CATALINA RESOURCES LTD — Interim / Quarterly Report 2011

Feb 21, 2011

SHREE MINERALS LIMITED ACN 130 618 683

HALF YEAR FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2010

THIS HALF-YEAR FINANCIAL REPORT IS TO BE READ IN CONJUNCTION WITH THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010

S H R E E M I N E R A L S L I M I T E D

CORPORATE DIRECTORY

DIRECTORS Sanjay Loyalka Mahendra Pal Arun Kumar Jagatramka Andy Lau

COMPANY SECRETARY Stephen Ledger

REGISTERED OFFICE Suite 1a 46 Ord St West Perth WA 6005

Ph: (08) 9322-4944 Fax: (08) 9322-4946

SOLICITORS Steinepreis Paganin Lv 4, 16 Milligan St Perth WA 6000

AUDITORS Grant Thornton Audit Pty Ltd Lv 1, 10 Kings Park Road West Perth WA 6005

BANKERS Commonwealth Bank of Australia St Georges Tce Perth WA 6000

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S H R E E M I N E R A L S L T D

DIRECTORS REPORT

Your directors present their report on the Company for the half year ended 31 December 2010.

DIRECTORS

The names of the directors in office at any time during or since the end of the year are: Sanjay Loyalka Mahendra Pal Arun Kumar Jagatramka Andy Lau

REVIEW OF OPERATIONS AND ACTIVITIES

During the reporting period in addition to field visits to Nelson Bay River and Sulphide Creek tenements the following work was carried out:

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• Preparing NBR work program for 2011 field season.

• Resource estimation for the NBR Project

• Feasibility Study progressed including Metallurgical, environmental and engineering studies of NBR project.

Nelson Bay River Iron Ore Project

The Nelson Bay Iron Project includes two contiguous licences, EL 41/2004 and EL 54/2008. The Project areas are located about 5 km east of the town of Temma and about 70 km southwest of Smithton, in North West Tasmania. Access to the tenements is via the Temma and Heemskirk sealed road and thereon via forestry tracks. The Company has 100% interest in the Project tenements.

The work done (geophysical studies of airborne and ground magnetic data, geological mapping, rock chip sampling) to date has confirmed the presence of beneficiable magnetite and DSO (goethitic-hematite) resources within the EL 41/2004.

Feasibility study Progressed

As part of feasibility study, budgetary proposals have been obtained for operations based on mobile contractor equipment, transport contractors & port . These studies have indicated an estimated FOB Burnie port cash cost in the range of A$45 to $50 per ton for DSO product. Physical ore characterisation tests on DSO drill core from NBR suggest that the ore is moderately strong and would produce lump of approximately 65% which fetches a premium price compared to Iron Ore Fines. The company is encouraged by these results especially in current market conditions which are robust for Iron Ore with recent spot prices of iron ore Fines 62% Fe product CFR China of around U$180 per ton and strong outlook driven by demand growth from China.

Aboriginal Cultural Heritage Assessment

An Aboriginal Cultural Heritage Assessment by independent consultants by Cultural Heritage Management Australia (CHMA) of the proposed NBR Mine Development area was completed. No sites of Aboriginal Cultural Heritage or archaeological significance were found within the study area. The general assessment is that the study area encompasses a landscape that is of low archaeological sensitivity. Thus there are no site specific heritage constraints to development activity proceeding within the bounds of these areas.

Tarkine Emergency National Heritage Listing

The Commonwealth Minister has allowed the emergency listing to lapse after the end of the 12 month emergency listing period.

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S H R E E M I N E R A L S L T D

DIRECTORS REPORT

RESULT OF OPERATIONS

The net loss after income tax for the period was $253,167 (2009: $292,764).

FINANCIAL POSITION

The net assets of the Company are $7,463,568 as at 31 December 2010 (at 30 June 2010: $7,721,270).

AUDITOR’S DECLARATION

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 4 for the half-year ended 31 December 2010.

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Sanjay Loyalka

Chairman

Dated the 22[nd] day of February 2011

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S H R E E M I N E R A L S L T D

AUDITORS’ INDEPENDENCE DECLARATION

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S H R E E M I N E R A L S L I M I T E D

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2010

Revenue from continuing operations Interest Received Expenses from continuing operations Employees and consultants Accounting and legal Corporate compliance Rates and other taxes Travel and accommodation Finance charges Occupancy and communications Impairment of capitalised exploration Other expenses Loss before income tax Income tax expense Loss for the period Loss attributable to members of Shree Minerals Other Comprehensive income Total Comprehensive income attributable to members of Shree Minerals Earnings per share for (loss) attributable to ordinary equity holders of the company: Basic (loss) cents per share	31 December 2010 $ 96,647 (148,370) (4,334) (11,736) - (4,436) (879) (26,398) (148,634) (5,027) (253,167) - (253,167) (253,167) - (253,167) (0.29)	31 December 2009 $ 4,500 (183,237) (8,200) (52,090) (16,922) (1,919) (540) (3,265) - (28,091)
		(292,764) - (292,764)
		(292,764)
		-
		(292,764)
		(0.42)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

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S H R E E M I N E R A L S L I M I T E D

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

Notes Assets Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets Non-Current Assets Security deposits Exploration and evaluation assets Property, plant and equipment Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables Provisions Total Current Liabilities Total Liabilities Net Assets Equity Contributed equity 2 Share based option reserve Accumulated losses 3 Total Equity	31 December 2010 $ 2,774,334 80,724 2,855,058 19,000 4,653,458 931 4,673,389 7,528,447 (60,879) (4,000) (64,879) (64,879) 7,463,568 8,158,810 129,145 (824,387) 7,463,568	30 June 2010 $ 3,113,238 86,939
		3,200,177
		19,000 4,556,445 1,036
		4,576,481
		7,776,658 (51,062) (4,326)
		(55,388)
		(55,388)
		7,721,270
		8,163,345 129,145 (571,220)
		7,721,270

The above statement of financial position should be read in conjunction with the accompanying notes.

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S H R E E M I N E R A L S L I M I T E D

STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2010

Balance at 1 July 2009 Shares issued during the period Options issued during the period Capital raising costs Loss attributable to equity shareholders Balance at 31 December 2009 Balance at 1 July 2010 Shares issued during the period Capital raising costs Loss attributable to equity shareholders Balance at 31 December 2010	Issued Capital Share based option reserve Accumulated losses Total $ $ $ 2,581,848 - (133,332) 2,448,516 1,280,000 - - 1,280,000 - 110,696 - 110,696 (76,427) - - (76,427) - - (292,764) (292,764)
	3,785,421 110,696 (426,096) 3,470,021
	8,163,345 129,145 (571,220) 7,721,270 - - - - (4,535) - - (4,535) - - (253,167) (253,167)
	8,158,810 129,145 (824,387) 7,463,568

The above statement of changes in equity should be read in conjunction with the accompanying notes.

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S H R E E M I N E R A L S L I M I T E D

CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2010

Cash flows from operating activities Payments to suppliers and employees (inclusive of GST) Interest received Net cash inflow/(outflow) from operating activities Cash flows from financing activities Proceeds from issues of shares and other equity securities Net cash outflow from financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period	31 December 2010 $ (417,002) 78,096 (338,904) - - (338,904) 3,113,238 2,774,334	31 December 2009 $ (156,431)
		4,500
		(151,931)
		1,642,274
		1,642,274
		1,490,343 235,997
		1,726,340

The above cash flow statement should be read in conjunction with the accompanying notes.

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S H R E E M I N E R A L S L I M I T E D

NOTES TO THE FINANCIAL STATEMENTS

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to the financial period.

(A) BASIS OF PREPARATION AND ACCOUNTING POLCIES

The half-year financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134 Interim Financial Reporting . Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and any public announcements made by Shree Minerals Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the Company and are consistent with those in the annual financial report for the year ended 30 June 2010.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

Accounting Standards not previously applied

The Group has adopted the following new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply to the current interim period. Disclosures required by these Standards that are deemed material have been included in this financial report on the basis that they represent a significant change in information from that previously made available.

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S H R E E M I N E R A L S L I M I T E D

NOTES TO THE FINANCIAL STATEMENTS

Changes in accounting policy

The following Australian Accounting Standards which have been issued or amended and which are applicable to the company but are not yet effective and have not been adopted in preparation of the financial statements at reporting date.

New /revised	Superseded	Superseded		Explanation of amendments	Effective Date	Impact of new standard on the	Expected	date
pronouncement	pronouncement				(i.e. annual reporting periods	financial report	of adoption
					ending on or after)	(if standard is not early adopted)
Accounting Standards
AASB 9 Financial	AASB	139	Financial	AASB 9 introduces new requirements for the classification and	31 December 2013	AASB 9 amends the classification and	1 January 2013
Instruments	Instruments:			measurement of financial assets. AASB 9 uses a single		measurement of financial assets; the
	Recognition		and	approach to determine whether a financial asset is measured at		effect on the entity will be that more
AASB 2009-11	Measurement		(part)	amortised cost or fair value, replacing the many different rules		assets are held at fair value and the
Amendments to Australian Accounting Standards arising from				in AASB 139 and removes the impairment requirement for financial assets held at fair value.		need for impairment testing has been limited to assets held at amortised cost only.
AASB 9
AASB 124 Related	AASB	124 Related Party		This revision amends the disclosure requirements for government	31 December 2011	Since the entity is not a government	1 January 2011
Party Disclosures	Disclosures			related entities and the definition of a related party.		related entity; there is not expected to
						be any changes arising from this
						standard.
AASB 2009-12
Amendments to
Australian
Accounting Standards
arising from AASB
124

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S H R E E M I N E R A L S L I M I T E D

NOTES TO THE FINANCIAL STATEMENTS

New /revised	Superseded	Superseded				Explanation of amendments	Effective Date	Impact of new standard on the	Expected	date
pronouncement	pronouncement						(i.e. annual reporting periods	financial report	of adoption
							ending on or after)	(if standard is not early adopted)
Accounting Standards
AASB 2009-5 Further	N/a					Makes various amendments to a number of standards and	31 December 2010	Given the number of standards	1 January 2010
Amendments to						interpretations in line with the IASB annual improvements		amended by AASB 2009-5, the
Australian Accounting						project.		impact is unlikely to be significant.
Standards arising from
the Annual
Improvements Project
[AASB 5, 8, 101, 107,
117, 118, 136 & 139]
AASB 2009-9	AASB	1	First		Time	AASB 2009-9 makes amendments to ensure that entities applying	31 December 2010	As this is not the first year of adoption	N/a
Amendments to	adoption of			Australian		Australian Accounting Standards for the first time will not face		of IFRSs, these amendments will not
Australian Accounting	Equivalents				to	undue cost or effort in the transition process in particular		have any impact on the entity’s
Standards – Additional	International			Financial		situations.		financial report.
Exemptions for First-	Reporting			Standards
time Adopters	(June	2007)
AASB 2009-10	AASB	132		Financial		AASB 2009-10 makes amendments which clarify that rights,	31 January 2011	As the entity does not have any rights,	N/a
Amendments to	Instruments:					options or warrants to acquire a fixed number of an entity’s own		options or warrants to acquire their
Australian Accounting	Presentation					equity instruments for a fixed amount in any currency are equity		own equity instruments, these
Standards –						instruments if the entity offers the rights, options or warrants pro		amendments will not have any impact
Classification of Rights Issues						rata to all existing owners of the same class of its non-derivative equity instruments.		on the entity’s financial report.
AASB 2009-13	Interpretation			19		This standard amends AASB 1 to allow a first-time adopter to use	30 June 2011	As the entity is not a first-time adopter	N/a
Amendments to AASB						the transitional provisions in Interpretation 19.		of IFRS, this standard will not have any
1 arising from								impact.
Interpretation 19

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S H R E E M I N E R A L S L I M I T E D

NOTES TO THE FINANCIAL STATEMENTS

New /revised	Superseded	Superseded		Explanation of amendments	Effective Date			Impact of new standard on the	Expected	date
pronouncement	pronouncement				(i.e. annual reporting		periods	financial report	of adoption
					ending on or after)			(if standard is not early adopted)
Accounting Standards
AASB 2010-01				These amendments principally give effect to extending the	30 June 2011			As the entity is not a first-time	N/a
Limited exemption from comparative	AASB 1: adoption	First-time of Australian		transition provisions of AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial				adopter of IFRS, this standard will not have any impact.
AASB 7 disclosures for	Accounting Standards			Instruments to first-time adopters of Australian Accounting
first time adopters				Standards.
(Amendments to	AASB	7	Financial
AASB 1 and AASB 7)	instruments: Disclosures
IFRS Annual	Various			Makes various amendments to a number of standards and	Application	dates	either	Given the number of standards	1 January 2011
Improvements 2010				interpretations.	30 June 2011 or			amended by the Annual Improvement,
(May 2010)					31 December 2011			the impact is unlikely to be significant.
Interpretation 19	N/a			This interpretation addresses the accounting by an entity when	30 June 2011			As the entity has not renegotiated any	1 July 2010
Extinguishing Financial				the terms of a financial liability are renegotiated and result in the				financial liabilities into equity
Liabilities with Equity				entity issuing equity instruments to a creditor to extinguish all or				instruments this interpretation is not
Instruments				part of the financial liability. These transactions are sometimes				expected to have any impact on the
				referred to as ‘debt for equity swaps’.				entity’s financial report.
AASB 2009-14	N/a			This amendment to Interpretation 14 addresses the unintended	31 December 2011			As the entity does not have a defined	1 January 2011
Prepayments of a				consequences that can arise from the previous requirements				benefit pension plan this amendment to
Minimum Funding				when an entity prepays future contributions into a defined				Interpretation 14 is not expected to
Requirement				benefit pension plan.				have any impact on the entity’s
(Amendments to								financial report.
Interpretation 14)

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S H R E E M I N E R A L S L I M I T E D

NOTES TO THE FINANCIAL STATEMENTS

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.

2. ISSUED CAPITAL

. ISSUED CAPITAL
Ordinary Shares Issued and fully paid	31 December 2010 $ 8,158,810 No of Shares 87,422,500	30 June 2010 $ 8,163,345
		No of Shares 87,422,500

3. ACCUMULATED LOSSES

. ACCUMULATED LOSSES
	$
Opening balance as at 1 July 2010	442,075
Prior Period adjustments- share option valuation	129,145
Adjusted balance as at 1 July 2010	571,220
Loss attributable to equity shareholders	253,167
Balance as at 31 December 2010	824,387

During the period, a prior period adjustment was made to revalue the share options on issue. This resulted in an adjustment of $129,145 to share based payment expenditure. A corresponding adjustment was made to the Share based option reserve.

4. COMMITMENTS AND CONTINGENCIES

On 21[st] April 2008, the Company entered into a tenement sale agreement with Gujurat NRE Resources NL for the purchase of the right and title to various exploration licenses. Mr Arun Jagatramka is a director of both the company and Gujurat NRE Resources NL. He was appointed to the Board subsequent to this agreement. The company paid consideration in cash and script, however is required to issue a further 10,000,000 shares in the company to Gujurat NRE Resources NL within 30 days of successful completion of;

i) The company completing a bankable feasibility study to be solely funded by the company; ii) The company obtaining funding approval for the development and operation of a mine as contemplated by the bankable feasibility; and

iii) The Board approving a decision to mine, on the Nelson Bay River tenement.

The company has currently met all the expenditure commitments relating to tenement exploration activities as required under the exploration licenses granted by Mineral Resources Tasmania.

Other than the above, the Directors are not aware of any other contingent liabilities or contingent assets.

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S H R E E M I N E R A L S L I M I T E D

NOTES TO THE FINANCIAL STATEMENTS

5. CASH AND CASH EQUIVALENTS

For the purposes of the half-year cash flow statement, cash and cash equivalents comprise the following:

Cash at bank and in hand Short-term deposits	31 December 2010 164,287 2,610,047 2,774,334	30 June 2010 60,395 3,052,843
		3,113,238

6. DIVIDENDS PAID AND PROPOSED

No dividend has been declared or paid during the half-year ended 31 December 2010.

7. SUBSEQUENT EVENTS

On 21[st] January 2011, the Company issued 450,000 ordinary shares at nil consideration. As per the annual general meeting resolution, 300,000 of those shares were approved for issue to one of directors of the Company, Mr Mahendra Pal. Agreement to the issue of Mr Pal’s shares occurred subsequent to the reporting period. The value of these shares as at approval date was 14.5c with an estimated value of $43,500.

At the annual general meeting, shareholders resolved that the Board be authorised to issue and allot up to one & half million (1,500,000) options to the employees, officers, executives, contractors and advisors of the Company other than the Directors of the company, at an exercise price less than market price of the underlying share on the date of the grant of the option in such tranches and with such vesting conditions and expiry dates as the Board deems fit from time to time. The Board has not issued any options as yet and the terms and conditions of any future issue has not yet been determined.

Since balance date there are no other items, transactions or events of a material and unusual nature likely, in the opinion of the Directors, to affect significantly, the results of those operations, or the state of affairs of the Company in future financial years.

8. SEGMENT INFORMATION

The Company operates predominately in one segment involved in mineral exploration and development industry. Geographically, the company is domiciled and operates in one geographic segment being Australia. In accordance with AASB 8 Operating Segments, a management approach to reporting has been applied. The information presented in the Statement of Comprehensive Income and the Statement of Financial Position reflects the sole operating segment.

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S H R E E M I N E R A L S L I M I T E D

DIRECTOR’S REPORT

In the directors' opinion:

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

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(ii) giving a true and fair view of the Company's financial position as at 31[st] December 2010 and of its performance, as represented by the results of its operations, changes in equity and its cash flows, for the financial period ended on that date; and

(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.

This declaration is made in accordance with a resolution of the directors.

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Sanjay Loyalka Chairman

Signed at Perth the 22[nd] day of February 2011.

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