Wolf Minerals Limited Interim Financial Report -3-

   Issued capital                          17      226,270,267      226,295,680 
   Reserves                                         17,044,249        7,379,975 
   Accumulated losses                             (15,406,318)     (12,608,741) 
 
TOTAL EQUITY                                       227,908,198      221,066,914 
                                               ===============  =============== 
 

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2014

 
                        Issued        Accumulated        Share       Cash Flow       Foreign          Total 
                        Capital          Losses          Based         Hedge        Currency 
                                                       Payments       Reserve      Translation 
                                                        Reserve                      Reserve 
                           $               $               $             $              $               $ 
 
   Balance at 1 
    July 2013          45,698,632      (8,877,167)     2,498,535             -         871,707      40,191,707 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
   Loss for the 
    period                      -      (1,322,933)             -             -               -     (1,322,933) 
   Other 
   comprehensive 
   income 
   Foreign 
    currency 
    translation 
    differences                 -                -             -             -       5,634,214       5,634,214 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
   Total 
    comprehensive 
    profit/(loss) 
    for 
    the period                  -      (1,322,933)             -             -       5,634,214       4,311,281 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
 
   Transactions 
   with owners, 
   recorded 
   directly in 
   equity 
   Issue of share                                                            - 
   capital                      -                -             -                             -               - 
   Equity 
    compensation 
    benefit                     -                -        52,186             -               -          52,186 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
   Balance at 31 
    December 2013      45,698,632     (10,200,100)     2,550,721             -       6,505,921      44,555,174 
                   ==============  ===============  ============  ============  ==============  ============== 
 
   Balance at 1 
    July 2014         226,295,680     (12,608,741)     2,498,535             -       4,881,440     221,066,914 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
   Loss for the 
    period                      -      (3,719,177)             -             -               -     (3,719,177) 
   Other 
   comprehensive 
   income 
   Foreign 
    currency 
    translation 
    differences                 -                -             -             -      10,975,389      10,975,389 
   Movement in 
    cash flow 
    hedge reserve               -                -             -     (425,817)               -       (425,817) 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
   Total 
    comprehensive 
    profit/(loss) 
    for 
    the period                  -      (3,719,177)             -     (425,817)      10,975,389       6,830,395 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
 
   Transactions 
   with owners, 
   recorded 
   directly in 
   equity 
   Issue of share                                                            - 
   capital                      -                -             -                             -               - 
   Share issue 
    costs                (25,413)                -             -             -               -        (25,413) 
   Equity 
    compensation 
    benefit                     -                -        36,302             -               -          36,302 
   Expiry of 
    options                     -          921,600     (921,600)             -               -               - 
                   --------------  ---------------  ------------  ------------  --------------  -------------- 
 
   Balance at 31 
    December 2014     226,270,267     (15,406,318)     1,613,237     (425,817)      15,856,829     227,908,198 
                   ==============  ===============  ============  ============  ==============  ============== 
 

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2014

 
                                                          31 December      31 December 
                                                              2014             2013 
                                                               $                $ 
   CASH FLOWS FROM OPERATING ACTIVITIES 
   Payments to suppliers and employees                     (5,241,899)      (2,593,480) 
   Other income                                                583,418          638,550 
   Interest received                                           301,769           23,272 
 
   Net cash used in operating activities                   (4,356,712)      (1,931,658) 
                                                      ----------------  --------------- 
 
   CASH FLOWS FROM INVESTING ACTIVITIES 
   Payments for mine development assets                   (98,975,903)     (37,619,520) 
   Payments made in respect on bonds and collateral 
    deposits                                              (13,379,534)                - 
   Payments for property, plant and equipment                 (55,431)                - 
 
   Net cash used in investing activities                 (112,410,868)     (37,619,520) 
                                                      ----------------  --------------- 
 
   CASH FLOWS FROM FINANCING ACTIVITIES 
   Proceeds from borrowings                                 52,398,500       32,607,000 
   Payment of borrowing costs                              (2,283,151)      (3,712,901) 
 
   Net cash from financing activities                       50,115,349       28,894,099 
                                                      ----------------  --------------- 
 
   Net increase/(decrease) in cash and cash 
    equivalents                                           (66,652,231)     (10,657,079) 
   Effects of exchange rate changes on the 
    balance of cash 
    held in foreign currencies                               4,529,359          897,981 
   Cash and cash equivalents at the beginning 
    of the period                                          102,819,455       18,668,143 
                                                      ----------------  --------------- 
 
   Cash and cash equivalents at the end of 
    the period                                              40,696,583        8,909,045 
                                                      ================  =============== 
 

The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2014

NOTE 1: STATEMENT OF COMPLIANCE

Wolf is a public company, limited by shares, domiciled and incorporated in Australia and listed on the Australian Securities Exchange and Alternative Investment Market. The interim financial report of the company for the six months ended 31 December 2014, comprise the Company and its subsidiaries ("Consolidated Entity" or "Group").

The interim financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.

The interim financial report does not include full disclosures of the type normally included in an annual financial report. Accordingly, it is recommended that this interim financial report be read in conjunction with the annual financial report for the year ended 30 June 2014 and any public announcements made by Wolf Minerals Limited and its controlled entities during the interim reporting period in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

These condensed consolidated financial statements were approved by the Board of Directors on

26 February 2015.

NOTE 2: BASIS OF PREPARATION

The condensed consolidated financial statements have been prepared on an accruals basis and are based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. The presentation and functional currency is in Australian Dollars.

The accounting policies and methods of computation adopted in the preparation of the condensed consolidated financial statements are consistent with those adopted and disclosed in the Company's 2014 annual financial report for the financial year ended 30 June 2014, except for the impact of the Standards and Interpretations described below. Those accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Going concern basis