CZR RESOURCES LTD — Interim / Quarterly Report 2014

Mar 13, 2014

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES ABN 91 112 866 869

CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

TABLE OF CONTENTS

Corporate Directory ........................................................................................................................................... 3 Directors’ Report ................................................................................................................................................ 4 Auditor’s Independence Declaration ................................................................................................................ 10 Consolidated Statement Profit or Loss and Other Comprehensive Income .................................................... 11 Consolidated Statement of Financial Position ................................................................................................. 12 Consolidated Statement of Changes in Equity ................................................................................................ 13 Consolidated Statement of Cash Flow ............................................................................................................ 14 Notes to the Consolidated Financial Statements ............................................................................................ 15 Directors’ Declaration ...................................................................................................................................... 21 Independent Auditor’s Review Report ............................................................................................................. 22

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

CORPORATE DIRECTORY

DIRECTORS

Adam Sierakowski (Chairman) Stephen Lowe Robert Ramsay

COMPANY SECRETARY Stephen Hewitt-Dutton

PRINCIPAL OFFICE

Level 24

44 St George’s Terrace PERTH WA 6000 Telephone: (08) 6211 5099 Facsimile: (08) 9218 8875

REGISTERED OFFICE

Level 24

44 St George’s Terrace PERTH WA 6000 Telephone: (08) 6211 5099 Facsimile: (08) 9218 8875 Website: www.coziron.com

AUDITORS

BDO Audit (WA) Pty Ltd 38 Station Street Subiaco WA 6008 Telephone: (08) 6382 4600 Facsimile: (08) 6382 4601

SHARE REGISTRAR

Security Transfer Registrars Alexandria House, Suite 1 770 Canning Highway Applecross, Western Australia 6153 Telephone: (08) 9315 2333 Facsimile: (08) 9315 2233

STOCK EXCHANGE LISTING

Australian Securities Exchange (Home Exchange: Perth, Western Australia) Code: CZR

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated group for the half-year ended 31 December 2013.

DIRECTORS

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

Adam Sierakowski (Chairman) Stephen Lowe Robert Ramsay

REVIEW OF OPERATIONS

Introduction

Coziron Resources Ltd (CZR) has exploration focussed primarily on feed-stock materials for steel-making but also investigates any opportunities for gold, copper and other base-metal mineralisation. The Yarraloola Ironore project in the West Pilbara which is located in the hub of an iron-ore mining and processing region with emerging shipping options is the main focus of activity (Fig 1). Other projects include the Buddadoo Iron Project, near a rail corridor to the port of Geraldton, along with the more remotely located KingX Manganese Project (Fig 1).

Details of the projects and an overview of results from the past six months are presented in the following sections.

Yarraloola Iron-ore Project

The Yarraloola Project consists of seven contiguous exploration licences and two prospecting licenses with a total area of 1,456.3km[2] (Fig 2). These cover the western part of the Hamersley Basin, adjacent parts of the Ashburton Trough and on-lapping younger sediments of the Carnarvon Basin. Any iron-ore discoveries in the region will have a competitive advantage on transport costs as they are located about 100km south of a new port which is being developed at Cape Preston East.

In the Pilbara, direct-shipping iron-ore (DSO) and magnetite iron-ore mineralisation is mainly hosted by the Brockman and Marra Mamba banded iron formations (BIF’s) in the Hamersley Basin, while much younger palaeo-river channels associated with the development of the Carnarvon Basin host detrital-iron (CID). Among the exploration targets generated by CZR at Yarraloola, magnetite represents a lowest-risk opportunity for the discovery of large-scale deposits based on the occurrence of outcrop and interpretation of detailed airbornemagnetic survey results (Fig 2). The more prospective areas for magnetite mineralization include the following. (1) Units of the Brockman Iron Formation where rock-chips report Fe to 50% and outcrop and subcrop extend over a strike length of about 26km. (2) A new iron formation in the Ashburton Trough some 12km by 1km where CZR rock-chipped outcrop of schist and quartzite with Fe to 38%. Targets have been selected for exploratory drilling.

In addition to the magnetite prospectivity, the Yarraloola tenements are located adjacent to the Robe River Channel-Iron Mines owned by RioTinto and CID resources owned by Red Hill Mining. The targeting programme of CZR is focussed on identifying palaeo-channels that may preserve CID mineralisation beneath a veneer of younger detritus. Reprocessing of magnetic data during the year has highlighted targets that potentially represent preserved portions of old meandering channels associated with both the Robe and Fortescue River systems. Follow-up mapping, gravity and more detailed ground-based magnetic surveys offers the opportunity to develop targets for drilling.

Yarraloola is also prospective for DSO-grade haematite with mapping and surface sampling has identified targets in proximity to the major regional structures that require drill-examination.

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT (Continued)

Yarraloola Gold and base-metal prospectivity

As part of the on-going assessment, gold and base-metal targets are being reviewed and progressively sampled. The Cobblers gold anomaly located approximately 10km north of Pannawonica (Fig 2) is the most advanced prospect with a coherent gold-in-soil anomaly extending over an area of about 2km by 1km and a peak result of Au at 1.75g/t.

Elsewhere at Yarraloola, rock-chip sampling of veins associated with the major regional structures in the Ashburton Trough has identified anomalism in gold and a variety of other metals. Follow-up work has been planned with a focus on identifying targets for drilling.

BUDDADOO

The Buddadoo Project in the mid-west of Western Australia is located about 200km east of Geraldton and covers an area of 210km[2] on part of the Yalgoo Greenstone Belt (Fig 1). The project hosts vanadiferous titanomagnetite, copper and gold mineralisation in different geological settings. The coarse-grained, vanadiferous titanomagnetite outcrops as bands up to 10m thick in a 250m wide zone within a 7km by 1.5km gabbro in the Buddadoo Range (Fig 3). A mineralogical study of selected material from drill-core confirms that the vanadium and titanium is hosted mostly within magnetite which is a more favourable phase for the recovery of the V, Ti and Fe by the emerging chloride-based hydrometallurgical processing circuits.

At Edamurta in the northern part of Buddadoo (Fig 3) historical work explored felsic rocks for volcanic-hosted massive sulphide (VHMS) deposits similar to the Golden Grove Mine in the eastern part of the Gullewa Greenstone Belt. In VHMS, the high-grade ore-lenses would typically have short strike-lengths but good downdip extents and occur in clusters. A recent review of all the historical work and previously announced CZR soil geochemistry suggests the copper anomalism is potentially associated with an intrusive complex on the southern side of the prospect. There is evidence of a poorly outcropping intrusive system which includes an ultramafic-mafic (talcose) phase, porphyritic gabbro and alkali anorthosite. This setting offers the potential to target broader intercepts of intrusion-related sulphide mineralization. Further work is planned.

Elsewhere on the Buddadoo tenement, follow-up work on reported gold-in-soil anomalism has been planned with an emphasis on generating drill targets.

KING-X Manganese Project

The KingX Manganese project has applications and granted exploration licenses covering an area of 2,986km[2] located in the Earaheedy Basin (Fig 1). These are underlain by Palaeoproterozoic-age clastic and chemical sediments where exploration is focussed on establishing the significance of manganese mineralization which outcrops towards the upper part of the Frere Iron Formation. Following completion and interpretation of a 4,100 line km airborne magnetic-radiometric survey covering 400km[2] in 2012, a progamme of soil and rock-chip sampling programme was initiated in early 2013. Results have been integrated and reviewed and follow-up programmes have been generated with a focus on generating targets for drilling.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT (Continued)

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Figure 1 – Location of the Cozirion Resouces Ltd tenements in Western Australia.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT (Continued)

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Figure 2 Yarraloola tenement package highlighting magnetite targets in the Brockman (BRO) and Ashburton (ASH) Iron Formations, Channel iron-ore targets (CID) and an area of high-grade haematite mineralisation (HGO) associated with a major regional fault and the location of the Cobblers Gold target.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT (Continued)

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Figure 3 - Location of the Buddadoo project showing proximity to local infrastructure.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT (Continued)

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

Other than as outlined in the review of operations, there were no significant changes in the state of affairs of the Group during the half year.

SUBSEQUENT EVENTS

On 14 March 2014 the Company announced that it has successfully completed a placement to sophisticated investors to raise gross proceeds of approximately $2.5 million. The placement was priced at 2.0 cents per share, representing a 27% discount to the 15-day VWAP[1] and will result in the issue of approximately 125 million new shares.

Other than as disclosed elsewhere in this financial report, there has been no significant events subsequent to the end of the reporting period.

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 for the halfyear ended 31 December 2013 is set out on page 10.

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

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Adam Sierakowski Chairman

Dated this14th day of March 2014

Competent Persons Statement

The information in this report that relates to mineral resources and exploration results is based on information compiled by Rob Ramsay BScHons, MSc PhD, Member of the Australian Institute of Geoscientists. Rob Ramsay is a full-time Consultant Geologist for Coziron and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 20012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Rob Ramsay has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

1 15 day volume weighted average price up to and including 17 February 2014 of 2.77 cents per share.

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38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF COZIRON RESOURCES LIMITED

As lead auditor for the review of Coziron Resources Limited for the half-year ended 31 December 2013, 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 Coziron Resources Limited and the entities it controlled during the period.

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Dean Just

Director

BDO Audit (WA) Pty Ltd

Perth, 14 March 2014

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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) in each State or Territory other than Tasmania.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

(a) Note Revenue Exploration costs Employee benefits expense Compliance and professional fees Depreciation Stamp duty on acquisition of subsidiaries Occupancy costs Administration expenses Interest expense Gain on deconsolidation of subsidiary Loss before income tax 2 Income tax expense (Loss) from continuing operations after related income tax expense for the half year attributable to members of Coziron Resources Limited Other comprehensive income Total comprehensive loss attributable to the members of Coziron Resources Limited (Loss) per share for the half year attributable to members of Coziron Resources Limited Basic loss per share (cents) Diluted loss per share (cents)	Half-Year 31 December 2013 $ Half-Year 31 December 2012 $ 1,426 28,678 (243,000) (716,885) (67,000) (80,201) (222,788) (342,646) (2,805) (2,453) - (650,000) (21,000) (15,000) (39,322) (39,558) (24) - - 148,000
	(594,513) (1,670,065) - -
	(594,513) (1,670,065) - -
	(594,513) (1,670,065)
	(0.06) (0.24) (0.06) (0.24)

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

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Prepayments Total Current Assets Non-Current Assets Property, plant and equipment Exploration assets 3 Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables 4 Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 5 Accumulated losses TOTAL EQUITY	As At 31 December 2013 $ As At 30 June 2013 $ 94,066 919,629 88,739 52,756 54,396 22,070
	237,201 994,455
	41,286 44,091 12,744,804 12,744,804
	12,786,090 12,788,895
	13,023,291 13,783,350
	2,718,347 2,883,893
	2,718,347 2,883,893
	2,718,347 2,883,893
	10,304,944 **10,889,457 **
	16,252,200 16,252,200 (5,947,256) (5,352,743)
	10,304,944 **10,889,457 **

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

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

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

Balance at 1 July 2013 Total comprehensive loss for the half-year Balance at 31 December 2013 Balance at 1 July 2012 Total comprehensive loss for the half-year Shares issued – Placement Shares issued – Acquisition Share issue costs Balance at 31 December 2012	Ordinary Shares Accumulated Losses Total Equity $ $ $ 16,252,200 (5,352,743) 10,899,457 - (594,513) (594,513)
	16,252,200 (5,947,256) 10,304,944
	3,340,450 (2,545,307) 702,893 - (1,670,065) (1,670,065) 2,067,000 - 2,067,000 11,060,000 - 11,060,000 - - (123,000)
	16,467,450 (4,215,372) 12,036,828

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

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

CONSOLIDATED STATEMENT OF CASH FLOW FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Payment for exploration expenditure Interest received Net cash flows used in operating activities Cash flows from investing activities Acquisition of plant and equipment Acquisition of subsidiary net of cash acquired Proceeds on sale of subsidiaries Payment for exploration tenements Net cash flows used in investing activities Cash flows from financing activities Proceeds from issue of ordinary shares Payment of share issue costs Net cash flows used in financing activities Net increase/(decrease) in cash 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 2013 $ Half-Year 31 December 2012 $ - - (429,508) (505,818) (400,462) (982,386) 4,407 30,170
	(825,563) (1,458,034)
	- (40,596) - 30,582 - 1 - (4,000)
	- (14,013)
	- 12,395 - (123,000)
	- (110,605)
	(825,563) (1,582,652) 919,629 3,204,911
	94,066 1,622,259

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

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

1. STATEMENT OF SIGNIFICANT ACCOUNT POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of Preparation

The half-year consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standard AASB 134 Interim Financial Reporting , Australian Accounting 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 2013 and any public announcements made by Coziron Resources Limited and its controlled entities during the half-year in accordance with 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 statements are consistent with those adopted and disclosed in the Group’s annual financial report for the financial year ended 30 June 2013 other than the Group’s policy in relation to exploration and evaluation costs in relation to mineral exploration. The Group’s revised policy is shown below.

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.

Accounting Standards Issued

In the half-year ended 31 December 2013, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for reporting periods beginning on or after 1 July 2013.

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 the Group’s accounting policies.

• AASB 10 Consolidated Financial Statements (effective from 1 July 2013) - AASB 10 establishes a new control model that applies to all entities. It replaces parts of AASB 127 Consolidated and Separate Financial Statements dealing with the accounting for consolidated financial statements and UIG-112 Consolidation – Special Purpose Entities. The new control model broadens the situations when an entity is considered to be controlled by another entity and includes new guidance for applying the model to specific situations, including when acting as a manager may give control, the impact of potential voting rights and when holding less than a majority voting rights may give control. Consequential amendments were also made to other standards via AASB 2011-7. The adoption of AASB 10 had no effect on the financial position or performance of the Company.

• AASB 11 Joint Arrangements (effective 1 July 2013) - AASB 11 replaces AASB 131 Interests in Joint Ventures and UIG-113 Jointly- controlled Entities – Nonmonetary Contributions by Venturers. AASB 11 uses the principle of control in AASB 10 to define joint control, and therefore the determination of whether joint control exists may change. In addition it removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead, accounting for a joint arrangement is dependent on the nature of the rights and obligations arising from the arrangement. Joint operations that give the venturers a right to the underlying assets and obligations themselves is accounted for by recognising the share of those assets and obligations. Joint ventures that give the venturers a right to the net assets is accounted for using the equity method. Consequential

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

• amendments were also made to other standards via AASB 2011-7 and amendments to AASB 128. The adoption of AASB 11 had no effect on the financial position or performance of the Company.

• AASB 12 Disclosure of Interests in Other Entities (effective 1 July 2013) - AASB 12 includes all disclosures relating to an entity’s interests in subsidiaries, joint arrangements, associates and structures entities. New disclosures have been introduced regarding the judgments made by management to determine whether control exists, and to require summarised information about joint arrangements, associates and structured entities and subsidiaries with non-controlling interests. The adoption of AASB 12 had no material impact on the financial statements of the Group.

• AASB 13 Fair Value Measurement (effective 1 July 2013) -AASB 13 consolidates fair value measurement guidance from across various Australian Accounting Standards into a single standard. AASB 13 does not change when fair value can or should be used. The standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).

• AASB 119 Employee Benefits (effective 1 July 2013) - The main change introduced by this standard is to revise the accounting for defined benefit plans. The amendment removes the options for accounting for the liability, and requires that the liabilities arising from such plans is recognised in full with actuarial gains and losses being recognised in other comprehensive income. It also revised the method of calculating the return on plan assets. The revised standard changes the definition of short-term employee benefits. The distinction between short-term and other long-term employee benefits is now based on whether the benefits are expected to be settled wholly within 12 months after the reporting date. The adoption of AASB 119 had no effect on the financial position or the performance of the Group.

Reporting basis and conventions

The half-year statements have 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.

Exploration and evaluation

Exploration and evaluation costs including costs of studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities along with those for general and administrative costs are expensed in the period they are incurred. Acquisition costs of acquiring are capitalised until the viability of the area of interest is determined. Those acquisition costs are carried forward when the following conditions are satisfied:

• (i) the rights to tenure of the area of interest are current; and

• (ii) at least one of the following conditions is also met:

• a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or

• b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Going Concern

This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business.

The Group has incurred a net loss after tax for the half year ended 31 December 2013 of $594,513 (2012: $1,670,065) and experienced net cash outflows from operating activities of $825,563 (2012: $1,458,034). At 31 December 2013, the Group had current assets of $237,201 (30 June 2013: $994,455).

The Directors believe that as a result of the capital raising of approximately $2.5m which is currently being completed, there are sufficient funds to meet the Group’s working capital requirements and as at the date of this report the Group believes it can meet all liabilities as and when they fall due. In order to continue with the planned exploration programs, the Directors recognise that additional funding either through the issue of further shares, convertible notes or a combination of both will be required for the Group to continue to actively explore its mineral properties.

The Directors have reviewed the business outlook and the assets and liabilities of the Group and are of the opinion that the use of the going concern basis of accounting is appropriate as they believe the Group will continue to be successful in securing additional funds through debt or equity issues or partial sale of its mineral properties as and when the need to raise working capital arises.

Should the Directors not achieve the matters set out above, there is significant uncertainty whether the Group will continue as a going concern and therefore whether it will realise its assets and liabilities in the normal course of business.

The financial report does not include any adjustments that may be necessary if the Group is unable to continue as a going concern.

2. LOSS BEFORE INCOME TAX

2. LOSS BEFORE INCOME TAX
The following revenue and expense items are relevant in explaining the financial performance for the half-year: Interest revenue Expenses Exploration costs Compliance and professional fees Stamp duty on acquisition of subsidiaries Gain on deconsolidation of subsidiary	Half-Year 31 December 2013 $ Half-Year 31 December 2012 $ 1,426 28,315
	(243,000) (716,885) (222,788) (342,646) - (650,000) - 148,000

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

3. EXPLORATION ASSETS

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

Opening balance at the beginning of the half-year Add: Acquisition of Zanthus Resources Pty Ltd Acquisition of KingX Pty Ltd Acquisition of Buddadoo Metals Pty Ltd Acquisition of tenements Less: Exploration expenditure written off in the period Closing Balance	31 December 2013 $ 30 June 2013 $ 12,744,804 - - 8,559,312 - 3,347,382 - 836,110 - 2,000 - -
	12,744,804 12,744,804

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.

The acquisition of Zanthus Resources Pty Ltd, Buddadoo Metals Pty Ltd and KingX Pty Ltd are not considered to be a business combination as it does not meet the criteria as set out in AASB 3 Business Combinations. This transaction has been treated as an acquisition of assets, predominantly exploration expenditure

4. TRADE AND OTHER PAYABLES

Trade payables Accruals Employee entitlements Other payables	31 December 2013 $ 30 June 2013 $ 55,887 208,651 662,000 670,000 460 5,242 2,000,000 2,000,000
	2,718,347 2,883,893

Other payables at reporting date represent amounts payable to the Creasy Group under the terms of the acquisition of Zanthus Resources Pty Ltd, Buddadoo Metals Pty Ltd and KingX Pty Ltd. The amount represents prior exploration expenditure by the Creasy Group on the projects acquired by the Company. Under the Acquisition Agreements the amount was only payable subject to ASX approval and the Company raising a minimum of $7,000,000 by 30 June 2013. The Company did not raise $7,000,000 by 30 June 2013, and Creasy Group did not, under the terms of the Agreement elect to extend the date to 30 June 2014. Under the terms of the Agreement the amount may now be repaid through the issue of shares, however, the parties are currently negotiating whether settlement will be through the issue of Shares or payment of cash.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

5. ISSUED CAPITAL Ordinary shares	Consolidated Group As At 31 December 2013 $ As At 30 June 2013 $ 16,252,200 16,252,200

6. SHARE BASED PAYMENTS Shares provided in respect of acquisition of: Zanthus Resources Pty Ltd KingX Pty Ltd Buddadoo Metals Pty Ltd Total share based payments	- 7,710,000 - 3,080,000 - 270,000
	- 11,060,000

The acquisition of Zanthus, KingX and Buddadoo is accounted as a share based payment under AASB 2. A share based payment transaction arises whereby Coziron Resources Limited has issued 500 million shares in exchange for the net assets of Zanthus, KingX and Buddadoo. The amount recognised as issued equity instruments in the consolidated financial statements has been determined by adding the share based payment to the issued capital of Coziron Resources Limited on the date of the acquisition. The value of the share based payment is based on the fair value of the acquisitions as determined by an external valuation that was performed during the acquisition process.

No other share based payment transactions were entered into during the period and at the time of this report the Group does not have a formal employee option plan in place.

7. SEGMENT INFORMATION

The Group operates predominantly in one geographical segment, being Western Australia, and in one industry, being mineral exploration. The reporting segment is represented by the primary statements forming this financial report.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

8. CONTINGENT LIABILITIES

As at the date of the report, the Directors are not aware of any material contingent liabilities that would require disclosure.

9. RELATED PARTY TRANSACTIONS

Transactions with related parties

Transactions with related parties during the half-year were on the same basis as the prior period.

10. SUBSEQUENT EVENTS

On 14 March 2014 the Company announced that it has successfully completed a placement to sophisticated investors to raise gross proceeds of approximately $2.5 million. The placement was priced at 2.0 cents per share, representing a 27% discount to the 15-day VWAP[2] and will result in the issue of approximately 125 million new shares.

Other than as disclosed elsewhere in this financial report, there has been no significant events subsequent to the end of the reporting period.

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

Due to their short term nature, the carrying amounts of the current receivables and current payables are assumed to approximate their fair value.

2 15 day volume weighted average price up to and including 17 February 2014 of 2.77 cents per share.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 11 to 20:

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

3. (b) give a true and fair view of the economic entity’s financial position as at 31 December 2013 and of 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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Adam Sierakowski Chairman

Dated this 14th day of March 2014

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Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Coziron Resources Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Coziron Resources Limited, which comprises the consolidated statement of financial position as at 31 December 2013, 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 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 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 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Coziron Resources Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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) in each State or Territory other than Tasmania.

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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 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 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 (WA) Pty Ltd

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Dean Just Director

Perth, 14[th] March 2014

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