DGR GLOBAL LIMITED — Interim / Quarterly Report 2003

Aug 19, 2003

D'AGUILAR GOLD PTY LTD CONDENSED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31ST DECEMBER 2002

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		6 months ending Dec-02 \$	12 months ending $Jun-02$ \$
	Note
Revenue from Ordinary Activities
Operating Revenue			12,432
Interest Received Proceeds from sale of non-current assets		7,090	15,030
Significant Item - Net write-up of fixed assets			377,478
on reversion from fair value to cost basis			808,533
Gain on debt forgiveness		3,860,273
Total Revenue from Ordinary Activities		3,867,363	1,213,473
Expenses from Ordinary Activities
Depreciation expense		(152, 686)	(470, 108)
Borrowing costs expense		(5,018)	(391)
Site restoration expenses		(600,000)	(280,000)
Other expenses from ordinary activities		(457, 442)	(906, 463)
Total Expenses from Ordinary Activities		(1, 215, 146)	(1,656,962)
Profit/(loss) from ordinary activities before
income tax expense/(income tax revenue)		2,652,217	(443, 489)
Income tax revenue/(income tax expense)
relating to ordinary activities
Profit/(loss) from ordinary activities after related
income tax expense/(income tax revenue)
attributable to members of the Company		2,652,217	(443, 489)
Total changes in equity other than those resulting
from transaction with owners as owners		2,652,217	(443, 489)

This statement to be read in conjunction with the accompanying notes

D'AGUILAR GOLD PTY LTD CONDENSED STATEMENT OF FINANCIAL POSITION FOR THE HALF YEAR ENDED 31 DECEMBER 2002

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		6 months ending Dec-02 \$	12 months ending Jun-02 \$
	Note
CURRENT ASSETS
Cash		354,443
Inventories		14,080	16,580
Receivables		49,892
TOTAL CURRENT ASSETS		418,415	16,580
NON-CURRENT ASSETS
Investments		451,187	544,861
Property, plant and equipment		486,147	634,299
Investment in Subsidiaries		79,467	0
TOTAL NON-CURRENT ASSETS		1,016,801	1,179,160
TOTAL ASSETS		1,435,216	1,195,740
CURRENT LIABILITIES
Payables		115,620	127,089
Interest Bearing liabilities		3,163	3,422
TOTAL CURRENT LIABILITIES		118,783	130,511
NON-CURRENT LIABILITIES
Interest Bearing Liabilities		0	3,860,273
Provisions	$\overline{2}$	1,300,000	700,000
TOTAL NON-CURRENT LIABILITIES		1,300,000	4,560,273
TOTAL LIABILITIES		1,418,783	4,690,784
NET ASSETS		16,433	(3,495,044)
EQUITY
Contributed Equity		1,068,700	209,440
Reserves
Retained profits		(1,052,267)	(3,704,484)
TOTAL EQUITY		16,433	(3,495,044)

This statement is to read in conjuction with the accompanying notes.

D'AGUILAR GOLD PTY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

Statement of Accounting Policy $\mathbf{f}$

The half-year financial statements are a special purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views 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 2002 and any public announcements made by D'aguilar Gold Pty Ltd during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

2 Provision for Rehabilitation Costs

The company has commissioned independent environmental consultants to review the environmental liability in respect of the Tenements. The company has also received advice from independent contractors on the quantuam of estimated rehabilitation works. On the basis of this information the Directors have provided an amount of \$1,300,000 for a provision for rehabilitation. The company does have a right of recourse against Maxi-Tec Limited (the previous owner of the company) for any rehabilitation costs in excess of \$420,000. The Directors have also taken steps to enter into agreements with third parties to accept responsibility for a portion of the present liability of the company in respect of the rehabilitation costs.

3 Funding Information

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The financial statements have been prepared on a going concern basis which contemplates continuity of of normal business activities and the realisation of assets and discharge of liabilities in the ordinary course of business.

The ability of the company to maintain continuity of normal business activities and to pay its debts as and when they fall due is dependent upon the raising of additional equity. Subsequent to balance date the company has commenced a IPO that is intended to raise \$4,000,000 in equity.