DATELINE RESOURCES LIMITED — Interim / Quarterly Report 2019

Mar 14, 2019

==> picture [79 x 79] intentionally omitted <==

DATELINE RESOURCES LIMITED

A.C.N. 149 105 653

FINANCIAL REPORT to SHAREHOLDERS

for the HALF YEAR ENDED

31 DECEMBER 2018

DATELINE RESOURCES LIMITED CORPORATE INFORMATION FOR THE HALF YEAR ENDED 31 DECEMBER 2018

Directors & Officers

Mark Johnson AO - Chairman Stephen Baghdadi - Executive Director Greg Hall - Non-Executive Director Glenn Dovaston – Managing Director & CEO John Smith - Company Secretary

Registered Office

Level 29 2 Chifley Square Sydney NSW 2000

Bankers

Commonwealth Bank of Australia 48 Martin Place Sydney NSW 2000 Website: www.commbank.com.au

Auditors

HLB Mann Judd Level 19, 207 Kent Street Sydney NSW 2000 Website: www.hlb.com.au

PO Box 553 South Hurstville NSW 2221

Share Registry

T: +61 (02) 8072 0665

E-mail: info@datelineresources.com.au Website: www.datelineresources.com.au

Securities Exchange

Australian Securities Exchange Limited ("ASX") Home Exchange – Sydney ASX Symbol – DTR (ordinary shares)

Security Transfers Australia 770 Canning Highway Applecross WA 6153 Website: www.securitytransfer.com.au

Solicitors

K & L Gates Level 31, 1 O'Connell Street Sydney NSW 2000 Website: www.klgates.com

Australian Company Number

ACN 149 105 653

Australian Business Number ABN 63 149 105 653

Domicile and Country of Incorporation Australia

2 | P a g e

DATELINE RESOURCES LIMITED DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2018

The Directors present their report of Dateline Resources Limited (“the Company”) for the half year ended 31 December 2018 (“the Period”).

1. DIRECTORS

The names of the Company’s Directors in office during the Period and until the date of this report are set out below. Directors were in office for this entire Period unless otherwise stated.

Director/ Position	Duration of Appointment
Mr. Mark Johnson AO Chairman	Appointed 22 April, 2013
Mr. Stephen Baghdadi Executive Director	Appointed 3 July, 2014
Mr. Greg Hall Non-Executive Director	Appointed 19 January 2016
Mr. Glenn Dovaston CEO and ManagingDirector	Appointed 4 December 2018

2. COMPANY SECRETARY

The Company Secretary role was held by the following individual during the half year:

• Mr. John Smith (appointed 24 October 2013).

3. PRINCIPAL ACTIVITIES

Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on gold mining and exploration in Colorado, United States of America. The Company owns 100% of its USA projects which comprise of almost 2,000 acres of brownfields high grade gold properties and a fully operational modern processing plant in Gunnison County Colorado. Several high-grade gold veins have been identified over a 4km strike length within the project area. Smelter and production records from previous mining indicate average grades to be between 15-20g/t gold (Competent Persons Statement and historical results have been released in several ASX announcements). The Company is reviewing its interest in Fiji with a view to identifying a Joint Venture partner that would enter a farm in agreement on its Fijian assets.

3 | P a g e

DATELINE RESOURCES LIMITED DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2018

4. REVIEW OF OPERATIONS AND ACTIVITIES

	TENEMENT SCHEDULE
Project	Number	Ownership	Location
Udu	SPL1387	100%	Fiji
Udu	SPL1396	100%	Fiji
Udu	SPL 1506	100%	Fiji
Udu	SPL 1507	100%	Fiji
Gold Links Permitted Mine	34 Patented Claims	100%	Colorado USA
Gold Links Permitted Mine	20 Unpatented Claims	100%	Colorado USA
Lucky Strike Permitted Mine and Mineral Hill Historic Mine	19 Patented Claims	100%	Colorado USA
Lucky Strike Permitted Mine and Mineral Hill Historic Mine	13 Unpatented Claims	100%	Colorado USA
Raymond and Carter Mines	169 Patented Claims	100%	Colorado USA

GOLD LINKS

There is a large body of data and records concerning the project area, and Dateline has commenced review of this body of data by a Competent Person. The data is compelling and includes the history of mining and exploration activities dating back 130 years within the Gold Links Project area.

This area of more than 2,000 acres includes 4 historic mines and extends over 4 kilometres along Gold Creek in Gunnison county.

The key points are:

• Over 150koz of high-grade gold was mined from four gold zones; (ASX: DTR 8 Feb 2019).

• Veins mined in the gold zones had the same orientation, were steeply dipping and ranged from 0.5m to 4m in thickness. (ASX: DTR 8 Feb 2019).

• High grade ore extracted from the Lyons winze in 1915, with 9 reported grades indicating a range between 89g/t to 287g/t; and similar ore extracted from the Morris winze in 1922, with 5 reported grades , indicating a range between 81g/t to 240g/t (ASX: DTR 8 Feb 2019).

• Dateline’s recently completed sampling of 2150 vein ranging from 0.7m @ 0.07 g/t to 1.2m @ 250 g/t, including assays of 1.2m @ 38g/t, and a grab sample of 151 g/t (ASX: DTR 8 Feb 2019).

• Adits were driven from the valley floor to access known gold zones.

• Numerous veins were intersected in the adits but were never fully explored nor developed.

• Although limited, exploration and development below the adit levels confirm that mineralisation exists below the previous workings. (ASX: DTR 8 Feb 2019).

• With modern geology and geochemistry the ore zones are now well understood, continuous and easy to identify.

Completed work that had been done by Dateline to significantly de-risk the project includes:

• Acquiring the freehold land that hosts the mineralisation. In the USA, owning the freehold means owning the mineralisation below it;

• Digitising historic maps, exploration and production reports;

4 | P a g e

DATELINE RESOURCES LIMITED DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2018

• Linking vendor payments to production;

• Drilling and sampling the project area and intercepting high values of gold (ASX:DTR 21 Feb, 10 Oct and 27 Nov 2018).

• Validating some of the exceptional historical exploration data by re-assaying drill core (ASX: DTR 10 Oct 2018);

• Consolidating the 250+ separate mining claims into a single entity;

• Securing a 100% owned and fully operational processing plant, modernised in 2013 by the former owners at a cost of US$6m with all approvals in place.

• Ensuring all permits and approvals to commence exploration, development, mining and processing activities are in place; and,

• Recruiting a highly competent operational team capable of executing the company’s plans in Colorado.

In 2018 a small block of ore was mined near surface within the Gold Links Project area and processed. Flotation concentrate grades of up to 767 g/t Au (ASX: DTR 30 Jul 2018).

Metallurgy and ore processing are usually one the biggest impediments for companies to move into the production phase. Dateline has the advantage of knowing that there are no metallurgical impediments, nasty bi-products or costly metallurgical test-work required to successfully process the ore.

All the hard work, time and effort that has already been completed for Dateline to allow for a smooth, quick and low-cost transition from exploration to production. For many exploration companies this process can take between 3 to 5 years to complete after exploration drilling has been finalised. For Dateline it will be under twelve months. This is a significant advantage and rare for a start-up project to be in such an advanced position.

The Strategy

The Board is confident that there is potential for extensions along strike and at depth of the existing four known gold zones, based on historical information and site evaluation by the company. There is similar potential in several unexplored stacked ore zones which, if realised, will mean that Dateline Resources will become a long-term, mid-tier gold producer.

To achieve this Dateline Resources has decided on a simple but effective strategy, to look for more gold directly below and in between where gold has previously been found.

On completion of the first drilling target Dateline will review the results and evaluate potential mining methods, processing and production rates and future exploration with the objective of becoming a mid-tier gold producer with a long mine life. The timeline for our exploration programme indicates extension of the existing Reynolds decline commencing in March, followed by diamond drilling and then resources modelling, to be completed by the fourth quarter of 2019.

5 | P a g e

DATELINE RESOURCES LIMITED DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2018

FIJI

The company is reviewing its interests in Fiji with a view to identifying a JV partner that would enter a farm in agreement on its Fijian assets.

FINANCIAL RESULTS

The financial results of the Company for the half year ended 31 December 2018 are:

	31-Dec-18	30-Jun-18
Cash & Cash equivalents ($)	76,027	91,848
Net Assets($)	7,238,295	9,163,765
	31-Dec-18	31-Dec-17
Revenue ($)	65,376	474
Net Profit (Loss) After Tax ($)	(1,887,149)	(1,554,279)
Profit/(Loss) per Share (Cents)	(0.26)	(0.30)
Dividend($)	-	-

5. SIGNIFICANT CHANGES IN STATE OF AFFAIRS

• i. On 20 September 2018, the Company announced the completion of the acquisition of the Raymond & Carter gold mines as per the announcement of 14 March 2018.

• ii. On 30 November 2018, the Company announced that it would be undertaking a 10 for 1 renounceable rights issue of up to 7,244,958,100 fully paid ordinary shares in the Company (each, a New Share) at $0.002 per New Share to raise up to $14,489,916.

The Company advised of the strong participation in the Rights Issue by the Company's directors and/or their related entities , including the full take up by substantial shareholder Southern Cross Exploration N.L. and Non-Executive Chairman, Mr Mark Johnson (each of whom would subscribe for their full Entitlement by setting off a substantial portion of the total amounts owed to them with the amount that each of them would have otherwise had to pay were they subscribing for their Entitlement in cash. Furthermore, Mr Johnson, the Company's new Chief Executive Officer, Mr Glenn Dovaston, the Company's former Chief Executive Officer, Mr Stephen Baghdadi and the Company's current Non-Executive Director, Mr Greg Hall had together also agreed to partially underwrite the Rights Issue by committing to subscribe for up to $1,012,376.12 worth of any Shortfall.

The funds raised under the Rights Issue will be used for debt retirement, the continued exploration and development of the Colorado Gold Links Project and general working capital purposes including the costs of the Rights Issue.

• iii. During the period, Southern Cross Exploration NL advanced to the company $1,149,000 on various terms. Please see note 12 for details.

• iv. During the period, Mr Mark Johnson advanced to the company $1,300,000 on various terms. Please see note 12 for details.

6 | P a g e

DATELINE RESOURCES LIMITED DIRECTORS’ REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2018

6. SIGNIFICANT MATTERS AFTER BALANCE DATE

• i. On 22 January 2019, the Company’s Chairman Mr. Mark Johnson announced that he was increasing his underwriting commitment to the renounceable rights issue by $1,113,472. Mr Johnson’s total underwriting commitment would now be $1,613,472.

• ii. On 5 February 2019, the Company announced that participation in the renounceable rights issue had closed on 31 January 2019 and that $7,307,599 had been raised from existing shareholders. Total applications had been received for 3,653,799,355 new shares which were allotted on 7 February 2019.

• iii. On 14 March 2019, the Company announced that applications had been received from existing shareholders and sophisticated investors for 90.2% of the rights issue shortfall. The proceeds from these applications were $6,481,472 which represented 3,240,736 new shares. These shares were allotted on 13 March 2019. The Company further announced that it was confident of placing the remaining shortfall of 350,422,745 before the expiry date of 30 April 2019.

• iv. $4,800,300 of loans due to Southern Cross Resources NL, $1,716,190 due to Directors / Company Secretary and $130,000 due to other parties were converted into shares as a result of the above mentioned rights issue.

7. AUDITOR’S INDEPENDENCE DECLARATION

The auditors independence declaration under Section 307C of the Corporations Act 2001 is set out on Page 8 of this report.

Signed in accordance with a resolution of Directors.

==> picture [116 x 31] intentionally omitted <==

Mark Johnson AO Chairman 15 March 2019

7 | P a g e

==> picture [594 x 93] intentionally omitted <==

Auditor’s Independence Declaration

To the directors of Dateline Resources Limited:

As lead auditor for the review of the financial report of Dateline Resources Limited for the half-year ended 31 December 2018, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

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

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

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

==> picture [145 x 59] intentionally omitted <==

Sydney, NSW 15 March 2019

M D Muller Partner

8 | P a g e

DATELINE RESOURCES LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2018

Note Continuing operations Revenue Exploration expenditure Employment expenses Finance charges Exchange gain/(loss) Administration expenses 4 Profit/(Loss) from continuing operations before income tax Income tax expense Profit/(loss) from continuing operations after income tax Other comprehensive profit/(loss) Foreign Currency Translation Reserve Total comprehensive profit/(loss) for the period Profit/(loss) for the period is attributable to: Owners of the Company Total comprehensive profit/(loss) for the period attributable to: Owners of the Company Profit/(loss) per share from continuing operations attributable to the ordinary equity holders of the Company: Basic and diluted profit/(loss) per share – cents per share	31-Dec-18 $ 65,376 (27,569) (67,716) (682,057) (222,470) (952,713) (1,887,149) - (1,887,149) (16,803) (1,903,952) (1,887,149) (1,887,149) (1,903,952) (1,903,952) Cents (0.26)	31-Dec-17	31-Dec-17
		$ 474 (103,963) (452,999) (257,790) (44,122) (695,879)
		(1,554,279) -
		(1,554,279) 24,659
		(1,529,620)
		(1,554,279)
		(1,554,279)
		(1,529,620)
		(1,529,620)
			Cents (0.30)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

9 | P a g e

DATELINE RESOURCES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE HALF YEAR ENDED 31 DECEMBER 2018

Note Current Assets Cash & cash equivalents Trade & other receivables Financial Assets Total Current Assets Non-Current Assets Plant & equipment land & buildings 5 Exploration & evaluation expenditure 6 Total Non-Current Assets TOTAL ASSETS Current Liabilities Trade & other payables 7 Loans from Related Parties 8 Total Current Liabilities Non-Current Liabilities Trade & other payables 7 Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS Equity attributable to the equity holders of the Company Contributed equity 9 Reserves 10 Shares & options to be issued 11 Accumulated losses TOTAL EQUITY

31-Dec-18 30-Jun-18 $ $ 76,027 91,848 37,789 19,434 26,799 297,019 140,615 408,301 14,227,581 12,426,211 6,646,715 6,305,886 20,874,296 18,732,097 21,014,911 19,140,398 685,253 516,085 8,245,897 5,054,420 8,931,150 5,570,505 4,845,466 4,406,128 4,845,466 4,406,128 13,776,616 9,976,633 7,238,295 9,163,765 19,571,266 19,528,784 259,922 110,599 - 275,830 (12,592,893) (10,751,448) 7,238,295 9,163,765

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

10 | P a g e

DATELINE RESOURCES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2018

Balance as at 1 July, 2018 Total Profit / (loss) Total other comprehensive income Total comprehensive Income for the Period Transaction with owners in their capacity as owners Options expired Contributions of equity Balance as at 31 December 2018 Balance as at 1 July, 2017 Total Profit / (loss) Total other comprehensive income Total comprehensive Income for the Period Transaction with owners in their capacity as owners Contributions of equity Balance as at 31 December 2017	Issued Capital Shares & Options to be Issued Accumulated Losses Option Valuation Reserve Foreign Currency Reserve TOTAL $ $ $ $ $ $ 19,528,784 275,830 (10,751,448) 161,043 (50,444) 9,163,765 - - (1,887,149) - - (1,887,149) - - - - (16,803) (16,803)
	- - (1,887,149) - (16,803) (1,903,952) 45,704 (45,704) - 42,482 (275,830) - 211,830 - (21,518)
	19,571,266 - (12,592,893) 327,169 (67,247) 7,238,295
	Issued Capital Other Equity Accumulated Losses Option Valuation Reserve Foreign Currency Reserve TOTAL $ $ $ $ $ $ 12,254,584 - (7,128,495) 115,339 386,118 5,627,546 - - (1,554,279) - - (1,554,279) - - - - 24,659 24,659
	- - (1,554,279) - 24,659 (1,529,620) 4,467,931 960,000 - 45,705 - 5,473,636
	16,722,515 960,000 (8,682,774) 161,044 410,777 9,571,562

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

11 | P a g e

DATELINE RESOURCES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

Cash flows used in operating activities Receipts from customers Payment to suppliers and employees Interest received Net cash flows used in operating activities Cash flows used in investing activities Payment for acquisition of subsidiaries net of cash acquired Payment for Fixed Assets Payment for exploration & evaluation expenditure Net cash flows used in investing activities Cash flows from financing activities Proceeds from issue of shares Capital raising expenses Advance of related party loans Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

31-Dec-18 31-Dec-17 $ $ 65,376 - (614,900) (1,010,519) - 474 (549,524) (1,010,045) - (189,955) (1,531,150) (447,664) (340,829) (1,979,772) (1,871,979) (2,617,391) - 3,867,336 (43,318) - 2,449,000 532,468 2,405,682 4,399,804 (15,821) 772,368 91,848 261,279 76,027 1,033,647

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

12 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

1. CORPORATE INFORMATION

The financial report of Dateline Resources Limited (the “Company”) covers the period from 1 July 2018 to 31 December 2018 (the “Period”). The Company was incorporated on 3 February 2011.

In June 2011, the Company was listed on the Australian Securities Exchange (ASX) through initial Public Offering Prospectus dated 18 April 2011.

The Company is an Australian-based mineral exploration company with existing exploration projects in the Republic of Fiji and mining permits in Colorado USA. The address of the registered office of the Company is Level 29, 2 Chifley Square Sydney NSW 2000.

The financial report of Dateline Resources Limited for the Period was authorised for issue in accordance with a resolution of the Directors on 15 March 2019.

2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

(a) Basis of preparation

This general purpose interim condensed financial report of the Company for the Period has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 . Compliance with AASB 134 ensures compliance with International Financial Standard IAS 34 Interim Financial Reporting .

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report.

It is recommended that the interim financial report be read in conjunction with the annual financial statements for the year ended 30 June 2018 and considered together with any public announcements made by the Company during the Period and up to the date of this report in accordance with the continuous disclosure obligations of the ASX Listing Rules.

The accounting policies and methods of computation adopted in the preparation of this financial report for the Period under review are consistent with those adopted in the annual financial statements for the year ended 30 June 2018. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement and AASB 15 Revenue from Contracts with Customers replaces AASB 119 Revenue and AASB 111 Construction Contracts. These new standards are effective for the Company from 1 July 2018. The Company has performed an assessment and concluded that no transitional adjustments were required as a result of complying with the new requirements.

There are no other new accounting standards and interpretations that have been published and have been early adopted for the 31 December 2018 reporting period that are material to the financial statements.

(b) Going Concern

The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and liabilities in the normal course of business.

During the period, the consolidated entity incurred a comprehensive loss of $1,903,952 (2017: $1,529,620 loss) a net cash outflow of $15,821 (2017: $772,368 inflow) and net cash out flow from operations of $549,524 (2017: $1,010,045). As at 31 December 2018, the consolidated entity also had a deficiency in working capital of $8,790,536 (2017: $3,581,598 deficiency in working capital) and cash assets of $76,027 (2017: $1,033,647).

13 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

The Directors note that as announced on 14 March 2019, the consolidated entity had raised $6,481,472 (note 16) from the shortfall arising from the renounceable rights issue (‘RI’) which closed on 31.1.19. This represents a total of $13,789,071 raised from the RI as at the date of this report. The Directors are very confident that the remaining $700,845 capable of being raised from the RI will be placed with shareholders and or sophisticated investors before 30 April, 2019 in accordance with the RI offer booklet.

$6,646,490 of the consolidated entity’s debt was converted into shares as a result of the rights issue mentioned above. The majority of the remaining funds raised from the rights issue are expected to be applied to finance a short term exploration program.

The ability of the consolidated entity to continue as a going concern is dependent upon the consolidated entity being able to generate sufficient funds to satisfy exploration commitments, deferred consideration and working capital requirements. The directors will continue to take the following measures which have been designed to ensure that the going concern assumption remains appropriate and that the consolidated entity is able to settle liabilities and commitments as and when they are due:

• Commence mining at Gunnison, as soon as possible;

• Seeking other funding opportunities through various transactions including future fundraising including mergers or joint ventures;

• By issuing equity to settle future liabilities, if appropriate; and

• Adopting all appropriate measures to ensure that the cashflows remain sufficient to ensure that it remains a going concern.

The Directors believe that the going concern basis for the preparation of the financial report of the consolidated entity is appropriate. The directors note that should the consolidated entity be unsuccessful in implementing the above mentioned measures, there is a material uncertainty that the consolidated entity may be able to realise its assets or discharge it liabilities in the normal course of business and at the amounts stated in the financial report.

14 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

3. OPERATING SEGMENTS

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

				Consolidation
	Australia	USA	Fiji	Entries	TOTAL
31 December 2018	A$	A$	A$	A$	A$
Revenues	-	65,376	-	-	65,376
Segment Result	(1,602,322)	(284,827)	-	-	(1,887,149)
31 December 2017
Revenues	474	-	-	-	474
Segment Result	(500,052)	(1,051,043)	(3,185)	-	(1,554,280)
31 December 2018
Total Segment Assets	30,886,887	5,473,037	4,273,239	(19,618,252)	21,014,911
Total Segment Liabilities	13,548,286	1,289,858	5,014,810	(6,076,337)	13,776,617
30 June 2018
Total Segment Assets	20,085,419	14,400,045	4,208,577	(19,553,643)	19,140,398
Total Segment Liabilities	1,122,979	9,916,340	4,949,042	(6,011,729)	9,976,632

	Consolidated	Consolidated
	31-Dec-18	31-Dec-17
4. ADMINISTRATION EXPENSES	645,335 57,204 250,174	418,804 51,175 225,900
Consulting and corporate expenses
Compliance and regulatory expenses
Other administration expenses
TOTAL ADMINISTRATION EXPENSES	952,713	695,879

15 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

5. PLANT & EQUIPMENT LAND & BUILDINGS Carrying amount of Fixed Assets (a) Plant & Equipment At Valuation / Cost Less accumulated depreciation Total Plant & Equipment Balance at the beginning of the period Balance at the end of the period (b) Office Equipment At Cost Less accumulated depreciation Total Office Equipment Movement during the Period Balance at the beginning of the period Additions Balance at the end of the period (c) Mining plant & equipment At Cost Total mining plant & equipment Movement during the Period Balance at the beginning of the period Additions Mining plant & equipment acquired on acquisition Lucky Strike Mine & Mill Balance at the end of the period (d) Mining & Mill Development At Cost Total Mining land & buildings Movement during the Period Balance at the beginning of the period Additions Balance at the end of the period (e) Mining land & buildings At Cost Total mining plant & equipment Movement during the Period Balance at the beginning of the period Land acquired on acquisition of Raymond and Carter Mines Mining plant & equipment acquired on acquisition Gold Links Lease Mining plant & equipment acquired on acquisition Lucky Strike Mine & Mill Balance at the end of the period	31-Dec-18 30-Jun-18 $ $ 14,227,581 12,426,211 53,682 53,682 (53,682) (53,682) - - - - - - 59,186 51,773 (51,773) (51,773) 7,413 - - - 7,413 - 7,413 - 3,152,074 3,152,074 3,152,074 3,152,074 3,152,074 2,323,211 - 116,569 - 712,294 3,152,074 3,152,074 4,312,285 3,861,853 4,312,285 3,861,853 3,861,853 509,283 450,432 3,352,570 4,312,285 3,861,853 6,755,809 5,412,284 6,755,809 5,412,284 5,412,284 1,332,062 1,343,525 - - 1,171,830 - 2,908,392 6,755,809 5,412,284 Consolidated	31-Dec-18 30-Jun-18 $ $ 14,227,581 12,426,211 53,682 53,682 (53,682) (53,682) - - - - - - 59,186 51,773 (51,773) (51,773) 7,413 - - - 7,413 - 7,413 - 3,152,074 3,152,074 3,152,074 3,152,074 3,152,074 2,323,211 - 116,569 - 712,294 3,152,074 3,152,074 4,312,285 3,861,853 4,312,285 3,861,853 3,861,853 509,283 450,432 3,352,570 4,312,285 3,861,853 6,755,809 5,412,284 6,755,809 5,412,284 5,412,284 1,332,062 1,343,525 - - 1,171,830 - 2,908,392 6,755,809 5,412,284 Consolidated
		$ 12,426,211
		53,682 (53,682)
		-
		- -
		51,773 (51,773)
		-
		- -
		-
		3,152,074
		3,152,074
		2,323,211 116,569 712,294
		3,152,074
		3,861,853
		3,861,853
		509,283 3,352,570
		3,861,853
		5,412,284
		5,412,284
		1,332,062 - 1,171,830 2,908,392
		5,412,284

16 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

6. EXPLORATION & EVALUATION EXPENDITURE Carrying amount of exploration expenditure Movement during the Period Balance at the beginning of the Period Expenditure incurred during the Period Balance at the end of the Period	31-Dec-18 30-Jun-18 $ $ 6,646,715 6,305,886 6,305,886 4,898,753 340,829 1,407,133 6,646,715 6,305,886 Consolidated

The ultimate recoupment of the costs carried forward for exploration and evaluation expenditure is dependent on the successful development and commercial exploitation, or alternatively, the sales of the respective area of interest. The Board has reviewed the situation and the status of the exploration assets and considers that their carrying value is appropriate and recoverable as at 31 December 2018.

7. TRADE & OTHER LIABILITIES $ $ Current Trade and sundry creditors 685,253 488,012 Accruals - 28,073 685,253 516,085 Non-Current Amount owed to the vendors of ALSH LLC 2,422,733 2,203,064 Amount owed to the vendors of CRG Mining LLC 2,422,733 2,203,064 4,845,466 4,406,128 The amount above of $4,845,466 was arrived at after applying an annual discount rate	7. TRADE & OTHER LIABILITIES $ $ Current Trade and sundry creditors 685,253 488,012 Accruals - 28,073 685,253 516,085 Non-Current Amount owed to the vendors of ALSH LLC 2,422,733 2,203,064 Amount owed to the vendors of CRG Mining LLC 2,422,733 2,203,064 4,845,466 4,406,128 The amount above of $4,845,466 was arrived at after applying an annual discount rate
of 10% to future payments which are all payable on 31 December 2022.
8. LOANS FROM RELATED PARTIES Current Amounts owed to Southern Cross Resources NL Amounts owed to Mr. Mark Johnson Amounts owed to Mr. Greg Hall Total current loans from shareholders Total non-current loans from shareholders TOTAL LOANS FROM RELATED PARTIES	5,452,652 3,747,508 2,708,245 1,221,912 85,000 85,000 8,245,897 5,054,420 - - 8,245,897 5,054,420

The amount owed to Southern Cross Exploration N.L. of $5,452,652 is made up of:

• $1,607,830 (June 2018 $1,330,541) which are expenses paid by Southern Cross Exploration N.L. for and on behalf of the Company. This amount is unsecured and interest free.

• $3,844,822 (June 2018 $2,416,967) which represents unsecured loans including interest. Details of these loans are included in note 12. Interest of $278,855 ($Nil, Dec 2017) was charged on the loan during the period.

17 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

The amount owed to Mr. Johnson of $2,708,245 is made up of:

• $165,000 (June 2018 $165,000) is interest free and represents unpaid consulting fees.

• $2,543,245 (June 2018 $1,056,912) which represents unsecured loans including interest. Details of these loans are included in note 12. Interest of $186,334 ($Nil, Dec 2017) was charged on the loan during the period.

The amount owed to Mr. Greg Hall of $85,000 ($85,000, June 2018) is interest free and represents unpaid consulting fees.

9. CONTRIBUTED EQUITY (a) Share Capital

(a) Share Capital Ordinary Capital Number of Shares Paid Up (b) Movements in Share Capital 01 Jul 2017 Opening Balance 10 Jul 2018 Issue of shares 08 Oct 2018 Issue of shares 31 Dec 2018 Share Issue Costs Closing Balance 10. RESERVES Option Valuation Reserve Foreign Currency Transalation Reserve	31-Dec-18 30-Jun-18 724,495,810 718,495,810 $19,571,266 $19,528,784 Number of Shares $ 718,495,810 19,528,784 2,000,000 64,000 4,000,000 21,800 - (43,318) 724,495,810 19,571,266 31-Dec-18 30-Jun-18 $ $ 327,169 161,043 (67,247) (50,444) 259,922 110,599 Consolidated Consolidated Consolidated

Option Valuation Reserve

10 million unlisted options relating to the purchase price of freehold land acquired were issued on 10 July 2018. They are valued at $211,830.

The balance of $115,339 related to the issue of 35 million unlisted options that were issued as part of the acquisition of Gunnison Gold Pty Ltd.

Foreign Currency Translation Reserve

The foreign currency translation reserve records exchange differences arising on translation of the foreign controlled subsidiaries.

18 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

11.	SHARES & OPTIONS TO BE ISSUED	Consolidated	Consolidated	Consolidated
		31-Dec-18		30-Jun-18
		$ - -		$
	Shares to be issued			64,000
	Options to be issued			211,830
		-		275,830

==> picture [36 x 32] intentionally omitted <==

Shares and options to be issued relate to the purchase of freehold land acquired but had not been issued as at 30 June 2018. The shares and options were issued on 10 July 2018.

12. RELATED PARTY DISCLOSURES

During the period ended 31 December 2018 there were loans advanced to the Company from Southern Cross Exploration N.L. (SXX) as depicted in the table below:

	Loans from SXX as at 31.12.18	Loans from SXX as at 31.12.18	Loans from SXX as at 31.12.18	Interest Rate	Interest Rate
Date of		Loan	Repayment Amount $294,072 $1,297,230 $423,282 $247,211 $108,217 $113,335 $101,630 $112,468 $101,184 $67,431 $27,766 $99,699 $77,515 $44,278 $109,291 $109,250 $54,522 $107,300 $102,886 $53,800 $106,939 $85,516	Up to	From	Line
Advance	Principal	Charges		4 May 18	4 May 18	Fee
15-12-17	$250,000	$44,072		7.00%	15.06%	5.0%
15-01-18	$1,100,000	$197,230		10.00%	15.06%	5.0%
16-03-18	$364,000	$59,282		10.00%	15.06%	5.0%
13-04-18	$214,000	$33,211		10.00%	15.06%	5.0%
29-05-18	$95,000	$13,217		N/A	15.06%	5.0%
12-06-18	$100,000	$13,335		N/A	15.06%	5.0%
22-06-18	$90,000	$11,630		N/A	15.06%	5.0%
03-07-18	$100,000	$12,468		N/A	15.06%	5.0%
04-07-18	$90,000	$11,184		N/A	15.06%	5.0%
05-07-18	$60,000	$7,431		N/A	15.06%	5.0%
06-08-18	$25,000	$2,766		N/A	15.06%	5.0%
13-08-18	$90,000	$9,699		N/A	15.06%	5.0%
14-08-18	$70,000	$7,515		N/A	15.06%	5.0%
15-08-18	$40,000	$4,278		N/A	15.06%	5.0%
18-09-18	$100,000	$9,291		N/A	15.06%	5.0%
19-09-18	$100,000	$9,250		N/A	15.06%	5.0%
24-09-18	$50,000	$4,522		N/A	15.06%	5.0%
10-10-18	$99,000	$8,300		N/A	15.06%	5.0%
12-10-18	$95,000	$7,886		N/A	15.06%	5.0%
29-10-18	$50,000	$3,800		N/A	15.06%	5.0%
14-11-18	$100,000	$6,939		N/A	15.06%	5.0%
15-11-18	$80,000	$5,516		N/A	15.06%	5.0%
TOTAL	$3,362,000	$482,822	$3,844,822

19 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

During the period ended 31 December 2018 there were loans advanced to the Company from Mr. Mark Johnson as depicted in the table below:

Johnson as depicted in the table below:	Johnson as depicted in the table below:	Johnson as depicted in the table below:
Loans from Mr. Mark Johnson as at			31.12.18	Interest Rate
Date of		Loan	Repayment Amount $294,072 $412,755 $134,892 $41,587 $246,995 $1,094,974 $317,970	Up to	From	Line
Advance	Principal	Charges		4 May 18	4 May 18	Fee
15-12-17	$250,000	$44,072		N/A	15.06%	5.0%
15-01-18	$350,000	$62,755		N/A	15.06%	5.0%
16-03-18	$116,000	$18,892		N/A	15.06%	5.0%
13-04-18	$36,000	$5,587		N/A	15.06%	5.0%
30-04-18	$214,679	$32,316		N/A	15.06%	5.0%
13-09-18	$1,000,000	$94,974		N/A	15.06%	5.0%
07-12-18	$300,000	$17,970		N/A	15.06%	5.0%
TOTAL	$2,266,679	$276,566	$2,543,245

13. DIVIDENDS

No dividend has been paid during the Period and no dividend is recommended for the Period.

14. COMMITMENTS

14. COMMITMENTS
(a) Exploration & Evaluation Commitments	31-Dec-18
		30-Jun-18
	$	$
Within one year	- - -	904,007
After one year but not more than five years		-
After more than fiveyears		-
Total minimum commitment	-	904,007

15. CONTINGENT LIABILITIES

There are existing contingent liabilities in regard to Royalty Arrangements to the vendors of CRG Mining LLC. (CRG). The vendors of CRG are entitled to receive royalty payments at a rate of US$50 for each ounce of gold produced from any mining operations conducted on the acquired tenements up to a maximum of US$5 million (Maximum Amount). Regardless of production, an aggregate minimum amount of US$2.5 million will be paid by 31 December 2022 which is included in the deferred consideration. (Refer note 7).

Relating to the Sooner Lucky Strike Mine there is also a contingent liabilities in regard to Royalty Arrangements to the vendors of ALSH LLC. (ALSH). The vendors of ALSH are entitled to receive royalty payments at a rate of US$50 for each ounce of gold produced from any mining operations conducted on the acquired tenements up to a maximum of US$5 million (Maximum Amount). Regardless of production, an aggregate minimum amount of US$2.5 million will be paid by 31 December 2022 which is included in the deferred consideration. (Refer note 7).

Royalties payable to the previous owner of Gunnison Property

During the year ended 30 June 2018 the Company acquired freehold land over the Gold Links property. The agreement entitles the previous owner of this land to Royalty payments as detailed below:

20 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

The Company shall pay Royalties to the previous owner based on a percentage of Net Smelter Returns base on the Gold Price per Ounce as follows:

Gold Price per Ounce (USD)	Ownership Percentage of Net Smelter Returns
$1,000 and below	1.0%
$1,001 to 1,500	An Additional 0.1%for every $100 in excess of$1,000 upto$1,500
$1,501 to$2,000	2.0%
$2,001 to $5,500	2.0% plus additional 0.1% for every $100 in excess of $2,000 up to $5,500
$5,501 and above	7.0%

The percentage will be adjusted bi- annually if the total amount of gold produced over a 6 month period is great than one ounce per ton. The adjustment is calculated by multiplying the average Ownership Percentage of Net Smelter returns during each 6 month period by the Gold Ratio. The Gold Ratio is the ratio of the amount of ounces of gold produced verses the tonnes of ore mined and milled.

The maximum percentage payable is capped at 7%.

Minimum payment if no production occurs

If no production is under taken after 31 October 2018 the previous owner is entitled to US$15,000 per calendar year if the following condition is met:

• (i) A commercial quantity (as determined by the previous owner’s project engineer and geologist) of ore is available.

There were no changes to contingent liabilities since 30 June 2018.

16. SIGNIFICENT MATTERS AFTER BALANCE DATE

• a. On 22 January 2019, the Company’s Chairman Mr. Mark Johnson announced that he was increasing his underwriting commitment to the renounceable rights issue by $1,113,472. Mr Johnson’s total underwriting commitment would now be $1,613,472.

• b. On 5 February 2019, the Company announced that participation in the renounceable rights issue had closed on 31 January 2019 and that $7,307,599 had been raised from existing shareholders. Total applications had been received for 3,653,799,355 new shares which were allotted on 7 February 2019.

• c. On 14 March 2019, the Company announced that applications had been received from existing shareholders and sophisticated investors for 90.2% of the rights issue shortfall. The proceeds from these applications were $6,481,472 which represented 3,240,736 new shares. These shares were allotted on 13 March 2019. The Company further announced that it was confident of placing the remaining shortfall of 350,422,745 before the expiry date of 30 April 2019.

• d. $4,800,300 of loans due to Southern Cross Resources NL, $1,716,190 due to Directors / Company Secretary and $130,000 due to other parties were converted into shares as a result of the above mentioned rights issue.

21 | P a g e

DATELINE RESOURCES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2018

17. EARNINGS PER SHARE Consolidated	17. EARNINGS PER SHARE Consolidated
31-Dec-18	31-Dec-17
Basic and diluted loss per share ($0.26)	($0.30)
Net loss used to calculate earnings loss per share ($1,887,149)	($1,554,279)
Weighted average number of ordinary shares on issue used in the calculation of earnings per share 722,233,509 510,448,184

22 | P a g e

DATELINE RESOURCES LIMITED DIRECTORS’ DECLARATION FOR THE HALF YEAR ENDED 31 DECEMBER 2018

In the Directors’ opinion:

• (a) The financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:

• (i) Giving a true and fair view of the financial position as at 31 December 2018 and the performance for the period 1 July 2018 to 31 December 2018 of the Company.

• (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements.

• (b) 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 Directors.

On behalf of the Board of Directors.

==> picture [116 x 32] intentionally omitted <==

Mark Johnson Chairman 15 March 2019

23 | P a g e

==> picture [594 x 100] intentionally omitted <==

Independent auditor’s review report to the members of Dateline Resources Limited

Report on the Consolidated Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Dateline Resources Limited (“the company”) which comprises the consolidated statement of financial position as at 31 December 2018, the consolidated statement of 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 summary of significant accounting policies and other explanatory notes, and the directors’ declaration, for the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

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 Dateline 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 2018 and of its performance for the half-year ended on that date; and

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

Material Uncertainty Related to Going Concern

Without modifying our opinion, we draw attention to Note 2(b) Going concern basis, which indicates that the company’s ability to continue as a going concern is dependent on it raising sufficient capital or commencing mining operations. These conditions, along with other matters set forth in Note 2(b), indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 gives a true and fair view and 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 2018 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

24 | P a g e

==> picture [594 x 97] intentionally omitted <==

Auditor’s Responsibility (continued)

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 the company, would be in the same terms if given to the directors as at the time of this auditor’s report.

==> picture [188 x 73] intentionally omitted <==

HLB Mann Judd Assurance (NSW) Pty Ltd Chartered Accountants

==> picture [145 x 59] intentionally omitted <==

M D Muller Partner

Sydney, NSW 15 March 2019

25 | P a g e