Platypus Minerals : Annual Report to shareholders

Lepidico

2016ANNUAL REPORT

CORPORATE DIRECTORY

Gary Johnson (Non-Executive Chairman) Julian Walsh (Managing Director)

Tom Dukovcic (Director Exploration) Mark Rodda (Non-Executive Director)

Paul McQuillan Alex Neuling

Level 1, 254 Railway Parade

West Leederville, WA, Australia, 6007 Telephone: (08) 9363 7800

Facsimile: (08) 9363 7801

Level 1, 254 Railway Parade

West Leederville, WA, Australia, 6007 PO Box 1245 West Leederville WA 6901 Telephone: (08) 9363 7800

Facsimile: (08) 9363 7801

Website: www.platypusminerals.com.au

CHAIRMAN'S LETTER 1

REVIEW OF OPERATIONS 2

TENEMENT SCHEDULE 9

DIRECTORS' REPORT 12

AUDITOR'S INDEPENDENCE DECLARATION 27

FINANCIAL STATEMENTS 28

DIRECTORS' DECLARATION 63

INDEPENDENT AUDIT REPORT 64

CORPORATE GOVERNANCE STATEMENT 66

ADDITIONAL (ASX) SHAREHOLDER INFORMATION 71

Australia

Moore Stephens Chartered Accountants Level 15, Exchange Tower

2 The Esplanade

Perth WA 6000

Telephone: (08) 9225 5355

Facsimile: (08) 9225 6181

Security Transfer Registrars Pty Ltd 770 Canning Highway

Applecross WA 6153

Telephone: (08) 9315 2333

Facsimile: (08) 9315 2233

Australian Stock Exchange Limited Exchange Plaza

2 The Esplanade

Perth WA 6000

CHAIRMAN'S LETTER

It is with great pleasure that I am able to formally address you in my inaugural year as Chairman of Platypus Minerals Ltd ("Platypus" or the "Company").

The past year was one of transformation for the Company, with Platypus now poised for a dynamic growth future in lithium exploration and development, which I believe will deliver above average returns to our shareholders. The lithium boom is one of the key resource stories to emerge in recent times and presents a significant opportunity for the mining industry. Platypus is now well positioned to advance its lithium exploration properties and enter into new arrangements on other lithium opportunities.

The Company's transition to lithium culminated in the 100% acquisition of Lepidico Ltd in June this year, it's assets included the L-Max® process technology and a prospective portfolio of exploration properties. In a sector brimming with junior mining companies seeking to establish themselves,

L-Max® is our key differentiator from the pack.

The opportunity that L-Max® brings to the table should not be underestimated. With this technological advantage, the Company is confident in becoming a lithium producer by processing an overlooked source of lithium - the lithium bearing micas. The commercialisation of L-Max® could be disruptive to an industry sector that is largely focussed on brine and spodumene projects.

L-Max® is the key to unlocking the value of lithium contained within micas, bringing about new opportunities including tailings processing, mineralised mine waste dumps and traditional exploration on both greenfield and brownfield targets.

Along with the technology, we have an exciting lithium portfolio of exploration and commercial ventures that includes:

• Lemare, a project in Canada we are farming into and where we have commenced drilling;

• Euriowie, a target close to old mine workings near Broken Hill in New South Wales;

• "Third Element Metals" a joint venture in Brazil with Crusader Resources Ltd;

• A joint venture in Argentina with Latin Resources Ltd; and

• L-Max® licence arrangements with Lithium Australia Ltd and European Metals Holdings Limited

We have also strengthened our team with several key new appointments. Joe Walsh has recently joined the Company as Managing Director.

Previously, Joe served as General Manager Corporate Development for PanAust Ltd for 12 years, where he was instrumental in the

evolution of PanAust from a junior explorer to a plus US$2 billion capitalised, S&P/ASX Top 100, multi-mine company. In his short time with Platypus, Joe has already made his mark on the Company and under his leadership I am confident that shareholders will be rewarded.

Mark Rodda has also been appointed as a Non- Executive Director. Mark is a lawyer and mining executive who brings a wealth of experience in mergers & acquisitions, mineral exploration, joint ventures, strategic alliances, offtake arrangements and project finance.

Tom Dukovcic has transitioned his role to become Director Exploration. I would like to thank Tom for the 13 years he served as Managing Director. As a geologist, his focus will now shift towards leading our exploration activity - already a considerable list of projects - and identifying acquisition/commercial opportunities where we can deploy our L-Max® technology.

At this stage, I would also like to acknowledge the efforts of outgoing Chairman Laurie Ziatas and Non-Executive Director Rocco Tassone. Both were instrumental in the acquisition of Lepidico and the associated rights issue of A$3.6M that placed the Company in a solid financial position.

This is an exciting time to be a Platypus shareholder and I firmly believe the Company is well positioned to capitalise on the many opportunities that the continued evolution of lithium demand growth will present. As foreshadowed in the Notice of Meeting, we will be seeking to change the Company name to Lepidico, a brand that is already well recognised in the lithium industry. With a strong board and management team, an exciting portfolio of assets, a robust financial position and the unique industry position through our licenced technologies, I look forward to future communication with shareholders on our progress.

Yours Faithfully

Chairman

2016 Platypus Minerals Annual Report | 1

REVIEW OF OPERATIONS

In December 2015, Platypus Minerals Limited ("Platypus" or the "Company") shifted its strategic direction to focus on lithium exploration and development, to capitalise on the strong industry fundamentals of the lithium sector. The subsequent acquisition of Lepidico Ltd ("Lepidico"), which was completed in June 2016 was both complimentary to the business and transformational for its outlook. In doing so, Platypus became the owner of the

L-Max® lithium process technology, and a portfolio of exploration assets that includes the Lemare project in Quebec, Canada and the Euriowie project near Broken Hill in Australia. The Company also has joint venture agreements in Argentina and Brazil, and licence agreements for L-Max® with a number of other third parties. These assets and agreements are now the core focus of the Company, which aims to become a lithium asset developer and a producer.

Platypus retains its interest in the East Pilbara Polymetallic project. During the year, Platypus relinquished its rights to the San Damien project and the Minera Chanape venture in Peru, and divested its remaining tenement in the Mt Webb re- gion of Western Australia.

The L-Max® technology is a proprietary process that is the subject of International Patent Application PCT/AU2015/000608. The patent is pending in 148 countries, however in the International Preliminary Report on patentability prepared by the Australian Patent Office, it is acknowledged that L-Max® is novel, inventive, industry applicable and patentable. This conclusion represents a guide for other Patent Offices, before which national and/or regional phase patent applications from the international patent application will be presented in due course.

The L-Max® process allows the extraction and recovery of lithium (chemical symbol Li) from lithium bearing micas such as lepidolite and zinnwaldite. These Li-rich minerals have largely been overlooked until the advent of L-Max® as a source of lithium as no commercially viable process existed to recover this metal, which is essential for many new battery technologies.

Lepidolite

Zinnwaldite

As such, there is a tremendous opportunity for the Company to establish Li-rich micas as a recognised third major source of lithium (alongside brines and spodumene). At brownfields operations, Li-rich micas have typically reported to tailings. Such sources could lead to a low-cost and near-term entry point for the commercialisation of L-Max®.

At greenfields sites, Li-rich mica pegmatites have typically been overlooked providing traditional exploration opportunities for the Company.