Icon Energy Limited Annual Report 2022

Notes to the Consolidated Financial Statements for the year ended 30 June 2022 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2022 30 June 2022 30 June 2021 $ $ 3,910,950 5,573,517 678,262 4,144,990 (292,983) - - (5,807,557) 4,296,230 3,910,950 NOTE 8 - LEASES Right‐of‐use asset ‐ Building 118,905 115,639 Depreciation charge for the year (75,394) (74,067) Reassessment to right-of-use assets (5,605) 77,332 37,905 118,905 Lease liabilities Current 41,315 75,973 Non-current - 47,497 41,315 123,470 Less: Depreciation of restoration asset Consolidated Entity Exploration and evaluation expenditure is only carried forward if it is expected to be recovered. The ultimate recoupment of these costs is dependent on the successful development and exploitation, or alternatively farmout of the respective areas of interest. In assessing the recoverability of exploration and evaluation expenditure in the financial report, the directors have considered the impacts of relationships with joint venture operators, future funding arrangements and planned future expenditure in relation to mining leases held. In the prior year, the restoration provision for ATP 855 was reviewed and increased due to the restoration of the remaining four wells being rescheduled to be completed in three years time. An updated estimate for the remainder of the work was acquired. Therefore, the corresponding asset was increased by $4,144,990. Subsequently, the Group assessed its exploration and evaluation assets for impairment and recorded an impairment of $4,144,990 CONSOLIDATED ENTITY Less: Impairment At 30 June 2022 ATP 594 was already fully impaired in previous periods and hence no further impairment was required. ATP 594 expired on 16 April 2021, is now in the process of being relinquished and hence has been written off. NOTE 7 - EXPLORATION AND EVALUATION EXPENDITURE (Continued) The impairment of the carrying value of past exploration expenditure does not affect the potential prospectivity of the tenements themselves and does not affect any existing resource certification. The Group continues to seek funding and/or joint venturers to continue work on the ATP 855 tenement. As at 31 June 2022, Icon did not accepted the offer from the Victorian Dept of Earth Resources to take up PEP 170, 172 and 173 tenements in the Gippsland Basin. Balance at the end of the year Increase/(decrease) in the restoration asset This note provides information for leases where the group is a lessee. The consolidated interim statement of financial position shows the following amounts relating to leases: Despite the extension of the term of PRLs 35, 37, 38, 41, 43, 44, 45, 48 and 49 until 2024, the joint operation has no budgeted exploration works plan in place to perform exploration activity on these tenements in the future. As a result, this exploration asset has been fully impaired in the period ended 30 June 2021 in order to comply with the mandatory requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. At 30 June 2021, an impairment of $1,662,567 was recorded for PEP 170 and PRLs 35, 37, 38, 41, 43, 44, 45, 48 and 49 . Balance at beginning of the year The consolidated statement of profit or loss shows the following amounts relating to leases: Balance at the end of the year At 30 June 2022, the restoration provision for the remainder of the work was reviewed and increased based on the updated estimate from an independent assessor. Therefore, the corresponding asset was increased by $678,262 (30 June 2021: $4,144,990). Subsequently, the Group assessed its exploration and evaluation assets for impairment and due to substantative expenditure on further exploration being planned, no impairment was recorded and impairment of $57,699 recorded at half year was reversed as at 30 June 2022. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Balance at beginning of the year Reconciliations 44 Icon Energy Annual Report 2022

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