b'CENTAURUS METALS ANNUAL REPORT 202315Remuneration ReportAudited 15.1Principles of Remuneration The primary objective of the Groups executive reward framework is to ensure reward for performance is competitive andappropriatefortheresultsdelivered.Theframeworkalignsexecutiverewardwithachievementofstrategic objectives and the creation of value for shareholders.The Companys Remuneration Committee is a sub-committee of the Board. Specialist remuneration advisors are engaged by and report directly to the Remuneration Committee. In selecting remuneration advisors the Remuneration Committee considers any potential conflicts of interest and ensures independence from KMP. During the period, the Remuneration Committee sought advice from external remuneration advisors in relation to remuneration benchmarking for Executive KMP and Non-Executive Directors.The work undertaken by the remuneration advisors did not involve providing the Remuneration Committee with any remuneration recommendations as defined by the Corporations Act 2001. The Board considers the recommendations of the Remuneration Committee in ensuring that executive reward satisfies the following key criteria: competitiveness and reasonableness; acceptability to shareholders; link to short and long term objectives which enhance shareholder value; transparency; and capital management. The Group has structured an executive remuneration framework that is market competitive and consistent with the reward strategy of the organisation. The Board seeks to align shareholder and participant interests by ensuring the Companys remuneration framework applies the following principles;focuses on the creation of shareholder value and returns;attracts competent individuals to key executive roles;retains high calibre executives with an inherent knowledge of the Companys ongoing business and activities; rewards capability and experience; reflects competitive reward for contribution to growth in shareholder wealth; provides a clear structure for earning rewards; and provides recognition for contribution to the Groups objectives. The remuneration framework consists of Total Fixed Remuneration and short and long-term incentives. Whilst intended to be settled in cash, the Board retains the discretion to settle short-term incentives with equity. An Employee Share Incentive Plan (ESIP) was approved by shareholders at the AGM in May 2022 and incentives settled in equity may be offered under this plan.The overall level of executive reward takes into account the performance of the Group over a number of years. Over the past 5 years, the Group was involved in mineral exploration and pre-development activities and therefore growth in earnings is not considered a relevant measure. Shareholder wealth is currently heavily impacted by broader market factors like the surplus nickel supply out of Indonesia and the associated impact nickel price but in 2023, delays in the delivery of the Jaguar Feasibility Study have also likely impacted shareholder wealth. The global nickel market is facing challenges due to an excess supply of nickel from Indonesia and softer demand growth from the EV section. This oversupply from Indonesia has led to a 35% reduction in nickel prices over the last 12 months which has, in turn, forced the closure of a number of nickel sulphide mines in Australia due to higher cost structures and severely impacted investor sentiment for nickel stocks listed in Australia.The performance of the Group in respect of the current period and the previous four financial years is set out below: 2023 $2022 $2021 $2020 $2019 $ Net Loss(40,740,002)(42,627,555)(16,994,715)(11,468,825)(4,275,397) Change in share price(1) ($0.585)$0.010$0.290$0.625$0.090 Change in share price(52%)1%35%321%- (1)In April 2020 the Company completed a 15-for-1 share consolidation, comparatives have been restated.40 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS LIMITED ANNUAL REPORT 41Page 14 of 54'