CZR RESOURCES LTD — Interim / Quarterly Report 2008

Mar 13, 2008

COZIRON RESOURCES LIMITED ABN 92 112 866 869

Condensed Consolidated Half-Year Financial Report 31 December 2007

COZIRON RESOURCES LIMITED ABN 91 112 866 869

FINANCIAL REPORT For the Half Year Ended 31 December 2007

Company Directory	1
Directors' Report	2
Condensed Consolidated Income Statement	5
Condensed Consolidated Balance Sheet	6
Condensed Consolidated Statement of Changes in Equity	7
Condensed Consolidated Cash Flow Statement	8
Notes to the Financial Statements	9
Directors' Declaration	12
Auditor’s Independence Declaration	13
Independent Review Report	14

COMPANY DIRECTORY

DIRECTORS

Lam Fatt Tan

Richard Teng Beng Tan

(Norman) Sai Kwok Miu

COMPANY SECRETARY

Mr Timothy John Spooner

REGISTERED OFFICE

c/- MGI Bridge Partners Level 41, 108 St Georges Terrace, Perth, Western Australia 6001 Telephone: +61 8 9227 7766 Facsimile: +61 8 9227 1370 E-mail: info@coziron.com Website: www.coziron.com

AUDITORS

BDO Kendalls Audit and Assurance (WA) Pty Ltd 128 Hay Street Subiaco, Western Australia 6008 PO Box 700 West Perth, Western Australia 6872 Telephone: +61 8 9380 8400 Facsimile: +61 8 9380 8499 Email: info.perth@bdo.com.au Website: www.bdo.com.au

SHARE REGISTRAR

Security Transfer Registrars 770 Canning Highway APPLECROSS WA 6153 Telephone: (08) 9315 2333 Facsimile: (08) 9315 2233

STOCK EXCHANGE LISTING

Australian Stock Exchange (Home Exchange: Perth, Western Australia) Code: CZR and CZRO

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

HALF-YEAR FINANCIAL REPORT

DIRECTORS' REPORT

Your directors submit the financial report of the Company for the half-year ended 31 December 2007.

DIRECTORS

The names of Directors who held office during or since the end of the half year:

Lam Fatt Tan Richard Teng Beng Tan (Norman) Sai Kwok Miu Gregory Burns (resigned 7 September 2007 George Lazarou (resigned 15 August 2007)

REVIEW OF OPERATIONS

Rawang Gadang Iron Ore Project

A Ground Magnetic Survey was accomplished during the period. The program covered the area previously drilled and was designed to examine the extensions of known mineralisation. The survey was very successful in delineating the recognised mineralisation and a 350m extension of the Iron mineralisation to the South-East, to the limit of the survey. No field activities were carried out at Rawang Gadang. This project is still under the company’s assessment.

Inderapura Coal Project Area

With Grange Resources Limited no longer participating in the Joint Venture (JV), the results of the due diligence work were analytically assessed. Grange Resources has indicated that the production potential for the Inderapura Coal is suitable for domestic consumption by Indonesian or other South East Asian cement manufacturers. The Company will now analyse all compiled data and explore the possibility of defining resources to supply the local cement factory in Padang City at Western Sumatra.

Singkarak Copper-Gold Project

An intensive soil sampling and geological mapping program was completed at Singkarak Project over the Pasilihan area, as an adjunct to the previous geological due diligence work. Soil samples were collected on a 100m x 25m grid which was corrected for topography. Soil samples collected from the “C” horizon have been sent to Intertek / Caleb Brett in Jakarta for analysis for Gold and other elements. Duplicate samples were taken at regular intervals to confirm QAQC.

The soil sampling program was highly encouraging. Soil geochemistry shows a distinct anomalous multi-element (Cu-Au-Pb-Sb-Mo) NNE trend generally concurrent with Silica/Clay/Sulphide alteration zones which was mapped in the field. The anomalous area is over 1km long and 250m wide, and is still open to the south. The altered zone gradually subsided towards the North under much younger superimposed rocks of the Ombilin Formation. Copper forms distinctive Bulls Eye style anomaly greater than 500ppm with about 300m long and 150m wide area inside the broader anomalous trend. Gold anomaly distribution is more sporadic than Copper. Nevertheless, at 100ppb level, Gold forms coherent anomalies coincident with the other assayed elements. Furthermore, in various soil samples Gold reached 1.26ppm. Final JV arrangements for the Singkarak Project are still in negotiation with the Indonesian partners.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

HALF-YEAR FINANCIAL REPORT

DIRECTORS' REPORT (Continued)

Landas Paeu Coal Project

The Company signed a Heads of Agreement with Pt Persadatama Agung Lestari (“PT PAL”) to form a JV to explore the Landas Paeu Coal area, located in East Kalimantan, Indonesia. The Project area comprises 3,940Ha and mineral property located in West Kutai Regency at the Province of East Kalimantan, Borneo Island, Indonesia. The mineral property is prospective for thermal coal, having been previously explored for coal by PT PAL and other Indonesian companies. This exploration has identified a package of 12 coal seams attributed to the Oligocene Warukin Formation over a strike-length of 4.2Km. Warukin Formation Coal is being mined in several locations in South and East of Kalimantan and has gained a reputation as a low sulphur and low ash “enviro-coal”. Individual seams at the Landas Paeu Coal Project reach a maximum thickness of 13.45m in limited historical drill intercepts. Based on the above, due diligence is ongoing. Analysis of representative coal seam samples show coal quality parameters meet current export standards for thermal coal.

Previous work on the prospect locale included outcrop mapping, sampling and shallow diamond drilling. The earlier diamond drilling program was carried out unsystematically.

Under the terms of the Head of Agreement (“Agreement”), Coziron will pay PT PAL a consideration of USD$50,000 immediately. The agreement entitles Coziron to acquire 70% of the coal project for a consideration of USD$1 million, half of which is payable in cash, the balance in Coziron shares, following a suitable due diligence period. PT PAL will also be entitled to a USD$1 royalty per ton of coal sold from the project. The Agreement is subject to a number of conditions including due diligence and site inspections to the satisfaction of Coziron. In the event that all the conditions are satisfied, Coziron will sign a formal JV with PT PAL.

Coziron believes that the project area is highly prospective for thermal coal and that there is significant potential to delineate a sizeable, potentially economical resource. The Company plans to carry out geological mapping, topographic surveys and systematic resource definition drilling to further advance the project. The due diligence work has been completed and an assessment will concluded on the project.

Ethanol Plant Project in Malaysia

On 30 October 2007 a Heads of Agreement was entered to acquire a 60,000 Litres/day ethanol plant with Empee Biofuels Sdn Bhd. However subsequently the Company decided not to proceed, as the directors foresaw major complications with the project that may not have been in the interest of the shareholders.

Kunyit Iron Ore Project and Lubuk Gadang Lead Zinc Project

No field activities have recently been carried out during the period.

Project Generation

In addition to the company’s active Asian exploration project work undertaken during the period, the Company has been considering several prospective exploration project proposals, both domestically in Australia and overseas.

EVENTS SUBSEQUENT TO REPORTING DATE

In February 2008 the Company entered into a Heads of Agreement to Joint Venture with PT Galian Endapan Buana (‘GEB’), on an 80:20 basis, (CZR 80% GEB 20%) with GEB’s interest to be a free carried interest, in respect of a Lead Trading, Exploration and Mining venture in Indonesia.

GEB was awarded the requisite lead export licence by the West Sumatra Government on 12 February 2008. Due diligence is ongoing and the Company in the process of finalising a sales contract with a Chinese company for the first shipment. The company is targeting exports of 24,000 tonnes of lead ore per annum.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

HALF-YEAR FINANCIAL REPORT

DIRECTORS' REPORT (Continued)

EVENTS SUBSEQUENT TO REPORTING DATE (continued0

Exercise of options by directors.

On 12 March 2008, 2 million options at 20 cents were exercised by two of the directors, thereby providing $400,000 funding for the company. The funds will be utilised for the lead trading business and to source other prospective projects.

Tenements written off.

The company has decided to write off Kunyit Iron Ore project, Lubuk Gadang Lead Zinc project and Batu Bara Lunang project due to unfavourable resource content and in the company’s view it is not viable to continue exploring these tenements.

AUDITORS INDEPENDENCE DECLARATION

The auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 13 for the half year ended 31 December 2007.

This report is signed in accordance with a resolution of the Board of Directors.

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Mr Richard Tan Executive Chairman

Dated this 14th day of March 2008

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

CONDENSED CONSOLIDATED INCOME STATEMENT

For the Half-Year Ended 31 December 2007

Note Revenue Exploration expenditure written off 3 Employee benefits expense Compliance and professional fees Depreciation Occupancy costs Travel expenses Administration expenses Loss before income tax 2 Income tax expense Loss for the period Loss attributable to members of Coziron Resources Limited Overall Operations: Basic loss per share (cents)	Half Year 31 December 2007 $ Half Year 31 December 2006 $ 46,719 51,471 (1,207,766) - (148,044) (83,203) (191,423) (180,068) (8,156) - (1,811) (47,100) (13,382) (24,898) (26,092) (39,899)
	(1,549,955) (323,697) - -
	(1,549,955) (323,697)
	(1,549,955) (323,697)
	(2.44) (0.56)

The accompanying notes form part of this financial report.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

CONDENSED CONSOLIDATED BALANCE SHEET

As at 31 December 2007

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Exploration assets 3 Financial assets 4 Property, plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Short term provisions TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 5 Option reserve Accumulated losses TOTAL EQUITY	As at 31 December 2007 $ 503,680 71,522 124,357 699,559 2,017,929 100,000 56,959 2,174,888 2,874,447 2,195 10,071 12,266 12,266 2,862,181 4,833,740 317,608 (2,289,167) 2,862,181	As at 30 June 2007 $
		1,234,957 76,518 -
		1,311,475
		2,971,606 100,000 65,114
		3,136,720
		4,448,195
		24,183 11,876
		36,059
		36,059
		4,412,136
		4,833,740 317,608 (739,212)
		4,412,136

The accompanying notes form part of this financial report.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Half-Year Ended 31 December 2007

Note Balance at 1 July 2006 Shares issued during the period Options issued during the period Transaction costs Loss attributable to members Balance at 31 December 2006 Balance at 1 July 2007 Shares issued during the period Options issued during the period Transaction costs Loss attributable to members Balance at 31 December 2007 5	Issued Capital Option Reserve Accumulated Losses Total $ $ $ $ 1,648,375 - (118,097) 1,530,278 3,500,000 - - 3,500,000 318,000 - - 318,000 (309,815) - - (309,815) - - (323,697) (323,697)
	5,156,560 - (441,794) 4,714,766
	4,833,740 317,608 (739,212) 4,412,136 - - - - - - - - - - - - - - (1,549,955) (1,549,955)
	4,833,740 317,608 (2,289,167) 2,862,181

The accompanying notes form part of this financial report.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

For the Half-Year Ended 31 December 2007

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Expenditure on mining interests Interest received Net cash flows used in operating activities Cash Flows from investing activities Acquisition of plant and equipment Deposit paid Payment for exploration expenditure Net Cash Flows used in investing activities Cash flows from financing activities Proceeds from issue of ordinary shares Proceeds from option issue Capital raising costs Net cash flows from financing activities Net (decrease)/ increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the half year Cash and cash equivalents at the end of the half year	Half Year 31 December 2007 $ Half Year 31 December 2006 $
	- - (453,619) (382,431) - (364,505) 32,900 51,471
	(420,719) (695,465)
	- (40,829) (56,469) - (254,089) -
	(310,558) (40,829)
	- 3,500,000 - 318,000 - (309,815)
	- 3,508,185
	(731,277) 2,771,891 1,234,957 140,664
	503,680 2,912,555

The accompanying notes form part of this financial report.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

NOTES TO THE FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2007

1. STATEMENT OF SIGNIFICANT ACCOUNT POLICIES

BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134: Interim Financial Reporting, Urgent Issues Group Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2007 and any public announcements made by Coziron Resources Limited and its controlled entities during the half-year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

The 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.

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 annual financial report for the financial year ended 30 June 2007.

It has been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

Reporting Basis and Conventions

The half-year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

2. LOSS BEFORE INCOME TAX EXPENSE

	Consolidated	Consolidated
	Half Year	Half Year
	31 December 2007	31 December 2006
	$	$
The following revenue and expense items are relevant in
explaining the financial performance for the half-year:
Interest revenue	32,900	51,471

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

NOTES TO THE FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2007

3. EXPLORATION ASSETS

A reconciliation of the movements in the capitalised exploration assets per tenement or exploration right is detailed below:

exploration right is detailed below:
	As at
	31 December 2007
Opening Balance	2,971,606
Add: Exploration expenditure capitalised
during the period	254,089
Less: Exploration expenditure written off
in the period	(1,207,766)
	___
Closing Balance	2,017,929
	___

As reflected above, the company has ceased exploration of certain mining tenements and has therefore written off the capitalised expenditure relating to these tenements.

Exploration costs are only carried forward to the extent that they are expected to be recouped through the successful development or sale of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

In addition, the group has material mining exploration rights in Indonesia which are the subject of contractual requirements to undertake continuous work throughout the period. The group has received correspondence for the local Indonesian mining authorities and the Directors are reviewing all the group’s rights to explore, to determine if projects are economically viable and should be maintained. If the directors believe that the projects are not viable to continue exploring these tenements, this will result in a write off of the existing Exploration Assets in the next period.

4. FINANCIAL ASSETS

The company adopts equity accounting for investments in associates where the group is considered to have significant influence upon that entity.

The carrying value would include the group’s share of the net profits or losses of the Associate. Where the company has been unable to be provided with sufficiently reliable information as to the performance of the Associate, the investment in the Associate has been carried at cost. The directors have assessed the recoverability of the cost of the investment against the tangible assets of the associate and where there are indicators of impairment, the asset is written down to the net tangible asset position of the Associate.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

NOTES TO THE FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2007

5. ISSUED CAPITAL

Ordinary shares Option reserve (a) Movements in ordinary shares on issue At 1 July 2007 No movement during the period At 31 December 2007 (b) Movements in options on issue At 1 July 2007 No movement during the period At 31 December 2007	Consolidated As at 31 December 2007 $ As at 30 June 2007 $ 4,833,740 4,833,740 317,608 317,608
	5,151,348 5,151,348
	No. $ 63,639,253 4,833,740 - -
	63,639,253 4,833,740
	No. $ 36,260,751 317,608 - -
	36,260,751 317,608

Subsequent to the end of the period, 2,000,000 options were exercised, thereby raising $400,000.

6.

SEGMENTAL REPORTING

The Company operates predominantly in one geographical segment, being Indonesia, and in one industry, mineral exploration.

7. EVENTS SUBSEQUENT TO REPORTING DATE

In February 2008 the Company entered into a Heads of Agreement to Joint Venture with PT Galian Endapan Buana (‘GEB’), on an 80:20 basis, (CZR 80% GEB 20%) with GEB’s interest to be a free carried interest, in respect of a Lead Trading, Exploration and Mining venture in Indonesia. GEB was awarded the requisite lead export licence by the West Sumatra Government on 12 February 2008. Due diligence is ongoing and the Company in the process of finalising a sales contract with a Chinese company for the first shipment. The company is targeting exports of 24,000 tonnes of lead ore per annum.

On 12 March 2008, 2 million options at 20 cents were exercised by two of the directors, thereby providing $400,000 funding for the company. The funds will be utilised for the lead trading business and to source other prospective projects.

The company has decided to write off Kunyit Iron Ore project, Lubuk Gadang Lead Zinc project and Batu Bara Lunang project due to unfavourable resource content and in the company’s view it is not viable to continue exploring these tenements.

8. CONTINGENT LIABILITIES

There are no material contingent liabilities that exist as at reporting date.

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COZIRON RESOURCES LIMITED ABN 91 112 866 869

DIRECTORS' DECLARATION

For the Half Year Ended 31 December 2007

The Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 5 to 11:

2. (a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and

3. (b) give a true and fair view of the Company’s financial position as at 31 December 2007 and its performance for the half-year ended on that date.

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

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

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Mr Richard Tan Executive Chairman

Dated this 14[th] day of March 2008

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BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street SUBIACO WA 6008 PO Box 700 WEST PERTH WA 6872 Phone 61 8 9380 8400 Fax 61 8 9380 8499 aa.perth@bdo.com.au www.bdo.com.au

ABN 79 112 284 787

14 March 2008

The Directors Coziron Resources Limited Level 3, 102 James Street NORTHBRIDGE WA 6003

Dear Sirs

DECLARATION OF INDEPENDENCE BY CHRIS BURTON TO THE DIRECTORS OF COZIRON RESOURCES LIMITED

As lead auditor of Coziron Resources Limited for the half year ended 31 December 2007, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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

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

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

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C. Burton

Director

BDO Kendalls Audit and Assurance (WA) Pty Ltd Perth, Western Australia

BDO Kendalls is a national association of separate partnerships and entities

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BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street SUBIACO WA 6008 PO Box 700 SUBIACO WA 6872 Phone 61 8 9380 8400 Fax 61 8 9380 8499 aa.perth@bdo.com.au www.bdo.com.au

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ABN 79 112 284 787

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF COZIRON RESOURCES LIMITED

We have reviewed the accompanying half-year financial report of Coziron Resources Limited, which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity comprising the disclosing entity and the entities it controlled at the half-year end or from time to time during the half-year in order for the disclosing entity to lodge the half-year financial report with the Australian Securities and Investments Commission.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the disclosing entity are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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 an Interim 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 financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the disclosing entity’s financial position as at 31 December 2007 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 Coziron Resources 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.

Independence

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

BDO Kendalls is a national association of separate partnerships and entities

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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 Coziron Resources 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 2007 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.

Significant uncertainty regarding the recoverability of Exploration Assets

Without qualifying the review conclusion, we draw attention to the following matter noted in the interim financial report at note 3. As disclosed, the group has carried forward exploration assets of $2,017,929 on the basis that the asset will be recoverable through development or sale and are not at a stage where they can be assessed as economically recoverable. Should the group determine that the assets cannot be recovered through development or sale or are determined as not economically recoverable, the assets may not be realised at their current carrying values in the financial statements.

BDO Kendalls Audit & Assurance (WA) Pty Ltd

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C Burton

Director

Perth, Western Australia Dated this 14[th] day of March 2008

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