b'CENTAURUS METALS ANNUAL REPORT 2023 Financial Report31 December 2023Judgements Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the consolidated financial statements is included below and also in the following notes: Note 15 - Other Receivables and Prepayments; and Note 17 - Exploration and Evaluation Assets. The application of the Groups accounting policy for exploration and evaluation expenditure requires judgement to determine whether future economic benefits are likely, from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves. Assumptions and Estimation Uncertainties Information aboutassumptions and estimation uncertainties that have a significantriskof resulting in amaterial adjustment to the carrying amounts of assets and liabilities in the year ending 31 December 2023 is included in Note 17Exploration and Evaluation Assets. In addition to applying judgement to determine whether future economic benefits are likely to arise from the Groups Exploration and Evaluation assets or whether activities have not reached a stage that permits a reasonable assessment of the existence of Reserves, the Group has to apply a number of estimates and assumptions.The Group is required to make estimates and assumptions as to future events and circumstances, in particular, whether successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will be achieved. Critical to this assessment are estimates and assumptions as to Ore Reserves, the timing of expected cash flows, exchange rates, commodity prices and future capital requirements. Changes in these estimates and assumptions as new information about the recoverability of Ore Reserves becomes available, may impact the assessment of the recoverable amount of exploration and evaluation assets.If, after the expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is unlikely, the relevant capitalised amount is written off to profit or loss in the period when that information becomes available. Measurement of Fair Values A number of the Groups accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.Fair values have been determined for measurement and/or disclosure purposes based on the methods described below.When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. a)Trade and Other Receivables The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. b)Share-based Payment Transactions The fair value of employee share options is estimated using the applicable valuation methodology.Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted averagehistoricvolatilityadjustedforchangesexpecteddueto publiclyavailableinformation),weightedaverage expectedlifeoftheinstruments(basedonhistoricalexperienceandgeneraloptionholderbehaviour),expected dividends, and the risk-free interest rate (based on government bonds).Service and performance conditions attached to vesting are not taken into account in determining fair value.Where the service period commences prior to grant date the fair value is provisionally calculated and subsequently revised upon grant date. Note 5.Material Accounting Policies The Group has consistently applied the following accounting policies to all periods presented in these consolidated financial statements. Basis of Consolidation a)Subsidiaries Subsidiaries are entities controlled by the Group.The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Page 30 of 54 56 ANNUAL REPORT CENTAURUS METALS LIMITED CENTAURUS METALS LIMITED ANNUAL REPORT 57'