DGR GLOBAL LIMITED — Interim / Quarterly Report 2012

Mar 14, 2012

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DGR GLOBAL LIMITED AND CONTROLLED ENTITIES ACN 052 354 837

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

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Corporate Information

DIRECTORS

William Stubbs (Chairman) Nicholas Mather (Managing Director) Brian Moller Vincent Mascolo

COMPANY SECRETARY

Karl Schlobohm

REGISTERED OFFICE AND PRINCIPAL BUSINESS OFFICE

DGR Global Limited Level 13 145 Eagle Street Brisbane QLD 4000 Phone: + 61 7 3303 0680 Fax: +61 7 3303 0681

SOLICITORS

Hopgood Ganim Level 8, Waterfront Place 1 Eagle Street Brisbane QLD 4000

SHARE REGISTER

Link Market Services Limited Level 15, 324 Queen Street Brisbane QLD 4000 Telephone: +61 7 3320 2235 Facsimile: +61 7 3228 4999

AUDITORS

BDO Audit (QLD) Pty Ltd Level 18, 300 Queen Street Brisbane QLD 4000

COUNTRY OF INCORPORATION Australia

STOCK EXCHANGE LISTING

Australian Securities Exchange ASX Code: DGR

INTERNET ADDRESS

www.dgrglobal.com

AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837

DGR Global Limited financial report for the half-year ended 31 December 2011

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Directors' Report

Your directors submit the financial report of the consolidated entity for the half-year ended 31 December 2011.

DIRECTORS

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

William Stubbs (Non-Executive Chairman) Nicholas Mather (Managing Director and Chief Executive Officer) Brian Moller (Non-Executive Director) Vincent Mascolo (Non-Executive Director)

REVIEW OF OPERATIONS

DGR Global Limited’s (“DGR Global” or the “Group”) business is resource-project generation and discovery across a range of commodities, including copper, gold, nickel, molybdenum, iron ore, titanium, oil and gas. The group focuses on delivering value through discovery of resources by the application of innovative exploration techniques and reassessment strategies of existing pre-development projects and to new greenfields areas. DGR Global is generating and developing several independently funded and managed resource companies in order to progress each of these projects. The company also maintains its cornerstone investor position in subsidiaries that move to listing on a recognised stock exchange. DGR Global Limited changed its name from D’Aguilar Gold Limited on 7 November 2011.

Exploration and Development of Subsidiaries

During the half-year the Group was strongly focused on advancing exploration projects within the parent and subsidiary companies. Field reconnaissance programs including mapping, soil, stream and rock sampling, and reverse circulation drilling were undertaken.

Significant activities which occurred during the half-year included:

Armour Energy Limited (50%)

• Key appointments to senior management team

• Acquisition of a 13% equity interest in Lakes Oil NL (ASX: LKO) and farm-in on highly prospective onshore Gippsland and Otway Tenements

• Lodgment of Prospectus with the Australian Securities and Investment Commission on 13 March 2012 in connection with the initial public offering (IPO) of its shares on the Australian Securities Exchange (ASX) to raise $75,000,000

Archer Resources Limited (67%)

• Wholly owned subsidiary AimFire Energy Pty Ltd lodged applications for seven exploration licenses in the Permian coalbearing Arckaringa Basin of South Australia

IronRidge Resources Limited (68.5%)

• Renamed Ridge Exploration to IronRidge Resources to reflect the predominant iron focus

• Appointment of Mr Peter Williams as CEO

• Assay results from drilling at Monogorilby confirm potentially economic grades and tonnage of TiO₂

• • Encouraging nickel, copper and cobalt assays from Coorada and Quaggy Prospects

• Two iron ore prospecting applications lodged in Gabon, West Africa

Investments

Solomon Gold plc (11.7%) – LSE: SOLG

• Further encouraging results from drilling and surface sampling programs on the Mbetilonga Project in JV with Newmont on Guadalcanal in the Solomon Islands

• Mr Malcolm Norris appointed as CEO

• Inferred mineral resource at Rannes increased to 25.5 Mt containing 486,935 oz gold and 13,014,292 oz silver (at 0.30 g/t cut-off)[A]

DGR Global Limited financial report for the half-year ended 31 December 2011

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Directors' Report (continued)

Investments (continued)

Mt Isa Metals Limited (30.6%) – ASX: MET

• 14 km long geochemical gold anomaly identified at the Kamsongo Project in Burkina Faso

• High grade gold intersections from drilling at the Bantou Prospect over 600 metres strike length

• Extensive high grade soil anomaly over a 6km x 2km zone at the Bongou Prospect

• Numerous high grade gold intersections announced as the resource drill out to 100 vertical metres continues at the Nabanga Project area

AusNiCo Limited (41.5%) – ASX: ANW

• Further nickel intersections announced at the Pembroke Prospect

• $1.4 M capital raising by placement and underwritten SPP

• Completion of 1,287 metre (12 hole) RC drilling program to test geochemical and geophysical targets on 7 prospects in the Black Snake Plateau region

• Successful application for nickel exploration tenement in NW Tasmania

Navaho Gold Limited (29%) – ASX: NVG

• Initial drilling programs completed at Rose Mine, Stevens Basin, Whitehorse Flats and Taz Projects, with follow up drilling undertaken at Stevens Basin

• Deep hole drilling underway at Utah Clipper Project, which is highly rated by the US Geological Survey as a Carlin style gold target

Corporate

• Established London based New Opportunities Group, targeting bulk commodities in Africa and the Middle East

• Rebranded D’Aguilar Gold to DGR Global reflecting the company strategy to become a world class resources company with global interests

EVENTS SUBSEQUENT TO BALANCE DATE

DGR Global Limited

DGR Global sold 1,218,973 Mt Isa Metals Limited shares and 1,200,000 Solomon Gold plc shares during January 2012. This resulted in DGR Global’s shareholding in Mt Isa Metals Limited being reduced to 50,000,000 ordinary shares and its shareholding in Solomon Gold plc being reduced to 33,274,477 ordinary shares. Net proceeds from the sale of these shares totaled $299,601.

Armour Energy Limited

Armour Energy Limited (“Armour”) lodged a Prospectus with the Australian Securities and Investment Commission on 13 March 2012 in connection with the IPO of its shares on the Australian Securities Exchange (ASX). Armour is seeking to raise $75,000,000 via the issue of 150,000,000 ordinary shares at $0.50 per share. The Directors anticipate that the quotation of Armour’s shares to occur by 26 April 2012. Upon quotation of Armour’s shares on the ASX, DGR Global’s shareholding will be reduced to approximately 25.02% resulting in Armour being deconsolidated from the Group and being treated as an investment in Associate in DGR Global’s financial statements. In addition to its 75,050,000 ordinary shares, DGR Global also holds 18,837,500 options in Armour Energy exercisable at $0.50 to 31 August 2014.

IronRidge Resources Limited

On 5 January 2012, IronRidge Resources Limited issued 10,000,000 ordinary shares at $0.05 per share to raise $500,000 in a private placement, which resulted in DGR Global’s holding in IronRidge Resources Limited being reduced from 86.2% to 68.5%.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Directors' Report (continued)

EVENTS SUBSEQUENT TO BALANCE DATE (continued)

With the lodgment of the prospectus for Armour Energy effectively underpinning the value of Armour Energy shares at $0.50 each, the aggregate market value of DGR’s assets may be represented as follows:

Investment	Number	Number	Market Value#
	of Shares	of Options
		/
		Warrants
		(unlisted)
Lions Gate Metals Inc	300,000	-	149,484
Solomon Gold plc	33,274,47	-	4,043,514
	7
Mt. Isa Metals Ltd	50,000,00	-	26,500,000
	0
Navaho Gold Ltd1	27,052,26	17,428,66	2,055,972
	7	7
AusNiCo Ltd2	59,776,50	20,000,00	2,092,178
	0	0
Armour Energy Ltd3	75,050,00	18,837,50	37,525,000
	0	0
Archer Resources Ltd4	40,000,00	7,500,000	4,000,000
	0
IronRidge Resources Ltd	46,600,00	-	2,330,000
	0
Pinnacle Gold Pty Ltd	50,000,00	-	2,500,000
	0
Total market value of DGR Global
assets(excluding cash)			81,196,148
Total DGR Global shares on issue			324,202,76
			0
Value attributable to each DGR
share			$0.25

Market value represents the market quoted price for listed investments at 13 March 2012 or the price at which the last round of financing was raised for unquoted investments. No value has been attributable to the options or prospects in development.

• 1 The Navaho Gold Ltd (“NVG”) options allow the Company to take up one ordinary share in NVG at an exercise price of $0.20. The options are fully vested and expire on 31 December 2013.

• 2 The AusNiCo Ltd (“ANW”) options allow the Company to take up one ordinary share in ANW at an exercise price of $0.30. The options are fully vested and expire on 19 November 2013.

• 3 The Armour Energy Ltd (“Armour”) options allow the Company to take up one ordinary share in Armour at an exercise price of $0.50. The options are fully vested and expire on 31 August 2014.

• 4 The Archer Resources Ltd (“Archer”) options allow the Company to take up one ordinary share in Archer at an exercise price of $0.20. The options are fully vested and expire on 31 December 2014.

Other than the above, there have been no other events since 31 December 2011 that impact upon the financial report as at 31 December 2011.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Directors' Report (continued)

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration, under section 307C of the Corporations Act 2001, is set out on page 7 for the half-year ended 31 December 2011.

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

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Nicholas Mather Managing Director

Brisbane Date: 15 March 2012

Notes:

A The resource information for Solomon Gold has been taken from Solomon Gold’s market releases. Information relevant to Solomon Gold exploration results in based on data reviewed by Mr Malcolm Norris (B.Sc. Hons, MSc), the Chief Executive Officer of Solomon Gold. Mr Norris is a Fellow of the Australian Institute of Mining and Metallurgy who has is excess of 25 years’ experience in mineral exploration and is a Competent person. Mr Norris consents to the inclusion of the information in the form and context in which it appears.

Competent Persons Statement

The information herein that relates to Exploration Results is based on information compiled by Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Capital Pty Ltd which provides certain consultancy services including the provision of Mr Mather as the Managing Director of DGR Global Limited (and a director of DGR Global Limited’s subsidiaries).

Mr Mather has more than five years experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au

Level 18, 300 Queen St Brisbane QLD 4000, GPO Box 457 Brisbane QLD 4001 Australia

DECLARATION OF INDEPENDENCE BY TIM KENDALL TO THE DIRECTORS OF DGR GLOBAL LIMITED

As lead auditor for the review of DGR Global Limited for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been:

• no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

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

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T J KENDALL Director

BDO Audit (QLD) Pty Ltd

Brisbane, 15 March 2012

BDO Audit (QLD) Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (QLD) 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.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Consolidated Statement of Comprehensive Income for the half-year ended 31 December 2011

	Consolidated
Note	6 Months to 31 December 2011 6 Months to 31 December 2010
	$ $
Revenue and other income Revenue 2 Other income 2 Total revenue and other income Exploration costs written off Finance costs Employee benefits expenses Depreciation expenses Legal expenses Administration and consulting expenses Share of losses of associates 6 Share based payments expense Other expenses 2 Profit/ (loss) before income tax Income tax benefit (expense) 3 Profit / (loss) for the period Other comprehensive income Net fair value gains (losses) on available for sale financial assets Realised gain on disposal of available for sale financial reserve Tax effect of net fair value gains (losses) on available for sale financial assets 3 Total comprehensive income for the period Profit / (loss) for the period attributable to: Members of the parent company Non-controlling interests Total comprehensive income for the period attributable to: Members of the parent company Non-controlling interests	1,372,769 402,116 415,615 196,776
	1,788,384 598,892
	(419,054) (1,860) (657) (29,035) (1,765,364) (909,850) (34,024) (29,202) (89,857) (145,089) (1,065,207) (1,082,445) (692,435) (551,418) (7,091) (1,613,679) (1,316,007) (248,446)
	(3,601,312) (4,012,132) (998,803) 3,653,909
	(4,600,115) (358,223)
	(2,944,161) 14,361,576 (100,534) - 913,248 (3,953,833)
	(6,731,562) 10,049,520
	(4,399,376) (200,739) (248,557) (109,666)
	(4,600,115) (358,223)
	(6,530,823) (200,739) 10,159,186 (109,666)
	(6,731,562) 10,049,520
	2011 Cents 2010 Cents
Earnings / (loss) per share Basic earnings / (loss) per share 4 Diluted earnings / (loss) per share 4	(1.4) (0.0) (1.4) (0.0)

The consolidated statement of comprehensive income should be read in conjunction with the notes to the financial statements.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Consolidated Statement of Financial Position as at 31 December 2011

	Consolidated
	31 December 30 June
	2011 2011
Note	$ $
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets Total Current Assets NON-CURRENT ASSETS Other financial assets Available-for-sale financial assets 5 Investments accounted for using the equity method 6 Property, plant and equipment Exploration and evaluation assets Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Other financial liabilities Prepaid capital contribution Total Current Liabilities NON-CURRENT LIABILITIES Other financial liabilities Deferred tax liabilities 3 Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses Equity attributable to members of the parent entity Non-controlling interests TOTAL EQUITY	7,186,393 14,801,474 226,121 356,612 1,119,684 332,000 8,532,198 15,490,086 859,137 739,330 8,650,360 9,531,766 11,997,596 11,088,680 579,431 627,017 9,281,892 11,896,187 31,368,416 33,882,980 39,900,614 49,373,066 1,209,422 1,658,436 8,202 14,141 110,000 - 1,327,624 1,672,577 21,760 53,235 1,059,894 974,335 600,000 600,000 1,681,654 1,627,570 3,009,278 3,300,147 36,891,336 46,072,919 21,885,983 21,885,983 22,558,304 24,628,686 (14,736,447) (10,319,405) 29,707,840 36,195,264 7,183,496 9,877,655 36,891,336 46,072,919

The consolidated statement of financial position should be read in conjunction with the notes to the financial statements.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Consolidated Statement of Cash Flows for the half-year ended 31 December 2011

	Consolidated
Note	6 months to 31 December 6 months to 31 December
	2011 2010
	$ $
CASH FLOWS FROM OPERATING ACTIVITIES Receipts in the course of operations Payments to suppliers and employees Interest received Interest and other costs of finance paid Net cash outflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Security deposit payments Payments for property, plant and equipment Payments for investments in available-for-sale financial assets Proceeds from the sale of investments in available-for-sale financial assets Payments for investments in associates Proceeds from the sale of investments in associates Proceeds from the repayment of the convertible note Cash disposed of on deconsolidation 9 Payments for exploration and evaluation assets Net cash outflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Proceeds from issue of shares in subsidiaries to non- controlling interests Share issue costs Prepaid capital contribution Prepaid share issue costs Proceeds from borrowings Repayment of borrowings Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash held Cash at 1 July Cash at 31 December	1,199,994 238,104 (2,947,734) (2,465,795) 305,546 123,095 (637) (29,035)
	(1,442,831) (2,133,631)
	(253,045) (21,878) (27,837) (15,449) (2,250,000) (64,000) 185,187 - - (300,000) 216,656 - - 1,000,000 (1,291,233) - (2,976,409) (1,438,899)
	(6,396,681) (840,226)
	- 423,000 800,000 5,000,000 (50,820) (448,541) 110,000 1,547,200 (629,422) - - 500,000 (5,327) (513,871)
	224,431 6,507,788
	(7,615,081) 3,533,931 14,801,474 899,726
	7,186,393 4,433,657

The consolidated statement of cash flows should be read in conjunction with the notes to the financial statements.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Consolidated Statement of Changes in Equity for the half-year ended 31 December 2011

	Issued Capital Accumulated Losses Share Based Payment Reserve Available- For-Sale Financial Assets Reserve Change in Proportionate Interest Reserve Total Non- controlling Interests Total Equity
	$ $ $ $ $ $ $ $
At 1 July 2010 Loss for the period Other comprehensive income Total comprehensive income for the period Issue of shares to non-controlling shareholders Share issue costs, net of tax Share based payments At 31 December 2010 Loss for the period Other comprehensive income Total comprehensive income for the period Issue of shares Issue of shares to non-controlling shareholders Share issue costs, net of tax Share based payments Non-controlling interest in subsidiary disposed Transfer within equity At 30 June 2011 Net profit (loss) for the period Other comprehensive income Total comprehensive income for the period Issue of shares to non-controlling shareholders Share issue costs, net of tax Share based payments Non-controlling interest in subsidiary disposed Other At 31 December 2011	21,650,983 (6,776,590) 2,021,193 - 5,485,398 22,380,984 818,304 23,199,288 - (248,557) - - - (248,557) (109,666) (358,223) - - - 10,407,743 - 10,407,743 - 10,407,743
	- (248,557) - 10,407,743 - 10,159,186 (109,666) 10,049,520 - - - - 2,251,454 2,251,454 2,748,546 5,000,000 - - - - (448,541) (448,541) - (448,541) - - 1,874,679 - - 1,874,679 - 1,874,679
	21,650,983 (7,025,147) 3,895,872 10,407,743 7,288,311 36,217,762 3,457,184 39,674,946
	- (3,746,805) - - - (3,746,805) (695,240) (4,442,045) - - - (6,591,927) - (6,591,927) - (6,591,927)
	- (3,746,805) - (6,591,927) - (10,338,732) (695,240) (11,033,972) 210,000 - - - - 210,000 - 210,000 - - - - 8,506,621 8,506,621 7,493,844 16,000,465 - - - - (274,087) (274,087) - (274,087) 25,000 - 1,848,700 - - 1,873,700 - 1,873,700 - - - - - - (378,133) (378,133) - 452,547 (452,547) - - - - -
	21,885,983 (10,319,405) 5,292,025 3,815,816 15,520,845 36,195,264 9,877,655 46,072,919
	- (4,399,376) - - - (4,399,376) (200,739) (4,600,115) - - - (2,131,447) - (2,131,447) - (2,131,447)
	- (4,399,376) - (2,131,447) - (6,530,823) (200,739) (6,731,562) - - - - 87,126 87,126 712,874 800,000 - - - - (50,818) (50,818) - (50,818) - - 7,091 - - 7,091 - 7,091 - - - - - - (3,206,294) (3,206,294) - (17,666) - - 17,666 - - -
	21,885,983 (14,736,447) 5,299,116 1,684,369 15,574,819 29,707,840 7,183,496 36,891,336

The consolidated statement of changes in equity should be read in conjunction with the notes to the financial statements.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

NOTE 1 Summary of Significant Accounting Policies

Corporate information

The financial report of DGR Global Limited (the “Group”) for the half year ended 31 December 2011 was authorised for issue in accordance with a resolution of the directors on 15 March 2012. DGR Global Limited is a public company limited by shares that is incorporated and domiciled in Australia.

Basis of preparation of half-year financial statements

This general purpose financial report for the half-year ended 31 December 2011 has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

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 consolidated entity as the full financial report.

It is recommended that the half-year financial report be read in conjunction with the annual report for the year ended 30 June 2011 and considered together with any public announcement made by DGR Global Limited during the half-year ended 31 December 2011 in accordance with the continuous disclosure obligations of the ASX listing rules.

The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Going concern

The half-year report has been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and discharge of liabilities in the ordinary course of business. The ability of the Group to continue to adopt the going concern assumption will depend upon a number of matters including the subsequent successful raisings in the future of necessary funding, successful closure of several capital raisings in its project specific subsidiary companies during the coming 12 months in the furtherance of its corporate model and the successful exploration and subsequent exploitation of the Group’s tenements. In the absence of these matters being successful, there exists a material uncertainty that may cast significant doubt on the entity’s ability to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the ordinary course of business.

Comparatives

When required by Accounting Standards, comparatives have been adjusted to conform to changes in presentation for the current half-year.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

	6 Months to 31 December 2011 6 Months to 31 December 2010
	$ $
2. Profit / (Loss) Profit (loss) before income tax has been determined after: Revenue Interest Management fees Total revenue Other income Gain on deconsolidation of AusNiCo Limited Gain on sale of investments Realised gain on disposal of available for sale financial reserve Other income Total other income Other expenses - Impairment of investment in associate - Loss on deemed disposal of investment in associate 3. Income Tax (a) Income tax (benefit)/expense Current tax Deferred tax Recoupment of prior year tax losses Deferred tax (benefit)/expense included in income tax (benefit)/expense comprises: Decrease/(increase) in deferred tax assets (Decrease)/increase in deferred tax liabilities (b) Numerical reconciliation of income tax payable to prima facie tax payable Prima facie tax expense on profit (loss) before income tax at 30% (2010: 30%) Add tax effect of: Share based payments Under-provision in prior years Share issue costs recognised in equity Utilisation of tax losses Other timing differences Less tax effect of: Recoupment of prior year tax losses (c) Tax (benefit)/expense relating to items of other comprehensive income Available for sale financial assets	305,546 123,095 1,067,223 279,021
	1,372,769 402,116
	213,937 - 98,863 196,776 100,534 - 2,281 -
	415,615 196,776
	(1,316,007) - - (248,446) - - 998,803 (409,646) - (3,244,263)
	998,803 (3,653,909)
	3,033,924 (1,036,902) (2,035,121) 627,256
	998,803 (409,646)
	(1,080,393) (1,203,640) 2,127 484,104 - 110,108 57,263 134,553 2,019,806 - - 65,229
	998,803 (409,646) - (3,244,263)
	998,803 (3,653,909)
	(913,248) 3,953,833
	(913,248) 3,953,833

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

	31 December 2011 30 June 2011 $ $ 4,048,604 6,152,565 562,404 579,103 4,611,008 6,731,668 2,658,620 3,442,907 2,730,994 2,815,035 281,288 1,448,081 5,670,902 7,706,023 (1,059,894) (974,335) 19,506,131 11,945,713 5,851,839 3,583,714 6 Months to 31 December 2011 6 Months to 31 December 2010 $ $ Earnings per Share. (1.4) (0.0) (1.4) (0.0) (4,339,376) (248,557) Number Number 324,202,760 322,202,760	31 December 2011 30 June 2011 $ $ 4,048,604 6,152,565 562,404 579,103 4,611,008 6,731,668 2,658,620 3,442,907 2,730,994 2,815,035 281,288 1,448,081 5,670,902 7,706,023 (1,059,894) (974,335) 19,506,131 11,945,713 5,851,839 3,583,714 6 Months to 31 December 2011 6 Months to 31 December 2010 $ $ Earnings per Share. (1.4) (0.0) (1.4) (0.0) (4,339,376) (248,557) Number Number 324,202,760 322,202,760
3. Income Tax (continued) (d) Deferred tax assets/(liabilities) Deferred tax assets recognized Unused tax losses Deductible temporary differences Deferred tax liabilities recognized Exploration and evaluation assets Investments accounted for using the equity method Available for sale financial assets Net deferred tax asset/(liability) Deferred tax assets not recognized Unused tax losses Tax benefit at 30% (30 June 2010: 30%)
4. Earnings Per Share Calculation of basic and diluted earnings per share is in accordance with AASB 133 Earnings in cents per ordinary share: Basic earnings (loss) per share - cents Diluted earnings (loss) per share - cents Net profit (loss) used in calculating basic and diluted earning per share Weighted average number of ordinary share used in the calculation of basic earnings per share
		324,202,760 322,202,760

The options are considered non-dilutive as they were out of the money. Options may become dilutive in the future.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

	31 December 2011	30 June 2011
	$	$
5. Available-for-sale Financial Assets
Balance at beginning of reporting period	9,531,766	3,623,585
Additions	2,250,000	457,015
Disposals at fair value	(86,711)	-
Fair value adjustments through other comprehensive income	(3,044,695)	5,451,166
Balance at end of reporting period	8,650,360	9,531,766

Available-for-sale financial assets comprises of an investment in the ordinary issued capital of Solomon Gold plc, a company listed on the London Stock Exchange Alternative Investment Market, an investment in the ordinary issued capital of Lions Gate Metals Inc, a company listed on the Toronto Stock Exchange and an investment in the ordinary issued capital of Lakes Oil NL, a company listed on the Australian Securities Exchange.

6. Investments Accounted for Using the Equity Method
Balance at beginning of reporting period	11,088,680	8,500,000
Fair value of investment on initial recognition (note 9)	2,988,825	5,410,553
Additional investments	46,325	300,000
Disposal of investments	(117,792)	-
Share of associates losses after income tax	(692,435)	(906,503)
Impairment	(1,316,007)	(2,098,280)
Reversal of impairment	-	131,356
Loss on deemed disposal	-	(248,446)
Balance at end of reporting period	11,997,596	11,088,680

The fair value of investment on initial recognition was the fair value of the investment retained in AusNiCo Limited at the date the Company lost control of the former subsidiary. In accordance with Accounting Standard AASB 127, this fair value is regarded as the cost on initial recognition of the investment in associate.

Impairment relates to the investments in Navaho Gold Limited and AusNiCo Limited. On initial recognition the share price of Navaho Gold Limited was $0.20 and the share price of AusNiCo Limited was $0.05. At 31 December 2011 the share price had fallen to $0.08 and $0.04, respectively, and the value of the investment adjusted to reflect the fair value.

7. Commitments, Contingent Liabilities and Contingent Assets

Future Exploration Commitments

The Group is expected to have certain obligations to expend minimum amounts on exploration in tenement areas. These obligations may be varied from time to time and are expected to be fulfilled in the normal course of operations of the Group. The expected commitments to be undertaken are as follows:

Less than 12 months Between 12 months and 5 years	1,844,985 2,745,996 11,359,938 11,937,983
	13,204,923 14,683,979

To keep the tenements in good standing, work programs should meet certain minimum expenditure requirements. If the minimum expenditure requirements are not met, the Group has the option to negotiate new terms or relinquish the tenements. The Group also has the ability to meet expenditure requirements by joint venture or farm-in agreements.

There are no other significant changes to commitments disclosed in the most recent annual financial report.

Contingent Liabilities and Contingent Assets

There have been no significant changes in contingent liabilities or contingent assets since 30 June 2011.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

8. Segment Reporting

The group reports information to the board of directors along company lines. That is, the financial position of DGR Global Limited and each of its subsidiary companies is reported discreetly, together with an aggregated group total. Accordingly, each company within the group that meets or exceeds the relevant threshold tests is separately disclosed below. The financial information of the subsidiaries that do not exceed the thresholds and are therefore not reported separately, are aggregated as Other Subsidiaries.

31 December 2011	DGR Global	AusNiCo	Armour Energy	Archer Resources	Other	Total
	$	$	$	$	$	$
(i) Segment performance
Revenue and other income
External revenue and other income	1,270,567	12,944	276,358	14,380	198	1,574,447
Inter-segment revenue and other income	553,153	-	-	-	-	553,153
Total segment revenue and other income	1,823,720	12,944	276,358	14,380	198	2,127,600
Reconciliation of segment revenue and
other income to group revenue and other
income
Gain on deconsolidation of AusNiCo Limited						213,937
Elimination of inter-segment other income						(553,153)
Total group revenue and other income						1,788,384
Segment net loss before tax	(904,715)	(167,731)	(597,402)	(275,573)	(414,539)	(2,359,960)
Reconciliation of segment result to group
netprofit / loss before tax
Elimination of inter-segment other income						553,153
Share of losses of associates						(692,435)
Impairment of investment in associate						(1,316,007)
Gain on deconsolidation of AusNiCo Limited						213,937
Net loss before tax						(3,601,312)
Income tax expense						(998,803)
Loss for the period						(4,600,115)

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

8. Segment Reporting (continued)

31 December 2011	DGR Global	AusNiCo		Armour Energy	Archer Resources	Other	Total
	$	$		$	$	$	$
(ii) Segment assets
Segment assets	19,608,310		-	13,687,469	5,300,498	2,666,906	40,906,684
Reconciliation of segment assets to
group assets
Inter-segment eliminations							(1,006,070)
Total group assets							39,900,614

31 December 2010	DGR Global $	AusNiCo $	Other $	Total $
(i) Segment performance
Revenue and other income
External revenue and other income	561,341	34,771	2,780	598,892
Inter-segment revenue and other income	360,114	-	-	360,114
Total segment revenue and other income	921,455	34,771	2,780	959,006
Reconciliation of segment revenue and
other income to group revenue and
other income
Elimination of inter-segment revenue
and other income				(360,114)
Total group revenue and other income				598,892
Segment net loss before tax	(1,601,554)	(598,376)	(1,372,452)	(3,572,382)
Reconciliation of segment result to
group netprofit / loss before tax				360,114
Share of losses of associates				(551,418)
Loss on deemed disposal of investment
in associate				(248,446)
Net loss before tax				(4,012,132)
Income tax benefit				3,653,909
Loss for the period				(358,223)

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

8. Segment Reporting (continued)

30 June 2011	DGR Global	AusNiCo	Armour Energy	Archer Resources	Other	Total
	$	$	$	$	$	$
(ii) Segment assets
Segment assets	35,677,721	6,032,162	13,101,153	5,529,356	2,956,603	63,296,995
Reconciliation of segment assets to
group assets
Inter-segment eliminations						(13,923,929)
Total group assets						49,373,066

9. Disposal of Subsidiary

During the half-year, AusNiCo Limited allotted and issued 31,000,000 ordinary shares pursuant to a private placement and share purchase plan. As a result, DGR Global Limited’s holding reduced to 41.5% and control was lost.

	$
Fair Value of retained investment in AusNiCo Limited at the date of disposal Assets and liabilities disposed: Cash and cash equivalents Other current assets Exploration and evaluation assets Property, plant and equipment Other non-current assets Trade and other payables Interest bearing liabilities Non-controlling interests Net assets disposed Net gain on disposal Reconciliation of cash: Cash disposed	2,988,825 1,291,233 34,859 4,997,261 41,399 135,402 (486,885) (32,087) (3,206,294 )
	2,774,888
	213,937
	1,291,233

DGR Global Limited financial report for the half-year ended 31 December 2011

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2011

10. Events After Balance Sheet Date

DGR Global Limited

DGR Global sold 1,218,973 Mt Isa Metals Limited shares and 1,200,000 Solomon Gold plc shares during January 2012. This resulted in DGR Global’s shareholding in Mt Isa Metals Limited being reduced to 50,000,000 ordinary shares and its shareholding in Solomon Gold plc being reduced to 33,274,477 ordinary shares.

Armour Energy Limited

Armour Energy Limited (“Armour”) lodged a Prospectus with the Australian Securities and Investment Commission on 13 March 2012 in connection with the IPO of its shares on the Australian Securities Exchange (ASX). Armour is seeking to raise $75,000,000 via the issue of 150,000,000 ordinary shares at $0.50 per share. The Directors anticipate that the quotation of Armour’s shares to occur by 26 April 2012. Upon quotation of Armour’s shares on the ASX, DGR Global’s shareholding will be reduced to approximately 25.02% resulting in Armour being deconsolidated from the Group and being treated as an investment in Associate in DGR Global’s financial statements. In addition to its 75,050,000 ordinary shares, DGR Global also holds 18,837,500 options in Armour Energy exercisable at $0.50 to 31 August 2014.

IronRidge Resources Limited

On 5 January 2012, IronRidge Resources Limited issued 10,000,000 ordinary shares at $0.05 per share to raise $500,000 in a private placement, which resulted in DGR Global’s holding in IronRidge Resources Limited being reduced from 86.2% to 68.5%.

Other than the above, there have been no other events since 31 December 2011 that impact upon the financial report as at 31 December 2011.

DGR Global Limited financial report for the half-year ended 31 December 2011

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Directors' Declaration

In accordance with a resolution of the directors of DGR Global Limited, I state that:

In the opinion of the directors:

1. The attached financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001 including:

2. (a) Giving a true and fair view of the financial position as at 31 December 2011 and the performance for the half-year ended on that date of the consolidated entity; and

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

4. There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

On behalf of the board

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Nicholas Mather Managing Director

Brisbane

Date: 15 March 2012

DGR Global Limited financial report for the half-year ended 31 December 2011

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Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au

Level 18, 300 Queen St Brisbane QLD 4000, GPO Box 457 Brisbane QLD 4001 Australia

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of DGR Global Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of DGR Global Limited, which comprises the consolidated statement of financial position as at 31 December 2011, the consolidated statement of comprehensive income, 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 information, and the directors’ declaration of the consolidated entity comprising the disclosing entity 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 disclosing entity 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 disclosing entity’s financial position as at 31 December 2011 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 DGR Global 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 DGR Global Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

BDO Audit (QLD) Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (QLD) 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.

DGR Global Limited financial report for the half-year ended 31 December 2011

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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 DGR Global 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 2011 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 on Going Concern and Carrying Value of Exploration Expenditure

Without modifying our conclusion, we draw attention to the matters set out in Note 1 in the half-year financial report. The financial report has been prepared on a going concern basis which contemplates the continuity of normal business activities. The ability of the consolidated entity to maintain continuity of normal business activities and to pay its debts as and when they fall due, is dependent upon the successful raising in the future of necessary funding and/or the successful exploration and subsequent exploitation of its areas of interest through sale or development.

These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty which may cast significant doubt about the disclosing entity’s ability to continue as a going concern and therefore, the disclosing entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

BDO Audit (QLD) Pty Ltd

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T J Kendall

Director Brisbane, 15 March 2012

BDO Audit (QLD) Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (QLD) 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.

DGR Global Limited financial report for the half-year ended 31 December 2011

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