COMPLII FINTECH SOLUTIONS LTD — Interim / Quarterly Report 2012

Mar 14, 2012

RESOURCE STAR LIMITED ABN 71 098 238 585

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CONTENTS

	Page
CORPORATE INFORMATION	1
DIRECTORS’ REPORT	2
AUDITOR’S INDEPENDENCE DECLARATION	4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	7
CONSOLIDATED STATEMENT OF CASH FLOWS	8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	9
DIRECTORS’ DECLARATION	15
INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF RESOURCE STAR LIMITED	16

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

CORPORATE INFORMATION

DIRECTORS

Mr A Bell (Chairman) Mr S Heggen (Managing Director) Mr R Kestel Mr R Benussi

REGISTERED OFFICE

Level 2 Spectrum, 100 Railway Road Subiaco WA 6008

PRINCIPAL PLACE OF BUSINESS

Level 9, 440 Collins Street Melbourne VIC 3000

COMPANY SECRETARY

Ms E Kestel

AUDITORS

HLB Mann Judd (Vic Partnership) Level 1, 160 Queen Street Melbourne VIC 3000

SOLICITORS

Steinepreis Paganin Level 4 The Read Buildings 16 Milligan Street Perth WA 6000

SHARE REGISTRY

Computershare Investor Services Pty Limited Level 2, 45 St Georges Terrace Perth WA 6000

INTERNET ADDRESS

www.resourcestar.com.au

ASX CODES

Shares RSL

COUNTRY OF INCORPORATION AND DOMICILE Australia

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

1

DIRECTORS’ REPORT

Your directors submit the interim financial report of the consolidated entity consisting of Resource Star Limited and the entities it controlled at the end of, or during the half year ended 31 December 2011. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

DIRECTORS

The names of the directors who held office during or since the end of the interim period and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated.

Mr A Bell (Chairman) Mr S Heggen (Managing Director) Mr R Kestel Mr R Benussi Mr C Geach (Resigned 30 November 2011)

REVIEW OF OPERATIONS

During the six months ended 31 December 2011, the Company was conscious of the difficult capital market environment, particularly for the resource exploration sector, and accordingly restrained cash expenditure to the maximum extent possible while continuing to preserve underlying value. In doing so, Resource Star continued to focus on its main exploration prospects in Malawi and Australia.

Resource Star’s major shareholder Red Rock Resources Plc (“RRR”) provided on-going financial support during the period and has continued to provide that support in 2012 as well as demonstrating its longer term commitment by underwriting the first $500,000 of any shortfall in the Company’s current 1 for 1 non-renounceable Entitlement Offer at $0.02 per share which is aiming to raise around $1,140,000 (before costs of approximately $47,000).

In Malawi, at the Livingstonia Uranium Project, the venture was successful in being granted a 100 metre extension to the northern boundary of the existing tenement. This new grant provides additional mineralised strike length of the Chombe prospect for exploration in 2012. Discussions are continuing in Malawi regarding the up to 300 metres of additional strike extension that could be available to the venture. Planning for the 2012 exploration programme is well underway and, on completion of the current Entitlement Offer, that activity will proceed in the first half of 2012.

Also in Malawi, at the Machinga Rare Earths Project, Globe Metals and Mining completed around 4,000m of RC drilling with 3,000m targeting the Machinga Main Zone and 1,000m targeting anomalies previously identified at the Lingoni prospect. The drilling campaign was designed to target and extend the significant heavy rare earth oxides and niobium mineralisation discovered in late 2010. Resource Star looks forward to the receiving the results of the drilling campaign.

Resource Star did not undertake any significant work at the Ilomba Hill Nb-U-REE Project in Malawi during the period due

to the expenditure restraints referred to earlier.

In Australia, at the Spinifex Uranium Project in Western Australia, Resource Star completed geological mapping during the period to confirm possible drill hole locations and drilling parameters. A Work Clearance Survey with the Traditional Owners, the Miriuwung Gajerrong Corporation was also completed. We were also successful in obtaining government permits for a maiden drilling programme to target the interpreted zone of fault associated unconformity at the Project. In October 2011, a two year extension to the exploration license was granted. The 2011 wet season and expenditure restraint meant that the proposed drilling was deferred and re-scheduled for 2012, subject to sufficient funding being available.

In the Northern Territory, the Company completed rehabilitation work at previous drill hole locations and received a report from an independent consultant detailing mapping undertaken at the O’Sheas Hill prospect at Edith River. The report confirmed the presence of sediment related anomalism near an interpreted unconformable contact between different aged formations.

As a consequence of an on-going review of our tenement holdings in the Northern Territory and prioritising expenditures we relinquished the Marrakai EL and reduced the size of two other tenements.

In October 2011, Resource Star announced that we would not proceed with the acquisition of a strategic interest in Cue Resources Ltd (“Cue Resources”) from RRR and Regency Mines Plc due to the movement in equity market prices since the initial agreement. The acquisition had been announced in May 2011. Subsequent to the end of the period, RRR announced that it had agreed to sell its holding in Cue Resources to Uranium Energy Corp and therefore Resource Star has no on-going plans to progress this opportunity.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

2

DIRECTORS’ REPORT (continued)

REVIEW OF OPERATIONS (continued)

Resource Star continues to consider other opportunities in the resource sector that could add value for shareholders.

Competent Person Statements

The information in this report that relates to Exploration Results is based on information prepared by Mr Richard Evans, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Evans is a consultant of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Evans consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

AUDITOR’S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 4 and forms part of the directors’ report for the half-year ended 31 December 2011.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001.

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Simon Heggen Managing Director

Dated 15 March 2012

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

3

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Auditor’s Independence Declaration to the Directors of Resource Star Limited

In relation to our review of the interim financial report of Resource Star Limited for the half-year year ended 31 December 2011, I declare that, to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Resource Star Limited and the entities it controlled during the period.

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HLB Mann Judd

Chartered Accountants

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Jude Lau Partner

15 March 2012 Melbourne

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Note Continuing operations Other revenue 2(a) Exploration expenditure written off Depreciation Other expenses 2(b) Loss from continuing operations before income tax Income tax expense Loss from continuing operations Other comprehensive income / (loss) Total comprehensive income / (loss) for the period Net comprehensive loss attributable to: Members of the parent entity Non-controlling interest Earnings/(loss) per share profit attributable to the ordinary equity holders of the Company: Basic earnings per share (cents per share) Diluted earnings per share (cents per share)	CONSOLIDATED 31 December 2011 $ 31 December 2010 $ 3,065 91,404 (275,751) (358,836) (924) (711) (594,736) (500,247)
	(868,346) (768,390) - -
	(868,346) (768,390)
	- -
	(868,346) (768,390)
	(868,346) (768,390) - -
	(868,346) (768,390)
	(1.53) (1.43) (1.53) (1.43)

The accompanying notes form part of these financial statements.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

5

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011

Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other Total Current Assets Non-Current Assets Deferred exploration and evaluation expenditure 3 Plant and equipment Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Loans and borrowings Employee benefits Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 4(a) Reserves 4(b) Accumulated (losses) TOTAL EQUITY	CONSOLIDATED As at 31 December 2011 $ As at 30 June 2011 $ 15,586 481,324 45,790 64,153 23,549 12,510
	84,925 557,987
	3,046,538 3,225,998 3,279 3,487
	3,049,817 3,229,485
	3,134,742 3,787,472
	449,677 410,013 150,000 - 12,619 1,584
	612,296 411,597
	612,296 411,597
	2,522,446 3,375,875
	31,719,831 31,719,831 466,890 451,973 (29,664,275) (28,795,929)
	2,522,446 3,375,875

The accompanying notes form part of these financial statements.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

6

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Contributed	Accumulated		Total
	equity	(losses)	Reserves	Equity
	$	$	$	$
Balance at 1 July 2010	31,312,858	(27,509,286)	58,989	3,862,561
Total comprehensive loss for the period	-	(768,390)	-	(768,390)
Transactions with owners in their
capacity as owners:
Share issued (net of costs)	406,973	-	-	406,973
Options issued	-	-	398,612	398,612
Options forfeited	-	5,628	(5,628)	-
	406,973	5,628	392,984	805,585
At 31 December 2010	31,719,831	(28,272,048)	451,973	3,899,756
Balance at 1 July 2011	31,719,831	(28,795,929)	451,973	3,375,875
Total comprehensive loss for the period	-	(868,346)	-	(868,346)
Transactions with owners in their
capacity as owners:
Shares issued (net of costs)	-	-	-	-
Options issued	-	-	14,917	14,917
Options forfeited	-	-	-	-
	-	-	14,917	14,917
At 31 December 2011	31,719,831	(29,664,275)	466,890	2,522,446

The accompanying notes form part of these financial statements.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

7

CONSOLIDATED STATEMENT OF CASHFLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Cash flows from operating activities Interest income Payment to suppliers and employees Net cash flows provided by/(used in) operating activities Cash flows from investing activities Payments for exploration and evaluation expenditure Payments for property, plant and equipment Proceeds from investments Net cash provided by/(used in) investing activities Cash flows from financing activities Proceeds from borrowings Proceeds from issue of shares and options Share issue costs Net cash flows provided by/(used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at the end of the period	CONSOLIDATED 31 December 2011 $ 31 December 2010 $ 3,484 56,071 (480,376) (518,341)
	(476,892) (462,270)
	(138,130) (583,863) (716) - - 1,200,000
	(138,846) 616,137
	150,000 - - 829,641 - (98,527)
	150,000 731,114
	(465,738) 884,981 481,324 357,293
	15,586 1,242,274

The accompanying notes form part of these financial statements.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation of half-year report

These general purpose financial statements for the interim reporting period ended 31 December 2011 have been prepared in accordance with Australian Accounting Standard AASB 134 ‘Interim Financial Reporting’ and the Corporations Act 2001 .

This consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the group as the full financial report.

It is recommended that this financial report is to be read in conjunction with the annual financial report for the year ended 30 June 2011 and any public announcements made by Resource Star Limited (“the Company” or “RSL”) during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated

(b) Going concern

In the past six (6) months the Group has continued its exploration programs. In the half-year ended 31 December 2011 the Company recorded a net loss of $868,346 (2010: $768,390) and a net operating cash outflow of $476,892 (2010: $462,270).

The Directors anticipate in order to meet and progress its planned exploration expenditure further funding will be required within the next twelve (12) months and having prepared a cashflow budget of the Group’s working capital requirements have already commenced planning to access additional funding.

The Company is currently undertaking a Non-Renounceable Entitlements Issue which is due to close on 16 March 2012 and has been underwritten for the first $500,000 of any shortfall.

The Board is confident in securing sufficient additional funding for at least the next 12 months and would be able to negotiate with interested parties, which includes a Substantial Shareholder regarding a number of funding options that includes further debt and capital raisings. The Company has a history of successfully raising capital to fund its exploration activities.

Should the Group be unable to raise sufficient funds, it would consider selectively reducing administrative and exploration costs and entering into farm-in and joint venture agreements.

In the event that the Company is unable to secure sources of funding, the Company may be required to realise assets and extinguish liabilities other than in the normal course of business and at amounts different to those stated in this report.

As a result of these matters, the Directors have prepared the financial report on a going concern basis.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(c) Adoption of new and revised Accounting Standards and Interpretations

The following amending Standards have been adopted from 1 July 2011. Adoption of these standards did not have any effect on the financial position or performance of the Group:

• AASB 124 (Revised) Related Party Disclosures (December 2009) simplifies the definition of a related party, clarifying its intended meaning and eliminating inconsistencies from the definition.

• 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] makes numerous editorial changes to a range of Australian Accounting Standards and Interpretations. In particular, it amends AASB 8 Operating Segments to require an entity to exercise judgement 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.

• AASB 2010-4 Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101, AASB 134 and Interpretation 13]

• Emphasises the interaction between quantitative and qualitative AASB 7 disclosures and the nature and extent of risks associated with financial instruments.

• Clarifies that an entity will present an analysis of other comprehensive income for each component of equity, either in the statement of changes in equity or in the notes to the financial statements.

• Provides guidance to illustrate how to apply disclosure principles in AASB 134 for significant events and transactions.

• AASB 2010-7 Amendments to Australian Accounting Standards [AASBs 1, 3, 4, 5, 101, 107, 112, 118, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042].

This standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRS by the IASB. These amendments have no major impact on the requirements of the amended pronouncements. The Group has not elected to early adopt any other new Standards or amendments that are issued but not yet effective.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

2. REVENUES AND EXPENSES (a) Other revenue Finance revenue - bank interest Foreign exchange gain (b) Other expenses Administration expenses Auditor’s remuneration Directors’ fees and salaries Foreign exchange loss Share based payments 3. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Costs carried forward in respect of areas of interest in the following phase: Exploration and evaluation phase – at cost Balance at beginning of period Expenditure incurred Expenditure written off (a) Total deferred exploration and evaluation expenditure	CONSOLIDATED 31 December 2011 $ 31 December 2010 $ 3,065 36,680 - 54,724
	3,065 91,404
	329,993 377,026 19,040 13,000 217,351 41,250 13,435 - 14,917 68,971
	594,736 500,247
	CONSOLIDATED 31 December 2011 $ 30 June 2011 $ 3,225,998 2,711,495 96,291 945,687
	3,322,289 3,657,182 (275,751) (431,184)
	3,046,538 3,225,998

The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is dependent upon the successful development and commercial exploitation or sale of the respective areas.

(a) An assessment of the recoverable amount was completed on all tenements and capitalised expenditure totalling $275,751 (2010 half -year: $358,836) was written off. Write-downs occurred where capitalised expenditure was considered to be unreasonably high, not in the Group’s mandated area of “uranium and associated elements” or the licenses have expired.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

4. CONTRIBUTED EQUITY (a) Contributed Equity Ordinary shares_(i) (i) Movement in ordinary shares_ Balance at beginning of period Fully paid ordinary shares issued for cash Placement at 10 cents – 1 November 2010 Share issue costs Balance at end of period	31 December 2011 Number $ 56,928,182 31,719,831 - - - -	CONSOLIDATED 31 December 2011 $ 30 June 2011 $ 31,719,831 31,719,831
		31,719,831 31,719,831
		30 June 2011 Number $ 51,928,182 31,312,858 5,000,000 500,000 - (93,027)
	56,928,182 31,719,831	56,928,182 31,719,831

Fully paid ordinary shares have the right to receive dividends as declared and entitle their holder to vote either in person or by proxy at a meeting of the Company.

Effective 1 July 1998, the Corporations legislation abolished the concepts of authorised capital and par value. Accordingly the parent does not have authorised capital or par value in respect of its shares.

(b) Options reserve Options reserve (i) (i) Movement in options reserve Balance at beginning of period Options issued Options expired/forfeited Balance at end of period	31 December 2011 Number $ 48,514,091 451,973 3,000,000 14,917 - -	CONSOLIDATED 31 December 2011 $ 30 June 2011 $ 466,890 451,973
		466,890 451,973
		30 June 2011 Number $ 800,000 58,989 47,964,091 398,612 (250,000) (5,628)
	51,514,091 466,890	48,514,091 451,973

5. DIVIDENDS PAID AND PROPOSED

No dividends were paid or proposed during the period ended 31 December 2011.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

6. SEGMENT INFORMATION

The Group has identified its operating segment based on the internal reports that are reviewed and used by the Board of Directors (Chief operating decision makers) in assessing performance and determining the allocation of resources.

Following adoption of AASB 8, the identification of the Group’s reportable segments has not changed. During the period, the Group considers that it has operated in two segments, being mineral exploration in Australia and Malawi (Africa).

The following table presents revenue and profit information for the half-year ended 31 December 2011 and 2010 and certain asset and liability information regarding business segments as at 31 December 2011 and 30 June 2011.

	Australia	Malawi (Africa)	Total
	$	$	$
31 December 2011
Segment revenue	3,065	-	3,065
Segment net operating loss after tax	(846,582)	(21,764)	(868,346)
31 December 2010
Segment revenue	91,404	-	91,404
Segment net operating loss after tax	(768,390)	-	(768,390)
31 December 2011
Segment assets	1,541,428	1,593,314	3,134,742
Segment liabilities	(332,953)	(279,343)	(612,296)
30 June 2011
Segment assets	2,203,540	1,583,932	3,787,472
Segment liabilities	(145,689)	(265,908)	(411,597)

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

7. EVENTS OCCURRING AFTER THE REPORTING DATE

On 24 January 2012 the Company announced that Red Rock Resources had agreed to sell all its interest in Cue Resources Ltd. As a result of Red Rock Resources’ decision to accept the offer; Resource Star Limited advised that it will have no further interest in acquiring Shares in Cue Resources Ltd.

On 2 February 2012 the Company announced a Non-Renounceable Entitlement Issue of one (1) Share for every one (1) Share held at an issue price of 2 cents per Share to raise up to $1,140,000, before costs of approximately $47,000. If the offer is fully accepted then an additional 56,928,182 could be issued. The offer is partially underwritten by Red Rock Resources Plc as outlined in the Directors’ Report

As announced on 24 February 2012 the closing date of the Offer has been extended to 16 March 2012.

In early March 2012, 760,000 fully paid Ordinary Shares were released from escrow. These Shares had been issued to Red Rock Resources Plc and were placed in a two (2) year holding lock as requested by the ASX at the time of relisting.

Since 31 December 2011, the Company has received a further loan of $160,000 from Red Rock Resources Plc.

Other than the above, there has not been any matter or circumstance that has arisen after the end of the reporting period that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

8. RELATED PARTY TRANSACTIONS

Red Rock Resources Plc is a substantial shareholder of the Company and holds more than 20% of the issued capital. The amount owing to Red Rock Resources plc (Red Rock) by the Group as at 31 December 2011 was $150,000 (2010: $Nil). There are no specific terms and conditions associated with the loan other than it is non-interest bearing and repayable at call. The loan funds are being used solely for working capital purposes.

In addition, Red Rock has undertaken to underwrite the first $500,000 of any shortfall in the Company’s current nonrenounceable entitlement offer.

9. CONTINGENCIES

There have been no changes in contingent liabilities since the last annual reporting date.

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

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DIRECTORS’ DECLARATION

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

In the opinion of the Directors of Resource Star Limited:

1. The attached interim financial statements and notes thereto are in accordance with the Corporations Act 2001 , including:

2. a complying with Accounting Standard AASB 134 Interim Financial Reporting ; and

3. b giving a true and fair view of the Group’s financial position as at 31 December 2011 and of its performance for the interim period then ended.

4. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable taking into account the factors outlined in Note 1 (b) of the interim financial statements.

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the Corporations Act 2001 .

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Simon Heggen Managing Director

Dated 15 March 2012

RESOURCE STAR LIMITED

INTERIM REPORT 31 DECEMBER 2011

15

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Independent Auditor’s Review Report to the Members of Resource Star Limited

Report on the Interim Financial Report

We have reviewed the accompanying interim financial report of Resource Star Limited (“the Company”) which comprises the consolidated statement of financial position as at 31 December 2011, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes and the directors’ declaration of the Group comprising the Company and the entities it controlled at the halfyear end or from time to time during the half-year.

Directors’ Responsibility for the Interim Financial Report

The directors of the Company are responsible for the preparation of the interim financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine are necessary to enable the preparation of the interim financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the interim financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the Company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

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

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Resource Star Limited is not in accordance with the Corporations Act 2001 including:

• a) giving a true and fair view of the Group’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

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

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Emphasis of Matter – Going Concern Basis

Without qualification to the conclusion expressed above, attention is drawn to the matters highlighted in Notes 1(b) in the interim financial report, which indicate the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.

Matters relating to the electronic presentation of the reviewed interim financial report

This review report relates to the interim financial report of the Company for the half-year ended 31 December 2011 published in the interim report and included on the Company’s website. The Company’s directors are responsible for the integrity of the Company’s website. We have not been engaged to report on the integrity of this web site. The review report refers only to the interim financial report identified above. It does not provide an opinion on any other information which may have been hyperlinked to/from the interim financial report. If users of the interim financial report are concerned with the inherent risks arising from publication on a web site they are advised to refer to the hard copy of the reviewed interim financial report to confirm the information contained in this web site version of the interim financial report.

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HLB Mann Judd

Chartered Accountants

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Jude Lau Partner

15 March 2012 Melbourne