ASTRON LIMITED

Astron Limited ABN 97 000 285 272

Annual Financial Statements

For the Year Ended 30 June 2009

ABN 97 000 285 272

For the Year Ended 30 June 2009

CONTENTS
	Page
Financial Statements
Directors' Report	1
Auditor's Independence Declaration	13
Income Statements	14
Balance Sheets	15
Statements of Changes in Equity	16
Cash Flow Statements	19
Notes to the Financial Statements	20
Declaration by Directors	69
Independent Audit Report	70

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

The directors of Astron Limited present their report on the consolidated entity (Group), consisting of Astron Limited and the entities it controlled at the end of, and during, the financial year ended 30 June 2009.

Directors

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

Names

Mr. Gerard King

Mr. Alexander Brown
Mr. Robert Flew
Mr. Ronald McCullough

Mdm Kang Rong

Principal Activities

The principal activities of the Group during the financial year were:

Evaluation and development of the Donald mineral sands processing project (Donald)
Evaluation and development of downstream applications for mineral sands
Research into competitive titanium manufacturing processes
Zircon and titanium trading

There have been no significant changes in the nature of the Group's principal activities during the financial year.

Financial Position

The net assets of the Group have decreased to $211,166,088 a decrease of $754,510 from 2008.

The net assets have been affected by:

Impairment of:
The Group’s Senegal assets
Astron’s investments in other entities in accordance with AASB 139
Stock due to changes in market prices of products
The Dividend paid on 15 December 2008 being 10c per ordinary share

Dividends

A final dividend of $6,490,237 on ordinary shares for the year ended 30 June 2008 was paid on 15 December 2008.

No final dividend was proposed for the financial year ended 30 June 2009.

Review of Operations

During the year under review the Group received Commonwealth Government Environmental approval for Donald to mine and process fine grade mineral sands.

As a result of the global financial crisis and structural changes in the market, Astron is revising and completing the feasibility studies of its current projects, including Donald and the Zirconium oxy-chloride and Zirpaque processes. After the completion of updated feasibility studies, the next stage in the development will be the completion of the definitive engineering compilation and the setting up of a trial mining site as part of the Donald. This should generate feedstock to be utilised in trials.

During the year, through Astron’s research and development capability, work continued on the

ABN 97 000 285 272

Astron Limited

Directors' Report

30 June 2009

development of zircon, ilmenite, rutile and related products. These processes could provide significant potential for new business opportunities. Astron has continued its research work on its processes for the cost effective production of titanium metal. In China we are in the process of completing environmental approval applications for a plant for the manufacture of titanium dioxide (Ti02). The TiO2 pigment project will be first in China to use overseas technologies. We are also planning to construct a mineral separation plant (MSP) to separate heavy minerals concentrate into its titanium, zircon and other materials. Some components for the MSP have been purchased.

Given that most of the group’s infrastructure was sold to Imerys, Astron’s internal systems, controls and reporting systems in both Australia and China needed to be re-established. In addition to replacing the previous systems, enhancements have been made, including improving internal control processes, weekly treasury reporting and other reporting and governance procedures.

Significant Changes in State of Affairs

There have been no significant changes in the Group's state of affairs during the financial year.

Matter Subsequent to the end of the Financial Year

There are no matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

Likely Developments

Other than information disclosed elsewhere in this annual report, information on likely developments in the operations of the Group and the expected results of those operations in future financial years has not been included in this directors' report because the directors believe, on reasonable grounds, that to include such information would be likely to result in unreasonable prejudice to the Group.

Environmental Regulation

The Group's principal operations are in China and are regulated by various laws in China. The Group continues to work closely with the local authorities to ensure high standards are maintained. In relation to the proposed manufacturing processes in China, there were no exceptions noted by regular local government environmental testing and supervision. Further the development projects will be implemented with best practice standards carefully monitored by the local authorities.

The Group complied with all environmental regulations in relation to mining operations and there were no reportable environmental matters from the Australian operations.

To the best of the directors' knowledge, the Group has adequate systems in place to ensure compliance with the requirements of all environmental legislation described above and are not aware of any breach of those requirements during the financial year and up to the date of the directors' report.

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

Director Information

Mr. Gerard King

Chairman (Non-executive)

Qualifications

LLB

Experience

Board Member since 5 November 1985
Former partner of law firm Phillips Fox and has had over 30 years of experience in corporate and business advising including acting as a Director of a number of Australian Public Companies

Interest in Shares and Options 274,519 Ordinary shares

Special Responsibilities

Mr. King is a member of the Audit & Risk Committee and Remuneration & Nomination Committee

Directorships held in other listed Mr. King is a Director of Green Power Energy Limited (appointed 4 entities November 1985) which was listed on 5 March 2008.

Mr. Alexander Brown

Managing Director (Executive)

Qualifications

B.AgSc

Experience

Board Member since 4 February 1988
Wide commercial experience of over 30 years in construction, mining and exploration including developing the Horseshoe Lights Gold Mine at Meekathara W.A., expanding the Gunnedah Coal Mine, in NSW, and successfully drilling for oil and gas in Thailand and USA.
He also started with others a major advanced plastics pipe company Europipe Sdn Bhd in Malaysia in 1987 which manufactured and distributed its products throughout Asia and Australasia. In the last 18 years his activities have focused in building the Astron business in China.

Interest in Shares and Options 44,079,651 Ordinary shares

Special Responsibilities

Mr. Brown is the Managing Director and responsible for the operations of the group

Directorships held in other listed Mr. Brown is not currently a Director of another listed company. entities

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

Mr. Robert Flew

(Non-executive)

Qualifications

B Ec (Hons)

Experience

Board Member since 19 March 2004
Mr. Flew brings to Astron in excess of 37 years experience in the resources sector. Mr. Flew's experience includes holding the positions of Company Secretary and Vice President Investor Relations of BHP, the Group General Manager of Corporate Development BHP Copper, Group General Manager of International BHP and Group General Manager of BHP's coal business in Queensland.
He is widely experienced in global issues, in particular the requirements of customers, partners, governments, industry associations, corporate governance and shareholders. He has had hands on experience in working with large multinational projects in the areas of finance, general corporate administration, governance and shareholder interaction.

Interest in Shares and options 170,574 Ordinary shares

Special Responsibilities

Mr. Flew is a member of the Audit & Risk Committee and Remuneration & Nomination Committee

Directorships held in other listed Mr. Flew is not currently a Director of another listed company. entities

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

Mr. Ronald McCullough

(Non-executive)

Qualifications

M.B.A., B.E. (Hons), FAustIMM

Experience

Appointed to the Board 21 August 2006
Ronald Hugh McCullough is an Honours graduate in Engineering from the University of Western Australia. He also completed a Master of Business Administration at UWA.
Subsequently, Ron has been involved in civil engineering design, and the construction of various major engineering works in Western Australia, including water supply dams, major water reticulation and suburban infrastructure projects.
Ron has extensive mining experience, including bauxite and coal mining. Ron has investigated the development of a private power station and the exploitation of coal bed methane deposits in the Gunnedah basin on NSW. While involved with the Maitland Main Collieries, which held an authorisation to develop a large coal deposit at Glennies Creek, near Singleton, in the Hunter Valley, NSW Ron managed all necessary environmental impact studies, authority compliance requirements, mine construction and operation feasibility studies and then obtained a mining lease for the deposit.
Ron became involved in the sand mining industry in Western Australia with the development, in 1994, and management until 2005 of a silica sand mining and exporting operation at Albany in Western Australia, on behalf of Japanese corporations.

Interest in Shares and Options 4,000 Ordinary shares

Special Responsibilities

Mr. McCullough is a member of the Audit & Risk Committee and Remuneration & Nomination Committee

Directorships held in other listed Mr. McCullough is a Director of Green Power Energy Limited entities (appointed 26 October 1994) which was listed on 5 March 2008.

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

Mdm Kang Rong

(Executive)

Qualifications

B.E.(Chem)

Experience

Appointed to the Board 21 August 2006
Mdm Kang Rong worked as a Chemical Production Engineer at Shenyang Chemical Company (a major Chinese company based in Shenyang (Liaoning Province). She then moved to Hainan Island China and worked in sales and administration for the Japanese trading co. Nissei, Ltd.
She joined Astron in 1995 as marketing manager of Shenyang Astron Mining Industry. Since then she has overseen Astron’s China operations and global sales for over 12 years and has been largely responsible for the growth and development of the Company.

Interest in Shares and Options 2,000,000 Ordinary Shares

Special Responsibilities

As Vice General Manager she has been in charge of all Astron’s China operations and global sales for over 12 years.

Directorships held in other listed Mdm Kang Rong is not currently a Director of another listed entities company.

Mr. Matthew Suttling

Company Secretary

Qualifications B.Ec CA

Experience - Appointed Company Secretary of Astron Limited on 10 May 2004.
He is a Chartered Accountant qualifying in 1996. His experience is broad based including clients ranging from multinationals to listed public companies, audit and other business financial and tax services. He is currently in Public Practice and Company Secretary of Green Power Energy Limited.

Meetings of Directors

During the financial year, six meetings of directors (excluding committees of directors) were held. Attendances by each director at directors’ meeting, audit and risk committee and remuneration and nominating committee meetings during the year were as follows:

Directors' Meetings	Directors' Meetings	Committee Meetings	Committee Meetings	Committee Meetings	Committee Meetings
		Audit & Risk Committee		Remuneration & Nomination Committee
Number eligible to attend	Number attended	Number eligible to attend	Number attended	Number eligible to attend	Number attended
6 6 6 6 6	6 6 6 6 6	2 - 2 2 -	2 - 2 2 -	2 - 2 2 -	2 - 2 2 -

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

Options

No options over issued shares or interests in the Group or a controlled entity were granted during or since the end of the financial year and there were no options outstanding at the date of this report.

Remuneration Report-Audited

1. Policy for determining the nature and amount of Key Management Personnel remuneration

The remuneration policy of the Group has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering potential long term incentives based on key performance areas affecting the Group's financial results. The board of Astron Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the Group, as well as create goal congruence between directors, executives and shareholders.

The board's policy for determining the nature and amount or remuneration for the board members and senior executives of the Group is as follows:

The remuneration policy for the executive directors and other senior executives was developed by the remuneration committee and approved by the board after seeking professional advice from an independent external consultant.
All executives receive a base salary (which is based on factors such as length of service and experience), other statutory benefits and potential performance incentives.
The remuneration committee reviews executive packages annually by reference to the Group’s performance, executive performance and comparable information from industry sectors.

The performance of executives is measured against criteria agreed with each executive and is based predominantly on the forecast growth of the Group’s profits and shareholders’ value. All bonuses and incentives are linked to the performance of the individual and are discretionary. The objective is designed to attract the highest calibre of executives and reward them for performance that results in long term growth in shareholder wealth.

At the discretion of the Committee from time to time shares are issued to executives to reflect their achievements. There are presently no option based schemes in place.

Where applicable executive directors and executives receive a superannuation guarantee contribution required by the government, which is currently 9%, and do not receive any other retirement benefits. Some individuals, however, have chosen to sacrifice part of their salary to increase payments towards superannuation.

Shares given to directors and executives are valued at the market price of those shares.

The board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The remuneration committee determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not linked to the performance of the Group. However, to align director's interests with shareholder interests, the directors are encouraged to hold shares in the Group.

Performance based remuneration

As part of each executive director and executives remuneration package there is a discretionary bonus element. The intention of this program is to facilitate goal congruence between directors/executives with that of the business and shareholders.

In determining whether or not each executive director and executive's bonus is due, the remuneration committee bases the assessment on audited figures and independent reports where appropriate.

ABN 97 000 285 272

Astron Limited

Directors' Report

30 June 2009

The remuneration committee reserves the right to award bonuses where performance expectation has prima facie not been met but it is considered in the interests of the Group to continue to reward that individual.

Bonuses are set as a percentage of base remuneration ranging from 0% to 100% of base salary

package.

Company performance, shareholder wealth and directors and executives remuneration

The remuneration policy has been tailored to increase goal congruence between shareholders and directors and executives. This has been achieved by awarding discretionary bonuses to encourage the alignment of personal and shareholder interests. The Group believes this policy to have been effective in increasing shareholder wealth and the Group's balance sheet over the past five years.

The following table shows the gross revenue, profits and dividends for the last five years for the listed entity, as well as the share price at the end of the respective financial years. The successful sale of the Zircon group in 2008 allowed the Directors to pass back to shareholders through ongoing dividends. The board is of the opinion that these results clearly demonstrate the statements made above.

Revenue Net Profit/(Loss) Share Price at Year-end Dividends Paid	2005 '000s 2006 '000s 2007 '000s 2008 '000s 2009 '000s
	140,675 151,946 184,019 90,818 10,657 26,052 20,589 11,432 111,887 (2,498) 3.00 3.10 2.63 2.05 1.69 0 5,809 5,832 12,087 6,490

All share buy backs were on-market buy backs at market share prices. No premium was returned to shareholders on the shares bought back.

2. Key Management Personnel

The following persons were key management personnel of Astron Limited Group during the financial year:

	Position Held
Mr Gerard King	Chairman-Non-executive
Mr Alexander Brown	Managing Director
Mr Robert Flew	Director- Non-executive
Mr Ronald McCullough	Director- Non-executive
Mdm Kang Rong	Executive Director- Vice General Manager China
Mr Mark Nielsen	Finance Director- Appointed 23 February 2009
Mr Wang Xuedong	Vice President-China Operations- Appointed 1 April 2009
Mr Jerry Ng	Group Financial Controller- Appointed 22 November 2008
Mr Boris Matveev	Exploration Manager- Appointed 25 February 2009
Mr Simon Peters	Project Manager
Ms Emma Vogel	DMS-Development Manager- Mining
Mr Song Hongxing	President-China Operations - Resigned 1 July 2009
Mr Alan Guy	Vice General Manage - Resigned 30 September 2008

Save for Mr Matthew Suttling who is the Company Secretary, there are no additional persons not disclosed above that are among the five highest remunerated Group executives.

ABN 97 000 285 272

Astron Limited

Directors' Report

30 June 2009

Year ended 30 June 2009

Year ended 30 June 2009
			Post
			employment
	Short term benefits		benefits
	Cash, salary &	Non-cash	Super-
	commissions	Benefits	annuation	Total
	$	$	$	$
Directors
Mr Gerard King	120,000	-	-	120,000
Mr Alexander Brown	350,000	-	-	350,000
Mr Robert Flew	55,044	-	4,956	60,000
Mr Ronald McCullough	106,000	-	-	106,000
Mdm Kang Rong	250,000	-	-	250,000
Key management personnel
Group executives
Mr Mark Nielsen*	45,798	-	17,611	63,409
Mr Jerry Ng*	46,276	1,196	31,700	79,172
Mr Boris Matveev*	42,840	-	4,081	46,921
Mr Simon Peters	122,936	-	11,064	134,000
Ms Emma Vogel	122,936	-	11,064	134,000
Mr Song Hongxing	298,935	5,979	-	304,914
Mr Wang Xuedong	49,823	797	1,214	51,834
Mr Alan Guy	29,216	-	-	29,216
Other executives
Mr Matthew Suttling*	84,000	-	-	84,000
*Denotes company executives	1,723,804	7,972	81,690	1,813,466
There are no group or company executives other than set out			above

No other payments including share based payments were paid to the above employees during the year

None of the above payments were performance related

ABN 97 000 285 272

Astron Limited

Directors' Report

30 June 2009

Year ended 30 June 2008

Directors Mr Gerard King Mr Alexander Brown Mr Robert Flew Mr Ronald McCullough Mdm Kang Rong Key management personnel Group executives Mr Alan Guy Mr Song Hongxing(1) Mr Kim Hodierne(2) Mr Arno Kruger(3) Mr Robert Willerton(4) Mr Desmond Tan(5) Ms Emma Vogel Mr Simon Peters Other executives Mr Matthew Suttling Denotes company executive	Short-term benefits Post employment benefits Share based payments
	Cash, salary & commissions $ Cash Bonus $ Non-cash Benefits $ Super- annuation $ Equity $ Total $
	75,000 75,000 - - - 150,000 350,000 600,000 - - - 950,000 45,872 45,872 - 8,256 - 100,000 96,000 50,000 - - - 146,000 250,000 500,000 - - - 750,000 164,017 - 11,809 - - 175,826 156,929 - - - - 156,929 107,419 - - - 70,500 177,919 111,149 - - 9,139 - 120,288 80,519 - 7,686 - 70,500 158,705 52,364 - 1,959 - - 54,323 113,534 - - 15,218 16,500 145,252 113,534 - - 15,218 16,500 145,252 126,000 - - - - 126,000
	1,842,337 1,270,872 21,454 47,831 174,000 3,356,494

No share options were issued during the year

None of the above payments were performance related

Note reference:

Appointed 21 April 2008
Transferred to Imerys 4 February 2008 3. Resigned 29 February 2008
Resigned 31 March 2008
Resigned 31 December 2007

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

3. Cash Bonuses

No bonuses were paid during the year ended 30 June 2009.

During the year ended 30 June 2008 cash bonuses were paid after consideration by the remuneration committee to these executives. The Directors bonuses were brought to account on 30 June 2008 as 100% of base remuneration (except Alex Brown and Kang Rong who were awarded additional discretionary bonuses reflecting their efforts in completing the sale of the China Zircon Group to the Imerys Group) and reflected the committee's satisfaction of the overall performance of the respective executives and that of the Group.

No performance or service criteria were attached to this cash bonus.

4. Share Based Payment Bonuses

No share equity bonuses were paid during the year ended 30 June 2009.

During the year ended 30 June 2008 share equity bonuses were paid, after consideration by the remuneration committee, to certain executives. The bonuses reflected the committee's satisfaction of the overall performance of the respective executives and that of the Group. The bonuses therefore vested 100% during the financial year ended 30 June 2008. No performance or service criteria were attached to this bonus.

No options were issued during the year.

5. Service Contracts

Service contracts (or letters of engagement) have been entered into by the Group, or are in the process of being entered into, with all key management personnel and executives, describing the components and amounts of remuneration applicable on their initial appointment, including terms. These contracts do not fix the amount of remuneration increases from year to year. Remuneration levels are reviewed generally each year by the Remuneration Committee to align with changes in job responsibilities and market salary expectations. The Managing Director, Alexander Brown who has a 3 year service contract, expiring May 2012, the period of notice required to terminate this contract is twelve months. Other than repayment of loans and management fees there is no further payment required to terminate this contract.

All other key management personnel have ongoing contracts with a notice period of three months. There are no non-standard termination clauses in any of these contracts.

Employment contract arrangements were reviewed in the 2007 year by external consultants for consistency and appropriateness to the Group's needs. The Remuneration Committee considered that this was appropriate for 2009. A review will be undertaken during the 2010 financial year.

End of audited remuneration report

Indemnifying Officers or Auditors

Insurance premiums paid for directors

During the year Astron Limited paid a premium of $38,324 (2008: $38,726) in respect of a contract insuring directors, secretaries and executive officers of the company and its controlled entities against a liability incurred as director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability.

The company has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer or auditor of the company or any of its controlled entities against a liability incurred as such an officer or auditor.

Non-audit services

During the financial year, the following fees for non-audit services were paid or payable to the auditor, BDO Kendalls, or their related practices:

Astron Limited

ABN 97 000 285 272

Directors' Report

30 June 2009

Audit related services Due diligence assistance Other Services - Taxation services - Taxation advice relating to China Zircon group sale -Otherservices	2009 $ 2008 $
	13,739 77,195 117,813 17,400 29,706 - 368 1,040

The directors are satisfied that the provision of non-audit services, during the year, by the auditor (or by another person or firm on behalf of the auditor), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

On the advice of the audit committee, the directors are satisfied that the provision of non-audit services by the auditor, as set out above, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed by the audit committee to ensure that they do not impact the integrity and objectivity of the auditor; and
none of the non-audit services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

Auditors’ Independence Declaration

The lead auditors’ independence declaration for the year ended 30 June 2009 has been received and can be found on page 13 of the financial report.

Proceedings on Behalf of Company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party, for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of the Corporations Act 2001.

Signed in accordance with a resolution of Directors:

Chairman: Mr. Gerard King

Dated this 25th day of September 2009

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DECLARATION OF INDEPENDENCE BY JEFF ABELA TO THE DIRECTORS OF ASTRON LIMITED

As lead auditor of Astron Limited for the year ended 30 June 2009, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Astron Limited and the entities it controlled during the period.

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Jeff Abela Director

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BDO Kendalls Audit & Assurance (NSW-VIC) Pty Ltd

Dated Sydney this 25[th] day of September 2009

Astron Limited

ABN 97 000 285 272

Income Statements

For The Year Ended 30 June 2009

Sales revenue Cost of sales Gross profit Other revenue Other income Distribution expenses Marketing expenses Occupancy expenses Administrative expenses Finance costs Costs associated to Gambia investment Write down of stock Impairment of capitalised development expenditure Reversal/(Impairment) of subsidiary investment Impairment of available-for-sale investments Impairment of Gambian equity investment Impairment of Senegal development expenditure Other expenses Share of net loss of associates Share of net losses of joint ventures (Loss)/Profit before income tax Income tax expense (Loss)/Profit from continuing operations Profit from discontinued operations (Loss)/Profit attributable to members Earnings Per Share: Overall operations: Basic earnings (cents per share) Diluted earnings (cents per share) Continuing operations: Basic earnings (cents per share) Diluted earnings (cents per share) Discontinued operations: Basic earnings (cents per share) Diluted earnings (cents per share) Dividends pershare (cents)	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	5 3,777,286 10,627,126 - - (3,412,730) (10,008,930) - -
	364,556 618,196 - -
	5 6,879,891 5,897,298 6,719,101 22,468,178 5 76,102 10,093,358 1,533,708 10,084,380 (694,145) (367,988) - - (65,082) (36,988) (19,302) - (227,222) (4,426) (15,377) - (5,989,244) (4,301,905) (3,388,414) (2,313,117) - (260,332) - (260,332) 14(d) (1,851,719) - (1,434,402) - (962,036) - - - (583,683) (6,848,818) (29,216) (4,559,680) - - 1,902,623 (10,000,000) (812,350) - (812,350) - - (6,041,978) - - (539,787) - - - (217,792) (286,795) - (1,425,912) 14(b) - (296,779) - - (52,660) (9,028) - -
	(4,675,171) (1,846,185) 4,456,371 13,993,517
	7 (2,882,700) (729,330) (958,377) (729,330)
	(7,557,871) (2,575,515) 3,497,994 13,264,187
	8 5,059,069 114,462,802 5,620,841 140,059,503
	(2,498,802) 111,887,287 9,118,835 153,323,690
	9 (3.86) 177.97 - - (3.86) 177.97 - - (11.67) (4.10) - - (11.67) (4.10) - - 7.81 182.07 - - 7.81 182.07 - - 10.00 20.00 - -

The accompanying notes form part of the financial statements

Astron Limited

ABN 97 000 285 272

Balance Sheets

As At 30 June 2009

ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Available-for-sale financial assets Total current assets Non-current assets Other financial assets Property, plant and equipment Deferred tax assets Intangible assets Land use rights Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Trade and other payables Current tax liabilities Provisions Total current liabilities Non-current liabilities Deferred tax liabilities Long-term provisions Total non-current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves Retained earnings TOTAL EQUITY	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	11 168,816,405 185,656,025 158,867,679 179,041,872 12 2,463,960 8,423,480 7,641,653 7,508,542 13 2,884,393 3,357,587 - - 16 1,099,736 - 1,099,736 -
	175,264,494 197,437,092 167,609,068 186,550,414
	17 - - 45,766,924 37,249,574 19 8,998,671 6,639,252 1,620 - 24(a) - - 623,150 - 20 20,471,305 19,898,255 - - 21 10,770,472 9,009,128 - -
	40,240,448 35,546,635 46,391,694 37,249,574
	215,504,942 232,983,727 214,000,762 223,799,988
	22 1,664,573 6,868,781 7,139,215 6,606,217 24(a) 920,986 - 920,986 - 23 100,000 14,154,348 100,000 14,154,348
	2,685,559 21,023,129 8,160,201 20,760,565
	24(a) 1,613,295 - - - 23 40,000 40,000 - -
	1,653,295 40,000 - -
	4,338,854 21,063,129 8,160,201 20,760,565
	211,166,088 211,920,598 205,840,561 203,039,423
	25 39,376,051 39,203,511 39,376,051 39,203,511 26 6,931,567 86,436 - - 164,858,470 172,630,651 166,464,510 163,835,912
	211,166,088 211,920,598 205,840,561 203,039,423

The accompanying notes form part of the financial statements

ABN 97 000 285 272

Astron Limited

Statement Of Changes In Equity

For The Year Ended 30 June 2009

			2009 Consolidated	2009 Consolidated
				Available-for
			Foreign	-sale
			Currency	financial	Equity
	Ordinary	Retained	Translation	Assets	Account
	Shares	Earnings	Reserve	Reserve	Reserve	Total
	$	$	$	$	$	$
Equity as at beginning
of period	39,203,511	172,630,651	(1,130,423)	-	1,216,859	211,920,598
Exchange differences
on translation of foreign
operations	-	-	8,061,990	-	-	8,061,990
Share of contributions
by other Joint Venture
party in investments
accounted for using the
equity method	-	1,216,859	-	-	(1,216,859)	-
Total income and
expense for the year
recognised directly in
equity	-	1,216,859	8,061,990	-	(1,216,859)	8,061,990
Loss for the year	-	(2,498,802)	-	-	-	(2,498,802)
Total income and
expense for the year	-	(2,498,802)	-	-	-	(2,498,802)
Shares issued during
the year	793,765	-	-	-	-	793,765
Transaction costs	(3,635)	-	-	-	-	(3,635)
Shares bought back
during the year	(617,590)	-	-	-	-	(617,590)
Dividends paid or
provided for	-	(6,490,238)	-	-	-	(6,490,238)
Equity as at 30 June
2009	39,376,051	164,858,470	6,931,567	-	-	211,166,088

The accompanying notes form part of the financial statements

Astron Limited

ABN 97 000 285 272

Statement Of Changes In Equity

For The Year Ended 30 June 2009

			2008 Consolidated	2008 Consolidated
			Foreign	Available-for-s
			Currency	ale financial	Equity
	Ordinary	Retained	Translation	Assets	Account
	Shares	Earnings	Reserve	Reserve	Reserve	Total
	$	$	$	$	$	$
Equity as at beginning
of period	29,619,643	72,830,286	(7,421,185)	1,701,770	1,216,859	97,947,373
Exchange differences
on translation of foreign
operations	-	-	619,933	-	-	619,933
Exchange differences
recycled on sale of
China business	-	-	5,670,829	-	-	5,670,829
Gains on disposal of
available-for-sale
financial assets
credited to Income
Statement	-	-	-	(1,701,770)	-	(1,701,770)
Total income and
expense for the year
recognised directly in
equity	-	-	6,290,762	(1,701,770)	-	4,588,992
Profit for the year	-	111,887,287	-	-	-	111,887,287
Total income and
expense for the year	-	111,887,287	-	-	-	111,887,287
Shares issued during
the year	10,082,565	-	-	-	-	10,082,565
Transaction costs	(19,456)	-	-	-	-	(19,456)
Shares bought back
during the year	(479,241)	-	-	-	-	(479,241)
Dividends paid or
provided for	-	(12,086,922)	-	-	-	(12,086,922)
Equity as at 30 June
2008	39,203,511	172,630,651	(1,130,423)	-	1,216,859	211,920,598

The accompanying notes form part of the financial statements

Astron Limited

ABN 97 000 285 272

Statement Of Changes In Equity

For The Year Ended 30 June 2009

Equity as at beginning of period Profit for the year Shares issued during the year Transaction costs Shares bought back during the year Dividends paid or provided for Equity at 30 June 2009	2009 Parent
	Ordinary Shares $ Retained Earnings $ Available-for- sale financial Assets Reserve $ Total $
	39,203,511 163,835,912 - 203,039,423 - 9,118,835 - 9,118,835 793,765 - - 793,765 (3,635) - - (3,635) (617,590) - - (617,590) - (6,490,237) - (6,490,237)
	39,376,051 166,464,510 - 205,840,561
Equity as at beginning of period Net loss of available-for-sale financial assets Total income and expense for the year recognised directly in equity Profit for the year Total income and expense for the year Shares issued during the year Transaction costs Shares bought back during the year Dividends paid or provided for Equity at 30 June2008	2008 Parent
	Ordinary Shares $ Retained Earnings $ Available-for- sale financial Assets Reserve $ Total $
	29,619,643 22,599,144 1,701,770 53,920,557 - - (1,701,770) (1,701,770)
	- - (1,701,770) (1,701,770) - 153,323,690 - 153,323,690
	- 153,323,690 - 153,323,690 10,082,565 - - 10,082,565 (19,456) - - (19,456) (479,241) - - (479,241) - (12,086,922) - (12,086,922)
	39,203,511 163,835,912 - 203,039,423

The accompanying notes form part of the financial statements

Astron Limited

ABN 97 000 285 272

Cash Flow Statements

For The Year Ended 30 June 2009

		Consolidated	Consolidated	Parent	Parent
		2009	2008	2009	2008
	Note	$	$	$	$
Cash flows from operating activities:
Receipts from customers		10,765,773	92,754,254	559,763	-
Payments to suppliers and employees		(16,436,469)	(77,632,471)	(7,367,277)	(1,345,905)
Dividends received		-	-	-	3,449,692
Interest received		6,840,857	5,917,372	6,719,101	5,871,726
Interest paid		-	(825,647)	-	-
Proceeds from hedge gain		-	7,159,906	-	7,159,906
Income taxes paid		(348,235)	(97,664)	(348,235)	-
Other income		62,476	-	-	-
Net cash provided by/(used in)
operating activities	31(a)	884,402	27,275,750	(436,648)	15,135,419
Cash flows from investing activities:
Proceeds from sale of available-for-sale
investment		-	6,302,498	-	6,302,498
(Payments)/receipts arising from disposal
of subsidiaries		(8,385,308)	175,768,439	(8,385,308)	182,764,482
Costs - disposal of subsidiaries		-	(7,354,253)	-	(7,354,253)
Acquisition of property, plant and
equipment	19	(411,901)	(14,966,943)	(1,681)	-
Construction in works in progress	19	(1,133,964)	-	-	-
Investment in subsidiaries	31(e)	-	-	(6,614,729)	(12,500,000)
Loans to Joint Venture entities		-	(46,027)	-	-
Payment for purchase of equity securities		(1,912,086)	-	(1,912,086)	-
Acquisition of subsidiary		(50,000)	-	-	-
Deferred exploration, evaluation
expenditure and development costs	20	(1,605,742)	(2,127,031)	(29,216)	(124,134)
Net cash (used in) /provided by
investing activities		(13,499,001)	157,576,683	(16,943,020)	169,088,593
Cash flows from financing activities:
Payment for share buy-back		(544,040)	(498,696)	(544,040)	(498,696)
(Repayments)/Proceeds of borrowings		-	(6,092,512)	4,768,596	(2,724,539)
Dividends paid to company shareholders		(5,700,107)	(2,265,351)	(5,700,107)	(2,265,351)
Net cash (used in)/provided by
financing activities		(6,244,147)	(8,856,559)	(1,475,551)	(5,488,586)
Net (decrease)/increase in cash held		(18,858,746)	175,995,874	(18,855,219)	178,735,426
Cash and cash equivalents at beginning
of year		185,656,025	9,784,235	179,041,872	306,446
Effect of exchange rates on cash held in
foreign currencies - beginning of the year		2,019,126	(124,084)	(1,318,974)	-
Cash and cash equivalents at end of
financial year	31(b)	168,816,405	185,656,025	158,867,679	179,041,872

The accompanying notes form part of the financial statements

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

1. Corporate Information

The financial report of Astron Limited for the year ended 30 June 2009 was authorised for issue in accordance with a resolution of the directors on 25 September 2009 and covers Astron Limited as an individual entity as well as the consolidated entity consisting of Astron Limited and its subsidiaries as required by the Corporations Act 2001.

The financial report is presented in Australian dollars.

Astron Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Stock Exchange.

2. Summary of Significant Accounting Policies

(a) Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian equivalents to International Financial Reporting Standards ('AIFRS') and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Compliance with AIFRS ensures that the consolidated financial statements and notes complies with International Financial Reporting Standards (IFRS).

The financial report has also been prepared on a historical cost basis, except for investment properties, land and buildings, plant and equipment deemed to be at fair value on transition to AIFRS, derivatives, available-for-sale financial assets and held for trading investments that have been measured at fair value. The carrying values of recognised assets and liabilities that are hedged are adjusted to record changes in the fair value attributable to the risks that are being hedged. Non-current assets and disposal groups held for sale are measured at the lower of carrying amounts and fair value less costs to sell.

The following significant accounting policies have been adopted in the preparation and presentation

of the financial report.

(b) Basis of Consolidation

Subsidiaries

The consolidated financial statements comprise the financial statements of Astron Limited and its subsidiaries at 30 June each year ("the Group"). Subsidiaries are 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. Potential voting rights that are currently exercisable or convertible are considered when assessing control. Consolidated financial statements include all subsidiaries from the date that control commences until the date that control ceases. The financial statements of subsidiaries are prepared for the same reporting period as the parent, using consistent accounting policies.

All intercompany balances and transactions, including unrealised profits arising from intragroup transactions have been eliminated. Unrealised losses are also eliminated unless costs cannot be recovered.

Minority interests in the results and equity of subsidiaries are shown separately in the consolidated

income statement and balance sheet respectively.

Subsidiaries are accounted for in the parent entity financial statements at cost. A list of subsidiary entities is contained in Note 18 to the financial statements. All subsidiaries entities have a June financial year end and are accounted for in the Parent entity financial statements at cost.

Associates

Associates are entities over which the Group has significant influence but not control. Associates are accounted for in the parent entity financial statements at cost and the consolidated financial statements using the equity method of accounting. Under the equity method of accounting, the

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

consolidated income statement reflects the Group's share of associates' post acquisition profits or losses and the consolidated balance sheet reflects the Group's share of post acquisition movements in reserves or equity. The cumulative post acquisition movements are adjusted against the carrying amount of the investment. Dividends received from associates are not recognised in the parent entity's income statement but rather reduce the carrying amount of the investment in the consolidated financial statements.

When the Group's share of post acquisition losses in an associate exceeds its interest in the associate (including any unsecured receivables), the Group does not recognise further losses unless it has obligations to, or has made payments, on behalf of the associate.

The financial statements of the associates are used to apply the equity method. The reporting dates of the associates and the parent are identical and both use consistent accounting policies.

Joint venture operations

The proportionate share of the Group's interests in the assets, liabilities, income and expenses of joint venture operations have been incorporated in the financial statements under the appropriate headings. Details of joint venture operations are set out in Note 15.

Joint venture entities

Interests in joint venture entities are accounted for in the consolidated financial statements using the equity method. Under the equity method, the share of profits or losses of the entities are recognised in the consolidated income statement and the share of movements in reserves are recognised in the consolidated balance sheet. Details of joint venture entities are set out in Note 14.

(c) Foreign Currency Translation

The functional and presentation currency of Astron Limited and its Australian subsidiaries is Australian dollars (A$).

Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Foreign exchange gains and losses resulting from settling foreign currency transactions, as well as from restating foreign currency denominated monetary assets and liabilities, are recognised in the income statement, except when they are deferred in equity as qualifying cash flow hedges or where they relate to differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.

Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when fair value was determined.

The functional currency of the overseas subsidiaries is primarily Chinese Renminbi. At reporting date, the assets and liabilities of these overseas subsidiaries are translated into the presentation currency of Astron Limited at the closing rate at balance sheet date and income and expenses are translated at the weighted average exchange rates for the year. All resulting exchange differences are recognised as a separate component of equity (foreign currency translation reserve). On disposal of a foreign entity, the cumulative exchange differences recognised in foreign currency translation reserves relating to that particular foreign operation is recognised in the income statement.

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.

(d) Revenue Recognition

Revenue is recognised at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and duties and taxes paid. The following specific recognition criteria must also be met before revenue is recognised:

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Sale of goods

Revenue from the sale of products is recognised when the significant risks and rewards of ownership have passed to the buyer i.e. when control of the goods is passed to the buyer.

Rendering of services

Revenue from the rendering of services such as management fees are recognised upon the rendering of the service to the customers in accordance with the agreements.

Interest

Revenue is recognised as interest accrues using the effective interest method. The effective interest method uses the effective interest rate which is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial asset.

Rental income

Rental income is accounted for on a straight line basis over the lease term. Contingent rentals are recognised as income in the periods when they are earned.

(e) Income Tax

The income tax expense 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 base of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. Exceptions are made for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit.

Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, associates and interests in joint ventures 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.

Astron Limited and its wholly owned Australian subsidiaries have implemented the tax consolidation legislation for the whole of the financial year. Astron Limited is the head entity in the tax consolidated group. The stand alone taxpayer within a group approach has been used to allocate current income tax expense and deferred tax balances to wholly owned subsidiaries that form part of the tax consolidated group. Astron Limited has assumed all the current tax liabilities and the deferred tax assets arising from unused tax losses for the tax consolidated group via intercompany receivables and payables because a tax funding arrangement has been in place for the whole financial year. The amounts receivable/payable under tax funding arrangements are due upon notification by the head entity, which is issued soon after the end of each financial year. Interim funding notices may also be issued by the head entity to its wholly owned subsidiaries in order for the head entity to be able to pay tax installments. These amounts are recognised as current intercompany receivables or payables.

(f) Impairment of Assets

At each reporting date the Group assesses whether there is any indication that individual assets are impaired. Where impairment indicators exist, recoverable amount is determined and impairment losses are recognised in the income statement where the asset's carrying value exceeds its

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

recoverable amount. Recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purpose of assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for the cash generating unit to which the asset belongs.

(g) Cash and Cash Equivalents

For the purposes of the Cash Flow Statement, cash and cash equivalents includes cash on hand and at bank, deposits held at call with financial institutions, other short term, highly liquid investments with 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.

(h) Trade Receivables

Trade receivables are recognised at original invoice amounts less an allowance for uncollectible amounts and have repayment terms between 0 and 90 days. Collectability of trade receivables is assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance is made for doubtful debts where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms. Objective evidence of impairment include financial difficulties of the debtor, default payments or debts more than 180 days overdue. On confirmation that the trade receivable will not be collectible the gross carrying value of the asset is written off against the associated provision.

From time to time, the Group elects to renegotiate the terms of trade receivables due from customers with which it has previously had a good trading history. Such renegotiations will lead to changes in the timing of payments rather than changes to the amounts owed and are not, in the view of the directors, sufficient to require the de-recognition of the original instrument.

Receivables from related parties are recognised and carried at the nominal amount due.

(i) Inventories

Raw materials, works in progress and finished goods

Inventories are stated at the lower of cost and net realisable value. Cost comprises all direct materials, direct labour and an appropriate portion of variable and fixed overheads. Fixed overheads are allocated on the basis of normal operating capacity. Costs are assigned to inventories using the first in first out basis. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated selling cost of completion and selling expenses.

(j) Non-current Assets Classified as Held For Sale

Non-current assets classified as held for sale are those assets whose carrying amounts will be recovered principally through a sale transaction rather than through continuing use. These assets are stated at the lower of their carrying amount and fair value less costs to sell and are not depreciated or amortised. Interest expense continues to be recognised on liabilities of a disposal group classified as held for sale.

An impairment loss is recognised for any initial or subsequent write down of the asset to fair value less costs to sell. A gain is recognised for subsequent increases in fair value less costs to sell of an asset but not exceeding any cumulative impairment losses previously recognised.

A discontinued operation is a component of the group that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical operations, is part of a single co-ordinated 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.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

(k) Investments and Other Financial Assets

All investments and other financial assets are initially stated at cost, being the fair value of consideration given plus acquisition costs. Purchases and sales of investments are recognised on trade date which is the date on which the Group commits to purchase or sell the asset. Accounting policies for each category of investments and other financial assets subsequent to initial recognition are set out below.

Available-for-sale financial assets comprise investments in listed entities and any non derivatives that are not classified as any other category, and are classified as current assets. After initial recognition, these investments are measured at fair value with gains or losses recognised in equity reserves. Where losses have been recognised in equity and there is objective evidence that the asset is impaired, the cumulative loss, being the difference between the acquisition cost and current fair value less any impairment loss previously recognised in the income statement, is removed from equity and recognised in the income statement.

The fair value of quoted investments are determined by reference to Stock Exchange quoted market bid prices at the close of business on the balance sheet date. For investments where there is no quoted market price, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net asset base of the investment.

Available-for-sale financial assets

Investments in subsidiaries, associates and joint venture entities are accounted for in the consolidated financial statements as described in note 2(b) and in the parent entity financial statements at cost in accordance with the cost alternative permitted in separate financial statements under AASB 127 Consolidated and Separate Financial Statements.

Loans and receivables

Non-current loans and receivables include loans due from related parties repayable within 366 days of balance sheet date. These are interest bearing using a market rate of interest for a similar instrument with a similar credit rating. In the case of loans and receivables, objective evidence of impairment includes confirmation that the company will not be able to collect all amounts due according to the original terms.

(l) Fair Values

Fair values may be used for financial asset and liability measurement and well as for sundry disclosures.

Fair values for financial instruments traded in active markets are based on quoted market prices at balance sheet date. The quoted market price for financial assets 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 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.

(m) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.

All other plant and equipment is stated at historical cost, including costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, less depreciation and any impairments.

Land is not depreciated. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

Depreciation on other assets is calculated on a straight line basis over the estimated useful life of the asset as follows:

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Class of Asset
Leasehold Buildings	50 years
Freehold Land	Indefinite
Plant andEquipment	3-20Years

The assets' residual value and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Gains and losses on disposals are calculated as the difference between the net disposal proceeds and the asset's carrying amount and are included in the income statement in the year that the item is de-recognised.

The cost of fixed assets constructed within the Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

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.

(n) Leases

Leases where the lessor retains substantially all the risks and rewards of ownership of the net asset are classified as operating leases. Payments made under operating leases (net of incentives received from the lessor) are charged to the income statement on a straight line basis over the period of the lease.

(o) Land Use Rights

The upfront prepayments made for land use rights are expenses in the income statement on a straight line basis over the period of the lease or, when there is impairment, it is recognised immediately. The period of the lease is 50 years.

(p) Intangibles

Research and development costs

Research costs are expensed as incurred. Development expenditure incurred on an individual project is capitalised if the product or service is technically feasible, adequate resources are available to complete the project, it is probable that future economic benefits will be generated and expenditure attributable to the project can be measured reliably. Expenditure capitalised comprises costs of services and direct labour. Other development costs are expensed when they are incurred. The carrying value of development costs is reviewed annually when the asset is not yet available for use, or when events or circumstances indicate that the carrying value may be impaired.

Other intangibles

Expenditure on internally generated assets are expensed as incurred except where they specifically relate to the development of a Mineral Separation Plant. The capitalised expenditure is stated at cost and is considered to have finite useful lives. The useful life is assessed annually to determine whether events or circumstances continue to support the carrying value. The project is in the development phase and hence no amortisation has been brought to account. An amortisation policy has yet to be determined.

(q) Exploration and Evaluation Expenditure

(i) Costs carried forward

Costs arising from exploration and evaluation activities are carried forward provided that the rights to tenure of the area of interest are current and such costs are expected to be recouped through successful development, or by sale, or where exploration and evaluation activities have not, at reporting date, reached a stage to allow a reasonable assessment regarding the existence of economically recoverable reserves. Expenditure incurred is accumulated in respect of each identifiable area of interest.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

(ii) Costs abandoned area

Costs carried forward in respect of an area of interest that is abandoned are written off in the year in which the decision to abandon is made.

(iii) Regular review

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

(iv) Costs of site restoration

Costs of site restoration are to be provided once an obligation presents. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits. Such costs will be determined using estimates of future costs, current legal requirements and technology on a discounted basis.

(r) Trade and Other Payables

Trade and other payables represent liabilities for goods and services provided to the Group prior to the year end and which are unpaid. These amounts are unsecured and have 30 to 90 day payment terms.

Payables to related parties are carried at the principal amount.

(s) Interest Bearing Liabilities

All loans and 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 loans and borrowings using the effective interest method.

All 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.

(t) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in the income statement in the period in which they are incurred.

(u) Provisions

Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that that an outflow of economic resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

(v) Employee Benefit Provisions

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 balance sheet date are recognised in respect of employees' services rendered up to balance sheet date and measured at amounts expected to be paid when the liabilities are settled. Liabilities for non accumulating sick leave are recognised when

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

leave is taken and measured at the actual rates paid or payable. Liabilities for wages and salaries and annual leave are included as part of Other Payables.

Bonus plan

The Group recognises an expense and a liability for bonuses when the entity is contractually obliged to make such payments or where there is past practice that has created a constructive obligation.

Retirement benefit obligations

The Group contributes to employee superannuation funds in accordance with its statutory obligations. Contributions are recognised as expenses as they become payable.

(w) Contributed Equity

Ordinary shares are classified as equity.

Costs directly attributable to the issue of new shares are shown as a deduction from the equity proceeds, net of any income tax benefit. Costs directly attributable to the issue of new shares associated with the acquisition of a business are included as part of the purchase consideration.

(x) Share Based Payments

The Group provides benefits to employees (including directors) of the Group in the form of share based payment transactions, whereby employees render services in exchange for shares ("equity settled transactions"). To date share based payments have been undertaken at the discretion of the Remuneration Committee. For shares issued to employees as remuneration, the market value of the shares issued is recognised as an employee benefits expense with a corresponding increase in equity. There is not an Employee Share Option Plan (ESOP) in operation.

(y) Dividends

Provision is made for dividends declared, and no longer at the discretion of the Group, on or before the end of the financial year but not distributed at balance date.

(z) Segment Reporting

Segment revenues, expenses, assets and liabilities are those that are directly attributable to a segment and the relevant portion that can be allocated to the segment on a reasonable basis. Segment assets include all assets used by a segment and consist primarily of operating cash, receivables, inventories, property, plant and equipment and other intangible assets. Segment liabilities consist primarily of trade and other creditors, employee benefits and provisions. Segment assets and liabilities do not include income taxes.

(aa) Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to members of Astron Limited by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares during the year.

Diluted earnings per share

Earnings used to calculate diluted earnings per share are calculated by adjusting the basic earnings by the after tax effect of dividends and interest associated with dilutive potential ordinary shares. The weighted average number of shares used is adjusted for the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

(bb) Goods and Services Tax (GST)

Revenues, expenses are recognised net of GST except where GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Cash flows are included in the cash flow statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(cc) Change in Accounting Policy

The accounting policies adopted are consistent with those of the previous financial year

(dd) Standards Issued but not yet Effective

A number of Australian accounting standards have been issued or amended and are applicable to the parent and consolidated group but are not yet effective. The new Australian Accounting Standards have not been adopted in the preparation of the financial report at reporting date.

The directors of Astron Limited have assessed the impact that these standards will have on the parent and group 30 June 2010 financial report. The result of this assessment is set out below:

AASB reference	Title of Affected Standard	Application date	Impact on Initial Application
AASB 8 (Issued Feb 2007)	Operating Segments	Financial year ending 30 June 2010	As this is a disclosure standard only, there will be no impact on amounts recognised in the financial statements. However, disclosures required for the operating segments will be significantly different to what is currently reported (business and geographical segment).
AASB 101 (Revised Sep 2007)	Presentation of Financial Statements	Financial year ending 30 June 2010	As this is a disclosure standard only, there will be no impact on amounts recognised in the financial statements. However, there will be various changes to the way the financial statements are presented and various changes to names of individual financial statements.
AASB 2008-7 (issued July 2008)	Amendment to Australian Accounting Standards – Cost of an Investment in a Subsidiary [AASB 1, AASB 118, AASB 121, AASB 127 and AASB 136]	Financial year ending 30 June 2010	Any pre-acquisition dividends received after 1 July 2009 may result in additional impairment charges on investments in subsidiaries. This is because such amounts are currently written off directly against the cost of the investment, whereas in future they will be recognised as revenue which may result in the investment being stated at an amount exceeding recoverable amount.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

AASB 3 (reissued March 2008)	Business Combinations	Where the acquisition date is on or after the beginning of the financial year ending 30 June 2010	As there is no requirement to retrospectively restate comparative amounts for business combinations undertaken before this date, there is unlikely to be any impact on the financial statements when this revised standard is first adopted. However, due to the nature of some of the changes in the revised standard, business combinations that the company should decide to undertake after 1 July 2009 may in future impact negatively on the results of the entity. For example, acquisition costs will have to be expensed instead of being recognised as part of goodwill. Specific changes in respect of step acquisitions or sell downs, should the company decide to undertake any of these in the future, may introduce situations whereby adopting the revised standard may improve profitability. Also, potential deferred tax assets that do not satisfy recognition criteria when a business combination is initially accounted for, but do subsequently qualify for recognition post acquisition date, would be recognised as a credit to the income statement and there would be no consequential write-down of goodwill for a similar amount, provided that the deferred tax assets are recognised outside the initial measurement period of 12 months from acquisition date.

3. Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events based on current trends and economic data, obtained both externally and within the group.

(a) Key estimates: Impairment

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value in use calculations performed in assessing recoverable

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

amounts incorporate a number of key estimates.

Impairment has been recognised in respect of the Group's costs incurred in developing the Senegal project (refer note 20 (e)) and the TiO2 project (note 20 (e)), the impairment to the carrying value of stock (note 13) and the impairment to available-for sale investments in terms of the relevant accounting standards (note 16).

(b) Capitalisation of Exploration and Evaluation Assets

The Group has continued to capitalise expenditure, in terms of AASB 6, incurred on the exploration and evaluation of the Donald Mineral Sands project in Victoria, Australia, This has been done as the technical feasibility and economic viability of extracting the mineral resources is not demonstrable. The Group has assessed that the balances capitalised will be recoverable through the projects successful development (refer note 20 for further details).

(c) Deferred Tax Assets

Deferred tax assets have not been created from capital losses and China revenue losses as the utilisation of these losses is not considered probable at this stage.

(d) Available-for sale Financial Assets

Available-for-sale financial assets have been classified as current assets as it is the Group’s intention to dispose of these assets within one year.

4. Segment Reporting

(a) Business Segments

The Group operates in two segments, mineral trading and processing and evaluation and exploration.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

(b) Primary Reporting: Business Segments

Revenue from external customers Sales Other revenue/Other income Total segment revenue/income Intersegment elimination Consolidated revenue Segment result Segment result Intersegment elimination Profit before income tax Income tax expense Net (loss)/profit for the year	Mineral Trading Evaluation and Exploration expenditure Head Office / Unallocated	Total of Continuing Operations Discontinued Operations Chemical Manufacturing and Mineral Processing Consolidated
	2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $	2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $
	3,777,286 10,627,126 - - - - 106,103 31,727 40,323 2,822 6,809,567 15,956,107	3,777,286 10,627,126 - 78,562,551 3,777,286 89,189,677 6,955,993 15,990,656 5,059,069 270,571 12,015,062 16,261,227
	3,883,389 10,658,853 40,323 2,822 6,809,567 15,956,107	10,733,279 26,617,782 5,059,069 78,833,122 15,792,348 105,450,904
	- - - - - -	- - - - - -
	3,883,389 10,658,853 40,323 2,822 6,809,567 15,956,107	10,733,279 26,617,782 5,059,069 78,833,122 15,792,348 105,450,904
	(5,784,773) (8,670,912) 40,323 (6,344,963) 1,069,279 13,169,690 - - - - - - - - - - - - - - - - - - - - - - - -	(4,675,171) (1,846,185) 5,059,069 114,719,239 383,898112,873,054 - - - - - -
		(4,675,171) (1,846,185) 5,059,069 114,719,239 383,898112,873,054 (2,882,700) (729,330) - (256,437) (2,882,700) (985,767)
		(7,557,871) (2,575,515) 5,059,069 114,462,802 (2,498,802) 111,887,287

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Assets Segment assets Total assets Liabilities Segment liabilities Total liabilities Other Segment Information Share of profit from associates Share of loss from joint ventures Profit on sale of China Zircon Group Acquisitions of property, plant and equipment, intangibles and other non-current segment assets Depreciation and amortisation Impairment losses Non-cash expenses other than depreciation	Mineral Trading Evaluation and Exploration expenditure Head Office / Unallocated Total of Continuing Operations Discontinued Operations Chemical Manufacturing and Mineral Processing Consolidated
	2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $
	34,682,868 32,459,265 20,471,305 20,578,898160,350,769179,945,564 215,504,942232,983,727 - -215,504,944232,983,727
	34,682,868 32,459,265 20,471,305 20,578,898160,350,769179,945,564 215,504,942232,983,727 - -215,504,944232,983,727
	999,938 2,329,533 100,259 267,801 3,238,657 18,465,795 4,338,854 21,063,129 - - 4,338,854 21,063,129
	999,938 2,329,533 100,259 267,801 3,238,657 18,465,795 4,338,854 21,063,129 - - 4,338,854 21,063,129
	- - - (296,779) - - - (296,779) - - - (296,779) - - (52,660) (9,028) - - (52,660) (9,028) - - (52,660) (9,028) - - - - - - - - 5,059,069 114,699,506 5,059,069 114,699,506 1,510,79412,411,526 1,625,057 1,693,520 1,681 - 3,137,53214,105,046 - 4,449,459 3,137,53218,554,505 347,583 107,903 - - 61 36 347,644 107,939 - 2,774,131 347,644 2,882,070 962,036 6,848,818 1,123,470 6,041,978 812,350 - 2,897,85612,890,796 - - 2,897,85612,890,796 - 501,270 - - - 900,211 - 1,401,481 - 600,000 - 2,001,481

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

(c) Geographical Segments

Although the consolidated entity is managed globally, it operates in the following main geographical areas:

Australia

The home country of the parent entity and one of the subsidiaries which performs evaluation and exploration activities.

China

The home country of subsidiaries which operate in the mineral trading and processing segment.

Australia China Other countries Total	Segment revenues from sales to external customers Segment assets Acquisitions of property, plant and equipment, intangibles and other non-current segment assets
	2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $
	- - 181,348,092 199,981,427 1,019,850 1,693,520 3,644,42688,890,960 33,988,169 32,310,873 2,117,19716,860,985 132,860 298,716 168,681 691,427 - -
	3,777,286 89,189,676 215,504,942 232,983,727 3,137,532 18,554,505

5. Revenue and Other Income

Continuing operations Revenue sale of goods - rental revenue - interest income - dividend income Total revenue: continuing Discontinued operations Revenue - sale of goods - interest income Total revenue: discontinued Other income: continuing operations - Net gain on disposal of available-for-sale financial assets - gains on foreign exchange - hedge gain - other income Total other income: continuing	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	3,777,286 10,627,126 - - 39,034 1,500 - - 6,840,857 5,895,798 6,719,101 5,871,726 - - - 16,596,452
	10,657,177 16,524,424 6,719,101 22,468,178
	- 78,562,551 - - - 21,574 - -
	- 78,584,125 - -
	- 2,534,292 - 2,534,292 - 92,332 1,495,974 99,768 30,323 7,159,906 - 7,159,906 45,779 306,828 37,734 290,414
	76,102 10,093,358 1,533,708 10,084,380

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Other income: discontinued -Net gain on disposal of subsidiaries (note 8) -other income Total other income: discontinued	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	5,059,069 - 5,620,841 140,059,503 - 248,997 - -
	5,059,069 248,997 5,620,841 140,059,503

6. (Loss)/Profit Before Income Tax

(a) ( Loss)/Profit before income tax includes the following specific expenses :

	Consolidated	Consolidated	Parent
	2009	2008	2009	2008
	$	$	$	$
Interest Paid	-	990,636	-	260,332
Foreign currency translation
losses/(gains)	1,318,974	(92,332)	1,318,974	(99,767)
Gain on foreign currency
hedge transaction	30,323	(7,159,906)	-	(7,159,906)
Bad and doubtful debts-trade
receivables	-	11,139	-	-
Premises-contractual
amounts	227,222	230,965	-	-
Research and development
costs	15,373	250,477	-	212,968
Depreciation and amortisation	347,644	2,882,070	61	-
Superannuation	114,081	131,729	76,225	-
Employee benefits	1,176,407	3,562,331	390,206	2,015,962
Share based payment
expenses	-	260,994	-	260,994
Impairment of capitalised
development expenditure
(note 20 (e))	583,683	6,848,818	29,216	4,559,680
Impairment of available-for
sale investments (note 16)	812,350	-	812,350	-
Costs associated to Gambia
investment (note 14(d))	1,851,719	-	1,434,402	-
Impairment of Gambian equity
investment	-	6,041,978	-	-
Impairment of Senegal
exploration expenditure (note
20 (e))	539,787	-	-	-
Impairment of subsidiary	-	-	(1,902,621)	10,000,000
Loss - liquidation of subsidiary	-	-	-	1,212,945
Write downofstock(note13)	962,036	-	-	-

This note reflects expenses for both continuing and discontinued operations.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

(b) Gains on disposal of assets

Available-for-sale financial assets Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- 2,534,292 - 2,534,292
	- 2,534,292 - 2,534,292

7. Income Tax Expense

(a) The components of tax expense comprise:

Current tax expense in respect of current year Adjustments recognised in the current year in relation to the prior year Recognition/(reversal) of deferred tax liability/(asset) Total Attributable to: Continuing operations Discontinued operations Total	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	920,300 603,756 1,233,509 - 349,104 - 348,018 1,613,296 382,011 (623,150) 729,330
	2,882,700 985,767 958,377 729,330
	2,882,700 729,330 958,377 729,330 - 256,437 - -
	2,882,700 985,767 958,377 729,330

(b) The prima facie tax on profit before income tax is reconciled to the income tax as follows:

Prima facie tax payable on (loss)/profit 30% (2008: 30%) - continuing operations - discontinued operations Add/(Less) Tax effect of: - deferred tax asset not brought to account - under provision for deferred tax - gain on sale not assessable	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	(1,402,552) (553,856) 1,336,911 4,198,055 1,517,721 34,415,772 1,686,252 42,017,851
	115,169 33,861,916 3,023,163 46,215,906 243,705 2,071,266 243,705 5,799,033 1,922,999 - - - (1,686,252) (34,415,772) (1,686,252) (42,017,851)

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

- benefit arising from previously
unrecognised tax losses/timing
differences	(490,409)	(551,143)	(1,509,964)	(4,308,322)
- non deductible items	540,535	19,500	539,707	19,500
- items not assessable for tax
purposes	-	-	-	(4,978,936)
- deferred tax asset not recognized for
China losses and timing differences	1,583,207	-	-	-
- under provision for income tax in
prior year	337,104	-	348,018	-
- Impact ofoverseas taxdifferential	316,642	-	-	-
Income taxattributable to entity	2,882,700	985,767	958,377	729,330
The applicable weighted average
effective tax rates are as follows:	750%	3%	10%	2%

The increase in the weighted average effective consolidated tax rate for 2009 is in the main a result of deferred taxation raised on prior year capitalised expenditure.

(c) Income tax rates

Australia

In accordance with the Australian Income Tax Act, Astron Limited and its 100% owned Australian subsidiaries have formed a tax consolidated group, tax funding or sharing agreements have been entered into. Australia has a double tax agreement with China and there are currently no impediments to repatriating profits from China to Australia. Dividends paid to Astron Limited from Chinese subsidiaries are non assessable under current Australian Income Tax Legislation.

China

Astron Limited's subsidiaries in China and are subject to Chinese income tax laws.

Chinese taxation obligations have been fully complied with, confirmed by regular audits completed by the Chinese tax authorities.

(d) Items not chargeable or not deductible for tax purposes

Items not chargeable or deductible for tax purposes for the group principally represent profits derived in China which receive a number of tax concessions (such as accelerated depreciation allowances) and are not required to be assessed at the Australian Corporate Income Tax rate of 30%. With respect to the parent entity, items not chargeable or deductible for tax purposes relate to non deductible items.

8. Discontinued Operations

On 30 November 2007, Astron Limited announced its intention to sell its China Zircon Group to Imerys. The division was sold with effect from 4 February 2008 and was reported as a discontinued operation in 2008.

During the financial year the final settlements were obtained resulting in further revenue for the Group which related primarily to the settlement of warranty and indemnification provisions. Financial information relating to the discontinued operation for the period to 4 February 2008 is set out below. Further information is set out in note 4 - Segment Information.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
Revenue and other income Expenses Profit before income tax Income tax expense Loss attributable to members of the parent entity Profit on sale of China Zircon Group before income tax Profit on sale after income tax Net cash inflow from operating activities Net cash (outflow)/ inflow from investing activities Net cash outflow from financing activities Net (decrease)/increase in cash generated by the discontinued operation	- 78,833,122 - - - (78,813,389) - -
	- 19,733 - - - (256,437) - -
	- (236,704) - - 5,059,069 114,699,506 5,620,841 140,059,503
	5,059,069 114,462,802 5,620,841 140,059,503
	- 14,971,827 - - (8,385,308) 164,009,223 (8,385,308) 182,764,482 - (3,826,926) - (7,354,253)
	(8,385,308) 175,154,124 (8,385,308) 175,410,229

The assets and liabilities of the discontinued China Zircon Group as at 4 February 2008 (2008 column) were as follows:

Property, plant and equipment Cash Inventory Trade & other receivables Total assets Trade & other creditors Tax liabilities Total liabilities Net assets	2009 $ 2008 $
	- 21,331,095 - 6,996,043 - 32,925,949 - 21,284,847
	- 82,537,934
	- (39,116,912) - (1,145,393)
	- (40,262,305)
	- 42,275,629

The gain on sale of the China Zircon Group has been calculated as follows:

Consideration received-cash Carrying amount of net assets sold and other costs Gain on sale Over-provision/(costs) directly attributable to sales of	37 2009 $ 2008 $ - 182,764,378 - (42,275,629) - 140,488,749 5,059,069 (21,737,280)

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

business Recycling of foreign exchange reserve in respect of disposal of foreign subsidiaries Net forgiveness of intercompany balances Gain on sale after income tax	- (5,670,829) - 1,618,866
	5,059,069 114,699,506

In the event that that Zircon Group achieves certain performance criteria during the two years subsequent to completion, an additional cash consideration is due as specified in the earn out clause in the sale agreement. This amount has not been recognised in the consideration receivable and the profit on sale of the division as the earn out amount cannot be reliably measured at this stage.

9. Earnings Per Share

(a) Reconciliation of earnings used in the calculation of earnings per share to Profit or Loss:

(Loss)/Profit attributable to members (Loss)/Earnings used to calculate basic EPS (Loss)/ Earnings used in calculation of dilutive EPS	Consolidated
	2009 $ 2008 $
	(2,498,802) 111,887,287 (2,498,802) 111,887,287 (2,498,802) 111,887,287
Loss from continuing operations Loss used to calculate basic EPS from continuing operations Loss used in the calculation of dilutive EPS from continuing operations	(7,557,871) (2,575,515) (7,557,871) (2,575,515) (7,557,871) (2,575,515)
Profit from discontinued operations Earnings used to calculated basic EPS from discontinued operations	5,059,069 114,462,802 5,059,069 114,462,802

(b) Weighted average number of ordinary shares (diluted):

Weighted average number of ordinary shares outstanding during the year - used in calculating basic EPS Weighted average number of ordinary shares outstanding during the year - usedincalculating dilutiveEPS	Consolidated
	2009 2008
	64,757,109 62,868,809 64,757,109 62,868,809

(c) Dilutive shares

There were no shares issued under escrow at or post year end.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

10. Auditors' Remuneration

Remuneration of the auditor BDO Kendalls - auditing or reviewing the financial report Other audit firms Other services – BDO Kendalls - taxation services - taxation advice relating to China Zircon Group sale - due diligence assistance -otherservices	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	175,535 342,275 175,535 242,275 23,914 - - - 117,813 17,400 117,813 17,400 29,706 - 29,706 - 13,739 77,195 13,739 77,195 368 1,040 368 1,040

11. Cash assets

Cash on hand Bank balances Short-term deposits	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	3,396 57,428 - - 18,021,688 185,405,129 8,282,372 179,041,872 150,791,321 193,468 150,585,307 -
	168,816,405 185,656,025 158,867,679 179,041,872

Cash on hand is non interest bearing. Bank balances and deposits at call bear floating interest rates between 0.0% and 3.52% (2008: 0.72% and 7.75%). Deposits have an average maturity of 60 days. Bank balances included letter of credit deposits of $203,533 as at 30 June 2009.

(a) Geographic concentration of risk

Australia China United Kingdom Senegal Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	159,073,793 179,235,340 158,867,679 179,041,872 9,677,906 6,344,523 - - 58,512 32,500 - - 6,194 43,662 - -
	168,816,405 185,656,025 158,867,679 179,041,872

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

Australia Commonwealth Bank-S&P rating of AA- (2008:AA) Goldman Sachs JB Were-unrated Bank of China-S&P rating of A- Other Australian banks China Bank of China-S&P rating of A- Construction Bank-S&P rating of A- Other Chinese banks	2009 $ 2008 $
	150,789,467 4,754,570 1,159,502 174,454,839 7,089,643 3,456 35,181 22,536
	159,073,793 179,235,401
	6,473,596 4,913,542 2,764,564 1,213,617 439,746 217,364
	9,677,906 6,344,523

12. Trade and Other Receivables

Current Trade receivables Drafts and other receivables Amounts receivable from: - wholly-owned subsidiaries - provision for impairment of receivable from wholly-owned subsidiaries - joint venture entity receivable - provision for impairment of receivables from joint venture entity Total	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	12(b) 328,883 1,300,388 - - 12(a) 2,135,077 7,123,092 381,734 903,692 12(e) - - 8,560,806 7,905,737 12(e) - - (1,300,887) (1,300,887) 29(c) - 3,975,639 - - 14(d) - (3,975,639) - -
	2,463,960 8,423,480 7,641,653 7,508,542

(a) Drafts receivable

Drafts receivable represent bank guarantees on behalf of trade and other debtors with current maturity dates. Settlement through bank draft is common trading practise in China. All the drafts are with the counterparties in China. There is no industry concentration of risk in respect to these drafts.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

(b) Ageing analysis

The ageing analysis of trade receivables is as follows:

0-30 days (not past due) 31-60 days (not past due) 61-90 days (past due not impaired) 91+ days (past due not impaired)	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	175,639 489,809 - - 35,936 706,984 - - 37,596 74,142 - - 79,712 29,453 - -
	328,883 1,300,388 - -

At year end the Group’s trade debtors are predominantly receivable from Chinese trading partners. The Group considers that its history of trading indicates that there are no impairment indicators at balance date. The Chinese debtors are regularly reviewed and as is common practise in China the terms maybe extended without which there would be overdue balances, however, the Group is satisfied that payment will be received in full.

It is the Group’s policy that where possible that sales are made in exchange for notes (guaranteed by a Chinese bank) ensuring that the Group does not have an impairment issue.

(c) Analysis of allowance for trade debtors

Opening balance Receivables transferred on disposal of subsidiary Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- 350,134 - - - (350,134) - -
	- - - -

(d) Analysis of allowance for other debtors

Opening balance Elimination on gaining control of joint venture Provision for receivables from joint venture entity Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	3,975,639 - 1,300,887 1,300,887 (3,975,639) - - - - 3,975,639 - -
	- 3,975,639 1,300,887 1,300,887

(e) Impairment of loans from wholly-owned subsidiaries

The loans are repayable at call. Except for the balance due from Sovereign Gold NL of $1,300,887 which is fully provided for the other loans are not considered impaired after reviewing the underlying

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

assets of the subsidiaries.

13. Inventories

Raw materials-at cost Raw Materials-at net realisable value Raw Materials Works in progress Finished goods – at cost Finished goods – at net realisble value Finished goods Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- 1,153,334 - - - 157,960 - -
	- 1,311,294 - -
	343,086 2,026,784 - - 1,016,523 19,509 1,524,784 -
	2,541,307 19,509 - -
	2,884,393 3,357,587 - -

Write downs of inventories to net realisable value during the current financial year amounted to $962,036 (2008 $501,270).

14. Investments in Joint Venture Entity - Carnegie

(a) Interest in joint venture entity

On 22 December 2008, the Group paid $50,000 to acquire Coast Resources Limited which holds a 50% interest in Carnegie Minerals (Gambia) Limited (Carnegie) and the Senegal Joint Venture.

This resulted in the Group acquiring the remaining 50% of Joint Venture Entity Carnegie Minerals (Gambia) Limited and this becoming a 100% subsidiary of Astron Limited for the sum of $1 as all assets of the company have been impaired. This acquisition was transacted to simplify the process of the Group pursuing its legal rights under that mining lease (if it chooses to do so) in an endeavour to recover the operation or damages for its loss.

Carnegie was incorporated to commence mining activities in The Gambia. (Note that at 30 June 2008 the investments and receivables associated with the company have been impaired in full, refer Note 14(d)).

The original agreement prior to the seizure of the assets was that Astron Limited had an obligation to fund the development and operating costs of the mine by way of loans (refer Note 29(c) for further details).

Name	Principal Activities	Country	Reporting Date	2009	2008
				%	%
Carnegie	Mining mineral sands	The Gambia	31 December	100.00*	50.00

*Carnegie become a subsidiary company during the year (refer note 18)

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

2009 2008 Carnegie	Revenues $ Loss $ Share of Joint Venture Entities net loss recognised $ Total Assets $ Total Liabilities $ Net assets as reported $ Share of Joint Venture assets equity accounted $
	- - - - - - -

	- (593,558) (296,779) - - - -

(b) Carrying amount of investment in joint venture entity

Opening balance -share of joint venture's profit after income tax -Impairment adjustment -additional investments made during the year Closing balance	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- 2,171,730 - - - (296,779) - - - (1,992,086) - - - 117,135 - -
	- - - -

(c) Impairment

Gambian mining assets have been impaired after the assets were seized by the Gambian government and any recoverability is uncertain.

Investment in joint venture entity Loans provided Interest Total Impairment Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- 1,992,086 - - - 3,975,639 - -
	- 5,967,725 - - - 5,967,725 - -
	- - - -

(d) Gambia costs

Included in the loss before taxation are expenses of $1,851,719, including legal fees and consultants fees relating to the Gambia project and the related legal claim.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

15. Joint Ventures Operations - Senegal

Interest in joint venture operations

As set out in 14(a) the Group acquired Coast Resources Limited which holds a 50% interest in Carnegie Minerals (Gambia) Limited and the Senegal Joint Venture.

The Senegal Joint Venture’s principal activity is the exploration and evaluation of mineral sands in Senegal. The Group now has a 100% interest in the venture and will be entitled to 100% of the output. The following amounts have been recognised in the consolidated balance sheet relating to assets and liabilities of the Senegal Joint Venture. Comparative information for 2009 has not been presented as during the year this entity become a subsidiary of the Group.

Current assets Cash Receivables Total current assets Non-current assets Property, plant and equipment Exploration, evaluation and development costs Total non-current Assets Total assets Liabilities Net assets Income statement Loss for year Income tax expense Loss after income tax	Consolidated Parent
	2008 $ 2008 $
	43,662 - 3,024 -
	46,686 - - 6,534 - 489,815 - 496,349 -
	543,035 -
	- -
	543,035 -
	(9,028) - - -
	(9,028) -

At 30 June 2008 there were no impairment losses.

16. Available-For-Sale Financial Assets

Current listed investments, at fair value shares in listed corporations Total available-for-sale financial assets	Consolidated Parent 2009 $ 2008 $ 2009 $ 2008 $
	1,099,736 - 1,099,736 -
	1,099,736 - 1,099,736 -

Available-for-sale financial assets comprise of investment in the ordinary issued capital of three publically

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

listed companies. The cost of these investments was $1,912,086. There are no fixed returns or fixed maturity date attached to these investments. An amount of $812,350 has been recorded in the profit and loss account as relating to an impairment under AASB 139.

There will be no capital gains tax payable on the sale of these assets due to existing capital losses carried forward.

17. Other Financial Assets

Shares in subsidiaries: unlisted Less: impairment provision Total	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	- - 54,815,505 47,962,785 - - (9,048,581) (10,713,211)
	- - 45,766,924 37,249,574

18. Subsidiaries

Subsidiaries
Parent entity Astron Limited Subsidiaries of parent entity Astron Advanced Materials Limited Astron Titanium (Yingkou) Co Ltd Carnegie Minerals (Gambia) Limited Coast Resources Limited Dickson & Johnson Pty Limited Donald Mineral Sands Pty Ltd Sovereign Gold NL Yingkou Astron Mineral Resources Co Ltd Zirtanium PtyLimited	Country of incorporation Percentage Owned Ordinary Shares 2009 Percentage Owned Ordinary Shares 2008
	Australia UK 100 100 China 100 100 The Gambia 100 50 Isle of Man 100 - Australia 100 100 Australia 100 100 Australia 100 100 China 100 100 Australia 100 100

(a) Equity

The proportion of ownership interest is equal to the proportion of voting power held.

(b) Acquisition of subsidiaries

On 22 December 2008 Astron Limited paid $50,000 to acquire Coast Resources Limited which holds a 50% interest in Carnegie Minerals (Gambia) Limited. This acquisition was transacted to simplify the process of Astron pursuing its legal rights under that mining lease (if it chooses to do so) in an endeavour to recover the operation or damages for its loss.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

Details of the net assets acquired and goodwill in respect of the transaction are as follows:

	Gambia	Senegal	Total
Cash paid	1	49,999	50,000
Fair value of net identifiable assets acquired
(see below)	-	49,999	49,999
Goodwill(Discount onacquisition)	1	-	1

Further to the above, Astron acquired the remaining 50% of the Senegal joint venture for the sum of $49,999. The assets arising from the acquisition are as follows:

Cash Capitalised exploration costs Plant and equipment Netidentifiable assets acquired	Acquiree’s carrying value Fair value
	26,175 26,175 520,472 19,315 4,509 4,509
	551,156 49,999

The acquired businesses contributed no revenue and no profits to the Group from acquisition date to 30 June 2009. If the acquisition had occurred on 1 July 2008 consolidated revenue and profit would have been unchanged. There were no other new subsidiaries incorporated or acquired.

(c) Disposal of controlled entities

During the year there were no subsidiaries disposed or wound up.

On 4 February 2008, The Group disposed of its 100% interest in Astron Chemical Co Limited, Astron New Materials Co Limited, Tai Cang Astron Mining Products Co Limited and Zibo Astron Advanced Materials Co Limited. A profit on disposal of $114,699,506 after income tax was attributable to the members from the disposal. No remaining interest in the entity was held by any member of the Group.

19. Property, Plant and Equipment

Land and buildings Land At cost Total land Leasehold buildings At cost Less accumulated depreciation Total leasehold buildings Total land and buildings	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	537,981 534,870 - -
	537,981 534,870 - -
	2,530,929 2,064,807 - - (182,442) (44,760) - -
	2,348,487 2,020,047 - -
	2,886,468 2,554,917 - -

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

Plant and equipment and works in

Plant and equipment and works in
progress Capital works in progress At cost Total capital works in progress Plant and equipment At cost Less accumulated depreciation Total plant and equipment Total plant and equipment and works in progress Total property, plant and equipment	5,494,137 3,664,922 - -
	5,494,137 3,664,922 - -
	908,277 545,446 1,681 - (290,211) (126,032) (61) -
	618,066 419,414 1,620 -
	6,112,203 4,084,336 1,620 -
	8,998,671 6,639,253 1,620 -

(a) Assets pledged as security

As at 30 June 2009 there were no mortgages granted as security over bank loans.

(b) Capital works in progress

Capital works in progress are not ready for use and not yet being depreciated.

(c) Movements in carrying amounts

Movement in the carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year

Year ended 30 June 2009 Balance at the beginning of year Additions Depreciation expense Foreign exchange movements Carrying amount at the end of year Year ended 30 June 2008 Balance at the beginning of year Additions Disposals Transfers Depreciation expense Foreign exchange movements Carrying amount at the end	Consolidated
	Capital works in progress $ Land $ Buildings $ Plant and equipment $ Total $
	3,664,922 534,870 2,020,047 419,413 6,639,252 1,133,964 3,111 - 408,790 1,545,865 - - (128,783) (189,055) (317,838) 695,251 - 457,223 (21,083) 1,131,392
	5,494,137 537,981 2,348,487 618,066 8,998,671
	480,858 534,870 8,317,025 9,932,959 19,265,711 4,587,926 - 242,349 3,616,259 8,446,534 (1,400,913) - (8,157,041) (10,609,414) (20,167,368) - - 2,020,047 - 2,020,047 - - (364,772) (2,475,320) (2,840,092) (2,949) - (37,561) (45,070) (85,580)
	3,664,922 534,870 2,020,047 419,414 6,639,252
	47

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

of year

Year ended 30 June 2009 Balance at the beginning of year Acquisition Depreciation Carrying amount at the end of year Year ended 30 June 2008 Balance at the beginning of year Depreciation expense Carrying amount at the end ofyear	Parent
	Plant and Equipment $ Total $
	- - 1,681 1,681 (61) (61)
	1,620 1,620
	36 36 (36) (36)
	- -

20. Intangible Assets

Development costs Cost Accumulated impairment loss Net carrying value Exploration expenditure capitalised Exploration and evaluation phases Net carrying value Total Intangibles	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	20(b) 8,615,359 7,532,348 4,588,896 4,559,680 (8,345,851) (6,817,721) (4,588,896) (4,599,680)
	269,508 714,627 - -
	20(a)(c) 20,201,797 19,183,628 - -
	20,201,797 19,183,628 - -
	20,471,305 19,898,255 - -

(a) Intangible assets

Movements during the year ended 30 June 2009 in intangible assets represent additions and impairment adjustments only. No amortisation has been brought to account. For capital expenditure commitments refer note 30(b).

(b) Development costs

These costs relate to the development of the mineral projects in Senegal and TiO2 project (both fully impaired refer (e) below). The remaining balance of $269,508 relates to capitalised testing and design fees for the MSP.

(c) Exploration and evaluation expenditure

This expenditure relates to the Group's investment in the Donald Mineral Sands Project. The Group has complied with the conditions of the granting of EL4432 and EL4433 as at 30 June 2009. As such the Directors believe that the tenements are in good standing with the Department of Primary

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

Industries in Victoria, who administers the Mineral Resources Development Act 1990.

The recoverability of the carrying amount of the exploration and evaluation assets is dependent upon the successful development and commercial exploitation or alternatively sale of the area of interest.

Year ended 30 June 2009 Opening balance Acquired - business combination Additions Impairment loss Foreign exchange movements Balance at 30 June 2009 Year ended 30 June 2008 Opening balance Additions Impairment loss Foreign exchange movements Balance at 30 June 2008		Consolidated
		Exploration and Evaluation Phase $ Development costs $ Total $
		19,183,628 714,627 19,898,255 - 19,315 19,315 1,018,169 587,573 1,605,742 - (1,123,470) (1,123,470) - 71,463 71,463
		20,201,797 269,508 20,471,305
		17,491,236 7,128,806 24,620,042 1,692,392 637,170 2,329,562 - (6,848,818) (6,848,818) - (202,531) (202,531)
		19,183,628 714,627 19,898,255

Year ended 30 June 2009 Opening balance Additions Impairment loss Balance at 30 June 2009 Year ended 30 June 2008 Opening balance Additions Impairment loss Balance at 30 June 2008		Parent
		Exploration and Evaluation Phase $ Development costs $ Total $
		- - - - 29,216 29,216 - (29,216) (29,216) - - - - 4,435,546 4,435,546 - 124,134 124,134 - (4,559,680) (4,559,680) - - -

(d) Finite lives

Intangible assets, other than goodwill have finite useful lives. To date no amortisation has been charged in respect of intangible assets due to the stage of development for each project.

(e) Impairment

In accordance with the provisions of AASB 136 impairment adjustments against the capitalised

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

TiO2 development project have been made on the basis that the environmental approvals have been delayed. The Group is currently awaiting China government environmental development approvals. Furthermore, an impairment loss of $539,787 has been recognized in relation to Senegal development costs on the basis that the future of the project is currently uncertain.

21. Land Use Rights

Land use rights	Land use rights	Consolidated Parent	Consolidated Parent
		2009 $ 2008 $ 2009 $ 2008 $
		10,770,472 9,009,128	- -
		10,770,472 9,009,128	- -
(a)	Reconciliation
	Year ended 30 June 2009 Opening balance Amortisation Foreign exchange movements Balance as at 30 June 2009 Year ended 30 June 2008 Opening balance Additions Disposals Amortisation Foreign exchange movements Balance as at 30 June 2008		9,009,128 (29,806) 1,791,150
			10,770,472
			2,476,206 7,778,410 (1,163,727) (41,978) (39,783)
			9,009,128

22. Trade and Other Payables

Unsecured liabilities Trade payables Other payables Amount payable to: - wholly-owned subsidiaries - other related parties (Director related entity)	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	737,502 1,205,111 395,268 176,393 877,295 1,841,863 159,318 313,247 29(c) - - 6,534,853 2,294,770 49,776 3,821,807 49,776 3,821,807
	1,664,573 6,868,781 7,139,215 6,606,217

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

23. Provisions

Current Provision for indemnification on discontinued operations Non-current Environmental rehabilitation	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	23(a) 100,000 14,154,348 100,000 14,154,348
	100,000 14,154,348 100,000 14,154,348
	23(a) 40,000 40,000 - -
	40,000 40,000 - -

(a) Movement in carrying amounts

Opening balance at 1 July 2008 Amounts used Unused amounts reversed Balance at 30 June 2009 Opening balance at 1 July 2008 Amounts used Unused amounts reversed Balance at 30 June 2009		Consolidated
	Environmental rehabilitation $	Indemnification $ Total $
	40,000 - -	14,154,348 14,194,348 (8,385,308) (8,385,308) (5,669,040) (5,669,040)
	40,000	100,000 140,000
		Parent
		Indemnification $ Total $
		14,154,348 14,154,348 (8,385,308) (8,385,308) (5,669,040) (5,669,040)
		100,000 100,000

(b) Provision for indemnification on discontinued operations

As part of the sale of the China Zircon Group, Astron Limited provided an indemnification to Imerys for potential liabilities. A provision has been recognised representing the Group's best estimate of amounts due to the purchaser as a result of the indemnification given.

(c) Provision for environmental rehabilitation

The provision for rehabilitation represents the estimated costs to rehabilitate the Donald Mineral Sands evaluation excavation.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

24. Taxation

(a) Liabilities

	Consolidated		Parent
	2009	2008	2009	2008
	$	$	$	$
Current tax liability	920,986	-	920,986	-
Deferred tax liability/(asset) arises from the
following:
Capitalised expenditure	2,256,776	-	-	-
Provisions	(26,526)	-	(6,196)	-
Unrealised foreign exchange losses	(395,007)	-	53,762	-
Tax losses available for set off against future
tax income taxes	(221,947)	-	(670,716)	-
	1,613,296	-	(623,150)	-

(b) Deferred tax assets not brought to account

Deferred tax assets not brought to account, the benefits of which will only be realised if the conditions for deductibility set out in note 2(e) occur.

temporary differences unrecognised tax losses: - Revenue losses (China)* - capital losses	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	1,376,669 2,071,266 1,376,669 5,799,033 1,124,365 - - - 15,046,174 14,802,469 17,702,245 14,802,469

‘* In 2008, revenue tax losses in China could not be reasonably determined.

25. Issued Capital

64,824,502 (2008: 64,667,538) Fully Paid Ordinary Shares Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	39,376,051 39,203,511 39,376,051 39,203,511
	39,376,051 39,203,511 39,376,051 39,203,511

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

(a) Reconciliation of ordinary shares (value)

At the beginning of reporting year Shares issued during the year - On 12 December 2008 and 15 December 2007 shares issued in accordance with the dividend reinvestment plan - Shares issued as remuneration - Shares bought back during the year Atreporting date	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	64,667,538 60,434,610 64,667,538 60,434,610 518,832 4,345,800 518,832 4,345,800 25(e) - 121,962 - 121,962 (361,868) (234,834) (361,868) (234,834)
	64,824,502 64,667,538 64,824,502 64,667,538

(b) Reconciliation of ordinary shares (number)

At the beginning of the year Shares issued during the year - On 12 December 2008 and 15 December 2007 shares issued in accordance with the dividend reinvestment plan - Shares issued as remuneration - Shares bought back during the year - Costs of share issues Total	Consolidated Parent
	Note 2009 $ 2008 $ 2009 $ 2008 $
	39,203,511 29,619,643 39,203,511 29,619,643 793,764 9,821,571 793,764 9,821,571 25(e) - 260,994 - 260,994 (617,588) (479,241) (617,588) (479,241) (3,635) (19,456) (3,635) (19,456)
	39,376,052 39,203,511 39,376,052 39,203,511

(c) Ordinary shares

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held.

At the shareholders meetings, each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

(d) Capital risk management

The Group considers its capital to comprise its ordinary share capital, reserves, accumulated retained earnings and net debt.

In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders through a combination of capital growth and dividends. In order to achieve this objective, the Group has made decisions to adjust its capital structure to achieve these aims, either through altering its dividend policy, new share issues, or share buy backs, the Group considers not only its short term position but also its long term operational and strategic

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

objectives.

Net debt Totalequity	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $ 49,776 3,821,807 6,584,629 6,116,577 211,166,088 211,920,598 205,840,561 203,039,423

The decrease in debt has been brought about by the repayment of related party loans facilitated by the sale of the Chinese subsidiaries for cash and subsequent transfer of debt to the acquirer in 2008. There have been no other significant changes to the Group’s capital management objectives, policies and processes in the year nor has there been any change in what the Group considers to be its capital.

(e) Share based payments

During the year no bonuses were paid to employees.

During 2008 share based payments were paid to employees at market value and were issued at the discretion of the Remuneration Committee as follows:

Bonus shares issued at $2.26 Bonus shares issued at $1.65 Total	2009 No 2008 No
	- 97,962 - 24,000
	- 121,962

No share based payment expense (2008: $260,994) has been recognised during the financial year.

26. Reserves

(a) Foreign currency translation reserve

The foreign currency translation reserve records exchange differences arising on translation of foreign controlled subsidiaries.

(b) Available-for-sale investments assets reserve

The financial assets reserve records revaluations of financial assets.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

(c) Reconciliation of reserves

Foreign currency translation reserve As at beginning of period Exchange differences on translation of foreign operations Exchange differences recycled on sale on China Zircon Group Total Share of contributions by other joint venture party in investments accounted for using the equity method As at beginning of period Transfer to retained earnings Total Reserves Foreign currency translation reserve Equity investment reserve Total Available-for-sale financial assets reserve As at beginning of period Gain on disposal of available-for-sale financial assets credited to Income Statement Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	(1,130,423) (7,421,185) - - 8,061,990 619,933 - - - 5,670,829 - -
	6,931,567 (1,130,423) - -
	1,216,859 1,216,859 - - (1,216,859) - - -
	- 1,216,859 - -
	6,931,567 (1,130,423) - - - 1,216,859 - -
	6,931,567 86,436 - -
	- 1,701,770 - 1,701,770 - (1,701,770) - (1,701,770)
	- - - -

27. Dividends

Distributions paid

Final unfranked dividend of 10c paid 12 December 2008 (2008: 20c paid 15 December 2007) per share Total	Consolidated Parent 2009 $ 2008 $ 2009 $ 2008 $
	6,490,237 12,086,922 6,490,237 12,086,922
	6,490,237 12,086,922 6,490,237 12,086,922

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Proposed dividends

Proposed final unfranked ordinary dividend of Nil cents (2008: 10 cents) per share Total	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- 6,466,754 - 6,466,754
	- 6,466,754 - 6,466,754

28. Key Management Personnel Disclosures

(a) Key management personnel compensation

Short-term employee benefits Post-employment benefits Share-based payments Total	Consolidated Parent 2009 $ 2008 $ 2009 $ 2008 $
	1,647,776 3,008,663 962,370 2,162,700 81,690 47,831 58,348 8,256 - 174,000 - 174,000
	1,729,466 3,230,494 1,020,718 2,344,956

Further information regarding the identity of key management personnel and their compensation can be found in the Audited Remuneration Report contained in the Directors' Report.

(b) Shareholdings

Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key management personnel and their related parties are as follows:

				Net
	Balance	Received as	Dividend	*Change/**	Balance
30 June 2009	1/07/2008	Remuneration	Reinvestment	Other	30/06/2009
Key Management Personnel
Mr Gerard King	274,519	-	-	-	274,519
Mr Alexander Brown	45,079,651	-	-	-	45,079,651
Mr Robert Flew	170,574	-	-	-	170,574
Mr Ronald McCullough	-	-	-	-	-
Mdm Kang Rong	-	-	-	-	-
Mr Mark Nielsen	-	-	-	10,000	10,000
Mr Wang Xuedong	-	-	-	-	-
Mr Jerry Ng	-	-	-	-	-
Mr Boris Matveev	-	-	-	-	-
Mr Simon Peters	10,000	-	-	5,950	15,950
Ms Emma Vogal	10,000	-	-	4,700	14,700
Mr Song Hongxing	-	-	-	-	-

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Mr Alan Guy	92,991	-	-	(92,991)	-
	45,637,735	-	-	(72,341) 45,565,394
* Net change other refers to shares purchased or sold during the financial year.
	Balance	Received as	Dividend	Net Change*	Balance
30 June 2008	1/07/2007	Remuneration	Reinvestment	Other	30/06/2008
Key Management Personnel
Mr Gerard King	1,088,250	-	56,780	(870,511)	274,519
Mr Alexander Brown	41,416,189	-	3,663,462	-	45,079,651
Mr Robert Flew	170,574	-	-	-	170,574
Mr Ronald McCullough	-	-	-	-	-
Mdm Kang Rong	-	-	-	-	-
Mr Alan Guy	207,423	-	-	(114,432)	92,991
Mr Kim Hodierne	-	30,000	2,654	(32,654)	-
Mr Song Hongxing	-	-	-	-	-
Mr Robert Willerton	-	30,000	2,654	(32,654)	-
Mr Simon Peters	-	10,000	-	-	10,000
Ms Emma Vogel	-	10,000	-	-	10,000
Total	42,882,436	80,000	3,725,550	(1,050,251)	45,637,735

(c) Loans to/from key management personnel

The parent entity, Astron Limited has received a loan from a Director related entity Firback Finance Limited of $49,776 repaid in full in July 2009 (2008: $3,821,807 repaid in full in July 2008).

During the year interest there was no interest paid on loans (2008: $260,331 and was calculated at 7.5%pa accrued monthly).

No other loans were provided to Key Management Personnel during the year.

(d) Other transactions and balances

Consultancy services

A member of the company's Board of Directors, serves as a consultant to the company on Donald. Fees paid to his company for these services were $ 46,000 for the year ended 30 June 2009 (2008 $46,000). The amount owed at the end of the year was $11,500 (2008: $6,500).

29. Related party transactions

(a) Parent entity

Astron Limited is the parent entity of the Group.

(b) Subsidiaries

Interests in subsidiaries are disclosed in note 18.

(c) Interest free loans

Loans

(i) The parent entity, Astron Limited has received interest free loans from subsidiaries. The loans are interest free, unsecured and repayable at call.
Dickson & Johnson Pty Ltd $2,267,946 (2008 $2,267,946)
Yingkou Astron Mineral Resources Co Ltd $3,927,764 (2008 $438,425)

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

Zirtanium Pty Ltd $26,824 (2008 $26,824)

The parent entity, Astron Limited has provided interest free loans to subsidiaries. The loans are interest free, unsecured and repayable at call.

  - Donald Mineral Sands Pty Ltd $7,259,919 (2008 $6,166,425)

  - Sovereign Gold NL $1,300,887 (2008 $1,300,887) which is fully provided

(ii) The group had provided interest free loans to Carnegie Minerals (Gambia) Limited of which the Group had a 50% ownership until 22 December 2008. The loan related to the funding of the Gambian mining venture which was to be repaid through the mineral off-take agreement. During 2008 through actions taken by The Gambian government the receivable from Carnegie Minerals (Gambia) Limited was valued at $Nil (2008: $Nil) after impairment of $3,975,639. Following the acquisition of the remaining 50% of Carnegie, the loan is now 100% within the group and is therefore eliminated on consolidation.
(d) Management services provided

Administrative services are provided at no cost to subsidiaries.

(e) Dividends

During the year the parent entity, Astron Limited received dividends from subsidiaries as follows:

Astron Chemical Co Limited of $Nil (2008 $16,596,452)
(f) Tax consolidation

Current tax payable assumed from wholly-owned tax consolidated entities Tax losses assumed from wholly-owned tax consolidated entities during the year	2009 $ 2008 $
	- - 312,523 792,536

30. Capital and Leasing Commitments

(a) Operating lease commitments

Non cancellable operating leases contracted for but not capitalised in the financial statements

Payable-minimum lease payments - not later than 12 months - between 12 months and 5 years	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $
	- - - - - - - -
	- - - -

(b) Capital expenditure commitments

Capital expenditure commitments contracted for:	Consolidated Parent
	2009 $ 2008 $ 2009 $ 2008 $

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

TiO2 plant designs Chinese capital projects Chinese subsidiary capitalisation Donald Mineral Sands Payable: -not later than 12 months	- 202,682 - - - 1,386,913 - - 4,987,500 4,667,826 - - 50,000 170,933 - -
	5,037,500 6,428,354 - -
	5,037,500 6,428,354 - -
	5,037,500 6,428,354 - -

(c) Other commitments and contingencies

Land

In June 2008 the Group acquired an industrial land site from the Chinese Government. Retention of the full land parcel required the Group to complete development of Phase 1 of the site by 30 December 2009. Astron plans to do this by combining its own investments and complementary investments by third parties. This deadline is subject to the land having an environmental impact assessment approved by the Yingkou Government, due to delays in this approval the contract dates are expected to be updated however a final date has not been determined as yet.

If the Group fails to develop the land the Chinese Government has an option to re acquire the land with a penalty of up to 20% of the purchase price and/or a penalty fee equivalent of 0.1% of the land transfer fee will be imposed for each day delayed. The potential liability is estimated to be $1,555,682.

31. Cash Flow Information

(a) Reconciliation of cash provided by operating activities with (loss)/profit attributable to members

Net income for the period
Non-cash flows in profit from
ordinary activities
Depreciation and amortization
Impairment of capitalised
development expenditure
Impairment of Senegal
development expenditure
Remuneration-accrued in related
party borrowings
Share based payment expenses
Remuneration-non cash
Net foreign currency loss/ (gain)
Net gain on disposal of
available-for-sale assets
Net gain on disposal of
subsidiaries
Write-downs to recoverable
amount
Dividends received

Consolidated
Parent

2009
$
2008
$
2009
$
2008
$

(2,498,802)
111,887,287
9,118,835
153,323,690
347,644
2,882,070
61
-
583,683
-
29,216
539,787
-
-
-
-
1,500,211
-
1,500,211
-
260,994
-
260,994
128,454
-
69,332
-
1,352,583
(96,563)
(176,928)
(96,563)
-
(2,534,292)
-
(2,534,292)
(5,059,069) (114,462,802)
(5,669,040) (140,059,503)
-
-
-
1,212,945
-
-
-
(15,591,488)

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

Impairment loss/(gain)	-	12,890,796	(1,902,623)	14,559,680
Stock impairment loss	962,036	501,270	-	-
Interest-accrued in related party
borrowings	-	260,332	-	260,332
Impairment of available-for-sale
assets	812,350	-	812,350	-
Decrease/(increase) in trade and
other receivables	6,988,487	(475,604)	521,958	(30,327)
Decrease in inventories	139,823	12,827,400	-	-
(Decrease)/increase in trade
payables and accruals	(5,946,855)	1,333,925	(3,537,645)	2,329,740
Increase in income taxes payable	920,986	500,726	920,986	-
Increase in deferred tax
liabilities/(assets)	1,613,295	-	(623,150)	-
	884,402	27,275,750	(436,648)	15,135,419

(b) Reconciliation of cash

		Consolidated	Consolidated	Parent
		2009	2008	2009	2008
	Note	$	$	$	$
Cash at the end of the financial
year as shown in the cash flow
statement is reconciled to items in
the balance sheet as follows:
Cash on hand		3,296	57,428	-	-
Bank balances		18,021,688	185,405,129	8,282,372 179,041,872
Short-term deposits	31(g)	150,791,321	193,468	150,585,307	-
		168,816,405	185,656,025	158,867,679 179,041,872

(c) Loan facilities

As at 30 June 2009 the Group does not have any loan facilities. All facilities were transferred to Imerys in the disposal of the four Chinese subsidiaries.

(d) Non cash financing and investing activities

During the year dividends of $518,832 (2008:4,345,800) were paid by the issue of shares under the dividend reinvestment plan.

(e) Acquisition of entities

During the year Astron Limited invested $6,614,729 (2008: $12,500,000) into Chinese subsidiaries, no new subsidiaries were incorporated. Astron also acquired 100% of Coast Resources Limited, (refer note 18 (b)).

(f) Disposal of entities

There were no disposals of entities in the 2009 financial year.

On 4 February 2008 the group disposed of the Zircon group comprising four Chinese subsidiaries being Astron Chemical Co Limited, Tai Cang Astron Mining Products Co Ltd, Zibo Astron Advanced Materials Co Limited and Astron Advanced Materials Limited, Bradford Metal Industries Limited and Dalian Bradford Limited were wound up.

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

	Consolidated Parent
Disposal price Cash consideration Less Assets and liabilities held at disposal date: Investment in controlled entity Cash Receivables Inventories Property, plant and equipment Payables Net profit before other disposal costs Disposal costs Recycling of foreign exchange reserve in respect of disposal of foreign subsidiaries Net forgiveness off of intercompany balances Net gainondisposal	2009 $ 2008 $ 2009 $ 2008 $
	- 182,764,378 - 182,764,378
	- 182,764,378 - 182,764,378
	- - - 18,816,151 - 6,996,043 - - - 21,284,847 - 4,625,486 - 32,925,949 - - - 21,331,095 - - - (40,262,305) - (2,474,042)
	- 42,275,629 - 20,967,595
	- 140,488,749 - 161,796,783 - (21,737,280) - (21,737,280) - (5,670,829) - -
	- 1,618,866 - -
	- 114,699,506 - 140,059,503

(g) Restrictions on cash

The short term deposits include $50,000 of cash backed Bank Guarantees for the operations of the Donald Mineral Sands project.

Bank balances also include letter of credit deposits of $203,533 at 30 June 2009. These are pledged as collateral for letters of credit and are therefore not available for drawdown.

32. Employee Benefit Obligations

As at 30 June 2009, the majority of employees are employed in China. It is not normal business practice to remunerate employees in China with employee benefits including superannuation. Any Chinese provisions for employee entitlements at year end would be insignificant.

33. Subsequent events

The financial report was authorised for issue on 25 September 2009 by the board of directors.

There are no other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

34. Financial Instruments

(a) General objectives, policies and processes

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note. The principal financial instruments from which financial instrument risk arises are cash at bank and trade receivables and payables.

The disposal of the Chinese subsidiaries in 2008 resulted in substantial scale down of both imports and exports to and from China which significantly reduced the Group's exposure to foreign currency risk. This disposal of the Zircon businesses allowed borrowings to be assumed by the purchaser reducing the Group's exposure to interest rate risk.

The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group’s finance function. The Groups' risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the results of the Group where such impacts may be material. The Group has significant experience in its principal markets which provides the Directors with assurance as to the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The Group engages a number of external professionals to ensure compliance with best practise principles.

The overall objective of the Board is to set polices that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below:

(b) Credit risk

Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in the Group incurring a financial loss. This usually occurs when debtors or counterparties to derivative contracts fail to settle their obligations owing to the Group.

In respect of cash investments the majority of cash and cash equivalents are held with institutions with a AA-to A-credit rating.

In respect of trade receivables, there is no concentration of credit risk as the Group has a large number of customers. Group policy is that sales are only made to customers that are credit worthy. Trade receivables are predominantly situated in China.

In respect of the parent entity, credit risk also incorporates the potential exposure of the Parent to amounts owing to it by its subsidiaries.

Credit risk is managed on a group basis and reviewed regularly by management and Audit & Risk Committee. It arises from exposures to customers as well as through certain derivative financial instruments and deposits with financial institutions.

The maximum exposure to credit risk at reporting date in terms of receivables is the carrying amount of the receivables net of any provision (refer note 11(a)).

(c) Liquidity risk

Liquidity risk is the risk that the Group may encounter difficulties raising funds to meet commitments associated with financial instruments, e.g. borrowing repayments. The Group manages liquidity risk

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. As at the year end the Group had cash of $168,816,405 (2008: $185,656,025).

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements For The Year Ended 30 June 2009

Maturity analysis

Year ended 30 June 2009 Trade payables Other payables and accruals Amounts payable to other related parties Amounts payable to subsidiaries Total Non-interest bearing liabilities Total liabilities Year ended 30 June 2008 Trade payables Other payables and accruals Amounts payable to subsidiaries Total Non-interest bearing liabilities Amounts payable to other related parties Total liabilities	Consolidated Parent	Consolidated Parent
	Note Carrying Amount $ Contractual Cash flows $ < 6 months $ 6-12 months $ Carrying Amount $ Contractual Cash flows $ < 6 months $ 6-12 months $
	22 737,502 737,502 22 799,296 799,296 49,776 49,776 22 - -	737,502 - 395,268 395,268 395,268 - 799,296 - 90,003 90,003 90,003 - 49,776 - 49,776 49,776 49,776 - - - 6,534,853 6,584,853 - 6,584,853
	1,586,574 1,586,574	1,586,574 - 7,069,900 7,069,900 535,047 6,584,853
	1,586,574 1,586,574	1,586,574 - 7,069,900 7,069,900 535,047 6,584,853
	22 1,205,111 1,205,111 22 1,709,198 1,709,198 22 - -	1,205,111 - 176,393 176,393 176,393 - 1,709,198 - 313,247 313,247 313,247 - - - 2,294,770 2,294,770 - 2,294,770
	2,914,309 2,914,309	2,914,309 - 2,784,410 2,784,410 489,640 2,294,770
	3,821,807 3,821,807	3,821,807 - 3,821,807 3,821,807 3,821,807 -
	6,736,116 6,736,116	6,736,116 - 6,606,217 6,606,217 4,311,447 2,294,770

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

(d) Fair value

The fair values of

Term receivables, government and fixed interest securities and bonds are determined by discounting the cash flows, at the market interest rates of similar securities, to their present value.
Listed investments have been valued at the quoted market bid price at balance date. For unlisted investments where there is no organised financial market the fair value has been based on a reasonable estimation of the underlying net assets or discounted cash flows of the investment.
Other loans and amounts due are determined by discounting the cash flows, at market interest rates of similar borrowings to their present value.
Other assets and other liabilities approximate their carrying value.

At 30 June 2009 the aggregate fair values and carrying amounts of financial assets and financial liabilities approximate their carrying amounts.

(e) Interest rate risk

The Group manages its interest rate risk by continuously monitoring available interest rates while maintaining an overriding position of security whereby the majority of cash and cash equivalents are held with institutions with a AA-to A- credit rating.

Astron Limited

ABN 97 000 285 272

Notes to the Financial Statements

For The Year Ended 30 June 2009

The Groups' exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the tables below:

Financial Assets: Cash and cash equivalents Receivables Available-for-sale investments Total Financial Assets Financial Liabilities: Trade and sundry payables Amounts payable to related parties Total Financial Liabilities	Weighted Average Effective Interest Rate Floating Interest Rate Fixed Interest Rate Maturing within 1 Year Non-interest Bearing Total
	2009 % 2008 % 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $
	3.07 7.41 168,403,462 185,405,129 206,114 193,468 206,829 57,428 168,816,405 185,656,025 - - - - - - 1,627,332 6,936,791 1,627,332 6,936,791 - - - - - - 1,099,736 - 1,099,736 -
	168,403,462 185,405,129 206,114 193,468 2,933,897 6,994,219 171,543,473 192,592,816
	- - - - - - 1,536,798 2,914,309 1,536,798 2,914,309 - 7.50 - 3,821,807 - - 49,776 - 49,776 3,821,807
	- 3,821,807 - - 1,586,574 2,914,309 1,586,574 6,736,116

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

The Parent's exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out in the tables below:

Financial Assets: Cash and cash equivalents Receivables Available-for-sale investments Total Financial Assets Financial Liabilities: Trade and sundry payables Amounts payable to related parties Total Financial Liabilities	Weighted Average Effective Interest Rate Floating Interest Rate Fixed Interest Rate Maturing within 1 Year Non-interest Bearing Total
	2009 % 2008 % 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $ 2009 $ 2008 $
	3.05 7.4% 158,867,679 179,041,872 - - - - 158,867,679 179,041,872 - - - - - - 7,550,334 6,911,773 7,550,334 6,911,773 - - - - - - 1,099,736 - 1,099,736 -
	158,867,679 179,041,872 - - 8,650,070 6,911,773 168,517,479 185,953,645
	- - - - - - 7,069,900 2,784,410 - 2,784,410 - 7.5% - 3,821,807 - - 49,776 - 49,776 3,821,807
	- 3,821,807 - - 7,119,676 2,784,410 49,776 6,606,217

Sensitivity analysis

The following table shows the movements in profit due to higher/lower interest costs from variable interest rate financial instruments in Australia and China.

	Consolidated	Parent
Cash at bank Floating rate payable to other related parties Tax charge of 30% Total	+ 1% (100 basis points) -1% (100 basis points)	+ 1% (100 basis points) -1% (100 basis points)
	2009 $ 2008 $ 2009 $ 2008 $	2009 $ 2008 $ 2009 $ 2008 $
	1,686,096 927,026 (1,686,096) (927,026) - (19,109) - 19,109 (505,829) (272,375) 505,829 272,375	1,588,677 895,209 (1,588,677) (895,206) - (19,109) - 19,109 (476,603) (262,830) 476,603 262,830
	1,180,267 635,542 (1,180,267) (635,542)	1,112,074 613,270 (1,112,074) (613,267)

ABN 97 000 285 272

Astron Limited

Notes to the Financial Statements

For The Year Ended 30 June 2009

(f) Foreign currency risk

The Group is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and services in currencies other than the Group's measurement currency, however, this exposure has reduced following the scale down of operations after the sale of the Zircon group. The Group manages this risk through the offset of Trade receivables and payables where the majority of trading is undertaken in either the USD or Chinese Reminbi which is pegged to the USD. Current trading terms ensure that foreign currency risk is reduced by not trading on terms but cash on delivery.

The parent company does have receivables/ payables not denominated in the measurement currency being loans to subsidiaries. These loans are subject to fluctuation is the AUD/Reminbi exchange rate. The table below shows the impact on the parent company assuming a 10% increase and decrease in the AUD/Reminbi exchange rate:

	Appreciation of AUD by 10%	Appreciation of AUD by 10%	Depreciation of AUD by 10%	Depreciation of AUD by 10%
	2009 $	2008 $	2009 $	2008 $
(Decrease)/increase	(1,561,043)	-	1,561,043	-
in profit *

The Group holds the majority of its cash investments in Australian Dollars.

These loans were denominated in AUD in the prior year, therefore were not exposed to foreign

currency risk.

(g) Price risk

Given that price movements are not considered material to the Group, the Group does not have a risk management policy for price risk. However, the Group's management regularly review the risks associated with fluctuating input and output prices.

35. Company Details

(a) Registered office

Astron Limited

C/ BDO Kendalls (NSW VIC) Pty Ltd

Level 19, 2 Market Street

Sydney NSW 2000

(b) Principal places of business

China

Room 2105, Fortune Plaza Building E

No 59 Beizhen Road, Shenhe District

Shenyang China 110013

Australia

Level 29 2 Chifley Square Sydney, NSW

2000

Astron Limited

ABN 97 000 285 272

Declaration by Directors

The directors of the Group declare that:

The financial statements, comprising the income statement, balance sheet, cash flow statement, statement of changes in equity, accompanying notes, are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards and the Corporations Regulations 2001; and
(b) give a true and fair view of the financial position as at 30 June 2009 and of the performance for the year ended on that date of the company and the group;
In the directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.
The remuneration disclosures included in pages 7 to 11 of the directors’ report (as part of audited Remuneration Report), for the year ended 30 June 2009, comply with section 300A of the Corporations Act 2001.
The directors have been given the declarations by the managing director and chief financial officer required by section 295A.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

GA King

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AG Brown

==> picture [172 x 45] intentionally omitted <==

25 September 2009

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==> picture [172 x 151] intentionally omitted <==

INDEPENDENT AUDITOR’S REPORT

To the members of Astron Limited

We have audited the accompanying financial report of Astron Limited, which comprises the balance sheet as at 30 June 2009, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 2(a), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

BDO Kendalls is a national association of separate partnerships and entities. 70 Liability limited by a scheme approved under Professional Standards Legislation.

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Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 would be in the same terms if it had been given to the directors at the time that this auditor’s report was made.

Auditor’s Opinion

In our opinion:

(a) the financial report of Astron Limited is in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2009 and of their performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001 ; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 2(a).

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 7 to 11 of the directors’ report for the year ended 30 June 2009. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor’s Opinion

In our opinion, the Remuneration Report of Astron Limited for the year ended 30 June 2009, complies with section 300A of the Corporations Act 2001.

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BDO Kendalls Audit & Assurance (NSW-VIC) Pty Ltd

==> picture [114 x 32] intentionally omitted <==

Jeff Abela Director

Dated Sydney this 25[th] day of September 2009

AI assistant

ASTRON LIMITED — Annual Report 2009

64449_rns_2009-09-24_2bce955c-8c10-4f2a-8bd8-1799aac3773e.pdf

Annual Financial Statements

Astron Limited

For the Year Ended 30 June 2009

CONTENTS

Astron Limited

Directors' Report

30 June 2009

Directors

Names

Principal Activities

Financial Position

Dividends

Review of Operations

Astron Limited

Directors' Report

30 June 2009

Significant Changes in State of Affairs

Matter Subsequent to the end of the Financial Year

Likely Developments

Environmental Regulation

Astron Limited

Directors' Report

30 June 2009

Director Information

Mr. Gerard King

Mr. Alexander Brown

Astron Limited

Directors' Report

30 June 2009

Mr. Robert Flew

Astron Limited

Directors' Report

30 June 2009

Mr. Ronald McCullough

Astron Limited

Directors' Report

30 June 2009

Mdm Kang Rong

B.E.(Chem)

Mr. Matthew Suttling

Meetings of Directors

Astron Limited

Directors' Report

30 June 2009

Options

Remuneration Report-Audited

1. Policy for determining the nature and amount of Key Management Personnel remuneration

Performance based remuneration

Astron Limited

Directors' Report

30 June 2009

Company performance, shareholder wealth and directors and executives remuneration

2. Key Management Personnel

Astron Limited

Directors' Report

30 June 2009

Year ended 30 June 2009

Astron Limited

Directors' Report

30 June 2009

Year ended 30 June 2008

Note reference:

Astron Limited

Directors' Report

30 June 2009

3. Cash Bonuses

4. Share Based Payment Bonuses

5. Service Contracts

End of audited remuneration report

Indemnifying Officers or Auditors

Non-audit services

Astron Limited

Directors' Report

30 June 2009

Auditors’ Independence Declaration

Proceedings on Behalf of Company

DECLARATION OF INDEPENDENCE BY JEFF ABELA TO THE DIRECTORS OF ASTRON LIMITED

ASTRON LIMITED Annual Report 2009