Rockfire Regulatory News (ROCK)

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

1 June 2021

Rockfire Resources plc

("Rockfire" or the "Company")

Annual Results for the year ended 31 December 2020

Rockfire Resources plc (LON: ROCK), the gold and base metal-focused resource company, announces its audited results for the year ended 31 December 2020.

For further information on the Company, please visit www.rockfireresources.com or contact the following: 

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

The year 2020 has seen Rockfire build the value of its exploration projects in Australia and it is with great pleasure that I present the Annual Report for Rockfire for the financial year ended 31 December 2020.

Despite the restrictions imposed on domestic and international travel during the year, Rockfire has been in a comparatively fortunate position. As a result of having all its field personnel, contractors and consultants based close to our projects in Queensland, the Company has been able to complete a successful and exciting year of growth on both a technical and administrative front.

During the year, a sustained and highly successful drilling programme resulted in a significant increase in gold resources at the Plateau gold deposit, as well as a recent, positive preliminary scoping study. The results obtained from this study provides momentum for a comprehensive infill and extension drilling programme, with the aim of completing an updated scoping study towards the end of 2021.

Our copper projects (Copper Dome & Copperhead) have progressed with helicopter surveys being completed which have highlighted the scale of both projects. As a Board, we believe these projects hold great potential for a significant copper discovery and we look forward to undertaking drilling programmes at these projects during the 2021 calendar year.

In February 2020, the Company appointed Allenby Capital as its sole stockbroker. This has streamlined many administrative matters owing to Allenby also being the Company's nominated adviser. Allenby Capital is one of the most active brokers on AIM, advising more than 60 corporate clients listed on the London Stock Exchange Main Market, AIM or AQSE exchanges.

On 17 July 2020, the Company changed its Registered Office to 201 Temple Chambers, 3-7 Temple Avenue, London, United Kingdom, EC4Y 0DT.

At a general meeting held on 29 September 2020, shareholders voted to amend certain provisions within the Company's Articles of Association (the "Articles") relating to general meetings of the Company. In light of the restricted numbers permitted by social distancing rules, limitations on gatherings and Covid-19 related protocols, the amendments were designed to address the manner in which meetings can be convened, the quorum necessary to hold a general meeting, and the manner in which they can be held. The amended Articles allow the Company to hold physical, hybrid or virtual meetings, at any time in the future, when necessary.

The income statement for the year shows a loss of £719,987 (2019: loss £635,542).

On 29 June 2020, Rockfire raised £1,000,000 gross proceeds through a placement of 117,647,100 ordinary shares at £0.085. A further placement of 64,620,000 ordinary shares at £0.01625 on 29 July 2020, raised £1,000,000 net proceeds.

In July, August and September 2020, the Company announced the exercise of a total of 14,833,334 warrants, raising a total of £148,333.34. These combined funds were used to continue drilling at Plateau, as well as funding helicopter-supported geophysical surveys at Copperhead and Copper Dome projects in Queensland.

Highlights from the 2020 exploration field season include:

· Drilling at Plateau during January 2020 intersected 11 m @ 32.6 g/t Ag

· On-going drilling during February 2020 confirmed that a large mineralised system had been drilled in multiple holes. Broad intersections included 171 m @ 0.4 g/t Au and 170 m @ 0.4 g/t Au

· Gold assays up to 23.4 g/t Au at Bell Rock were found in rocks during May 2020. Bell Rock lies 3.5 km southeast of Plateau

· Drilling at Plateau in June 2020 continued to hit long intervals of gold including 90 m @ 0.8 g/t Au, with a peak value of 1 m @ 11.4 g/t Au

· Further drilling results in August 2020 included 23 m @ 1.0g/t Au within 82 m @ 0.4 g/t Au

· 110 m @ 0.2 g/t Au was announced in September 2020, continuing the very broad intervals of gold mineralisation being intersected at Plateau

· The longest gold intersection so far at Plateau was announced on 6 October 2020, being 341.3 m @ 0.2 g/t Au from surface

· High-grade gold of 0.7 m @ 16.9 g/t Au was intersected in drilling at Plateau at a depth of 380.26 m, demonstrating the continuation of gold at depths approaching 400m from surface

· Silver grades are still being intersected with 5.39 m @ 31.02 g/t Ag announced in November 2020

· A helicopter geophysical survey, completed in December 2020 at the Copperhead porphyry copper project resulted in the exploration target area being doubled in size

On 29 January 2021, the Company announced the overall gold envelope at Plateau (grades above 0.2 g/t Au) is an Indicated and Inferred Mineral Resource of 11.4 Million tonnes @ 0.6 g/t Au and 4.0 g/t Ag for 208,278 ounces of gold and 1.5 Million ounces of silver. This represented a 515% increase in gold ounces since the Company's maiden JORC (2012) Mineral Resource reported previously in July 2019.

Within this envelope and using a higher cut-off (grades above 0.5 g/t Au), the Indicated and Inferred Mineral Resource is 3.9 Million tonnes @ 1.1 g/t Au and 6.4 g/t Ag for 131,302 ounces of gold and 800,000 ounces of silver.

On 8 April 2021, Rockfire announced the results of scoping studies into open cut mining at Plateau. A modest, net positive cash flow, ranging from AUD $6.8m to AUD $19.4m (GBP £3.7m to GBP £10.7m), results from a small- scale, open pit mine, with the range of anticipated cash flows depending on technical and operational variables.

Only the top 70 m was incorporated into the scoping study and the study assumes utilisation of one of the nearby existing processing facilities. Sixty nine percent (69%) of the scoped production originates from JORC Indicated Resources from both the Central and Eastern Breccias. Average mined grades range between 1.26 g/t Au and

1.94 g/t Au from within the optimised pit outlines and a spot gold price of AUD$ 2,220 (US$ 1,718) per ounce was used. The study highlighted important aspects of the drilling density which require infill and extension drilling to increase overall confidence in the technical and economic parameters used in the study.

In May 2021, the Company raised gross proceeds of £850,000 through a placing of 121,429,200 new ordinary shares of 0.1p each. The funds raised are to be used to commence inaugural drilling at the Company's Copper Dome and Copperhead projects, as well as to fund ongoing drilling at the Company's Plateau gold deposit.

Thank you to our shareholders for your continuing support and your vision to see the opportunities being vigorously explored by our technical team. I also extend thanks to my fellow Board members and our staff for their tireless efforts and dedication to ensuring the success of Rockfire.

Gordon Hart 28 May 2021

FOR THE YEAR ENDED 31 DECEMBER 2020

Gordon has over 35 years of experience in the equity capital and financial advisory markets. He has spent the last 12 years as managing director of Venture Group Equities Pty. Ltd, where he has advised on transactions involving over US$300 million of funding. He is a Graduate of the Australian Institute of Company Directors and has a Graduate Diploma in Corporate Governance. Gordon brings a wealth of corporate knowledge, equities and finance expertise and emerging company experience to the Group, having developed an expertise in emerging resource and technology companies which will be invaluable in assisting Rockfire's future development.

David is an experienced geologist and senior executive with 30+ years of experience in the global mining industry and over 20 years' experience in securing funding for exploration projects. David holds the highest category of membership as a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and is a competent person for mineral exploration under the guidelines of the JORC Code. During his career, David has steered several resource projects through the often-convoluted path from exploration, through scoping/feasibility and into the construction funding stage. David has previously held senior roles in both listed and private resource companies including CEO of Golden Tiger Mining Limited, CEO of Convergent Minerals Limited and managing director of Millennium Mining Limited.

Ian has worked in the City of London for more than 40 years, in roles including audit partner, corporate finance partner and equity partner in various accounting firms. Ian is a qualified Chartered Accountant, a Fellow of the Institute of Chartered Accountants in England & Wales and has a Diploma in Corporate Finance. Having worked as equity partner and head of capital markets for Chantrey Vellacott DFK LLP and a senior equity partner for Moore Stephens during the last 25 years, Ian provides Rockfire with a strong level of accounting and audit experience. Such high-level accounting, audit and compliance capability fulfils Rockfire's ambition to broaden its corporate skill base and to bring relevant experience from London onto the Board.

Pat is an experienced resources and industrial company director. In a career spanning over 45 years, he has held senior executive positions with Consolidated Gold Fields (Australia) Limited and Morgan Grenfell Australia Limited. Pat has an MBA in Mineral Economics from Macquarie University, and a B Comm from the University of New South Wales. He has extensive management experience in a range of fields including manufacturing, mineral exploration and oil and gas exploration. Pat is currently executive chairman of Argonaut Resources NL (an ASX-listed copper explorer), Cap-XX Limited and Tamboran Resources Ltd (an unlisted Australian oil and gas explorer). He is also a non-executive director of Ioneer Limited (formerly Global Geoscience, an ASX-listed lithium/boron developer of the Rhyolite Ridge project in Nevada, USA) and Kirrama Resources Limited (an unlisted explorer and developer of chromite and manganese projects in Madagascar).

Nicholas has a business background spanning multiple industries including agriculture, property, construction, plant hire, food and beverage packaging, leisure and charitable work. Importantly, Nicholas has critical skills in logistics, infrastructure, organisational management and sales. The Board believes Nicholas' personal success in business and his knowledge and experience of UK legal requirements will benefit Rockfire in its growth plans.

ACTIVITY REVIEW

Lighthouse - The Plateau Gold Deposit

Early in the exploration field season, Rockfire commenced reverse circulation drilling at the Plateau gold deposit. In late January 2020, the Company announced that drilling had intersected broad sulphide intervals, including a strong sulphide zone (up to 50%) over several metres. This proved to be the beginning of a protracted drilling campaign, with highly encouraging drill results being obtained throughout the year.

On 27 January 2020, it was announced that a program of 1,155 m of reverse circulation drilling in 6 drill holes had been carried out in the early part of the calendar year and all drill holes encountered broad intervals of sulphides. Good drilling/ground conditions enabled the drilling contractor to complete the program ahead of schedule and within budget.

Owing to on-going visual observations of sulphides, the Company elected to drill several additional deep holes to test a geophysical chargeable response. Whilst this drilling was underway, the Company completed a preliminary survey using portable X-Ray Flourescence (XRF) analysis. In particular, significant silver had been recorded in all drill holes. The best results from XRF analysis included:

· 187 m @ 6.3 g/t Ag (from 15 m), including 11 m @ 32.6 g/t Ag (hole BPL025)

· 10 m @ 18.2 g/t Ag (from 56 m), including 4 m @ 35.4 g/t Ag (hole BPL012)

· 36 m @ 5.5 g/t Ag (from 1 m), including 3 m @ 18.8 g/t Ag (hole BPL013)

· 23 m @ 7.1 g/t Ag (from 9 m), including 10 m @ 9.2 g/t Ag (hole BPL016)

· 22 m @ 9.8 g/t Ag (from 0 m), including 8 m @ 18.0 g/t Ag (hole BPL018)

· 8 m @ 36.0 g/t Ag (from 66 m), including 4 m @ 63.3 g/t Ag (hole BPL019)

· 31 m @ 9.7 g/t Ag (from 29 m), including 10 m @ 19.7 g/t Ag (hole BPL020)

In late February 2020, Rockfire announced the final results from all reverse circulation drilling. Drilling had returned extensive intercepts of continuous gold mineralisation, comparable to hole BPL025, which hit 177 m @ 0.5 g/t Au (as announced on 26 November 2019). An important project milestone was announced, with a + 2.0 g/t Au zone being encountered at 145 m downhole.

All drill holes hit gold, expanding Plateau to +200 m long, +70 m wide and +200 m deep. The best gold intervals encountered during drilling included the following intercepts:

· 171 m @ 0.4 g/t Au in hole BPL027 (from 26 m) including 39 m @ 1.0 g/t Au (from 145 m), 11 m @ 2.3 g/t Au (from 145 m) and a peak gold value of 1 m @ 10.05 g/t Au.

· 170 m @ 0.4 g/t Au in hole BPL030 (from 37 m) including 10 m @ 1.0 g/t Au (from 54 m) and 19 m @ 1.0 g/t Au (from 174 m).

These holes resulted in mineralisation being extended more than 100 m east of the previously reported results from drill hole BPL025 of 177 m @ 0.5 g/t Au.

BPL028, drilled as part of the 2020 programme, was a 251 m deep hole which hit mineralisation in the last 10 m of the hole. The bottom of hole averaged 10 m @ 0.3 g/t Au and included 1 m @ 1.7 g/t Au in the very last metre.

During March 2020, the Company announced more long intervals of silver, zinc and lead continued to be encountered in drilling. Silver assays up to almost one and a half ounces per tonne (43.9 g/t Ag) over a 6 m section of drilling, including 1 m @ 113 g/t Ag represent some of the highest silver grades encountered so far at Plateau. The best silver and zinc results included the following:

Silver results

6 m @ 43.9 g/t Ag (from 85 m) including 1 m @ 113 g/t Ag (from 85 m)

203 m @ 3.68 g/t Ag (from 0 m) including 11 m @ 21.5 g/t Ag (from 145 m)

7 m @ 17.46 g/t Ag (from 178 m) Zinc results

10 m @ 1.72 % Zn (from 73 m)

126 m @ 0.31 % Zn (from 96 m) including 6 m @ 1.05 % Zn (from 102 m)

Dr. Gregg Morrison of Klondike Exploration Services, the pre-eminent expert in North Queensland geology analysed the results of the Company's drilling. Mr Morrison developed the multi-element geochemistry classification and zoning model which was used to characterise the Mt Wright Gold Mine. Dr. Morrison reported that he was observing many similarities between Plateau and the early observations at Mt Wright, as detailed below:

· Broad gold zones (0.2 g/t Au to 0.5 g/t Au) in the top 200 m from surface

· Broad lead/zinc/silver (Pb-Zn-Ag) anomalous halo

· Mineralisation is between 60 m and 80 m thick at both deposits

· Similar patterns evident from plotting geochemical ratio "z-scores"

· Breccia and rhyolite are the two main host rock types

· Both deposits are approximately 200 m - 250 m long

· Multiple rhyolite emplacement and multiple mineralising phases

· Alteration by sericite-pyrite-marcasite, with minor quartz-carbonate-sphalerite

· Multielement geochemical zonation is expected to assist high grade gold targeting at depth

On 9 June 2020, Rockfire announced the results of modern, three-dimensional ("3D") reprocessing of aeromagnetic data flown in 2011 by Ramelius Resources at Plateau. From this work, a magnetic target down to and beyond a depth of 600 m was confirmed and a steep easterly plunge of the low-magnetic mineralised rhyolite host was interpreted. Another observation resulting from this work was a rolling, north-south change in dip direction of the rhyolite body. A potentially mineralised "off-shoot pipe" was identified at depth in the southwestern corner of the rhyolite.

The Company announced on 3 August 2020 that reverse circulation drilling at Plateau was continuing to intersect gold values, including some of the highest gold grades to date in the top 200m from surface. A shallow, infill drill hole intersected 90 m @ 0.8 g/t Au (from surface), including 22 m @ 2.0 g/t Au (from 45 m), 43 m @ 1.5 g/t Au (from 35 m) and a peak value of 1 m @ 11.4 g/t Au. Broad intervals of silver were also being encountered including 130 m @ 4.7 g/t Ag from surface.

Reverse circulation drilling was completed in June 2020, and on 19 August 2020, the Company announced that drilling had extended the footprint of gold mineralisation at Plateau and that mineralisation continued to adhere to the Mt Wright model in the upper levels of the mineralising system. In particular, gold mineralisation was extended another 60 m east of all previous drilling within the top 200 m from surface. Gold still remains open towards the east and at depth. A shallow, infill drill hole, (BPL035) intersected 82 m @ 0.4 g/t Au (from surface) including 9 m @ 2.2 g/t Au (from 56 m). The same hole also intersected strong silver results including 6 m @ 32.4 g/t Ag (1.0 oz/t silver).

In late August 2020, diamond drilling commenced at Plateau. On 7 September 2020, Rockfire announced that five diamond drill holes had been completed, with a sixth hole expected to be completed within the coming weeks. A variety of sulphides were reported as being observed in drill core, with percentages varying from trace amounts to levels exceeding 40% of the rock. Rocks being encountered at levels approaching 500 m vertical depth were reported as strongly altered and strongly mineralised with sulphides within the breccia system.

BPL028 was an RC hole drilled in January 2020 at the eastern extremity of the gold zone. This first diamond drill

hole ended with 1.7 g/t Au in the very last sample at the bottom of the hole at 251 m depth. BPL028 was extended deeper with a diamond tail and encountered more broad gold mineralisation including an additional 110.54 m @

0.2 g/t Au (from 337 m). Individual narrow intervals in hole BPL028 peak at 3.43 g/t Au and 5.03 g/t Au at vertical depths of 263 m and 377 m respectively. This hole indicates that the gold mineralising system remains active, open and prospective at depths approaching 400 m from surface. Drill hole BPL028 also encountered elevated silver intervals, including 6.09 m @ 16.5 g/t Ag (from 388.66 m), with a peak silver value of 52.7 g/t Ag. The same hole also encountered an elevated zinc interval of 19.23 m @ 1.05 % Zn from 381.73. The peak zinc value is 4.32

% Zn.

On 6 October 2020, Rockfire announced that the second diamond drill hole (Hole BPL038) at Plateau returned the largest gold intersection so far at Plateau, with mineralisation over the entire sampled interval of 341.3 m @ 0.2 g/t Au (68.26 grams x metre interval). To date, every hole drilled at Plateau has intersected varying grades of gold mineralisation, and often over vast intervals. Intervals of high-grade gold were intersected in hole BPL038, including 0.7m @ 10.8 g/t Au at 341.3 m depth. Hole BPL038 did not penetrate to the planned depth of 500m below surface owing to a change in dip angle of the main brecciated contact. The same hole also encountered elevated silver and zinc intervals with a peak silver value of 24.7 g/t Ag (at 389.44 m) and a peak zinc value of 2.38 % Zn (at

341.00 m).

The results from four additional diamond drill holes at Plateau were announced on 5 November 2020. Gold continues to be intersected in each hole at Plateau, including, for the first time, below 600 m from surface. Higher- grade gold hits (+5 g/t Au) are being encountered more regularly and more frequent intervals of +1.0 g/t gold are being drilled below 400 m depth.

A high-grade gold interval of 0.74 m @ 16.9 g/t Au (half an ounce per tonne) was intersected in diamond hole BPL026, lying within a strong zone of 4.5 m @ 3.0 g/t Au at 380.26 m. This interval lies to the south and outside of the initial gold target zone.

Drill hole BPL041 returned the highest-grade silver ever recorded at Plateau, with an interval of 18.86 m @ 29.7 g/t Ag (1.0 ounce/tonne), including 1.26 m @ 408 g/t silver (13.1 ounces/tonne) from 67.74 m. The same hole also returned an excellent gold interval of 17.0 m @ 1.2 g/t Au, including a high-grade hit of 1 m @ 9.2 g/t Au at 409.0 m below surface.

Hole BPL033, drilled in the opposite direction to all other holes (from south to north) to confirm the dip of the mineralised contact, intersected 0.52 m @ 3.5 g/t Au at 542.13 m depth. This is within a wider interval of 6.45 m @ 0.5 g/t Au, which is interpreted to be splaying off the main gold zone at depth. Hole BPL033 also intersected high-grade silver, with an interval of 5.39 m @ 31.02 g/t Ag, including 1.35 m @ 70.9 g/t Ag (2.3 ounces/tonne).

On 5 November 2020, it was also announced that for the first time at Plateau, drilling had returned an elevated copper interval of 7.98 m @ 0.25 % Cu, 18 g/t Ag, and 0.3 g/t Au in hole BPL040 from 622 m depth. Hole BPL040 is the deepest hole drilled by Rockfire. Hole BPL040 also intersected high-grade silver, with an interval of 2.98 m @ 35.2 g/t Ag. The same hole returned multiple gold intervals, including 3.03 m @ 1.2 g/t Au, intersected more than 600 m below surface.

The + 2.0 g/t Au drilled at depth and the multiple gold intervals provide evidence that the mineralising system continues at depth and that the main source of the gold is yet to be discovered. The presence of very high-grade silver and the appearance of copper are promising changes, indicative of the main source being at depth.

At the end of the field season, Rockfire provided an update on field and related exploration activity on 2 December 2020. During this update, it was announced that geological and mineralisation modelling was in progress to update the JORC resource at Plateau. This process was designed to outline resources for the broad, low-grade halo to the system, as well as the higher-grade gold component identified in drilling. Resources are planned to be estimated for both the Eastern Breccia and the Central Breccia, separated by an unexplored distance of 135 m.

Structural and geological data obtained from diamond drilling during the year at Plateau was digitised, collated, and incorporated into the geological and mineralisation database. This data was provided to Rockfire's structural consultants to model Plateau using fluid pathways, including faults, shears and veins measured in drill core to preferentially align drilling assay results.

Lighthouse - Regional Targets

Split Rock

On 28 April 2020, the Company announced results from rock sampling at the Split Rock prospect, located only 2 km north of the Company's Plateau gold deposit. A gold-copper-nickel-cobalt anomaly was highlighted and may

represent an ultramafic-hosted intrusion. Rock samples returned peak values of 1.0 % Ni, 0.2 % Cu, 510 ppm Co, 0.8 g/t Pt, 0.5 g/t Pd and 0.1 g/t Au. These results represent the highest nickel and cobalt assays from within the Company's Lighthouse tenement so far, with Split Rock being the only prospect within Lighthouse to be analysed for platinum and palladium to date. Historical stream sediment sampling by Penarroya Australia Pty Ltd in 1982 outlined a distinct, circular copper-in-stream anomaly, which led Rockfire's geologists to start sampling in the Split Rock area. Historical soil sampling by Ramelius Resources Ltd in 2012 at an adjacent prospect also covered Split Rock and historical rock sampling by City Resources Ltd was carried out approximately 100m west of Rockfire's sampling program and these rock samples returned 0.3 g/t Au, 3.5 g/t Au and 0.3 % Cu.

Bell Rock

Rockfire announced rock sampling results from the Cardigan Dam prospect, (renamed to "Bell Rock prospect") on 1 June 2020 within the Lighthouse tenement. Bell Rock is 3.5 km southeast of Plateau. The highest gold grades returned from 15 rock samples is 23.4 g/t Au. Nearly 50% of rock samples returned results above 0.5 g/t Au. Other notable rock sample results include 7.3 g/t Au, 5.8 g/t Au, 4.5 g/t Au and 3.6 g/t Au. Two rock samples returned anomalous copper values of 0.14 % and 0.11 % Cu respectively.

Rock sampling at Bell Rock was followed up with the collection of 212 soil samples, with results being announced on 2 December 2020. Strong gold-in-soil assays up to 205 ppb Au (0.2 g/t Au). This soil sampling programme extended soil sampling north of previous soil sampling by Rockfire in 2019.

Jeddah 

Detailed soil sampling was underway over the northern half of the Jeddah gold prospect, also within the Lighthouse tenement and lying 2 km southwest of Plateau. On 2 December 2020, it was announced that a total of 210 soil samples had been collected at Jeddah. Continuous rock chip samples collected by Rockfire in May 2018 had returned promising results of 10 m @ 1.68 g/t Au, 8 m @ 1.23 g/t Au and 5 m @ 1.35 g/t Au, which were being followed up by the current soil sampling.

Copperhead - Porphyry Copper Project

On the 2 December 2020, the Company announced that a helicopter-supported aeromagnetic survey was underway at the Copperhead porphyry copper deposit. Copperhead has a 2 km x 3 km copper-in-soil anomaly, providing a very large tonnage target. There is an historical (non-JORC) mineral content estimate calculated from drilling in 1972 and the survey being flown was aimed defining structural orientations, which is expected to highlight preferential fluid pathways for higher-grade copper.

Marengo

The Company announced in December 2020 that it is seeking expressions of interest from parties to establish a Farm-In and Joint Venture for the Marengo Project in Queensland. Marengo remains prospective, however, Rockfire management has elected to focus financial and human resources on Lighthouse, Copperhead and Copper Dome. Rockfire will seek to advance Marengo by bringing in a capable partner to explore on behalf of Rockfire.

Other Projects

Rockfire retains the Copper Dome, Kookaburra and Monarch exploration projects, all of which are in Queensland, Australia. During the 2020 calendar year, work on these projects involved geological mapping, structural mapping, drone aerial photography and site appraisals. The New Leyshon tenement (EPM 26745) was relinquished during the year.

KEY PERFORMANCE INDICATORS (KPIs)

The Board monitors KPIs which it considers appropriate for a group at Rockfire's stage of development.

Financial KPIs

During the year, the Board monitored the following KPIs:

· Cash flow and working capital;

· Short-term and long-term cash flow models which include variance analysis from original budgets.

RISK MANAGEMENT

The Board regularly reviews the risks to which the Group is exposed and ensures through its meetings and regular reporting that these risks are minimised as far as possible.

The principal risks and uncertainties facing the Group at this stage in its development are:

COVID-19 risk

In the current business climate, the Board acknowledges the COVID-19 pandemic risk and has implemented logistical and organisational changes to underpin the Group's resilience to COVID-19, with the key focus being on protecting all personnel, minimising the impact on critical work streams and ensuring business continuity.

Exploration risk

The Group's business has been primarily mineral exploration and evaluation which are speculative activities and, whilst the Directors are satisfied that good progress is being made, there is no certainty that the Group will be successful in the definition of economic mineral deposits, or that it will proceed to the development of any of its projects or otherwise realise their value.

The Group aims to mitigate this risk when evaluating new business opportunities by targeting areas of potential where there is at least some successful historical drilling or geological data available.

Resource risk

All mineral projects have risk associated with defined grade and continuity. Mineral reserves and resources are calculated by the Group in accordance with accepted industry standards and codes but are always subject to uncertainties in the underlying assumptions which include geological projection and commodity price assumptions.

The Group reports mineral resources and reserves in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code'). The JORC Code is a professional code of practice that sets minimum standards for public reporting of mineral exploration results, mineral resources and ore reserves. Further information on the JORC Code can be found at www.jorc.org.

Environmental, landowner and native title risk

Exploration and development of a project can be adversely affected by environmental legislation and the unforeseen results of environmental studies carried out during evaluation of a project. Once a project is in production, unforeseen events can give rise to environmental liabilities.

Access and compensation agreements are required to be negotiated between the Company and the landowner at each project. Queensland legislation provides an agreement template which may be modified by the Company and the landowner.

Where native title exists, the Company obtains the necessary approvals for access and working programmes according to legislation and the Company's environmental, social and governance ("ESG") programme.

The Group is currently in the exploration stage. Any disturbance to the environment during this phase is minimal and is rehabilitated in accordance with the prevailing regulations of the countries in which we operate.

Financing and liquidity risk

The Group has an ongoing requirement to fund its activities through the equity markets and in the future to obtain finance for project development. There is no certainty such funds will be available when needed. To date, Rockfire has managed to raise funds primarily through equity placements despite the very difficult markets that currently exist for raising funding in the junior mining industry.

Political risk

All countries carry political risk that can lead to interruption of activity. Politically stable countries can have enhanced environmental and social permitting risks, risks of strikes and changes to taxation whereas less developed countries can have in addition, risks associated with changes to the legal framework, civil unrest and government expropriation of assets.

Bribery risk

The Group has adopted an anti-corruption policy and whistle blowing policy under the Bribery Act 2010. Notwithstanding this, the Group may be held liable for offences under that Act committed by its employees or subcontractors, whether or not the Group or the Directors had knowledge of the committing of such offences.

Insurance coverage

The Group maintains a suite of insurance coverage that is appropriate for the Group and Company. This is arranged via a specialist mining insurance broker and coverage includes public and products liability, corporate and professional, travel, property and medical coverage and assistance while Group employees and consultants are travelling on Group business. This is reviewed at least annually and adapted as the Group's scale and nature of activities changes.

Internal controls and risk management

The Directors are responsible for the Group's system of internal financial control. Although no system of internal financial control can provide absolute assurance against material misstatement or loss, the Group's system is designed to provide reasonable assurance that problems are identified on a timely basis and dealt with appropriately.

In carrying out their responsibilities, the Directors have put in place a framework of controls to ensure as far as possible that ongoing financial performance is monitored in a timely manner, that corrective action is taken and that risk is identified as early as practically possible. The Directors review the effectiveness of internal financial control at least annually.

The Board continuously monitors and upgrades its internal control procedures and risk management mechanisms and assesses both for effectiveness during the annual review. This process enables the Board to determine if the risk exposure has changed during the year. In order to assist the risk management function of the audit committee, the Company has a risk management policy, which is reviewed annually. The Executive Directors report regularly to the Board on the management of material business risks.

The Board, subject to delegated authority, reviews capital investment, property sales and purchases, additional borrowing facilities, guarantees and insurance arrangements.

CORPORATE SOCIAL RESPONSIBILITY

The Board takes account of the significance of social, environmental and ethical matters affecting the business of the Group. At this stage in the Group's development the Board has not adopted a specific policy on corporate social responsibility as it has a limited pool of stakeholders other than its shareholders. Rather, the Board seeks to protect the interests of Rockfire's stakeholders through individual policies and through ethical and transparent actions.

SHAREHOLDERS

The Directors are always prepared, where practicable, to enter into dialogue with shareholders to promote a mutual understanding of objectives and outcomes. The Annual General Meeting provides the Board with an opportunity to informally meet and communicate directly with investors.

ENVIRONMENT

The Board recognises that the Group's principal activity, mineral exploration, has the potential to impact on the local environment. To date, activities at the various projects have been limited to surveying and drilling activities and the Group does comply with local regulatory requirements with regard to environmental compliance and rehabilitation. The impact on the environment of the Group's activities has the potential to increase should our projects move into a development or production phase. This is currently assessed through baseline environmental studies that are being undertaken and identifying resources needed to manage environmental compliance in the future.

Given the Group's size and scale it is not considered practical or cost effective to collect and report data on carbon emissions.

EMPLOYEES

The Group engages its employees to understand all aspects of the Group's business and seeks to remunerate its employees fairly, being flexible where practicable. The Group gives full and fair consideration to applications for employment received regardless of age, gender, colour, ethnicity, disability, nationality, religious beliefs, transgender status or sexual orientation. The Group takes account of employees' interests when making decisions and welcomes suggestions from employees aimed at improving the Group's performance.

The Group now operates solely in Queensland, Australia where it recruits locally as many of its employees and contractors as practicable.

SUPPLIERS AND CONTRACTORS

The Group recognises that the goodwill of its contractors, consultants and suppliers is important to its business success and seeks to build and maintain this goodwill through fair dealings. The Group has a prompt payment policy and seeks to settle all agreed liabilities within the terms agreed with suppliers. The Company encourages best practice from suppliers and contractors with regards to environmental issues.

HEALTH AND SAFETY

The Board recognises that it has a responsibility to provide strategic leadership and direction in the development of the Group's health and safety strategy in order to protect all of its stakeholders. The Group does not have a formal health and safety policy at this time. This is re-evaluated as and when the Group's nature and scale of activities change.

BREXIT

The United Kingdom ceased to be a member of the EU on 31 January 2020 with an agreed exit transition period. The impact of foreign exchange fluctuations has been evident, and the threats and opportunities of 'Brexit' are still largely unknown. Despite no immediately foreseeable impact on the Group, the Directors are monitoring developments.

ENGAGEMENT WITH STAKEHOLDERS

The Board of Rockfire is proud of the high standard of corporate governance it has established and maintains. The Board makes a conscious effort to understand the interests and expectations of the Company's stakeholders, and to reflect these in the choices it makes in its effort to create long-term sustainable success for our business.

Engagement with our shareholders and wider stakeholder groups, including employees, landowners, suppliers, contractors and government agencies, plays a central role throughout Rockfire's business. The Board is aware that each stakeholder group requires a specific and unique engagement approach in order to create and maintain effective, sustainable and mutually beneficial relationships.

The Board's understanding of various stakeholder interests is factored into programme planning, boardroom discussions, strategy and budgets to assess potential long-term impacts of our business on each group, and how we might best address stakeholder expectations from our business.

Throughout this Annual Report, we provide examples of how we:

· Take into account the likely consequences of long-term decisions;

· Foster relationships with stakeholders;

· Understand our impact on our local communities and the environment; and

· Demonstrate the importance of behaving responsibly.

This engagement with stakeholders section forms our section 172 statement and should be read in conjunction with other information included in this Annual Report. Section 172 of the Companies Act 2006 requires the Directors to act in a way that they consider, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole, taking into account the factors listed in section 172.

The Directors continue to observe, plan for, and communicate the interests of the Company's stakeholders, including the impact of its exploration activities on local communities and the environment. Acting in good faith and

fairly between members, the Directors consider what is most likely to promote the success of the Company for its members in the long term.

The Board regularly reviews its principal stakeholders and how it engages with each. Stakeholder expectations are brought into the boardroom throughout the annual cycle through information provided by management and by direct engagement with stakeholders themselves. The priority of each stakeholder group may increase or decrease, depending on the degree of impact any decision may have on any particular stakeholder group. The Board therefore seeks to consider the impact and priorities of each stakeholder group during its discussions and as part of its decision making.

The table below sets out the key stakeholder groups, their interests and how Rockfire has engaged with them over the reporting period. However, given the importance of stakeholder focus, long-term strategy and reputation, these themes are also discussed throughout this Annual Report.

On behalf of the Board

David W Price, Chief Executive Officer 28 May 2021

Principal activities

The principal activities of the Group are currently exploration for gold and copper resources in Queensland, Australia. The Group's strategy is to explore for and, where the Directors believe that it is commercially feasible, develop deposits of gold and/or copper. The Company strategy includes considering opportunities for project sale or joint venture at a point when any of the Group's projects becomes appropriately advanced enough to consider such options.

The Group currently holds six exploration permits for minerals (EPMs) in Queensland, Australia.

Financial overview

The loss for the year is in line with the Directors' expectations. With funding being raised in June and July 2020, and again in May 2021, the Directors are confident that they will be able to secure additional funding when required to do so. The Directors are also of the view that the investment sentiment in the resource sector is improving, to the extent that the exploration success the Company has achieved to date should enable it to raise sufficient additional exploration funding to continue its exploration programmes.

Further details of the Group's business, including its targets and strategies is given in the Chairman's Statement and the Strategic Report.

Major events after the reporting period

For information regarding events after the reporting date, see note 20 to the financial statements.

Dividends

The Directors are unable to recommend the payment of a dividend for the year ended 31 December 2020 (2019:

£nil).

Going concern

In the current business climate, the Board acknowledges the COVID-19 pandemic and has implemented logistical and organisational changes to underpin the Group's resilience to COVID-19, with the key focus being on protecting all personnel, minimising the impact on critical work streams and ensuring business continuity. COVID-19 may have a direct bearing on the Group's ability to generate sufficient cash for working capital purposes. The Board is closely monitoring commercial and technical aspects of the Group's operations to mitigate the impact of the COVID- 19 pandemic. The inability to gauge the length of such disruption further adds to this uncertainty. For these reasons, the generation of sufficient operating cash remains a risk. The Board believes the Group will generate sufficient working capital to continue in operational existence and will have the ongoing support of its shareholders, as required, for the foreseeable future.

In May 2021, the Company raised gross proceeds of £850,000 through a placing of 121,429,200 new ordinary shares of 0.1p each. The funds raised are to be used to commence inaugural drilling at the Company's Copper Dome and Copperhead projects, as well as to fund ongoing drilling at the Company's Plateau gold deposit.

Directors

The Directors in office during the year are listed below. The interests of the Directors in the shares of the Company, and share options were as follows:

Significant shareholdings

As at 19 May 2021, being the latest practical date prior to publication of this document, the Company was aware of the following holdings of 3% or more of the issued share capital of the Company:

Directors' remuneration

Full details of Directors' emoluments are set out in note 5 to the financial statements.

Environmental policy

The Group's projects are subject to the relevant Australian laws and regulations relating to environmental matters.

The Group's strategy is to explore for and, where the relevant studies indicate that it is economically viable to do so, to develop mineral deposits. It is the Group's intention to conduct its exploration and investigation activities in a professional and responsible manner, for the benefit of the Company's shareholders, its employees and the national and local communities within which it operates.

The Group aims, at all times to conduct its operations in an environmentally responsible manner and in accordance with relevant legislation. The Group aims to adopt best practice policies as recommended by the World Bank, the International Council on Mining & Metals ("ICMM") and others where the Group deems local legislation to be inadequate in terms of environmental protection. The Group has in place a detailed field operations guidelines manual which covers in considerable detail the measures to be taken by field personnel to minimise any negative environmental impact of current exploration activities on the environment.

The Group also recognises the enormous potential of its activities for positive impact on the communities in which it operates and strives to optimise these positive impacts as far as possible.

Directors' indemnities

The Group has directors and officers indemnity insurance to cover its Directors and officers against the costs of defending themselves in legal proceedings taken against them in that capacity and in respect of any damages resulting from those proceedings.

Political contributions

No political contributions have been made.

Auditor

A resolution proposing that PKF Littlejohn LLP be re-appointed will be put to the forthcoming Annual General Meeting.

Statement of disclosure to auditor

The Directors who held office at the date of approval of this Annual Report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditor is unaware and each Director has taken all steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Statement of Directors' responsibilities

The Directors are responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the Group and Company financial statements in accordance with international accounting 

standards in conformity with the Companies Act 2006 and, as regards the Company financial statements, as applied in accordance with the requirements of the Companies Act 2006.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group and Company for that period.

In preparing the Group and Company financial statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and accounting estimates that are reasonable and prudent;

· state whether they comply with international accounting standards in conformity with the Companies Act 2006, subject to any material departures disclosed and explained in the financial statements;

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Group's Annual Report will be published on the Group's website and in this regard the Directors accept responsibility for the maintenance and integrity of the website.

Annual General Meeting and recommendation

The Board considers that the resolutions to be proposed at the Annual General Meeting are in the best interests of the Company and the Group as a whole and its unanimous recommendation is that shareholders support these proposals as the Directors intend to do in respect of their own holdings. Further details regarding the location and timing of the Company's forthcoming Annual General Meeting will be provided shortly.

We welcome you to continue to take the journey with us as we build Rockfire through exploration success and quality asset acquisition.

On behalf of the Board

David W Price, Chief Executive Officer 28 May 2021

As Chairman of Rockfire, it is my responsibility to ensure that Rockfire has both sound corporate governance and an effective Board. I do that by ensuring that the Company and the Board are acting in the best interests of shareholders, and by making sure that the Board discharges its responsibilities. This includes creating the right Board dynamic and ensuring that all important matters, in particular strategic decisions, receive adequate time and attention at Board meetings.

My responsibilities include leading the Board effectively, overseeing the Group's corporate governance model, communicating with shareholders and ensuring that good information flows freely between the Executive and Non- executive Directors in a timely manner.

To the extent applicable, and to the extent able (given the current size and structure of the Company and the Board), the Company has adopted the Quoted Companies Alliance Corporate Governance Code (the Code). Details of how the Company complies with the Code are set out below, together with the principles contained in the Code.

In light of the Company's size and nature, the Board considers that the current Board is a cost effective and practical method of directing and managing the Company. As the Company's activities develop in size, nature and scope, the size of the Board and the implementation of additional corporate governance policies and structures will be reviewed. Further disclosures under the Code are included on the Company's website.

Principle 1 - Establish a strategy and business model which promote long-term value for shareholders

Rockfire is an AIM-quoted gold and copper exploration junior with projects located in northern Queensland, Australia. Drilling over the past two years on the most advanced gold project, Lighthouse, is pointing to the potential for a sizeable gold discovery. The Company's strategy is to identify mineral deposits which can be developed into mines to create value and income for shareholders.

Throughout 2020, the Board has delivered on its strategy to achieve growth of the Group, with highly successful exploration results at the Plateau gold deposit within the Lighthouse tenement.

The Company continues to seek other resource projects, primarily, but not exclusively, in Australia.

Principle 4 - Embed effective risk management, considering both opportunities and threats, throughout the organisation

The risks facing the Company are detailed in the risk management section of the Strategic Report. The Board seeks to mitigate such risks so far as it is able to do, but certain important risks cannot be controlled by the Board.

In setting and implementing the Company's strategies, the Board, having identified the risks, seeks to limit the extent of the Company's exposure to them having regard to both its risk tolerance and risk appetite.

Principle 5 - Maintain the board as a well-functioning, balanced team led by the chair

Ian Staunton and Patrick Elliot are considered to be independent. Nicholas Walley, as a significant shareholder, is not considered to be independent.

The Company is aware that having an Executive Chairman is not in line with the recommendations made by the QCA. The role of Executive Chairman has been primarily to ensure that best practice policies and procedures are implemented through identifying and appointing the appropriate Directors, ensuring the Board is run in an effective manner, and assisting the Chief Executive Officer with legacy matters. There is a clear split of responsibilities between the Executive Chairman and the Chief Executive Officer. The Board believes that the skillsets of the Chairman and the non-independent Non-executive Director are appropriate and beneficial for all shareholders and stakeholders.

All Directors are expected to devote the necessary time commitments required by their position and are expected to attend all Board meetings. The Board convenes outside these meetings on an ad hoc basis as and when it deems necessary.

The Chief Executive Officer works full time for the Company. The Executive Chairman is expected to devote sufficient time as to fulfil the needs of the Company, The Non-executive Directors are expected to dedicate up to 3 days per month to the Company's affairs. The Board is satisfied that each of the Directors is able to allocate sufficient time to the Company to discharge their responsibilities effectively.

The number of meetings of the Board and attendance for the year ended 31 December 2020 are set out below:

Principle 6 - Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities

The Board comprises the Executive Chairman, Gordon Hart; the Chief Executive Officer, David W Price; and three Non-executive Directors, Ian Staunton, Patrick Elliott and Nicholas Walley. Further details on the Board can be found on page 4 of this Annual Report.

The Board is therefore satisfied that it has a suitable balance between independence on the one hand, and direct managerial and operational knowledge of the Company on the other, which ensures that no individual or group may dominate the Board's decisions. The Board is also satisfied that the Board has sufficient knowledge of the Group and its operations to enable it to discharge its duties and responsibilities effectively. All Directors use their independent judgement to challenge all matters, whether strategic or operational.

The Directors endeavour to ensure that their knowledge of best practices and regulatory developments is up to date by technical reading and attending relevant seminars and conferences as considered necessary. All Directors receive regular updates on legal and governance issues. Nicholas Walley has been attending various QCA seminars on remuneration. David Price has attended various technical seminars. Gordon Hart has attended numerous webinars and conferences held by the Australian Institute of Company Directors. All Directors are encouraged to attend presentations, conferences and webinars which improve their skill base.

Rockfire has a Company Secretary whose role is to work closely with the Chairman to maintain high standards of corporate governance, ensuring that the necessary information is supplied to the Directors on a timely basis and that the Company complies with all applicable rules, regulations and obligations governing its operation.

The Board has regular contact with its advisors to ensure that it is aware of changes to generally accepted corporate governance procedures and requirements and that the Group remains compliant with applicable rules and regulations. The Company's nominated advisor supports the Board's development, specifically providing guidance on corporate governance and other regulatory matters, as required.

Each Director can take independent professional advice in the furtherance of his duties, if necessary, at the Company's expense. In addition, the Directors have direct access to the advice and services of the Company Secretary.

Neither the Board nor its committees have sought external advice on a significant matter.

Principle 7 - Evaluate board performance based on clear and relevant objectives, seeking continuous improvement

Given the current stage of the Company's development the Directors believe that the Board operates efficiently and cost effectively and that the cost of an external review process is not justified. Nevertheless, it is intended that the Board will be strengthened in due course to reflect the Group's progress with exploration and growth.

Principle 8 - Promote a corporate culture that is based on ethical values and behaviours

The Board recognises that its decisions regarding strategy and risk will impact the corporate culture of the Group as a whole and that this will impact the performance of the Group. The Board is aware that the tone and culture set by the Board will greatly impact all aspects of the Group and the way that employees and other stakeholders behave. The Corporate Governance arrangements that the Board has adopted are designed to ensure that the Company delivers long term value to its shareholders, and that shareholders have the opportunity to express their views in a manner that encourages open dialogue with the Board. Therefore, the importance of sound ethical values and behaviours is crucial to the ability of the Company to successfully achieve its corporate objectives.

A large part of the Company's activities is centred upon an open and respectful dialogue with employees, contractors, clients and other stakeholders. The Board places great importance on this aspect of corporate life and seeks to ensure that transparency and openness are evident in all that the Company does. The Directors consider that at present the Company has an open culture facilitating comprehensive dialogue and feedback and enabling positive and constructive challenge.

The Board has adopted a code of conduct which provides a framework for ethical decision-making and actions across the Group. The code of conduct reiterates the Group's commitment to integrity and fair dealing in its business affairs and its duty of care to all employees, contractors and stakeholders.

Each Board member's adherence to the Group's code of conduct is assessed annually. Employees are assessed on their performance and their adherence to the code of conduct through their annual performance review.

Principle 10 - Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders

The Board attaches great importance to providing shareholders with clear and transparent information on the Company's activities, strategy and financial position.

The Company communicates with shareholders through the Annual Report, full-year and half-year announcements, the Annual General Meeting and one-to-one meetings with large existing or potential new shareholders.

The Company announces significant developments which are disseminated via various outlets including the London Stock Exchange's Regulatory News Service (RNS).

The audit committee is chaired by Ian Staunton and includes Patrick Elliott and Gordon Hart, and their biographies can be found on page 4. The role of the committee is to consider and approve the interim results, and with the auditors to consider the annual report and matters raised by the auditors based on their audit. So far as possible recommendations by the auditors are immediately implemented. To date, audit committee matters have been discussed in full Board meetings. As such no formal audit committee reports have been required.

The remuneration committee is chaired by Nicholas Walley and includes Patrick Elliott, and their biographies can be found on page 4. The remuneration committee meets on an ad hoc basis, when required. Fees payable to the Non-executive Directors are determined by the Executive Directors.

Additional information supplied by the remuneration committee has been disseminated across this Annual Report, rather than included as a separate committee report.

Gordon Hart, Chairman 28 May 2021

Opinion

We have audited the financial statements of Rockfire Resources Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Parent Company Statements of Financial Position, the Consolidated and Parent Company Statements of Changes in Equity, the Consolidated and Parent Company Statements of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006 and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

In our opinion:

· the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2020 and of the group's and parent company's loss for the year then ended;

· the group financial statements have been properly prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006;

· the parent company financial statements have been properly prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and as applied in accordance with the provisions of the Companies Act 2006; and

· the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the group's and parent company's ability to continue to adopt the going concern basis of accounting included a review of the forecast financial information prepared by management, a review of management's assessment of going concern, and post year end information, including contracted and committed expenditure.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Our application of materiality

We consider gross assets to be the most significant determinant of the group's financial position and performance used by shareholders, with the key financial statement balances being intangible exploration and evaluation assets and cash and cash equivalents. The going concern of the group is dependent on its ability to fund operations going forward, as well as on the valuation of its assets, which represent the underlying value of the group. The basis for calculating materiality was unchanged from the prior year.

Whilst materiality for the group financial statements as a whole was set at £81,000, materiality for the parent company and significant component was set at £61,000 and £44,000 respectively. Performance materiality set at 70% for the group, parent company and significant component at £56,700, £42,700 and £30,800 respectively. We applied the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements.

We agreed with the audit committee that we would report to the committee all audit differences identified during the course of our audit in excess of £4,050 for the group and £3,050 for the parent company.

Our approach to the audit

In designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements. In particular, we looked at areas requiring the directors to make subjective judgements, for example in respect of assessing the recoverability of exploration, evaluation and development expenditure, the valuation of share-based payments, the carrying value and recoverability of investments in subsidiaries at parent company level, and the consideration of future events that are inherently uncertain. We also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

An audit was performed on the financial information of the group's significant operating components which, for the year ended 31 December 2020, were located in the United Kingdom and Australia.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.