2009 Annual Report

 

TIDMDWY 
 
RNS Number : 8267Y 
Dwyka Resources Limited 
10 September 2009 
 
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Dwyka Resources Limited ('Dwyka' or the 'Company') 
 
 
Final Results and Annual Report 
 
 
Dwyka announces its final results and the publication of its annual report for 
the year ended 30 June 2009. 
 
 
The review of operations and results set out below are extracted from the full 
annual report which is available from the Company's website: 
www.dwyresources.com. Copies of the annual report are expected to be distributed 
to shareholders in October 2009. 
 
Enquiries: 
 
 
In Australia 
Mike Langoulant 
Dwyka Resources Limited 
([phone] 
 
 
In United Kingdom 
Richard Greenfield 
Ambrian Partners Limited 
(+44) (0)20 7634 4700 
 
 
Press enquiries 
Charlie Geller or Leesa Peters 
Conduit PR 
[phone]/ [phone] 
 
 
Or visit: http://www.dwyresources.com 
 
 
 
DWYKA RESOURCES LIMITED 
ANNUAL REPORT 
30 JUNE 2009 
 
OPERATIONS AND FINANCIAL REVIEW 
 
Summary 
During the 2009 financial year Dwyka maintained exploration momentum whilst 
ensuring that exploration budgets were tailored to meet market conditions and 
preserve available cash. The Company also actively sought new opportunities for 
acquisition and undertook both technical and financial reviews on over 40 gold 
and base metal projects in its search for undervalued assets for acquisition. 
 
 
The Company is delighted to have secured from BHP Billiton ("BHPB") 100% 
ownership of its Muremera Nickel Project based in Burundi. Exploration work 
undertaken continues to generate promising results. Dwyka recently completed a 
drilling programme targeting anomalies generated by BHPB which has provided 
sufficient information to move ahead with the second phase of exploration. 
 
 
Most recently Dwyka secured a majority stake and management control of three 
gold projects and one platinum project in Ethiopia which were previously owned 
and operated by Minerva Resources Plc ("Minerva"). Sufficient work has been 
completed at the Tulu Kapi-Ankore gold project to allow Dwyka to commence a JORC 
compliant resource estimate. The remaining exploration licences have been 
subject to sufficient exploration to generate a host of promising targets 
warranting detailed follow up and drilling. 
 
 
Muremera Nickel Project - 100% 
The Muremera Nickel Project is located a short distance away along strike from 
Xstrata's Kabanga Nickel Project, the single largest undeveloped nickel sulphide 
deposit in the world. Until this year Dwyka had been working alongside BHPB to 
define the mineralogy of the project. Exploration to date includes in excess of 
US$7.3million spent by BHPB for both regional and detailed downhole geophysical 
surveys and diamond drilling over a number of targets. This exploration work has 
provided clear evidence of sulphide mineralisation suggesting there are many 
geological similarities between the Muremera and Kabanga projects. 
 
 
During the early part of the year, the Company drilled the first six holes of a 
programme targeting 24 drill targets. Two massive sulphide intersections 
identified during the programme returned an average composite nickel equivalent 
grade of approximately 1 per cent Ni. 
 
 
Because of the nature of mineralisation, reliance has been placed on VTEM 
geophysical surveys. An independent consultant was engaged to reconcile the VTEM 
anomalies with the drilling results to date. Based on the review, the 
independent consultant has stated that "the technical case for continued 
exploration at Muremera is clear-cut. The licence area is adjacent to, and 
covers the same structure and stratigraphy as the Kabanga deposits of Tanzania. 
Even small discoveries at Muremera would be able to ride on the back of 
infrastructure developments at Kabanga and at Musongati." 
 
 
In March 2009 the Company was able to secure 100% ownership of this project from 
BHBP at no cost to the Company. Subsequently Dwyka approached the Council of 
Ministers in Burundi to amend the previously agreed exploration programme and 
budget to reflect the worldwide financial situation. The previous BHPB budget 
and work programme required an expenditure of approximately US$14m over a two 
year period. As part of the exploration licence renewal process Dwyka has 
recently renegotiated the exploration expenditure commitment to a more 
reasonable US$2.14 million over the next two years. Whilst the reduction in 
budget is substantial, it leaves ample scope for completion of a meaningful 
exploration programme. As a result of revising the budget, Dwyka has the 
flexibility either to fund the prescribed work programme over the next 24 months 
from its existing cash reserves or to consider the involvement of an appropriate 
major mining house partner to assist in the long-term development of the 
project. 
 
 
The recommended exploration programme for the next 24 months takes into account 
the current state of world markets and the fact that a substantial amount of 
data has been accumulated already during the past two years. 
 
SwaziGold - 45% 
The SwaziGold project in Swaziland is managed by Swazi Gold Ventures (Pty) Ltd 
("SGV"), a company which holds a 90% shareholding in the ultimate project 
company which holds the relevant exploration licence. Dwyka, via its 
wholly-owned subsidiary Karrinyup Holdings Limited, owns 50% of SGV, the 
remaining 50% being held by the original project vendors. 
 
 
Historical exploration has identified a total of five primary prospective 
targets. The Dwyka Board has requested that that the primary targets be reviewed 
prior to any further detailed exploration drilling. The objective of this review 
is to assess the potential upper level of gold resource that may be delineated 
in order to decide on the appropriate basis for further exploration. 
 
 
Ethiopian Gold Projects -Post balance date takeover of Minerva Resources Plc 
As at the date of this report Dwyka owns 91.01% of Minerva Resources Plc and has 
commenced proceedings to compulsorily acquire the balance to move to 100% 
ownership. Minerva Resources owns Ethiopian gold and platinum projects. 
 
 
The Ethiopian gold projects potentially represent a new gold province with 
numerous untapped opportunities. 
 
 
Over the coming 12 months the Company will concentrate on developing the Tulu 
Kapi prospect and the other identified primary targets. The Company is well 
placed to consider any possible strategically appropriate partnerships that may 
be forthcoming in the region. 
 
 
Tulu Kapi - Ankore exploration licence 
The Licence is located in western Ethiopia, in Oromia Regional state, 510km from 
Addis Ababa. The licence covers an area of approximately 11.5km2. 
 
 
Significant exploration has already been undertaken on the Tulu Kapi-Ankore 
licence, including a 34 diamond drill hole programme. Dwyka has reviewed the 
geology in the immediate vicinity of the main Tulu Kapi project and has 
identified a number of clear targets for further exploration to extend the 
current known mineralisation. Drill intercept grades at Tulu Kapi have been 
encouraging and the assays and subsequent geological interpretation indicate 
both continuous and pod-like zones of gold mineralisation associated with quartz 
veins and minor sulphides hosted by albite alteration in shallow dipping 
structures. Significant gold intersections include the following: 
 
 
 
 
 
+---------+------+-------+-------+----------+--------+---------+------+----+--+----+--+-----+--+----+---+--+ 
|  Hole   |Hole  | From  |  To   |  Length  |  Au    | Hole    | Hole | From  | To    | Length | Au     | 
| Number  | dip  |  (m)  |  (m)  |   (m)    | (g/t)  | Number  | dip  | (m)   | (m)   | (m)    | (g/t)  | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 01  | -60  | 10.8  | 19.8  |    9     |  2.3   | TKBH 16 | -50  | 103.5 | 104.5 | 1      | 3.1    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 02  | -60  | 13.4  | 13.8  |   0.4    |  14.2  | TKBH 17 | -50  | 4     | 6.2   | 2.2    | 3.9    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |137.8  |143.5  |   5.7    |  2.9   |         |      | 137   | 140   | 3      | 4.9    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |152.4  |153.4  |    1     |  9.6   | TKBH 18 | -50  | 39    | 45    | 6      | 3.9    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 03  | -60  | 66.8  | 67.6  |   0.8    |  3.6   | TKBH 19 | -50  | 89.6  | 90.9  | 1.3    | 9.8    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      | 71.8  | 72.3  |   0.5    |  3.1   | TKBH 20 | -50  | 52    | 55    | 3      | 2.6    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      | 82.8  | 83.1  |   0.3    |  3.8   |         |      | 58.3  | 65    | 6.7    | 3.3    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 04  | -50  | 46.9  | 83.8  |  36.9    |  4.7   |         |      | 94.1  | 101.9 | 7.7    | 1.8    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |134.7  |135.7  |    1     |  14.2  |         |      | 201   | 205   | 4      | 11.1   | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 05  | -50  | 36.7  | 41.9  |   5.2    |  2.7   |         |      | 245   | 247   | 2      | 5      | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      | 71.8  | 75.7  |   3.9    |  2.9   | TKBH 21 | -50  | 16    | 31.3  | 15.3   | 7.3    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 06  | -50  |150.1  |154.6  |   4.5    |  7.1   | TKBH 22 | -50  | 2     | 6     | 4      | 1.6    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 07  | -50  | 59.2  | 62.3  |   3.1    |  4.2   | TKBH 25 | -50  | 105   | 108   | 3      | 4.4    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |112.2  |117.1  |    5     |  2.9   |         |      | 110   | 119   | 9      | 2.1    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |  157  |157.6  |   0.6    |  13.8  |         |      | 188.4 | 191.3 | 2.9    | 15.23  | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 08  | -50  | 64.9  | 80.6  |  15.7    |  2.5   | TKBH 26 | -50  | 4.9   | 11.3  | 6.4    | 1.5    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      | 87.8  | 98.8  |    11    |  1.9   |         |      | 57.7  | 62.9  | 5.2    | 1.5    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |107.8  |  110  |   2.2    |  10.5  |         |      | 105.6 | 108   | 2.4    | 4.5    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|         |      |221.5  |  227  |   5.5    |  4.9   |         |      | 161   | 167.6 | 6.6    | 4.9    | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 09  | -70  |118.5  |119.9  |   1.4    |  6.2   |         |      | 172   | 173   | 1      | 14.4   | 
+---------+------+-------+-------+----------+--------+---------+------+-------+-------+--------+--------+ 
|TKBH 10  | -51  |  31   | 48.7  |  17.7    |  5.2   |         |           | 194.7 | 197.4  | 2.7   | 4.3  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|         |      | 63.8  | 75.2  |  11.4    |  1.9   |         |           | 212   | 222.1  | 10.1  | 4.1  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|         |      |  202  |203.8  |   1.8    |  12.2  |         |           | 226   | 231.7  | 5.7   | 10   | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|TKBH 11  | -50  |  16   |  32   |    16    |  1.6   | TKBH 29 | -50       | 9.7   | 14     | 4.3   | 20   | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|         |      |  55   | 56.1  |   1.1    |  17.5  |         |           | 32.1  | 35.5   | 3.4   | 3.7  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|TKBH 12  | -50  |  0.5  |  19   |  18.5    |  4.4   |         |           | 51.4  | 55.9   | 4.5   | 3.1  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|         |      | 56.6  | 68.4  |  11.8    |  4.6   | TKBH 31 | -50       | 8     | 19.9   | 11.9  | 1.3  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|TKBH 13  | -50  | 53.6  | 57.7  |   4.1    |  2.2   |         |           | 179   | 182.2  | 3.2   | 6.9  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|TKBH 14  | -47  |  59   |  63   |    4     |  10.2  | TKBH 33 | -50       | 52.3  | 55.4   | 3.2   | 2.9  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|         |      | 94.8  | 98.2  |   3.4    |  3.5   |         |           | 192.7 | 196.1  | 3.4   | 3.9  | 
+---------+------+-------+-------+----------+--------+---------+-----------+-------+--------+-------+------+ 
|         |      |161.9  |164.6  |   2.7    |  7.4   |         |           | 207   | 209.6  | 2.6   | 21.2 | 
+---------+------+-------+-------+----------+--------+---------+------+----+--+----+--+-----+--+----+---+--+ 
Table 1 - Tulu Kapi - Significant Down Hole Intersections 
 
 
Dwyka has engaged the services of Hellman & Schofield, an independent 
consultant, to complete a resource estimation from the drilling programme 
completed to date and to establish an initial JORC-compliant Inferred Resource. 
Dwyka has also enlisted Venmyn Rand, a South African-based consultancy with a 
wealth of gold mining and exploration experience, to produce a technical review 
of the Tulu Kapi prospect and surrounding area to complement the Company's 
proposed exploration strategy. 
 
 
Dwyka is also presently implementing appropriate management and financial 
controls over the various Ethiopian subsidiaries and expanding the exploration 
capacity of the operation by engaging additional local exploration staff. 
 
 
  Yubdo exploration licence 
The five priority targets for the Yubdo exploration licence, which covers an 
area of 301.83 sq km near Tulu Kapi-Ankore are Guji, Gudeya Guji, Dina, Chago 
and South Chago. 
 
 
Guji Prospect 
A drill programme at the Guji prospect has identified encouraging gold assays; 
borehole GBH04 with 2.95g/t Au over 10.6m from surface to 10.6m and 2.96g/t Au 
over 4.32m from 26.83m to 31.15m. Further work in April 2009 work including 
trenching and IP surveys indicated the potential for this gold mineralised zone 
to extend up to 1km along strike. Guji will be treated as a priority target by 
Dwyka during the current exploration season particularly as this prospect is 
located only 3km from Tulu Kapi. Subject to follow up drilling it is anticipated 
that Guji has the potential to act as a satellite deposit to the main Tulu Kapi 
project. 
 
 
Gudeya Guji Prospect 
Gudeya Guji is located North of the Guji prospect. Scout drilling was undertaken 
in early 2008 which failed to intersect any economic grades but did provide an 
insight into the geology of the target. During 2009, further trenching confirmed 
gold mineralisation with peak intersections achieved of 2.8g/t Au over 6.0m. The 
samples collected from this new trench programme have recently been submitted 
for geochemical analysis by Dwyka. If encouraging assay results are returned, 
then Dwyka will determine if a drill programme is warranted to drill test the 
strike and depth extents of the mineralisation. 
 
 
Dina Prospect 
The Dina prospect is located in the northern part of the Yubdo exploration 
licence. Work to date provides an insight into the prospect's mineralisation 
though considerable work is required to bring this project to an advanced stage. 
Dwyka's focus during the next exploration season will be to further test the 
down dip and strike extensions of the mineralised ore bodies. Promising results 
were obtained from borehole DBH02 which returned intersections of 30.26g/t Au 
over 7.10m from 69.6 to 76.70m and 2.40g/t Au over 3.77m from 136.23 to 140m. 
 
 
Chago Prospect 
The Chago prospect is located in the northern part of the Yubdo licence 
approximately 3 km along strike from the Dina prospect. Samples from work 
undertaken to excavate and sample a series of trenches have recently been 
submitted for analysis by Dwyka and any future exploration programme will be 
determined by the results of this assay data. 
 
 
South Chago Prospect 
Reconnaissance work to date has returned low gold in soil results. The next 
phase of exploration will depend on the outcome of the pending assays as well as 
an on-going review of prospectivity of the target area. 
 
 
Bila Gulliso exploration licence 
The Bila Gulliso exploration licence covers an area of 274 sq km, and is 
situated immediately north of the Yubdo exploration licence. It has the 
potential to add further resources to Dwyka should the Yubdo prospect 
mineralisation extend further north. A minimal amount of exploration has been 
undertaken to date and Dwyka plans to commence a regional programme to identify 
and focus on potential targets. 
 
 
Ethiopian platinum mining licence 
As a result of its acquisition of Minerva, Dwyka has also acquired a 51% 
shareholding in Yubdo Platinum and Gold Development Plc ("YPGD"), an Ethiopian 
company operating a small-scale platinum mining project located at Yubdo in 
Western Ethiopia. The remaining shareholding in YPGD is split between an 
Ethiopian businessman, Ato Benti Tasissa Negewo (47%) and geologist Dr Kebede 
Hailu Belete (2%). 
 
 
At present a small-scale pilot plant is operating on site, processing platinum 
group metals. Recoveries are low, reflecting the complex metallurgy of the 
mineralisation. Further test-work on the large but metallurgically challenging 
resource will be undertaken. 
 
 
Under the guidance of Dwyka, a reassessment of operations was conducted in time 
for YPGD to submit a new work programme proposal to the Ethiopian authorities in 
conjunction with an application for licence renewal. The Ministry of Mines has 
proposed the establishment of two separate licences, a mining licence covering a 
small area close to the pilot plant and a larger exploration licence. 
 
 
In Dwyka's opinion, there are three possible sources of platinum within the 
licence area, namely laterite bearing platinum, alluvial platinum and platinum 
group metals that may exist in hard rock beneath the estimated 20 to 40m thick 
lateritic cover. The on-going exploration programme proposed by Dwyka will 
investigate all three opportunities with a particular emphasis on hard rock 
potential. 
 
 
Philippine Coal Project - 8% 
 
 
In July 2008 the Company exercised an option to acquire all the issued capital 
of Asian Coal Resources Limited ("ACRL"). In turn, ACRL and its local Philippine 
partner, MANA Resources Development Corporation ("MRDC"), concurrently exercised 
their options permitting those companies to acquire an initial collective 
interest of 30% by 18 January 2009 in each of Daguma Agro-Minerals, Inc. 
("DAMI") and Bonanza Energy Resources, Inc ("BERI"). DAMI and BERI are the 
holders of the Daguma and Bonanza coal deposits which constitute the Daguma Coal 
Project ("Coal Project"). 
 
 
Dwyka held the view that the Coal Project had the potential to be brought into 
production in the near term and it commenced an aggressive JORC compliant drill 
program that aimed to confirm a existence of between 125 million to 150 million 
tonnes of coal with a calorific value of between 5,300 and 5,500 kilocalories 
per kilogram. This program was intended to provide sufficient data to enable 
JORC compliant resource evaluations. 
 
 
In October 2008 despite encouraging initial drill results the Company, in 
response to the Global Financial Crisis, formed the view that it would be unable 
to raise the necessary equity to fund the additional short-term vendor cash 
payments plus the necessary exploration costs required to achieve the 
exploration objectives as well as moving to a 30% interest in the Coal Project. 
Accordingly Dwyka then withdrew from further funding of the Coal Project and 
retains an 8% interest in the Coal Project. As a result of withdrawing from 
further funding of the Coal Project the Company has in this financial year 
booked an impairment charge of $11.4 million against this asset. 
 
 
The current operators of the Coal Project are seeking new partners to advance 
this project through to production. 
 
 
Carlton Resources Plc (formerly KimCor Diamonds Plc) (28.68%) 
 
 
During the 2008 financial year the Company reclassified its shareholding in 
Carlton as a non-current held for sale asset as it expected the investment to be 
recovered principally through a sale transaction rather than through the long 
term receipt of dividend income. As at 30 June 2009 the Company held 28.68% 
(2008: 48.2%) of Carlton and had impaired the value of this asset to reflect the 
fair value, less estimated disposal costs, of the shareholding in Carlton. The 
impairment charge booked against this asset in this financial year was $10.7 
million. 
 
 
Corporate 
 
 
Since year end and as mentioned above, the Company has successfully launched a 1 
for 5 scrip takeover bid for Minerva Resources Plc. At the date of this report 
the Company has secured management control and owns 91.01% of Minerva and has 
commenced the process to compulsorily acquire the remaining outstanding shares 
to move to 100% ownership of Minerva. 
 
 
The Company's cash balance of GBP6.5 million (AUD13.0) leaves it well placed to 
advance its existing project portfolio. 
 
 
The technical exploration and mining information contained in this Report has 
been reviewed and approved by Mr RN Chapman. Mr Chapman has sufficient 
experience which is relevant to the style of mineralisation and type of deposit 
under consideration and to the activity to which he is undertaking to qualify as 
a Competent Person as defined in the 2004 Edition of the 'Australasian Code for 
Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a 
qualified person under the AIM Guidance Note for Mining, Oil and Gas Companies. 
Mr Chapman is an employee of Mineral Exploration Management Limited, an 
independent geological consultancy established in 2005 and is a member of the 
Australasian Institute of Mining and metallurgy (Aus.I.M.M). 
 
 
Mr Chapman consents to the inclusion in this Report of such information in the 
form and context in which it appears. 
 
 
 
 
INCOME STATEMENTS 
FOR THE YEAR ENDED 30 JUNE 2009 
 
 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |Notes  |    Consolidated      |    Parent entity    | 
+-----------------------------+-------+----------------------+---------------------+ 
|                             |       |      2009 |     2008 |     2009 |     2008 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |      $000 |     $000 |     $000 |     $000 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Revenue from       |       |           |          |          |          | 
|          continuing         |       |           |          |          |          | 
|          operations         |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Other revenue      |  5    |       423 |      139 |      417 |      107 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |       423 |      139 |      417 |      107 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Profit on sale of  |       |         - |        - |        - |      541 | 
|          controlled         |       |           |          |          |          | 
|          entities           |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Loss on sale of    |       |         - |      (5) |        - |      (5) | 
|          investments        |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Loss on sale of    |       |         - |     (63) |        - |     (84) | 
|          associate          |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Share of loss of associate  |       |         - |    (822) |        - |        - | 
| using equity method         |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Other expenses from         |       |           |          |          |          | 
| continuing operations       |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|              Administration |  6    |   (2,857) |  (3,635) |  (2,824) |  (3,520) | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Uncompleted        |       |     (561) |        - |    (561) |        - | 
|          business           |       |           |          |          |          | 
|          combination        |       |           |          |          |          | 
|          transaction        |       |           |          |          |          | 
|          expenses           |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|              Impairment of  |  6    |  (21,992) |  (7,181) | (22,158) |  (8,122) | 
|          assets             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Loss before income tax      |       |  (24,987) | (11,567) | (25,126) | (11,083) | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Income tax expense          |  7    |         - |        - |        - |        - | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Loss from continuing        |       |  (24,987) | (11,567) | (25,126) | (11,083) | 
| operations                  |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Profit from discontinued    |  29   |         - |   12,655 |        - |        - | 
| operations                  |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          (Loss)/profit for  |       |  (24,987) |    1,088 | (25,126) | (11,083) | 
|          the year           |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Net loss attributable to    |  22   |  (24,987) |    1,088 | (25,126) | (11,083) | 
| members of Dwyka Resources  |       |           |          |          |          | 
| Limited                     |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |     Cents |    Cents |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Basic earnings/(loss) per   |  32   |      13.9 |      0.1 |          |          | 
| share                       |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Diluted earnings/(loss) per |  32   |      13.9 |      0.1 |          |          | 
| share                       |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
 
The above income statements should be read in conjunction with the accompanying 
notes. 
 
 
 
BALANCE SHEETS 
AS AT 30 JUNE 2009 
 
 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |Notes  |    Consolidated      |    Parent entity    | 
+-----------------------------+-------+----------------------+---------------------+ 
|                             |       |      2009 |     2008 |     2009 |     2008 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |      $000 |     $000 |     $000 |     $000 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| ASSETS                      |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Current assets              |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Cash and cash equivalents   |  8    |    13,020 |      472 |   12,833 |      442 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Trade and other receivables |  9    |       484 |   20,876 |      410 |   20,809 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Non-current asset           |  10   |       678 |   11,417 |      678 |   11,417 | 
| classified as held for sale |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total current assets        |       |    14,182 |   32,765 |   13,921 |   32,668 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Non-current assets          |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Receivables                 |  12   |       466 |      233 |    2,257 |    1,204 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Other financial assets      |  13   |        77 |       84 |   10,208 |   10,266 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Property, plant and         |  14   |        33 |       66 |       19 |       37 | 
| equipment                   |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Exploration, evaluation and |  15   |    12,689 |   11,285 |        - |        - | 
| mining properties           |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total non-current assets    |       |    13,265 |   11,668 |   12,484 |   11,507 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total assets                |       |    27,447 |   44,433 |   26,405 |   44,175 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| LIABILITIES                 |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Current liabilities         |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Trade and other payables    |  17   |       937 |      815 |      279 |      747 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total current liabilities   |       |       937 |      815 |      279 |      747 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Non-current liabilities     |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Borrowings                  |  18   |       384 |      321 |        - |        - | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total non-current           |       |       384 |      321 |        - |        - | 
| liabilities                 |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total liabilities           |       |     1,321 |    1,136 |      279 |      747 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Net assets                  |       |    26,126 |   43,297 |   26,126 |   43,428 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| EQUITY                      |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Contributed equity |  20   |   104,835 |   97,116 |  104,835 |   97,116 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Reserves           |  21   |     2,219 |    2,122 |    2,129 |    2,024 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|          Accumulated losses |  22   |  (80,928) | (55,941) | (80,838) | (55,712) | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Parent entity interest      |       |    26,126 |   43,297 |   26,126 |   43,428 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total equity                |       |    26,126 |   43,297 |   26,126 |   43,428 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
 
The above balance sheets should be read in conjunction with the accompanying 
notes. 
 
 
 
STATEMENTS OF CHANGES IN EQUITY 
FOR THE YEAR ENDED 30 JUNE 2009 
 
 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |Notes  |    Consolidated      |    Parent entity    | 
+-----------------------------+-------+----------------------+---------------------+ 
|                             |       |      2009 |     2008 |     2009 |     2008 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |      $000 |     $000 |     $000 |     $000 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total equity at the         |       |    43,297 |    7,195 |   43,428 |   22,693 | 
| beginning of the financial  |       |           |          |          |          | 
| year                        |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Exchange differences on     |  21   |       (8) |    2,621 |        - |        - | 
| translation of foreign      |       |           |          |          |          | 
| operations                  |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Changes in fair value of    |  21   |      (47) |    (145) |     (47) |    (145) | 
| available-for sale          |       |           |          |          |          | 
| financial assets, net of    |       |           |          |          |          | 
| tax                         |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Net (loss)/profit           |       |      (55) |    2,476 |     (47) |    (145) | 
| recognised directly in      |       |           |          |          |          | 
| equity                      |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| (Loss)/profit for the year  |       |  (24,987) |    1,088 | (25,126) | (11,083) | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total recognised income and |       |  (25,042) |    3,564 | (25,173) | (11,228) | 
| expense for the year        |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Transactions with equity    |       |           |          |          |          | 
| holders in their capacity   |       |           |          |          |          | 
| as equity holders           |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|              Contributions  |  20   |     7,719 |   31,536 |    7,719 |   31,536 | 
|          of equity, after   |       |           |          |          |          | 
|          tax and            |       |           |          |          |          | 
|          transaction costs  |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Share based compensation    |  21   |       152 |      427 |      152 |      427 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|              Cost of        |  21   |         - |      575 |        - |        - | 
|          increased equity   |       |           |          |          |          | 
|          in subsidiary      |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |     7,871 |   32,538 |    7,871 |   31,963 | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
|                             |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
| Total equity at end of the  |       |    26,126 |   43,297 |   26,126 |   43,428 | 
| financial year              |       |           |          |          |          | 
+-----------------------------+-------+-----------+----------+----------+----------+ 
The above statements of changes in equity should be read in conjunction with the 
accompanying notes. 
 
 
CASH FLOW STATEMENTS 
FOR THE YEAR ENDED 30 JUNE 2009 
 
 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|                               |Notes  |    Consolidated      |    Parent entity    | 
+-------------------------------+-------+----------------------+---------------------+ 
|                               |       |      2009 |     2008 |     2009 |     2008 | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|                               |       |      $000 |     $000 |     $000 |     $000 | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|          Cash flow from       |       |           |          |          |          | 
|          operating activities |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Receipts from customers       |       |       160 |    2,382 |      160 |        1 | 
| (inclusive of goods and       |       |           |          |          |          | 
| services tax)                 |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Payments to suppliers and     |       |   (2,815) |  (6,264) |  (2,721) |  (2,907) | 
| employees (inclusive of goods |       |           |          |          |          | 
| and services tax)             |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Interest received             |       |       383 |      107 |      377 |      107 | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Finance costs                 |       |         - |    (193) |        - |    (193) | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Net cash flow used in         |  31   |   (2,272) |  (3,968) |  (2,184) |  (2,991) | 
| operating activities          |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|                               |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Cash flow from investing      |       |           |          |          |          | 
| activities                    |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Uncompleted business          |       |     (561) |        - |    (561) |        - | 
| combination transaction       |       |           |          |          |          | 
| expenses                      |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Payments for exploration,     |       |   (4,513) |  (1,003) |        - |        - | 
| evaluation and development of |       |           |          |          |          | 
| mining properties             |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Proceeds from sale of         |       |         - |      673 |        - |      673 | 
| associate                     |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Proceeds from sale of plant   |       |         1 |        - |        - |        - | 
| and equipment                 |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Payments for plant and        |       |       (2) |     (13) |      (2) |     (13) | 
| equipment                     |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Loans to controlled entities  |       |         - |        - |  (4,764) |  (1,723) | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Loans to other parties        |       |     (466) |    (233) |    (466) |    (233) | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Payment for acquisition of    |       |         - |    (207) |        - |    (207) | 
| controlled entity, net of     |       |           |          |          |          | 
| cash acquired                 |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Cash disposed of on sale of   |  29   |         - |    (229) |        - |        - | 
| discontinued operations       |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Net cash flow used in         |       |   (5,541) |  (1,012) |  (5,793) |  (1,503) | 
| investing activities          |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|                               |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Cash flow from financing      |       |           |          |          |          | 
| activities                    |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Proceeds from issue of shares |       |    20,890 |    1,446 |   20,890 |    1,446 | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Payments for equity issue     |       |     (252) |        - |    (252) |        - | 
| costs                         |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Net cash flow from financing  |       |    20,638 |    1,446 |   20,638 |    1,446 | 
| activities                    |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|                               |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|          Net                  |       |    12,825 |  (3,535) |   12,661 |  (3,048) | 
|          increase/(decrease)  |       |           |          |          |          | 
|          in cash held         |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|          Cash at the          |       |       472 |    4,265 |      442 |    3,828 | 
|          beginning of the     |       |           |          |          |          | 
|          financial year       |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Effects of exchange rate      |       |     (277) |    (258) |    (270) |    (338) | 
| changes on cash and cash      |       |           |          |          |          | 
| equivalents                   |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
| Cash and cash equivalents     |  8    |    13,020 |      472 |   12,833 |      442 | 
| held at the end of the        |       |           |          |          |          | 
| financial year                |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|                               |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
|          Non-cash financing   |  31   |           |          |          |          | 
|          and investing        |       |           |          |          |          | 
|          activities           |       |           |          |          |          | 
+-------------------------------+-------+-----------+----------+----------+----------+ 
 
 
The above cash flow statements should be read in conjunction with the 
accompanying notes. 
 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS 
30 JUNE 2009 
 
1    Summary of significant accounting policies 
 
 
The principal accounting policies adopted in the preparation of the financial 
report are set out below. These policies have been consistently applied to all 
the years presented, unless otherwise stated. The financial report includes 
separate financial statements for Dwyka Resources Limited as an individual 
entity and the consolidated entity consisting of Dwyka Resources Limited and its 
subsidiaries. 
 
 
(a)     Basis of preparation of financial report 
 
 
This general purpose financial report has been prepared in accordance with 
Australian Accounting Standards, other authoritative pronouncements of the 
Australian Accounting Standards Board, Urgent Issues Group Interpretations and 
the Corporations Act 2001. 
 
 
Compliance with IFRS 
Australian Accounting Standards include Australian equivalents to International 
Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that 
the consolidated financial report of Dwyka Resources Limited complies with 
International Financial Reporting Standards (IFRS) as issued by the 
International Accounting Standards Board (IASB). 
 
 
Historical cost convention 
These financial statements have been prepared under the historical cost 
convention, as modified by the revaluation of available-for-sale financial 
assets. 
 
 
Critical accounting estimates 
The preparation of financial statements in conformity with AIFRS requires the 
use of certain critical accounting estimates. It also requires management to 
exercise its judgment in the process of applying the Group's accounting 
policies. The areas involving a higher degree of judgment or complexity, or 
areas where assumptions and estimates are significant to the financial 
statements are disclosed in note 3. 
 
 
(b) Principles of consolidation 
 
 
Subsidiaries 
The consolidated financial statements incorporate the assets and liabilities of 
all subsidiaries of Dwyka Resources Limited ("Company" or "parent entity") 
as at 30 June 2009 and the results of all subsidiaries for the year then ended. 
Dwyka Resources Limited and its subsidiaries together are referred to in this 
financial report as the Group or the consolidated entity. 
 
 
Subsidiaries are all those entities (including special purpose entities) over 
which the Group has the power to govern the financial and operating policies, 
generally accompanying a shareholding of more than one?half of the voting 
rights. The existence and effect of potential voting rights that are currently 
exercisable or convertible are considered when assessing whether the Group 
controls another entity. 
 
 
Subsidiaries are fully consolidated from the date on which control is 
transferred to the Group. They are de?consolidated from the date that control 
ceases. 
 
 
The purchase method of accounting is used to account for the acquisition of 
subsidiaries by the Group. 
 
 
Intercompany transactions, balances and unrealised gains on transactions between 
Group companies are eliminated. Unrealised losses are also eliminated unless the 
transaction provides evidence of the impairment of the asset transferred. 
Accounting policies of subsidiaries have been changed where necessary to ensure 
consistency with the policies adopted by the Group 
 
 
Minority interests in the results and equity of subsidiaries are shown 
separately in the consolidated income statement and balance sheet respectively. 
 
 
Investments in subsidiaries are accounted for at cost in the individual 
financial statements of the Company. 
 
 
(b) Principles of consolidation 
 
 
(ii)    Associates 
Associates are all entities over which the Group has significant influence but 
not control, generally accompanying a shareholding of between 20% and 50% of the 
voting rights. Investments in associates are accounted for in the parent entity 
financial statements using the cost method and in the consolidated financial 
statements using the equity method of accounting, after initially being 
recognised at cost. 
 
 
The Group's share of its associates' post?acquisition profits or losses is 
recognised in the income statement, and its share of post?acquisition movements 
in reserves is recognised in reserves. The cumulative post?acquisition movements 
are adjusted against the carrying amount of the investment. Dividends receivable 
from associates are recognised in the parent entity's income statement, while in 
the consolidated financial statements they reduce the carrying amount of the 
investment. 
 
 
When the Group's share of losses in an associate equals or exceeds its interest 
in the associate, including any other unsecured receivables, the Group does not 
recognise further losses, unless it has incurred obligations or made payments on 
behalf of the associate. 
 
 
Unrealised gains on transactions between the Group and its associates are 
eliminated to the extent of the Group's interest in the associates. Unrealised 
losses are also eliminated unless the transaction provides evidence of an 
impairment of the asset transferred. 
 
 
Where the investment will be recovered principally through a sale transaction 
rather than through continuing use it will be accounted for as a non-current 
asset held for sale and measured at fair value at reporting dates. Any 
impairment of the investment will be recognised in the income statement (refer 
to note 1n). 
(c)     Segment reporting 
 
 
A business segment is a group of assets and operations engaged in providing 
products or services that are subject to risks and returns that are different to 
those of other business segments. A geographical segment is engaged in providing 
products or services within a particular economic environment that is subject to 
risks and returns that are different from those of segments operating in other 
economic environments. 
 
 
               (d) Foreign currency translation 
 
 
(i)Functional and presentation currency 
Items included in the financial statements of each of the Group's entities are 
measured using the currency of the primary economic environment in which the 
entity operates ('the functional currency'). The consolidated financial 
statements are presented in Australian dollars, which is Dwyka Resources 
Limited's functional and presentation currency. 
 
 
(ii)Transactions and balances 
Foreign currency transactions are translated into the functional currency using 
the exchange rates prevailing at the dates of the transactions. Foreign exchange 
gains and losses resulting from the settlement of such transactions and from the 
translation at year?end exchange rates of monetary assets and liabilities 
denominated in foreign currencies are recognised in the income statement. 
 
 
(iii)Group companies 
The results and financial position of all the Group entities (none of which has 
the currency of a hyperinflationary economy) that have a functional currency 
different from the presentation currency are translated into the presentation 
currency as follows: 
 
 
  *  assets and liabilities for each balance sheet presented are translated at the 
  closing rate at the date of that balance sheet; 
  *  income and expenses for each income statement are translated at average exchange 
  rates (unless this is not a reasonable approximation of the cumulative effect of 
  the rates prevailing on the transaction dates, in which case income and expenses 
  are translated at the dates of the transactions); and 
  *  all resulting exchange differences are recognised as a separate component of 
  equity. 
 
 
 
On consolidation, exchange differences arising from the translation of any net 
investment in foreign entities, and of borrowings and other currency instruments 
designated as hedges of such investments, are taken to shareholders' equity. 
When a foreign operation is sold or any borrowings forming part of the net 
investment are repaid, a proportionate share of such exchange differences are 
recognised in the income statement as part of the gain or loss on sale, where 
applicable. 
 
 
Goodwill and fair value adjustments arising on the acquisition of a foreign 
entity are treated as assets and liabilities of the foreign entity and 
translated at the closing rate. 
 
 
(e) Revenue recognition 
 
 
Revenue is measured at the fair value of the consideration received or 
receivable. Amounts disclosed as revenue are net of returns and trade 
allowances.Revenue is recognised for the major business activities when the 
following specific recognition criteria are met: 
 
 
Sales 
Risks and rewards of the goods have passed to the buyer, which occurs on 
delivery. 
 
 
Interest income 
Interest income is recognised on a time proportionate basis using the effective 
interest rate method. 
 
 
                (f)     Income tax 
 
 
The income tax expense or revenue for the period is the tax payable on the 
current period's taxable income based on the national income tax rate for each 
jurisdiction adjusted by changes in deferred tax assets and liabilities 
attributable to temporary differences between the tax bases of assets and 
liabilities and their carrying amounts in the financial statements and to unused 
tax losses. 
 
 
Deferred income tax is provided in full, using the liability method, on 
temporary differences arising between the tax bases of assets and liabilities 
and their carrying amounts in the consolidated financial statements. However, 
the deferred income tax is not accounted for if it arises from initial 
recognition of an asset or liability in a transaction other than a business 
combination that at the time of the transaction affects neither accounting nor 
taxable profit, or loss. Deferred income tax is determined using tax rates (and 
laws) that have been enacted or substantially enacted by the balance sheet date 
and are expected to apply when the related deferred income tax asset is realised 
or the deferred income tax liability is settled. 
 
 
Deferred tax assets are recognised for deductible temporary differences and 
unused tax losses only if it is probable that future taxable amounts will be 
available to utilise those temporary differences and losses. 
 
 
Deferred tax liabilities and assets are not recognised for temporary differences 
between the carrying amount and tax bases of investments in controlled entities 
where the parent entity is able to control the timing of the reversal of the 
temporary differences and it is probable that the differences will not reverse 
in the foreseeable future. 
 
 
Deferred tax assets and liabilities are offset when there is a legally 
enforceable right to offset current tax assets and liabilities and when the 
deferred tax balances relate to the same taxation authority. Current tax assets 
and tax liabilities are offset where the entity has a legally enforceable right 
to offset and intends either to settle on a net basis, or to realise the asset 
and settle the liability simultaneously. 
 
 
Current and deferred tax balances attributable to amounts recognised directly in 
equity are also recognised directly in equity. 
 
 
The Australian tax consolidation regime does not apply to the company because 
there are no Australian incorporated subsidiaries. 
 
 
                 (g) Business combinations 
 
 
The purchase method of accounting is used to account for all business 
combinations, including business combinations involving entities or businesses 
under common control, regardless of whether equity instruments or other assets 
are acquired. Cost is measured as the fair value of the assets given, 
shares issued or liabilities incurred or assumed at the date of exchange plus 
costs directly attributable to the acquisition. Where equity instruments are 
issued in an acquisition, the fair value of the instruments is their published 
market price as at the date of exchange. Transaction costs arising on the issue 
of equity instruments are expensed. Transaction costs arising on business 
combinations completed after year end but incurred during the current financial 
year are expensed in the current year. 
 
 
Identifiable assets acquired and liabilities and contingent liabilities assumed 
in a business combination are measured initially at their fair values at the 
acquisition date, irrespective of the extent of any minority interest. The 
excess of the cost of acquisition over the fair value of the Group's share of 
the identifiable net assets acquired is recorded as goodwill. If the cost of 
acquisition is less than the Group's share of the fair value of the identifiable 
net assets of the subsidiary acquired, the difference is recognised directly in 
the income statement, but only after a reassessment of the identification and 
measurement of the net assets acquired. 
 
 
Where settlement of any part of cash consideration is deferred, the amounts 
payable in the future are discounted to their present value as at the date of 
exchange. The discount rate used is the entity's incremental borrowing rate, 
being the rate at which a similar borrowing could be obtained from an 
independent financier under comparable terms and conditions. 
 
 
(h) Leases 
 
 
Leases of property, plant and equipment where the Group, as lessee, has 
substantially all the risks and rewards of ownership are classified as finance 
leases. Finance leases are capitalised at the lease's inception at the fair 
value of the leased property or, if lower, the present value of the 
minimum lease payments. The corresponding rental obligations, net of finance 
charges, are included in other short-term and long-term payables. Each lease 
payment is allocated between the liability and finance cost. The finance cost is 
charged to the income statement over the lease period so as to produce 
a constant periodic rate of interest on the remaining balance of the liability 
for each period. The property, plant and equipment acquired under finance leases 
is depreciated over the shorter of the asset's useful life and the lease term. 
 
 
Leases in which a significant portion of the risks and rewards of ownership are 
retained by the lessor are classified as operating leases. Payments made under 
operating leases (net of any incentives received from the lessor) are charged to 
the income statement on a straight-line basis over the period of the lease. 
 
 
                (i)     Impairment of assets 
 
 
Goodwill and intangible assets that have an indefinite useful life are not 
subject to amortisation and are tested annually for impairment or more 
frequently if events or changes in circumstances indicate that they might be 
impaired. Other assets are reviewed for impairment whenever events or changes 
in circumstances indicate that the carrying amount may not be recoverable. An 
impairment loss is recognised for the amount by which the asset's carrying 
amount exceeds its recoverable amount. The recoverable amount is the higher of 
an asset's fair value less costs to sell and value in use. For the purposes of 
assessing impairment, assets are grouped at the lowest levels for which there 
are separately identifiable cash inflows which are largely independent of the 
cash inflows from other assets or groups of assets (cash-generating units). 
Non-financial assets other than goodwill that suffered an impairment 
are reviewed for possible reversal of the impairment at each reporting date. 
 
 
                (j)     Cash and cash equivalents 
 
 
For cash flow statement presentation purposes, cash and cash equivalents 
includes cash on hand, deposits held at call with financial institutions, other 
short-term, highly liquid investments with original maturities of three months 
or less that are readily convertible to known amounts of cash and which are 
subject to an insignificant risk of changes in value, and bank overdrafts. 
 
 
                 (k)     Trade receivables 
 
 
Trade receivables are recognised initially at fair value and subsequently 
measured at amortised cost, less provision for impairment. Trade receivables are 
due for settlement no more than 30 days from the date of recognition. 
 
 
Collectability of trade receivables is reviewed on an ongoing basis. Debts which 
are known to be uncollectible are written off. A provision for impairment of 
trade receivables is established when there is objective evidence that the Group 
will not be able to collect all amounts due according to the original terms of 
receivables. The amount of the provision is the difference between the asset's 
carrying amount and the present value of estimated future cash flows, discounted 
at the effective interest rate. The amount of the provision is recognised in the 
income statement. 
 
 
(l) Investments and other financial assets 
 
 
Classification 
The Group classifies its investments in the following categories: loans and 
receivables and available?for?sale financial assets. The classification depends 
on the purpose for which the investments were acquired. Management determines 
the classification of its investments at initial recognition and re?evaluates 
this designation at each reporting date. 
 
 
 (i)Loans and receivables 
Loans and receivables are non-derivative financial assets with fixed or 
determinable payments that are not quoted in an active market. They arise when 
the Group provides money, goods or services directly to a debtor with no 
intention of selling the receivable. They are included in current assets, except 
for those with maturities greater than 12 months after the balance sheet date 
which are classified as non?current assets. Loans and receivables are included 
in receivables in the balance sheet. 
 
 
 (ii)Available?for?sale financial assets 
Available?for?sale financial assets, comprising principally marketable equity 
securities, are non?derivatives that are either designated in this category or 
not classified in any of the other categories. They are included in non?current 
assets unless management intends to dispose of the investment within 12 months 
of the balance sheet date. 
 
 
Recognition and derecognition 
Purchases and sales of investments are recognised on trade?date ? the date on 
which the Group commits to purchase or sell the asset. Investments are initially 
recognised at fair value plus transaction costs for all financial assets not 
carried at fair value through profit or loss. Financial assets are derecognised 
when the rights to receive cash flows from the financial assets have expired or 
have been transferred and the Group has transferred substantially all the risks 
and rewards of ownership. 
 
 
Subsequent measurement 
Available?for?sale financial assets are subsequently carried at fair value. 
Loans and receivables are carried at amortised cost using the effective interest 
method. Unrealised gains and losses arising from changes in the fair value of 
non monetary securities classified as available?for?sale are recognised in 
equity in the available?for?sale investments revaluation reserve. When 
securities classified as available?for?sale are sold or impaired, the 
accumulated fair value adjustments are included in the income statement as gains 
and losses from investment securities. 
 
 
Fair value 
The fair values of quoted investments are based on current bid prices. If the 
market for a financial asset is not active (and for unlisted securities), the 
Group establishes fair value by using valuation techniques. These include 
reference to the fair values of recent arm's length transactions, involving the 
same instruments or other instruments that are substantially the same, 
discounted cash flow analysis, and option pricing models refined to reflect the 
issuer's specific circumstances. 
 
 
Impairment 
The Group assesses at each balance date whether there is objective evidence that 
a financial asset or group of financial assets is impaired. In the case of 
equity securities classified as available for sale, a significant or prolonged 
decline in the fair value of a security below its cost is considered in 
determining whether the security is impaired. If any such evidence exists for 
available?for?sale financial assets, the cumulative loss ? measured as the 
difference between the acquisition cost and the current fair value, less any 
impairment loss on that financial asset previously recognised in profit and loss 
? is removed from equity and recognised in the income statement. Impairment 
losses recognised in the income statement on equity instruments classified as 
available-for-sale are not reversed through the income statement. 
 
 
(m) Non-current assets (or disposal groups) held for sale and discontinued 
operations 
 
 
Non-current assets (or disposal groups) are classified as held for sale if their 
carrying amount will be recovered principally through a sale transaction rather 
than through continuing use. They are measured at the lower of their carrying 
amount and fair value less costs to sell. Any impairment of the investment will 
be recognised in the income statement. 
Non-current assets classified as held for sale are presented separately from the 
other assets in the balance sheet. 
 
 
A discontinued operation is a component of the entity that has been disposed of 
or is classified as held for sale and that represents a separate major line of 
business or geographical area of operations, is part of a single coordinated 
plan to dispose of such a line of business or area of operations, or is a 
subsidiary acquired exclusively with a view to resale. The results of 
discontinued operations are presented separately on the face of the income 
statement. 
 
 
                (n)     Property, plant and equipment 
 
 
Property, plant and equipment is stated at historical cost less depreciation. 
Historical cost includes expenditure that is directly attributable to the 
acquisition of the items. 
 
 
Subsequent costs are included in the asset's carrying amount or recognised as a 
separate asset, as appropriate, only when it is probable that future economic 
benefits associated with the item will flow to the Group and the cost of the 
item can be measured reliably. All other repairs and maintenance are charged to 
the income statement during the financial period in which they are incurred. 
 
 
Depreciation is calculated using the straight line method to allocate their 
cost, net of their residual values, over their estimated useful lives, as 
follows: 
 
 
+---------------------------+--------------+ 
| ? Machinery               | 5?12 years   | 
+---------------------------+--------------+ 
| ? Furniture, fittings and | 3?8 years    | 
| equipment                 |              | 
+---------------------------+--------------+ 
 
 
The assets' residual values and useful lives are reviewed, and adjusted if 
appropriate, at each balance sheet date. 
 
 
An asset's carrying amount is written down immediately to its recoverable amount 
if the asset's carrying amount is greater than its estimated recoverable amount 
(note 1(i)). 
 
 
Gains and losses on disposals are determined by comparing proceeds with carrying 
amount. These are included in the income statement. 
 
(o) Exploration and evaluation expenditure 
 
 
Exploration and evaluation costs include expenditure incurred in connection with 
the exploration for and the evaluation of economically recoverable mineral 
resources. These costs include costs of acquisition, exploration and appraisal 
costs and technical overheads directly associated with those projects. 
 
 
The company's policy with respect to exploration and evaluation expenditure is 
to use the "area of interest" method. Under this method, exploration and 
evaluation costs are carried forward on the following basis: 
 
               (i)     Each area of interest is considered separately when 
deciding whether and to what extent to carry forward 
 

               or 
write off exploration and evaluation costs; 
(ii)    Exploration and evaluation costs related to an area of interest may be 
carried forward provided that rights to tenure of the area of interest are 
current and provided further that one of the following conditions are met: 
 
  *  such costs are expected to be recouped through successful development and 
  exploitation of the area of interest or alternatively, by its sale; or 
  *  exploration and/or evaluation activities in the area of interest have not yet 
  reached a stage which permits a reasonable assessment of the existence or 
  otherwise of economically recoverable reserves and active and significant 
  operations in relation to the area are continuing. 
(iii)      The carrying values of exploration and evaluation costs are reviewed 
  by directors where results of exploration and/or evaluation of an area of 
  interest are sufficiently advanced to permit a reasonable estimate of the costs 
  expected to be recouped through successful development and exploitation of the 
  area of interest or by its sale. Expenditure in excess of this estimate is 
  written off to the profit and loss account in the year in which the review 
  occurs; 
 
(iv)    When development of an area of interest is complete and production 
commences, all exploration, evaluation and development costs carried forward as 
an asset (including the cost of extractive rights acquired) are transferred to 
mining properties. Development costs related to an area of interest are carried 
forward as an asset to the extent that they are expected to be recovered either 
through sale or successful exploitation; and 
(v)    The carrying values of exploration, evaluation and development 
expenditure are transferred to mining properties and are carried forward and 
amortised over the expected useful life of each project. 
 
 
(p) Mining properties 
 
 
Mine properties represent the acquisition costs and/or accumulation of 
exploration, evaluation and development costs in respect of areas of interest in 
which mining has commenced. 
 
 
When further development expenditure is incurred in respect of a mine property 
after the commencement of production, such expenditure is carried forward as 
part of the mine property only when substantial future economic benefits are 
thereby established, otherwise such expenditure is classified as part of the 
cost of production. 
 
 
Amortisation is provided on a unit-of-production basis so as to write off the 
cost in proportion to the depletion of the proved and probable mineral 
resources. 
 
                (q)     Trade and other payables 
 
 
These amounts represent liabilities for goods and services provided to the Group 
prior to the end of financial year which are unpaid. The amounts are unsecured 
and are usually paid within 30 days of recognition. 
 
 
(r)     Borrowings 
 
 
Borrowings are initially recognised at fair value, net of transaction costs 
incurred. Borrowings are subsequently measured at amortised cost. Any difference 
between the proceeds (net of transaction costs) and the redemption amount is 
recognised in the income statement over the period of the borrowings using the 
effective interest method. 
 
 
The fair value of the liability portion of a convertible bond is determined 
using a market interest rate for an equivalent non-convertible bond. This amount 
is recorded as a liability on an amortised cost basis until extinguished on 
conversion or maturity of the bonds. The remainder of the proceeds is allocated 
to the conversion option. This is recognised and included in shareholders' 
equity, net of income tax effects. 
 
 
Borrowings are classified as current liabilities unless the Group has an 
unconditional right to defer settlement of the liability for at least 12 months 
after the balance sheet date. 
 
 
(s)Provisions 
 
 
Provisions are recognised when the consolidated entity has a legal, equitable or 
constructive obligation to make a future sacrifice of economic benefits to other 
entities as a result of past transactions or other past events, it is probable 
that a future sacrifice of economic benefits will be required and a reliable 
estimate can be made of the amount of the obligation. 
 
 
Rehabilitation and restoration costs 
 
 
The consolidated entity had obligations for site restoration related to its 
mining properties. The consolidated entity establishes restoration provisions 
for future mine closure costs when a legal or constructive obligation exists 
based on the present value of the future cash flows required to satisfy the 
obligations. Provisions expected to be utilised in the coming 12 months on areas 
with lives of less than one year are accounted for in the income statement of 
the consolidated entity. Provisions not expected to be utilised in the coming 12 
months are added to the capital cost of the related mining assets in mine 
properties and amortised over the resource life. The provision is accreted to 
its future value over the resource life through a charge to borrowing costs. 
 
 
Changes in the estimated cost of rehabilitation are applied on a prospective 
basis with an adjustment to capital cost. 
 
(t)     Employee benefits 
 
 
(i)Wages and salaries, annual leave and sick leave 
Liabilities for wages and salaries, including non?monetary benefits, annual 
leave and accumulating sick leave expected to be settled within 12 months of the 
reporting date are recognised in other payables in respect of employees' 
services up to the reporting date and are measured at the amounts expected to be 
paid when the liabilities are settled. Liabilities for non?accumulating sick 
leave are recognised when the leave is taken and measured at the rates paid or 
payable. 
 
(ii)Share?based payments 
Share?based compensation benefits are provided to employees via the Dwyka 
Resources Limited Share and Option Plan. 
 
 
The fair value of shares and options granted under the Dwyka Resources Limited 
Employee Share and Option Plans is recognised as an employee benefit expense 
with a corresponding increase in equity. The fair value is measured at grant 
date and recognised over the period during which the employees become 
unconditionally entitled to the shares and/or options. 
 
 
The fair value at grant date is independently determined using a Black?Scholes 
option pricing model that takes into account the issue/exercise price, the term 
of the option, the impact of dilution, the non?tradeable nature of the 
share/option, the share price at grant date and expected price volatility of the 
underlying share, the expected dividend yield and the risk?free interest rate 
for the term of the option. 
 
 
The fair value of the shares and/or options granted is adjusted to reflect 
market vesting conditions, but excludes the impact of any non?market vesting 
conditions (for example, profitability and sales growth targets). Non?market 
vesting conditions are included in assumptions regarding the employee loan 
recoverability and about the number of options that are expected to become 
exercisable. At each balance sheet date, the entity revises its estimate of the 
number of options that are expected to become exercisable. The employee benefit 
expense recognised each period takes into account the most recent estimate. The 
impact of the revision to original estimates, if any, is recognised in the 
income statement with a corresponding adjustment to equity. 
 
 
The value of shares issued to employees financed by way of a non recourse loan 
under the employee share scheme is recognised with a corresponding increase in 
equity when the company receives funds from either the employees repaying the 
loan or upon the loan termination.  All shares issued under the plan with non 
recourse loans are considered, for accounting purposes, to be options. 
 
 
(u)     Contributed equity 
 
 
Ordinary shares are classified as equity. 
 
 
Incremental costs directly attributable to the issue of new shares or options 
are shown in equity as a deduction, net of tax, from the proceeds. Incremental 
costs directly attributable to the issue of new shares or options for the 
acquisition of a business are included in the cost of the acquisition as part of 
the purchase consideration. 
 
 
 (v)     Earnings per share 
 
 
(i)Basic earnings per shareBasic earnings per share is calculated by dividing 
the profit or loss attributable to equity holders of the Company, excluding any 
costs of servicing equity other than ordinary shares, by the weighted average 
number of ordinary shares outstanding during the year. 
 
(ii)Diluted earnings per share 
Diluted earnings per share adjusts the figures used in the determination of 
basic earnings per share to take into account the after income tax effect of 
interest and other financing costs associated with dilutive potential ordinary 
shares and the weighted average number of shares assumed to have been issued for 
no consideration in relation to dilutive potential ordinary shares. 
 
 
(w) Goods and Services Tax (GST) 
 
 
Revenues, expenses and assets are recognised net of the amount of associated 
GST, unless the GST incurred is not recoverable from the taxation authority. In 
this case it is recognised as part of the cost of acquisition of the asset or as 
part of the expense. 
 
 
Receivables and payables are stated inclusive of the amount of GST receivable or 
payable. The net amount of GST recoverable from, or payable to, the taxation 
authority is included with other receivables or payables in the balance sheet. 
 
 
Cash flows are presented on a gross basis. The GST components of cash flows 
arising from investing or financing activities which are recoverable from, or 
payable to the taxation authority, are presented as operating cash flow. 
 
 
(x)     Rounding of amounts 
 
 
The company is of a kind referred to in Class order 98/0100, issued by the 
Australian Securities and Investments Commission, relating to the "rounding 
off" of amounts in the financial report. Amounts in the financial report have 
been rounded off in accordance with that Class Order to the nearest thousand 
dollars, or in certain cases, the nearest dollar. 
 
 
                 (y)    New Accounting Standards and Interpretations 
 
 
Certain new accounting standards and interpretations have been published that 
are not mandatory for 30 June 2009 reporting periods. The Group's and the parent 
entity's assessment of the impact of these new standards and interpretations is 
set out below. 
 
 
+----------------------------------------------------------------------+ 
| (i)    AASB 8 Operating Segments and AASB 2007?3 Amendments to       | 
| Australian Accounting Standards arising from AASB 8 (effective from  | 
| 1 January 2009)                                                      | 
+----------------------------------------------------------------------+ 
|                                            AASB 8 will result in a   | 
|                                            significant change in the | 
|                                            approach to segment       | 
|                                            reporting, as it requires | 
|                                            adoption of a 'management | 
|                                            approach' to reporting on | 
|                                            financial performance.    | 
|                                            The information being     | 
|                                            reported will be based on | 
|                                            what the key decision     | 
|                                            makers use internally for | 
|                                            evaluating segment        | 
|                                            performance and deciding  | 
|                                            how to allocate resources | 
|                                            to operating segments.    | 
+----------------------------------------------------------------------+ 
|                                            (ii)    Revised AASB 123  | 
|                                            Borrowing Costs and AASB  | 
|                                            2007?6 Amendments to      | 
|                                            Australian Accounting     | 
|                                            Standards arising from    | 
|                                            AASB 123 (effective from  | 
|                                            1 January 2009)           | 
+----------------------------------------------------------------------+ 
|                                            The revised AASB 123 has  | 
|                                            removed the option to     | 
|                                            expense all borrowing     | 
|                                            costs and ? when adopted  | 
|                                            ? will require the        | 
|                                            capitalisation of all     | 
|                                            borrowing costs directly  | 
|                                            attributable to the       | 
|                                            acquisition, construction | 
|                                            or production of a        | 
|                                            qualifying asset. There   | 
|                                            will be no impact on the  | 
|                                            financial report of the   | 
|                                            Group, as the Group       | 
|                                            already capitalises       | 
|                                            borrowing costs relating  | 
|                                            to qualifying assets.     | 
+----------------------------------------------------------------------+ 
 
 
 
 
 
+----------------------------------------------------------------------+ 
|                                   (iii)    Revised AASB 101          | 
|                                   Presentation of Financial          | 
|                                   Statements and AASB 2007?8         | 
|                                   Amendments to Australian           | 
|                                   Accounting Standards arising from  | 
|                                   AASB 101 (effective from 1 January | 
|                                   2009)                              | 
+----------------------------------------------------------------------+ 
|                                     The September 2007 revised AASB  | 
|                                     101 requires the presentation of | 
|                                     a statement of comprehensive     | 
|                                     income and makes changes to the  | 
|                                     statement of changes in equity,  | 
|                                     but will not affect any of the   | 
|                                     amounts recognised in the        | 
|                                     financial statements. If an      | 
|                                     entity has made a prior period   | 
|                                     adjustment or has reclassified   | 
|                                     items in the financial           | 
|                                     statements, it will need to      | 
|                                     disclose a third balance sheet   | 
|                                     (statement of financial          | 
|                                     position), this one being as at  | 
|                                     the beginning of the comparative | 
|                                     period. The Group will apply the | 
|                                     revised standard from 1 July     | 
|                                     2009.                            | 
+----------------------------------------------------------------------+ 
|                                     (iv)    AASB 2008?1 Amendments   | 
|                                     to Australian Accounting         | 
|                                     Standard ? Share?based Payments: | 
|                                     Vesting Conditions and           | 
|                                     Cancellations (effective from 1  | 
|                                     January 2009)                    | 
+----------------------------------------------------------------------+ 
|                                     AASB 2008?1 clarifies that       | 
|                                     vesting conditions are service   | 
|                                     conditions and performance       | 
|                                     conditions only and that other   | 
|                                     features of a share?based        | 
|                                     payment are not vesting          | 
|                                     conditions. It also specifies    | 
|                                     that all cancellations, whether  | 
|                                     by the entity or by other        | 
|                                     parties, should receive the same | 
|                                     accounting treatment. The Group  | 
|                                     will apply the revised standard  | 
|                                     from 1 July 2009, but it is not  | 
|                                     expected to affect the           | 
|                                     accounting for the Group's       | 
|                                     share?based payments.            | 
+----------------------------------------------------------------------+ 
|                                     (v)    AASB 2008?6 Further       | 
|                                     Amendments to Australian         | 
|                                     Accounting Standards arising     | 
|                                     from the Annual Improvements     | 
|                                     Project (effective 1 July 2009)  | 
+----------------------------------------------------------------------+ 
|                                     The amendments to AASB 5         | 
|                                     Discontinued Operations and AASB | 
|                                     1 First?Time Adoption of         | 
|                                     Australian?Equivalents to        | 
|                                     International Financial          | 
|                                     Reporting Standards are part of  | 
|                                     the IASB's annual improvements   | 
|                                     project published in May 2008.   | 
|                                     They clarify that all of a       | 
|                                     subsidiary's assets and          | 
|                                     liabilities are classified as    | 
|                                     held?for?sale if a partial       | 
|                                     disposal sale plan results in    | 
|                                     loss of control. Relevant        | 
|                                     disclosures should be made for   | 
|                                     this subsidiary if the           | 
|                                     definition of a discontinued     | 
|                                     operation is met. The Group will | 
|                                     apply the amendments             | 
|                                     prospectively to all partial     | 
|                                     disposals of subsidiaries from 1 | 
|                                     July 2009.                       | 
+----------------------------------------------------------------------+ 
 
 
+----------------------------------------------------------------------+ 
|                                     (vi)    AASB 2008?7 Amendments   | 
|                                     to Australian Accounting         | 
|                                     Standards ? Cost of an           | 
|                                     Investment in a Subsidiary,      | 
|                                     Jointly Controlled Entity or     | 
|                                     Associate (effective 1 July      | 
|                                     2009)                            | 
+----------------------------------------------------------------------+ 
|                                     In July 2008, the AASB approved  | 
|                                     amendments to AASB 1 First?time  | 
|                                     Adoption of International        | 
|                                     Financial Reporting Standards    | 
|                                     and AASB 127 Consolidated and    | 
|                                     Separate Financial Statements.   | 
|                                     The Group will apply the revised | 
|                                     rules prospectively from 1 July  | 
|                                     2009. After that date, all       | 
|                                     dividends received from          | 
|                                     investments in subsidiaries,     | 
|                                     jointly controlled entities or   | 
|                                     associates will be recognised as | 
|                                     revenue, even if they are paid   | 
|                                     out of pre?acquisition profits,  | 
|                                     but the investments may need to  | 
|                                     be tested for impairment as a    | 
|                                     result of the dividend payment.  | 
|                                     Under the entity's current       | 
|                                     policy, these dividends are      | 
|                                     deducted from the cost of the    | 
|                                     investment. Furthermore, when a  | 
|                                     new intermediate parent entity   | 
|                                     is created in internal           | 
|                                     reorganisations it will measure  | 
|                                     its investment in subsidiaries   | 
|                                     at the carrying amounts of the   | 
|                                     net assets of the subsidiary     | 
|                                     rather than the subsidiary's     | 
|                                     fair value.                      | 
+----------------------------------------------------------------------+ 
 
 
 
 
 
 
 
 
 
 
 
            2Financial risk management 
 
 
The Group's activities expose it predominantly to credit risk, interest rate 
risk and foreign exchange risk.  The Group's overall risk management program 
focuses on the unpredictability of financial markets and seeks to minimise 
potential adverse effects on the financial performance of the Group. 
 
 
Risk management is carried out by the Board of Directors.  The Board provides 
principles for overall risk management, and is in the process of formalising and 
documenting these policies covering specific areas, such as mitigating foreign 
exchange, interest rate and credit risks. No derivative financial instruments 
have been used in the management of risk. 
 
 
The Group and the parent entity hold the following financial instruments: 
 
 
+----------------------------------------------------------------------+ 
|                                     (vii)Revised AASB 3 Business     | 
|                                     Combinations, AASB 127           | 
|                                     Consolidated and Separate        | 
|                                     Financial Statements and AASB    | 
|                                     2008-3 Amendments to Australian  | 
|                                     Accounting Standards arising     | 
|                                     from AASB 3 and AASB 127         | 
|                                     (effective 1 July 2009)          | 
+----------------------------------------------------------------------+ 
|                                     The revised AASB 3 continues to  | 
|                                     apply the acquisition method to  | 
|                                     business combinations, but with  | 
|                                     some significant changes. For    | 
|                                     example, all payments to         | 
|                                     purchase a business are to be    | 
|                                     recorded at fair value at the    | 
|                                     acquisition date, with           | 
|                                     contingent payments classified   | 
|                                     as debt subsequently re-measured | 
|                                     through the income statement.    | 
|                                     There is a choice on an          | 
|                                     acquisition-by-acquisition basis | 
|                                     to measure the                   | 
|                                     non-controlling interest in the  | 
|                                     acquiree either at fair value or | 
|                                     at the non-controlling           | 
|                                     interest's proportionate share   | 
|                                     of the acquiree's net assets.    | 
|                                     All acquisition-related costs    | 
|                                     must be expensed. This is        | 
|                                     consistent to the                | 
|                                     Group's current policy which is  | 
|                                     set out in note 1(g) above.      | 
|                                     The revised AASB 127 requires    | 
|                                     the effects of all transactions  | 
|                                     with non-controlling interests   | 
|                                     to be recorded in equity if      | 
|                                     there is no change in control    | 
|                                     and these transactions will no   | 
|                                     longer result in goodwill or     | 
|                                     gains and losses, see note       | 
|                                     1(b)(i). The standard also       | 
|                                     specifies the accounting when    | 
|                                     control is lost. Any remaining   | 
|                                     interest in the entity is        | 
|                                     re-measured to fair value, and a | 
|                                     gain or loss is recognised in    | 
|                                     profit or loss. Under the        | 
|                                     Group's current accounting       | 
|                                     policy, the retained interest in | 
|                                     the carrying amount of           | 
|                                     the former subsidiary's assets   | 
|                                     and liabilities becomes the cost | 
|                                     of investment. If the investment | 
|                                     is accounted for as an           | 
|                                     available-for-sale financial     | 
|                                     asset, it is subsequently        | 
|                                     revalued to fair value; however, | 
|                                     any revaluation gain or loss is  | 
|                                     recognised in the                | 
|                                     available-for-sale investments   | 
|                                     revaluation reserve.             | 
|                                     The Group will apply the revised | 
|                                     standards prospectively to all   | 
|                                     business combinations and        | 
|                                     transactions with                | 
|                                     non-controlling interests from 1 | 
|                                     July 2009.                       | 
+----------------------------------------------------------------------+ 
 
 
Credit risk exposures 
The credit risk on financial assets of the Group which have been recognised on 
the balance sheet, other than investments in shares, is generally the carrying 
amount, net of any provision for doubtful debts. 
 
 
The Group minimises credit risk in relation to cash and cash equivalent assets 
by only utilising the services of the Australian "Big 4" banks for Australian 
held cash assets and for international cash holdings recognised international 
financial institutions are used. 
 
 
The Group does not have a significant credit risk in relation to trade 
receivables. 
 
 
Market risk 
    (a)    Foreign exchange risk 
Foreign exchange risk arises when future commercial transactions and recognised 
assets and liabilities are denominated in a currency that is not the entity's 
functional currency. The Group operates internationally and is exposed to 
foreign exchange risk arising from currency exposures to British pounds and the 
US dollar. 
 
 
Sensitivity 
Based on the financial instruments held at 30 June 2009, had the Australian 
dollar weakened/strengthened by 10% against the GBP with all other variables 
held constant, the Group and parent entity's post-tax loss for the year would 
have been $1,331,000 lower/$1,088,000 higher (2008 profit - $37,000 
lower/$44,000 higher), mainly as a result of foreign exchange gains/losses on 
translation of GBP denominated cash equivalents.  Both the Group and parent 
equity would have been $1,088,000 higher/$1,331,000 lower (2008 - $2,220,000 
higher/$2,005,000 lower) had the Australian dollar weakened/strengthened by 10% 
against the GBP. The June 2008 position was more sensitive largely arising from 
translation of the GBP denominated share placement completed on 30 June 2008. 
The Group's exposure to other foreign exchange movements is not material. 
 
 
Market risk 
(b)Price risk 
As at 30 June 2009 the Group and the parent entity are exposed to equity 
securities price risk. This arises from investments held by the Group in Carlton 
Resources plc. This asset was acquired as a result of the Group disposing of its 
diamond and industrial divisions during the 2008 financial year and it is 
classified on the balance sheet as non-current assets held for sale. 
 
 
Neither the Group nor the parent entity are currently exposed to commodity price 
risk. 
 
 
Sensitivity 
Based on the financial instruments held at 30 June 2009, if the market value of 
the non-current held for sale assets was plus/minus 10% higher at 30 June 2009 
then all other variables held constant, the Group and Parent entity's post-tax 
loss for the year would have been $68,000 (2008 profit - $1,142,000) 
higher/lower. Equity for both the Group and parent would have been $75,000 (2008 
- $1,150,000) higher/lower. 
 
                (c)   Interest rate risk 
The Group and parent entity are exposed to fluctuations in interest rates. 
Interest rate risk is managed by maintaining a mix of floating rate deposits. 
As at 30 June 2009 neither the Group nor the parent entity had interest bearing 
borrowings. 
 
 
The Group holds no interest rate derivative financial instruments. 
 
 
Sensitivity 
At 30 June 2009, if interest rates had changed by +/- 50 basis points and all 
other variables were held constant, the Group's after tax loss and net equity 
would have been $576,000 (2008 - $11,000) lower/higher as a result of 
higher/lower interest income on cash and cash equivalents. 
 
 
(d)Liquidity risk 
Prudent liquidity risk management implies maintaining sufficient cash and 
marketable securities, the availability of funding through an adequate amount of 
committed credit facilities and the ability to close out market positions. The 
Group and parent entity manage liquidity risk by continuously monitoring 
forecast and actual cash flows and matching the maturity profiles of financial 
assets and liabilities. Surplus funds are only invested in "AAA" rated financial 
institutions 
 
 
As at the reporting date the Group has no access to undrawn credit facilities. 
 
 
Fair value estimation 
The fair value of financial assets and financial liabilities must be estimated 
for recognition and measurement or for disclosure purposes. 
 
 
The fair value of financial instruments traded in active markets (such as 
available?for?sale securities) is based on quoted market prices at the balance 
sheet date. The quoted market price used for financial assets held by the Group 
is the current bid price. 
 
 
The carrying value less impairment provision of trade receivables and payables 
are assumed to approximate their fair values due to their short term nature. The 
fair value of non-current financial liabilities for disclosure purposes is 
estimated by discounting the future contractual cash flows at the current market 
interest rate that is available to the Group for similar financial instruments. 
 
 
 
3    Critical accounting estimates and judgments 
 
 
Estimates and judgments are continually evaluated and are based on historical 
experience and other factors, including expectations of future events that may 
have a financial impact on the entity and that are believed to be reasonable 
under the circumstances. 
 
 
(a)    Critical accounting estimates and assumptions 
 
 
The Group makes estimates and assumptions concerning the future. The resulting 
accounting estimates will, by definition, seldom equal the related actual 
results. The estimates and assumptions that have a significant risk of causing a 
material adjustment to the carrying amounts of assets and liabilities within the 
next financial year are discussed below. 
 
 
(i)Income taxes 
The Group is subject to income taxes in Australia and jurisdictions where it has 
foreign operations. Significant judgment is required in determining the 
worldwide provision for income taxes. There are transactions and calculations 
undertaken during the ordinary course of business for which the ultimate tax 
determination is uncertain. The Group recognises liabilities for anticipated tax 
audit issues based on estimates of whether additional taxes will be due. Where 
the final tax outcome of these matters is different from the amounts that were 
initially recorded, such differences will impact the current and deferred tax 
provisions in the period in which such determination is made. 
 
(ii)  Exploration, evaluation and mining properties 
The Group's main activity is exploration and evaluation for, and mining of 
minerals. The nature of mining and exploration activities are such that it 
requires interpretation of complex and difficult geological models in order to 
make an assessment of the size, shape, depth and quality of resources and their 
anticipated recoveries. The economic, geological and technical factors used to 
estimate mining viability may change from period to period. In addition 
exploration activities by their nature are inherently uncertain. Changes in all 
these factors can impact exploration and mining asset carrying values, 
provisions for rehabilitation and the recognition of deferred tax assets. 
 
 
(b)    Critical judgments 
 
 
(i)Recoverable amounts of investments and receivables 
The parent entity has funded its controlled entities' operations via the 
provision of loan funds. The recoverable amount of these loans is subject to the 
performance of those subsidiaries being able to generate sufficient profits and 
reserves to repay these advances. 
 
 
In the year ended 30 June 2009 the Group and parent entity have made significant 
judgements in accordance with AASB 5 Non-current assets held for sale and 
discontinued operations and AASB 136 Impairment of assets about: 
  *  For both the Group and parent the fair value and impairment of a non-current 
  asset held for sale and of an investment in a controlled  The fair value of this 
  asset was determined using the market value of this asset at balance date; and 
  *  For both the Group the fair value and impairment of an exploration property 
  (being the Philippines coal project) and for the parent the fair value and 
  impairment of investment in a controlled entity (being the investment in ARCL). 
  The fair value of this asset was impaired to zero following the decision not to 
  provide further funding to this project. 
 
 
 
4    Segment information 
 
 
During the year the Group operated primarily in three geographical segments 
being Africa, Australia and the Philippines. 
 
 
Primary reporting segment - geographical segments 
+------------------+------------------+------------------+------------------+------------------+--------------------------+--------------------+ 
|                  |    Australia     |      Africa      |   Philippines    |  Discontinued    |      Inter-segment       |    Consolidated    | 
|                  |                  |                  |                  |    operations    |eliminations/unallocated  |                    | 
+------------------+------------------+------------------+------------------+------------------+--------------------------+--------------------+ 
 
 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Revenue             |  2009    |  2008   |  2009   |  2008   |                2009                  |                2008                  |                2009                  |                2008                  |                2009                  |                2008                  |  2009    |  2008    | 
|                     |  $000    |  $000   |  $000   |  $000   |                $000                  |                $000                  |                $000                  |                $000                  |                $000                  |                $000                  |  $000    |  $000    | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
|                     |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| External sales      |        - |       - |       - |       - |                                    - |                                    - |                                    - |                                    - |                                    - |                                    - |        - |        - | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Total sales         |        - |       - |       - |       - |                                      |                                      |                                    - |                                    - |                                    - |                                    - |        - |        - | 
| revenue             |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Other revenue       |       40 |       - |       - |      32 |                                    - |                                    - |                                    - |                                    - |                                    - |                                    - |       40 |       32 | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Inter-segment       |        - |       - |       - |       - |                                    - |                                    - |                                    - |                                    - |                                      |                                    - |        - |        - | 
| revenue             |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Total segment       |       40 |       - |       - |      32 |                                    - |                                    - |                                    - |                                    - |                                    - |                                    - |       40 |       32 | 
| revenue             |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Unallocated         |          |         |         |         |                                      |                                      |                                      |                                      |                                  383 |                                  107 |      383 |      107 | 
| revenue             |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Total revenue       |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |      423 |      139 | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Result              |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Segment result      | (13,813) | (3,376) |    (65) |   (905) |                             (11,254) |                                    - |                                    - |                               12,655 |                                    - |                                (213) | (25,132) |    8,161 | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Unallocated         |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |      145 |  (7,073) | 
| revenue net of      |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
| unallocated         |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
| expenses            |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| (Loss)/profit       |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      | (24,987) |    1,088 | 
| before tax          |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Income tax          |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |        - |        - | 
| benefit             |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| (Loss)/profit after |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      | (24,987) |    1,088 | 
| tax                 |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
|                     |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Assets              |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Segment assets      |   14,484 |  32,757 |  12,963 |  12,560 |                                    - |                                    - |                                    - |                                    - |                                    - |                                (884) |   27,447 |   44,433 | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Unallocated         |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |        - |        - | 
| assets              |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |          |          | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
| Total assets        |          |         |         |         |                                      |                                      |                                      |                                      |                                      |                                      |   27,447 |   44,433 | 
+---------------------+----------+---------+---------+---------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+--------------------------------------+----------+----------+ 
 
 
 
 
+------------------------+---------------+---------------+------------------+------------------+-----------------------+--+-----------+--+--+ 
|                                        |               |                  |                                          |              |     | 
+----------------------------------------+---------------+------------------+------------------------------------------+--------------+-----+ 
|                        |  Australia    |    Africa     |   Philippines    |  Discontinued    |      Inter-segment       |Consolidated  | 
|                        |               |               |                  |    operations    |eliminations/unallocated  |              | 
+------------------------+---------------+---------------+------------------+------------------+-----------------------+--+-----------+--+--+ 
 
 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
|                        |  2009  |  2008  | 2009  |  2008   |  2009   |  2008   |  2009   |  2008   |  2009   |  2008    |  2009   |  2008   | 
|                        |  $000  |  $000  | $000  |  $000   |  $000   |  $000   |  $000   |  $000   |  $000   |  $000    |  $000   |  $000   | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
|                        |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Liabilities            |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Segment liabilities    |  279   |  747   |1,042  |  1,854  |    -    |    -    |       - |    -    |    -    | (1,465)  |  1,321  |  1,136  | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Unallocated            |        |        |       |         |         |         |         |         |         |          |    -    |    -    | 
| liabilities            |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Total liabilities      |        |        |       |         |         |         |         |         |         |          |  1,321  |  1,136  | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
|                        |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Acquisition of         |   2    |  13    |1,406  |  7,062  | 11,253  |    -    |    -    |    -    |    -    |    -     | 12,661  |  7,075  | 
| property plant and     |        |        |       |         |         |         |         |         |         |          |         |         | 
| equipment and other    |        |        |       |         |         |         |         |         |         |          |         |         | 
| non-current segment    |        |        |       |         |         |         |         |         |         |          |         |         | 
| assets                 |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Other non-cash         |   -    |   -    |  -    |    -    |    -    |    -    |    -    |    -    |  152    |   427    |  152    |  427    | 
| expenses               |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
| Depreciation and       |  20    |  74    |  14   |   18    |    -    |    -    |    -    |    -    |    -    |    -     |   34    |   92    | 
| amortisation expense   |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
|     Impairment of      |10,739  | 7,181  |  -    |    -    |    -    |    -    |    -    |    -    |    -    |    -     | 10,739  |  7,181  | 
|     assets             |   -    |   -    |  -    |    -    | 11,253  |    -    |    -    |    -    |    -    |    -     |    -    |    -    | 
|     - other financial  |        |        |       |         |         |         |         |         |         |          | 11,253  |         | 
|     assets             |        |        |       |         |         |         |         |         |         |          |         |         | 
|     - exploration and  |        |        |       |         |         |         |         |         |         |          |         |         | 
|     evaluation and     |        |        |       |         |         |         |         |         |         |          |         |         | 
|     mining properties  |        |        |       |         |         |         |         |         |         |          |         |         | 
+------------------------+--------+--------+-------+---------+---------+---------+---------+---------+---------+----------+---------+---------+ 
 
 
Secondary reporting format - Business segments 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
|                             |  Segment revenues from sales  |           Segment assets            |  Acquisition of property plant and  | 
|                             |    to external customers      |                                     |  equipment and other non-current    | 
|                             |                               |                                     |           segment assets            | 
+-----------------------------+-------------------------------+-------------------------------------+-------------------------------------+ 
|                             |          2009 |          2008 |             2009 |             2008 |             2009 |             2008 | 
|                             |          $000 |          $000 |             $000 |             $000 |             $000 |             $000 | 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
| Mining, exploration and     |             - |             - |           12,963 |           22,730 |           12,661 |            7,075 | 
| evaluation                  |               |               |                  |                  |                  |                  | 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
| Discontinued operations     |             - |         2,495 |                - |                - |                - |                - | 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
|                             |             - |         2,495 |           12,963 |           22,730 |           12,661 |            7,075 | 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
| Unallocated assets          |               |               |           14,484 |           21,703 |                  |                  | 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
| Total assets                |               |               |           27,447 |           44,433 |                  |                  | 
+-----------------------------+---------------+---------------+------------------+------------------+------------------+------------------+ 
 
 
 
 
 
 
5   Revenue 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     Consolidated      |    Parent entity      | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Other revenue from continuing |           |           |           |           | 
| operations                    |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Interest received             |       383 |       107 |       377 |       107 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Other revenue                 |        40 |        32 |        40 |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |       423 |       139 |       417 |       107 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
6    Expenses 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Loss before income tax        |           |           |           |           | 
| expense includes the          |           |           |           |           | 
| following specific expenses:  |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Other charges against assets: |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Impairment of        |  (10,739) |   (7,181) |  (10,739) |   (7,983) | 
|          non-current asset    |           |           |           |           | 
|          held for sale        |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Impairment of        |         - |         - |   (4,371) |     (139) | 
|          related company      |           |           |           |           | 
|          loans                |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Impairment of        |         - |         - |   (7,048) |         - | 
|          investment in        |           |           |           |           | 
|          subsidiaries         |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Impairment of        |  (11,253) |         - |         - |         - | 
|          exploration and      |           |           |           |           | 
|          mining properties    |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |  (21,992) |   (7,181) |  (22,158) |   (8,122) | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Administration       |           |           |           |           | 
|          includes the         |           |           |           |           | 
|          following:           |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Auditor fees         |        76 |       272 |        72 |       265 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Consulting expenses  |       574 |       844 |       540 |       815 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Depreciation of      |        34 |        92 |        20 |        74 | 
|          plant and equipment  |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Directors fees       |       169 |       187 |       169 |       187 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Employee benefits    |       311 |       132 |       311 |       132 | 
|          expense              |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Foreign exchange     |       270 |       145 |       270 |       145 | 
|          loss                 |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Legal fees           |       117 |       245 |       117 |       245 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Other expenses       |     1,047 |     1,195 |     1,066 |     1,138 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Rental expenses      |       107 |        96 |       107 |        92 | 
|          related to operating |           |           |           |           | 
|          leases               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Share based          |       152 |       427 |       152 |       427 | 
|          compensation         |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |   (2,857) |   (3,635) |   (2,824) |   (3,520) | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
7    Income tax 
 
 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |    Consolidated      |    Parent entity    | 
+--------------------------------+----------------------+---------------------+ 
|                                |      2009 |     2008 |     2009 |     2008 | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |      $000 |     $000 |     $000 |     $000 | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Income statement               |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Current income tax             |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Current income tax charge      |         - |        - |        - |        - | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Deferred income tax            |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Decrease in deferred tax       |         - |        - |        - |        - | 
| liability - continuing         |           |          |          |          | 
| operations                     |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Decrease in deferred tax       |         - |        - |        - |        - | 
| liability - discontinued       |           |          |          |          | 
| operations                     |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Income tax benefit reported in |         - |        - |        - |        - | 
| income statement               |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Unrecognised deferred tax      |           |          |          |          | 
| balances                       |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Unrecognised deferred tax      |     1,596 |    1,094 |    1,470 |      981 | 
| assets - Revenue losses        |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Unrecognised deferred tax      |     4,324 |    4,324 |    4,324 |    4,324 | 
| assets - Capital losses        |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Unrecognised deferred tax      |     5,772 |    2,769 |    9,815 |    3,410 | 
| assets - Temporary differences |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Net unrecognised deferred tax  |    11,692 |    8,187 |   15,609 |    8,715 | 
| assets                         |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
 
 
 
 
 
7    Income tax (continued) 
 
 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |    Consolidated      |    Parent entity    | 
+--------------------------------+----------------------+---------------------+ 
|                                |      2009 |     2008 |     2009 |     2008 | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |      $000 |     $000 |     $000 |     $000 | 
+--------------------------------+-----------+----------+----------+----------+ 
 
 
+--------------------------------+-----------+----------+----------+----------+ 
|   Reconciliation to income tax expense to prima facie tax (benefit)/expense | 
+-----------------------------------------------------------------------------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Loss from                      |  (24,987) | (11,567) | (25,126) | (11,083) | 
| continuing operations before   |           |          |          |          | 
| income tax expense             |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Profit from                    |         - |   12,655 |        - |        - | 
| discontinuing operations       |           |          |          |          | 
| before income tax benefit      |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |  (24,987) |    1,088 | (25,126) | (11,083) | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Income tax expense/(benefit) @ |   (7,496) |      326 |  (7,538) |  (3,325) | 
| 30%  (2008 - 30%)              |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Difference in overseas tax     |         1 |        2 |        - |        - | 
| rates                          |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Tax effect on amounts which    |           |          |          |          | 
| are not                        |           |          |          |          | 
| deductible/(assessable)        |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|          Impairment of         |     3,376 |        - |        - |        - | 
|          exploration and       |           |          |          |          | 
|          mining properties     |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|          Share-based payments  |        45 |      128 |       45 |      128 | 
+--------------------------------+-----------+----------+----------+----------+ 
|          Foreign expenditure   |       640 |      648 |      640 |      648 | 
+--------------------------------+-----------+----------+----------+----------+ 
|          Gain on sale of       |         - |  (3,838) |        - |        - | 
|          foreign subsidiary    |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|          Sundry items          |      (16) |      102 |     (16) |      102 | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |   (3,450) |  (2,632) |  (6,869) |  (2,447) | 
+--------------------------------+-----------+----------+----------+----------+ 
| Benefit of tax losses and      |     3,450 |    2,632 |    6,869 |    2,447 | 
| temporary differences not      |           |          |          |          | 
| brought to account             |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
| Income tax expense continuing  |         - |        - |        - |        - | 
| operations                     |         - |        - |        - |        - | 
| Income tax expense             |           |          |          |          | 
| discontinued operations        |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                                |           |          |          |          | 
+--------------------------------+-----------+----------+----------+----------+ 
|                            The Australian tax consolidation regime does not | 
|                            apply to the company.                            | 
+--------------------------------+-----------+----------+----------+----------+ 
 
 
 
8Current assets - Cash and cash equivalents 
 
 
+--------------------------------+----------+----------+----------+-------+-----------+ 
|                                |        Consolidated |                Parent entity | 
+--------------------------------+---------------------+------------------------------+ 
|                                |     2009 |     2008 |             2009 |      2008 | 
+--------------------------------+----------+----------+------------------+-----------+ 
|                                |     $000 |     $000 |             $000 |      $000 | 
+--------------------------------+----------+----------+------------------+-----------+ 
|                                |          |          |          |                   | 
+--------------------------------+----------+----------+----------+-------------------+ 
| Cash at bank and on hand       |      342 |      114 |              257 |        84 | 
+--------------------------------+----------+----------+------------------+-----------+ 
| Deposits at call               |   12,646 |      328 |           12,544 |       328 | 
+--------------------------------+----------+----------+------------------+-----------+ 
| Term deposits                  |       32 |       30 |               32 |        30 | 
+--------------------------------+----------+----------+------------------+-----------+ 
|                                |   13,020 |      472 |           12,833 |       442 | 
+--------------------------------+----------+----------+----------+-------+-----------+ 
 
 
Interest earned from cash accounts and deposits ranged from 0% to 3.6% per annum 
(2008: 0% - 7.9%). The term deposits have an average maturity of 90 days. 
 
 
Risk exposure 
 
 
The Group's and parent entity's exposure to interest rate risk is discussed in 
Note 2. The maximum exposure to credit risk at the reporting date is the 
carrying amount of cash and cash equivalents noted above. 
 
 
 
 
9Current assets - Trade and other receivables 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| GST/VAT refund                |        34 |        72 |        34 |        72 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Prepayments                   |        25 |         - |        25 |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Share placement proceeds, net |         - |    20,617 |         - |    20,617 | 
| of issue costs                |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Employee loans (note 23)      |       274 |         - |       274 |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Other receivables             |       151 |       187 |        77 |       120 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |       484 |    20,876 |       410 |    20,809 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
The net proceeds of the Company's share issue on 30 June 2008, net of costs, 
amounting to $20,617,000, was received into the Company's bank account in July 
2008. 
 
 
 
10    Current assets - Non-current asset held for sale 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Transferred from non-current  |         - |    18,598 |         - |    19,400 | 
| assets, ( refer note 11)      |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening balance               |    11,417 |         - |    11,417 |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Impairment charged to income  |  (10,739) |   (7,181) |  (10,739) |   (7,983) | 
| statement                     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |       678 |    11,417 |       678 |    11,417 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
An impairment charge has been raised to reflect the fair value less estimated 
cost of sale of the asset as at the balance sheet date. 
 
 
 
 
11    Non-current assets - Investments accounted for using the equity method 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               | 2009      | 2008      | 2009      | 2008      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | $000      | $000      | $000      | $000      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Shares in associates, at      | -         | 20,157    | -         | 20,157    | 
| acquisition                   |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Disposals                     | -         | (737)     | -         | (757)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Equity accounted loss         | -         | (822)     | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | -         | 18,598    | -         | 19,400    | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Transferred to non-current    | -         | (18,598)  | -         | (19,400)  | 
| asset held for sale           |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | -         | -         | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
In September 2007 the Company sold its subsidiaries that held diamond mining and 
exploration assets and the industrial division assets in exchange for shares in 
Carlton Resources Plc (formerly KimCor Diamonds Plc). As a result Carlton 
Resources Plc became an associate company and as at year end the Company held a 
30.5% interest in Carlton Resources Plc. The Company accounted for this 
investment using the equity method up to 31 December 2007. In accordance with 
AASB 5:Non-current Assets Held for Sale and Discontinued Operations effective as 
from 1 January 2008 the Company has classified this investment as being held for 
sale (refer note 10) as the Company expects the investment will be recovered 
principally through a sale transaction rather than through the receipt of 
dividend income. 
 
12    Non-current assets - Receivables 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               | 2009      | 2008      | 2009      | 2008      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | $000      | $000      | $000      | $000      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Non-current                   |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Loans to related parties      | -         | -         | 6,659     | 1,468     | 
| (refer note 28)               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Less impairment of loans to   | -         | -         | (4,868)   | (497)     | 
| related parties               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | -         | -         | 1,791     | 971       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Loan to others                | 466       | 233       | 466       | 233       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | 466       | 233       | 2,257     | 1,204     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
Loans are carried at their net recoverable amount and are non-interest bearing. 
 
 
The loans to related parties were impaired at the balance sheet date to reflect 
the underlying business in those related party companies. The aging of these 
loans is greater than 6 months. 
 
 
Risk Exposure 
 
 
Information concerning the Group's and parent entity's exposure to credit risk, 
foreign exchange and interest rate risk is provided in Note 2. The maximum 
exposure for credit risk at the reporting date is the carrying value of each 
class of receivables noted above. 
 
 
 
 
13Non-current assets - Other financial assets 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               | 2009      | 2008      | 2009      | 2008      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | $000      | $000      | $000      | $000      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Available-for-sale financial  |           |           |           |           | 
| assets                        |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening balance               | 84        | 233       | 84        | 233       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Additions                     | 40        | -         | 40        | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Disposals                     | -         | (5)       | -         | (5)       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Revaluation charged to equity | (47)      | (144)     | (47)      | (144)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               | 77        | 84        | 77        | 84        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Other (non traded             |           |           |           |           | 
| investments)                  |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Shares in other corporations  |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| - controlled entities, at     | -         | -         | 19,400    | 12,402    | 
| cost                          |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| - less impairment of          | -         | -         | (9,269)   | (2,220)   | 
| investment                    |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               | -         | -         | 10,131    | 10,182    | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | 77        | 84        | 10,208    | 10,266    | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
14Non-current assets - Property, plant and equipment 
 
 
Consolidated 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |  Freehold |   Plant & |    Leased |     Total | 
|                               |    land & | equipment |    assets |      $000 | 
|                               | buildings |      $000 |      $000 |           | 
|                               |      $000 |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| At 30 June 2007               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Cost                          | 145       | 8,306     | 989       | 9,440     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accumulated depreciation      | (39)      | (3,386)   | (87)      | (3,512)   | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net book amount               | 106       | 4,920     | 902       | 5,928     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Year ended 30 June 2008       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening net book amount       | 106       | 4,920     | 902       | 5,928     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Additions                     | -         | 13        | -         | 13        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Disposal of subsidiaries      | (106)     | (4,775)   | (902)     | (5,783)   | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Depreciation charge           | -         | (92)      | -         | (92)      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing net book              | -         | 66        | -         | 66        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| At 30 June 2008               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Cost                          | -         | 328       | -         | 328       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accumulated depreciation      | -         | (262)     | -         | (262)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net book amount               | -         | 66        | -         | 66        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Year ended 30 June 2009       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening net book amount       | -         | 66        | -         | 66        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Additions                     | -         | 2         | -         | 2         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Disposal                      | -         | (1)       | -         | (1)       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Depreciation charge           | -         | (34)      | -         | (34)      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing net book              | -         | 33        | -         | 33        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| At 30 June 2009               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Cost                          | -         | 328       | -         | 328       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accumulated depreciation      | -         | (295)     | -         | (295)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net book amount               | -         | 33        | -         | 33        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
14    Non-current assets - Property, plant and equipment (continued) 
 
 
Parent 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |   Plant & |           |     Total | 
|                               |           | equipment |           |      $000 | 
|                               |           |      $000 |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| At 30 June 2007               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Cost                          |           | 264       |           | 264       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accumulated depreciation      |           | (166)     |           | (166)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net book amount               |           | 98        |           | 98        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Year ended 30 June 2008       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening net book amount       |           | 98        |           | 98        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Additions                     |           | 13        |           | 13        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Depreciation charge           |           | (74)      |           | (74)      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing net book              |           | 37        |           | 37        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| At 30 June 2008               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Cost                          |           | 277       |           | 277       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accumulated depreciation      |           | (240)     |           | (240)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net book amount               |           | 37        |           | 37        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Year ended 30 June 2009       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening net book amount       |           | 37        |           | 37        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Additions                     |           | 2         |           | 2         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Depreciation charge           |           | (20)      |           | (20)      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing net book              |           | 19        |           | 19        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| At 30 June 2009               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Cost                          |           | 279       |           | 279       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accumulated depreciation      |           | (260)     |           | (260)     | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net book amount               |           | 19        |           | 19        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
15Non-current assets - Exploration, evaluation and mining properties 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     Consolidated      |    Parent entity      | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Exploration and      | 23,944    | 11,285    | -         | -         | 
|          evaluation costs     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Impairment charges            | (11,255)  | -         | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | 12,689    | 11,285    | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|  Reconciliations of the carrying amount of exploration, evaluation and mining | 
|     properties at the beginning and end of the current and previous financial | 
|                                                                         year: | 
+-------------------------------------------------------------------------------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Exploration and evaluation    |           |           |           |           | 
| costs                         |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Opening balance      | 11,285    | 5,679     | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Exploration property acquired | 6,998     | 6,059     | -         | -         | 
| during the year               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Exploration and evaluation    | 5,661     | 1,003     | -         | -         | 
| costs incurred during the     |           |           |           |           | 
| year                          |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Exploration and evaluation    | -         | (1,456)   | -         | -         | 
| costs disposed of during the  |           |           |           |           | 
| year                          |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Expenditure written off       | (4,257)   | -         | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|             Impairment charge | (6,998)   | -         | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               | 12,689    | 11,285    | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Mining properties             |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening balance               | -         | 900       | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Mine property disposed of     | -         | (900)     | -         | -         | 
| during year                   |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               | -         | -         | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
Ultimate recoupment of costs carried forward for mining properties, exploration 
and evaluation is dependent upon: 
-    continuance of the Company's rights to tenure of the areas of interest; 
-    results of future exploration; and 
-    recoupment of costs through successful development and commercial 
exploitation, or alternatively by sale of the respective areas. 
 
16Deferred tax asset 
 
 
The balance comprises temporary differences attributable to: 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               | 2009      | 2008      | 2009      | 2008      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | $000      | $000      | $000      | $000      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Amounts recognised in profit  |           |           |           |           | 
| and loss:                     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Accruals                      | 23        | 49        | 23        | 49        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Provision for impairment of   | 172       | -         | 172       | -         | 
| non-current asset held for    |           |           |           |           | 
| sale *                        |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | 195       | 49        | 195       | 49        | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Set-off against deferred tax  | (195)     | (49)      | (195)     | (49)      | 
| liabilities                   |           |           |           |           | 
| (note 19)                     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | -         | -         | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
*The deferred tax asset attributable to provision for impairment of non-current 
asset held for sale has been booked only to the extent that it can be offset 
against deferred tax liabilities. 
 
 
 
 
17Current liabilities - Trade and other payables 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               | 2009      | 2008      | 2009      | 2008      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | $000      | $000      | $000      | $000      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Trade payables                | 862       | 701       | 194       | 633       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Other payables and   | 75        | 114       | 85        | 114       | 
|          accruals             |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | 937       | 815       | 279       | 747       | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
Trade creditors are non-interest bearing and are normally settled on 30 day 
terms. Other creditors and accruals are non-interest bearing and are settled on 
an at-call basis. 
 
 
 
 
18    Non-current liabilities - Borrowings 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               | 2009      | 2008      | 2009      | 2008      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | $000      | $000      | $000      | $000      | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Unsecured                     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Other loans                   | 384       | 321       | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               | 384       | 321       | -         | -         | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
The other loans are non interest bearing and have no set date for repayment, 
other than they are not due for repayment in the next 12 months. 
 
 
 
19Deferred tax liabilities 
 
 
The balance comprises temporary differences attributable to: 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Amounts recognised in profit  |           |           |           |           | 
| and loss:                     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Unrealised foreign gains on   |       195 |        48 |       195 |        48 | 
| cash assets                   |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Property plant and equipment  |         - |         1 |         - |         1 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |       195 |        49 |       195 |        49 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Set-off against deferred tax  |     (195) |      (49) |     (195) |      (49) | 
| assets                        |           |           |           |           | 
| (note 16)                     |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |         - |         - |         - |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Deferred tax liabilities to   |       195 |        49 |       195 |        49 | 
| be settled within 12 months   |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Deferred tax liabilities to   |         - |         - |         - |         - | 
| be settled after 12 months    |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |       195 |        49 |       195 |        49 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
20    Contributed equity 
 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|                   (b)  Movements in ordinary share capital:                      | 
+----------------------------------------------------------------------------------+ 
|                                       |      |             |         |           | 
+---------------------------------------+------+-------------+---------+-----------+ 
| Date          | Details               |      |   Number of |   Issue |      $000 | 
|               |                       |      |      shares |   price |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|               |                       |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 1/7/2007      | Opening balance       |      | 111,579,270 |         |    65,580 | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 2/7/2007      | Employee share plan   |      |      33,334 |         |        17 | 
|               | loan repaid -         |      |             |         |           | 
|               | proceeds received     |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 18/7/2007     | Convertible note      |      |   2,777,778 |   $0.74 |     2,056 | 
|               | conversion            |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 20/7/2007     | Acquisition of        |      |   3,962,757 |   $1.45 |     5,746 | 
|               | subsidiary            |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 6/8/2007      | Payment of final mine |      |   2,349,400 |   $0.84 |     1,974 | 
|               | purchase              |      |             |         |           | 
|               | consideration         |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 19/9/2007     | Employee options      |      |   1,825,000 | $0.52 & |     1,429 | 
|               | exercised             |      |             |   $1.00 |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 30/6/2008     | Placement             |      |  39,745,500 |   $0.54 |    21,569 | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|               | Less: issue           |      |             |         |   (1,255) | 
|               | transactions costs    |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|               |                       |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 30 June 2008  | Balance               |      | 162,273,039 |         |    97,116 | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
 
 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| Date          | Details               |      |   Number of |   Issue |      $000 | 
|               |                       |      |      shares |   price |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|               |                       |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 1/7/2008      | Opening balance       |      | 162,273,039 |         |    97,116 | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 22/7/2008     | Acquisition of        |      |  17,494,071 |   $0.40 |     6,998 | 
|               | subsidiary & services |      |             |         |           | 
|               | contract              |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 22/12/2008    | Employee share plan   |      |   7,766,667 |         |       528 | 
|               | loan repaid -         |      |             |         |           | 
|               | proceeds received     |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 13/4/2009     | Employee share plan   |      |     200,000 |         |        16 | 
|               | loan repaid -         |      |             |         |           | 
|               | proceeds received     |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 20/5/2009     | Further consideration |      |   2,158,447 |   $0.09 |       194 | 
|               | for acquisition of    |      |             |         |           | 
|               | subsidiary            |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|               | Less: issue           |      |           - |         |      (18) | 
|               | transactions costs    |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
|               |                       |      |             |         |           | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
| 30 June 2009  | Balance               |      | 189,892,224 |         |   104,835 | 
+---------------+-----------------------+------+-------------+---------+-----------+ 
 
 
 
20    Contributed equity (continued) 
 
 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| (c) Movement in Employee Share Plan shares issued with limited recourse employee  | 
| loans:                                                                            | 
+-----------------------------------------------------------------------------------+ 
|               |                       |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| Date          | Details               | Notes |   Number of |         |           | 
|               |                       |       |      shares |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
|               |                       |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 1/7/2007      | Opening Balance       |       |   8,000,001 |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 2/7/2007      | Employee share plan   |       |    (33,334) |         |           | 
|               | loan repaid - shares  |       |             |         |           | 
|               | transferred to        |       |             |         |           | 
|               | ordinary share        |       |             |         |           | 
|               | capital               |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 11/12/ 2008   | Employee share plan   |       |     850,000 |         |           | 
|               | issue                 |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 30 June 2008  | Balance               |       |   8,816,667 |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 22/12/2008    | Employee share plan   |       | (7,766,667) |         |           | 
|               | loan repaid - shares  |       |             |         |           | 
|               | transferred to        |       |             |         |           | 
|               | ordinary share        |       |             |         |           | 
|               | capital               |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 13/4/2009     | Employee share plan   |       |   (200,000) |         |           | 
|               | loan repaid - shares  |       |             |         |           | 
|               | transferred to        |       |             |         |           | 
|               | ordinary share        |       |             |         |           | 
|               | capital               |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
| 30 June 2009  | Balance               |       |     850,000 |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
|               |                       |       |             |         |           | 
+---------------+-----------------------+-------+-------------+---------+-----------+ 
 
 
As at 30 June 2009 the weighted average issue price of issued employee share 
plans shares on issue is $0.915. Refer to note 33 for details of the employee 
share plan. 
 
20    Contributed equity (continued) 
 
 
+-----------------------------------------------------+-----------+-----------+ 
| (d) Share options                                   |  Number of options    | 
+-----------------------------------------------------+-----------------------+ 
|                                                     |   2009    |   2008    | 
+-----------------------------------------------------+-----------+-----------+ 
|                                                     |           |           | 
+-----------------------------------------------------+-----------+-----------+ 
| Options exercisable at $0.31 on or before 30 June   |   500,000 |   500,000 | 
| 2010                                                |           |           | 
+-----------------------------------------------------+-----------+-----------+ 
| Options exercisable at $0.95 on or before 30 June   |         - |   450,000 | 
| 2009                                                |           |           | 
+-----------------------------------------------------+-----------+-----------+ 
| Employee option plan options (refer note 33)        |           |           | 
+-----------------------------------------------------+-----------+-----------+ 
| - at $0.52 per share on or before 30 June 2010      |   125,000 |   125,000 | 
+-----------------------------------------------------+-----------+-----------+ 
|                                                     |   625,000 | 1,075,000 | 
+-----------------------------------------------------+-----------+-----------+ 
 
 
+-----------------------------------+-----+-------------+-----------+----------+ 
| (e)    Movements in share options |     |             |                      | 
+-----------------------------------+-----+-------------+----------------------+ 
|                                   |     |             |           |          | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|    To acquire ordinary fully paid shares at $0.31 on or before 30 June 2010: | 
+------------------------------------------------------------------------------+ 
| Beginning of the financial year   |     |             |   500,000 |        - | 
+-----------------------------------+-----+-------------+-----------+----------+ 
| Options issued during year        |     |             |         - |  500,000 | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|                                   |     |             |           |          | 
+-----------------------------------+-----+-------------+-----------+----------+ 
| Balance at end of financial year  |     |             |   500,000 |  500,000 | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|                                   |     |             |           |          | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|  To acquire ordinary fully paid shares at $0.95 on or |           |          | 
|                                  before 30 June 2009: |           |          | 
+-------------------------------------------------------+-----------+----------+ 
| Beginning of the financial year   |     |             |   450,000 |        - | 
+-----------------------------------+-----+-------------+-----------+----------+ 
| Options issued during year        |     |             |         - |  450,000 | 
+-----------------------------------+-----+-------------+-----------+----------+ 
| Expired during year               |     |             | (450,000) |        - | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|                                   |     |             |           |          | 
+-----------------------------------+-----+-------------+-----------+----------+ 
| Balance at end of financial year  |     |             |         - |  450,000 | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|                                   |     |             |           |          | 
+-----------------------------------+-----+-------------+-----------+----------+ 
|         Refer to note 33 for movements in the employee option plan including | 
|      details of options issued, exercised, and cancelled during the year and | 
|                        options outstanding at the end of the financial year. | 
+-----------------------------------+-----+-------------+-----------+----------+ 
 
 
(f)    Ordinary shares 
 
 
Ordinary shares entitle the holder to participate in dividends and the proceeds 
on winding up of the Company in proportion to the number and amounts paid on the 
shares held. 
 
 
On a show of hands every holder of ordinary shares present at a meeting in 
person or by proxy, is entitled to one vote, and upon a poll each share is 
entitled to one vote. 
 
 
(g)Employee share scheme 
 
 
Information relating to the employee share scheme, including details of shares 
issued under the scheme, is set out in note 33. 
 
 
 
 
 
21Reserves 
 
 
Movements in reserves during the year were: 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     Consolidated      |    Parent entity      | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Available-for-sale            |           |           |           |           | 
| investments revaluation       |           |           |           |           | 
| reserve                       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening balance               |      (83) |        62 |      (83) |        62 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Revaluation                   |      (47) |     (145) |      (47) |     (145) | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Deferred tax                  |         - |         - |         - |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               |     (130) |      (83) |     (130) |      (83) | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Share-based payments reserve  |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening balance               |     1,888 |     1,461 |     1,888 |     1,461 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Expense for the year          |       152 |       427 |       152 |       427 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               |     2,040 |     1,888 |     2,040 |     1,888 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Foreign currency translation  |           |           |           |           | 
| reserve                       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening balance               |        98 |   (2,523) |         - |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Currency translation          |       (8) |         - |         - |         - | 
| differences                   |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Transferred to income and     |         - |     2,621 |         - |         - | 
| expense upon disposal of      |           |           |           |           | 
| subsidiary                    |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Closing balance               |        90 |        98 |         - |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Convertible note premium      |           |           |           |           | 
| reserve                       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Opening and closing balance   |       219 |       219 |       219 |       219 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     2,219 |     2,122 |     2,129 |     2,024 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
21    Reserves (continued) 
 
 
  Nature and purpose of reserves 
 
 
 (i)Available-for-sale investments revaluation reserve 
Changes in the fair value and exchange differences arising on translation of 
investments, such as equities, classified as available-for-sale financial 
assets, are taken to the available-for-sale investments revaluation reserve. 
Amounts are recognised in profit and loss when the associated assets are sold or 
impaired. 
 
 
 (ii)    Share-based payments reserve 
The share-based payments reserve is used to recognise the fair value of employee 
share plan shares issued with an attaching limited recourse employee loan; and 
employee option plan options issued but not exercised. 
 
 
(iii)    Foreign currency translation reserve 
Exchange differences arising on translation of foreign controlled entities are 
taken to the foreign currency translation reserve. The reserve is recognised in 
profit and loss when the net investment is disposed of. 
 
 
(iv)Convertible note premium reserve 
This reserve arose form an historic issue of convertible notes by the Company 
and relates to the value of the conversion rights that attached to the 
convertible notes issued, net of tax. 
 
 
 
 
22Accumulated losses 
 
 
Movements in accumulated losses were as follows: 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |          Consolidated |         Parent entity | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Balance at beginning of year  |  (55,941) |  (57,029) |  (55,712) |  (44,629) | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Net (loss)/profit             |  (24,987) |     1,088 |  (25,126) |  (11,083) | 
| attributable to members of    |           |           |           |           | 
| Dwyka Resources Limited       |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Balance at end of financial   |  (80,928) |  (55,941) |  (80,838) |  (55,712) | 
| year                          |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
23    Key management personnel disclosures 
 
 
Refer to pages11,12 and 14 for details of directors and key management 
personnel. 
 
 
(a)  Key management personnel compensation 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     Consolidated      |    Parent entity      | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |         $ |         $ |         $ |         $ | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Short-term employee benefits  |   854,006 |   648,982 |   854,006 |   616,192 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Post-employment benefits      |    22,766 |    18,840 |    22,766 |    18,840 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Share-based payments          |    87,131 |   226,437 |    87,131 |   192,996 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |   963,903 |   894,259 |   963,903 |   828,028 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
The Company has taken advantage of the relief provided by Corporations 
Regulation CR2M.604 and has transferred the detailed remuneration disclosures to 
the directors' report. The relevant information can be found in sections A-C of 
the remuneration report. 
 
 
 (b) Equity instruments disclosure relating to key management personnel 
 
 
(i)  Shares and options provided as remuneration and shares issued on exercise 
of such options 
Details of shares and options provided as remuneration, and of shares issued on 
the exercise of such options, together with the terms and conditions of the 
shares and options, can be found in section D of the remuneration report. 
 
 
(ii) Option holdings 
The directors of Dwyka Resources Limited and other key management personnel of 
the Group, including their personally related parties have not held options in 
the Company during the 2008 and 2009 financial years; other than C Bredenkamp 
who held and then exercised 750,000 options during the year ended 30 June 
2008. 
 
(b) Equity instruments disclosure relating to key management personnel 
(continued) 
 
 
(iii) Share holdings 
 
 
The numbers of shares in the Company held during the financial year by each 
director of Dwyka Resources Limited and other key management personnel of the 
Group, including their personally related parties, are set out below. 
 
 
+--------------------------+------------------+------------+---------------+ 
| 2009 Ordinary shares     |   Balance at the |   Movement |    Balance at | 
| Name                     |     start of the | during the |    the end of | 
|                          |             year |       year |      the year | 
+--------------------------+------------------+------------+---------------+ 
|                     Directors of Dwyka Resources Limited |               | 
+----------------------------------------------------------+---------------+ 
| M Sturgess               |        2,069,855 |          - |     2,069,855 | 
+--------------------------+------------------+------------+---------------+ 
| E Kirby                  |        1,016,129 |          - |     1,016,129 | 
+--------------------------+------------------+------------+---------------+ 
| T McConnachie            |                - |          - |             - | 
+--------------------------+------------------+------------+---------------+ 
| M Langoulant             |        1,016,129 |          - |     1,016,129 | 
+--------------------------+------------------+------------+---------------+ 
|              Other key management personnel of the Group |               | 
+----------------------------------------------------------+---------------+ 
| M Churchouse             |                - |          - |             - | 
+--------------------------+------------------+------------+---------------+ 
| M Burchnall              |          250,000 |          - |       250,000 | 
+--------------------------+------------------+------------+---------------+ 
| R Jarvis                 |          250,000 |          - |       250,000 | 
+--------------------------+------------------+------------+---------------+ 
 
 
+-------------------------------+--------------+------------+---------------+ 
| 2008 Ordinary shares          |              |            |               | 
| Name                          |              |            |               | 
+-------------------------------+--------------+------------+---------------+ 
|         Directors of Dwyka Resources Limited |            |               | 
+----------------------------------------------+------------+---------------+ 
| M Sturgess                    |    2,069,855 |          - |     2,069,855 | 
+-------------------------------+--------------+------------+---------------+ 
| E Nealon                      |    2,064,129 |          - |     2,064,129 | 
+-------------------------------+--------------+------------+---------------+ 
| E Kirby                       |    1,016,129 |          - |     1,016,129 | 
+-------------------------------+--------------+------------+---------------+ 
| A Griffin                     |    1,005,000 |          - |     1,005,000 | 
+-------------------------------+--------------+------------+---------------+ 
| T McConnachie                 |            - |          - |             - | 
+-------------------------------+--------------+------------+---------------+ 
| M Langoulant                  |    1,016,129 |          - |     1,016,129 | 
+-------------------------------+--------------+------------+---------------+ 
|               Other key management personnel of the Group |               | 
+-----------------------------------------------------------+---------------+ 
| C Bredenkamp                  |       12,660 |          - |        12,660 | 
+-------------------------------+--------------+------------+---------------+ 
| M Burchnall                   |            - |    250,000 |       250,000 | 
+-------------------------------+--------------+------------+---------------+ 
 
 
(c) Loans to key management personnel 
 
 
As at 30 June 2009 the Company has made loans to various key management 
personnel as follows 
 
 
+--------------------------+------------------+------------+---------------+ 
| Name                     |   Balance at the |   Movement |    Balance at | 
|                          |     start of the | during the |    the end of | 
|                          |             year |       year |      the year | 
+--------------------------+------------------+------------+---------------+ 
| M Sturgess               |                - |    136,000 |       136,000 | 
+--------------------------+------------------+------------+---------------+ 
| E Kirby                  |                - |     68,000 |        68,000 | 
+--------------------------+------------------+------------+---------------+ 
| M Langoulant             |                - |     68,000 |        68,000 | 
+--------------------------+------------------+------------+---------------+ 
|                          |                - |    272,000 |       272,000 | 
+--------------------------+------------------+------------+---------------+ 
 
 
The above loans were advanced on the following basis: 
  *  Term - 2 years from 13 May 2009; 
  *  Interest rate - 6% pa, payable 6 monthly in arrears; 
  *  Security - lien over Dwyka Resources shares to the value of the loan; and 
  *  Principal repayment - 13 May 2011 
 
 
24    Remuneration of auditors 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     Consolidated      |    Parent entity      | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |         $ |         $ |         $ |         $ | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|       Remuneration for audit or review of the financial reports of the parent | 
|                                            entity or any entity in the Group: | 
+-------------------------------------------------------------------------------+ 
|          Auditor of the       |           |           |           |           | 
|          parent entity        |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          - Australian firm    |    72,000 |   162,674 |    72,000 |   162,674 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          - Other firms        |     4,496 |     7,178 |         - |         - | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |    76,496 |   169,852 |    72,000 |   162,674 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Remuneration for other        |         - |   102,000 |         - |   102,000 | 
| services:                     |           |           |           |           | 
| Services received from        |           |           |           |           | 
| related practices of the      |           |           |           |           | 
| Australian firm in relation   |           |           |           |           | 
| to the audit and disposal of  |           |           |           |           | 
| that subsidiary               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
 
25    Contingencies/Commitments 
 
 
(a)  Contingent liabilities 
 
 
The parent entity and Group had no known contingent liabilities as at 30 June 
2009 (2008: Nil). 
 
 
(b)  Contingent assets 
 
 
The parent entity and Group had no known contingent assets as at 30 June 2009 
(2008: Nil). 
 
 
(c)  Commitments 
 
 
The Company has committed to a USD2.143 million exploration expenditure program 
in relation to its nickel project in Burundi. This exploration expenditure is to 
spent over the next 2 year period. In prior years the exploration commitment on 
this project was the responsibility of BHP Billiton. 
 
26    Related party transactions 
 
 
(a)  Parent entity 
 
 
The ultimate parent entity in the wholly-owned group and the ultimate Australian 
parent entity is Dwyka Resources Limited. 
 
 
(b) Subsidiaries 
 
 
Interests in subsidiaries are set out in note 27. 
 
 
(c) Key management personnel 
 
 
Disclosures relating to key management personnel are set out in note 23. 
 
 
(d)  Transactions with related parties 
 
 
The following transactions occurred with related parties: 
 
 
+------------------------------------------+-----------+-------------+--------------+ 
|                                          |           |       Parent entity        | 
+------------------------------------------+-----------+----------------------------+ 
|                                          |           |        2009 |         2008 | 
+------------------------------------------+-----------+-------------+--------------+ 
|                                          |           |           $ |            $ | 
+------------------------------------------+-----------+-------------+--------------+ 
|                                          |           |             |              | 
+------------------------------------------+-----------+-------------+--------------+ 
|    Loans advanced to controlled entities |           |             |              | 
+------------------------------------------+-----------+-------------+--------------+ 
|                          Opening balance |           |     970,749 |   16,922,367 | 
+------------------------------------------+-----------+-------------+--------------+ 
|   - cash advances to controlled entities |           |   4,763,579 |      866,279 | 
+------------------------------------------+-----------+-------------+--------------+ 
|          - parent company shares issued on behalf of |     194,263 |            - | 
|                                  controlled entities |             |              | 
+------------------------------------------------------+-------------+--------------+ 
|        - prior year cash advance prior to becoming a |     233,168 |            - | 
|                                    controlled entity |             |              | 
+------------------------------------------------------+-------------+--------------+ 
|      - loan recovered on sale of controlled entities |           - | (16,678,515) | 
+------------------------------------------------------+-------------+--------------+ 
| - increase in provision for loss on loans to         | (4,370,730) |    (139,382) | 
| related parties                                      |             |              | 
+------------------------------------------------------+-------------+--------------+ 
|                          Closing balance |           |   1,791,029 |      970,749 | 
+------------------------------------------+-----------+-------------+--------------+ 
|                                          |           |             |              | 
+------------------------------------------+-----------+-------------+--------------+ 
 
 
 (e)  Outstanding balances 
 
 
The following balances are outstanding at the reporting date in relation to 
transactions with related parties: 
 
 
+-----------------------------------------------------+-----------+-----------+ 
|                                                     |           |           | 
+-----------------------------------------------------+-----------+-----------+ 
|   Non-current loans advanced by Dwyka to controlled | 1,791,029 |   970,749 | 
|   entities. These loans are unsecured non- interest |           |           | 
|          bearing and have no set time for repayment |           |           | 
+-----------------------------------------------------+-----------+-----------+ 
 
 
 
27Controlled entities 
 
 
The consolidated financial statements incorporate the assets, liabilities and 
results of the following controlled entities in accordance with the accounting 
policy described in Note 1(b): 
 
 
+-----------------------+---------------+------------+------------+--------------+ 
|    Name of entity     |  Country of   |  Class of  |      Equity holding       | 
|                       |incorporation  |  shares    |            %              | 
+-----------------------+---------------+------------+---------------------------+ 
|                       |               |            |    2009    |    2008      | 
+-----------------------+---------------+------------+------------+--------------+ 
| Swazi Gold Ventures   | South Africa  |   Ordinary |         50 |           50 | 
| Limited*              |               |            |            |              | 
+-----------------------+---------------+------------+------------+--------------+ 
| Danyland Limited      | British       |   Ordinary |        100 |          100 | 
|                       | Virgin        |            |            |              | 
|                       | Islands       |            |            |              | 
+-----------------------+---------------+------------+------------+--------------+ 
| Danyland Limited      | Burundi       |   Ordinary |        100 |          100 | 
+-----------------------+---------------+------------+------------+--------------+ 
| Karrinyup Holdings    | Mauritius     |   Ordinary |        100 |          100 | 
| Limited               |               |            |            |              | 
+-----------------------+---------------+------------+------------+--------------+ 
| Danyland Mining South | South Africa  |   Ordinary |        100 |          100 | 
| Africa Limited        |               |            |            |              | 
+-----------------------+---------------+------------+------------+--------------+ 
| Asian Coal Resources  | British       |   Ordinary |        100 |            - | 
| Limited               | Virgin        |            |            |              | 
|                       | Islands       |            |            |              | 
+-----------------------+---------------+------------+------------+--------------+ 
 
 
*    Consolidated on the basis that the parent entity has provided the sole 
funding for this company's activities up to 30 June 2009. 
 
 
 
 
28    Investments in associates 
 
 
As at 30 June 2009 the Company holds 28.68% (2008: 48.2%) of Carlton Resources 
Plc. This investment is accounted for as a non-current asset held for sale - 
refer note 10. 
 
 
 
29Discontinued operations 
 
(a) Description 
 
 
On 21 August 2007 the Company announcement its intention to sell its diamond and 
industrial divisions to the AIM listed Carlton Resources Plc (formerly KimCor 
Diamonds Plc). This transaction was completed with effect from 21 September 2007 
and the divisions disposed of are reported in this financial report as 
discontinued operations. 
 
 
Financial information relating to the discontinued operations for the period to 
the date of disposal is set out below. Further information is set out in note 4 
- segment information. 
 
(b) Financial performance and cash flow information 
 
 
The financial performance and cash flow information presented are for the year 
ended 30 June 2009 and the period ended 21 September 2007 (2008 column). 
 
 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |     Consolidated      |                      | 
+---------------------------------+-----------------------+----------------------+ 
|                                 |      2009 |      2008 |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |      $000 |      $000 |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Revenue                         |         - |     2,495 |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Expenses                        |         - |   (3,835) |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Loss before income tax          |         - |   (1,340) |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Income tax benefit              |         - |         - |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Loss after income tax of        |         - |   (1,340) |           |          | 
| discontinued operations         |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Gain on sale of the division    |         - |    13,995 |           |          | 
| before income tax               |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Income tax expense              |         - |         - |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Gain on sale of the division    |         - |    13,995 |           |          | 
| after income tax                |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Profit/(loss) from discontinued |         - |    12,655 |           |          | 
| operations                      |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
|                                 |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Net cash outflow from operating |         - |     (870) |           |          | 
| activities                      |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Net cash outflow from investing |         - |     (182) |           |          | 
| activities                      |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Net cash inflow from financing  |         - |         - |           |          | 
| activities                      |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
| Net decrease in cash utilised   |         - |   (1,052) |           |          | 
| by discontinued operations      |           |           |           |          | 
+---------------------------------+-----------+-----------+-----------+----------+ 
 
 
 
(c) Carrying amounts of assets and liabilities 
 
 
The carrying amounts of assets and liabilities as at 30 June 2009 and 21 
September 2007 (2008 column): 
 
 
+----------------------------------+-----------+----------+---------+---------+ 
|                                  |    Consolidated      |                   | 
+----------------------------------+----------------------+-------------------+ 
|                                  |      2009 |     2008 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
|                                  |      $000 |     $000 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
|                                  |           |          |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Cash                             |         - |      229 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Trade and other receivables      |         - |      786 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Inventories                      |         - |      606 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Property, plant and equipment    |         - |    5,327 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Exploration, evaluation and      |         - |    2,492 |         |         | 
| mining properties                |           |          |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Other                            |         - |      298 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Total assets                     |         - |    9,738 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
|                                  |           |          |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Trade and other payables         |         - |    1,713 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Provisions                       |         - |      832 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Borrowings                       |         - |    3,888 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Total liabilities                |         - |    6,433 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
|                                  |           |          |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
| Net assets                       |         - |    3,305 |         |         | 
+----------------------------------+-----------+----------+---------+---------+ 
 
(d) Details of the sale of the discontinued operations 
 
 
+----------------------------------+------------+----------+---------+---------+ 
|                                  |     Consolidated      |                   | 
+----------------------------------+-----------------------+-------------------+ 
|                                  |       2009 |     2008 |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
|                                  |       $000 |     $000 |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
|                                  |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Consideration received:          |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
|                                  |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Value of KimCor Diamonds Plc     |          - |   20,157 |         |         | 
| shares received                  |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Total disposal consideration     |          - |   20,157 |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Adjustment of reserves relating  |          - |  (2,857) |         |         | 
| to discontinued operations       |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Carrying amount of net assets    |          - |  (3,305) |         |         | 
| sold                             |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Gain on sale before income tax   |          - |   13,995 |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
|                                  |            |          |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Income tax expense               |          - |        - |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
| Gain on sale after income tax    |          - |   13,995 |         |         | 
+----------------------------------+------------+----------+---------+---------+ 
 
 
 
 
 
30Events occurring after the balance sheet date 
 
 
Since the end of the financial year the Group has: 
 
 
On 15 July 2009 the Company declared its offer for all the issued capital of 
Minerva Resources Plc unconditional. During July and August 2009 the Company 
issued 28,085,781 ordinary Dwyka shares to the accepting Minerva shareholders 
taking Dwyka's ownership in Minerva to 91.01%. Dwyka has commenced the process 
to compulsorily acquire the remaining outstanding shares to move to 100% 
ownership of Minerva. The Group is yet to finalise the fair value accounting on 
the acquisition of Minerva Resources Plc. This transaction was completed after 
the end of the financial year. Transaction costs in relation to this takeover 
that were incurred during the 2009 financial year have been expensed in the 2009 
financial year. 
 
 
Having received shareholder approval on 3 September 2009, the Company on 4 
September 2009 issued 5,000,000 ordinary shares at $0.11 to directors/employees 
and consultants under the Company's Employee Share Plan. In addition the Company 
also issued 5,800,000 employee Options exercisable at $011 on or before 30 
September 2012 to a director/employees and consultants under the Company's 
Employee Option Plan. The vesting of both the Employee Shares and Employee 
Options are subject to certain ongoing employment obligations in accordance with 
the Share and Option Plan conditions. 
 
 
Except for the above, no other matter or circumstance has arisen since 30 June 
2009 that has significantly affected, or may significantly affect: 
  *  the Group's operations in future financial years; 
  *  the results of those operations in future financial years; or 
  *  the Group's state of affairs in future financial years. 
 
 
 
31    Reconciliation of profit/(loss) after income tax to net cash outflow from 
operating activities 
 
 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|                                |     Consolidated      |    Parent entity      | 
+--------------------------------+-----------------------+-----------------------+ 
|                                |      2009 |      2008 |      2009 |      2008 | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|                                |      $000 |      $000 |      $000 |      $000 | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|                                |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
| Profit/(loss) after tax        |  (24,987) |     1,088 |  (25,126) |  (11,083) | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Depreciation and      |        34 |        92 |        20 |        74 | 
|          amortisation          |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
| Sundry income                  |      (40) |         - |      (40) |         - | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Profit on sale of     |         - |  (13,525) |         - |     (541) | 
|          discontinued          |           |           |           |           | 
|          operations            |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Equity accounted loss |         - |       822 |         - |         - | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Foreign exchange      |       270 |       145 |       270 |       145 | 
|          (gain)/loss           |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Share based           |       152 |       427 |       152 |       427 | 
|          compensation          |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Takeover transaction  |       561 |         - |       561 |         - | 
|          costs                 |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Impairment of assets  |    21,992 |     7,181 |    22,158 |     8,122 | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          (Loss)/profit on sale |         - |        68 |         - |        89 | 
|          of non current assets |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
| (Increase)/decrease in         |        47 |     (173) |        54 |     (116) | 
| receivables                    |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
| (Decrease)/increase in         |     (301) |      (55) |     (233) |     (101) | 
| payables                       |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          (Decrease)/increase   |         - |      (38) |         - |       (7) | 
|          in current provisions |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|                                |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
|          Net cash flow used in |   (2,272) |   (3,968) |   (2,184) |   (2,991) | 
|          operating activities  |           |           |           |           | 
+--------------------------------+-----------+-----------+-----------+-----------+ 
 
 
Non-cash financing activities 
 
 
During the 2009 year the company issued 
 
 
  *  17,494,071 ordinary shares at $0.40 as consideration for the acquisition of a 
  subsidiary and for Project management contract services; and 
  *  2,158,477 ordinary shares at $0.09 as final consideration with respect to the 
  acquisition of the Burundi nickel project. 
 
 
 
During the 2008 year the Company issued: 
. 
  *  2,777,778 ordinary shares at $0.74 to extinguish in full a GBP1 million 
  convertible note; 
  *  2,349,400 ordinary shares at $0.84 to final settlement of outstanding 
  obligations regarding the purchase of certain companies that owned various South 
  African underground diamond mines. These mines are no longer part of the Group; 
  *  3,962,757 ordinary shares at $1.45 as part consideration to acquire a 50% 
  interest in Swazi Gold Ventures (Pty) Ltd; and 
  *  39,745,500 ordinary shares at $0.54 by cash placement - the proceeds of which 
  were received into the Company's bank account on 4 and 8 July 2008. 
 
 
 
 
 
32Earnings/(loss) per share 
 
 
The following reflects the operating (loss)/profit and share data used in the 
calculations of basic and diluted earnings/(loss) per share: 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |        2009 |        2008 | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |        $000 |        $000 | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Net consolidated (loss)/profit                  |    (24,987) |       1,088 | 
+-------------------------------------------------+-------------+-------------+ 
| Earnings/(loss) used in calculating basic and   |    (24,987) |       1,088 | 
| diluted earnings/(loss) per share               |             |             | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |      Number |      Number | 
+-------------------------------------------------+-------------+-------------+ 
| Weighted average number of ordinary shares used | 179,062,193 | 120,764,881 | 
| in calculating basic earnings/(loss) per share  |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Effect of dilutive securities:                  |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Employee share plan shares                      |     850,000 |   8,816,667 | 
+-------------------------------------------------+-------------+-------------+ 
| Options                                         |           - |     177,083 | 
+-------------------------------------------------+-------------+-------------+ 
| Adjusted weighted average number of ordinary    | 179,912,193 | 129,758,631 | 
| shares used in calculating diluted              |             |             | 
| earnings/(loss) per share                       |             |             | 
+-------------------------------------------------+-------------+-------------+ 
 
 
Information concerning the classification of securities: 
Certain granted options have not been included in the determination of diluted 
profit per share as they are not dilutive. Details relating to all options are 
set out in the Directors' Report and note 20. 
 
 
 
 
 
33    Share-based payments 
 
 
(a) Employee Option Plan 
 
 
Employee incentive option plans have been approved at shareholder general 
meetings.  No employee incentive options have been issued in the financial years 
ended 30 June 2009 and 30 June 2008. 
 
 
 (b) Employee Share Plan 
 
 
Employee incentive share plans have been approved at shareholder general 
meetings. 
 
 
No employee share plan shares were issued in the year ended 30 June 2009. 
 
 
In December 2007, 850,000 shares were issued at $0.915 to non-director employees 
and consultants under the plan. These shares are to be paid by way of a loan 
payable on or before 11 December 2009 (as provided by the plan). 
 
 
For details of the shares issued to directors and executives refer to note 23. 
 
 
 (c)    Expenses relating to share based payment transactions 
 
 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |     Consolidated      |    Parent entity      | 
+-------------------------------+-----------------------+-----------------------+ 
|                               |      2009 |      2008 |      2009 |      2008 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |      $000 |      $000 |      $000 |      $000 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|          Shares issued under  |       152 |       328 |       152 |       328 | 
|          employee share plan  |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
| Options issued in exchange    |         - |        99 |         - |        99 | 
| for services rendered         |           |           |           |           | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
|                               |       152 |       427 |       152 |       427 | 
+-------------------------------+-----------+-----------+-----------+-----------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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