Celsius Resources Limited — Interim / Quarterly Report 2003

Mar 11, 2003

View Resources Ltd

ABN 95 009 162 949

HALF YEARLY REPORT 31 DECEMBER 2002

DIRECTORS' REPORT

The Directors present their report on the consolidated entity consisting of View Resources Ltd (View or Company) and the entities it controlled at the end of, or during, the half year ended 31 December 2002.

$\ddagger$ . Directors

The following persons were Directors of View Resources Ltd during the financial period and up to the date of this report:

David Christian Steinepreis appointed 14 March 2002 Gary Christian Steinepreis appointed 14 March 2002 Hugh David Warner appointed 14 March 2002

$\overline{2}$ . Review of Operations

The Company is pursuing the activity of mineral exploration. During the period the Company participated in the joint ventures over the Wounded Knee and Greenbushes projects as well as actively reviewed new projects for investment. The full details are contained in the quarterly reports released to the ASX.

The operating loss after tax for the half year was \$234,499, (2001; \$1,472,107)

Significant changes in the state of affairs $\mathbf{3}$

There were no significant changes in the state of affairs for the period.

4. Events subsequent to reporting date

On 6 March 2003, the Company announced a conditional agreement to acquire all of the issued capital of Carey Mining (2002) Pty Ltd. The acquisition is conditional, amongst other things, on a placement of approximately 35,900,000 View shares at an issue price of 0.8 cents each; the Zone 29 resource being upgraded to a proven and probable economic reserve of a JORC Code compliant minimum tonnage of 45,000 tonnes and minimum ore reserve grade of 4% nickel (subject to a 10% allowable discrepancy) and completing an entitlement issue to raise sufficient capital.

The acquisition terms, on completion (which shall occur after the conditions have been satisfied), are:

• 100,000,000 View shares at an issue price of 1 cent (voluntary 12 month escrow); $\mathbf{a}$
• cash payment of \$250,000: $b₁$
• 250,000,000 View Consideration shares the subject of certain milestones: C.
• 80,000,000 View shares (voluntary 12 month escrow) and cash payment of \$150,000 on receipt Ť of approval for a notice of intention to mine Zone 29;
• 85,000,000 View shares and cash payment of \$100,000 provided activities generate \$12,000,000 ii. in revenue: and
• iii. 85,000,000 View shares provided activities generate a total of \$20,000,000 in revenue.

The financial effects of the above transaction have not been bought to account at 31 December 2002. The operating results and assets and liabilities of the Company will be bought to account in subsequent financial periods.

This report is signed in accordance with a Resolution of Directors.

Gary Steinepreis Director

West Perth, Western Australia 12 March 2003

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2002

	Note	2002	2001 S
Revenue from operating activities		16,616
Revenue from operating activities		16,616
Employment expenses		(8,766)
Depreciation and Amortisation expense		(263)
Exploration costs expensed		(54, 374)
Office Rental and associated expenses		(21, 882)
Professional Services		(47, 374)
Compliance Expenditure - ASX, ASIC, C/Share		(25, 784)
Salaries and Wages		(64, 806)
Travel		(7,625)
Borrowing costs expensed			(306, 775)
Gain on deconsolidation of controlled entities	2		3,294,426
Other expenses from ordinary activities		(20, 241)	(1,515,544)
Profit (loss) from ordinary activities before income tax expense		(234, 499)	1,472,107
Income tax expense
Net profit (loss)		(234, 499)	1,472,107
		Cents	Cents
Basic earnings (loss) per share	5	(0.10)	1.0

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2002

	31 December 2002 \$	30 June 2002 \$
CURRENT ASSETS
Cash assets	577,563	802,881
Receivables	466	25,843
Total Current Assets	578,029	828,724
NON-CURRENT ASSETS
Plant and Equipment	2,370
Other Assets	20,000	20,000
Total Non-Current Assets	22,370	20,000
TOTAL ASSETS	600,399	848,724
CURRENT LIABILITIES
Payables	8,987	22,813
Total Current Liabilities	8,987	22,813
TOTAL LIABILITIES	8,987	22,813
NET ASSETS	591,412	825,911
EQUITY
Contributed equity	38,575,691	38,575,691
Accumulated losses	(37, 984, 279)	(37,749,780)
TOTAL EQUITY	591.412	825.911

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

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

	2002 S	2001 \$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees	(234, 531)	(1,390,417)
Interest received	24,419
Interest paid		(307,008)
GST Refund	4,794
Net Cash (Outflow) From Operating Activities	(205, 318)	(1,697,425)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Investments	(20,000)
Net Cash (Outflow) From Investing Activities	(20, 000)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of other loans		(1,882,115)
Proceeds from issue of shares and options		1,094,694
Net Cash Inflow (Outflow) From Financing Activities		(787, 421)
Net Increase (Decrease) in Cash Held	(225, 318)	(2,484,846)
Cash at the Beginning of the Financial Period	802,881	2,496,846
Cash at the End of the Financial Period	577,563	12,000

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

1. Summary of Significant Accounting Policies

This general purpose financial report for the interim half-year reporting period ended 31 December 2002 has been prepared in accordance with Accounting Standard AASB 1029 Interim Financial Reporting, other mandatory professional reporting requirements (Urgent Issues Group Consensus Views), other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2002 and any public announcements made by View Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies have been consistently applied by the Company and are consistent with those applied in the 30 June 2002 annual financial report.

2. Individually Significant Items

	Half year 2002	Half year 2001 \$
Gain on deconsolidation of controlled entities		3.294.426

3. Contingent Liabilities

There were no contingent liabilities, not provided for in the financial statements of the Company and consolidated entity as at 31 December 2002, other than:

Mineral Tenement Leases - Australia a).

In order to maintain current rights of tenure to mining tenements, the Company in its own right or in conjunction with its joint venture partners may be required to outlay amounts of approximately \$5,000 (2002: \$5,000) per annum on an ongoing basis in respect of tenement lease rentals and to meet the minimum expenditure requirements of the Western Australian Mines Department. These obligations are expected to be fulfilled in the normal course of operations by the Company or its joint venture partners and is subject to variations dependent on various matters, including the results of exploration on the mineral tenements.

b) Claims of Native Title

Legislative developments and judicial decisions (in particular the uncertainty created in the area of Aboriginal land rights by the High Court decision in the "MABO" case and native title legislation) may have an adverse impact on the Company's exploration and future production activities and its ability to fund those activities. It is impossible at this stage to quantify the impact (if any) which these developments may have on the Company's operations.

Native title claims have been made over ground in which the Company currently has an interest. It is possible that further claims could be made in the future. However, the Company has not undertaken the considerable legal, historical, anthropological and ethnographic research, which would be necessary to determine whether any current or future claims, if made, will succeed and, if so, what the implications would be for the Company.

4. Seament Information

The Company operates in one business segment, being mineral exploration, in Australia.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2002

5. Earnings Per Share

	Half year 2002 cents	Half year 2001 cents
Basic earnings (loss) per share	(0.10)	1.0
Earnings used in calculating earnings per share	(234, 499)	1.472.107
Weighted average number of shares used as the denominator in calculating basic earning per share	239,258,554	146.291.812

6. Events subsequent to reporting date

On 6 March 2003, the Company announced a conditional agreement to acquire all of the issued capital of Carey Mining (2002) Pty Ltd. The acquisition is conditional, amongst other things, on a placement of approximately 35,900,000 View shares at an issue price of 0.8 cents each; the Zone 29 resource being upgraded to a proven and probable economic reserve of a JORC Code compliant minimum tonnage of 45,000 tonnes and minimum ore reserve grade of 4% nickel (subject to a 10% allowable discrepancy) and completing an entitlement issue to raise sufficient capital.

The acquisition terms, on completion (which shall occur after the conditions have been satisfied), are:

• 100,000,000 View shares at an issue price of 1 cent (voluntary 12 month escrow); $a -$
• cash payment of \$250,000: b.
• 250,000,000 View Consideration shares the subject of certain milestones: $\mathbf{c}$ .
• 80,000,000 View shares (voluntary 12 month escrow) and cash payment of \$150,000 on receipt Ì. of approval for a notice of intention to mine Zone 29;
• 85,000,000 View shares and cash payment of \$100,000 provided activities generate \$12,000,000 ii. in revenue: and
• iii. 85,000,000 View shares provided activities generate a total of \$20,000,000 in revenue.

The financial effects of the above transaction have not been bought to account at 31 December 2002. The operating results and assets and liabilities of the Company will be bought to account in subsequent financial periods.

VIEW RESOURCES LTD

DIRECTORS' DECLARATION

The Directors of the Company declare that:

• $\mathbf{1}$ . The financial statements and notes, as set out on pages 3 to 7:
• comply with Accounting Standards, the Corporations Regulations 2001 and other a) mandatory professional reporting requirements; and
• give a true and fair view of the consolidated entity's financial position as at 31 December $b)$ 2002 and of its performance, as represented by the results of its operations and cash flows, for the half-year ended on that date.
• In the Directors' opinion there are reasonable grounds to believe that the Company will be able to $\overline{2}$ . pay its debts as and when they become due and payable.

This declaration has been made in accordance with a resolution of the Directors.

Gary Steinepreis Director

West Perth 12 March 2003

Independent review report to the members of View Resources Limited

PricewaterhouseCoopers ABN 52 780 433 757

$_{\rm{OV1}}$ 250 St Georges Terrace PERTH WA 6000 GPO Box D198 PERTH WA 6840 DX 77 Perth Anstralia www.pwcglobal.com/au-Telephone +61 8 9238 3000 Facsimile +61 8 9238 3377

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report, set out on pages $3$ to $8$ is not presented in accordance with :

• the Corporations Act 2001 in Australia, including giving a true and fair view of the financial position of the View Resources Limited as at 31 December 2002 and of its performance for the half-year ended on that date
• Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, and the Corporations Regulations 2001.

This statement must be read in conjunction with the following explanation of the scope and summary of our role as auditor.

Scope and summary of our role

The financial report – responsibility and content

The preparation of the financial report for the half-year ended 31 December 2002 is the responsibility of the directors of View Resources Limited.

The auditor's role and work

We conducted an independent review of the financial report in order for the Company to lodge the financial report with the Australian Securities & Investments Commission. Our role was to conduct the review in accordance with Australian Auditing Standards applicable to review engagements. Our review did not involve an analysis of the prudence of business decisions made by the directors or management.

This review was performed in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report does not present fairly a view in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, and the Corporations Regulations 2001, which is consistent with our understanding of the Company's financial position, and its performance as represented by the results of its operations and eash flows.

The review procedures performed were limited primarily to:

• inquiries of company personnel of certain internal controls, transactions and individual items
• analytical procedures applied to financial data.

These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit, and accordingly, we do not express an audit opinion.

Independence

As auditor, we are required to be independent of the Company and free of interests which could be incompatible with integrity and objectivity. In respect of this engagement, we followed the independence requirements set out by The Institute of Chartered Accountants in Australia, the Corporations Act 2001 and the Auditing and Assurance Standards Board.

PricewaterhouseCoopers

Alan Good Partner

Perth 12 March 2003