Argosy Minerals Limited‌‌

ABN 27 073 391 189

Annual Report - 31 December 2015

Argosy Minerals Limited Table of Contents

31 December 2015

Corporate directory 1

Directors' report 2

Auditor's independence declaration 10

Corporate Governance Statement 11

Statement of profit or loss and other comprehensive income 17

Statement of financial position 18

Statement of changes in equity 19

Statement of cash flows 20

Notes to the financial statements 21

Directors' declaration 36

Independent auditor's report to the members of Argosy Minerals Limited 37

Shareholder information 39

Argosy Minerals Limited Corporate Directory

31 December 2015

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Argosy Minerals Limited Directors' Report

31 December 2015

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Argosy Minerals Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled for the year ended 31 December 2015.

Directors

The following persons were directors of Argosy Minerals Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

Principal activities

The principal activity of the Group during the period was the development of exploration projects for graphite, copper, lithium, base metals and other mineral commodities. No significant change in the nature of this activity occurred during the financial period.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial year.

Review of operations

The net loss for the consolidated entity after providing for income tax amounted to $321,565 (31 December 2014: $67,270 profit).

CORPORATE

Capital Raisings and Loan Repayments

On 13 August 2015, Discovery Africa Limited (ASX:DAF) announced to the market that they had sold their entire shareholding in Argosy Minerals (28.6%) and therefore on this date ceased to be an associate of Argosy Minerals Ltd.

On 14 August 2015, the Company closed out the $100,000 loan owing to Discovery Africa Limited by the issue of 50,000,000 ordinary fully paid shares in the Company at an issue price of $0.02. This repayment was in line with the previously agreed recapitalisation of the Company conducted in 2014 and represented the full and final settlement of any monies owed to Discovery Africa Limited.

Board Changes

On 28th October 2015, the Company accepted the resignation from Mr Frank Knezovic as the Non-Executive Chairman and the Company then appointed Ms Andrea Betti as a new Non-Executive Director. On this date Ms Betti was also appointed as Argosy's Company Secretary, to replace Mr Matic who resigned from this role. Mr Matic then simultaneously took up the role as the Company's Non-Executive Chairman.

EXPLORATION

Argosy Minerals Limited is an Australian based mineral exploration company with an option to purchase the Mt Paris Lithium Project in Tasmania, has a farm-in joint venture agreement (earning up to 80%) in the rapidly emerging Wee MacGregor Copper-Gold Project in Queensland, and also has a 100% interest in the Erongo Graphite Project in Namibia.

Mt Paris Lithium Project

The Mt Paris Lithium Project comprises one granted exploration licence covering an area of 115km², located approximately 60km northeast of Launceston with access via the sealed Tasman Highway. Argosy executed a Heads of Agreement with Geotech International Pty Ltd in February 2016, granting the Company a two-year option period to purchase the Project.

The Project targets lithium mineralisation within the extensive greisen swarms located within the exploration licence. Previous explorers, all targeting tin mineralisation, classified the hard rock deposits into quartz-greisen veins, stanniferous greisen lodes surrounded by zones of kaolinite-altered granite, and flat-lying greisen sheets, which are all associated with the undulating granite roof-zone/cupola. The greisens and associated pegmatites are prospective for lithium micas (zinnwaldite), lithium pyroxene (spodumene) and lithium clays (hectorite).

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