Thomson Resources : FY22 Half Year Financial Statements

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DIRECTORS

The names of the Company's directors in office during the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

REVIEW AND RESULTS OF OPERATIONS

The net results of operations after income tax expense for the half year was a loss of $1,457,225 (2020: $1,010,230).

New England Fold Belt Hub & Spoke

Thomson has aggressively pursued its consolidation strategy in the NSW and Qld border region, to bring together into an overarching project, a large precious silver - gold, base and technology metal (zinc, lead, copper, tin) project that could be potentially developed and centrally processed as part of Thomson's New England Fold Belt Hub & Spoke Strategy.

Thomson's New England Fold Belt Hub and Spoke Strategy encompasses the 100% owned Texas (including the Twin Hills, Mt Gunyan and Silver Spur deposits), Webbs and Conrad projects. Resources for these projects have been published by previous owners of these projects. Thomson has been systematically reviewing these projects with the goal of delivering JORC 2012 compliant Mineral Resource Estimates (MREs) for each deposit. The first of these MREs was delivered for the Conrad deposit during the period.

Texas Silver District

The Texas district is a key project in the Company's New England Fold Belt (NEFB) Hub and Spoke central processing strategy.

Thomson began a district scale exploration program aimed at defining new targets outside of the known resource areas for drill testing in 2022. The Company began compiling an extensive patchwork of historic exploration data sets for the Texas District which has been amassed over decades of exploration by previous explorers at a considerable expense by them.

As part of the exploration program over the Texas Silver District, Thomson commenced a 10 line-km IP electrical geophysics program during the period. The northern lines of the Thomson IP survey are designed to test the projected extension of the Stokes Fault under cover to the northwest from the Twin Hills pit.

Silver Spur Deposit

In December 2021, Thomson completed the acquisition for 100% of the Silver Spur Mining Lease, which covers the historic high-grade Silver Spur Mine, located only 2km away from the Twin Hills Silver Deposit.

Thomson's resource consultants, AMC, commenced calculations for a JORC 2012 compliant MRE for the Silver Spur deposit. Analysis of historic geophysics and recent structural interpretations by the Company's geoscience consultants, Global Ore Discovery, has highlighted a series of compelling exploration targets in the mine area. A comprehensive reevaluation of the Silver Spur deposit has been completed by Thomson consultants.

After the reporting period, Thomson has announced an MRE for the Silver Spur Mine.

Twin Hills and Mt Gunyan Deposits

During the period, the Company advanced operations in defining an MRE for each of the Twin Hills silver-gold deposit and the Mt Gunyan silver-gold deposit.

Twin Hills is a bulk-minable, silver - gold deposit with minor associated zinc, lead and copper. Only approximate 25% of the known sulphide deposit has been mined via previous open pit mining and heap leach operations. This has left most of the deposit unmined and silver - gold sulphide mineralisation outcropping in the pit floor, easily accessible for a potential restart of mining operations.

After the reporting period, Thomson announced an MRE for each of the Twin Hills and Mt Gunyan Deposits.

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Conrad Silver Project

During the reporting period, the Company published an Indicated and Inferred Mineral Resource Estimate (MRE) in accordance with JORC 2012 for the 100% owned Conrad silver polymetallic project of 3.33 Mt at 193 g/t AgEq for a contained 20.72 Moz AgEq.

Thomson initiated a detailed geological mapping and rock chip sampling program at the 7.5km long Conrad lode system to test for extensions to known areas of mineralisation.

Webbs Silver Project

No on ground exploration work was conducted at the Webbs Silver Project over the period. However, the Company's technical and metallurgical consultants undertook detailed preparatory work towards delivering a JORC 2012 compliant Mineral Resource Estimate for the Webbs deposit.

Mt Carrington Gold Project

Thomson made significant progress with its earn-in obligations at Mt Carrington during the period. Thomson was appointed as Mine Operator of the Mt Carrington Mine under the Work Health and Safety (Mines and Petroleum Sites) Regulation 2014 and completed compliance activities to maintain the tenements in good standing.

The Definitive Feasibility Study (DFS) and Environmental Impact Statement (EIS) were also advanced during the period as part of the earning-in.

Lachlan Fold Belt

Given the experience of putting together and working on the New England Fold Belt Hub and Spoke Strategy, Thomson considers that its Lachlan Fold Belt projects will equally lend themselves to the implementation of a Hub and Spoke Strategy once more is known about the existing gold and tin deposits as well as the new areas added that are yet to be the subject of Thomson on-ground exploration activity.

A forward exploration program for the Lachlan Fold Belt Projects was developed during the reporting period and drill rigs were secured. Due to unforeseen weather conditions the program was delayed and was not able to be commenced until after the end of the reporting period.

Barellan Gold Project

Thomson completed the acquisition of the Barellan Gold Project (EL7896) from private company Cape Clear (Lachlan) Pty Ltd and ASX listed Carpentaria Resources Ltd (ASX:CAP).

The Barellan EL 7896 is approximately 25km northwest of Thomson's Harry Smith gold project and has similar host rocks. The main prospect in EL7896 is the Warrawong Prospect. This includes the Daley and Greig historic gold workings, which consisted of 3 shafts along a NW-trendingline-of-lode.

Harry Smith Gold

The Company completed a new geological interpretation of the Harry Smith Gold project, which outlines three sub-parallel lodes 200m apart, that run WNW-ESE in a corridor running NNW-SSE. The new interpretation also suggests that there is significant potential for repeats, both within the NNW-SSE corridor as well as repeats of the whole corridor itself.

Wargin Application ELA6364

Thomson submitted an application for a further Exploration Licence - Wargin (ELA6364) for an area of 100 units immediately east of Thomson's existing Buddigower tenement (EL9208) and north of its Buggajool tenement (EL9112). It has the NW extent of the Valley View gold anomaly and covers the Wargin granite which is the same age, 430Ma +/-3 million years, as the Yalgogrin Granite as well as the Grong Grong Granite at the Harry Smith gold project.

The Farm-in agreement with Silver Mines Ltd (ASX: SVL) entered into October 2016 has expired without Silver Mines earning an interest in EL7391. Thomson is now free to progress its own exploration activities on the Havilah tenement.

Queensland Gold & Silver

Chillagoe Gold Project

Thomson was awarded a grant for $100,000 in August which will partly fund a 3,000 line kilometre high resolution airborne magnetic survey west of Chillagoe to help define intrusion related mineralisation targets

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Corporate

Thomson undertook a USA institutional share placement to raise approximately A$4.83 million. The Share Placement was conducted at A$0.075 per share and subscribers for the new shares also receive 3 options for every 4 new shares subscribed for, with each option having an exercise price of A$0.115 and an exercise period of 3 years from the date of issue.

Non-renounceable entitlement offer was heavily oversubscribed by eligible shareholders with applications for Entitlements and Additional New Options totalling 680,150,288 New Options. The New Options are exercisable at A$0.115 on or before 28 October 2024 and are now quoted on ASX. Applications for Additional New Options will be scaled back to the number available under the Shortfall Offer, meaning the Company has successfully raised the maximum of $138,859 (before costs).

Thomson completed its dual listing on the OTCQB Market in the United States and the Company's shares are now listed for trading under the code "TMZRF".

Unlisted options with an exercise price of $0.06 and an expiry date of 30 November 2021 have been exercised. Originally there were 13,500,000 options issued by the Company, all of which have now been exercised, which means that the exercise of all these options has aggregated $810,000 in additional funds for the Company.

Thomson has made several key appointments and changes to its Senior Management team, which reflects its ongoing evolution into a minerals development company. The team now comprises:

• Executive Chairman - David Williams
• Technical Director - Eoin Rothery
• Non-ExecutiveDirector & Company Secretary - Richard Willson
• General Manager Operations - Graeme Skelton
• General Manager Exploration - Martin Bennett
• Manager HSE - Mark Martyr
• Manager Environmental Approvals and Compliance - Candice Nucifora

PRINCIPAL ACTIVITIES

The principal activity of the Company is exploration for the discovery and delineation of high-grade base and precious metal deposits principally within the Lachlan and New England Fold Belt of NSW and the development of those resources into cash flow generating businesses. In addition, the Company continues to review other opportunities in the Australian minerals sector.

DIVIDENDS

No dividends were paid or proposed during the period.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

• The Company has entered into an Equity Funding Facility Agreement with Securities Vault Pty Ltd to assist with funding the Company's upcoming exploration, technical study and development initiatives across the New England
  Fold Belt Hub and Spoke Project Portfolio (see Thomson ASX Release dated 4 February 2022 for further details).
• The Company has entered into a A$2.6 million placement agreement with strategic investment fund Patras Capital Pte Ltd to provide underlying funding for the next 4 months (see Thomson ASX Release dated 8 March 2022 for further details).