BULLETIN RESOURCES LIMITED — Interim / Quarterly Report 2016

Mar 14, 2016

BULLETIN RESOURCES LIMITED ACN 144 590 858

HALF-YEAR FINANCIAL STATEMENTS 31 DECEMBER 2015

BULLETIN RESOURCES LIMITED ACN 144 590 858

CONTENTS

Company Directory ................................................................................................................................. 3 Directors’ Report ..................................................................................................................................... 4 Auditor’s Independence Declaration ...................................................................................................... 8 Statement of Profit or Loss and Other Comprehensive Income............................................................. 9 Statement of Financial Position ......................... ……………………………………………………….…..10 Statement of Changes in Equity…… ................................................ …………………………………….11 Statement of Cash Flows .......................................... ………………………………………………….…..12 Notes to the Financial Statements……………………………………….. ............................................... 13 Directors’ Declaration ........................................................................................................................... 17 Independent Auditor’s Review Report .................................................................................................. 18

BULLETIN RESOURCES LIMITED ACN 144 590 858

COMPANY DIRECTORY

DIRECTORS

Paul Poli Frank Sibbel Robert Martin

(Director, Chairman) (Director) (Director)

COMPANY SECRETARY

Andrew Chapman

REGISTERED OFFICE

Suite 11, 139 Newcastle Street PERTH WA 6000

Telephone: +61 8 9230 3585 Facsimile: +61 8 9227 0370

POSTAL ADDRESS

PO Box 376 NORTHBRIDGE WA 6865

AUDITORS

BDO Audit (WA) Pty Ltd 38 Station Street SUBIACO WA 6008

BANKERS

Westpac Banking Corporation Level 6 109 St Georges Terrace PERTH WA 6000

Commonwealth Bank of Australia Level 14A 300 Murray Street PERTH WA 6000

SOLICITORS

King & Wood Mallesons Level 30, QV1 Building 250 St Georges Terrace Perth WA 6000

WEBSITE

www.bulletinresources.com

SHARE REGISTRY

Level 11 172 St Georges Terrace Perth WA 6000 Enquiries (within Australia) 1300 850 505 (outside Australia) 61 3 9415 4000 www.investorcentre.com/contact

HOME STOCK EXCHANGE

Australian Securities Exchange Ltd Level 40, Central Park 152-158 St George's Terrace Perth WA 6000 ASX Code: BNR

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BULLETIN RESOURCES LIMITED ACN 144 590 858

DIRECTORS’ REPORT For the Half Year Ended 31 December 2015

Your Directors submit the financial report of the Company for the half-year ended 31 December 2015.

DIRECTORS

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

Paul Poli Frank Sibbel Robert Martin

RESULT

The loss after tax for the half-year ended 31 December 2015 was $455,217 (31 December 2014 $260,834).

REVIEW OF OPERATIONS

HALLS CREEK GOLD PROJECT BULLETIN 20%, PNR 80% (PNR – PROJECT MANAGER)

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The Halls Creek Project includes the Nicolsons Mine, (35 km south west of Halls Creek) and a pipeline of exploration and development prospects located east of Halls Creek in the Kimberley Region of Western Australia.

The Company continues to focus on the Halls Creek Gold Project and the advancement of that project towards positive cash flow. The project is estimated to provide positive cash flow to the Company of $11M after tax over 4.5 years at a gold price of A$1,400 Oz.

In September 2015 Bulletin Resources and its JV partner Pantoro Limited (PNR) became Australia’s newest gold producer with first gold poured from the Nicolsons and half year production totalling 5,143 Oz gold.

The Nicolsons mine continues to ramp up production towards nameplate capacity. The mine is now beginning to settle into steady development with the first three development

Halls Creek Project Location

levels nearing completion, and the access to the fourth level (2185 mRL) well advanced. It is expected that steady state production should occur in the March quarter.

The joint venture operator, Halls Creek Mining Pty Ltd (HCM) has advised that it continues to see a substantial overcall to the JORC Reserve model which will provide significant potential to extend the mine life and production capacity at Nicolsons.

The project has an indicated and inferred resource of 260,000 ounces of gold. With the Nicolsons mine now in production, the exploration objective is to increase the near mine resources at Nicolsons by developing and extending the current resource base immediately beneath and down plunge of the existing open pit, as well as expanding the existing Rowdies and Wagtail resources. Underground diamond drilling at Nicolsons is expected to commence during the ensuing quarter with an initial 12,000 metre program planned to be completed over an initial 9 month period

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BULLETIN RESOURCES LIMITED ACN 144 590 858

DIRECTORS’ REPORT For the Half Year Ended 31 December 2015

Works to assess mining of the potential open pits at Rowdies and Wagtail are underway and will be progressed throughout the ensuing quarter. Historical data is in the process of being verified for inclusion in the assessment, at which time the requirement for additional drilling will be assessed. Provided reviews are positive, the company is working towards commencing open pit mining in the second half of 2016.

Underground Development

Decline development has continued to progress well, with good ground now persisting after experiencing poor ground conditions in the early part of the development. The improved conditions have allowed a reliable development cycle, increasing total metres able to be developed. The introduction of the smaller Atlas Copco 282 development drill has allowed development drive widths to be reduced to 3.5m, reducing dilution and reducing ground control requirements. With the improved ground conditions, the level spacing has been extended to 15 metres in accordance with the mine plan. Ground conditions have continued to improve with depth at the mine, and the decline is now progressing through good ground. The improved conditions will allow faster access to additional levels, and the 2160 and 2145 levels should be accessed during the ensuing quarter.

Ore developed during the period has substantially overcalled the JORC Reserve model, providing significant upside potential to both mine life and production capacity. Approximately 180% of the modeled Reserve ounces were recovered during the October - December period with Reserve overcall resulting from a number of factors listed below, all of which were positive throughout this period:

• Increased tonnage and grade within the area currently classified as Reserve;

• Extension of the Reserve along the strike of the main ore zone. The strike length of the Reserve was increased at both the North and South ends of the Reserve;

• Mining of high grade splay veins extending off of the main lode. The splay veins were not previously modeled in the Reserve calculation.

Total ounces mined compared with the Reserve have overcalled on every level and during every month since ore development commenced in August 2015.

Table 1: December 2015 quarter ore production relative to the ore Reserve areas accessed during the quarter

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No Reserve updates have been undertaken to date, however the substantial overcall experienced in the areas mined to date suggests excellent potential to upgrade the mine inventory when adequate data is available. Work to re-estimate the levels developed to date has commenced, and diamond drilling from underground drill platforms is due to commence in the ensuing quarter. Once adequate drill and development data is available, the Reserve estimate will be updated.

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BULLETIN RESOURCES LIMITED ACN 144 590 858

DIRECTORS’ REPORT For the Half Year Ended 31 December 2015

Processing Plant

The processing plant operated reliably throughout the period with a total recovery of 93% year to date. Recovery has continued to improve, with the December recovery increasing to 95.7%. The recovery result is particularly pleasing given that December saw only underground ore feed into the plant.

Processing critical spares held on site continued to be accumulated throughout the month, with most standby items required now available in the site store.

Total plant capacity is yet to be fully tested, with all ore mined during the quarter processed. With the planned commencement of stoping in the second half of the financial year, mine production should begin to exceed plant capacity.

Corporate

In order to pre-empt any temporary shortfall in immediate cash flow prior to commencement of production and gold sales revenue, in August 2015 Bulletin entered into an agreement for additional funding via a loan agreement with an independent party for an additional $600,000 to secure Bulletin’s share of joint venture funding of the Nicolsons Gold Project as it entered the production phase.

In addition the board of Bulletin will not draw down any remuneration until such time as the loan has been repaid. Furthermore, major shareholder Matsa Resources Limited has also entered into a Deed of Guarantee and Indemnity with the lender to guarantee repayment of the loan to a maximum of $350,000.

The Bulletin board took the view that this loan funding was preferable to raising additional capital from shareholders and that once full production is achieved Bulletin will seek to repay the loan as early as possible.

In addition the Company’s financiers, the Commonwealth Bank of Australia, amended the terms of the gold prepayment facility and hedge facility so that repayment would be deferred to January 2016 from its original November 2015 date in recognition of the delays to the commencement of production.

During the period the Company sold approximately 12.2 million PNR shares in order to assist with its funding commitments to the joint venture while production ramps up. It is anticipated that as production increases at the Nicolsons Mine towards nameplate capacity that future gold sales should not only cover joint venture expenditure but, in time, generate further positive cash flows for the Company.

EVENTS SUBSEQUENT TO REPORTING DATE

On 29 January 2016 Bulletin commenced repayment of its secured loan to the Commonwealth Bank of Australia (CBA). Bulletin has executed a Senior Secured Gold Prepaid Forward and Mandatory Hedge Facility to the value of $2.3 million.

Since the end of the period Bulletin has disposed of a further 3.65M shares in PNR on market.

Other than the above, no matter or circumstance has arisen subsequent to the balance date, which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years.

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BULLETIN RESOURCES LIMITED ACN 144 590 858

DIRECTORS’ REPORT For the Half Year Ended 31 December 2015

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 8 for the half year ended 31 December 2015 .

This report is signed in accordance with a resolution of the Board of Directors.

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Paul Poli Chairman

Dated this 15[th] day of March 2016

Halls Creek Tenements – Competent Persons Statement

The information in this report that relates to exploration and mineral resources is based on information compiled by Mr. Scott Huffadine B.Sc.(Honours) MAusIMM who is an employee of Pantoro Limited. Mr. Huffadine 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 described by the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Huffadine consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Reserves is based on information compiled by Mr. Paul Cmrlec (B. Eng (Mining) (Hons)), MAusIMM who is the Managing Director of Pantoro Limited. Mr. Cmrlec 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 described by the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Cmrlec consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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DECLARATION OF INDEPENDENCE BY IAN SKELTON TO THE DIRECTORS OF BULLETIN RESOURCES LIMITED

As lead auditor for the review of Bulletin Resources Limited for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

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Ian Skelton

Director

BDO Audit (WA) Pty Ltd

Perth, 15 March 2016

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

BULLETIN RESOURCES LIMITED ACN 144 590 858

STATEMENT OF COMPREHENSIVE INCOME For the Half-Year ended 31 December 2015

Note Revenue Cost of sales Gross Loss Interest received Other expenses Listing and share registry expense Depreciation Professional fees Director fees Exploration expenditure Legal fees Administration expenses Finance costs Audit fees Loss on sale of investments Share based payments expense Expenses from operations Loss from operations before income tax expense Income tax expense Loss after income tax expense for the period Other comprehensive income Items that may be reclassified subsequently to profit or loss Net change in fair value of available-for-sale financial assets Available-for-sale financial assets – realised in profit or loss on disposal Total comprehensive loss for the half-year Total comprehensive loss for the period attributable to equity holders of the company Basic loss per share (cents per share)	31 December 2015 31 December 2014 $ $ 912,725 - (979,749) -
	(67,024) - 7,197 11,378 (22,007) (3,236) (5,853) (20,313) (10,950) (42,497) (72,901) (85,270) (1,281) (3,024) (6,759) (25,808) (85,866) (37,862) (28,912) - (22,107) (8,844) (138,754) - - (45,358)
	(395,390) (272,212)
	(455,217) (260,834) - -
	(455,217) (260,834)
	188,737 (371,248) 138,754 -
	327,491 (371,248)
	(127,726) (632,082)
	(0.26) (0.21)

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

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BULLETIN RESOURCES LIMITED ACN 144 590 858

STATEMENT OF FINANCIAL POSITION As at 31 December 2015

Note Current Assets Cash and cash equivalents Trade and other receivables Inventories Available-for-sale financial assets 2 Total Current Assets Non-Current Assets Mine property 3 Plant and equipment Exploration expenditure Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Provisions Borrowings 4 Deferred revenue 5 Total Current Liabilities Non-Current Liabilities Provisions Borrowings 4 Deferred revenue 5 Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital 6 Reserves Accumulated losses Total Equity	31 December 2015 30 June 2015 $ $ 666,150 857,951 151,742 810,652 566,122 8,986 344,379 883,924
	1,728,393 2,561,513
	3,028,530 1,059,136 1,384,950 1,690,719 28,103 299,463
	4,441,583 3,049,318
	6,169,976 5,610,831
	837,217 790,441 33,797 9,305 36,261 21,985 1,202,139 567,642
	2,109,414 1,389,283
	360,807 359,570 600,000 - 1,097,861 1,732,358
	2,058,668 2,091,928
	4,168,082 3,481,211
	2,001,894 2,129,620
	14,490,189 14,490,189 4,051 (323,440) (12,492,346) (12,037,129)
	2,001,894 2,129,620

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

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BULLETIN RESOURCES LIMITED ACN 144 590 858

STATEMENT OF CHANGES IN EQUITY For the Half-Year ended 31 December 2015

Balance at 1 July 2014 Comprehensive loss for period attributable to members Total comprehensive loss for the period Issue of shares Share issue cost Share based payment Balance at 31 December 2014 Balance at 1 July 2015 Comprehensive loss for period attributable to members Total comprehensive loss for the period Issue of shares Share issue cost Share based payment Balance at 31 December 2015	Issued Capital Other Reserves Equity Settled Benefits Reserve Accumulated Losses Total $ $ $ $ $ 13,849,255 - 2,450 (11,400,922) 2,450,783 - (371,248) - (260,834) (632,082)
	- (371,248) - (260,834) (632,082) - - - - - - - - - - - - 45,358 - 45,358
	13,849,255 (371,248) 47,808 (11,661,756) 1,864,059
	14,490,189 (371,248) 47,808 (12,037,129) 2,129,620 - 327,491 - (455,217) (127,726)
	- 327,491 - (455,217) (127,726) - - - - - - - - - - - - - - -
	14,490,189 (43,757) 47,808 (12,492,346) 2,001,894

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

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BULLETIN RESOURCES LIMITED ACN 144 590 858

STATEMENT OF CASH FLOWS

For the Half Year Ended 31 December 2015

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Net cash used in operating activities Cash flows from investing activities Payments for exploration expenditure Payments for other joint venture activities Payments to joint venture for plant and equipment Payments to joint venture for mine properties Proceeds on sale of plant and equipment Proceeds from sale of available-for-sale-investments Net cash used in investing activities Cash flows from financing activities Proceeds from loan monies Net cash from financing activities Net decrease in cash and cash equivalents held Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	31 December 2015 31 December 2014 $ $ 912,725 - (850,722) (196,397) 7,197 11,378
	69,200 (185,019)
	(35,069) (1,665) 82,685 - (1,308,726) - (347,975) - 20,000 - 728,084 -
	(861,001) (1,665)
	600,000 -
	600,000 -
	(191,801) (186,684) 857,951 847,070
	666,150 660,386

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

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BULLETIN RESOURCES LIMITED ACN 144 590 858

1. BASIS OF PREPARATION

• (a) The half year financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134 Interim Financial Reporting, applicable accounting standards and other mandatory professional reporting requirements.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Bulletin Resources Limited during the half-year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

The half year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the entity as in the full financial report.

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the company’s annual financial report for the financial year ended 30 June 2015 except as follows:

(i) Revenue:

Gold sales

Revenue from gold production is recognised when the significant risks and rewards of ownership have passed to the buyer.

• (ii) Inventories

Raw materials and stores are valued at the lower of cost and net realisable value. Regular reviews are undertaken to establish whether any items are obsolete or damaged, and if so their carrying value is written down to net realisable value.

Inventories of ore and gold in circuit are valued at the lower of cost and net realisable value. Costs comprise direct material, labour and an appropriate proportion of variable and fixed overhead on the basis of normal operating capacity, and are included as part of mine operating costs in the statement of profit or loss and comprehensive income. Net realisable value is the estimated selling price in the ordinary course of business less cost of completion and the estimated cost necessary to perform the sale.

Inventories require certain estimates and assumptions most notably in regards grades, volumes and densities. Such estimates and assumptions may change as new information becomes available and could impact on the carrying value of inventories.

In the half year ended 31 December 2015, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 January 2016.

It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to the Company’s accounting policies.

(b) Going Concern

At 31 December 2015, Bulletin Resources Limited has cash and cash equivalent assets and available-for-sale financial assets of $1,010,529 (30 June 2015: $1,741,875). It incurred an operating loss of $455,217 for the 6 months to 31 December 2015 (period ended 31 December 2014: $260,384) and has net current liabilities of $381,021 (30 June 2015: current assets of $1,172,140). Included within current liabilities is a gold loan

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BULLETIN RESOURCES LIMITED ACN 144 590 858

1. BASIS OF PREPARATION (cont.)

(b) Going Concern (cont.)

repayment of $1,202,139 which the company believes will be able to settle through future gold production.

As at 31 December 2015, the Company had a 20% interest in the Nicolsons Gold Project in which it is a participating party which is now in production and is expected to reach full production in the second half of the financial year.

Based on the above the preparation of these financial statements on a going concern basis is appropriate.

Should the cost of meeting its joint venture requirements be greater than the production and sale of product from the Nicolsons Gold Project the Company will be required to raise additional finance through debt or equity in order to meet its working capital requirements for the next 12 months. If the Company is unable to do so there is a material uncertainty that may cast significant doubton the Company’s ability to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in these half-year financial statements.

2. AVAILABLE-FOR-SALE FINANCIAL ASSETS

• (a) The Company has a 1.05% (2014: 4.5%) interest Pantoro Limited (PNR), which is involved in exploration of gold and base metals in Australia and Papua New Guinea and is the Company’s joint venture partner in the Nicolsons Gold Project. PNR is listed on the Australian Securities Exchange.

At the end of the period the Company’s investment was $344,379 (30 June 2015: 883,924) which is based on Pantoro’s quoted share price. In the previous period the market value of the investment was lower than the carrying value, and the Company recognised a revaluation through other comprehensive income of $371,248.

The market value of all fair value investments represents the fair value based on quoted prices on active markets (ASX) as at the reporting date without any deduction for transaction costs. These investments are classified as Level 1 financial instruments. There have been no transfers between levels of the fair value hierarchy used in measuring the fair value of these financial instruments, or changes in its classification as a result of a change of the purpose or use of these assets.

3. MINE PROPERTY

MINE PROPERTY
Development areas at cost Mine site establishment Accumulated amortisation Net carrying amount Mine capital development Accumulated amortisation Net carrying amount Total mine properties	31 Dec 15 $ 30 Jun 15 $ - - 1,433,764 465,162 (70,183) -
	1,363,581 465,162
	1,805,842 593,974 (140,893) -
	1,664,949 593,974
	3,028,530 1,059,136

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BULLETIN RESOURCES LIMITED ACN 144 590 858

4. INTEREST BEARING LOANS

Current Finance lease liability (i) Unsecured loan (ii) Non-Current Unsecured loan (ii)	31 Dec 15 $ 30 Jun 15 $ 7,343 21,895 28,918
	36,261 21,895
	600,000 -
	600,000 -

(i) Represents the Company’s share of the finance leases which have repayment terms of less than 12 months over motor vehicles at the Nicolsons Gold Project.

• (ii) Represents the unsecured loan owing to Auro Pty Ltd including for both interest and the principal. The loan accrues interest at 12% per annum and is payable every 6 months. The loan is to be repaid by 31 December 2017.

5. DEFERRED REVENUE

DEFERRED REVENUE
Current Deferred revenue (i) Non-Current Deferred revenue (i)	31 Dec 15 $ 30 Jun 15 $ 1,202,139 567,642
	1,202,139 567,642
	1,097,861 1,732,358
	1,097,861 1,732,358

(i) The Company has a secured loan facility with the Commonwealth Bank of Australia (CBA) which was provided to Bulletin to meet its share of the redevelopment of the Nicolsons mine.

The loan finance has been structured as a gold prepayment facility as follows:

• A gold prepay facility of $2.3 million repayable by the delivery of 1,641 ounces of gold.

• A hedge facility with the CBA for 3,695 ounces at a fixed price of $1,568 per ounce.

• The prepayment facility and the hedge facility are for a period of 22 months commencing in January 2016 and will be satisfied by the delivery of physical gold.

• The loan is secured by a fixed and floating charge over the Company’ share of the Nicolsons Gold Project.

6. ISSUED CAPITAL 174,043,074 (30 June 2015:174,043,074) ordinary shares	31 Dec 15 $ 30 Jun 15 $ 14,490,189 14,490,189

6. ISSUED CAPITAL

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BULLETIN RESOURCES LIMITED ACN 144 590 858

6. ISSUED CAPITAL (cont.)

. ISSUED CAPITAL (cont.)
Issue of options during the period Opening balance at 1 July 2015 Unlisted options issued to directors during the period Unlisted options issued to others during the period	Number of options $ 5,250,000 - - - - -
	5,250,000 -

No dividends have been paid or declared since the start of the financial period, and none are recommended.

7. SEGMENT REPORTING

The Company operates as a joint venture gold producer in Australia. For management purposes, the Company is organised into one main operating segment which involves a 20% interest in the operating Nicolsons Gold Project in Australia. All of the Company’s activities are interrelated and discrete financial information is reported to the Board (Chief Operating Decision Maker) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment. The financial results from this segment are equivalent to the financial statements of the Company as a whole.

8. CONTINGENT ASSETS AND LIABILITIES

In the opinion of the directors, there are no further contingent assets or liabilities as at 31 December 2015 and no changes in the interval between 31 December 2015 and the date of this report.

9. COMMITMENTS

In order to maintain its interest in the joint venture projects in which the Company is involved, the Company must meet its share of costs to maintain its interest in those joint venture projects. The Operator (Halls Creek Mining Pty Ltd) of the joint venture determines the level of funding required to maintain the project based on a formal approved budget in order for the Company to determine its commitment.

As part of the secured loan facility with the CBA (refer Note 5 above) Bulletin has entered into a hedge facility with the CBA for 3,695 ounces of gold at a fixed price of $1,568 per ounce commencing 31 March 2016 with the final delivery being on 31 October 2017.

10. RELATED PARTIES

Arrangements with related parties continue to be in place. For details on these arrangements refer to the 30 June 2015 consolidated annual financial report.

11. EVENTS SUBSEQUENT TO REPORTING DATE

On 29 January 2016 Bulletin commenced repayment of its secured loan to the Commonwealth Bank of Australia (CBA) via gold delivery. Bulletin has executed a Senior Secured Gold Prepaid Forward and Mandatory Hedge Facility to the value of $2.3 million.

Since the end of the period Bulletin has disposed of a further 3.65M shares in PNR on market.

Other than the above, no matter or circumstance has arisen subsequent to the balance date, which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years.

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BULLETIN RESOURCES LIMITED ACN 144 590 858

DIRECTORS’ DECLARATION

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 9 to 16, are in accordance with the Corporations Act 2001, including:

2. (a) complying with Accounting Standards AASB134 Interim Financial Reporting, the Corporations Regulations 2001; and other mandatory professional reporting requirements

3. (b) giving a true and fair view of the Company’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date

4. In the directors’ opinion there are reasonable grounds to believe that Bulletin Resources Limited 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 directors.

Dated at Perth this 15[th] day of March 2016

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Paul Poli Chairman

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Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Bulletin Resources Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Bulletin Resources Limited, which comprises the statement of financial position as at 31 December 2015, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration.

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 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 entity’s financial position as at 31 December 2015 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 Bulletin Resources 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.

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 Bulletin Resources Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.

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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 Bulletin Resources Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the entity’s financial position as at 31 December 2015 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

Emphasis of matter

Without modifying our conclusion, we draw attention to Note 1(b) in the half-year financial report, which describes the principal conditions that raise doubt about the entity's ability to continue as a going concern. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the entity’s ability to continue as a going concern, and therefore, the entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

BDO Audit (WA) Pty Ltd

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Ian Skelton Director

Perth, 15 March 2016