Wiluna Mining Corporation Ltd: Half Year Financial Report - Explanation of Results

Perth, Australia - Wiluna Mining Corp. (ASX:WMX) (FRA:NZ3) (OTCMKTS:WMXCF) reports its financial results for the half-year ended 31 December 2020.

EXPLANATION OF HALF-YEAR INFORMATION

- There was significant investment of $30m into Mine Development, Resource/Reserve definition/drilling activities, and plant and equipment. These major investing activities will sustain and create substantial value over the next 6-12 months as the Company transitions to its three-year development plan to produce 250kozpa.

- Ongoing investing activities relating to the current free-milling operations will be minimal and the Company expects operating margins and net operating cash flows to increase. Future transitional cash flows generated from the current free-milling operations will be able to be applied against future debt repayments as well as partially fund the three-year development plan related activities.

- Owing to a combination of operating performance and proceeds from equity transactions, the Company continued to strengthen the balance sheet, having improved its working capital position by A$15m since 30 June 20201.

- Net profit for the half-year ended 31 December 2020 of $11m. Gross profit and cash flows from operations of A$9m and A$1m respectively, was underpinned by gold production of 26,758oz at an All in Sustaining Cost ('AISC') of A$1,839/oz.

A review of the Company's operations is provided in the Directors' Report in the Half-Year Financial Report.

To view the half year financial report, please visit:
https://media.abnnewswire.net/media/en/docs/ASX-WMX-6A1022118.pdf

About Wiluna Mining Corporation Ltd:

Wiluna Mining Corp. (ASX:WMX) (OTCMKTS:WMXCF) is a Perth based, ASX listed gold mining company that controls over 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. The Yilgarn Craton has a historic and current gold endowment of over 380 million ounces, making it one of most prolific gold regions in the world. The Company owns 100% of the Wiluna Gold Operation which has a defined resource of 8.04M oz at 1.67 g/t au. In May 2019, a new highly skilled management team took control of the Company with a clear plan to leverage the Wiluna Gold Operation's multi-million-ounce potential.

Source:
Wiluna Mining Corp. Ltd

Contact:

Milan Jerkovic Executive Chair +61 8 9322 6418 Jim Malone General Manager Investor Relations +61 419 537 714 Dannika Warburton Media & Communications +61 401 094 261