CONNECTED MINERALS LIMITED — Interim / Quarterly Report 2014

Mar 13, 2014

LEOPARD RESOURCES NL ACN 009 076 233

HALF-YEAR FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 December 2013

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

CONTENTS PAGE

	Page
Directors’ Report	3
Auditor’s Independence Declaration	6
Condensed Statement of Comprehensive Income	7
Condensed Statement of Financial Position	8
Condensed Statement of Changes in Equity	9
Condensed Statement of Cash Flows	10
Notes to and Forming Part of the Condensed Financial Statements	11
Directors’ Declaration	16
Independent Auditor’s Review Report	17

Page 2

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

DIRECTORS’ REPORT

Your directors present the financial report of the Group for the half-year ended 31 December 2013. 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 half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Craig Willis – Non-Executive Director Richard Griffin – Non-Executive Director Doug Spinley – Non-Executive Director (appointed 21/10/2013) Anthony Hamilton – Executive Director (resigned 17/08/2013)

REVIEW OF OPERATIONS

Pursuant to the General Meeting of members of the Company held on 30[th] April 2013, the Company issued 164,000,000 ordinary shares on 19 July 2013.

Pursuant to its capacity under Listing Rule 7.1, the Company issued 111,940,725 ordinary shares on 1 November 2013.

The net loss for the period was $614,841.

REVIEW OF FINANCIAL CONDITION

Capital Structure

The Group has a net asset position at 31 December 2013 of $121,357.

Treasury Policy

The Board has not considered it necessary to establish a separate treasury function because of the size and scope of the Group’s activities.

Liquidity and Funding

The Group has cash resources of $276,467 at 31 December 2013, together with available-for-sale investments with a fair value of $33,565 and current receivables of $21,208.

Risk Management

The Group takes a proactive approach to risk management. The Board is responsible for ensuring that risks, and also opportunities, are identified on a timely basis and that the Group’s objectives and activities are aligned with the risks and opportunities identified by the Board. The Group believes that it is crucial for all Board members to be a part of this process, and as such the Board has not established a separate risk management committee.

REVIEW OF EXPLORATION ACTIVITIES

Mission Cables Gold Project:

The Board executed an agreement to acquire a 100% interest in Exploration Licence E37/747 which contains two established gold prospects known as Cables and Mission. The project is located within the Yandal Greenstone Belt, in Western Australia. The company settled the transaction at the end of July 2013. Since then, drilling has been undertaken and assay results were received by the company as it works towards upgrading and extending the currently defined Inferred Mineral Resource.

Highlights

• PHW01 with 7.0m @ 32.97g/t Au from 65m (incl 1m at 210.0g/t Au from 66m)

• PHW13 with 16m @ 15.72g/t Au from 71m (incl 1m at 167g/t Au from 73m and 1m at 52.00g/t Au from 74m)

• PHWT03 with 2m @ 19.99g/t Au from 140m (incl 1m at 38.30g/t Au from 140m)

• PHW02 with 4.0m @ 2.24g/t Au from 80m

• PHW02 with 3.0m @ 2.60g/t Au from 75m

• PHW02 with 2.0m @ 2.19g/t Au from 52m

• Significant High grade intersections support high grade mineralization, including ADRC027 4.0m @ 41.96 g/t Au from 78m (incl 1.0m @ 107.50 g/t Au) as previously reported

Page 3

Leopard Resources NL

Half-year Financial Report for the half-year ended 31 December 2013

Cables Hole Id						EOH m	From m	To m		g/t Au**
	Easting	Northing	RL	Az0	Dip0				m		Comment
PHW01	328274	6923027	425	270	-50	180	65	72	7	32.97	*S
or							65	74	9	25.74	*S
and							75	76	1	1.42	*S
and							79	80	1	2.75	*S
and							85	86	1	1.42	*S
and							128	130	2	0.79	*S
PHW02	328221	6923027	425	270	-50	210	52	54	2	2.19	*S
and							74	78	4	2.06	*S
including							75	78	3	2.60	*S
and							80	84	4	2.24	*S
PHW03	328173	6923027	425	270	-50	167	79	80	1	1.62	*S
PHWT03	328220	6923055	425	270	-60	174	140	142	2	19.99	*S
PHW08	328274	6922951	425	270	-50	180	68	69	1	1.06	*S
and							152	153	1	1.02	*S
PHW13	328249	6923083	425	270	-50	177	69	85	16	15.72	*S
including							71	82	11	22.66	*S
PHW14	328199	6923082	425	270	-50	170	110	113	3	0.62	*S
PHW15	328150	6923083	425	270	-50	140	90	94	4	0.75	*S
PHW44	328300	6922832	425	270	-50	160	98	101	3	1.12	*S

C – Composite samples – S - split results. **Gold Results by Fire Assay at SGS Labs, Kalgoorlie.

Table 1: Latest Intersections to 18[th] September, 2013 (Using a cut-off of 0.25 g/t Au).

Nacimiento Exploration:

Los Pinos Lode Mining Claims, Sandoval County, New Mexico

The Company engaged a land management team in the USA to employ local contractors to undertake work on the Los Pinos Lode Mining Claims (“Project”). A staking contractor has also been engaged to re-peg the Los Pinos 1-51 Lode Claims (+/-510 ha) in New Mexico within the next few weeks. This will consist of relocation of boundaries, re-staking, repapering and recording in the BLM New Mexico State Office in Santa Fe, New Mexico. Stage One of the exploration program was completed during this period.

The Coffey Mining report (2009) identified that the Los Pinos claim block is regarded, in terms of exploration potential for Cu and U, as the most interesting of the claim blocks held by the Company. The Nacimiento Uplift region also contains a number of mostly small copper occurrences and two historic mines. Both deposits are sandstone hosted red bed-type, hosted by the Triassic Aqua Zarca Member formation of the Chinle Formation. The Company has decided to concentrate the work program solely on the Los Pinos blocks, letting the Aranda and Coyote blocks lapse. The Los Pinos area is subject to specific property access and site conditions; one of which is that it appears that part of the block is staked over private land requiring ongoing negotiations with owners to allow access and exploration on these parts of the property. The company has undertaken a number of discussions in relation to this asset.

Page 4

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

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 half-year financial report. This Independence Declaration is set out on page 6 and forms part of this directors’ report for half-year period ended 31 December 2013.

Signed in accordance with a resolution of Directors.

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C Willis Director PERTH, Western Australia Dated: 13 March 2014

The information in this release which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”), a Member of the Australasian Institute of Mining & Metallurgy (“AusIMM”) and independent consultant to the Company. Mr Maynard is the principal of Al Maynard & Associates Pty Ltd and has over 30 years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard 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 2012 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Maynard consents to inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Page 5

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the half-year financial report of Leopard Resources NL for the halfyear ended 31 December 2013, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) any applicable code of professional conduct in relation to the review.

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Perth, Western Australia N G Neill 13 March 2014 Partner

HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

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HLB Mann Judd (WA Partnership) is a member of

International, a worldwide organisation of accounting firms and business advisers.

Page 6

Leopard Resources NL

Half-year Financial Report for the half-year ended 31 December 2013

CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Other revenue Interest received – other Gain on sale of available-for-sale financial assets Depreciation expense Impairment of available-for-sale financial assets Impairment of loans Exploration and evaluation expenses written off Borrowing costs Administrative expenses Loss before income tax expense Income tax expense Loss after income tax for the period Other comprehensive income Items that will not be reclassified subsequently to profit or loss: Change in the fair value of available-for-sale assets taken to profit or loss Items that may subsequently be reclassified to profit or loss: Change in the fair value of available-for-sale assets Other comprehensive loss, net of tax Total comprehensive loss for the period Basic loss per share (cents per share)	Consolidated 31 December 2013 31 December 2012 $ $ - 37,369 1,059 72 - 13,738 (3,985) (19,509) (36,641) - - (51,196) (49,688) (16,647) (176,338) (124,551) (349,248) (449,251) (614,841) (609,975) - - (614,841) (609,975) - (4,038) (23,224) (287,132) (4,038) (310,356) (618,879) (920,331) (0.06) (0.17)	Consolidated 31 December 2013 31 December 2012 $ $ - 37,369 1,059 72 - 13,738 (3,985) (19,509) (36,641) - - (51,196) (49,688) (16,647) (176,338) (124,551) (349,248) (449,251) (614,841) (609,975) - - (614,841) (609,975) - (4,038) (23,224) (287,132) (4,038) (310,356) (618,879) (920,331) (0.06) (0.17)
		(609,975) -
		(609,975) (23,224) (287,132)
		(310,356)
		(920,331)
		(0.17)

The accompanying notes form part of these financial statements

Page 7

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets Non-Current Assets Trade and other receivables Available-for-sale assets Property, plant and equipment Deferred exploration expenditure 2 Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Trade and other payables Borrowings 3 Total Current Liabilities Total Liabilities Net Assets EQUITY Issued capital 4 Reserves Accumulated losses Total Equity	Consolidated 31 December 2013 $ 30 June 2013 $ 276,467 181,806 21,208 16,515 297,675 198,321 2,500 2,500 33,565 74,244 55,965 59,950 1,883,246 1,082,272 1,975,276 1,218,966 2,272,951 1,417,287 547,613 747,010 1,603,981 301,681 2,151,594 1,048,691 2,151,594 1,048,691 121,357 368,596 48,153,546 47,841,097 1,104,168 1,049,015 (49,136,357) (48,521,516) 121,357 368,596	Consolidated 31 December 2013 $ 30 June 2013 $ 276,467 181,806 21,208 16,515 297,675 198,321 2,500 2,500 33,565 74,244 55,965 59,950 1,883,246 1,082,272 1,975,276 1,218,966 2,272,951 1,417,287 547,613 747,010 1,603,981 301,681 2,151,594 1,048,691 2,151,594 1,048,691 121,357 368,596 48,153,546 47,841,097 1,104,168 1,049,015 (49,136,357) (48,521,516) 121,357 368,596
		198,321
		2,500 74,244 59,950 1,082,272
		1,218,966
		1,417,287
		747,010 301,681
		1,048,691
		1,048,691
		368,596
		47,841,097 1,049,015 (48,521,516)
		368,596

The accompanying notes form part of these financial statements

Page 8

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Balance at 1 July 2012 Loss for the period Other comprehensive income Total comprehensive loss for the year Securities issued during the year Expenses of issue recovered Equity component of convertible note Balance At 31 December 2012 Balance at 1 July 2013 Loss for the period Other comprehensive income Total comprehensive loss for the year Securities issued during the year Expenses of issue recovered Equity component of convertible note Balance At 31 December 2013	Consolidated Issued Capital $ Financial Assets Revaluation Reserve $ Convertible Note Reserve $ Share Based Payments Reserve $ Accumulated Losses $ Total Equity $ 44,761,655 282,653 - 983,530 (46,563,782) (535,944) - - - - (609,975) (609,975) - (310,356) - - - (310,356)
	- (310,356) - - (609,975) (920,331) 1,333,221 - - - - 1,333,221 42,500 - - - - 42,500 - - (14,681) - 14,681 -
	46,137,376 (27,703) (14,681) 983,530 (47,159,076) (80,554)
	Consolidated Issued Capital $ Financial Assets Revaluation Reserve $ Convertible Note Reserve $ Share Based Payments Reserve $ Accumulated Losses $ Total Equity $ 47,841,097 74,244 5,922 968,849 (48,521,516) 368,596 - - - - (614,841) (614,841) - (4,038) - - - (4,038)
	- (4,038) - - (614,841) (618,879) 325,881 - - - - 325,881 (13,432) - - - - (13,432) - - 59,191 - - 59,191
	48,153,546 70,206 65,113 968,849 (49,136,357) 121,357

The accompanying notes form part of these financial statements

Page 9

Leopard Resources NL

Half-year Financial Report for the half-year ended 31 December 2013

CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Cash flows from operating activities Payments to suppliers and employees Borrowing costs Interest received Net cash outflows from operating activities Cash flows from investing activities Exploration expenditure Proceeds on sale of non-current assets Net cash (outflows)/inflows from investing activities Cash flows from financing activities Proceeds from securities issues Securities issues transaction costs Proceeds from borrowings Repayment of borrowings Net cash inflows from financing activities Net increase in cash held Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period	Consolidated 31 December 2013 $ 31 December 2012 $ (553,338) (333,288) (128,966) - 1,059 72 (681,245) (333,216) (850,662) (77,288) - 270,354 (850,662) 193,066 325,882 - (13,433) - 1,339,119 165,770 (25,000) - 1,626,568 165,770 94,661 25,620 181,806 34,941 276,467 60,561	Consolidated 31 December 2013 $ 31 December 2012 $ (553,338) (333,288) (128,966) - 1,059 72 (681,245) (333,216) (850,662) (77,288) - 270,354 (850,662) 193,066 325,882 - (13,433) - 1,339,119 165,770 (25,000) - 1,626,568 165,770 94,661 25,620 181,806 34,941 276,467 60,561
		(333,216)
		(77,288) 270,354
		193,066
		- - 165,770 -
		165,770
		25,620 34,941
		60,561

The accompanying notes form part of these financial statements

Page 10

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the half-year ended 31 December 2013

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Statement of compliance

The half-year consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

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

It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2013 and any public announcements made by Leopard Resources NL and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

b) Basis of preparation

The half-year report has been prepared on a historical cost basis, except for available-for-sale financial assets which are measured at fair value. Cost is based on the fair value of the consideration given in exchange for assets. The company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period. The accounting policies adopted are consistent with those of the previous financial year and corresponding half-year reporting period.

c) Significant accounting judgements and key estimates

The preparation of half-year financial statements requires Directors to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

In preparing this half-year report, the significant judgements made by Directors in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2013.

d) Accounting policies and methods of computation

The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding half-year reporting period. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

e) Comparatives

Comparative information has been represented so that it is also in conformity with current classifications.

f) Going Concern

The half-year financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business. The Group incurred a loss of $614,841 for the half-year ended 31 December 2013 and at balance date has a working capital deficiency of $1,853,919, and a net asset surplus of $121,357.

The ability of the Group to continue to pay its debts as and when they fall due is dependent upon the Company successfully raising additional share capital or acquiring funding and ultimately developing or disposing of any of its mineral properties.

Page 11

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the half-year ended 31 December 2013

Notwithstanding the fact that the company has a working capital deficiency of $1,853,919, the directors are of the opinion that the company is a going concern for the following reasons:

• The Directors have an appropriate plan to raise additional funds as and when required. On 14 March 2014 the Company is seeking shareholder ratification of previous placements in order to refresh its placement capacity under listing rule 7.1, and approval for a future placement to provide funding for working capital, acquisition and development of its assets. In light of the Group’s current exploration projects, the Directors believe that the additional capital required can be raised in the market; and

• The Directors have an appropriate plan to contain certain operating and exploration expenditure if appropriate funding is unavailable.

Should the Directors be unable to raise sufficient additional funds, there exists a material uncertainty that may cast significant doubt whether the Group will be able to continue as a going concern and therefore whether it will be able to pay its debts as and when they fall due and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

The financial report does not include any adjustments relating to the recoverability or classification of recorded asset amounts, or to the amounts or classification of liabilities that might be necessary should the Group not be able to continue as a going concern.

2. DEFERRED EXPLORATION EXPENDITURE

Costs carried forward in respect of areas of interest in the following phases: Exploration and evaluation phase – at cost Movement: Balance at beginning of period Acquisition of tenements Expenditure incurred Expenditure written off (i) Balance at end of period	Consolidated Six Months To 31 December 2013 $ Year to 30 June 2013 $ 1,883,246 1,082,272 1,082,272 310,887 - 650,000 850,662 754,743 (49,688) (633,358) 1,883,246 1,082,272	Consolidated Six Months To 31 December 2013 $ Year to 30 June 2013 $ 1,883,246 1,082,272 1,082,272 310,887 - 650,000 850,662 754,743 (49,688) (633,358) 1,883,246 1,082,272
		310,887 650,000 754,743 (633,358)
		1,082,272

Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful development and commercial exploitation or, alternatively, sale of the relevant areas of interest, at amounts at least equal to book value.

• (i) Given the longevity of the Nacimiento project, and the varying levels of the copper price, the Directors took the view that recoverability of the company’s investment in the project had significant doubt and therefore provided for the impairment of this asset in the prior period. It is still the intention of the Directors to pursue the exploration and development of the project.

3. BORROWINGS

Current Convertible notes (i)	Consolidated Six Months To 31 Dec 2013 $ Year to 30 June 2013 $ 1,603,981 301,681

• (i) The Company entered into a number of convertible note instruments during the half-year with sophisticated investors. Notes totalling $1,045,000 are automatically convertible to ordinary shares and options in the Company payable at $0.0015 per share with 1:1 attracting options exercisable at $0.005 and expiring on 5 September 2015. Notes totalling $294,119 are automatically convertible to ordinary shares in the Company payable at $0.002 per share. On 14 March 2014, the Company is seeking the approval of shareholders at General Meeting to convert these instruments into equity.

Page 12

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the half-year ended 31 December 2013

4. ISSUED CAPITAL

(a) Issued and paid up capital Ordinary shares fully paid Ordinary shares partly paid Ordinary shares to be issued (b) Movement in ordinary shares on issue (i) Ordinary shares fully paid Balance at beginning of year Conversion of loan, placement & satisfaction of fees Conversion of loan Placement & satisfaction of fees Issue of shares in satisfaction of consulting fees Issue of shares for cash - 17 June 2013 Consideration for acquisition of Cables & Mission Project Placement Placement Share issue costs Balance at end of period (ii) Ordinary shares partly paid Balance at beginning of year Movement Balance at end of period (iii) Ordinary shares to be issued Balance at beginning of year Shares to be issued in satisfaction of tenement acquisition Shares issued in satisfaction of tenement acquisition Balance at end of period Total ordinary share capital (c) Uncalled Capital Shares of 10 cents paid to 8 cents	31 December 2013 $ 30 June 2013 $ 44,953,546 43,991,097 3,200,000 3,200,000 - 650,000 48,153,546 47,841,097 Six months ended Year Ended 31 December 2013 30 June 2013 Shares $ Shares $ 815,748,565 43,991,097 252,309,677 41,561,655 - - 266,644,110 1,333,221 - - 43,355,841 216,779 - - 74,772,270 224,317 - - 47,000,000 235,000 - - 131,666,667 395,000 130,000,000 650,000 - - 34,000,000 102,000 - - 111,940,725 223,881 - - - (13,432) - 25,125	30 June 2013 $ 43,991,097 3,200,000 650,000
		47,841,097
	1,091,689,290 44,953,546 815,748,565 43,991,097
	4,000,000 3,200,000 4,000,000 3,200,000 - - - -
	4,000,000 3,200,000 4,000,000 3,200,000
	130,000,000 650,000 - - - - 130,000,000 650,000 (130,000,000) (650,000) - -
	- - 130,000,000 650,000
	1,095,689,290 48,153,546 949,748,565 47,841,097
	4,000,000 800,000 4,000,000 800,000

Page 13

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the half-year ended 31 December 2013

4. ISSUED CAPITAL (Cont)

Share Options at 31 December 2013
	Number	Exercise Price	Expiry Date
Unlisted options	51,750,000	20 cents	28 February 2014
Unlisted options	214,000,000	1 cent	30 June 2014

5. SEGMENT REPORTING

The Group operates predominantly in one business segment, namely the acquisition and exploration of uranium/gold properties. The Group operates predominantly in two geographical segments being Western Australia and the United States of America. It no longer operates in South Africa nor Argentina.

The Group has identified its operating segments based on the internal reports that are reviewed and used by the chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance.

Operating segments are identified by the Board of Directors of Leopard Resources NL based on the mineral resource and exploration activities in Western Australia and the United States of America. Discrete financial information about each project is reported to the Board on a regular basis.

The reportable segments are based on aggregated operating segments determined by the similarity of the economic characteristics, the nature of the activities and the regulatory environment in which those segments operate.

The Group has two reportable segments based on the geographical areas of the mineral resource and exploration activities in Western Australia and the United States of America. Unallocated results, assets and liabilities represent corporate amounts that are not core to the reportable segments.

Information regarding these segments is presented below. The accounting policies of the reported segments are the same as the Group’s accounting policies.

The following tables are an analysis of the Group’s revenues and results by the reportable segment to the chief operating decision maker for the half-year periods ended 31 December 2013 and 31 December 2012.

Half-year ended 31 December 2013 Segment revenue Segment loss after tax Segment assets Segment liabilities Half-year ended 31 December 2012 Segment revenue Segment loss after tax Segment assets Segment liabilities	Total Australia (Missions Cables Project) Republic of Argentina (Lithium Project) United States of America (Nacimiento Project) Unallocated $ $ $ $ - n/a - 1,059 1,059
	- n/a - 614,841 614,841
	1,883,247 n/a - 389,704 2,272,951
	- n/a - 2,151,594 2,151,594
	- - - 37,441 37,441
	- - - 609,975 609,975
	47,718 315,273 25,184 842,735 1,230,910
	48,626 112,712 - 1,150,126 1,311,464

Page 14

Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the half-year ended 31 December 2013

6: FINANCIAL INSTRUMENTS

This note provides information about how the Group determines fair values of various financial assets and liabilities.

Fair value of the Group’s financial assets and liabilities that are measured at fair value on a recurring basis

Some of the Group’s financial assets and liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and liabilities are determined (in particular, the valuation technique(s) and key input(s) used).

							Relationship
Financial assets/liabilities					Valuation		of
				Fair	technique(s)	Significant	unobservable
				value	and key	unobservable	input(s) to
		Fair value as	at	hierarchy	input(s)	input(s)	fair value
	Six months to		Year to
	31	December 2013	30 June 13
		$	$
Available-for-sale financial instruments		33,565	74,244	Level 1	Share price	None	None
					Interest rate
Convertible notes		1,603,981	301,681	Level 1	of similar convertible	None	None
					notes

If the above unobservable inputs to the valuation model were 10% higher/lower while all the other variables were held constant, the carrying amount of the available-for-sale assets and convertible notes would decrease/increase by an immaterial amount.

There were no transfers between Level 1 and Level 2 in the period.

Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis

The Directors consider that the carrying value of the financial assets and financial liabilities are recognised in the consolidated financial statements approximate their fair values.

All gains and losses included in other comprehensive income relate to available-for-sale assets and convertible notes held at the balance date are reported as changes of financial assets revaluation reserve and convertible note reserve.

7. CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

8. SUBSEQUENT EVENTS

There are no matters or circumstances which have arisen since the end of the half-year which 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 subsequent financial periods, other than:

• On 5 February 2014 the Company announced plans to undertake a preliminary economic assessment of its Mission & Cables Gold Project;

• On 10 February 2014 the Company gave notice of a General Meeting to be held on 14 March 2014. The meeting will consider shareholder approval to convert loan instruments into equity, ratification of the prior issues of shares, approval of a future placement and the adoption of a new constitution; and

• On 28 February 2014 51,750,000 unlisted options with an exercise price of 50 cents expired.

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Leopard Resources NL Half-year Financial Report for the half-year ended 31 December 2013

DIRECTORS’ DECLARATION

In the opinion of the directors of Leopard Resources NL (‘the Company’):

1. The attached half-year financial statements and notes thereto are in accordance with the Corporations Act 2001 including:

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

3. (b) giving a true and fair view of the Group’s financial position as at 31 December 2013 and its performance for the half-year 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.

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

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C Willis

Director PERTH, Western Australia Dated: 13 March 2014

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Leopard Resources NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Leopard Resources NL (“the company”) which comprises the condensed statement of financial position as at 31 December 2013, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed 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 half-year end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

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

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as at 31 December 2013 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 a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

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

HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of International, a worldwide organisation of accounting firms and business advisers.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Leopard Resources NL 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 2013 and of its performance for the half-year ended on that date; and

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

Emphasis of Matter

Without qualifying our conclusion, we draw attention to Note 1(f) to the half-year financial report which indicates that the Group is dependent on raising additional capital to enable it to continue as a going concern for at least the period of 12 months from the signing of the half-year financial report. If the Group is unable to raise sufficient funding, there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, it may be unable to realise its assets and extinguish its liabilities in the normal course of business.

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HLB Mann Judd Chartered Accountants

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N G Neill Partner

Perth, Western Australia 13 March 2014

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