Principle 7: Recognise and manage risk

The Company recognises the importance of managing risk and has established systems to assess, monitor and manage risk based on the Company’s size, history and strategy. The exploration and development of natural resources is a speculative activity that involves a high degree of financial risk. Given the size, history and business of the Company, it was not considered by the Board to be a business priority to prepare a risk management policy during the reporting period however, the Board has decided to formalise a policy during the next reporting period.

The Managing Director and the Company Secretary are responsible for the identification and management of business risks. The Board has obtained a written confirmation from the Managing Director and the Company Secretary that the statement in relation to principle 4 above is founded on a sound system of risk management and internal compliance and control. The Board has obtained a statement confirming that the systems are operating efficiently and effectively in all material respects.