Announcement PDF ABN 27 648 890 126 FINANCIAL REPORT FOR THE YEAR ENDED 30 June 2023 FINANCIAL REPORT for the year ended 30 June 2023 CORPORATE DIRECTORY ................................................................................................................. 1 DIRECTORS’ REPORT ....................................................................................................................... 2 AUDITOR’S INDEPENDENCE DECLARATION ................................................................................. 20 INDEPENDENT AUDITOR’S REPORT .............................................................................................. 21 DIRECTORS’ DECLARATION ............................................................................................... 25 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .... 26 CONSOLIDATED STATEMENT OF FINANCIAL POSITION.............................................................. 27 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY............................................................... 28 CONSOLIDATED STATEMENT OF CASH FLOWS............................................................................ 29 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................... 30 ADDITIONAL SECURITIES EXCHANGE INFORMATION .............................................................. 56 CORPORATE DIRECTORY DIRECTORS AUDITORS Jeremy Robinson (Executive Chairman) Matthew Freedman (Non-Executive Director) James Bahen (Non-Executive Director) Leo Horn (Non-Executive Director) BDO Audit (WA) Pty Ltd Level 9, Mia Yellagonga Tower 2, 5 Spring Street Perth WA 6000 COMPANY SECRETARIES Automic Share Registry Level 5, 191 St Georges Terrace Perth WA 6000 James Bahen Robbie Featherby SHARE REGISTRY Level 1, 338 Barker Road SUBIACO WA 6008 1300 288 664 (Local) +61 2 9698 5414 (International) www.automic.com.au POSTAL ADDRESS BANKER REGISTERED OFFICE Level 1, 338 Barker Road SUBIACO WA 6008 PRINCIPAL PLACE OF BUSINESS Level 1, 338 Barker Road SUBIACO WA 6008 CONTACT INFORMATION Tel: + (08) 6143 6720 info@cosmosx.com.au National Australia Bank Level 1 / 1238 Hay Street West Perth WA 6005 SECURITIES EXCHANGE LISTING Australian Securities Exchange (ASX) Level 40, Central Park 152-158 St George's Terrace Perth WA 6000 ASX CODE: C1X COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 1 DIRECTORS’ REPORT The directors of Cosmos Exploration Limited (ASX:C1X) and it subsidiary, (“the Group”) submit herewith the annual report of the Company for the financial year ended 30 June 2023. In order to comply with the provisions of the Corporations Act 2001. DIRECTORS The names and particulars of the directors of the Company in office during the year and until the date of this report are as follows. Directors were in office for the entire year unless otherwise stated. Director Jeremy Robinson Leo Horn James Bahen Matthew Freedman Position Executive Chairman Non-Executive Director (Appointed 3 April 2023) Non-Executive Director Non-Executive Director The names of the secretaries in office at any time during or since the end of the year are: Company Secretaries Position James Bahen Robbie Featherby Company Secretary Company Secretary OPERATING RESULTS The Company has incurred a net loss after tax for the year ended 30 June 2023 of $2,343,776 (2022: $1,640,199). DIRECTORS’ MEETINGS During the period 1 July 2022 to 30 June 2023, seven (7) meetings of directors were held. Attendances by each director during the year were as follows: Director Mr Jeremy Robinson Mr James Bahen Mr Matthew Freedman MR Leo Horn Directors’ Meetings Number Eligible to Attend Number Attended 7 7 7 7 7 7 2 2 Directors’ other formal business was conducted via circular resolution. The directors have determined that the Company is not of a sufficient size to merit the establishment of Board committees of the Board and therefore duties ordinarily assigned to committees are carried out by the full Board. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 2 INFORMATION ON DIRECTORS Information Directors at the date of this report as follows: Jeremy Robinson EXECUTIVE CHAIRMAN Mr Robinson is an experienced mining executive having held senior roles at multiple junior and mid-tier mining and exploration companies. Mr Robinson holds a Bachelor of Commerce from the University of Western Australia majoring in Corporate Finance, Investment Finance and Marketing. He is also currently a director of RareX Limited and Churchill Strategic Investments Group. Interest in shares and options at 2,238,750 Ordinary Shares the date of this report 1,000,000 performance rights Directorships held in other listed RareX Limited (current) entities (last 3 years) Ardiden Limited (current) BBX Minerals (current) James Bahen NON- EXECUTIVE DIRECTOR and JOINT COMPANY SECRETARY (Appointed 17 August 2021) James is a Corporate Advisory Executive and Chartered Secretary who commenced his career in audit and assurance with a chartered accounting firm. He is currently a Non-Executive Director and Company Secretary to a number of ASX listed companies and has a broad range of corporate governance and capital markets experience, having been involved with public company listings, M&A transactions and capital raisings for ASXlisted companies across the Resource industry. James is a member of the Governance Institute of Australia and holds a Graduate Diploma of Applied Finance and a Bachelor of Commerce degree majoring in Accounting and Finance. Interest in shares and options at the date of this report 135,180 Ordinary Shares 1,000,000 performance rights Directorships held in other listed entities (last 3 years) Victory Metals Limited (current) Lithium One Metals Inc (current) Minrex Resources Limited (former) Aquabotix Limited (former) Matthew Freedman NON- EXECUTIVE DIRECTOR (Appointed 1 May 2022) Matthew brings over 14 years of experience in the mining and mining services sector, Matthew's earlier roles include working for Rio Tinto Limited, Worley Parsons Limited and Emeco Holdings Limited. Mr Freedman holds a Bachelor of Business Administration. Interest in shares and options at the date of this report 27,750 Ordinary Shares 1,000,000 Performance Rights COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 3 Dynamic Group Holding Limited (current) Ardiden Limited (current) Directorships held in other listed entities (last 3 years) Leo Horn NON- EXECUTIVE DIRECTOR (Appointed 3 April 2023) Leo Horn is a technical geologist with over 20 years’ experience in the exploration and mining industry for precious, base and rare earth metals, diamonds and uranium across Australia, Asia, North and South America and Africa. During that time Mr Horn has contributed to several significant discoveries including leading the team that delineated several large, high grade uranium resources in the prolific Athabasca Basin of Canada. In addition to key exploration management roles, Mr Horn has extensive experience in executive officer positions in which he has developed valuable corporate finance, marketing and capital raising experience. Mr Horn holds a Bachelor of Science with Majors in Geology & Geomorphology and Honours in Geology from the University of Western Australia and is a member of the Australian Institute of Geoscientists. Interest in shares and options at the date of this report/Resignation 1,450,000 Ordinary Shares 333,334 performance rights Directorships held in other listed entities (last 3 years) Austin Metals Limited (current) Lodestar Battery Metals Corp. (current) Robbie Featherby JOINT COMPANY SECRETARY (Appointed 17 August 2021) Robbie Featherby is a Corporate Advisory Executive who holds a Bachelor of Commerce Degree majoring in Finance and Economics. Mr Featherby has an extensive number of years’ experience in the financial services industry, more recently spending 4 years in London working at a leading investment research provider in the private equity sector. Mr Featherby now provides company secretary services for a number of private and public companies. Remuneration Report A. Details of remuneration (Audited) Details of remuneration of the directors and key management personnel (as defined in AASB 124 Related Party Disclosures) of Cosmos Limited are set out in the following table. The information provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001 The key management personnel of Cosmos Limited are the directors as previously described earlier in the Directors’ Report, and other personnel as determined by the Board. The Company does not have any other employees who are required to have their remuneration disclosed in accordance with the Corporations Act 2001. The Board is responsible for determining and reviewing compensation arrangements for the Directors and Executive Officers. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a yearly basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high-quality board and executive team. The expected outcome of this remuneration structure is to retain and motivate Directors and Executive Officers. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 4 As part of its Corporate Governance Policies and Procedures, the board has adopted a formal Remuneration Committee Charter and Remuneration Policy. The Board has elected not to establish a remuneration committee based on the size of the organisation and has instead agreed to meet as deemed necessary and allocate the appropriate time at its board meetings. Fees and payments to non‑executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non‑executive directors’ fees and payments are reviewed annually by the Board. The Chair’s fees are determined independently to the fees of non‑executive directors based on comparative roles in the external market. The company issue NED fees up to a maximum aggregate remuneration of $500,000. Non‑executive directors do not receive cash performance-based pay. Additional Fees A Director may also be paid fees or other amounts as the Directors determine if a Director performs special duties or otherwise performs services outside the scope of the ordinary duties of a Director. A Director may also be reimbursed for out of pocket expenses incurred as a result of their directorship or any special duties. The table below shows the 2023 and 2022 figures for remuneration received by the Company’s key management personnel: Short Term 2023 Directors Jeremy Robinson James Bahen Leo Horn¹ Matthew Freedman Post-employment SuperOptions or Other annuatio Prescribed Performance Bonus benefits n benefits right $ $ $ $ $ Salary & Fees $ 112,283 39,780 9,000 39,750 200,813 - - Performanc e related Percentage of Remunerati on % Equity Sharebased Payments - - Total $ 50,842 50,842 36,128 137,812 163,125 90,622 9,000 75,878 338,625 31% 56% -% 48% 41% 30,784 30,784 6,137 - 121,836 53,884 16,500 12,737 - 25% 57% -% 48% -% -% -% 33% ¹ Mr Horn was appointed as Non-Executive Director on 3 April 2023. 2022 Directors Jeremy Robinson James Bahen¹ Andrew Denniss² Matthew Freedman³ John Young⁴ Cameron Henry⁴ Shaun Hardcastle⁴ 91,052 23,100 16,500 6,600 - - 137,252 - - - - - - - 67,705 204,957 ¹Mr Bahen was appointed as Non-Executive Director on 17 August 2021. ²Mr Denniss was appointed as Non-Executive Director on 17 August 2021 and resigned on 1 May 2022. ³ Mr Freedman was appointed as Non-Executive Director on 1 May 2022 ⁴ Mr Young, Henry and Hardcastle resigned on 17 August 2021. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 5 B. (i) Directors’ equity holdings Fully paid ordinary shares of Cosmo Exploration Limited: Balance at 1 July or Appointment Date No. 2023 Directors Jeremy Robinson James Bahen Leo Horn¹ Matthew Freedman Granted as remuneration No. 125,000 50,000 27,750 202,750 Net other change No.² - At date of resignation No. 2,113,750 85,180 1,450,000 3,648,930 Balance at 30 June No. - 2,238,750 135,180 1,450,000 27,750 3,851,680 ¹ Mr Horn was appointed as Non-Executive Director on 3 April 2023. ² Movement was due to participation in the placement undertaken by the Company. Mr Horn received shares as a vendor of the asset acquisition for the Corvette project. None of the shares above are held nominally by the directors or any of the other key management personnel. (ii) Performance rights of Cosmos Exploration Limited: Balance at 1 July or Appointment Date No. 2023 Directors Jeremy Robinson James Bahen Leo Horn¹ Matthew Freedman 1,000,000 1,000,000 1,000,000 3,000,000 Granted as remuneration No. Net other change No. - 333,334 333,334 At date of resignation No. Balance at 30 June No. - 1,000,000 1,000,000 333,334 1,000,000 3,333,334 ¹ Mr Horn was appointed as Non-Executive Director on 3 April 2023. Mr Horn received performance rights as a vendor of the asset acquisition for the Corvette project. Directors of Cosmos Exploration Limited were granted 4 million performance rights on various dates, with 1 million performance rights lapsing in the previous year. Vesting Conditions for each of the tranches are listed below. The performance rights expire 3 years from issue date. • • • The Company's Shares attaining a VWAP of not less than $0.30 per Share over a period of 20 consecutive Trading Days on which trades were recorded. The Company's Shares attaining a VWAP of not less than $0.35 per Share over a period of 20 consecutive Trading Days on which trades were recorded. The Company's Shares attaining a VWAP of not less than $0.40 per Share over a period of 20 consecutive Trading Days on which trades were recorded. Details of the performance rights are below. None of these performance rights have vested and converted during the year. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 6 Performance Rights 1 The fair value is determined using the Monte Carlo Simulation, taking into account the terms and conditions upon which the rights were granted. These were applicable to Jeremy Robinson, James Bahen and Andrew Denniss. ITEM Fair value per option Number of Rights • • • Tranche 1 Tranche 2 Tranche 3 $0.1607 $0.1550 $0.1423 999,999 999,999 1,000,002 Share Price Target $0.30 $0.35 $0.40 Expected volatility 122.9% 122.9% 122.9% Implied life 3 3 3 Expected dividend yield 0% 0% 0% Risk free rate 0.93% 0.93% 0.93% Vesting Date 21/11/2024 21/11/2024 21/11/2024 Date Of Grant Underlying share price at grant date Total Fair Value 01/12/2021 01/12/2021 01/12/2021 $0.20 $0.20 $0.20 $160,700 $155,000 $142,300 The Company's Shares attaining a VWAP of not less than $0.30 per Share over a period of 20 consecutive Trading Days on which trades were recorded. The Company's Shares attaining a VWAP of not less than $0.35 per Share over a period of 20 consecutive Trading Days on which trades were recorded. The Company's Shares attaining a VWAP of not less than $0.40 per Share over a period of 20 consecutive Trading Days on which trades were recorded. Performance Rights 2 The fair value is determined using the Monte Carlo Simulation, taking into account the terms and conditions upon which the rights were granted. These were applicable to Matthew Freedman. ITEM Fair value per option Number of Rights Tranche 1² Tranche 2² Tranche 3² $0.1112 $0.1086 $0.1053 333,333 333,333 333,334 Share Price Target $0.30 $0.35 $0.40 Expected volatility 107.9% 107.9% 107.9% Implied life 3 3 3 Expected dividend yield 0% 0% 0% Risk free rate 2.67% 2.67% 2.67% Vesting Date 28/04/2025 28/04/2025 28/04/2025 Date of Grant Underlying share price at grant date Total Fair Value 29/04/2022 29/04/2022 29/04/2022 $0.16 $0.16 $0.16 $37,079 $36,200 $35,106 COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 7 ²A Director of Cosmos Exploration Limited were granted 1 million performance rights on 29 April 2022. Vesting Conditions for each of the tranches are listed below • • • C. The Company's Shares attaining a VWAP of not less than $0.30 per Share over a period of 20 consecutive Trading Days on which trades were recorded. The Company's Shares attaining a VWAP of not less than $0.35 per Share over a period of 20 consecutive Trading Days on which trades were recorded. The Company's Shares attaining a VWAP of not less than $0.40 per Share over a period of 20 consecutive Trading Days on which trades were recorded. Loans to / from key management personnel During the year the company had no loans to/from key management personnel. D. Employment Contracts of Directors and Executives The Company has entered into an consultancy agreement with Mr Robinson whereby Mr Robinson receives remuneration of $72,000 per annum as a director fee and $120,000 per annum (plus GST) for technical advice. The agreement may be terminated subject to a 3-month notice period. E. Share-based payments Equity-settled share based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the share-based payments is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of equity instruments that will eventually vest with a corresponding increase in equity. F. Other Related Party Transactions The company has an agreement with Smallcap Corporate (SCC), of which Mr James Bahen is a Director, (Corporate Services Agreement). Pursuant to the Corporate Services Agreement, the SCC was appointed to provide corporate and administrative services to the Company. During the year $117,000 (2022: $66,500) was charged in relation to providing corporate and administrative services to Cosmos Exploration Limited. The agreement has been negotiated at arm’s length and contains standards commercial terms and therefore falls within the exception on section 210 of the Corporations Act. Amounting outstanding as at 30 June 2023 was $14,978. The company has an arrangement with RareX Limited (RareX), of which Mr Jeremy Robinson is a Director, where RareX provides Cosmos use of their office space, provides geological service and use of its equipment. The arrangement has been negotiated at arm’s length and contains standards commercial terms. During the year the cost amounted to $23,666 (2022: $30,886). Amount outstanding as at 30 June 2023 was $Nil. Mr Jeremy Robinson is also a Director of Churchill SIG Pty ltd, which provides broker and consultancy services. The company incurred $128,400 (2022: $Nil) in cost for brokerage services, which was 6% of the capital raising which was considered at arm’s length and on standard commercial terms. The company has an arrangement with All Terrain Geology, of which Mr Leo Horn is a Director, where it provides Cosmos geological service and use of its equipment. The arrangement has been negotiated at arm’s length and contains standards commercial terms. During the year the cost amounted to $44,480 (2022: $Nil). Amounting outstanding as at 30 June 2023 was $13,280. Mr Leo was a party of the Corvette acquisition as highlighted in note 4. Directors of Cosmos Exploration Limited were granted performance rights on various dates. Vesting Conditions for each of the tranches are listed in note 7. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 8 RESULTS AND DIVIDENDS Remuneration is not linked to past group performance but rather towards generating future shareholder wealth through share price performance. Cosmos Exploration listed on 1 December 2021 at 20c per share and the share price at 30 June 2023 $0.37 (2022: was $0.11). The Company has recorded a loss each financial year to date as it carries out exploration activities on its tenements. No dividends have been paid. Net Profit/(loss) attributable to equity holders of the Company 2023 ($) 2022 ($) 2021 ($) (2,343,366) (1,640,199) (141,877) - - - 37 cents 11 cents Nil cents¹ Dividends paid Year-end share price ¹ The company was not yet listed. EARNINGS PER SHARE Basic loss per share for the year was $0.056 (30 June 2022: $0.081) Adoption of remuneration report by shareholders The adoption of the remuneration report for the financial year ended 30 June 2022 was put to the shareholders of the Company at the Annual General Meeting (AGM) held on 3 November 2022. All proxies received were in favour of the resolution and the resolution was passed without amendment on a show of hands. The Company received a 91.97% approval for remuneration report. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. END OF REMUNERATION REPORT (AUDITED). REVIEW OF OPERATIONS FINANCIAL RESULTS The financial results of the Company for the year ended 30 June 2023 are: Cash and cash equivalents ($) Net assets/(liabilities) ($) Revenue ($) Net loss after tax ($) 30/06/2023 2,559,244 8,833,216 58,743 2,343,366 30/06/2022 3,335,875 5,235,401 326,362 1,640,199 % Change -30.35% 40.73% -455% 30.01% PRINCIPAL ACTIVITIES Cosmos Exploration Limited is an ASX listed International critical minerals company focussed on making world class discoveries at its highly prospective projects including; Corvette Far East Lithium Project and the Lasalle Lithium Project in the James Bay region of Quebec, the Byro East Nickel-Copper-PGE Project located in Western Australia and Orange the East Gold Project located in New South Wales. Corvette Far East and Lasalle Projects are located along strike from the world class Corvette lithium project owned by Patriot Metals with historically mentioned lithium bearing pegmatites. It is considered highly prospective for giant lithium pegmatite discoveries. Byro East was identified by RareX prior to the Julimar Discovery and has potential for mafic-ultramafic intrusion related nickel-copper and PGE mineralisation. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 9 Orange East is an advanced exploration project located on the boundary between the Molong Arc and Hill End Trough within the Lachlan Fold Belt, a major mineral province, within a similar geological setting and along strike from the multi-million-ounce McPhillamys Gold Mine. REVIEW OF OPERATIONS Corvette Far East Lithium Project Cosmos completed the acquisition of the prospective Corvette Far East Lithium Project (“the CFE Project”), located in the prolific James Bay district in Quebec, Canada. The CFE Project is located directly along trend from the exciting recent lithium discoveries made by Patriot Battery Metals Inc (ASX: PMT) at its Corvette Project. Figure 1 Simplified bedrock geology map of the James Bay district showing the location of the Corvette Far East (CFE) Project in relation to the Patriot Metals’ CV5 discovery and Polaris spodumene pegmatite. The Project is located just 20km east of the Corvette Project within the same greenstone belt, where historic large-scale mapped pegmatites remain unexplored, and is prospective for lithium over 15km of strike (see Figure 1). Geologically, the greenstone within the Corvette Far East Project is interpreted to be a ‘dismembered’ section of the exact same greenstone belt that hosts Patriot Battery Metals’ CV5 discovery where recent outstanding drill intercepts of up to 131m at 2.0% Li2O including 15.0m @ 5.1% Li2O have been announced (see Patriot Battery Metals Inc’s announcement dated 29/01/23). Both greenstone belts occur at the contact between the intrusive tonalite to the south and granodiorite to the north (Figure 1), both of which may be the source granites for the unusually large lithium-caesium-tantalum (LCT) pegmatites in the area. The Company recently completed a 9-day helicopter-supported rock sampling program during which a large suite of pegmatite outcrop and boulder samples were taken for field assessment. During the program, both portable XRF and LIBS instruments were utilised to great effect on specific minerals to assess the fertility of the pegmatites to host spodumene. Specifically, low potassium/rubidium ratios in muscovite and/or feldspar, as well as high lithium in muscovite, have been shown to be key indicators for more fractionated pegmatites toward the highly evolved spodumene-bearing pegmatites. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 10 During the program this work highlighted the western side of the CFE Project, over a priority area of 4.5km by 1.3km, to be highly prospective based on an abundance of widespread pegmatite swarms that occur at surface on closer inspection in the field. Importantly, these pegmatites variably display widespread characteristic low potassium/rubidium ratios on feldspar, elevated lithium readings in muscovite as well as observed characteristic green, silver and white muscovite micas from pegmatites, which are all key indicators of highly fractionated lithium-caesium-tantalum (LCT) pegmatites. As a direct result of Cosmos’s successful field strategy, and on closer follow-up inspection on one specific area, large white (to faint green) spodumene crystals up to 20cm were observed in a moss-covered outcrop or pegmatite over a small area (Figure 1, 2 & 3). Clearing moss off the pegmatite outcrop revealed an outcrop of at least 20m by 10m with further sporadic clearing along strike confirming that the same pegmatite extends for at least 40m by 20m (Figure 1). Due to the dominantly white colour of spodumene and the black moss staining of the outcrop, spodumene percentages were difficult to determine but they were positively identified in at least two areas. SPD SPD SPD Figure 2 (top left): Photo of sample H909418 from Polaris. Photograph field of view contains 80% white to pinkish stained spodumene (SPD), 20% translucent quartz and feldspar. NB: UV light is 9cm for scale. Figure 3 (top right): Close-up photograph of one large 20cm long spodumene crystal from sample H909418. An important field observation of the outcrop at Polaris is that the pegmatite appears to plunge under low-lying cover and swamp along strike to the south-southwest. The Polaris spodumene-bearing outcrop is interpreted to remain open in this direction and concealed beneath cover. In light of this exciting breakthrough, further work is warranted to evaluate the potential to delineate drill targets for the upcoming winter drilling season. Axiom Geophysics & Remote Sensing Group was contracted to complete a helicopter-supported magnetic survey at 100m spacing. During the program, Cosmos decided to fly in-fill surveying at 50m spacing in order to achieve a higher resolution dataset and image suites specifically designed to detect subtle demagnetised linear features that could represent cross-cutting non-magnetic pegmatite dykes and sills. Preliminary images have now been produced by Resource Potentials Geophysics Consultants and the results are encouraging. The new data and imagery have been interpreted by Cosmos within the four priority areas where several northeast-trending features have been delineated (Figure 6). Many of these lineaments will be groundtruthed during the upcoming field programs. COSMOS EXPLORATION LIMITED | 2023 FINANCIAL REPORT Page 11 Lasalle Lithium Project The Company completed the acquisition of up to a 75% intertest in the highly prospective Lasalle Lithium Project (“the Laselle Lithium Project”), located in the prolific James Bay district in Quebec, Canada. The Company acquired 9481-6337 Québec Inc. which is party to a binding and exclusive earn-in agreement with Midland Exploration Inc (“Midland Exploration”) whereby it has the option to earn up to a 75% interest in the Project (“Acquisition”). The Lasalle Lithium Project consists of the 39 claims and is located 100km along strike from the exciting recent lithium discoveries made by Patriot Battery Metals Inc (ASX: PMT) at its Corvette Project, which hosts the worldclass CV5 discovery. The Lasalle Lithium Project is also located 30km north of Winsome Resources Limited’s (ASX: WR1) Adina discovery, where recent outstanding drill intercepts of up to 107.6m at 1.3% Li2O have been announced (see ASX:WR1 announcement dated 6/01/23). Geologically, the greenstone within the Lasalle Lithium Project is interpreted to be very similar to the lithological hosts to the CV5 and Adina lithium pegmatite discoveries. Importantly, the Project is interpreted to occur in close proximity to the same fertile tonalite intrusives also seen at the CV5 discovery that are likely to be the source granites for the unusually large lithium-caesium-tantalum (LCT) pegmatites in the area. This geological interpretation strongly supports the prospectivity of the Project for further lithium discoveries. Byro East Rare Earth and Nickel-Copper-PGE Project Ground-based exploration continued at the Byro East Project with ground truthing and rock chip sampling being undertaken at many of the rare earth targets generated via the previous soil sampling and geophysical surveys. The work highlighted significant rare earth exploration potential associated with a large carbonatite complex. Cosmos completed a comprehensive geochemical soil survey over the central four Byro East Tenements, covering an area in excess of 600km2. The primary goal was to detect areas of mineralisation, alteration and host lithologies that are commonly associated with magmatic nickel-copper-PGE, gold and REE style deposits prospective for this region. On 26 October 2022, Cosmos announced significant findings from the soil data, which revealed numerous multikilometre long trends displaying unusually high TREO and Y oxide values, up to 1,283ppm across large