets in the joint venture, are shown as "increase in share of net assets" in the Income Statement. This is a non-cash adjustment and is to retain the Group's ownership in the Joint Venture at 49%.

2.9. Property, plant and equipment

Property, Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided on all property, plant and equipment to write off the cost less estimated residual value of each asset over its expected useful economic life on a straight line basis at the following annual rates:

Office Equipment - 5 years

Machinery and Equipment - 5 to 15 years

Software - 2 years

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. If an impairment review is conducted following an indicator of impairment, assets which are not able to be assessed for impairment individually are assessed in combination with other assets within a cash generating unit.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within 'Other (losses)/gains' in the Income Statement.

2.10. Impairment of non-financial assets

Assets that have an indefinite useful life, for example, intangible assets not ready to use, and goodwill, are not subject to amortisation and are tested annually for impairment. Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

2.11. Financial assets

(a) Classification

The Group classifies its financial assets at amortised cost and at fair value through the profit or loss or OCI. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

(b) Recognition and measurement

Amortised cost

Regular purchases and sales of financial assets are recognised on the trade date at cost - the date on which the Group commits to purchasing or selling the asset. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred, and the Group has transferred substantially all of the risks and rewards of ownership. 

Fair value through the profit or loss

Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at FVTPL.

Financial assets at FTVPL, are measured at fair value at the end of each reporting period, with any fair value gains or losses recognised in profit or loss. Fair value is determined by using market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the 'fair value hierarchy'):

- Level 1: Quoted prices in active markets for identical items (unadjusted)

- Level 2: Observable direct or indirect inputs other than Level 1 inputs

- Level 3: Unobservable inputs (i.e. not derived from market data).

The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur.

(c) Impairment of financial assets

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original EIR. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables (not subject to provisional pricing) and other receivables due in less than 12 months, the Group applies the simplified approach in calculating ECLs, as permitted by IFRS 9. Therefore, the Group does not track changes in credit risk, but instead, recognises a loss allowance based on the financial asset's lifetime ECL at each reporting date.

The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows and usually occurs when past due for more than one year and not subject to enforcement activity.

At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

(d) Derecognition

The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. This is the same treatment for a financial asset measured at FVTPL.

2.12. Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group's financial liabilities include trade and other payables and loans.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss and other comprehensive income.

Trade and other payables

After initial recognition, trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss and other comprehensive income.

Derecognition

A financial liability is derecognised when the associated obligation is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in profit or loss and other comprehensive income.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Financial liabilities included in trade and other payables are recognised initially at fair value and subsequently at amortised cost.

2.13. Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand.

2.14. Equity

Equity comprises the following:

· "Share capital" represents the nominal value of the Ordinary shares;

· "Share Premium" represents consideration less nominal value of issued shares and costs directly attributable to the issue of new shares;

· "Other reserves" represents the merger reserve, foreign currency translation reserve, redemption reserve and share option reserve where;

o  "Merger reserve" represents the difference between the fair value of an acquisition and the nominal value of the shares allotted in a share exchange;

o  "Foreign currency translation reserve" represents the translation differences arising from translating the financial statement items from functional currency to presentational currency;

o  "Reverse acquisition reserve" represents a non-distributable reserve arising on the acquisition of Finland Investments Limited;

o  " Capital redemption reserve" represents a non-distributable reserve made up of share capital;

o  "Share option reserve" represents share options awarded by the group;

· "Retained earnings" represents retained losses.

2.15. Share capital, share premium and deferred shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity, as a deduction, net of tax, from the proceeds provided there is sufficient premium available. Should sufficient premium not be available placing costs are recognised in the Income Statement.

Deferred shares are classified as equity. Deferred shares have no rights to receive dividends, or to attend or vote at general meetings of the Company and are only entitled to a return of capital after payment to holders of new ordinary shares of £100,000 per each share held.

2.16. Share based payments

The Group operates a number of equity-settled, share-based schemes, under which the Group receives services from employees or third party suppliers as consideration for equity instruments (options and warrants) of the Group. The fair value of the third party suppliers' services received in exchange for the grant of the options is recognised as an expense in the Income Statement or charged to equity depending on the nature of the service provided. The value of the employee services received is expensed in the Income Statement and its value is determined by reference to the fair value of the options granted:

· including any market performance conditions;

· excluding the impact of any service and non-market performance vesting conditions (for example, profitability or sales growth targets, or remaining an employee of the entity over a specified time period); and

· including the impact of any non-vesting conditions.

The fair value of the share options and warrants are determined using the Black Scholes valuation model.

Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense or charge is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the entity revises its estimates of the number of options that are expected to vest based on the non-market vesting conditions. It recognises the impact of the revision to original estimates, if any, in the Income Statement or equity as appropriate, with a corresponding adjustment to a separate reserve in equity.

When the options are exercised, the Group issues new shares. The proceeds received, net of any directly attributable transaction costs, are credited to share capital (nominal value) and share premium when the options are exercised.

2.17. Taxation

No current tax is yet payable in view of the losses to date.

Deferred tax is recognised using the liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets (including those arising from investments in subsidiaries), are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Deferred income tax assets are recognised on deductible temporary differences arising from investments in subsidiaries only to the extent that it is probable the temporary difference will reverse in the future and there is sufficient taxable profit available against which the temporary difference can be used.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Deferred tax is calculated at the tax rates (and laws) that have been enacted or substantively enacted by the statement of financial position date and are expected to apply to the period when the deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets and liabilities are not discounted.

3. Financial risk management

3.1. Financial risk factors

The Group's activities expose it to a variety of financial risks: market risk (foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance. None of these risks are hedged.

Risk management is carried out by the London based management team under policies approved by the Board of Directors.

Market risk

(a) Foreign currency risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the Euro, Danish Krone and the British Pound. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

The Group negotiates all material contracts for activities in relation to its subsidiaries in either British Pounds, Euros, USD or Danish Krone. The Group does not hedge against the risks of fluctuations in exchange rates. The volume of transactions is not deemed sufficient to enter into forward contracts as most of the foreign exchange movements result from the retranslation of inter company loans. The Group has sensitised the figures for fluctuations in foreign exchange rates, as the Directors acknowledge that, at the present time, the foreign exchange retranslations have resulted in rather higher than normal fluctuations which are separately disclosed, and is predominantly due to the exceptional nature of the Euro exchange rate in the last two years in the current economic climate. Further detail is in note 3.3.

(b) Price risk

The Group is not exposed to commodity price risk as a result of its operations, which are still in the exploration phase. The Directors will revisit the appropriateness of this policy should the Group's operations change in size or nature.

The Group has exposure to equity securities price risk, as it holds listed equity investments.

Credit risk

Credit risk arises from cash and cash equivalents as well as outstanding receivables. Management does not expect any losses from non-performance of these receivables. The amount of exposure to any individual counter party is subject to a limit, which is assessed by the Board.

The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.

Liquidity risk

In keeping with similar sized mineral exploration groups, the Group's continued future operations depend on the ability to raise sufficient working capital through the issue of equity share capital or debt. The Directors are reasonably confident that adequate funding will be forthcoming with which to finance operations. Controls over expenditure are carefully managed.

With exception to deferred taxation, financial liabilities are all due within one year.

3.2. Capital risk management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern, to enable the Group to continue its exploration and evaluation activities, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the issue of shares or sell assets to reduce debts.

At 31 December 2022 the Group had borrowings of £nil (31 December 2021: £nil) and defines capital based on the total equity of the Company. The Group monitors its level of cash resources available against future planned exploration and evaluation activities and may issue new shares in order to raise further funds from time to time.

Given the Group's level of debt versus its cash at bank and cash equivalents, the gearing ratio is immaterial.

3.3. Sensitivity analysis

On the assumption that all other variables were held constant, and in respect of the Group and the Company's expenses the potential impact of a 10% increase/decrease in the UK Sterling:Euro and UK Sterling:DKK Foreign exchange rates on the Group's loss for the period and on equity is as follows:

4. Critical accounting estimates and judgements

The preparation of the Financial Statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the period. Actual results may vary from the estimates used to produce these Financial Statements.

Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Items subject to such estimates and assumptions, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial years, include but are not limited to:

Impairment of intangible assets - exploration and evaluation costs

Exploration and evaluation costs have a carrying value at 31 December 2022 of £31,850,128 (2021: £27,922,589) Such assets have an indefinite useful life as the Group has a right to renew exploration licences and the asset is only amortised once extraction of the resource commences. Management tests for impairment annually whether exploration projects have future economic value in accordance with the accounting policy stated in Note 2.7. Each exploration project is subject to an annual review by either a consultant or senior company geologist to determine if the exploration results returned during the period warrant further exploration expenditure and have the potential to result in an economic discovery. This review takes into consideration long term metal prices, anticipated resource volumes and supply and demand outlook. In the event that a project does not represent an economic exploration target and results indicate there is no additional upside a decision will be made to discontinue exploration; an impairment charge will then be recognised in the Income Statement.

Useful economic lives of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets, taking into account that the assets are not used throughout the whole year due to the seasonality of the licence locations. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets. See note 6 for the carrying amount of the property plant and equipment and note 2.9 for the useful economic lives for each class of assets.

Share based payment transactions

The Group has made awards of options and warrants over its unissued share capital to certain Directors as part of their remuneration package. Certain warrants have also been issued to shareholders as part of their subscription for shares and suppliers for various services received. In the year ended 31 December 2022, 17,000,000 share options were issued during the year to Robert Edwards.

The valuation of these options and warrants involves making a number of critical estimates relating to price volatility, future dividend yields, expected life of the options and forfeiture rates. These assumptions have been described in more detail in Note 15.

5. Segment information

Management has determined the operating segments based on reports reviewed by the Board of Directors that are used to make strategic decisions. During the period the Group had interests in three geographical segments; the United Kingdom, Greenland and Finland. Activities in the UK are mainly administrative in nature whilst the activities in Greenland and Finland relate to exploration and evaluation work.

The Group had no turnover during the period.

6. Property, plant and equipment

Depreciation expense of £369,714 (31 December 2021: £460,713) for the Group has been charged in administration expenses.

Depreciation expense of £19,312 (31 December 2021: £83,645) for the Company has been charged in administration expenses.

7. Intangible assets

Intangible assets comprise exploration and evaluation costs. Exploration and evaluation assets are measured at cost. Once the pre-production phase has been entered into, the exploration and evaluation assets will cease to be capitalised and commence amortisation.

The Dundas project in Greenland has a current JORC compliant mineral resource of 117 million tonnes at 6.1% ilmenite (in-situ). Exploration projects in Finland and the Disko project in Greenland are at an early stage of development and there are no JORC (Joint Ore Reserves Committee) or non-JORC compliant resource estimates available to enable value in use calculations to be prepared. The Directors therefore undertook an assessment of the following areas and circumstances that could indicate the existence of impairment:

• The Group's right to explore in an area has expired, or will expire in the near future without renewal;

• No further exploration or evaluation is planned or budgeted for;

• A decision has been taken by the Board to discontinue exploration and evaluation in an area due to the absence of a commercial level of reserves; or

• Sufficient data exists to indicate that the book value will not be fully recovered from future development and production.

Following their assessment, the Directors concluded that no impairment charge was required at 31 December 2022.

8. Investments in subsidiary undertakings

Investments in Group undertakings are stated at cost, which is the fair value of the consideration paid, less any impairment provision.

Subsidiaries

All subsidiary undertakings are included in the consolidation.

The proportion of the voting rights in the subsidiary undertakings held directly by the parent company do not differ from the proportion of ordinary shares held.

9. Trade and other receivables

The fair value of all receivables is the same as their carrying values stated above.

At 31 December 2022 all trade and other receivables were fully performing. No ageing analysis is considered necessary as the Group has no significant trade receivable receivables which would require such an analysis to be disclosed under the requirements of IFRS 7. None of the amounts above are overdue or impaired.

The carrying amounts of the Group and Company's trade and other receivables are denominated in the following currencies:

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The Group does not hold any collateral as security.

10.  Cash and cash equivalents

All of the UK entities cash at bank is held with institutions with an AA- credit rating. The Finland and Greenland entities cash at bank is held with institutions whose credit rating is unknown.

The carrying amounts of the Group and Company's cash and cash equivalents are denominated in the following currencies:

11.  Trade and other payables

Trade payables include amounts due of £397,302 in relation to exploration and evaluation activities.

The carrying amounts of the Group and Company's trade and other payables are denominated in the following currencies:

12.  Deferred tax

An analysis of deferred tax liabilities is set out below.

The Group has additional capital losses of approximately £8,661,772 (2021: £8,704,033) and other losses of approximately £6,955,765 (2021: £7,234,636) available to carry forward against future taxable profits. No deferred tax asset has been recognised in respect of these tax losses because of uncertainty over the timing of future taxable profits against which the losses may be offset.

13.  Financial Instruments by Category

14.  Share capital and premium