COPPERMOLY LIMITED — Interim / Quarterly Report 2016

Mar 9, 2016

A.B.N. 54 126 490 855

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CONSOLIDATED INTERIM FINANCIAL REPORT

HALF-YEAR ENDED 31 DECEMBER 2015

INDEX Page
DIRECTORS’ REPORT ....................................................................................................... 2
AUDITOR’S INDEPENDENCE DECLARATION .................................................................. 4
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER 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..................................... 9-12
DIRECTORS’ DECLARATION ........................................................................................... 13
INDEPENDENT AUDITOR’S REVIEW REPORT .......................................................... 14-15

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 2015 and any public announcements made by Coppermoly Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Corporate Directory

Coppermoly Limited (ABN 54 126 490 855)

Directors

Mr Kevin Grice (Non-Executive Director) Mr Wanfu Huang (Non-Executive Director) Mr Jincheng Yao (Non-Executive Director)

Company Secretary

Mr Paul Schultz

Registered Office

Suite 1B, 91 Upton Street, Bundall, Queensland 4217

Telephone: +61 7 5510 3994 Facsimile: +61 7 5510 3997 Email: info@coppermoly.com.au Website: www.coppermoly.com.au

Page 1

DIRECTORS’ REPORT

Your directors present their report on the consolidated entity consisting of Coppermoly Limited and the entity it controlled at the end of, or during, the half-year ended 31 December 2015.

DIRECTORS

The following persons were directors of Coppermoly Limited during the half-year and up to the date of this report:

Kevin Grice Jincheng Yao Wanfu Huang

RESULTS AND DIVIDENDS

The consolidated entity loss after income tax for the half-year is $397,272 (2014: $431,727). There is no dividend paid or recommended.

REVIEW OF OPERATIONS

During the half-year, the Group:

• (i) Issued 1,755,024 shares (COY) and 585,008 unlisted options in lieu of accrued directors fees.

• (ii) Funded ongoing exploration and evaluation work on its exploration tenements in Papua New Guinea.

EVENTS AFTER THE REPORTING PERIOD

Coppermoly Ltd has entered into a placement agreement to raise approximately $2,500,000 (before costs). Full details of the placement agreement are disclosed in an ASX Announcement dated 21 January 2016. The key terms are:

• Initial placement on 28 January 2016 of 57,750,000 Shares at an issue price of $0.004 per Share which raised $231,000.

• Subsequent issue of 317,250,000 Shares at an issue price of $0.004 per Share, and 250,000,000 Deferred Options and 83,333,333 Attached Options, at an issue price of $0.004 per Deferred Option to raise approximately $2,269,000. The subsequent issue is subject to Coppermoly Ltd receiving shareholder approval at an EGM to be held on 30 March 2016.

Page 2

DIRECTORS’ REPORT (Continued)

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 immediately follows this report.

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

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Kevin Grice Director Bundall, Qld Dated: 10 March 2016

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AUDITOR'S INDEPENDENCE DECLARATION

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Tel: +61 7 3237 5999 Level 10, 12 Creek St Fax: +61 7 3221 9227 Brisbane QLD 4000 www.bdo.com.au GPO Box 457 Brisbane QLD 4001 Australia

DECLARATION OF INDEPENDENCE BY T R MANN TO THE DIRECTORS OF COPPERMOLY LIMITED

As lead auditor for the review of Coppermoly Limited for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

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

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T R Mann Director

BDO Audit Pty Ltd

Brisbane, 10 March 2016

BDO Audit Pty Ltd ABN 33 134 022 870 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 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.

Page 4

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Notes Revenue Depreciation Employee benefits expense Insurances Corporate compliance and shareholder relations Office rental, communication and consumables Finance costs Other expenses Loss before income tax Income tax (expense) / benefit Net Loss for the half-year Other comprehensive income Items that may be reclassified to the profit or loss Exchange differences on translation of foreign operations Income tax on items of other comprehensive income Other comprehensive income for the half-year Total comprehensive income for the half-year Basic and diluted loss per share	Half – year 2015 $ 2014 $
	1,715 2,771
	1,715 2,771
	(9,324) (13,746) (156,799) (273,289) (25,910) (17,510) (50,446) (79,467) (18,590) (22,181) (84,356) (15,051) (53,562) (13,254)
	(397,272) (431,727) - -
	(397,272) (431,727)
	(465,381) 815,734 - -
	(465,381) 815,734
	(862,653) 384,007
	Cents Cents (0.10) (0.15)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Page 5

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015

Notes ASSETS Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets Non-Current Assets Receivables Property, plant and equipment Mineral exploration and evaluation assets 4 Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Trade and other payables Borrowings 5 Provisions Total Current Liabilities Non-Current Liabilities Borrowings 5 Provisions Total Non-Current Liabilities Total Liabilities Net Assets EQUITY Contributed equity 6 Reserves Accumulated losses Total Equity	31-Dec-15 $ 30-Jun-15 $
	103,959 488,351 57,904 20,569
	161,863 508,920
	24,510 25,288 22,878 81,362 11,343,131 11,621,139
	11,390,519 11,727,789
	11,552,382 12,236,709
	260,528 221,005 1,241,306 16,864 12,367 11,208
	1,514,201 249,077
	- 1,118,369 12,601 11,450
	12,601 1,129,819
	1,526,802 1,378,896
	10,025,580 10,857,813
	15,953,258 15,922,838 2,873,254 3,338,635 (8,800,932) (8,403,660)
	10,025,580 10,857,813

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

Page 6

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Balance at 30 June 2015 Comprehensive income for the half-year Loss for the half-year Foreign currency translation difference Total Comprehensive Income Transactions with owners in their capacity as owners Contributions of equity Costs of share issue Total transactions with owners in their capacity as owners Balance at 31 December 2015 Balance at 30 June 2014 Comprehensive income for the half-year Loss for the half-year Foreign currency translation difference Total Comprehensive Income Transactions with owners in their capacity as owners Contributions of equity Costs of share issue Value of conversion rights on convertible notes Total transactions with owners in their capacity as owners Balance at 31 December 2014	Contributed Equity Accumulated Losses Reserves Total $ $ $ $
	15,922,838 (8,403,660) 3,338,635 10,857,813 - (397,272) - (397,272) - - (465,381) (465,381)
	- (397,272) (465,381) (862,653)
	35,100 - - 35,100 (4,680) - - (4,680)
	30,420 - - 30,420
	15,953,258 (8,800,932) 2,873,254 10,025,580
	14,772,591 (7,604,700) 2,355,924 9,523,815 - (431,727) - (431,727) - - 815,734 815,734
	- (431,727) 815,734 384,007
	1,169,593 - - 1,169,593 (17,646) - - (17,646) - - 110,702 110,702
	1,151,947 - 110,702 1,262,649
	15,924,538 (8,036,427) 3,282,360 11,170,471

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

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Cash Flows from Operating Activities Cash receipts in the course of operations (incl. GST) Interest received Interest paid Payments to suppliers and employees (incl. GST) Net cash inflow (outflow) from operating activities Cash Flows from Investing Activities Payments for exploration and evaluation activities Security deposits paid Payments for property, plant and equipment Proceeds from sale of property, plant and equipment Net cash (outflow) inflow from investing activities Cash Flows from Financing Activities Proceeds from issues of shares and options Cost of share and option issues Proceeds from the issue of convertible notes Cost of convertible note issue Proceeds from borrowings Repayment of borrowings Net cash inflow (outflow) from financing activities Net increase /(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year Exchange difference on cash Cash and cash equivalents at the end of the half-year	Half-year 2015 $ 2014 $
	10,597 21,773 1,715 1,714 (1,527) (15,051) (246,996) (485,368)
	(236,211) (476,932)
	(166,914) (169,180) (2,903) - - (679) - 82
	(169,817) (169,777)
	- 300,000 (820) (95,542) - 775,000 - (13,739) 57,446 553,649 (34,078) (511,460)
	22,548 1,007,908
	(383,480) 361,199
	488,351 90,522 (912) 1,500
	103,959 453,221

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

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

NOTE 1. BASIS OF PREPARATION OF HALF-YEAR REPORT

These general purpose financial statements for the interim half-year reporting period ended 31 December 2015 have been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. The Company is a for-profit entity for financial reporting purposes under Australian Accounting Standards.

These interim financial statements do not include all the notes of the type normally included in annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position, financing and investing activities of the consolidated entity as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the annual report for the year ended 30 June 2015 and any public announcements made by Coppermoly Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations did not have any material financial impact on the amounts recognised in the financial statements of the Group for the current or prior periods.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the Company’s 2015 Annual Financial Report for the financial year ended 30 June 2015, unless otherwise stated.

Going concern

The Group incurred a net loss of $397,272 for the half-year ended 31 December 2015. As at 31 December 2015 the Group has cash reserves of $103,959, a working capital deficit of $1,352,338 and net assets of $10,025,580. The company has not generated revenues from operations. The Group has a liability of $1,201,199 (including accrued interest) for convertible notes. The Group has also committed to re-acquire Barrick (PNG Exploration) Limited’s (“Barrick”) interest in the tenements EL1043 and EL2379 for a final payment of $4,500,000 to be paid no later than six months after the commencement of commercial production at the West New Britain Project, in addition to its exploration commitments under its other licenses. Refer to note 4 for further details on the required payment to reacquire the tenements from Barrick. Subsequent to year end the company has entered into a placement agreement, the key terms of which are disclosed in Note 9.

The ability of the Group to continue as a going concern is principally dependent upon one or more of the following:

• the ability of the company to raise additional capital in the future; and

• the successful exploration and subsequent exploitation of the company’s tenements.

These conditions give rise to material uncertainty which may cast significant doubt over the Group’s ability to continue as a going concern.

The directors believe that the going concern basis of preparation is appropriate due to the following reasons:

• To date the Group has funded its activities through issuance of equity securities and it is expected that the Group will be able to fund its future activities through further issuances of equity securities; and

• The directors believe there is sufficient cash available for the Group to continue operating until it can raise sufficient further capital to fund its ongoing activities.

Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements.

This financial report does not include any adjustments relating to the recoverability and classification of recorded asset mounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue as a going concern.

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

NOTE 2. FAIR VALUE MEASUREMENTS

The carrying values of the Group’s financial assets and financial liabilities approximate their fair values as at 31 December 2015.

NOTE 3. SEGMENT INFORMATION

Description of segments

The Group has identified its operating segments 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. Operating segments are determined on the basis of financial information reported to the Board which is at the consolidated entity level. Accordingly, the consolidated entity is treated as one operating segment.

Therefore, management identifies the Group as having only one reportable segment. The financial results from this reportable segment are equivalent to the financial statements of the consolidated entity as a whole. There have been no changes in the operating segments during the period.

NOTE 4. MINERAL EXPLORATION AND EVALUATION ASSETS

Papua New Guinea Balance at the beginning of the half-year Expenditure during the half-year Foreign currency exchange differences Balance at the end of the half-year	31-Dec-15 $ 31-Dec-14 $ 11,621,139 9,612,723 180,327 1,007,412 (458,335) 810,074
	11,343,131 11,430,209

The ultimate recoupment of costs carried forward for exploration and evaluation is dependent upon the successful development and commercial exploitation or sale of the respective areas of interest.

West New Britain Project Exploration Licenses

In October 2009 the Group signed a Letter Agreement with Barrick (PNG Exploration) Limited ( Barrick ) to sole fund $20 million to earn up to 72% interest in Coppermoly Limited’s tenements (Mt Nakru, Simuku and Talelumas) ( WNB Projects ) on the island of New Britain in Papua New Guinea. Barrick earned 72% equity in January 2012. In May 2012 Barrick advised Coppermoly of its intention to divest its interest in the WNB Projects. On 11 September 2015 EL2379 was granted by the PNG Mineral Resources Authority as a consolidated exploration licence combining EL1077 Simuku and EL1445 Talelumas.

Reacquisition Deed

The remaining key term of the renegotiated Reacquisition Deed with Barrick is as follows:

• The Group may acquire the remaining nominal 28% interest in the WNB Projects, which the Company has a binding agreement to acquire, by making a payment of AUD $4,500,000, payable no later than the date that is 6 months after the commencement of commercial production at the WNB Projects. Barrick do not have to contribute any further costs to exploration or development of the projects nor are they entitled to any profits from the projects.

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

NOTE 5. BORROWINGS

NOTE 5. BORROWINGS
Unsecured: Convertible notes (a) Accrued interest Other borrowings	31-Dec-15 $ 30-Jun-15 $ 1,123,783 1,081,629 77,416 36,740 40,107 16,864
	1,241,306 1,135,233

a. Convertible notes

The terms of the convertible notes are as follows:

Issue Date: Maturity Date: Number of Notes: Note Face Value: Conversion Price:	Initial Tranche 19 December 2014 19 December 2016 38,750,000 $775,000 Convertible into ordinary shares $0.02 at the note holders option being 38,750,000 shares.	Second Tranche 26 March 2015 19 December 2016 21,250,000 $425,000. Convertible into ordinary shares $0.02 at the note holders option being 21,250,000 shares.

Repayment upon maturity:

The outstanding principle amounts of the convertible notes (being the outstanding issue price of the convertible notes to the extent that they have not been converted) will be repaid by the Company. The notes have a Maturity Date of 19 December 2016.

The notes may be repaid by Coppermoly any time prior to the Maturity Date subject to Coppermoly paying the note holder a break fee equal to 5% of the repayment amount.

Unlisted Options:

In conjunction with the convertible notes the noteholder was issued with 12,916,666 unlisted options on 19 December 2014 and 7,083,333 unlisted options on 26 March 2015 to acquire shares at an exercise price of $0.03 per option. The options will expire on 19 December 2016.

The options are exercisable at any time prior to the Maturity Date subject to the holder only being entitled to exercise 1 option for every 3 convertible notes it elects to convert to shares.

Interest: The convertible notes bear interest at 7%. The effective interest rate is 15%.

The convertible notes are presented in the statement of financial position as follows: Face value of notes issued Other equity securities – value of options issued Cost of convertible note issue Fair value of notes issued Unwinding of equity portion – interest expense Repayment of convertible notes Convertible note liability	31-Dec-15 $ 30-Jun-15 $ 1,200,000 1,200,000 (142,266) (142,266) (13,739) (13,739)
	1,043,995 1,043,995
	79,788 37,634 - -
	1,123,783 1,081,629

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

NOTE 6. CONTRIBUTED EQUITY

Opening Balance Issues of ordinary shares during the half- year Shares issued to Barrick (PD) Australia Pty Ltd Private Placement Shares issued in lieu of accrued directors fees Less costs of raising capital Contributed Equity	Half-year ended 31-Dec-15 Half-year ended 31-Dec-14 Half-year ended 31-Dec-15 Half-year ended 31-Dec-14 Number of Shares Number of Shares $ $
	383,729,449 286,837,649 15,922,838 14,772,591 - 66,891,800 - 869,593 - 30,000,000 - 300,000 1,755,024 - 35,100 - (4,680) (17,646)
	385,484,473 383,729,449 15,953,258 15,924,538

NOTE 7. CONTINGENCIES

(i) West New Britain Projects

Refer to Note 4. The Group has completed an agreement to re-acquire Barrick’s interests in the West New Britain Projects.

The Group may acquire Barrick’s remaining nominal 28% interest in the West New Britain Projects by making a payment of AUD $4,500,000, payable no later than the date that is 6 months after the commencement of commercial production at the West New Britain Projects.

(ii) There have been no further changes in contingent liabilities since the end of the previous annual reporting period (30 June 2015).

NOTE 8. DIVIDENDS

There was no dividend paid or recommended during the reporting period.

NOTE 9. EVENTS AFTER THE REPORTING PERIOD

Coppermoly Ltd has entered into a placement agreement to raise approximately $2,500,000 (before costs). Full details of the placement agreement are disclosed in an ASX Announcement dated 21 January 2016. The key terms are:

• Initial placement on 28 January 2016 of 57,750,000 Shares at an issue price of $0.004 per Share which raised $231,000.

• Subsequent issue of 317,250,000 Shares at an issue price of $0.004 per Share, and 250,000,000 Deferred Options and 83,333,333 Attached Options, at an issue price of $0.004 per Deferred Option to raise approximately $2,269,000. The subsequent issue is subject to Coppermoly Ltd receiving shareholder approval at an EGM to be held on 30 March 2016.

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

DIRECTORS’ DECLARATION

In the directors’ opinion:

• (a) the attached financial statements and notes set out on pages 5 to 12 are in accordance with the Corporations Act 2001 , and:

• (i) comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• (ii) give a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that Coppermoly Limited will be able to pay its debts as and when they become due and payable.

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

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Kevin Grice Director Bundall Qld Dated: 10 March 2016

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Tel: +61 7 3237 5999 Level 10, 12 Creek St Fax: +61 7 3221 9227 Brisbane QLD 4000 www.bdo.com.au GPO Box 457 Brisbane QLD 4001 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Coppermoly Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Coppermoly Limited, which comprises the consolidated statement of financial position as at 31 December 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year’s 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 consolidated entity’s financial position as at 31 December 2015 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 Coppermoly Limited, 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.

BDO Audit Pty Ltd ABN 33 134 022 870 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 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.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Coppermoly Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

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 Coppermoly Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 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.

Emphasis of matter

Without modifying our conclusion, we draw attention to Note 1 in the half-year financial report, which indicates that the ability of the consolidated entity to continue as a going concern is dependent upon the future successful raising of necessary funding through equity, successful exploration and subsequent exploitation of the consolidated entity’s tenements, and/or sale of non-core assets. These conditions, along with other matters as set out in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

BDO Audit Pty Ltd

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T R Mann Director

Brisbane, 10 March 2016

BDO Audit Pty Ltd ABN 33 134 022 870 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 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.

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