ASTRON LIMITED — Interim / Quarterly Report 2012

Feb 22, 2012

Astron Limited ABN 97 000 285 272

Half Year Report ended 31 December 2011

Contents

• Corporate Directory

• Appendix 4D

• Consolidated Financial Statements

Astron Limited – Half Year Report

CORPORATE DIRECTORY

Aston Limited ABN 97 000 285 272

Directors

Mr Gerard King (Chairman) Mr Alexander Brown (Managing Director) Mr Robert Flew (Non-executive Director) Mr Ronald McCullough (Non-executive Director) Mdm Kang Rong (Executive Director)

Company Secretary

Mr Mark Nielsen

Registered Office

Level 19, 2 Market Street Sydney 2000 Australia

Australian Business Office

Level 29, 2 Chifley Square Sydney 2000 Australia Telephone: 61 2 9375 2361 Fax: 61 2 9375 2121

China Business Office

Level 18, Building B, Fortune Plaza 53 Beizhan Road, Shenhe District, Shenyang Liaoning Province, China 110016 Telephone: 86 24 3128 6222 Fax: 86 24 3128 6222

Bankers

Commonwealth Bank of Australia 48 Martin Place Sydney NSW 2000

Share Registrar

Computershare Investor Services Limited Level 3, 60 Carrington Street Sydney NSW 2001 Telephone: 61 2 8234 5000

Auditors

BDO Level 19, 2 Market Street Sydney NSW 2000

Internet Address www.astronlimited.com

2

Astron Limited – Half Year Report Appendix 4D

HALF YEAR INFORMATION GIVEN TO THE ASX UNDER LISTING RULE 4.2A

Name of entity
			ASTRON LIMITED
ABN
			97	000 285 272
Reporting period				Previous corresponding period
Half Year ended 31 December 2011				Half Year ended 31 December 2010

The information contained in this report should be read in conjunction with the most recent annual financial report.

3

1. RESULTS FOR ANNOUNCEMENT TO THE MARKET
Total revenue from operations Up 15% to $12,361,478
Revenue from trading operations Up 83% to $8,242,104
Net profit before tax attributable to members Down 52% to $1,152,413
Net asset value per share Up 1% to $3.26
2. REVIEW OF OPERATIONS
A review of operations is included in the Directors’ Report.
3. DETAILS OF CONTROLLED ENTITIES
Save for the incorporation of Astron Corporation Limited (a Hong Kong company), as a wholly owned subsidiary of Astron Limited, during the period the Group did not gain or lose control of any entities.
4. DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES
The group has no associates or joint venture entities.
5. DIVIDENDS
No dividend was paid or proposed for the period to 31 December 2011 or the comparative period.
6. AUDIT DISPUTES OR QUALIFICATIONS
There are no audit disputes or qualifications.
7. ACCOUNTING STANDARDS
Australian Accounting Standards have been used in complying the information contained in Appendix 4D.

4

Astron Limited and its Subsidiaries ABN 97 000 285 272

Consolidated Financial Statements

For the Half Year Ended 31 December 2011

5

Astron Limited and its Subsidiaries ABN 97 000 285 272

Consolidated Financial Statements

For the Period Ended 31 December 2011

CONTENTS	Page
Directors' Report	7
Auditor's Independence Declaration	10
Consolidated Statement of Comprehensive Income	11
Consolidated Statement of Financial Position	13
Consolidated Statement of Changes in Equity	14
Consolidated Statement of Cash Flows	15
Notes to the Consolidated Financial Statements	16
Declaration by Directors	22
Independent Review Report	23

6

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Directors' Report

31 December 2011

Your directors present their report on the consolidated entity consisting of Astron Limited and its subsidiaries (the Group) at the end of, or during, the half-year ended 31 December 2011.

1. DIRECTORS

The directors in office at any time during, or since the end of, the period are:

Mr Gerard King Mr Alexander Brown Mr Robert Flew Mr Ronald McCullough Mdm Kang Rong

2. BUSINESS REVIEW

Overview

Astron Limited is the Group’s holding company. Astron has one wholly owned Australian operating subsidiary, Donald Mineral Sands Pty Limited (DMS) and two operating Chinese subsidiaries, Yingkou Mineral Resources Company Limited (Resources) and Astron Titanium Yingkou Company Limited (Titanium). DMS holds the Donald Mineral Sands mining project (Donald).

Review of financials

Income statement

Total revenue increased by 15% to $12,361,478. The increase in revenue is attributable to an increase in revenue from materials trading.

Trading revenue and gross profit for the period increased by 83% to $8,242,104 and by 612% to $2,764,561 respectively. These increases were attributable to the Group actively purchasing stock to take advantage of increasing titanium feedstock selling prices.

Non trading related operating expenses increased by $1,246,404. The increase arises from costs incurred in relation to the proposed re-domiciliation of the Group as announced on 25 January 2012 and research and development expenses incurred in China.

Profit before tax for the six months decreased by $1,244,131 from $2,396,544 to $1,152,413. This decrease can be explained by the additional expenditure incurred in connection with the proposed re-domiciliation and in the comparative period proceeds of $1,080,000 from the settlement of the Matilida legal matter which was included in other income.

Income tax expense comprises current tax of $671,518 and deferred tax of $241,915. The increase in deferred tax provided corresponds with the increase in Donald’s capitalised development expenditure.

Balance sheet

Cash

Cash and term deposits decreased by $19,393,259 from 30 June 2011 to the end of the current period. The largest individual items of spend were the purchase of water rights for Donald of $17,937,500, the construction of pilot plants at our Yingkou site in China of $1,142,098 and the share buy back of $1,763,202.

7

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Directors' Report

31 December 2011

Current assets

Stock and debtors increased by $764,416 primarily as a result of an increase in stock holdings to take advantage increasing prices. The benefit of this strategy is evidenced by improved margins from trading activity during the six months to 31 December 2011.

Non-current assets

The increase in intangible assets from 30 June 2011 arises from Donald and Niafarang (Senegal) project development expenditure capitalised in terms of AASB6 and the purchase of the water rights from Grampians Wimmera Mallee Water Authority (GWMW).

The increase in the foreign currency translation reserve of $1,690,324 arises from the impact of depreciation of the Australian Dollar relevant to the Yuan on the translation of the foreign operations.

The net asset value per share has increased by 1% to $3.26. This movement can mainly be attributed to increase in the foreign currency reserve as explained above.

Review of operations

Donald Mining Project

The development of the Donald and Niafarang projects continued during the period under review. The following milestones were achieved:

Water

• In November 2011, DMS acquired an annual water allowance of 6,975 ML of water for a period 25 years from the GWMW. DMS has the option, subject to the approval of GWMW, to extend the term of the allowance for an additional 25 years. The total purchase consideration of the 6,975 ML allowance was $17,937,500.

Feasibility study

• Work continued on the feasibility study including further work on more accurately defining operating and capital expenditure.

Exploration

• In December 2011, Astron announced that the inclusion of recent drilling results and the subsequent re-modelling of exploration licences 4433 and 4432 and mining licence 5532.

Work plan

• The work plan was submitted to Victorian Department of Primary Industries. This includes the completion of phase 1 of the Cultural Heritage Management Plan.

Niafarang project Senegal

• The Group was re-awarded an exploration licence until 26 November 2013.

Going forward

With the appointment of Hayden Stockdale as Chief Executive Officer and the proposed re-domiciliation to Hong Kong, Astron will commence an active investor relations programme during the first quarter of the 2012 calendar year.

During the second half of the 2012 financial year a decision should be made on the final location of the processing plants. This together with the resolution of technical issues and forecast selling prices should enable the company to finalise its feasibility study. The market for zircon and titanium feedstock materials remains positive with high current and forecast product prices predicted. Astron’s intention is to progress Donald timeously in order to take advantage of these favourable market conditions.

8

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Directors' Report

31 December 2011

3. AUDITOR’S INDEPENDENCE DECLARATION

A copy of the independence declaration by the lead auditor under section 307C is included on Page 10 to these half-year financial statements.

Signed in accordance with a resolution of the Board of Directors and is signed for and behalf of the Directors by:

Chairman:

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Mr Gerard King

Dated this 23rd day of February 2012

9

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

As lead auditor for the review of Astron Limited for the half-year ended 31 December 2011, 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 review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

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 Audit (NSW-VIC) Pty Ltd Sydney, 23 February 2012

10

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Consolidated Statement of Comprehensive Income

For the Half Year Ended 31 December 2011

Note Revenue from continuing operations Cost of sales Gross profit Other revenue Distribution costs Marketing costs Occupancy costs Administrative costs Development costs Impairment of available-for-sale financial assets Costs associated with Gambian and Senegal Investments Other expenses Profit before income tax expense Income tax expense Net profit for the half year 2 Other comprehensive loss Exchange difference on translation of foreign operations (Decrease) / increase in fair value of available-for-sale financial assets Other comprehensive profit / (loss) for the half year, net of tax Total comprehensive profit / (loss) for the half year Profit for the half year is attributable to: Owners of Astron Limited Total comprehensive (profit)/loss for the half year is attributable to: Owners of Astron Limited

Half-Year Ended 31 December 2011 $ Half-Year Ended 31 December 2010 $ 8,242,104 4,504,036 (5,477,543) (4,116,292) 2,764,561 387,744 4,119,374 6,206,899 (125,100) (150,786) (56,774) (47,656) (47,667) (39,407) (3,773,363) (2,526,959) - (38,787) (145,473) - (1,360,529) (1,368,908) (222,616) (25,596) 1,152,413 2,396,544 (913,433) (1,201,013) 238,980 1,195,531 1,690,324 (4,952,439) (869,714) 1,851,242 820,610 (3,101,197) 1,059,590 (1,905,666) 238,980 1,195,531 1,059,590 (1,905,666)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

11

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Consolidated Statement of Comprehensive Income

For the Half Year Ended 31 December 2011

	Half-Year Ended	Half-Year Ended
	31 December	31 December
	2011	2010
Attributable to owners of Astron Limited
Basic earnings per share (cents per share)	0.39	1.86
Diluted earnings per share (cents per share)	0.39	1.86
From profit from continuing operations attributable to owners of Astron Limited
Basic earnings per share (cents per share)	0.39	1.86
Diluted earnings per share (cents per share)	0.39	1.86

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

12

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Consolidated Statement of Financial Position

As at 31 December 2011

	Note	As at 31 December 2011	As at 30 June 2011
		$	$
ASSETS
Current assets
Cash and cash equivalents		44,033,425	87,110,656
Term deposits greater than 90 days		84,017,809	60,333,837
Trade and other receivables		6,765,159	7,479,528
Inventories		5,164,425	3,685,640
Available-for-sale financial assets		1,988,071	2,480,042
Total current assets		141,968,889	161,089,703
Non-current assets
Property, plant and equipment		14,663,794	12,386,037
Intangible assets		46,357,715	26,950,894
Land use rights		8,736,114	8,352,354
Total non-current assets		69,757,623	47,689,285
TOTAL ASSETS		211,726,512	208,778,988
LIABILITIES
Current liabilities
Trade and other payables		5,156,609	2,154,267
Current tax liabilities		628,397	221,518
Provisions		18,546	18,546
Total current liabilities		5,803,552	2,394,331
Non-current liabilities
Deferred Tax Liabilities		4,816,324	4,574,409
Long-term Provisions		40,000	40,000
Total non-current liabilities		4,856,324	4,614,409
TOTAL LIABILITIES		10,659,876	7,008,740
NET ASSETS		201,066,636	201,770,248
EQUITY
Contributed equity
Share capital	6	31,394,380	33,157,582
Reserves		2,501,869	1,681,259
Retained earnings		167,170,387	166,931,407
CAPITAL AND RESERVES ATTRIBUTABLE TO THE OWNERS OF ASTRON LIMITED		201,066,636	201,770,248

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

13

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Consolidated Statement of Changes in Equity

As at 31 December 2011

	Ordinary Shares $ Retained Earnings $ Financial Assets Available For Sale Reserve $ Foreign Currency Translation Reserve $ Total Equity $
Period Ended 31 December 2011 Equity as at 1 July 2011 Profit for the half year Other comprehensive income Decrease in fair value of available-for-sale financial assets Exchange differences on translation of foreign operations Total comprehensive profit for the half year Shares repurchased during the year Transactions with owners in their capacity as owners	33,157,582 166,931,407 1,814,331 (133,072) 201,770,248
	- 238,980 - - 238,980 - - (869,714) - (869,714) - - - 1,690,324 1,690,324
	- 238,980 (869,714) 1,690,324 1,059,590
	(1,763,202) - - - (1,763,202)
	(1,763,202) - - - (1,763,202)
Equity as at 31 December 2011	31,394,380 167,170,387 944,617 1,557,252 201,066,636

	Ordinary Shares	Retained Earnings	Financial Assets Available For Sale Reserve	Foreign Currency Translation Reserve	Total Equity
	$	$	$	$	$
Period Ended 31 December 2010
Equity as at 1 July 2010	38,216,239	166,048,756	-	5,476,409	209,741,404
Profit for the half year	-	1,195,531	-	-	1,195,531
Other comprehensive income
Increase in fair value of available-for-sale financial assets	-	-	1,851,242	-	1,851,242
Exchange differences on translation of foreign operations	-	-		(4,952,439)	(4,952,439)
Total comprehensive income for the half year	-	1,195,531	1,851,242	(4,952,439)	(1,905,666)
Shares repurchased during the year	(178,327)	-	-	-	(178,327)
Transactions with owners in their capacity as
owners	(178,327)	-	-	-	(178,327)
Equity as at 31 December 2010	38,037,912	167,244,287	1,851,242	523,970	207,657,411

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

14

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2011

	Half-Year Ended	Half-Year Ended	Half-Year Ended
	31 December		31 December
	2011		2010
	$		$
Cash generated from operating activities
Receipts from customers	8,028,560		4,612,330
Payments to suppliers and employees	(9,207,051)		(8,496,262)
Other receipts	(87,903)		1,160,623
Interest received	4,307,583		4,236,905
Interest paid	(17,935)		(17,343)
Income taxes paid	(264,639)		(208,109)
Net cashgenerated from operating activities	2,758,615		1,288,144
Cash flows from investing activities
Acquisition of property, plant and equipment	(1,180,631)		(2,747,356)
Development expenditure	(19,411,114)		(2,892,917)
Refund for cancellation of acquisition of mining licence	500,000		-
Acquisition of available for sale financial assets	(523,216)		-
Investmentsinshort termdeposits	(23,683,971)		(1,559,307)
Net cash utilised by investing activities	(44,298,932)		(7,199,580)
Cash flows from financing activities
Payments for the repurchase of shares	(1,763,202)		(178,327)
Net cash utilised by financing activities	(1,763,202)		(178,327)
Net (decrease)/increase in cash and cash equivalents	(43,303,519)		(6,089,763)
Cash and cash equivalents at beginning of period	87,110,656		113,759,616
Effect ofexchangerates oncash heldin foreigncurrencies at beginning ofperiod	226,288		(1,546,097)
Cash and cash equivalents at end ofperiod	44,033,425		106,123,756

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

15

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2011

1 Statement of significant accounting policies

These general purpose financial statements for the half-year reporting period ended 31 December 2011 have been prepared in accordance with Australian Accounting Standard 134 "Interim Financial Reporting" and the Corporations Act 2001.

The historical cost basis has been used, except for available-for-sale financial assets which have been measured at fair value.

These half-year financial statements do not include all the notes of the type normally included in annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the annual financial statements for the year ended 30 June 2011 and any public announcements made by Astron Limited during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The same accounting policies and methods of computation have been followed in these half-year financial statements as compared with the most recent annual financial statements.

2 Profit for the half year

	31 December	31 December
The following significant revenue and expense items are relevant to explaining	2011	2010
the financial performance	$	$
Interest revenue	4,032,896	4,316,349
Revenue from legal settlement	-	1,080,000
Foreign exchange (loss) / gain	(174,381)	520,506
Impairment of fair value on available-for-sale financial assets	(145,473)	-
Impairment of capitalised development expenditure	-	(38,787)
Costs associated with Gambian and Senegal Investments	(1,360,529)	(1,368,908)
Interest paid	(17,935)	(17,343)
Research and development expenditure	(524,170)	(107,352)
Dividends
Dividends paid for during the half year:
	31 December	31 December
	2011	2010
	$	$
Final unfranked dividend of NIL (2010: NIL) per share	-	-

3 Dividends

4 Seasonality and irregular trends

No seasonal or irregular trends were noted during the review period.

16

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2011

5 Contingent liabilities and assets

Land use rights

In 2008, Titanium acquired a 50 year land use right from the Chinese government. The Group is discussing possible changes to the usage rights with the Government. As at 31 December 2011 the net book value of this land is $7,573,593 (30 June 2011: $7,241,130).

The intention for the land use right held by Resources is currently being evaluated. As at 31 December 2011 the net book value of the land is $1,162,521 (30 June 2011: $1,111,224).

The Directors believe that no significant loss, if any, will be incurred by the Group in relation to the above land use rights.

Water Licence Fee

The Group is currently in the process of negotiating the quantum of the annual licence fee payable in respect of the water allowance acquired from GWMW in December 2011.

Minimum expenditure on Exploration and Mining Licenses

To maintain the Exploration and Mining Licenses the Group is required to spend $2,206,555 on development over the next year (2010: $2,248,090). The minimum expenditure amount per annum will normally increase over the life of an exploration licence. The minimum expenditure on mining licence 5532 is $556,800 per annum. The amount of this expenditure could be reduced should the Group decide to relinquish land.

6 Issued share capital

	31 December	30 June
	2011	2011
	$	$
61,708,807 (2010: 62,294,366) Fully Paid Ordinary Shares – no par value	31,394,380	33,157,582
Total	31,394,380	33,157,582
Issues and repurchases of Ordinary Shares during the half year
	31 December	30 June
	2011	2011
	No.	No.
At the beginning of reporting period	62,294,366	64,232,223
Shares issued during the period
- Shares bought back during the period	(585,559)	(1,937,857)
Atreporting date	61,708,807	62,294,366

7 Subsequent events

There were no material events subsequent to 31 December 2011.

8 Subsidiaries

Save for the incorporation of Astron Corporation Limited, during the current or the prior half year periods Astron did not acquire

17

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2011

or dispose of any subsidiary companies.

9 Segment information

(a) Business segments

The Group has adopted AASB 8 Operating Segments whereby segment information is presented using a 'management approach', i.e. segment information is provided on the same basis as information used for internal reporting purposes by the managing director (chief operating decision maker) who monitors the segment performance based on the net profit before tax for the period. Operating segments have been determined on the basis of reports reviewed by the managing director who is considered to be the chief operating decision maker of the Group. The reportable segments are as follows:

• Astron Corporate: Group treasury and head office activities

• Donald Mineral Sands: development of the Donald Mineral Sands Mine

• Titanium: Development of mineral processing plant and mineral trading

• Mineral Resources: Mineral trading and construction of the mineral separation plant

18

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2011

9 Segment information (cont)

(b) Segment information

Segment information provided to the managing director for the half-year ended 31 December 2011 is as follows:

31 December	Astron Corporate	Astron Corporate	Donald Mineral Sands	Donald Mineral Sands	Mineral Resources	Mineral Resources	Titanium	Titanium	Total of Continuing Operations	Total of Continuing Operations	Consolidated	Consolidated
	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011	2010
	$	$	$	$	$	$	$	$	$	$	$	$
Revenue from external customers Sales Interest revenue Rent Other income	- 4,022,112 - -	- 4,272,312 - 1,289,422	- 6,196 46,649 -	- 2,732 5,922 -	6,753,084 2,003 - 30,603	3,821,061 4,872 - 74,700	1,489,020 2,585 - 9,226	682,975 36,433 - 520,506	8,242,104 4,032,896 46,649 39,829	4,504,036 4,316,349 5,922 1,884,628	8,242,104 4,032,896 46,649 39,829	4,504,036 4,316,349 5,922 1,884,628
Total revenue	4,022,112	5,561,734	52,845	8,654	6,785,690	3,900,633	1,500,831	1,239,914	12,361,478	10,710,935	12,361,478	10,710,935
Segment result Segment profit/(loss) Intersegment elimination Profit before tax Income tax expense	581,135	2,841,166	52,845	8,654	827,105	(765,247)	(308,672)	311,971	1,152,413	2,396,544	1,152,413	2,396,544
									1,152,413 (913,433)	2,396,544 (1,201,013)	1,152,413 (913,433)	2,396,544 (1,201,013)
Net profit for the period									238,980	1,195,531	238,980	1,195,531

19

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2011

b) Segment information (cont’d)

2011	Astron Corporate	Astron Corporate	Donald Mineral Sands	Donald Mineral Sands	Mineral Resources	Mineral Resources	Titanium	Titanium	Total of Continuing Operations	Total of Continuing Operations	Consolidated	Consolidated
	31-Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun
	$	$	$	$	$	$	$	$	$	$	$	$
Assets Segment assets	127,492,204	147,178,149	49,139,018	30,078,972	18,185,130	14,351,836	16,910,160	17,170,031	211,726,512	208,778,988	211,726,512	208,778,988
Total segment assets	127,492,204	147,178,149	49,139,018	30,078,972	18,185,130	14,351,836	16,910,160	17,170,031	211,726,512	208,778,988	211,726,512	208,778,988
Liabilities Segment liabilities	2,266,229	1,431,911	4,584,662	4,015,550	2,764,773	1,157,916	1,044,212	403,363	10,659,876	7,008,740	10,659,876	7,008,740
Total segment liabilities	2,266,229	1,431,911	4,584,662	4,015,550	2,764,773	1,157,916	1,044,212	403,363	10,659,876	7,008,740	10,659,876	7,008,740

20

Astron Limited and its Subsidiaries

ABN 97 000 285 272

Notes to the Consolidated Financial Statements

For the Period Ended 31 December 2011

10 Discontinued Operations

During the half year periods to 31 December 2011 and 31 December 2010 no operations were discontinued.

11 Revisions of Estimates

During the half year period to 31 December 2011 there were no changes or revisions of estimates.

21

Astron Limited

ABN 97 000 285 272

Declaration by Directors

The directors of the Company declare that:

1. the financial statements and notes, as set out on pages 11 to 21, are in accordance with the Corporations Act 2001 and:

2. (a) comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 ; and

3. (b) give a true and fair view of the financial position of the consolidated entity as at 31 December 2011 and of its performance for the half year ended on that date.

4. In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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:

Chairman

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Mr Gerard King

Dated 23rd February 2012

22

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Astron Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Astron Limited, which comprises the statement of financial position as at 31 December 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the halfyear ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the disclosing entity and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the disclosing entity are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Astron Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Astron Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Astron Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 .

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BDO Audit (NSW-VIC) Pty Ltd

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Jeff Abela Director

Sydney, 23 February 2012

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