CXU Annual Report 2017

(ABN 22 102 912 783)

ANNUAL REPORT

CONTENTS

CORPORATE DIRECTORY 1 DIRECTORS' REPORT 2 AUDITOR'S INDEPENDENCE DECLARATION 34 CORPORATE GOVERNANCE STATEMENT 35 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 36 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 37 CONSOLIDATED STATEMENT OF CASH FLOWS 38 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 39 NOTES TO THE FINANCIAL STATEMENTS 40 DIRECTORS' DECLARATION 65 INDEPENDENT AUDITOR'S REPORT 66 ADDITIONAL SHAREHOLDER INFORMATION 69 SCHEDULE OF MINERAL TENEMENTS 71

CORPORATE DIRECTORY

Antony Sage

Qiu Derong Judy Li Nicholas Sage

Chenchong Zhou

Catherine Grant-Edwards

32 Harrogate Street West Leederville WA 6007 Telephone: (08) 9380 9555

Facsimile: (08) 9380 9666 Website: www.cauldronenergy.com.au

BDO Audit (WA) Pty Ltd 38 Station Street

Subiaco WA 6008

Advanced Share Registry 110 Stirling Hwy

Nedlands WA 6009

Telephone: (08) 9389 8033

Facsimile: (08) 9262 3723

Australian Securities Exchange (Home Exchange: Perth, Western Australia)

Code: CXU

National Australia Bank 100 St Georges Terrace Perth WA 6000

DIRECTORS' REPORT

The directors of Cauldron Energy Limited (Cauldron) submit their report, together with the consolidated financial statements comprising Cauldron and its controlled entities (together the Consolidated Entity) for the financial year ended 30 June 2017.

1. INFORMATION ON DIRECTORS

The names and particulars of the directors of the Consolidated Entity during or since the end of the financial year are as follows. Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Antony Sage Executive Chairman

Qualifications B.Bus, FCPA, CA, FTIA

Experience Mr Antony Sage has in excess of 30 years' experience in the fields of corporate advisory services, funds management and capital raising. Mr Antony Sage is based in Western Australia and has been involved in the management and financing of listed mining and exploration companies for the last 20 years. Mr Sage has operated in Argentina, Brazil, Peru, Romania, Russia, Sierra Leone, Guinea, Cote d'Ivoire, Congo, South Africa, Indonesia, China and Australia. Mr Sage is currently chairman of ASX-listed companies, Cape Lambert Resources Ltd (which was AIM Company of the year in 2008), Fe Ltd, and European Lithium Limited. Mr Antony Sage is also a Non-Executive Director of the National Stock Exchange of Australia (NSX) listed International Petroleum Ltd. He is also the sole owner of A League football club Perth Glory that plays in the National competition in Australia.

Directorships of listed companies held within the last 3 years

Cape Lambert Resources Limited Fe Limited

European Lithium Limited Kupang Resources Limited* Caeneus Limited

International Petroleum Limited** Global Strategic Metals NL***

* Company was delisted August 2015

** Listed on National Stock Exchange of Australia

*** Company was delisted August 2014

December 2000 to present August 2009 to present September 2016 to present September 2010 to August 2015

December 2010 to January 2016 January 2006 to present June 2012 to August 2014

Interest in Shares & Options Fully Paid Ordinary Shares 5,894,600

Qiu Derong Non-Executive Director

Experience Mr Qiu is a highly experienced industrialist with more than 26 years' experience in the architecture, construction and real estate industries in China as well as over 17 years of experience in the management of enterprises and projects throughout the country.

Mr Qiu has a MBA obtained from the Oxford Commercial College, a joint program operated by Oxford University in China.

Directorships of listed companies held within the last 3 years

None

Interest in Shares & options Fully Paid Ordinary Shares 47,544,710

Judy Li Non-Executive Director

Experience Judy Li has over 8 years of extensive international trading experience in hazardous chemical products. She has also been involved in international design works for global corporates and government clients while working for Surbana that has been jointly held by two giant Singapore companies-CapitaLand and Temasek Holdings. Throughout her career, Judy has contributed to building tighter relationship between corporates and governments. Judy earned her masters degree in art with Honors Architecture from University of Edinburgh in the United Kingdom.

Directorships of listed companies held within the last 3 years

None

Interest in Shares & options None