BPH ENERGY LTD — Interim / Quarterly Report 2011

Feb 13, 2011

BPH ENERGY LTD (formerly BPH Corporate Ltd) ABN 41 095 912 002

Appendix 4D Half Year Financial Report For the half year ended 31 December 2010

BPH Energy Ltd (formerly BPH Corporate Limited) and its controlled entities

Contents

Page Number

Directors’ Report ....................................................................................................................................... 1 Auditor Independence Declaration ..................................................................................................... 3 Directors’ Declaration .............................................................................................................................. 4 Condensed Consolidated Statement of Comprehensive Income ................................................ 5 Condensed Consolidated Statement of Financial Position .............................................................. 6 Condensed Consolidated Statement of Changes in Equity ............................................................ 7 Condensed Consolidated Cash Flow Statement ............................................................................... 8 Notes to the Financial Statements ......................................................................................................... 9 Independent Auditor’s Review Report ............................................................................................... 15 Appendix 4D ............................................................................................................................................ 17

Company Information

Directors

David Breeze – Executive Chairman Greg Gilbert – Non Executive Director Hock Goh – Non Executive Director Deborah Ambrosini –Executive Director and Company Secretary

Scientific Advisors

Professor Peter Klinken Dr Robin Scaife

Registered Office 14 View Street NORTH PERTH WA 6006

Auditor

Deloitte Touche Tohmatsu Woodside Plaza Level 14, 240 St Georges Terrace PERTH WA 6000

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153

Australian Business Number

41 095 912 002

Principal Business Address

14 View Street NORTH PERTH WA 6006 Telephone: (08) 9328 8366 Facsimile: (08) 9328 8733 Website: www.bphenergy.com.au E-mail: admin@bphenergy.com.au

Directors’ Report

BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

The directors of BPH Energy Ltd (formerly BPH Corporate Ltd) submit herewith the financial report for the half year ended 31 December 2010. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of the directors of the company during or since the end of the period are: D L Breeze

G Gilbert H Goh D Ambrosini

Review of Operations

Operating loss for the consolidated entity after tax for the year was $809,220 (2009 $707,071).

Significant changes in state of affairs

During the year BPH Energy Ltd (“BPH”) conducted a non renounceable entitlements issue. A total of 103,314,033 shares were issued with $8.237M raised.

On 7 September 2010 MEC Resources Ltd (“MEC”) sold 3M shares in Advent Energy to BPH at 50c per share. MEC was issued 18.75M ordinary shares in BPH as consideration for this sale.

On 3[rd] December 2010 BPH closed the offer detailed in the prospectus released to investors in November 2010. The offer was to acquire shares in BPH with a free attaching option for every 5 shares purchased exercisable at 20c on or before 8 December 2011. A total 50,951,205 ordinary shares and 10,190,241 options were issued after shareholder approval was obtained at the general meeting held that same day.

On the 3[rd] December 2010 shareholder approval was received to perform a consolidation of capital on a 1:2 basis.

On the 3[rd] December 2010 shareholder approval was received to change the name of the Group to BPH Energy Ltd.

On 16[th] December 2010 BPH increased its holding in Advent Energy Ltd (“Advent”) to 27.4%. BPH subscribed for a 11.4M shares at an issue price of $1.25 under the Advent Bookbuild.

During the year MDS principal researcher Dr Robin Scaife was awarded funding from the Scott Kirkbride Melanoma Research Centre to conduct a Melanoma Drug Discovery program at the Western Australian Institute of Medical Research.

Subsequent Events

Other than referred in note 13 of these financial accounts there have not been any matters or circumstance that have arisen since the end of the period, that have significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years.

Dividends

The Directors recommend that no dividend be paid in respect of the current period and no dividends have been paid or declared since the commencement of the period.

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Directors’ Report

BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

Auditor’s Independence

The directors received a declaration of independence from the auditor. This is included in the financial report on page 3.

Signed in accordance with a resolution of the directors made pursuant to s.306(c) of the Corporations Act 2001

On behalf of the Directors

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D L Breeze Executive Chairman PERTH, 11 February 2011

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Deloitte Touche Tohmatsu ABN 74 490 121 060

Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

The Board of Directors BPH Energy Ltd 14 View Street NORTH PERTH WA 6005

DX: 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (8) 9365 7001 www.deloitte.com.au

11 February 2011

Dear Board Members

BPH Energy Ltd (formerly BPH Corporate Ltd)

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of BPH Energy Ltd (formerly BPH Corporate Ltd).

As lead audit partner for the review of the financial statements of BPH Energy Limited (formerly BPH Corporate Ltd) for the half-year ended 31 December 2010, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Chris Nicoloff Partner Chartered Accountants

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

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Auditor Independence Statement BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

In accordance with a resolution of BPH Energy Ltd, I state that:

In the opinion of the directors:

• (a) In the Directors’ opinion the financial statements and notes and the Directors Report set out on pages 5 to 14, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of their performance, for the financial period ended on that date; and

• (ii) complying with Australian Accounting Standards (AASB 134 Interim Financial Reporting) and Corporations Regulations 2001.

• (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

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D L Breeze Executive Chairman PERTH, 11 February 2011

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Condensed Consolidated Statement of Comprehensive Income

for the half year ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

			CONSOLIDATED	CONSOLIDATED
	Note	31	December	31 December
			2010	2009
			$	$
Revenue from ordinary activities	4		196,980	151,180
Other Revenue	4		279	-
Administration expenses			(372,409)	(158,996)
Consulting and legal expenses			(275,833)	(346,081)
Depreciation and amortisation expense			(1,086)	(26,275)
Employee benefits expense			(35,406)	(40,950)
Insurance expenses			(12,075)	(9,479)
Other expenses			(72,656)	(24,823)
Promotions expenses			(26,641)	(35,792)
Share of Associates Loss			(68,370)	-
Research and Development expenses			(72,403)	(105,302)
Service expenses			(65,520)	(65,520)
Travelling expenses			(4,080)	(86)
Operating Loss before income tax			(809,220)	(662,124)
Income tax expense			-	-
Operating Loss from continuing operations			(809,220)	(662,124)
Operating Loss from discontinued operations			-	(45,577)
Operating Net Loss from total operations			(809,220)	(707,701)
Other comprehensive income			21,450,000	-
Total Comprehensive income for the period			20,640,780	(707,701)
Loss attributable to non controlling interest			(23,848)	(17,692)
Loss attributable to members of the parent entity			(785,372)	(690,009)
Earnings per share
From continuing and discontinued operations-
Basic and Diluted (cents per share)			(0.42)	(0.87)
From continuing operations -
Basic and Diluted (cents per share)			(0.42)	(0.83)
The accompanying notes form part of these financial	statements.

5

Condensed Consolidated Statement of Financial Position as at 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

CONSOLIDATED

Note Current Assets Cash and cash equivalents 5 Trade and other receivables Financial Assets 11 Other Current Assets Total Current Assets Non-Current Assets Financial assets Investment in associates 9 Intangible assets Property, plant and equipment Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Financial liabilities Provisions Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital 6 Reserve Accumulated losses Non controlling interests Total Equity	31 December 2010 $ 30 June 2010 $
	3,521,643 1,855,820 56,710 89,636 2,142,175 183,432 191,109 15,945
	5,911,637 2,144,833
	48,949 12,848,949 51,650,420 1,568,790 72,454 72,454 2,648 2,190
	51,774,471 14,492,383
	57,686,108 16,637,216
	552,953 572,227 383,620 354,106 6,773 12,438
	943,346 938,771
	- 1,243
	- 1,243
	943,346 940,014
	56,742,762 15,697,202
	42,825,310 22,427,420 21,847,946 391,056 (7,899,699) (7,114,327) (30,795) (6,947)
	56,742,762 15,697,202

The accompanying notes form part of these financial statements.

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Condensed Consolidated Statement of Changes in Equity for the half year ended 31 December 2010

BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

CONSOLIDATED Balance as at 1 July 2009 Loss for the period Other comprehensive income Total comprehensive income for the half year Transactions with owners in their capacity as owners Shareholder Share Placement Plan Placement Shares – First Offer Options charges during the period Capital raising costs incurred Balance for the half year ending 31 December 2009 Balance as at 1 July 2010 Loss for the period Other comprehensive income Total comprehensive income for the half year Transactions with owners in their capacity as owners Entitlement Issue Shares issued during the year Placement Shares – Recompliance Options charges during the period Capital raising costs incurred Balance for the half year ending 31 December 2010	Ordinary Share Capital $ Accumulated losses $ Options reserve $ Fair Value Adjustment Total attributable to owners of the parent entity $ Non Controlling Interest $ Total $
	7,308,660 (6,905,542) 294,645 - 697,763 18,725 716,488 - (690,009) - - (690,009) (17,692) (707,701) - - - - - - -
	- (690,009) - - (690,009) (17,692) (707,701) 2,745,561 - - - 2,745,561 - 2,745,561 11,053,242 - - - 11,053,242 - 11,053,242 - - 83,873 - 83,873 - 83,873 (791,271) - - - (791,271) - (791,271)
	20,316,192 (7,595,551) 378,518 - 13,099,159 1,033 13,100,192
	22,427,420 (7,114,327) 391,056 - 15,704,149 (6,947) 15,697,202 - (785,372) - - (785,372) (23,848) (809,220) - - - 21,450,000 21,450,000 - 21,450,000
	- (785,372) - 21,450,000 36,368,777 (23,848) 36,337,982 8,237,507 - - - 8,237,507 - 8,237,507 1,533,333 - - - 1,533,333 1,533,333 11,514,920 - - - 11,514,920 - 11,514,920 - - 6,890 - 6,890 - 6,890 (887,870) - - - (887,870) - (887,870)
	42,825,310 (7,899,699) 397,946 21,450,000 56,773,557 (30,795) 56,742,762

The accompanying notes form part of these financial statements.

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Condensed Consolidated Cash Flow Statement for the period ended 31 December 2010

BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

Note Cash Flows From Operating Activities Cash receipts from customers Cash payments to suppliers Research and Development Rebate Interest received Net cash used in operating activities Cash Flows From Investing Activities Payment for property, plant and equipment Payment for purchase of investments Loans to other entities Net cash used in investing activities Cash Flows From Financing Activities Proceeds from capital raising Capital raising costs Repayment of borrowings Net cash provided by financing activities Net increase in Cash Held Cash At the Beginning Of The Financial Period Cash At The End Of The Financial Period 5	CONSOLIDATED 31 December 2010 $ 31 December 2009 $
	- 1,731 (1,286,041) (108,473) 22,403 238,626 96,193 57,451
	(1,167,445) 189,335
	(1,543) - (12,000,000) - (4,195,108) (19,349)
	(16,196,651) (19,349)
	19,757,818 13,783,804 (727,899) (791,271) - (50,251)
	19,029,919 12,942,282
	1,665,823 13,112,268 1,855,820 372,268
	3,521,643 13,484,536

The accompanying notes form part of these financial statements.

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Notes to the Financial Statements for the period ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

1. CORPORATE INFORMATION

The financial report of BPH Energy Ltd (formerly BPH Corporate Ltd) (the company) and its controlled entities for the half-year ended 31 December 2010 was authorised for issue in accordance with a resolution of the directors on11 February 2011.

BPH Energy Ltd is a company incorporated in Australia and limited by shares which are publicly traded on the Australian Securities Exchange.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year financial report does not include all of the notes of the type normally included within the annual financial report 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 report.

The half-year financial report should be read in conjunction with the Annual Financial Report of BPH Energy Ltd (formerly BPH Corporate Ltd) as at 30 June 2010.

It is also recommended that the half-year financial report be considered together with any public announcements made by BPH Energy Ltd and its controlled entities during the half-year ended 31 December 2010 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

(a) Basis of Preparation

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting, compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

Reporting Basis and Conventions

The half-year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

(b) Significant Accounting Policies

The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2010, except for the impact of the standards and interpretations below in note 2(c). The accounting policies are consistent with Australian Accounting Standards and with International Reporting Standards.

(c) New standards and Interpretations Not Yet Adopted

(a) Changes in Accounting Policies and Disclosures

The consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to their operations and are effective for the current financial reporting period.

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Notes to the Financial Statements for the period ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

Significant new and revised standards and interpretations effective for the current financial reporting period that are relevant to the consolidated entity are:

• AASB 2009-5: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Process;

• AASB 2009-8: Amendments to Australian Accounting Standards – Group Cash-settled Sharebased Payment Transactions AASB 2.

• AASB 2009-10: Amendments to Australian Accounting Standards - Classification of Rights Issues

• AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project:

• Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments.

(b) Accounting Standards and Interpretations issued but not yet effective.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective and have not been adopted by the consolidated entity for the half year ending 31 December 2010. Management are in the process of assessing the impact of the adoption of these standards and interpretations on the consolidated entity.

3. OPERATING INFORMATION

The Economic entity operates predominantly in one industry, namely the biomedical research sector. These activities are predominantly in Australia.

4. REVENUE, INCOME AND EXPENSES

Revenue Grant Income (i) Interest revenue : other entities Total revenue	Consolidated 31 December 2010 $ 31 December 2009 $
	- 93,795 196,980 57,385
	196,980 151,180

• (i) Government grants relating to market development have been received during the period. There are no unfulfilled conditions or contingencies attaching to these grants.

Other income Profit on sale of plant and equipment	Consolidated 31 December 2010 $ 31 December 2009 $
	279 -
	279 -

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Notes to the Financial Statements for the period ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

5. CASH AND CASH EQUIVALENTS

For the purpose of the half-year condensed consolidated cash flow statement, cash and cash equivalents are comprised of the following: Cash at bank and in hand from continuing operations Cash assets to be disposed of ONTRIBUTED EQUITY 215,668,707 ( June 2010: 206,954,246) fully paid ordinary shares	Consolidated 31 December 2010 $ 31 December 2009 $
	3,521,643 13,468,324 - 16,212
	3,521,643 13,484,536
	Consolidated 31 December 2010 $ 30 June 2010 $
	42,825,310 22,427,420

6. CONTRIBUTED EQUITY

The Company has no authorised capital and the issued shares do not have a par value.

Movements in ordinary shares on issue At the beginning of reporting period Shares issued – purchase of 3M shares in Advent Energy Ltd Shares issued – payment for consultancy services Shares issued as part of Entitlement Issue October 2010 Consolidation of capital on a 1:2 basis Shares Issued through recompliance prospectus Capital raising costs At reporting date	Consolidated
	No. $
	206,954,246 22,427,420 18,750,000 416,725 1,500,000 33,338 103,314,033 8,237,502 (164,717,502) - 50,951,205 11,514,920 - (887,870)
	215,668,707 42,825,310

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Notes to the Financial Statements for the period ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

Capital Raising

During the period nil options were exercised (June 2010: 24,000 options were exercised).

Fully Paid Ordinary Share Capital

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

8. COMMITMENTS AND CONTINGENT LIABILITIES

There has been no material changes to the commitments and contingencies since 30 June 2010.

2010 2009 $ $ INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD Shares in Associates 51,650,420 1,568,790

9. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

(a) Shares in associates

Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting.

Name of Entity	Country of	Ownership Interest	Ownership Interest
	Incorporation		%
		2010	2009
Molecular Discovery Systems	Australia	20%	20%
Advent Energy Ltd	Australia	27.4%	19.4%

On 16[th] December 2010 BPH increased its holding in Advent Energy Ltd (“Advent”) to 27.4%. BPH subscribed for a 11.4M shares at an issue price of $1.25 under the Advent Bookbuild. Advent is now an associate of BPH for reporting purposes.

BPH fair valued their investment at the date that significant influence was obtained in Advent. This resulted in a fair value adjustment of $21,450,000 to the investment and asset revaluation reserve.

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Notes to the Financial Statements for the period ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

(a) Summarised financial information of associates

The results of its associates aggregated assets (including goodwill) and liabilities, including the group’s share of net assets and net loss for the period are as follows:

Groups Share of: Ownership interest % Assets Liabilities 2010 Molecular Discovery Systems Ltd 20 732,624 391,087 732,624 391,087 2010 Advent Energy Ltd 27.4 48,715,738 15,791,422 48,715,738 15,791,422 11. FINANCIAL ASSETS Current Unsecured Loans to other entities: (b) Grandbridge Limited Cortical Dynamics Limited Molecular Discovery Systems Pty Ltd MEC Resources Limited and Advent Energy Limited Secured Loans to other entities: (c) Cortical Dynamics Limited Molecular Discovery Systems Pty Ltd Non current Available for sale financial assets (a) (a) Available for sale financial assets comprise: Unlisted investments, at fair value - Shares in other corporations Total available for sale financial assets	Groups Share of: Assets Liabilities 732,624 391,087	Groups Share of: Assets Liabilities 732,624 391,087	Profits/Losses Revenues Net Assets Net Loss for the Period since becoming an associate (151,929) - 68,307 (51,325)
	732,624 391,087		(151,929) - 68,307 (51,325)
	48,715,738 15,791,422		(3,226,436) 46,725 9,021,262 (37,985)
	48,715,738 15,791,422		(3,226,436) 46,725 9,021,262 (37,985)
			Consolidated 31 December 2010 $ 30 June 2010 $ 55,645 55,645 99,582 - 167,000 117,000 1,744,948 10,787 50,000 - 25,000 - 2,142,175 183,432 48,949 12,848,949 48,949 12,848,949 48,949 12,848,949 48,949 12,848,949

• (b) These loans are unsecured, non interest bearing and repayable on demand.

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Notes to the Financial Statements for the period ended 31 December 2010 BPH Energy Ltd (formerly BPH Corporate Ltd) and its controlled entities

• (c) These loans are secured by a charge over all of the assets and undertakings of each entity and interest bearing. Subject the entity being admitted to the Official list BPH Energy has the right to conversion to satisfy the debt on or before the termination date.

12. RELATED PARTIES

Interest in Associates

A loan receivable exists between BPH and Molecular Discovery Systems Ltd (“MDS”) $167,000 (2009:$1,489,039). This amount is unsecured, non interest bearing and repayable on demand.

A loan receivable exists between BPH and MDS $25,000 (2009:$nil). This amount is secured over all assets and undertakings of MDS and is interest bearing. Subject MDS being admitted to the Official list BPH has a right of conversion to satisfy the debt on or before the termination date.

A loan receivable exists between BPH and Advent Energy Ltd (“Advent”)$1,742,453 (2009:$nil) The loan is secured by a fixed and floating charge over Advent’s present and future undertakings, assets and rights.

In December 2010, BPH converted $2,400,000 of its loan receivable from Advent into ordinary shares of Advent.

13. EVENTS SUBSEQUENT TO REPORTING DATE

BPH investee company Advent Energy completed the drilling operations of New Seaclem 1 in early January 2011. Whilst no hydrocarbons were encountered at prognosed target horizons reservoir quality sandstones of considerable thickness were observed. Invaluable information was obtained from the drilling that will allow Advent to further assess the numerous prospects and leads within PEP 11.

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Deloitte Touche Tohmatsu ABN 74 490 121 060

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Woodside Plaza Level 14 240 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia

Independent Auditor’s Review Report to the Directors of BPH Energy Ltd (formerly BPH Corporate Ltd)

DX: 206 Tel: +61 (0) 8 9365 7000 Fax: +61 (08) 9365 7001 www.deloitte.com.au

We have reviewed the accompanying half-year financial report of BPH Energy Limited (formerly BPH Corporate Ltd), which comprises the condensed statement of financial position as at 31 December 2010, and the condensed statement of comprehensive income, the condensed statement of cash flows and the condensed statement of changes in equity for the half-year ended on that date, selected explanatory notes and, the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year as set out on pages 4 to 14.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company 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 halfyear 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 halfyear 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 2010 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 BPH Energy 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.

Auditor’s Independence Declaration

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 BPH Energy Limited (formerly BPH Corporate Ltd), would be in the same terms if given to the directors as at the time of this auditor’s report.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

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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 BPH Energy Limited (formerly BPH Corporate Ltd) 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 2010 and of its performance for the half-year ended on that date; and

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

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DELOITTE TOUCHE TOHMATSU

Chris Nicoloff Partner Chartered Accountants Perth, 11 February 2011

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Appendix 4D Half year report

BPH Energy Ltd Ltd (formerly BPH Corporate Ltd) ABN 41 095 912 002 Half Year ended 31 December 2010

(corresponding period half year ended 31 December 2009)

Results for announcement to the market

Results for announcement to the market
$A'000
Revenues from ordinary activities (Loss) from ordinary activities after tax attributable to members Net (loss) for the period attributable to members	down 36% to 96 Up 16% to (817) Up 16% to (817)
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend Interim dividend	Nil	Nil
Previous corresponding period	N/A	N/A

Other notes to the condensed financial statements

Ratios	Current period	Previous corresponding Period
Loss before tax / revenue Consolidated (loss) from ordinary activities before tax as a percentage of revenue	(851.04)%	(437.97)%
Loss after tax / equity interests Consolidated net (loss) from ordinary activities after tax attributable to members as a percentage of equity (similarly attributable) at the end of the period	(1,91)%	(3.44)%
NTA Backing	Current period	Previous corresponding Period
Net tangible asset backing per ordinary security	1.5cps	6.79cps

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