Celsius Resources Limited - Annual Report 2010

DIRECTORS’ & FINANCIAL REPORTS

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2009/10

DIRECTORS’ REPORT

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Your directors present their report on the consolidated entity, consisting of View Resources Limited and the entities it controlled at the end of, or during, the year ending 30 June 2010.

DIRECTORS

The names of directors in office at any time during or since the end of the year are:

NAME OF PERSON POSITION DATE APPOINTED DATE RESIGNED Mr. Peter Stancliffe Chairperson 3 February 2006 9 September 2009 Mr. Tim Gooch Managing Director 26 May 2006 9 September 2009 Mr. Jeff Gresham Non-Executive Director 20 March 2007 11 September 2009 Mr. William Oliver Non-Executive Director 23 December 2010 - Mr. Ranko Matic Non-Executive Chairman 23 December 2010 - Mr. Simon Mackinnon Non-Executive Director 7 January 2011 -

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

COMPANY SECRETARY

No person held the position of company secretary at the end of the year.

PRINCIPAL ACTIVITIES

During the year the principal continuing activities of the economic entity consisted of mineral exploration.

The following significant change in the nature of the activities of the group occurred during the year:

Andrew Saker and Darren Weaver from Ferrier Hodgson were appointed as Joint and Several Administrators of View Resources Ltd (“View Resources”) on Friday, 8 February 2008. Furthermore, Andrew Saker and Darren Weaver were also appointed as Joint and Several Administrators to View Resources subsidiaries namely View Gold Pty Ltd (“View Gold”) and View Nickel Pty Ltd (“View Nickel”) on Friday, 8 February 2008.

Immediately following the appointment, the administrators took control of the Group’s assets including View Resource’s assets and continued to carry on the Group’s business.

View Gold entered into a binding sale agreement with Navigator (Bronzewing) Pty Ltd (“Navigator”) on 1 April 2009 in relation to the sale and purchase of View Gold’s Bronzewing assets (including all tenements, infrastructure and associated agreements and environmental liabilities attached to the tenements) for an amount of $16.0 million (“Purchase Price”). The Purchase Price was comprised of cash of $9.5 million and the assumption, by Navigator, of the existing environmental liabilities of $4.2 million and additional environmental bond liabilities imposed by the Department of Mines and Petroleum (“DMP”) of $2.3 million in connection with View Gold's tenements. All completion conditions were satisfied on 30 August 2009 and the completion of the sale occurred on 30 September 2009. Total settlement proceeds in the amount of $9.5 million were received and $4.14 million released to View Nickel with respect to the DMP environmental bonds that View Nickel assumed on behalf of View Gold pursuant to the loan agreement.

Throughout the administration, the Administrators have been in discussions with a number of parties regarding the possible restructure and recapitalisation of the Group including View Resources’ major shareholder, IMC.

DIRECTORS’ REPORT

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OPERATING RESULTS

The consolidated profit of the economic entity after providing for income tax amounted to $6,865,934 (2009: ($5,659,139 loss)).

DIVIDENDS

No dividends were paid or declared since the start of the financial year. No dividend has been recommended.

REVIEW OF OPERATIONS

These Financial Statements cover the period from 1 July 2009 to 30 June 2010. The Company had been under voluntary administration from 8[th] February 2008 to the 9[th] February 2011 during which time it had entered into a Deed of Company Arrangement and Reconstruction Deed which provides for existing debts as at the time of appointment of the Administrators to be extinguished and facilitates the Company being recapitalised and reinstated to quotation on the Australian Securities Exchange (ASX). These Financial Statements report results and the financial position that are not representative of the position of the Company following completion of the recapitalisation and should not be used as the basis for any decision about the Company or its prospects.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Significant changes in the state of affairs of the consolidated entity during the financial year were as follows:

FINANCIAL POSITION

The net assets of the consolidated entity have increased by $6,865,934 from a net asset deficiency of $43,545,067 at 30 June 2009 to a net asset deficiency of $36,679,133 at 30 June 2010.

The consolidated entity’s net working capital deficiency, being current assets less current liabilities, has decreased from ($36,282,179) in 2009 to ($31,037,112) in 2010.

DIRECTORS’ REPORT

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MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

Following the second adjourned meeting of creditors held on 25 July 2008 whereby creditors accepted a DOCA proposal presented by Austral-Asia Resources and Infrastructural Investments Pty Ltd (“AARII”), View Resources entered into a DOCA on 15 August 2008. As certain conditions under the DOCA had not been satisfied, a third meeting of creditors was held on 12 January 2010 whereby creditors accepted the Varied DOCA proposal presented by AARII. The terms of the this DOCA provided that the effectuation of the View Resources DOCA is subject to the conditions of the View Nickel DOCA being effectuated and fund monies being distributed by 20 December 2010; and under the terms of the View Nickel DOCA, the Deed Administrators must realise View Nickel's 30% interest in the Carnilya Hill Joint Venture by 20 December 2010. The Deed Administrators were not in a position to realise View Nickel’s interest in the CHJV and distribute the proceeds by 20 December 2010.

Following a marketing and sale campaign, the Administrators received a Varied DOCA proposal by Brijohn Nominees Pty Ltd (the Syndicate) which was capable of being accepted by creditors.

The major terms of the Syndicate’s Varied DOCA Proposal (the DOCA Proposal) are as follows:

The Syndicate will pay a total amount of $900,000 to the Deed Administrators as follows:
i. $675,000 to the Deed Administrators in consideration for View Resources’ shareholding in View Nickel, the View Resources loan to View Nickel and the debt owed to View Resources by View Gold, all the subject of View Nickel’s charge over View Resources. This amount will be paid to the secured creditor given its existing outstanding debt; and
ii. $225,000 to the Deed Administrators to be distributed to the View Resources’ Creditors’ Trust in full and final satisfaction of View Resources’ unsecured creditor claims;
Payment of $1,225,000 to the VNI Trustees of which $1,200,000 is to be paid to AARII in consideration of the AARII Debt.
The completion of the DOCA Proposal is subject to:
a. Prior to 31 January 2011, the ASX not revoking its stance that View Resources does not need to re-comply with chapters 1 & 2 of the ASX Listing Rules;
b. Receiving View Resources’ creditor approval to the Varied DOCA Proposal;
c. Obtaining various shareholder approvals, including but not limited to proposed capital raisings, share consolidations and director appointments;
d. Preparation of the View Resources’ financial accounts by the Deed Administrators;
e. Payment of the secured creditors cash consideration of $675,000 within five (5) business days of receiving View Resources shareholder approval;
f. View Gold to be removed from the View Resources’ group structure; and
g. The Deed Administrators obtaining varied (or new) section 477A orders.

DIRECTORS’ REPORT

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MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR (continued)

At completion, the DOCA Proposal will terminate as a result of being wholly effectuated, and:

View Resources unsecured creditor claims will be extinguished against View Resources and each unsecured creditor will have a claim against the Creditors Trust Fund for the same amount of any claim they would have had against View Resources;
View Resources will be released from all creditor claims; and
The View Resources Creditors Trust Fund will be distributed in accordance with the terms of the Creditors Trust Deed which applies the same statutory priorities as a liquidation scenario.

On the 9th February 2011 the Varied DOCA as described above was effectuated and the recapitalisation proposal for the company completed. Control of View Resources Limited and View Nickel Pty Ltd was handed over to the new and current directors.

As a result of the above the Company has extinguished all liabilities associated with the previous administration of the Group and has undertaken the following transactions as part of the DOCA effectuation;

Consolidation of the existing fully paid ordinary shares (Shares) on a one (1) for twenty (20) basis together with the consolidation of its existing options in the same ratio as the existing Shares; and
Issued 50,000,000 new Shares post consolidation at $0.001 each to raise $50,000; and
Issued 800,000,000 new Shares post consolidation at $0.005 each to raise $4,000,000; and
Issue 170,000,000 new options exercisable at $0.01 each and expiring 31 March 2014.

In raising this capital, the Company has then made a payment of $2,125,000 to the Creditor’s Trust to effectuate the DOCA with the Administrators.

Subject to the satisfaction of all outstanding legal and ASX requirements the company is expected to relist on the ASX sometime in due course.

LIKELY DEVELOPMENTS

The Directors believe, on reasonable grounds, that to include in this report particular information regarding likely developments in the operations of the Company and the expected results of those operations in future financial years would be speculative and likely to result in unreasonable prejudice to the Company. Accordingly, this information has not been included in this report.

ENVIRONMENTAL REGULATIONS

The consolidated entity’s operations are subject to environmental regulations in respect of its exploration and development activities. The Directors are not aware of any breaches of any regulations in the period covered by this report.

DIRECTORS’ REPORT

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INFORMATION ON DIRECTORS

Peter W Stancliffe Chairman (Non-executive) (former) Qualifications BE (Civil), FAICD, AFAIM Experience Appointed Chairman February 2006. Board member since February 2006, 30 years experience in general management in Extractive Industries and Building Materials, Petroleum, Steel, Heavy Engineering and Energy and Telecommunication Cables, in Australia and internationally. In 2001 he retired from the position of Chief Executive Officer of Pirelli Cables Australia Limited. Previously, he was the Managing Director of Australian National Industries, a $2.5 billion Australian public company. He spent 26 years with Pioneer International Limited including 15 years in senior general management in Europe. Mr. Stancliffe resigned on 3 September 2009. Special responsibilities Chairman of the Board Interest in Shares and 89,369 ordinary shares at date of resignation. Options 2,000,000 options over ordinary shares at date of resignation. Directorships held in Unknown other listed entities

Timothy J Gooch Managing Director (Executive) (former) Qualifications BSc Hons, Mining Engineering MAusIMM Experience Board member since May 2006, Mr Gooch is a qualified mining engineer with over 25 years experience in the mining industry, having previously worked in gold, nickel, diamonds, and tin both here in Australia and overseas. Companies worked for include BGC Contracting, Jubilee Mines, Ashanti Goldfields and Australian Resources. Mr Gooch has previous experience in the region as General Manager at Jubilee's Cosmos Nickel Mine and the Mt Mc Clure Gold Mine for Australian Resources. Mr Gooch resigned on 9 September 2009.

Special responsibilities Member of Remuneration Committee. Managing Director Interest in Shares and 1,419,369 ordinary shares at date of resignation. Options 1,000,000 options over ordinary shares at date of resignation. Directorships held in Unknown other listed entities

Jeff Gresham Director (Non-executive) (former) Qualifications Bsc-Hons, MAusIMM, MAICD Experience Jeff has over 39 years experience in exploration, mining and the corporate functions both in Australia and overseas. During a career spanning 19 years with WMC he held a number of senior corporate and technical positions, most notably Chief Geologist of the Kambalda Nickel Operations between 1981 and 1985 and Executive Vice President of Exploration for WMC’s Canadian subsidiary Westminster Canada Ltd between 1988 and 1993.

From 1993 to 1997 he was Managing Director of Wiluna Mines Ltd and General Manager Exploration at Homestake Gold of Australia Ltd between 1998 and 2001. He was Managing Director of Titan Resources Ltd from June 2004 until September 2006. Mr Gresham resigned on 11 September 2009.

Special responsibilities Chairman of Remuneration Committee. Interest in Shares and 70,000 Ordinary Shares at date of resignation. Options Directorships held in Unknown. other listed entities

DIRECTORS’ REPORT

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William Oliver Director (Non-executive) Qualifications BSc (Hons), GDipAppFin (FINSA), MAIG, MAusIMM. Experience Mr Oliver was appointed to the position of director on 23 December 2010. Mr Oliver has 12 years’ experience in the international resources industry working for both major and junior companies. He holds an honours degree in Geology from the University of Western Australia as well as a post-graduate diploma in finance and investment from FINSIA. Mr Oliver has led large scale resource definition projects for Rio Tinto and previously worked in near mine exploration/resource definition roles for New Hampton Goldfields and Harmony Gold. He managed exploration in Portugal for Iberian Resources Limited including target generation and grassroots exploration across a range of commodities. More recent roles include Exploration Manager for Bellamel Mining and BC Iron and he is currently Managing Director of Signature Metals (ASX:SBL). He has wide-ranging exploration experience including expertise in nearmine exploration/resource extension and resource definition as well as significant experience in the technical and economic evaluation of resources projects.

Special responsibilities Nil.

Interest in Shares and 4,000,000 post February 2011 consolidation shares. Options Directorships held in Managing Director of Signature Metals Ltd (1 October 2008). other listed entities Ranko Matic Chairman (Non-executive)
Qualifications B.Bus, CA

Experience Mr Matic was appointed to the position of director on 23 December 2010. Mr Matic is a Chartered Accountant with over 20 years experience in the areas of financial and executive management, accounting, audit, business and corporate advisory. Mr Matic has considerable experience in a range of industries with particular exposure to public listed companies and large private enterprises. Mr Matic is a Director of a Chartered Accounting firm and a Corporate Advisory company based in West Perth and has specialist expertise and exposure in the areas of audit, corporate services, due diligence, mergers & acquisitions, and valuations. Through these positions Mr Matic has been involved in an advisory capacity to over 35 initial public offerings on the ASX in the last 8 years. Mr Matic has also acted as CFO and company secretary for companies in the public listed and private sectors and currently holds the positions of non-executive chairman and company secretary for Messina Resources Ltd, nonexecutive director and company secretary for East Energy Resources Limited and company secretary for Accent Resources NL, Golden State Resources Limited and White Canyon Uranium Limited.

Special responsibilities Nil.

Interest in Shares and 3,000,000 post February 2011 consolidation shares. Options

DIRECTORS’ REPORT

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Directorships held in Non executive director of East Energy Resources Ltd (appointed 13 July 2007). other listed entities Non executive chairman of Messina Resources Ltd (appointed 2 February 2011)

Simon Mackinnon Director (Non-executive) Qualifications B.Com, CA Experience Mr Mackinnon was appointed to the position of director on 7 January 2011. Mr Mackinnon is a qualified Chartered Accountant who has worked in various banking and corporate roles across Australia and Europe.

After graduating from University of Western Australia with a Bachelor of Commerce (Finance and Accounting) he worked with KPMG Corporate Finance before moving to London where he gained extensive M&A and Corporate Finance experience in the UK market. A position as Director - Business Development and Strategy with a FTSE listed mining company provided significant corporate, strategic and operational exposure. On returning to Australia, Mr MacKinnon has developed strong trade relationships with across Australia, China and India in the servicing of the Australian resource sector.

Special responsibilities Nil.

Interest in Shares and 10,000,000 post February 2011 consolidation shares. Options

Directorships held in Nil other listed entities

REMUNERATION REPORT

This report details the nature and amount of the remuneration for each key management person of View Resources Limited and for the executives receiving the highest remuneration for 30 June 2010. From the period 8[th] February 2008 to 9[th] February 2011 the group has been in administration. The current directors were not the directors during any part of the financial year end for the 30 June 2010. Most of the information for this report has been excluded due to their being no known remuneration for KMP in office during the year and any required information not being available as all the information and knowledge resided with the previous directors and the accounting records as provided are not complete enough to extract details of remuneration, if any, for the year ended 30 June 2010. The information provided is based on prior years principles and policies in effect for the company at the time.

The remuneration report is set out under the following headings:

A Principles used to determine the nature and amount of remuneration

B Details of remuneration

C Service agreements D Share-based compensation E Additional information

The information provided under headings A-D includes remuneration disclosures that are required under accounting Standard AASB 124 Related Party Disclosures. These disclosures have been transferred from the financial report and have been audited. The disclosures in Section E are additional disclosures required by the Corporations Act 2001 and the Corporations Regulations 2001 which have not been audited.

DIRECTORS’ REPORT

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REMUNERATION REPORT (continued)

A Principles used to determine the nature and amount of remuneration (audited)

The objectives of the Company’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:

competitiveness and reasonableness;
performance linkage / alignment of executive compensation;
transparency.

With reference to external remuneration reports, the Company has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the organisation. Alignment to shareholders’ interests:

has economic profit as a core component of plan design;
focuses on sustained growth in share price and delivering constant return on assets as well as focusing the executive on key non-financial drivers of value;
attracts and retains high calibre executives.

Alignment to program participants’ interests:

rewards capability and experience;
reflects competitive reward for contributing to shareholder growth;
provides a clear structure for earning rewards;
provides recognition for contribution.

The framework provides a mix of fixed and variable pay, and a blend of short and long-term incentives. As executives gain seniority with the group, the balance of this mix shifts to a higher proportion of “at risk” rewards.

Non-executive directors

Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non-executive directors’ fees and payments are reviewed annually by the Board. The Chairman’s fees are determined independently to the fees of non-executive directors based on comparative roles in the external market.

Non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically recommended for approval by shareholders. The maximum currently stands at $300,000 per annum and was approved by shareholders at the Annual General Meeting on 21 November 2006.

Executive pay

The executive pay and reward framework has four components:

base pay and benefits
short-term performance incentives
long-term incentives, and
other remuneration such as superannuation.

DIRECTORS’ REPORT

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REMUNERATION REPORT (continued)

A Principles used to determine the nature and amount of remuneration (audited) (continued)

Base pay

Structured as a total employment cost package which may be delivered as a mix of cash and prescribed non-financial benefits at the executives’ discretion.

Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. An independent remuneration report is utilised to ensure base pay is set to reflect the market for a comparable role. Base pay for senior executives is reviewed annually to ensure the executive’s pay is competitive with the market. An executive’s pay is also reviewed on promotion.

There are no guaranteed base pay increases fixed in any senior executives’ contracts.

Senior executives receive benefits including in some cases motor vehicles, parking and mobile phones.

Retirement benefits are delivered in accordance with the current superannuation legislation (being 9%). This amount is paid to the employees’ nominated superannuation funds.

Short-term incentives

If the Group achieves a pre-determined profit target set by the remuneration committee as well as other pre-determined targets, a short-term incentive (STI) pool is available to executives during the annual review. Cash incentives (bonuses) are payable on 30 September each year. Using a profit target ensures variable reward is only available when value has been created for shareholders and when profit is consistent with the business plan. The incentive pool is leveraged for performance above the threshold to provide an incentive for executive out-performance.

Each executive has a target STI opportunity depending on the accountabilities of the role and impact on the organisation or business unit performance. The maximum target bonus opportunity is approximately 40% of base pay.

Each year, the remuneration committee considers the appropriate targets and key performance indicators (KPIs) to link the STI plan and the level of payout if targets are met. This includes setting any maximum payout under the STI plan, and minimum levels of performance to trigger payment of STI.

The remuneration committee is responsible for assessing whether the KPIs are met. To help make this assessment the committee receives detailed reports on performance from management and external remuneration consultants.

The short-term bonus payments may be adjusted up or down in line with under or over achievement against the target performance levels. This is at the discretion of the remuneration committee.

The STI target annual payment is reviewed annually.

DIRECTORS’ REPORT

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REMUNERATION REPORT (continued)

A Principles used to determine the nature and amount of remuneration (audited) (continued)

The following summarises the performance of the Company over the last 5 financial years:

	2006	2007	2008	2009	2010
Revenue ($)	12,449,657	1,788,299	7,109,642	272,771	362,329
Net profit/(loss) after income tax ($)	(7,090,488)	(20,864,594)	(100,452,964)	(5,659,139)	6,865,934
Share price at year end (cents/share)	14.0	44.0	Suspended	Suspended	Suspended
Dividends paid (cents/share)	-	-	-	-	-

Long-term incentives

Executives are issued with incentive options on commencement. The number, strike price, expiry date and vesting periods of these options are decided by the Board and are based on the executives position and experience, as well as the need to attract suitably qualified persons to the Company.

B Details of remuneration (audited)

Amounts of remuneration

There was no known remuneration for the directors and the key management personnel (as defined in AASB 124 Related Party Disclosures ) of View Resources Limited and the View Resources Group for the year ended 30 June 2010.

The key management personnel of View Resources Limited includes the directors as per pages 5 to 7 above. There are no other key management personnel for the year ended 30 June 2010.

C Service agreements (audited)

There are no key management personnel that have or had service agreements for the year ended 30 June 2010.

D Share-based compensation (audited)

Options

There were no options granted during the financial year affecting remuneration in this or future reporting periods.

Options granted carry no dividend or voting rights.

MEETING OF DIRECTORS

There were no meetings of the Company’s board of directors held during the year ended 30 June 2010 as it was under administration for the whole period.

NON-AUDIT SERVICES

The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Company and/or the consolidated entity are important.

DIRECTORS’ REPORT

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REMUNERATION REPORT (continued)

E Additional Information – unaudited (continued)

There were no non-audit services provided for the year ending 30 June 2010. Further details are set out in Note 21 of the financial statements.

The board of directors is satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of nonaudit services by the auditor, as set out in Note 21 of the financial statements, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed by the audit committee to ensure they do not impact the integrity and objectivity of the auditor;
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants .

INSURANCE OF OFFICERS

For the year ended 30 June 2010, all directors and the specified executives of the consolidated entity were insured by the Company. The insurance covers legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of entities in the consolidated entity, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the company.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001.

AUDITORS’ INDEPENDENCE DECLARATION

A copy of the auditors’ Independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 45.

AUDITOR

BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.

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

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Ranko Matic Non-Executive Chairman

Dated this 31[st] day of May 2011

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010

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Notes Revenue from continuing operations 3 Other income 4 Mining expense Employee expenses Finance costs 5 Vehicle expenses Legal and professional fees Administrators costs Net other expenses Insurance expense Share of net profits/(losses) of associate Profit/ (Loss) before income tax Income tax expense 6 Profit/ (Loss) from continuing operations Profit/ (Loss) from discontinued operations 7 Profit/ (Loss) for the period Total comprehensive income for the period Total comprehensive Profit/(Loss) attributable to members of the parent entity Earnings/ (loss) per share from continuing and discontinued operations Basic earnings/ (loss) per share 26 Diluted earnings per share 26 Earnings/ (loss) per share from continuing operations: Basic earnings/ (loss) per share 26 Diluted earnings per share 26 Earnings/ (loss) per share from discontinued operations: Basic earnings/ (loss) per share 26 Diluted earnings per share 26	Consolidated 2010 2009 $ $ 362,329 272,771 - 1,021,101 (67,500) (13,522) - (57,313) (2,192,923) (3,256,178) (25,720) - (343,133) (726,875) (278,307) (522,992) (221,257) (287,003) - (13,983) 5,629,367 (511,708)
	2,862,856 (4,095,702) - -
	2,862,856 (4,095,702) 4,003,078 (1,563,437)
	6,865,934 (5,659,139)
	- -
	6,865,934 (5,659,139)
	Cents Cents 1.56 (1.29) - N/A 0.65 (0.93) - N/A 0.91 (0.36) - N/A

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

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010

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Notes ASSETS Current assets Cash and cash equivalents 8 Other financial assets 9 Assets classified as held for sale 10 Total current assets Non-current assets Property, plant & equipment 12 Other financial assets 11 Investment accounted for using the equity method 13 Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables 14 Borrowings 15 Total current liabilities Non-current liabilities Borrowings 15 Provisions 16 Total non-current liabilities Total liabilities Net assets Equity Contributed equity 17 Reserves 18 Accumulated losses Total equity	Consolidated 2010 2009 $ $ 9,508,314 3,242,813 - 4,170,800 - 9,548,601
	9,508,314 16,962,214
	20,000 20,000 - 36,492 5,200,424 8,906,605
	5,220,424 8,963,097
	14,728,738 25,925,311
	29,076,820 29,475,926 11,468,606 23,768,467
	40,545,426 53,244,393
	10,862,445 10,860,019 - 5,365,966
	10,862,445 16,225,985
	51,407,871 69,470,378
	(36,679,133) (43,545,067)
	138,078,582 138,078,582 3,312,280 3,312,280 (178,069,995) (184,935,929)
	(36,679,133) (43,545,067)

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

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2010

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Balance at 1 July 2008 Loss for the year Other comprehensive income Total comprehensive income for the year Transactions with owners, directly in equity Balance at 30 June 2009 Balance at 1 July 2009 Profit for the year Other comprehensive income Total comprehensive income for the year Transactions with owners, directly in equity Balance at 30 June 2010	Consolidated Issued Capital Retained Earnings Other Reserves Total 138,078,582 (179,276,790) 3,312,280 (37,885,928) - (5,659,139) - (5,659,139) - - - -
	- (5,659,139) - (5,659,139) - - - -
	138,078,582 (184,935,929) 3,312,280 (43,545,067)
	138,078,582 (184,935,929) 3,312,280 (43,545,067) - 6,865,934 - 6,865,934 - - - -
	- 6,865,934 - 6,865,934 - - - -
	138,078,582 (178,069,995) 3,312,280 (36,679,133)

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

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2010

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Notes Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Interest received Net cash inflow (outflow) from operating activities 27 Cash flows from investing activities Proceeds from sale of property, plant and equipment Proceeds from associates Contributions to associates Proceeds from environmental bonds Net cash inflow (outflow) from investing activities Cash flows from financing activities Cost of capital raising Proceeds from borrowings Repayment of borrowings Net cash (outflow) inflow from financing activities Net increase in cash held Cash at the beginning of the financial year Cash at the end of the financial year 8	Consolidated 2010 2009 $ $ 1,578,000 858,351 (3,064,924) (2,619,142) 79,604 118,371
	(1,407,320) (1,642,420)
	8,578,004 - 16,074,121 6,577,586 (6,738,570) (7,214,597) 4,252,050 -
	22,165,605 (637,011)
	- (400,000) - 2,258,969 (14,492,784) -
	(14,492,784) 1,858,969
	6,265,501 (420,462) 3,242,813 3,663,275
	9,508,314 3,242,813

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010

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1. Summary of significant accounting policies

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretation, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the Company of View Resources Limited and controlled entities and has been prepared in Australian dollars. View Resources Limited is a listed public company (suspended), incorporated and domiciled in Australia.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

The following is a summary of the material accounting policies adopted by the entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

The financial 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.

a) Comparatives

When required by accounting standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Limitations on Preparation

Immediately following the appointment, the administrators took control of the Group’s assets including View Resource’s assets and continued to carry on the Group’s business.

The current Company Directors were not Directors as at the Reporting Date, nor were they parties involved with the Company. Every reasonable effort has been made by the Directors to ascertain the true position of the Group as at 30 June 2010. However, there may be information that the current Directors have not been able to obtain, the impact of which may or may not be material on the accounts.

b) Going Concern

The accounts have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

The Directors believe it is appropriate to prepare these accounts on a going concern basis because under the DOCA effectuated on the 9th February 2011 the Company has extinguished all liabilities associated with the previous administration of the Company and has undertaken the following transactions:

Consolidation of the existing fully paid ordinary shares (Shares) on a one (1) for twenty (20) basis together with the consolidation of its existing options in the same ratio as the existing Shares; and
Issued 50,000,000 new Shares post consolidation at $0.001 each to raise $50,000; and

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

Issued 800,000,000 new Shares post consolidation at $0.005 each to raise $4,000,000; and
Issue 170,000,000 new options exercisable at $0.01 each and expiring 31 March 2014

In raising this capital, the Company has then made a payment of $2,125,000 to the Creditor’s Trust to effectuate the DOCA with the Administrators, thereby allowing them to resign as Administrators of the Company and allowing the Company to relist on the ASX.

Upon satisfaction of all conditions associated with the reinstatement of the shares on the ASX, the Company’s securities will be reinstated on the ASX in due course..

Accordingly the accompanying financial statements have been prepared on a going concern basis.

c) Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all entities controlled by View Resources Limited at the end of the reporting period. A controlled entity is any entity over which View Resources has the power to govern the financial and operating policies so as to obtain benefits from the entity’s activities. Control will generally exist where the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity. In assessing the power to govern, the existence and effect of holdings of actual and potential voting rights are also considered.

Where controlled entities have entered or left the Group during the year, the financial performance of those entities are included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 24 to the financial statements.

In preparing the consolidated financial statements, all inter-group balances and transactions between entities in the consolidated group have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the parent entity.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are shown separately within the Equity section of the consolidated Statement of Financial Position and Statement of Comprehensive Income. The non-controlling interests in the net assets comprise their interests at the date of the original business combination and their share of changes in equity since that date.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

d) Income tax

The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses.

Current and deferred income tax expense (income) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting period. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Tax consolidation

View Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation legislation. Each entity in the Group recognises its own current and deferred tax liabilities, except for any deferred tax liabilities resulting from unused tax losses and tax credits, which are immediately assumed by the parent entity. The group notified the Australian Tax Office that it had formed an income tax consolidated group to apply from 12 August 2003. The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

e) Inventories

Warehouse inventory

Costs are assigned on the basis of weighted average costs.

Mining Stocks

Mining stocks are valued at the lower of cost and net realisable value. The cost of mining stocks includes direct materials, direct labour, transportation costs and variable and fixed overhead costs relating to mining activities. The net realisable value is calculated by multiplying the recoverable contained gold by the lowest hedge price and then subtracting the costs of processing the stock to a finished product.

f) Foreign currency translation

Transactions

Foreign currency transactions are initially translated into Australian currency at the rate of exchange at the date of the transaction. At balance date amounts payable and receivable in foreign currencies are translated to Australian currency at rates of exchange current at that date. Resulting exchange differences are recognised in determining the profit or loss for the year.

g) Trade receivables

All trade debtors are recognised at the amounts receivable as they are due for settlement no more than 120 days from the date of recognition.

Gold debtors are recognised at the current spot rate of gold.

Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised when some doubt as to collection exists and in any event when the debt is more than 60 days overdue.

h) Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits and financial assets that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.

i) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the economic entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

i. Property, plant and equipment (continued)

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation of property, plant and equipment

The Depreciation amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the economic entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The expected useful lives are as follows:

• Computer equipment 3-5 years • Plant and equipment 3-5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

j) Impairment of assets

At each the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information including dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of preacquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives, or more frequently if events or changes in circumstances indicate that they might be impaired.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

k) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for in the parent entity financial statements using the equity method of accounting, after initially being recognised at cost. The Group’s investment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition

The Group’s share of its associates’ post-acquisition profits or losses is recognised in the statement of comprehensive income, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from associates are recognised in the parent entity’s statement of comprehensive income, whilst in the consolidated financial statements they reduce the carrying amount of the investment.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

l) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Group during the reporting period which remains unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability.

m) Borrowings

Loans and debentures are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period it becomes due and is recorded as part of other creditors.

On issue of convertible notes, the fair value of the liability component, being the obligation to make future payments of principal and interest to noteholders, is calculated using a market interest rate for an equivalent nonconvertible note. The residual amount, representing the fair value of the conversion option, is included in equity as other equity securities with no recognition of any change in the value of the option in subsequent periods. The liability is included in borrowings and carried on an amortised cost basis with interest on the notes recognised as borrowing costs on an effective yield basis until the liability is extinguished on conversion or maturity of the notes.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

n) Exploration and evaluation expenditure

Exploration and evaluation expenditures are written off as incurred, except when such costs are expected to be recouped through successful development and exploitation, or sale, of an area of interest. In addition, exploration assets recognised on acquisition of an entity are carried forward provided that exploration and/or evaluation activities in the area have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

The expenditure carried forward when recovery is expected represents an accumulation of direct net exploration and evaluation costs incurred by or on behalf of the Group and applicable indirect costs, in relation to separate areas of interest for which rights of tenure are current.

The successful commercial exploitation of all exploration and evaluation expenditure is dependent upon the Company raising adequate debt and equity funding, which is dependent upon continued investor support.

If it is established subsequently that economically recoverable reserves exist in a particular area of interest, resulting in the decision to develop a commercial mining operation, then in that year the accumulated expenditure attributable to that area, to the extent that it does not exceed the recoverable amount for the area concerned, will be transferred to mine development. As such it will be subsequently amortised against production from that area. Any excess of accumulated expenditure over recoverable amounts will be written off to the statement of comprehensive income.

o) Mine properties and mine development

These assets represent the capital cost incurred on areas of interest for which it has been established, to the satisfaction of the directors, that economically recoverable resources exist.

Costs accumulated in respect of each area of interest represent direct and applicable indirect expenditure incurred by or on behalf of the relevant entity. Indirect expenditure principally consists of charges for depreciation of equipment used in development activities. The costs of successful exploration and evaluation and access and capital development are classified as mine development.

Capital development on underground mines includes expenditure on shaft sinking, declines, development and access drives and ventilation shafts. Amortisation of these costs is provided separately for each mineral resource or mine from the commencement of commercial production as follows:

Mine development is calculated on a units-of-production basis over the estimated recoverable resources. In order to calculate the amortisation, the total costs of development, including net cost incurred to date and estimated future capital development costs are totalled and divided by the total resources. Annual depletion is calculated based on the units of production during the period multiplied by the per unit cost.

p) Restoration, rehabilitation and environmental expenditure

The group has obligations to restore certain sites it occupies on cessation of operations. Under AASB 137 Provisions, Contingent Liabilities and Contingent assets, the group is required to recognise a provision for the present value of restoring the site. This is done by discounting the expected expenditure on rehabilitation at the end of mine life. The unwind of this discount is expensed to the income statement over the mine life.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

q) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are subsequently ready for their intended use or sale.

All other borrowing costs are recognised in income in the period in which they are incurred.

r) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with short periods to maturity and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

s) Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument.

t) Employee benefits

Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wages increases and the probability that the employee may satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

Equity-settled compensation

The Group operates equity-settled share-based payment employee share and option schemes. The fair value of the equity to which employees become entitled is measured at grant date and recognised as an expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is ascertained as the market bid price. The fair value of options is ascertained using a Black and Scholes pricing model which incorporates all market vesting conditions. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting date such that the amount recognised for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Summary of significant accounting policies (continued)

u) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cashflows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

v) Earnings per share

(i) Basic earnings per share

Basic earnings per share is determined by dividing net profit after income tax attributable to members of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

w) Segment reporting

A business segment is identified for a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different to those of other business segments. A geographical segment is identified when products or services are provided within a particular economic environment subject to risks and returns that are different from those of segments operating in other economic environments.

x) Issued capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration.

y) Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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z) Investments and other financial assets

Classification

The Group classifies its investments in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the reporting date which are classified as non-current assets. Loans and receivables are included in trade and other receivables in the statement of financial position.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group’s management has the positive intention and ability to hold to maturity. If the Group were to sell other than an insignificant amount of held-to-maturity financial assets, the whole category would be tainted and reclassified as available-for-sale. Held-to-maturity financial assets are included in non-current assets, except for those with maturities less than 12 months from the reporting date, which are classified as current assets.

(iv) Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in noncurrent assets unless management intends to dispose of the investment within 12 months of the reporting date. Investments are designated available-for-sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term.

Financial assets – reclassification

The Group may choose to reclassify a non-derivative trading financial asset out of the held-for-trading category if the financial asset is no longer held for the purpose of selling it in the near term. Financial assets other than loans and receivables are permitted to be reclassified out of the held-for-trading category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near term. In addition, the Group may choose to reclassify financial assets that would meet the definition of loans and receivables out of the held-for-trading or available-for-sale categories if the Group has the intention and ability to hold these financial assets for the foreseeable future or until maturity at the date of reclassification.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively.

Recognition and derecognition

Regular purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed to the statement of comprehensive income. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in the statement of comprehensive income as gains and losses from investment securities.

Subsequent measurement

Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method.

Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are presented in the statement of comprehensive income within other income or other expenses in the period in which they arise. Dividend income from financial assets at fair value through profit or loss is recognised in the statement of comprehensive income as part of revenue from continuing operations when the Group’s right to receive payments is established.

Changes in the fair value of monetary securities denominated in a foreign currency and classified as availablefor-sale are analysed between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security. The translation differences related to changes in the amortised cost are recognised in profit or loss, and other changes in carrying amount are recognised in equity. Changes in the fair value of other monetary and non-monetary securities classified as available-for-sale are recognised in equity.

Impairment

The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss – is removed from equity and recognised in the statement of comprehensive income. Impairment losses recognised in the statement of comprehensive income on equity instruments classified as available-for-sale are not reversed through the statement of comprehensive income.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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aa) New accounting standards and interpretations

The AASB has issued new, revised and amended standards and interpretations that have mandatory application dates for future reporting periods. The Group has decided against early adoption of these standards. A discussion of those future requirements and their impact on the Group follows:

AASB 9: Financial Instruments and AASB 2009–11: Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] (applicable for annual reporting periods commencing on or after 1 January 2013).

These standards are applicable retrospectively and amend the classification and measurement of financial assets. The Group has not yet determined the potential impact on the financial statements. The changes made to accounting requirements include:

simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value;
simplifying the requirements for embedded derivatives;
removing the tainting rules associated with held-to-maturity assets;
removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost;
allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument; and
reclassifying financial assets where there is a change in an entity’s business model as they are initially classified based on:
- (a) the objective of the entity’s business model for managing the financial assets; and
- (b) the characteristics of the contractual cash flows.
AASB 124: Related Party Disclosures (applicable for annual reporting periods commencing on or after 1 January 2011).
This standard removes the requirement for government related entities to disclose details of all transactions with the government and other government related entities and clarifies the definition of a related party to remove inconsistencies and simplify the structure of the standard. No changes are expected to materially affect the Group.
AASB 2009–4: Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 2 and AASB 138 and AASB Interpretations 9 & 16] (applicable for annual reporting periods commencing from 1 July 2009) and AASB 2009-5: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] (applicable for annual reporting periods commencing from 1 January 2010). These standards detail numerous non-urgent but necessary changes to accounting standards arising from the IASB’s annual improvements project. No changes are expected to materially affect the Group.
AASB 2009–8: Amendments to Australian Accounting Standards – Group Cash-settled Share-based Payment Transactions [AASB 2] (applicable for annual reporting periods commencing on or after 1 January 2010).

These amendments clarify the accounting for group cash-settled share-based payment transactions in the separate or individual financial statements of the entity receiving the goods or services when the entity has no obligation to settle the share-based payment transaction. The amendments incorporate the requirements previously included in Interpretation 8 and Interpretation 11 and as a consequence, these two Interpretations are superseded by the amendments. These amendments are not expected to impact the Group.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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AASB 2009–9: Amendments to Australian Accounting Standards – Additional Exemptions for First-time Adopters [AASB 1] (applicable for annual reporting periods commencing on or after 1 January 2010). These amendments specify requirements for entities using the full cost method in place of the retrospective application of Australian Accounting Standards for oil and gas assets, and exempt entities with existing leasing contracts from reassessing the classification of those contracts in accordance with Interpretation 4 when the application of their previous accounting policies would have given the same outcome. These amendments are not expected to impact the Group.
AASB 2009–10: Amendments to Australian Accounting Standards – Classification of Rights Issues [AASB 132] (applicable for annual reporting periods commencing on or after 1 February 2010). These amendments clarify that rights, options or warrants to acquire a fixed number of an entity’s own equity instruments for a fixed amount in any currency are equity instruments if the entity offers the rights, options or warrants pro-rata to all existing owners of the same class of its own non-derivative equity instruments. These amendments are not expected to impact the Group.
AASB 2009–12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] (applicable for annual reporting periods commencing on or after 1 January 2011).
This standard makes a number of editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of International Financial Reporting Standards by the IASB. The standard also amends AASB 8 to require entities to exercise judgment in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. These amendments are not expected to impact the Group.
AASB 2009–13: Amendments to Australian Accounting Standards arising from Interpretation 19 [AASB 1] (applicable for annual reporting periods commencing on or after 1 July 2010). This standard makes amendments to AASB 1 arising from the issue of Interpretation 19. The amendments allow a first-time adopter to apply the transitional provisions in Interpretation 19. This standard is not expected to impact the Group.
AASB Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments (applicable for annual reporting periods commencing on or after 1 July 2010). This Interpretation deals with how a debtor would account for the extinguishment of a liability through the issue of equity instruments. The Interpretation states that the issue of equity should be treated as the consideration paid to extinguish the liability, and the equity instruments issued should be recognised at their fair value unless fair value cannot be measured reliably in which case they shall be measured at the fair value of the liability extinguished. The Interpretation deals with situations where either partial or full settlement of the liability has occurred. This Interpretation is not expected to impact the Group.

The Group does not anticipate the early adoption of any of the above Australian Accounting Standards.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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AASB 9: Financial Instruments and AASB 2009–11: Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] (applicable for annual reporting periods commencing on or after 1 January 2013).

These standards are applicable retrospectively and amend the classification and measurement of financial assets. The Company has not yet determined the potential impact on the financial statements.

The changes made to accounting requirements include:
simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value;
simplifying the requirements for embedded derivatives;
removing the tainting rules associated with held-to-maturity assets;
removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost;
allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument; and
reclassifying financial assets where there is a change in an entity’s business model as they are initially classified based on:
a. the objective of the entity’s business model for managing the financial assets; and b. the characteristics of the contractual cash flows.

AASB 2009–4: Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 2 and AASB 138 and AASB Interpretations 9 & 16] (applicable for annual reporting periods commencing from 1 July 2009) and AASB 2009-5: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] (applicable for annual reporting periods commencing from 1 January 2010).

These standards detail numerous non-urgent but necessary changes to accounting standards arising from the IASB’s annual improvements project. No changes are expected to materially affect the Company.

AASB 2009–9: Amendments to Australian Accounting Standards — Additional Exemptions for First-time Adopters [AASB 1] (applicable for annual reporting periods commencing on or after 1 January 2010).

These amendments specify requirements for entities using the full cost method in place of the retrospective application of Australian Accounting Standards for oil and gas assets, and exempt entities with existing leasing contracts from reassessing the classification of those contracts in accordance with Interpretation 4 when the application of their previous accounting policies would have given the same outcome. These amendments are not expected to impact the Company.

AASB 2009–10: Amendments to Australian Accounting Standards — Classification of Rights Issues [AASB 132] (applicable for annual reporting periods commencing on or after 1 February 2010).

These amendments clarify that rights, options or warrants to acquire a fixed number of an entity’s own equity instruments for a fixed amount in any currency are equity instruments if the entity offers the rights, options or warrants pro-rata to all existing owners of the same class of its own non-derivative equity instruments. These amendments are not expected to impact the Company.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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bb) Critical accounting judgments, estimates and assumptions

The preparation of these financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are:

Impairment

The Group assesses impairment at the end of each reporting period by evaluating conditions and events specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

Property, plant and equipment was assessed for impairment using the net realisable value test.

Taxation

Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of directors. These estimates take into account both the financial performance and position of the Company as they pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors’ best estimate, pending an assessment by the Australian Taxation Office.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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2. Segment Information

The consolidated entity operates within two reportable business segments, being mineral exploration and discontinued operations in Western Australia..

2010 Sales to external customers Other revenue Total segment revenue Segment result before income tax Profit before income tax Segment assets Total assets Segment liabilities Total Liabilities Acquisitions of property, plant and equipment, intangibles and other non-current segment assets Depreciation and amortisation expense	Exploration activities Total continuing operations Discontinuing operation Mining operations(i) $ $ $ - - - 362,329 362,329 829,914	Consolidated $ - 1,192,243
	362,329 362,329 829,914	1,192,243
	2,862,856 2,862,856 4,003,078	6,865,934
	13,827,168 13,827,168 901,570	6,865,934
		14,728,738
	15,575,392 15,575,392 35,832,479	14,728,738
		51,407,871
	- - -	51,407,871
		-
	- - -	-

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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2. Segment Information (continued)

2009 Sales to external customers Other revenue Total segment revenue Segment result before income tax Loss before income tax Segment assets Total assets Segment liabilities Total Liabilities Acquisitions of property, plant and equipment, intangibles and other non-current segment assets Depreciation and amortisation expense	Exploration activities Total continuing operations Discontinuing operation Mining operations(i) $ $ $ - - 439,230 272,771 272,771 264,721	Consolidated $ 439,230 537,492
	272,771 272,771 703,951	976,722
	(4,095,702) (4,095,702) (1,563,437)	(5,659,139)
	16,817,701 16,817,701 9,107,610	(5,659,139)
		25,925,311
	20,846,310 20,846,310 48,624,068	25,925,311
		69,470,378
	- - -	69,470,378
		-
	- - -	-

(i) On 01 April 2009, the Company entered into a binding agreement with Navigator Pty Ltd to sell its Bronzewing assets (refer to note 7).

3. Revenue From continuing operations

Sales revenue Sale of Goods Other revenue Interest Sundry revenue	Consolidated 2010 2009 $ $ 5,180 162,307 65,180 110,467 291,969 -
	362,329 272,771

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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4. Other income

Other – GST/ Accounting adjustments	Consolidated 2010 2009 $ $ - 1,021,101
	- 1,021,101

5. Expenses

Profit before income tax includes the following specific expenses: Finance costs Interest paid/payable Finance charges paid/payable Finance costs expensed	Consolidated 2010 2009 $ $ 1,216,341 1,949,884 976,582 1,306,294
	2,192,923 3,256,178

6. Income tax expense

(a) Income tax expense Current tax Deferred tax Under (over) provided in prior years (b) Numerical reconciliation of income tax expense to prima facie tax payable Profit/ (Loss) from ordinary activities before income tax expense Tax at the Australian tax rate of 30% (2008 - 30%) Tax effect of amounts which are not deductible (taxable) in calculating taxable ncome: − Legal − Entertainment Deferred tax (liability)/ asset in respect to losses not brought to account Income tax expense	Consolidated 2010 2009 $ $ - - - - - -
	- -
	6,865,934 (5,659,139)
	6,865,934 (5,659,139)
	2,059,780 (1,697,742) - - - -
	2,059,780 (1,697,742) (2,059,780) 1,697,742
	- -

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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6. Income tax expense (continued)

(c) Tax losses

Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit @ 30%	148,765,119 155,631,053
	44,629,536 46,689,316

All unused tax losses were incurred by Australian entities.

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the statement of financial position date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by law.

View Resources Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. Each entity in the group recognises its own current and deferred tax liabilities, except for any deferred tax liabilities resulting from unused tax losses and tax credits, which are immediately assumed by the parent entity. The group notified the Australian Tax Office that it had formed an income tax consolidated group to apply from 12 August 2003. The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

7. Discontinued operations

During March 2008 the administrators of View Resources Limited announced their intention to sell the Bronzewing asset and initiated an active program to locate a buyer and complete the sale. On 01 April 2009, the consolidated group entered into a sale agreement this sale was completed in September 2009 when all conditions precedent were met. For the year ending 30 June 2008 the disposal of the asset triggered the discontinuing of its operations in the Mining business segment.

Financial information of the discontinued operation to the 30 June 2010 is included below.

Financial performance:

The financial performance and cash flow information present are for the year ended 30 June 2010 and 30 June 2009.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Revenue Other Income Expenses Profit/ (Loss) before tax Income tax expense Profit/ (Loss) after income tax of discontinued operation Reversal of unused rehabilitation provision Income tax expense Reversal of unused rehabilitation provision after income tax Profit from discontinued operation Cash flow Information Net cash outflow from operating activities Net cash inflow from investing activities Net cash outflow from financing activities Net decrease in cash generated by the division Carrying amounts of assets and liabilities Cash and cash equivalents Non current asset held for sale Total assets Trade and other payables Provisions Borrowings Total liabilities Net assets	Consolidated $ $ 2010 2009 829,914 703,951 214,583 964,380 (2,407,713) (3,231,768)
	(1,363,216) (1,563,437) - -
	(1,363,216) (1,563,437)
	5,366,294 - - -
	5,366,294 -
	4,003,078 (1,563,437)
	(1,480,854) (1,563,437) 12,829,847 - (7,310,000) -
	4,038,993 (1,563,437)
	901,570 (477,481) - 9,585,092
	901,570 9,107,610
	(24,970,034) (25,659,057) - (4,792,566) (10,862,445) (18,172,445)
	(35,832,479) (48,624,068)

	(34,930,909) (39,516,458)

8. Current assets – Cash and cash equivalents

Cash at bank and in hand

Consolidated	Consolidated
$	$
2010	2009
9,508,314	3,242,813

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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9. Current assets – Other financial assets

Environmental bond	Consolidated $ $ 2010 2009 - 4,170,800
	- 4,170,800

10. Current assets – Non-current assets held for sale

View Gold Pty Limited – Property Plant and Equipment (i) Exploration and evaluation assets(ii)	Consolidated $ $ 2010 2009 - 9,348,601 - 200,000
	- 9,548,601

(i) On 01 April 2009, the Company entered into a binding agreement with Navigator Pty Ltd to sell its Bronzewing assets and the total dollar amount of existing bonds (Refer to Note 7).

(ii) The exploration and evaluation assets relate to costs to acquire tenements and capitalised exploration costs.

11. Non-current assets – Receivables

Other receivables	Consolidated $ $ 2010 2009 - 36,492
	- 36,492

12. Non-current assets – Property, plant & equipment

General plant and equipment Less: Accumulated depreciation Less: Provision for Impairment Total plant and equipment	Consolidated $ $ 2010 2009 20,000 20,000 - - - -
	20,000 20,000

	20,000 20,000

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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12. Non-current assets – Property, plant & equipment (continued)

Reconciliations

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year are set out below.

Consolidated Carrying amount at 1 July 2008 Additions Disposals Depreciation (expense) Provision for impairment Carrying amount at 30 June 2009 Additions Disposals Depreciation (expense) Provision for impairment Carrying amount at 30 June 2010	Computer Equipment $ Office Equipment $ Plant & Equipment $ Total $ - - 20,000 20,000 - - - - - - - - - - - - - - -
	- - 20,000 20,000
	- - - - - - - - - - - - - - -
	- - 20,000 20,000

13. Non-current assets - Investments accounted for using the equity method

13. Non-current assets - Investments accounted for using the equity method
Investment in Carnilya Joint Venture (a) Movements in carrying amount Carrying amount at the beginning of the year Net movement of investment during the year Share of profit/ ( loss) of associate	Consolidated $ $ 2010 2009 5,200,424 8,906,605
	5,200,424 8,906,605
	8,906,605 8,781,303 (9,335,548) 637,010 5,629,367 (511,708)
	5,200,424 8,906,605

During the year, the Group had a 30% interest in Carnilya Hill Farm-in and joint venture for nickel exploration. The interest in the joint venture is controlled by Mincor Resources NL.

(b) Summarised financial information of associates

Group’s Share of:

Group’s Share of:
	Assets	Liabilities	Revenues	Profit/(Loss)
	$	$	$	$
2010
Mincor Carnilya Hill (30% Interest in
Unincorporated JV)	3,458,226	916,295	17,632,377	5,629,367
2009
Mincor Carnilya Hill (30% Interest in
Unincorporated JV)	7,222,805	732,502	9,810,664	(511,708)
The share of contingent liabilities of associate
is $Nil (2009: $Nil)

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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14. Current liabilities – Trade and other payables

Trade creditors Accrued expenses Other creditors Employee benefits – annual leave provision 15. Borrowings Current Administrators debt Total current borrowings Non-Current Lease liabilities Total non-current borrowings (a) Total secured liabilities The total secured liabilities (current and non-current) are as follows: Bank loans Total secured liabilities	Consolidated $ $ 2010 2009 7,929,212 7,929,212 19,348,542 19,479,051 1,276,187 1,544,784 522,879 522,879
	29,076,820 29,475,926
	Consolidated $ $ 2010 2009 11,468,606 23,768,467
	11,468,606 23,768,467
	10,862,445 10,860,019
	10,862,445 10,860,019
	Consolidated $ $ 2010 2009 11,468,606 23,768,467
	11,468,606 23,768,467

(b) Assets pledged as security

Austral-Asia Resources Infrastructural Investments Pty Limited (“AARI”) entered into an agreement on the 11 March 2008 with the Administrators of View Nickel to refinance debts due to IBAL and fund future cash calls in relation to the Carnilya Hill Joint Venture. The Administrators are personally liable for repayment of funds used under this facility.

(c) Interest rate risk exposures

The following table sets out the Group’s exposure to interest rate risk, including the contractual repricing dates and the effective weighted average interest rate by maturity periods.

Exposures arise predominantly from liabilities bearing variable interest rates as the Group intends to hold fixed rate liabilities to maturity.

2010 Administrators loan facility (notes 17 and 20) Lease liabilities (notes 17, 19 and 25) Weighted average interest rate	Fixed interest rate Floating interest rate 1 year or less Over 1 to 2 years Over 2 to 3 years Over 3 to 4 years Over 4 to 5 years Over 5 years Total 11,468,606 - - - - - - 11,468,606 10,862,445 - - - - - - 10,862,445
	22,331,051 22,331,051
	7.30% - - - - - -

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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15. Non-current liabilities – Borrowings (continued)

(c) Interest rate risk exposures (continued)

Fixed interest rate 2009 Floating interest rate 1 year or less Over 1 to 2 years Over 2 to 3 years Over 3 to 4 years Over 4 to 5 years Over 5 years Total Administrators loan facility (notes 17 and 20) 23,768,467 - - - - - - 23,768,467 Lease liabilities (notes 17, 19 and 25) 10,860,019 - - - - - - 10,860,019 34,628,486 - - - - - - 34,628,486 Weighted average interest rate 7.30% - - - - - - 16. Non-current liabilities - Provisions Consolidated $ $ 2010 2009 Provision for rehabilitation - 5,365,966 - 5,365,966 Movement in provision for rehabilitation Consolidated $ $ 2010 2009 Opening balance 5,365,966 5,365,966 Less: unused amounts reversed (5,365,966) - Closing balance - 5,365,966	Fixed interest rate Floating interest rate 1 year or less Over 1 to 2 years Over 2 to 3 years Over 3 to 4 years Over 4 to 5 years Over 5 years Total 23,768,467 - - - - - - 23,768,467 10,860,019 - - - - - - 10,860,019	Fixed interest rate Floating interest rate 1 year or less Over 1 to 2 years Over 2 to 3 years Over 3 to 4 years Over 4 to 5 years Over 5 years Total 23,768,467 - - - - - - 23,768,467 10,860,019 - - - - - - 10,860,019
	34,628,486 - - -	- - - 34,628,486
		- - - Consolidated $ $ 2010 2009 - 5,365,966 - 5,365,966 Consolidated $ $ 2010 2009 5,365,966 5,365,966 (5,365,966) - - 5,365,966

Amounts not expected to be settled within 12 months. Nil (2009:Nil)

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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17. Contributed equity

439,055,266 (2009: 439,055,266) Ordinary shares – Fully paid	Consolidated and Parent 2010 2009 $ $ 138,078,582 138,078,582
	138,078,582 138,078,582

There have been no movements in ordinary share capital during the period.

a) Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll, each share is entitled to one vote.

b) Options

Information regarding View Resources Limited unlisted options, including details of options issued, exercised and lapsed during the financial year and options outstanding at the end of the financial year is set out below.

c) Equity based payments

No equity based payments occurred during the period.

Movements in unlisted options

There have been no movements in unlisted options during the period.

Movements in listed options

There have been no movements in listed options during the period.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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18. Reserves

a) The share-based payment reserve is used to record the value of options provided to employees and directors as part of their remuneration.

Refer movement to Statement of Changes In Equity.

19. Key management personnel disclosures

The company has taken advantage of the relief provided by Corporations Regulation 2M.6.04 and has transferred the detailed remuneration disclosures to the directors’ report. The relevant information can be found in sections A-C of the remuneration report on pages 7 to 10.

However from the period 8th February 2008 to 9th February 2011 the group has been in administration. The current directors were not the directors during any part of the financial year end for the 30 June 2010. There were no Key Management Personnel for the year ended 30 June 2010.

20. Related parties

a) Parent Entities

The parent entity within the Group is View Resources Limited.

b) Subsidiaries

Interests in subsidiaries are set out in note 24.

c) Key management personnel

Disclosures relating to key management personnel are set out in note 18.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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20. Related parties (continued)

d) Transactions with related parties

For the period 8[th] February 2008 to 9[th] February 2011 the group has been in administration. The current directors were not the directors during any part of the financial year end for the 30 June 2010. Most of the information relating to related party transactions for the year ended 30 June 2010 has been excluded or is incomplete due to the required information not being available as all the information and knowledge resided with the previous directors and Administrators and the accounting records as provided are not complete enough to extract details of who all the related parties are and payments made.

The current Board is not able to determine who were related parties at the time and is not able to ascertain full details of the disclosures required.

21. Remuneration of auditors

During the year the following amounts were paid or payable to the auditor BDO Audit (WA) Pty Ltd:

Assurance services 1. Audit services Audit and review of financial reports and other audit work under the Corporations Act 2001 Total remuneration for audit services	Consolidated 2010 $ 2009 $ 22,000 20,000
	22,000 20,000

22. Contingent liabilities

There were no material contingent liabilities, not provided for in the financial statements of the Company as at 30 June 2010.

23. Commitments for expenditure

(a) Capital commitments

There are no such capital commitments.

24. Investments in controlled entities

			Equity Holding
	Country of
Name of Entity	Incorporation	Class of Shares	2010	2009
View Nickel Pty Ltd	Australia	Ordinary	100%	100%
View Gold Pty Ltd	Australia	Ordinary	100%	100%

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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25. Events occurring after reporting date

Following the second adjourned meeting of creditors held on 25 July 2008 whereby creditors accepted a DOCA proposal presented by Austral-Asia Resources and Infrastructural Investments Pty Ltd (“AARII”), View Resources entered into a DOCA on 15 August 2008. As certain conditions under the DOCA had not been satisfied, a third meeting of creditors was held on 12 January 2010 whereby creditors accepted the Varied DOCA proposal presented by AARII. The terms of this DOCA provided that the effectuation of the View Resources DOCA is subject to the conditions of the View Nickel DOCA being effectuated and fund monies being distributed by 20 December 2010; and under the terms of the View Nickel DOCA, the Deed Administrators must realise View Nickel's 30% interest in the Carnilya Hill Joint Venture by 20 December 2010. The Deed Administrators were not in a position to realise View Nickel’s interest in the CHJV and distribute the proceeds by 20 December 2010.

Following a marketing and sale campaign, the Administrators received a Varied DOCA proposal by Brijohn Nominees Pty Ltd (the Syndicate) which was capable of being accepted by creditors.

The major terms of the Syndicate’s Varied DOCA Proposal (the DOCA Proposal) are as follows:

The Syndicate will pay a total amount of $900,000 to the Deed Administrators as follows:
a) $675,000 to the Deed Administrators in consideration for View Resources’ shareholding in View Nickel, the View Resources loan to View Nickel and the debt owed to View Resources by View Gold, all the subject of View Nickel’s charge over View Resources. This amount will be paid to the secured creditor given its existing outstanding debt; and
b) $225,000 to the Deed Administrators to be distributed to the View Resources’ Creditors’ Trust in full and final satisfaction of View Resources’ unsecured creditor claims;
Payment of $1,225,000 to the VNI Trustees of which $1,200,000 is to be paid to AARII in consideration of the AARII Debt.
The completion of the DOCA Proposal is subject to:
a. Prior to 31 January 2011, the ASX not revoking its stance that View Resources does not need to re-comply with chapters 1 & 2 of the ASX Listing Rules;
b. Receiving View Resources’ creditor approval to the Varied DOCA Proposal;
c. Obtaining various shareholder approvals, including but not limited to proposed capital raisings, share consolidations and director appointments;
d. Preparation of the View Resources’ financial accounts by the Deed Administrators;
e. Payment of the secured creditors cash consideration of $675,000 within five (5) business days of receiving View Resources shareholder approval;
f. View Gold to be removed from the View Resources’ group structure; and
g. The Deed Administrators obtaining varied (or new) section 477A orders.

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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At completion, the DOCA Proposal will terminate as a result of being wholly effectuated, and:

View Resources unsecured creditor claims will be extinguished against View Resources and each unsecured creditor will have a claim against the Creditors Trust Fund for the same amount of any claim they would have had against View Resources;
View Resources will be released from all creditor claims; and
The View Resources Creditors Trust Fund will be distributed in accordance with the terms of the Creditors Trust Deed which applies the same statutory priorities as a liquidation scenario.

As a result of the above the Company has extinguished all liabilities associated with the previous administration of the Group and has undertaken the following transactions;

Consolidation of the existing fully paid ordinary shares (Shares) on a one (1) for twenty (20) basis together with the consolidation of its existing options in the same ratio as the existing Shares; and
Issued 50,000,000 new Shares post consolidation at $0.001 each to raise $50,000; and
Issued 800,000,000 new Shares post consolidation at $0.005 each to raise $4,000,000; and
Issue 170,000,000 new options exercisable at $0.01 each and expiring 31 March 2014.

In raising this capital, the Company has then made a payment of $2,125,000 to the Creditor’s Trust to effectuate the DOCA with the Administrators.

Subject to the satisfaction of all outstanding legal and ASX requirements the company is expected to relist on the ASX sometime in due course.

26. Earnings (Loss) per share

Basic earnings per share

	Consolidated	Consolidated
	2010	2009
	Cents	Cents
Earnings/ (Loss) from operations attributable to the ordinary equity holders of the	1.56	(1.29)
company
Earnings/ (Loss) from continuing operations	0.65	(0.93)
Earnings/ (Loss) from discontinued operations	0.91	(0.36)

Diluted earnings per share

Options have a dilutive effect only when the average market price of ordinary shares during the period exceeds the options exercised price. Diluted earnings per share is not calculated as there was no market price of ordinary shares..

Weighted average number of shares used as the denominator

	Consolidated	Consolidated
	2010	2009
	Number	Number
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in	439,055,266	439,055,266
calculating basic earnings per share

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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27. Reconciliation of loss from ordinary activities after income tax to net cash inflow / (outflow) from operating activities

(Loss) from ordinary activities after income tax
Capitalised borrowing costs and interest
Depreciation and amortisation
Net (gain)/loss on disposal of fixed assets
Net (gain)/loss on disposal of investments
Share profit in associate
Change in operating assets and liabilities, net of effects from purchase of
controlled entity:
(Increase)/decrease in trade debtors and receivables
Increase/(decrease) in trade and other creditors
Increase/(decrease) in provisions
Net cash inflow (outflow) from operating activities

Consolidated
2010
2009
$
$
6,865,934
(5,659,109)
2,192,923
3,504,980
-
511,708
(5,366,294)
-
142,053
-
(5,629,367)
-
(44,758)
-
432,189
-
-
-

(1,407,320)
(1,642,420)

28. Share-based payments

Set out below are summaries of options granted:

Grant Date	Expiry date	Exercise price	Balance at start of year Number	Granted during the year Number	Exercised during the year Number	Forfeited during the year Number	Balance at end of the year Number	Vested and exercisable at end of the year Number
Consolidated andparent entity - 2010
31 May2006	31 December 2009	$0.20	2,000,000	-	-	2,000,000	-	-
31 May2006	31 December 2010	$0.25	1,000,000	-	-	1,000,000	-	-
3 January2007	31 March 2010	$0.18	10,000,000	-	-	10,000,000	-	-
18 May2007	30 December 2009	$0.22	750,000	-	-	750,000	-	-
18 May2007	30 December 2009	$0.25	250,000	-	-	250,000	-	-
18 May2007	31 January2010	$0.25	250,000	-	-	250,000	-	-
18 May2007	31 January2010	$0.29	250,000	-	-	250,000	-	-
18 May2007	31 January2010	$0.30	250,000	-	-	250,000	-	-
18 May2007	28 February2010	$0.24	250,000	-	-	250,000	-	-
18 May2007	30 December 2010	$0.27	750,000	-	-	750,000	-	-
18 May2007	30 December 2010	$0.30	250,000	-	-	250,000	-	-
18 May2007	31 January2011	$0.30	250,000	-	-	250,000	-	-
18 May2007	31 January2011	$0.35	250,000	-	-	250,000	-	-
18 May2007	31 January2011	$0.36	250,000	-	-	250,000	-	-
18 May2007	28 February2011	$0.29	250,000	-	-	250,000	-	-

			17,000,000	-	-	17,000,000	-	-
Weighted average exerciseprice			$0.30	-	-	$0.30	-	-

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Grant Date	Expiry date	Exercise price	Balance at start of year Number	Granted during the year Number	Exercised during the year Number	Forfeited during the year Number	Balance at end of the year Number	Vested and exercisable at end of the year Number
Consolidated andparent entity - 2009
31 March 2005	31 March 2009	$0.50	3,400,000	-	-	3,400,000	-	-
13 March 2006	30 June 2009	$0.25	1,000,000	-	-	1,000,000	-	-
31 May2006	31 December 2009	$0.20	2,000,000	-	-	-	2,000,000	2,000,000
31 May2006	31 December 2010	$0.25	1,000,000	-	-	-	1,000,000	-
27 November 2006	30 June 2009	$0.20	5,000,000	-	-	5,000,000	-	-
3 January2007	31 March 2010	$0.18	10,000,000	-	-	-	10,000,000	10,000,000
18 May2007	30 December 2009	$0.22	750,000	-	-	-	750,000	-
18 May2007	30 December 2009	$0.25	250,000	-	-	-	250,000	-
18 May2007	31 January2010	$0.25	250,000	-	-	-	250,000	-
18 May2007	31 January2010	$0.29	250,000	-	-	-	250,000	-
18 May2007	31 January2010	$0.30	250,000	-	-	-	250,000	-
18 May2007	28 February2010	$0.24	250,000	-	-	-	250,000	-
18 May2007	30 December 2010	$0.27	750,000	-	-	-	750,000	-
18 May2007	30 December 2010	$0.30	250,000	-	-	-	250,000	-
18 May2007	31 January2011	$0.30	250,000	-	-	-	250,000	-
18 May2007	31 January2011	$0.35	250,000	-	-	-	250,000	-
18 May2007	31 January2011	$0.36	250,000	-	-	-	250,000	-
18 May2007	28 February2011	$0.29	250,000	-	-	-	250,000	-
11 September 2007	1 August 2011	$0.39	1,050,000	-	-	-	1,050,000	-
11 September 2007	1 August 2011	$0.39	1,050,000	-	-	-	1,050,000	-

			30,875,000	-	-	8,400,000	17,000,000	12,000,000
Weighted average exerciseprice			$0.29	-	-	$0.32	$0.28	$0.19

The weighted average share price at the date of exercise of options exercised during the year ended 30 June 2010 was $Nil (2009 – Nil).

Fair value of options granted

There were no options granted during the period ending 30 June 2010.

29. Parent entity disclosures

(a) Financial Position Assets Current Assets Non-Current Assets Total Assets Liabilities Current Liabilities Non-Current Liabilities Total Liabilities	2010 2009 $ $ 2,266,113 2,752,170 20,001 20,001 2,286,114 2,772,171 3,941,787 3,651,870 2,311,978 4,672,293 6,253,765 8,324,163

NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010 (continued)

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Equity Issued Capital Reserves Retained Profits (Losses) Total Equity (b) Financial Performance Profit / (loss) for the period Other comprehensive income Total Comprehensive Income	138,078,582 138,078,582 3,312,280 3,312,280 (145,358,513) (146,942,854)
	(3,967,651) (5,551,992)
	1,584,341 (601,768) - -
	1,584,341 (601,768)

(c) Contingent Liabilities of the Parent Entity There are no such contingencies.

(d) Commitments of the Parent Entity Not longer than 1 year Longer than 1 year and not longer than 5 years Longer than 5 years Total	- - - - - -
	- -

30. Financial Risk Management

For the period 8th February 2008 to 9th February 2011 the group has been in administration. The current directors were not the directors during any part of the financial year end for the 30 June 2010. Therefore, the current directors are unable to assess the financial risk management policies that existed at 30 June 2010.

31. Company Details

The registered office is:

C/- Bentleys Level 1,12 Kings Park Road West Perth WA 6005 Telephone: 08 9226 4500 Facsimile: 08 9226 4300

The principal place of business is:

C/- Bentleys Level 1,12 Kings Park Road West Perth WA 6005 Telephone: 08 9226 4500 Facsimile: 08 9226 4300

DIRECTORS’ DECLARATION

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Due to the existence of the limitations on the preparation of the financial report as discussed in Note 1, the directors of the company are unable to declare that;

The financial statements set out on pages 11 to 47 are in accordance with the Corporations Act 2001 and:
a) comply with Accounting Standards; and
b) give a true and fair view of the financial position as at 30 June 2010 and of the performance for the year ended on that date of the company;
Due to the existence of the limitations on the preparation of the financial report as discussed in Note 1, the Chief Executive Officer and Chief Finance Officer are unable to declare that;
a) the financial records of the company for the financial year have been properly maintained in accordance with s286 of the Corporations Act 2001;
b) the financial statements and notes for the financial year comply with the Accounting Standards; and
c) the financial statements and notes for the financial year give a true and fair view;

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

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

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_____ Ranko Matic Non-Executive Chairman

Dated this 31[st] day of May 2011

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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31[st] May 2011

View Resources Limited The Directors Level 1, 12 Kings Park Road Perth WA 6005

Dear Sirs,

DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO THE DIRECTORS OF VIEW RESOURCES LIMITED

As lead auditor of View Resources Limited for the year ended 30 June 2010, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.

This declaration is in respect of View Resources Limited and the entities it controlled during the period.

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Brad McVeigh Director

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BDO Audit (WA) Pty Ltd Perth, Western Australia

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) in each State or Territory other than Tasmania.

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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QUALIFIED INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VIEW RESOURCES LIMITED

Report on the Financial Report

We have audited the accompanying financial report of View Resources Limited, which comprises the statement of financial position as at 30 June 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1(a), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards .

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Because of the matter discussed in the Basis for Disclaimer of Auditor’s Opinion paragraph, we were not able to complete an audit in accordance with Auditing Standards.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 .

Basis for Disclaimer of Auditor’s Opinion

The company and consolidated entity were placed into administration on 8 February 2008. Consequently, the financial information relating to the year under audit was not subject to the same accounting and internal controls processes, which includes the implementation and maintenance of internal controls that are relevant to the preparation and fair presentation of the financial report. Whilst the books and records of the company and consolidated entity have been reconstructed to the maximum extent possible, we were unable to satisfy ourselves as to the completeness of the general ledger and financial records as well as the relevant disclosure in the financial report.

As stated in Note 1, the Directors are unable to state that the financial report is in accordance with all the requirements of the Corporations Act 2001 and the Australian Accounting Standards.

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Disclaimer of Auditor’s Opinion

In our opinion:

because of the existence of the limitation on the scope of our work, as described in the Basis for Disclaimer of Auditor’s Opinion paragraph noted above, and the effects of such adjustments, if any, as might have been determined to be necessary had the limitation not existed, we are unable to, and do not express, an opinion as to whether the financial report of View Resources Limited is in accordance with the Corporations Act 2001, including:

(i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2010 and of their performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001; and (iii) Complying with all the requirements of the International Financial Reporting Standards.

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2010. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Disclaimer of Auditor’s Opinion

In our opinion, because of the existence of the limitation on the scope of our work, as described in the Basis for Disclaimer of Auditor’s Opinion paragraph noted above, and the effects of such adjustments, if any, as might have been determined to be necessary had the limitation not existed, we are unable to, and do not express, an opinion as to whether the remuneration report of View Resources Limited is in accordance with section 300A of the Corporations Act 2001.

BDO Audit (WA) Pty Ltd

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Brad McVeigh Director

Perth, Western Australia Dated this 31[st] day of May 2011

AI assistant

Celsius Resources Limited — Annual Report 2010

10450_rns_2011-05-31_fe0f990d-8dc4-45aa-9fa5-3a10fb957da8.pdf

DIRECTORS

COMPANY SECRETARY

PRINCIPAL ACTIVITIES

OPERATING RESULTS

DIVIDENDS

REVIEW OF OPERATIONS

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

FINANCIAL POSITION

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR (continued)

LIKELY DEVELOPMENTS

ENVIRONMENTAL REGULATIONS

INFORMATION ON DIRECTORS

REMUNERATION REPORT

REMUNERATION REPORT (continued)

A Principles used to determine the nature and amount of remuneration (audited)

Non-executive directors

Executive pay

REMUNERATION REPORT (continued)

A Principles used to determine the nature and amount of remuneration (audited) (continued)

Base pay

Short-term incentives

REMUNERATION REPORT (continued)

A Principles used to determine the nature and amount of remuneration (audited) (continued)

Long-term incentives

B Details of remuneration (audited)

Amounts of remuneration

C Service agreements (audited)

D Share-based compensation (audited)

Options

MEETING OF DIRECTORS

NON-AUDIT SERVICES

REMUNERATION REPORT (continued)

E Additional Information – unaudited (continued)

INSURANCE OF OFFICERS

PROCEEDINGS ON BEHALF OF THE COMPANY

AUDITORS’ INDEPENDENCE DECLARATION

AUDITOR

Ranko Matic Non-Executive Chairman

1. Summary of significant accounting policies

a) Comparatives

Limitations on Preparation

b) Going Concern

Summary of significant accounting policies (continued)

c) Principles of consolidation

Summary of significant accounting policies (continued)

d) Income tax

Tax consolidation

e) Inventories

Warehouse inventory

Mining Stocks

f) Foreign currency translation

Transactions

g) Trade receivables

h) Non-current assets (or disposal groups) held for sale and discontinued operations

i) Property, plant and equipment

Plant and equipment

i. Property, plant and equipment (continued)

Depreciation of property, plant and equipment

j) Impairment of assets

Summary of significant accounting policies (continued)

k) Associates

l) Trade and other payables

m) Borrowings

Summary of significant accounting policies (continued)

n) Exploration and evaluation expenditure

o) Mine properties and mine development

p) Restoration, rehabilitation and environmental expenditure

Summary of significant accounting policies (continued)

q) Borrowing costs

r) Cash and cash equivalents

s) Revenue and Other Income

t) Employee benefits

Equity-settled compensation

Summary of significant accounting policies (continued)

u) Goods and services tax (GST)

v) Earnings per share

Celsius Resources Limited Annual Report 2010