Berkeley Energia Limited

Earnings Release • Mar 14, 2013

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RNS Number : 9880Z

Berkeley Resources Limited

14 March 2013

BERKELEY RESOURCES LIMITED

Interim Financial Report

for the Half Year Ended

31 December 2012

abn 40 052 468 569

CORPORATE DIRECTORY

Directors Mr Ian Middlemas - Non-Executive Chairman Dr James Ross - Non-Executive Deputy Chairman Mr Robert Behets - Non-Executive Director Company Secretary Mr Clint McGhie Registered Office Level 9, BGC Centre 28 The Esplanade Perth  WA   6000 Australia Telephone:        +61 8 9322 6322 Facsimile:         +61 8 9322 6558 Spanish Office Berkeley Minera Espana, S.A. Carretera SA-451, Km 30 37495 Retortillo Salamanca Spain Telephone:   +34 923 193 903 Auditor Stantons International Website www.berkeleyresources.com.au Email [email protected]	Share Registry Australia Computershare Investor Services Pty Ltd Level 2 45 St George's Terrace Perth  WA   6000 Telephone:       +61 8 9323 2000 Facsimile:        +61 8 9323 2033 United Kingdom Computershare Investor Services Plc PO Box 82 The Pavillions Bridgwater Road Bristol BS99 7NH Telephone:       +44 870 889 3105 Stock Exchange Listing Australia Australian Securities Exchange Home Branch - Perth 2 The Esplanade Perth   WA   6000 United Kingdom London Stock Exchange - AIM 10 Paternoster Square London EC4M 7LS ASX Code BKY - Fully paid ordinary shares BKYO - $0.75 Listed Option AIM TIDM BKY - Fully paid ordinary shares

CONTENTS
	Page
Directors' Report	1
Directors' Declaration	7
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	8
Condensed Consolidated Statement of Financial Position	9
Condensed Consolidated Statement of Changes in Equity	10
Condensed Consolidated Statement of Cash Flows	11
Notes to the Financial Statements	12

The Auditor's Independence Declaration and the Independent Auditor's Report are available in the full version of the Interim Financial Report on Berkeley Resources Limited's website at:

www.berkeleyresources.com.au.

The Board of Directors of Berkeley Resources Limited present their report on the consolidated entity of Berkeley Resources Limited ("the Company" or "Berkeley") and the entities it controlled during the half year ended 31 December 2012 ("Consolidated Entity").

DIRECTORS

The names of the Directors of Berkeley in office during the half year and until the date of this report are:

Mr Ian Middlemas

Dr James Ross

Mr Robert Behets

Mr Matthew Syme (Resigned 2 August 2012)

Señor Jose Ramon Esteruelas (Resigned 29 November 2012)

Unless otherwise disclosed, Directors were in office from the beginning of the half year until the date of this report.

REVIEW OF OPERATIONS AND ACTIVITIES

Berkeley is a uranium exploration and development company with a quality resource base in Spain. The Company has a 100% interest in a total Mineral Resource estimated at 61.0 million pounds of contained U3O8 with an average grade of 430 ppm (at a cut-off grade of 200 ppm U3O8).

During the half year, the Company focused on advancing its wholly owned flagship Salamanca Project, which comprises the Retortillo and Alameda deposits plus a number of other Satellite deposits, through the development phase.

The results of a Scoping Study completed in late 2012 confirmed the technical and economic viability of the Salamanca Project and its potential to support a significant scale, long life uranium mining operation. Accordingly, the Company has commenced a Pre-Feasibility Study ('PFS').

Highlights during, and subsequent to, the financial year end include:

(i)    A positive Scoping Study for the Salamanca Project

The Company announced the results of a positive Scoping Study in November which confirmed the technical and economic viability of the Salamanca Project, including:

Ø Initial mine life of 11 years, including 7 years steady state operation, with strong potential to increase;

Ø Steady state annual production of 3.2 million pounds U3O8, with average annual production of 2.6 million pounds U3O8 over the life of mine;

Ø Life of mine average operating costs of US$25.65 per pound of U3O8;

Ø Upfront capital cost of US$83.6 million to deliver initial production. A further US$95.0 million, incurred in the second year of production and largely funded from operating cashflow, to achieve steady state operation.

(ii)   Commencement of Pre-Feasibility Study

Pre-Feasibility Study commenced, targeting completion in the third quarter of 2013. The study was awarded to Johannesburg based SENET, who will be assisted by SRK Consulting for mine design, Knight Piesold for heap design and Duro Felguera for the in-country project cost estimates. Additional testwork is also being carried out at the Mintek facilities in Johannesburg and ANSTO laboratories in Sydney.

(iii)  Advancement of Permitting

The permitting process for Retortillo continued to advance with the Company's responses to the submissions received during the 30 day Public Information Period being delivered to the relevant authorities for their review and evaluation. The Nuclear Safety Council has also confirmed that all required information for the preparation of their compulsory report regarding the mining activities, and for the Initial Authorization of the process plant as a radioactive facility has been submitted.

The permitting process for Alameda was initiated with the submission to the relevant authorities of the Environmental Scoping Document and documentation associated with the application for reclassification (from rural to industrial use) of the affected surface land area.

(iv)   Resource Update

An updated Mineral Resource Estimate ('MRE') for Gambuta estimated at 12.7 million tonnes averaging 394 ppm U3O8 for a contained 11.1 million pounds of U3O8 at a lower cut-off grade of 200 ppm U3O8 was reported in October.

As at the date of this report, the Company has a 100% interest in a total Mineral Resource estimated at 61.0 million pounds of contained U3O8 with an average grade of 430 ppm (at a cut-off grade of 200 ppm U3O8).

Salamanca Project

The Salamanca Project ('the Project') comprises the Retortillo, Alameda and Gambuta deposits plus a number of other Satellite deposits located in western Spain.

The results of a PFS completed in early 2012 confirmed the technical and economic viability of a stand-alone project exploiting Retortillo, whilst Alameda formed part of a separate Feasibility Study completed in 2011.

In November 2012, the Company completed an initial assessment of the integrated development of Retortillo and Alameda and reported the results of the Scoping Study ('the Study'). 

The Study was managed by Berkeley with input from a number of industry-recognised specialist consultants covering the key disciplines. The Study incorporated all of the information generated from the previous studies conducted on Retortillo and Alameda, as well as additional drilling and metallurgical testwork data.

Scoping Study Results

Using only the current Mineral Resource Estimates for Retortillo and Alameda, which total 33.9 million pounds U3O8 (35.9 million tonnes at 429 ppm; 200 ppm U3O8 cut-off grade), as a base case scenario, the Project can support an average annual production of 3.2 million pounds of U3O8 during the seven years of steady state operation and 2.6 million pounds of U3O8 over a minimum eleven year mine life. There is strong potential to increase the production profile and mine life through the exploitation of additional resources held by the Company (totalling 27.1 million pounds U3O8) and with ongoing exploration work.

The Study was based on open pit mining, heap leaching, a centralised process plant at Retortillo, and a remote ion exchange operation at Alameda, with loaded resin trucked to the centralised plant for final extraction and purification. The Company currently favours a contractor mining scenario. The average annual ore processing rate during steady state operation is 5.5 million tonnes. Operating cost estimates average US$25.65 per pound U3O8 over the life of mine.

The initial capital cost (nominally ± 30% accuracy) for the Project is estimated at US$83.6 million. This cost is inclusive of all mine, processing, infrastructure and indirect costs required to develop and commence production at Retortillo. A further US$95.0 million of capital, incurred in the second year of production and largely funded from operating cashflow, is required to develop Alameda and achieve steady state operation. The Project's capital cost reflects the excellent existing infrastructure, use of heap leaching as the preferred processing route, and the favoured mining contractor scenario (no mining fleet capital expenditure).

The Directors are encouraged by the positive results of the Scoping Study which clearly demonstrate the potential of the integrated Salamanca Project to support a significant scale, long life uranium mining operation. Further details on the Study are available in the Company's ASX Announcement dated 29 November 2012.

PFS

Following completion of the Scoping Study, Berkeley commenced a PFS for the Salamanca Project. The PFS was awarded to the Johannesburg based company SENET, which will develop the study assisted by SRK Consulting for the mine design, Knight Piesold for the heaps design and Duro Felguera for the in-country project cost estimates.

The Company will undertake a more detailed mine scheduling and materials movement optimisation study, metallurgical testwork program and infrastructure assessment during the PFS phase, with the aim of identifying opportunities to further enhance the Project economics through capital and operating cost reductions. Resource infill and exploration drilling programs aimed at upgrading the resource classification and increasing the overall resource base also form part of the Study.

The PFS will be carried out with a confidence level of ±20% for both the capital and operating cost estimates and will include the design details required to be submitted to the Spanish Nuclear Safety Council as part of the Authorization for Construction process for the processing plant.

Further metallurgical testwork will be carried out at the Mintek laboratories in Johannesburg and the Australian Nuclear Science and Technology Organisation ('ANSTO') facilities in Sydney.

The testwork program at Mintek aims to confirm the leaching efficiency for each phase of the mine schedule and test ore variability with respect to size distribution and geo-mechanical behaviour. The ANSTO testwork program is designed to facilitate the selection of the optimal backend of the process, with the performance of direct Solvent Extraction ('SX') and ammonium diuranate ('ADU') precipitation being compared to ion exchange ('IX') and UO4 precipitation.

Exploration and Drilling

Drilling activity during the half year included diamond drilling ('DD') at Retortillo and Alameda for resource definition, to provide drill core for metallurgical testwork and to provide drill core for geotechnical testwork. Details of the 1,949 metres of DD completed are summarised in Table 1.

Table 1:  2012 Drilling Summary

	DD Q3 2012		DD Q4 2012		DD Total
	Holes	Metres	Holes	Metres	Holes	Metres
Retortillo	1	70	19	963	20	1,033
Alameda	1	44	18	872	19	916
Gambuta	-	-	-	-	-	-
Total	2	114	37	1,836	39	1,949

Mineral Resources

The current MRE's for all deposits is tabulated below (using a 200ppm U3O8 cut-off grade) incorporating the results from the recent drilling campaigns and together with previously obtained information. 

Table 2: Berkeley Resources - Mineral Resource Statement as at December 2012 (using 200ppm U3O8 Cutoff)
SUMMARY RESOURCES	Resource Category	Tonnes (Mt)	U3O8 Grade (ppm)	U3O8 (t)	U3O8 (Mlbs)
Retortillo	Indicated	8.9	395	3,535	7.8
	Inferred	6.2	366	2,274	5.0
	TOTAL	15.2	383	5,810	12.8
Alameda	Indicated	20.0	455	9,107	20.1
	Inferred	0.7	657	468	1.0
	TOTAL	20.7	462	9,576	21.1
Other Satellite Deposits	Inferred	28.5	431	12,288	27.1
TOTAL RESOURCES	Indicated	29.0	437	12,643	27.9
Inferred	35.4	424	15,031	33.1
	TOTAL	64.4	430	27,674	61.0

Permitting

The permitting process at Retortillo continues to advance. During the half year, a 30 day Public Information Period was held (completed in mid September) and the Company's responses to the submissions received were delivered to the relevant authorities for their review and evaluation. Follow-up discussions regarding appropriate mitigation measures have been held with the authorities. It is anticipated that the Project will be raised for mining and environmental approval within the first half of 2013.

The Initial Authorisation for the process plant as a radioactive facility is well advanced. The Nuclear Safety Council has informed Berkeley that they have all required information for the preparation of their compulsory report regarding the mining activities, and also for the Initial Authorization of the process plant as a radioactive facility. Both are anticipated during the June quarter of 2013.

Ancillary permits, such as those associated with water and roads, are also currently being advanced. Discussions have been held with the relevant authorities (including the Water Authority and Roads Department) and the required documentation submitted. 

At Alameda, the Environmental Scoping Document and the documentation associated with the change of the zoning of rural land into that suitable for industrial purposes were submitted in November and December, respectively. The Exploitation Plan, Rehabilitation and Closure Plans and documents related to Radiological Protection will be prepared based on the design developed as part of the PFS, targeting submission of these documents by mid 2013.

Corporate

At 31 December 2012, the Group had cash reserves of A$32.5 million, with no debt. This puts the Group in a strong financial position as it looks to complete the PFS and progress the development of the Salamanca Project.

During the half year, Mr Matthew Syme and Senor Jose Ramon Esteruelas resigned as Non-Executive Directors of the Company, effective 2 August 2012 and 29 November 2012 respectively.

On 9 November 2012, the Company issued 750,000 $0.475 Incentive Options to a key employee of the Company. The options expire 22 December 2015 and 375,000 vest on 12 December 2013 and 375,000 vest on 12 December 2014.

In July 2012, Berkeley reached agreement with ENUSA on terms which provide the Company with a 100% interest in select uranium resources within State Reserves held by ENUSA.

Under the agreement, Berkeley holds a 100% interest in, and the exploitation rights to, State Reserves 28 and 29 (which include the substantial unmined Alameda deposit) whilst waiving its rights to mine in State Reserves where ENUSA has undertaken rehabilitation. Refer to ASX Announcement dated 24 July 2012 for further details.

Operating Results

The net operating loss after tax for the half year ended 31 December 2012 was $5,373,394 (2011: $8,752,860). 

The loss for the period includes $5,640,251 (2011: $9,524,027) in exploration and evaluation expenditure and share based payment expenses of $142,952 (2011: $129,824) were also recognised during the half year.

SIGNIFICANT POST BALANCE DATE EVENTS

At the date of this report there were no significant events occurring after balance date requiring disclosure.

AUDITOR'S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, Stantons International, to provide the Directors of Berkeley Resources Limited with an Independence Declaration in relation to the review of the half year financial report.  This Independence Declaration is on page 17 and forms part of this Directors' Report.

Signed in accordance with a resolution of Directors.

Robert Behets

Non-Executive Director

14 March 2013

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Craig Gwatkin, who is a Member of The Australian Institute of Mining and Metallurgy and is an employee of Berkeley Resources Limited.  Mr. Gwatkin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.  Mr. Gwatkin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

In accordance with a resolution of the Directors of Berkeley Resources Limited, I state that:

In the opinion of the Directors:

(a)      the financial statements and notes, as set out on pages 8 to 16, are in accordance with the Corporations Act 2001, including:

(i)       complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and

(ii)      giving a true and fair view of the consolidated entity's financial position as at 31 December 2012 and of its performance for the half year ended on that date.

(b)      there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board

Robert Behets

Non-Executive Director

14 March 2013

	Note	Half Year Ended 31 December 2012 $	*Half Year Ended 31 December 2011 $*
Revenue from continuing operations	5	850,849	1,367,406
Exploration and evaluation costs		(5,640,251)	(9,524,027)
Corporate and administration costs		(440,038)	(466,415)
Share based payments expense		(142,952)	(129,824)
Loss on Sale of Asset		(1,002)	-
Loss before income tax		(5,373,394)	(8,752,860)
Income tax expense		-	-
Loss for the half year attributable to Members of Berkeley Resources Limited		(5,373,394)	(8,752,860)
Other comprehensive income, net of income tax:
Items that will not be reclassified subsequently to profit or loss		-	-
Items that may be reclassified subsequently to profit or loss
Exchange differences arising on translation of foreign operations		319,225	263,195
Other comprehensive income/(loss) for the period, net of income tax		319,225	263,195
Total comprehensive loss for the half year attributable to Members of Berkeley Resources Limited		(5,054,169)	(8,489,665)
Earnings per share
Basic earnings per share (cents per share)		(3.00)	(5.02)
Diluted earnings per share (cents per share)		(3.00)	(5.02)

The above Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

	Note	31 December 2012 $	30 June 2012 $
ASSETS
Current Assets
Cash and cash equivalents		32,520,667	37,716,585
Trade and other receivables		597,682	621,269
Prepaid Expenditure		-	85,256
Total Current Assets		33,118,349	38,423,110
Non-current Assets
Exploration expenditure	6	13,293,060	13,011,723
Property, plant and equipment		1,708,105	1,209,771
Other financial assets		57,730	100,504
Total Non-current Assets		15,058,895	14,321,998
TOTAL ASSETS		48,177,244	52,745,108
LIABILITIES
Current Liabilities
Trade and other payables		1,353,681	1,049,812
Other financial liabilities		12,258	104,524
Total Current Liabilities		1,365,939	1,154,336
TOTAL LIABILITIES		1,365,939	1,154,336
NET ASSETS		46,811,305	51,590,772
EQUITY
Issued capital	7	119,061,776	118,930,526
Reserves	8	1,038,828	585,382
Accumulated losses		(73,289,299)	(67,925,136)
TOTAL EQUITY		46,811,305	51,590,772

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

	Issued Capital	Option Premium Reserve	Foreign Currency Translation Reserve	Accumulated Losses	Total
	$	$	$	$	$
As at 1 July 2012	118,930,526	4,363,630	(3,778,248)	(67,925,136)	51,590,772
Total comprehensive loss for the period:
Net loss for the period	-	-	-	(5,373,394)	(5,373,394)
Other comprehensive income:
Exchange differences arising on translation of foreign operations	-	-	319,225	-	319,225
Total comprehensive income/(loss)	-	-	319,225	(5,373,394)	(5,054,169)
Transactions with owners, recorded directly in equity
Transfer from option premium reserve	-	(9,231)	-	9,231	-
Share based payments	-	142,952	-	-	142,952
Option issue price	-	500	-	-	500
Exercise of Listed Options	71,250	-	-	-	71,250
Reversal of Shares Issue Expense	60,000	-	-	-	60,000
As at 31 December 2012	119,061,776	4,497,851	(3,459,023)	(73,289,299)	46,811,305
As at 1 July 2011	117,624,295	6,194,728	(2,722,948)	(56,893,310)	64,202,765
Total comprehensive loss for the period:
Net loss for the period	-	-	-	(8,752,860)	(8,752,860)
Other comprehensive income:
Exchange differences arising on translation of foreign operations	-	-	263,195	-	263,195
Total comprehensive income/(loss)	-	-	263,195	(8,752,860)	(8,489,665)
Transactions with owners, recorded directly in equity
Share based payments	-	129,824	-	-	129,824
As at 31 December 2011	117,624,295	6,324,552	(2,459,753)	(65,646,170)	55,842,924

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

	Half Year Ended 31 December 2012 $	Half Year Ended 31 December 2011 $
Cash flows from operating activities
Payments to suppliers and employees	(5,447,779)	(8,879,357)
Interest received	828,147	1,219,017
Net cash outflow from operating activities	(4,619,632)	(7,660,340)
Cash flows from investing activities
Payments for property, plant and equipment	(574,221)	(117,069)
Payments for Exploration and Evaluation	(93,344)	-
Net cash outflow from investing activities	(667,565)	(117,069)
Cash flows from financing activities
Proceeds from issue of securities	71,750	-
Transaction costs from issue of shares and options	-	-
Net cash inflow from financing activities	71,750	-
Net increase/(decrease) in cash and cash equivalents held	(5,215,447)	(7,777,409)
Cash and cash equivalents at the beginning of the period	37,716,585	50,599,786
Effects of exchange rate changes on cash and cash equivalents	19,529	(16,829)
Cash and cash equivalents at the end of the period	32,520,667	42,805,548

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

1.       REPORTING ENTITY

Berkeley Resources Limited (the "Company") is a company domiciled in Australia. The interim financial report of the Company is as at and for the six months ended 31 December 2012.

The annual financial report of the Company as at and for the year ended 30 June 2012 is available upon request from the Company's registered office.

2.       STATEMENT OF COMPLIANCE

The interim financial report is a general purpose financial report which has been prepared in accordance with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the information of the type normally included in an annual financial report.  Accordingly, this report is to be read in conjunction with the annual report of Berkeley Resources Limited for the year ended 30 June 2012 and any public announcements made by Berkeley Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

This interim financial report was approved by the Board of Directors on 13 March 2013.

(a)      Basis of Preparation of Half Year Financial Report

The principal accounting policies adopted in the preparation of the financial report have been consistently applied to all the periods presented, unless otherwise stated.

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified where applicable by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss.

3.       SIGNIFICANT ACCOUNTING POLICIES

Accounting policies applied by the Consolidated Entity in this consolidated interim financial report are the same as those applied by the Consolidated Entity in its consolidated financial report for the year ended 30 June 2012, except as stated below.

In the current period, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2012.  The adoption of these new and revised standards has not resulted in any significant changes to the Group's accounting policies or to the amounts reported for the current or prior periods.

A range of amendments to Standards and Interpretations have been made which are available for early adoption for financial reporting periods beginning on or after 1 July 2012. New and revised standards and amendments thereof and interpretations effective for the current half-year that are relevant to the Consolidated Entity include:

·      Amendments to AASB 1, 5, 7, 101, 112, 120, 121, 132, 133 and 134 as a consequence of AASB 2011-9 'Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income'

The adoption of new and revised Standards and Interpretations has not affected the amounts reported for the current or prior year. However the application of AASB 2011-9 has resulted in a change to the Group's presentation of, or disclosure in, its half year financial statements.

3.       SIGNIFICANT ACCOUNTING POLICIES (continued)

AASB 2011-9 introduces new terminology for the statement of comprehensive income and income statement. Under the amendments to AASB 101, the statement of comprehensive income is renamed as statement of profit or loss. The amendments to AASB 101 retain the option to present profit or loss and other comprehensive income in either a single statement or in two separate but consecutive statements. However, the amendments to AASB 101 require items of other comprehensive income to be grouped into two categories in the other comprehensive income section: (a) items that will not be reclassified subsequently to profit or loss and (b) items that may be reclassified subsequently to profit or loss when specific conditions are met. Income tax on items of other comprehensive income is required to be allocated on the same basis - the amendments do not change the option to present items of other comprehensive income either before tax or net of tax. The amendments have been applied retrospectively, and hence the representation of items of other comprehensive income has been modified to reflect the changes. Other than the above mentioned presentation changes, the application of the amendments to AASB 101 does not result in any impact on profit or loss, other comprehensive income and total comprehensive income

4.       SEGMENT INFORMATION

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Consolidated Entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

The Consolidated Entity operates in one operating segment, being exploration for mineral resources within Spain. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Consolidated Entity.

5.       REVENUE FROM CONTINUING OPERATIONS

	Consolidated 31 December 2012 $	Consolidated 31 December 2012 $
Interest revenue	850,849	1,367,406
	850,849	1,367,406

6.       NON-CURRENT ASSETS - EXPLORATION EXPENDITURE

The group has mineral exploration costs carried forward in respect of areas of interest:	Consolidated 31 December 2012 $			Consolidated 30 June 2012 $
Areas in exploration at cost:
Balance at the beginning of year	13,011,723			13,646,937
Net Additions	104,406			91,744
Foreign exchange differences	220,931			(726,958)
	13,337,060			13,011,723
Capitalised exploration expenditure written off	(44,000)			-
Balance at end of year	13,293,060			13,011,723

The value of the exploration interests is dependent upon the discovery of commercially viable reserves and the successful development or alternatively sale, of the respective tenements.  An amount of €6m (A$7.43m) relates to the capitalisation of the fees paid to ENUSA under the Co-operation Agreement relating to the tenements within the State Reserves.  The Company reached agreement with ENUSA in July 2012 in the form of an Addendum to the Consortium Agreement signed in January 2009.  The Addendum includes the following terms:

·      The Consortium now consists of State Reserves 28 and 29;

·      Berkeley's stake in the Consortium has increased to 100%;

·      ENUSA will remain the owner of State Reserves 28 and 29, however the exploitation rights have been assigned to Berkeley, together with authority to submit all applications for the permitting process;

·      The Company is now the sole and exclusive operator in the Addendum Reserves, with the right to exploit the contained uranium resources and have full ownership of any uranium produced;

·      ENUSA will receive a production fee equivalent to 2.5% of the net sale value (after marketing and transport costs) of any uranium produced within the Addendum Reserves;

·      Berkeley has waived its rights to mining in State Reserves 2,25, 30, 31, Hoja 528-1 and the Saelices El Chico Exploitation Concession, and has waived any rights to management of the Quercus plant; and

·      The Co-operation Agreement with ENUSA, signed on 29 January 2009, has been terminated.

7.       CONTRIBUTED EQUITY

(a)      Issued and Paid Up Capital

Date	Consolidated 31 December 2012 $	*Consolidated 30 June 2012 $*
174,393,273 (30 June 2012: 179,298,273) fully paid ordinary shares	119,061,776	118,930,526

7.       CONTRIBUTED EQUITY (Continued)

(b)      Movements in Ordinary Share Capital During the Six Month Period ended 31 December 2012:

Date	Details	Number of Shares	Issue Price $	$
1 Jul 12	Opening Balance	179,298,273		118,930,526
1 Jul 12	Reversal of Share Issue Expense	-		60,000
10 Aug 12	Exercise of listed options	95,000	0.75	71,250
31 Dec 12	Closing Balance	179,393,273		119,061,776

(c)      Movements in Options During the Six Month Period ended 31 December 2012:

Date	Details	Number of Listed Options	Number of Incentive Options	Fair Value $	Share based payments reserve $
1 Jul 12	Opening Balance	11,989,428	10,758,333		4,363,630
1 Jul 12	Option issue proceeds	-	-		500
10 Aug 12	Exercise of listed options	(95,000)	-		-
9 Nov 12	Grant of $0.475 incentive Options expiring 22 December 2015	-	750,000	0.21	-
	Adjustment for expired options	-	(16,667)		(9,231)
	Share based payments expense(1)	-	-		142,952
31 Dec 12	Closing Balance	11,894,428	11,491,666		4,497,851

Note:

(1)      The value of Incentive Options granted is recognised over the vesting period of the grant, in accordance with Australian Accounting Standards.

The following options have been issued over unissued capital as at 31 December 2012:

Listed Options

·         11,989,428 listed options at an exercise price of $0.75 each that expire on 15 May 2013.

Unlisted Options

.

·         1,000,000 unlisted options at an exercise price of $1.25 each that expire on 1 December 2013.

·         2,241,666 unlisted options at an exercise price of $1.35 each that expire on 18 June 2014.

·         1,750,000 unlisted options at an exercise price of $0.475 each that expire on 22 December 2015.

·         1,000,000 unlisted options at an exercise price of $0.41 each that expire on 21 September 2015.

·         5,500,000 unlisted options at an exercise price of $0.45 each that expire on 30 June 2016.

8.       RESERVES

	31 December 2012 $	30 June 2012 $
## (a)        Reserves
Share based payments reserve	4,497,851	4,363,630
Foreign exchange reserve	(3,459,023)	(3,778,248)
	1,038,828	585,382

9.       CONTINGENT LIABILITIES AND COMMITMENTS

There was no material change in contingent liabilities or commitments as previously disclosed at the last reporting period.

10.     DIVIDENDS PAID OR PROVIDED FOR

No dividend has been paid or provided for during the half year.

11.     SUBSEQUENT EVENTS AFTER BALANCE DATE

As at the date of this report there were no significant events occurring after balance date requiring disclosure.

The Auditor's Independence Declaration and the Independent Auditor's Report are available in the full version of the Interim Financial Report on Berkeley Resources Limited's website at:

www.berkeleyresources.com.au.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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