COMMERCIAL - IN - CONFIDENCE ASX QUARTERLY REPORT QUARTER ENDING 3 0 SEPTEMBER 2021 SEPTEMBER 2021 QU ARTER HIGHLIGHTS Barra Resources Limited ( ASX:BAR ) ( Barra or the Company ) is pleased to provide the following report on its activities during the September 2021 quarter. The Company’s primary focus during the reporting period was the planning of future exploration activities at Burbanks , completion of an extensional dri ll program at Phillips Find , and the continuation of the Stage I Trial Mining Joint Venture activities at Burbanks. BURBANKS GOLD PROJECT ? Detailed planning undertaken to support the resumption of exploration ? Initial review of the extensive historical core library completed ? Continuation of the S tage I Trial Mining activities PHILLIPS FIND GOLD PROJECT ? 1,000 metre reverse circulation drill program completed at Newminster ? Drill program targeting known extensions to high - grade mineralisation ? Program completed in early August and assay results since received 1 CO RPORATE ? A ppointment of Mr Michael Edwards as Non - Executive Chairman ? Appointment of Mr Glenn Poole as a Non - Executive Director ? Placement to professional and sophisticated investors raising $2 .15m PLANNED ACTIVITY FOR DECEMBER 2021 QUARTER ? 5,500 metres of Reverse Circulation (RC) and Diamond Drilling (DD) schedule d to commence at Burbanks in early November . A t Birthday Gift, Main Lode and Burb anks North , the Company is seeking to extend zones of known high - grade mineralisation . At Burbanks South, the Company is seeking to undertake an initial phase of infill drilling, leveraging over 2,500 metres of historical work ? Previous intercepts from within the Burbanks Mining Centre, include: ? BBUD329: 4.7m @ 462.1 g/t Au from 244m 2 ; ? BBUD299B: 6.0m @ 39.8 g/t Au from 163m 3 ; and ? BBUD313: 6.0m @ 27.1 g/t Au from 154m 3 Commenting on the September 2021 quarter, Managing Director and CEO, Chris Hansen, commented : “ It has been an other incredibly busy quarter for the Company as we have sought to concurrently accelerate both the corporate renewal process as well as the resumption of aggressive exploration activit y at Burbanks. 1 ASX:BAR 20/10/2021 ; 2 ASX: BAR 21/12/2007 ; 3 ASX: BAR 15/11/2007 ; 4 ASX:BAR 20/05/2016 ; 5 ASX:BAR 23/09/2019, 30/10/2018, 02/08/2019; 6 ASX:BAR 09/09/2019 ASX ANNOUNCEMENT 29 OCTOBER 2021 BARRA RESOURCES LIMITED A.B.N. 76 093 396 859 Corporate Details: ASX Code: BAR Market Cap: $ 19.0 M @ 2. 4 c Issued Capital: 791 M Ordinary Shares Substantial Shareholders: FMR Group 1 2 % DIRECTORS Chairman: Mike Edwards MD & CEO: Chris Hansen Non - Exec: Glenn Poole Non - Exec: Jon Young PROJECTS Mt Thirsty Co - Ni (50%) Coolgardie Au (100%) CONTACT DETAILS www.barraresources.com.au email@example.com Ground Floor, 6 Thelma St West Perth, WA 6005 T: (08) 9481 3911 Barra Resources Ltd | September 2021 ASX Quarterly Report Page 2 of 7 Page 2 Earlier in the quarter we were delighted to welcome both Mi chael Edwards and Glenn Poole to the Board as Non - Executive Chairman and Non - Executive Director , respectively . Mike’s extensive resources experience , combined with his knowledge in corporate governance, risk management and sustainability, will broaden and strengthen the Board's experience and expertise. Whereas Glenn’s previous skills and experience, having specifically worked within similar structurally hosted gold deposits, will bring an invaluable perspective to our exploration strategy. The subsequent over - subscribed placement was a great show of support from the investment community, serving to validate both the quality of the new Board appointees, as well as the exploration prospectiv ity at Burbanks. With our operational team largely rebuilt , we are hopeful that the forthcoming drill campaign at Burbanks will set the foundations for an expanded exploration program in 2022. We look forward to unlocking the latent value in this high - grade and under - explored system.” BURBANKS GOLD PROJECT ABOUT BURBANKS The Burbanks Gold Project is located 9 .0 kilometres southeast of Coolgardie, Western Australia. The Project includes the Burbanks Mining Centre and over 5 .0 kilometres of the highly prospective Burbanks Shear Zone, historically the most significan t gold producing structure within the Coolgardie Goldfield. The Burbanks Mining Centre comprises the Birthday Gift and Main Lode underground gold mines. The recorded historic underground production at Burbanks (1885 - 1961) totalled 444,600t at 22.7 g/t Au f or 324,479oz predominantly from above 140 m etres below the surface. Intermittent open pit and underground mining campaigns between the early 1980’s to present day has seen total production from the Burbanks Mining Centre now exceed 420,000oz . The total Ind icated and Inferred Mineral Resource for the Burbanks Gold Project is 1.2Mt at 3.7 g/t Au for 145,700 ounces of gold (Table 2) 5 . ACTIVITIE S Detailed program planning was undertaken during the quarter to support the resumption of exploration activities at Burbanks , with 5,500 metres of combined Reverse Circulation (RC) and Diamond Drilling (DD) planned, as well as an extensive logging and sampling campaign of existing historical drill core which have been modelled to intercept known orebodies and likely extensions to known orebodies. The principal focus of the forthcoming drilling at Birthday Gift, Main Lode and Burbanks North is to extend zones of known high - grade mineralisation which will subsequently support lat t er phases of infill drilling required for resource updates. At Burbanks South, the Company is seeking to undertake an initial phase of infill drilling, leveraging over 2,500 metres of historically completed drilling which will support future resource update s. The Company also undertook an initial review of the extensive historical drill core library during the quarter (over 60.0 kilometres historically drilled at Burbanks) with the purpose of identifying unsampled drill core, either passing through , or adjac ent to , known orebodies. The initial review identified 25 high priority unsampled drill core intervals, of which 15 holes have been prioritised for logging and sampling. Stage I Trial Mining activities within the Main Lode Initial Licence Area remain on schedule with lateral development in both ore and waste continuing across all three levels ahead of stoping beginning in December 2021. Following which, the recovered ore will then be processed through the neighbouring Greenfields Mill. As at the end of the September quarter , 5,650 tonnes and 39,550 tonnes of ore and waste had been mined respectively through the completion of 1,050 metres of development. Barra Resources Ltd | September 2021 ASX Quarterly Report Page 3 of 7 Page 3 The Stage I Trial Mining Joint Venture is expected to materially de - risk the project through the provision of invaluable technical and financial information which will guide future production decisions. PHILLIPS FIND GOLD PROJECT ABOUT PHILLIPS FIND Barra’s 100% owned Phillips Find Gold Project is located 50 kilometres north of Coolgardie , Western Australia. The project covers over 10 kilometres in strike of prospective greenstone stratigraphy , and includes the Phillips Find Mining Centre (PFMC) where approximately 33,000oz of gold was produced between 1998 and 2015 fro m three open - pit operations; Bacchus Gift, Newhaven and Newminster. Exploration potential within the project is excellent , with numerous targets defined by auger geochemical anomalism, mapping and drilling. ACTIVITIES During the quarter , a 620 metre drill campaign w as completed, compris ing three RC drill - holes targeting economic extensions to the main zone of high - grade mineralisation (Central Lode) which extend beneath the existing Newminster pit at the Phillips Find Mining Centre (PFMC). Specifical ly, the program serve d to meet expenditure requirements while also following - up on encouraging RC drill intercepts from the previous 2016 drill campaign, which included 4 : ? PFRC097: 5.0m @ 11.0g/t Au from 117 m ; ? PFRC098: 8.0m @ 6.3g/t Au from 100 m ; and ? PFRC099: 5.0m @ 7.5g/t Au from 70 m . MT THIRSTY COBALT - NICKEL PROJECT ABOUT MT THIRSTY The Mt Thirsty Joint Venture (MTJV) is located 16 kilometres north - northwest of Norseman, Western Australia ( 50% Barra Resources , 50% Conico Limited). The Project contains the Mt Thirsty c obalt - n ickel o xide d eposit with a reported mineral resource of 26.9Mt at 0.126% cobalt , and 0.54% nickel 6 . A Pre - Feasibility Study (PFS) of the P roject was completed and announced to the ASX on 20 th February 2020. In a ddition to the Co - Ni o xide d eposit, the Project also hosts nickel sulphide mineralisation potential . ACTIVITIES No material work was completed during the quarter beyond the continuation of Native Title negotiations with the Ngadju Traditional Owners . CORPORATE BOARD RENEWAL AND NEW APPOINTMENTS During the quarter the Company was pleased to announce the appointment of Mr Mi chael Edwards as Non - Executive Chairman of the Company, and the appointment of Mr Glenn Poole as initially a Non - Executive Director and on , or before , 17 November 2021 , the Technical Director & Chief Geologist of the Company . As part of the continued Board ren ewal process, Mr Gary Berrell and Mr Grant Mooney resigned with immediate effect. Barra Resources Ltd | September 2021 ASX Quarterly Report Page 4 of 7 Page 4 CAPITAL RAISE During the quarter , the Company completed a n over - subscribed placement to professional and sophisticated investors raising $2,150,000 (before costs) through the issue of 126,470,588 fully paid ordinary shares at $0.017 per share . Firm commitments received also include d management and director participation of $220,000, which will be subject to shareholder approval at the Comp any’s forthcoming Annual General Meeting. FINANCIAL POSITION As at the end of the quarter, the Company ha d $ 2.3 million in cash. EXPLORATION AND EVALUATION EXPENDITURE Exploration and evaluation expenditure for the preceding quarter ending June 2021 totalled $ 212,000 , with $ 170,000 attributable to assaying and drilling costs for the previously completed Phillips Find RC drill campaign; $ 30,000 attributable to general expenditure at Burbanks, and a further $ 12,000 of expenditure attributable to the Com pany’s share of joint venture expenditure at Mount Thirsty. Please note that minor discrepancies may occur due to rounding . RELATED PARTY PAYMENTS Payments to related parties of the Company and their associates during the quarter totalled $ 90,000 . P ayment s were made to the Directors and Associates for salaries, superannuation and consulting fees. This announcement is authorised by the Board of Directors. - END - Chris Hansen Managing Director & Chief Executive Officer Barra Resources Limited E: firstname.lastname@example.org DI SCLAIMER The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no cla im for complete certainty. Any economic decisions that might be taken based on interpretations or conclusions contained in this report will therefore carry an element of risk. This report contains forward - looking statements that involve several risks and u ncertainties. These forward - looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available in formation. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this report. No obligation is assumed to update forward - looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Barra Resources Ltd | September 2021 ASX Quarterly Report Page 5 of 7 Page 5 COMPETENT PERSONS ’ STATEMENTS Project and Discipline JORC Section Competent Person Employer Professional Membership Coolgardie Gold Projects Geology Exploration Results Glenn Poole Barra Resources Ltd MAIG Birthday Gift and Christmas Pit Resource Estimation Mineral Resources Richard Buerger Mining Plus Pty Ltd MAIG Main Lode and Burbanks North Resource Estimation Mineral Resources Andrew Bewsher BM Geological Services Pty Ltd MAIG Mt Thirsty Geology Exploration Results and Mineral Resources Michael J Glasson Tasman Resources Ltd; Consultant to MTJV; holds shares in Conico Ltd MAIG Mt Thirsty Resource Estimation Mineral Resources David Reid Golder Associates Pty Ltd MAusIMM Mt Thirsty Metallurgy Exploration Results and Ore Reserves Peter Nofal AMEC Foster Wheeler Pty Ltd trading as Wood FAusIMM Mt Thirsty Mining Ore Reserves Frank Blanchfield Snowden Mining Industry Consultants Pty Ltd FAusIMM Table 1 – Competent Persons The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves for the Mt Thirsty Cobalt - Nickel Project and Coolgardie Gold Projects is based on and fairly represents information compiled by the Competent Persons listed in the table above. The Competent Persons have sufficient releva nt experience to the style of mineralisation and type of deposits under consideration and to the activity for which they are undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). For new information, the Competent Persons consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. Previously announced information is cross referenced to the original announcements. In these cases, the company is not aware of a ny new information or data that materially affects the information presented and that the material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and con text in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements. ABOUT BURBANKS The Burbanks Gold Project is located 9km southeast of Coolgardie, Western Australia. The Project includes t he Burbanks Mining Centre and over 5km of the highly prospective Burbanks Shear Zone, historically the most significant gold producing structure within the Coolgardie Goldfield. The Burbanks Mining Centre comprises the Birthday Gift and Main Lode undergrou nd gold mines. The recorded historic underground production at Burbanks (1885 - 1961) totalled 444,600t at 22.7 g/t Au for 324,479oz predominantly from above 140m below the surface. Intermittent open pit and underground mining campaigns between the early 198 0’s to present day has seen total production from the Burbanks Mining Centre now exceed 420,000oz. The total Indicated and Inferred Mineral Resource for the Burbanks Gold Project is 1.2 Million tonnes (Mt) at 3.7 g/t Au for 145,700 ounces of gol d (Table 1). The position of the Mineral Resource within the strike of the Project is shown in Figure 3. Deposit Cut - Off g/t Au Indicated Inferred Total kt Grade g/t Au Ounces kt Grade g/t Au Ounces kt Grade g/t Au Ounces Christmas Open Pit 1.0 5.7 6.2 1,100 4.0 7.8 1,050 9.7 6.9 2,150 Birthday Gift Underground Mine 2.5 180 6.0 34,750 325 5.6 58,500 505 5.7 93,250 Main Lode Deposit 1.0 106 2.8 9,700 254 2.5 20,200 360 2.6 29,900 Burbanks North 1.0 360 1.8 20,400 360 1.8 20,400 Total 1.0/2.5 291 4.9 45,550 943 3.3 100,150 123 5 3.7 145,700 All tonnages reported are dry metric tonnes . Minor discrepancies may occur due to rounding to appropriate figures. For full details of the Birthday Gift and Christmas Pit Mineral Resources, refer to ASX:BAR 23/9/19. For full details of the Main Lode Resource, refer to ASX:BAR Release dated 30/10/18 , and for Burbanks North 2/08/19. Table 2 – Burbanks Global Mineral Resource Barra Resources Ltd | September 2021 ASX Quarterly Report Page 6 of 7 Page 6 APPENDIX 1 – ASX ANNOUNCEMENTS DURING THE QUARTER ? Resumption of Aggressive Exploration at Burbanks, 23 September 2021 ? Notice of Annual General Meeting, 21 September 2021 ? Annual Report to shareholders, 16 September 2021 ? $2.15M Placement to Accelerate Exploration, 30 August 2021 ? Board Renewal & New Appointments, 19 August 2021 ? Operational Update, 16 August 2021 ? Quarterly Activities Report, 30 July 2021 ? Extensional Drilling t o Commence at Newminster, 12 July 2021 Barra Resources Ltd | September 2021 ASX Quarterly Report Page 7 of 7 Page 7 APPENDIX 2 – TENEMENT LISTING Tenement Project Location Change in Interest (%) during Quarter End of Quarter Acquired Disposed E63/1267 Mt Thirsty WA 50 E63/1790 WA 50 L63/80 WA 50 L63/81 WA 50 L63/91 WA 50 P63/2045 WA 50 R63/4 WA 50 M15/161 Burbanks WA 100 P15/5249 WA 100 P15/5412 WA 100 M16/130 Phillips Find WA 100 M16/133 WA 100 M16/168 WA 100 M16/171 WA 100 M16/242 WA 100 M16/258 WA 100 M16/550 WA 100 P16/2985 WA 100 P16/2986 WA 100 P16/2987 WA 100 P16/2988 WA 100 P16/2998 WA 100 P16/2999 WA 100 P16/3037 WA 100 100 P16/3038 WA 100 100 P16/3039 WA 100 100 P16/3040 WA 100 100 P16/3041 WA 100 100 P16/3042 WA 100 P16/3043 WA 100 P16/3084 WA 85 P16/3085 WA 85 P16/3086 WA 85 P16/3087 WA 85 P16/3088 WA 100 Rule 5.5 A SX Listing Rules Appendix 5B (01/ 12 /19) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms. Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity Barra Resources Limited ABN Quarter ended (“current quarter”) 76 093 396 859 30 September 2021 Consolidated statement of cash flows Current quarter $A’000 Y ear to date ( 3 m on ths) $A’000 1 . Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (if expensed) (b) development (c) production (d) staff costs ( 75 ) ( 75 ) (e) administration and corporate costs ( 95 ) ( 95 ) 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities ( 1 70 ) ( 1 70 ) 2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (if capitalised) ( 212 ) ( 212 ) (e) investments (f) other non - current assets Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report A SX Listing Rules Appendix 5B (01/ 12 /19) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms. Consolidated statement of cash flows Current quarter $A’000 Y ear to date ( 3 m on ths) $A’000 2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non - current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities ( 212 ) ( 212 ) 3. Cash flows from financing activities 1, 930 1, 930 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities (114) ( 114 ) 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other ( repayment of leases ) (15) (15) 3.10 Net cash from / (used in) financing activities 1,8 01 1,8 01 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report A SX Listing Rules Appendix 5B (01/ 12 /19) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms. 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 839 839 4.2 Net cash from / (used in) operating activities (item 1.9 above) ( 170 ) ( 1 70 ) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (212) (212) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 1,801 1, 801 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period 2,258 2,258 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1 Bank balances 650 112 5.2 Call deposits 1,608 727 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 2,258 839 6 . Payments to related parties of the entity and their associates Current quarter $A'000 6 .1 Aggregate amount of payments to related parties and their associates included in item 1 90 6 .2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report A SX Listing Rules Appendix 5B (01/ 12 /19) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms. 7 . Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility a mount at quarter end $A’000 Amount drawn at quarter end $A’000 7 .1 Loan facilities 7 . 2 Credit standby arrangements 7 .3 Other (please specify) 7 .4 Total financing facilitie s 7 .5 Unused financing facilities available at quarter end 7 . 6 Include in the box below a description of each facility above, including the lender, interest rate , maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. 8 . Estimated cash available for future operating activities $A’000 8 .1 Net cash from / (used in) operating activities (Item 1.9) ( 170 ) 8.2 Capitalised exploration & evaluation (Item 2.1(d)) ( 212 ) 8.3 Total relevant outgoings (Item 8 . 1 + Item 8.2 ) ( 382 ) 8 . 4 Cash and cash equivalents at quarter end (Item 4.6) 2,258 8 . 5 Unused finance facilities available at quarter end (Item 7 .5 ) - 8 . 6 Total available funding (Item 8 . 4 + Item 8 . 5 ) 2,258 8 . 7 Estimated quarters of funding available (Item 8. 6 divided by Item 8. 3 ) 5.9 quarters 8 . 8 If Item 8 . 7 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: N/A 2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: N/A 3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: N/A Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report A SX Listing Rules Appendix 5B (01/ 12 /19) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms. Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A . 2 This statement give s a true and fair view of the matters disclosed . Date: 2 9 October 2021 Authorised by: By the Board (Name of body or officer authorising release – see note 4 ) Notes 1 . Th is quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter , how they have been financed and the effect this has had on its cash position. An entity that w ishe s to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, t he definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 10 7 : Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report . 3 . Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities , depending on the accounting policy of the entity . 4. If th is report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ] ”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , th e board should have receiv ed a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained , that this report complies with the appropriate accounting standards and give s a true and fair view of the cash flows of the entity , and that the ir opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively .