DGR GLOBAL LIMITED — Interim / Quarterly Report 2017

Mar 14, 2017

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DGR GLOBAL LIMITED AND CONTROLLED ENTITIES ACN 052 354 837

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2016

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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 27 111 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 Pty Ltd Level 10, 12 Creek 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 2016

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Directors' Report

Your Directors submit the financial report of the consolidated entity for the half-year ended 31 December 2016.

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

The profit after income tax for the half year ended 31 December 2016 was $4,874,777 (31 December 2015: profit of $4,327,956).

DGR Global’s business is resource-project generation and discovery across a range of commodities, including copper, gold, nickel, tin, iron ore, titanium, bauxite, coal, oil and gas. The group focuses on delivering value through discovery of ore bodies 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.

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 and diamond core drilling were undertaken.

Significant activities which occurred during the half-year included:

Albatross Bauxite Pty Ltd (100%)

• Surrender of 2 EPMs following initial exploration results, and grant of one new EPM. The company now holds 4 granted EPMs in south east central Queensland.

Archer Resources Limited (63%)

• Rejuvenation as a zinc-copper-gold company, with fundraising commenced for advancement towards ultimate listing.

• Potential for world class copper gold discoveries at Mt Abbot, Calgoa-Colo and Three Sisters Projects and nickel cobalt copper discoveries at Hawkwood.

• Exploration target defined for the Ban Ban Zinc Project following 3D modelling and reinterpretation of historical drilling data.

Pinnacle Gold Pty Ltd (94%)

• Six (6) EPMs now granted for gold exploration.

• Five of the EPMs are over prospective gold targets situated between the former Black Jack and Mt Leyshon Mines near Charters Towers, Qld.

Coolgarra Minerals Pty Ltd (100%)

• Two (2) granted EPMs and 4 EPM applications for gold, nickel, cobalt and antimony in North Queensland.

Investments

Armour Energy Limited (23.3%) – ASX: AJQ

• Holds highly prospective whole basin oil and gas positions in Northern Territory and North West Qld covering 139,000 km[2] , and a track record of exploration success.

• Acquired the petroleum resources, tenures, and production and transportation infrastructure of the former Origin Energy assets on the Roma Shelf ( Kincora Project ), with production of oil from the Emu Apple well commencing in August[1] . Subsequently acquired the interests of Santos in the Kincora Project[2] .

• Announces a 510% increase in 2C Contingent Resources at the Kincora Project[3] .

• Welcomes M.H. Carnegie as a cornerstone investor in a progressive $40 million capital raising (Converting Notes and Rights issue) to fully develop the Kincora Project[4] .

• Executes initial gas sales agreement with Australian Pacific LPG to underpin restart at Kincora[5] .

• Wholly owned subsidiary Ripple Resources Pty Ltd emerges as a highly prospective lead-zinc explorer with over 20,000 km[2] under application or tenure in Northern Australia.

DGR Global Limited financial report for the half-year ended 31 December 2016

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Directors' Report (Continued)

REVIEW OF OPERATIONS (CONTINUED)

SolGold plc (14.51%) – LSE: SOLG

• Focus on high grade world class copper gold porphyry system at Cascabel in Ecuador. Cascabel is close to the capital and ports, is at low elevation, and has adequate water supplies and access to power.

• Assay results from 20 drill holes to date confirm discovery of large scale, high grade porphyry system at the Alpala Prospect. Further significant long high grade drill intersections were announced to the London Stock Exchange during the last quarter and can be viewed on the LSE or SolGold company website. Hole 12 has returned the longest and highest grade intercepts to date[6] .

• Strong copper gold surface mineralisation discovered at the Aguinaga and Trivino Prospect[7] , with Cascabel’s true potential beginning to emerge with 14 porphyry targets identified to date, seven of which are close to drill ready status[8] .

• Substantial treasury (USD 44 million) built to accelerate drilling and exploration after capital raisings that brought significant new shareholders Maxit Capital (Canada) and Newcrest (10%) on to the register[9] .

• New drilling contracts signed to underpin aggressive four year exploration program. Three rigs now drilling with 4[th] rig due to start in February[10] .

IronRidge Resources Limited (26.15%) – LSE: IRR

• Highly prospective hematite rich iron targets evident in Tchibanga and Belinga Sud licence areas in Gabon – total tenure 2,996 km[2] . Tchibanga is less than 70 km from the port of Mayumba.

• Wholly owned subsidiary Eastern Exploration Pty Ltd discovers high grade Direct Shipping Ore (DSO) bauxite mineralisation at the Monogorilby project in Queensland, Australia and announces JORC compliant inferred maiden resource estimate[11] .

• Initial drilling program at the May Queen gold prospect near Mongorilby confirms historical data and delivers multiple significant gold intersections[12] .

• The right to acquire 60% of Tekton Minerals Pte. Ltd (and holds a Board position) which has exclusive rights to an extensive land package and associated major new gold discovery in Chad , Central Africa[13] .

• Secured highly prospective lithium tenements and rights to acquire historic lithium resource in Ghana , West Africa[14] and added right to acquire highly prospective primary “hard rock” lithium exploration license in Ivory Coast , West Africa[15] .

• Additional highly prospective lithium tenement secured adjacent to lithium tenements already held in Ghana[16] .

• Gains access to highly prospective gold portfolio (six tenements) in Ivory Coast , and adds a further 3 tenements to the package at the end of the quarter[17] .

• 100% owned local subsidiary secures 3 highly prospective lithium pegmatite exploration permits in Ivory Coast[18] .

Dark Horse Resources Limited (13.04%) – ASX: DHR

• Significant advancement of the highly prospective Nirihuau Coal Project in Rio Negro province in Argentina (DHR earning up to 75%).

• Progressing the development of a thermal power station at Nirihuau to supply low-cost base-load power to the Rio Negro region and into the main Argentinian electricity supply network[19] .

• Plans for low cost coal production and sale to local industries within the San Juan province in Argentina ( Marayes Coal Project ).

• Expanded the company Argentinian focus with the acquisition of Oronegro SA, with exclusive rights to explore for lithium and other strategic minerals in San Luis and Cordoba provinces. Subsequently Oronegro enters an exclusive agreement to acquire the Las Tapias Mine, the principal historic spodumene mine in Argentina[20] .

• Completed sale of subsidiary NavGas Pty Ltd (includes 6 PELAs in South Australia and ATP 1183 on the Roma Shelf in Qld.) to Lakes Oil NL (LKO) for shares in LKO to the equivalent of $9.2M. Dark Horse emerges as the holder of over 40% of LKO[21] .

• Enters Exclusive Agreement to acquire 85% of the Los Domos Gold Project in Santa Cruz province, Argentina which hosts a number of world class, multi-million-ounce gold deposits (including Cerro Negro and Cerro Vanguadia)[22] .

Aus Tin Mining Limited (21.77%) – ASX: ANW

• Becomes the second listed tin producer listed on the ASX with resumption of tin production at the Granville Tin Project in Tasmania[23] .

• Maiden JORC resource estimate confirms Taronga as a world class tin project. The details of the resource (79% indicated) can be viewed on the ASX or on the company website.

• Metallurgical flow sheet completed for Taronga pre-feasibility study. Ore described as coarse grained, having simple metallurgy, and highly amenable to pre-concentration.

• Advancement of the Taronga Project with commitment to Stage 1 Development comprising trial mining and pilot plant operations.

• Field work confirms high grade cobalt results from target extension at the Mt Cobalt Project in Qld, and drilling program during the quarter confirms depth extensions of nickel and cobalt mineralisation[24] .

DGR Global Limited financial report for the half-year ended 31 December 2016

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Directors' Report (Continued)

REVIEW OF OPERATIONS (CONTINUED)

Corporate

• Supported associated companies with loans on commercial terms.

• Advancement of new development projects in Australia, Africa and the Americas focused on base metals, gold, bauxite, coal, oil and gas.

Footnotes:

1AJQ ASX Releases 18/7, 21/7, 22/8 and 22/9/16 3AJQ ASX Release 19/7/16

5AJQ ASX Release 22/12/16

7SOLG LSE:AIM Releases 3/11 and 9/12/15

9SOLG LSE:AIM Releases 25/8, 26/9, 13/10 and 17/10/16 11IRR LSE:AIM Releases 15/12/15, 20/7/16 13IRR LSE:AIM Releases 12/8 and 21/9/16 15IRR LSE:AIM Release 13/9/16 17IRR LSE:AIM Releases 24/11/16 and 5/1/17 19DHR ASX Releases 12/1 and 16/9/16 21DHR ASX Releases 3/9, 9/10, 28/11/16, 18/1/17 23ANW ASX Releases 17/8, 19/10 and 21/12/16

2AJQ ASX Release 9/12/16 4AJQ ASX Releases 21/11 and 16/12/16 6SOLG LSE:AIM Release 20/10/15

8SOLG LSE:AIM Release 6/7/16 10SOLG LSE:AIM Releases 8/10 and 22/12/16 12IRR LSE:AIM Releases 20/9, 22/9 and 4/11/16 14IRR LSE:AIM Release 6/9/16 16IRR LSE:AIM Release 20/10/16 18IRR LSE:AIM Release 25/11/16 20DHR ASX Releases 26/7, 15/8 and 5/10/16[22] DHR ASX Releases 22/11 and 16/12/16 24ANW ASX Releases 5/7, 18/8, 17/10, 23/11/16

DGR Global Limited financial report for the half-year ended 31 December 2016

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The current aggregate market value of DGR’s listed assets may be represented as follows:

Investment	Number of Shares	Number of Options	**Market Value# **
		/ Warrants	A$
		(unlisted)
SolGoldplc	207,394,714	-	127,537,746
Dark Horse Resources Ltd	113,543,456	-	908,348
IronRidge Resources Ltd	62,293,334	-	32,428,588
Aus Tin MiningLtd	360,833,715	-	3,608,337
Armour EnergyLtd	75,050,000	-	5,853,900
Total market value of DGR Global’s
listed assets			170,336,919
Total DGR Global shares on issue			562,031,877
Value attributable to each DGR
share			30.31 cents

Market value represents the market quoted price for listed investments at 8 March 2017. No value has been attributable to the options or prospects in development.

EVENTS SUBSEQUENT TO BALANCE SHEET DATE

On 16 January 2017, 2,000,000 ordinary $0.065 shares were issued pursuant to underwriter options being exercised.

On 17 January 2017, 400,000 ordinary $0.065 shares were issued pursuant to ESOP options being exercised.

The Directors are not aware of any other events since 31 December 2016 that impact upon the financial report as at 31 December 2016.

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 2016.

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 2017

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 2012 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 2016

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Tel: +61 7 3237 5999 Level 10, 12 Creek St Fax: +61 7 3221 9227 Brisbane QLD 4000 www.bdo.com.au GPO Box 457 Brisbane QLD 4001 Australia

DECLARATION OF INDEPENDENCE BY D P WRIGHT TO THE DIRECTORS OF DGR GLOBAL LIMITED

As lead auditor for the review of DGR Global Limited for the half-year ended 31 December 2016, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

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

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D P Wright

BDO Audit Pty Ltd

Brisbane, 15 March 2017

BDO Audit 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 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.

DGR Global Limited financial report for the half-year ended 31 December 2016

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Consolidated Statement of Profit or Loss and other Comprehensive Income for the half-year ended 31 December 2016

	Consolidated
Note	6 Months to 31 December 2016 6 Months to 31 December 2015
	$ $
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 profits (losses) of associates 6 Share based payments employment expense Other expenses 2 Profit/ (loss) before income tax Income tax (expense)/benefit 3 Profit / (loss) for the period Other comprehensive income Items that will not be reclassified to profit or loss Net fair value gains (losses) on financial assets at fair value through other comprehensive income Share of associates other comprehensive income Tax effect of net fair value gains (losses) on financial assets at fair value through other comprehensive income 3 Other comprehensive income for the half year, net of tax 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	2,000,697 1,483,497 9,120,718 11,764,877
	11,121,415 13,248,374
	(144,616) (18,528) (252,097) (135) (1,007,900) (1,077,749) (19,288) (18,279) (32,967) (60,113) (647,083) (646,957) (1,818,044) (1,573,777) - (528,651) - (2,899,249)
	7,199,420 6,424,936 (2,324,643) (2,096,980)
	4,874,777 4,327,956
	70,340,855 13,092 345,776 - (21,102,231) (3,928)
	49,584,400 9,164
	54,459,177 4,337,120
	4,932,636 (57,859) 4,330,822 (2,866)
	4,874,777 4,327,956
	54,517,036 (57,859) 4,339,986 (2,866)
	54,459,177 4,337,120
	2016 Cents 2015 Cents
Earnings per share Basic earnings per share 4 Diluted earnings per share 4	0.9 1.0 0.8 1.0

The consolidated statement of profit or loss and other 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 2016

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Consolidated Statement of Financial Position as at 31 December 2016

	Consolidated
	31 December 30 June
	2016 2016
Note	$ $
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets Total Current Assets NON-CURRENT ASSETS Other financial assets 5 Investments accounted for using the equity method 6 Property, plant and equipment Exploration and evaluation assets Loans with related parties 7 Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Other financial liabilities 8 Total Current Liabilities NON-CURRENT LIABILITIES Deferred tax liabilities 3 Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 9 Reserves Accumulated losses Equity attributable to members of the parent entity Non-controlling interests TOTAL EQUITY	712,482 531,101 2,827,819 1,771,036 1,518 11,068 3,541,819 2,313,205 98,142,098 11,972,909 16,974,872 9,340,496 463,256 510,601 5,521,044 5,090,663 4,393,187 18,194,410 125,494,457 45,109,079 129,036,276 47,422,284 819,345 913,419 3,517,909 518,143 4,337,254 1,431,562 24,714,468 1,253,602 633,429 633,429 25,347,897 1,887,031 29,685,151 3,318,593 99,351,125 44,103,691 29,757,081 28,968,824 78,651,822 29,067,422 (9,582,898) (14,515,534) 98,826,005 43,520,712 525,120 582,979 99,351,125 44,103,691

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 2016

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Consolidated Statement of Cash Flows for the half-year ended 31 December 2016

	Consolidated
Note	6 months to 31 December 6 months to 31 December
	2016 2015
	$ $
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 Realised foreign exchange gains Income tax paid Net cash outflow from operating activities 11 CASH FLOWS FROM INVESTING ACTIVITIES Security deposit refunds (payments), net Payments for property, plant and equipment Payments for investments in financial assets at fair value through other comprehensive income Proceeds from the sale of investments in financial assets at fair value through other comprehensive income Payments for investments in convertible notes Payments for exploration and evaluation assets Loans to related parties Net cash (outflow)/inflow 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 Proceeds from borrowings Dividend paid Net cash (outflow)/inflow from financing activities Net increase/(decrease) in cash held Cash at 1 July Cash at 31 December	330,073 495,354 (1,685,466) (1,929,244) 186,959 659,592 (252,097) (135) - 1,823,696 - (2,196,264)
	(1,420,531) (1,147,001)
	- (6,500) (11,943) (32,845) - (559,743) - 11,159 (367,500) - (537,185) (443,348) (1,303,475) (17,772,003)
	(2,220,103) (18,803,280)
	830,000 4,762,192 - 165,000 (7,751) (113,776) 2,999,766 - - (813,401)
	3,822,015 4,000,015
	181,381 (15,950,266) 531,101 19,636,608
	712,482 3,686,342

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 2016

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Consolidated Statement of Changes in Equity for the half-year ended 31 December 2016

	Issued Capital Accumulated Losses	Share Based Payment Reserve	Financial Assets Reserve	Change in Proportionate Interest Reserve	Profit Reserve	Total Non- controlling Interests Total Equity
	$ $	$	$	$	$	$ $ $
At 1 July 2015 Net profit (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 Change in proportionate interest Share based payments At 31 December 2015 Net profit (loss) for the period Other comprehensive income Total comprehensive income for the period Issue of shares Issue of shares to non-controlling shareholders Change in proportionate interest Share issue costs, net of tax Share based payments Transfers of reserves on disposal of investments At 30 June 2016 Net profit (loss) for the period Other comprehensive income Total comprehensive income for the period Issue of shares Share issue costs, net of tax At 31 December 2016	24,057,609 (15,069,116) - 4,330,822 - -	6,299,134 - -	(2,622,497) - 9,164	18,524,938 -	5,407,201 -	36,597,269 (89,479) 36,507,790 4,330,822 (2,866) 4,327,956 9,164 - 9,164
	- 4,330,822 5,132,900 - - - (316,693) - - - - -	- - - 65,958 - 528,651	9,164 - - - - -	- - 107,128 - (645,931) -	- - - - - -	4,339,986 (2,866) 4,337,120 5,132,900 - 5,132,900 107,128 57,872 165,000 (250,735) (250,735) (645,931) 645,931 - 528,651 - 528,651
	28,873,816 (10,738,294)	6,893,743	(2,613,333)	17,986,135	5,407,201	45,809,268 611,458 46,420,726
	- (3,619,649) - -	- -	- 1,289,499	- -	- -	(3,619,649) (92,015) (3,711,664) 1,289,499 - 1,289,499
	- (3,614,649 - - - - - - 95,008 - - - - (157,591)	- - - - - 5,122 -	1,289,499 - - - - - 157,591	- - - (58,536) - - -	- - - - - - -	(2,330,150) (92,015) (2,422,165) - - - - 5,000 5,000 (58,536) 58,536 - 95,008 - 95,008 5,122 - 5,122 - - -
	28,968,824 (14,515,534)	6,898,865	(1,166,243)	17,927,599	5,407,201	43,520,712 582,979 44,103,691
	- 4,932,636 - -	- -	- 49,584,400	- -	- -	4,932,636 (57,859) 4,874,777 49,584,400 - 49,584,400
	- 4,932,636 830,000 - (41,743) -	- - -	49,584,400 - -	- - -	- - -	54,517,036 (57,859) 54,459,177 830,000 - 830,000 (41,743) - (41,743)
	29,757,081 (9,582,898)	6,898,865	48,418,157	17,927,599	5,407,201	98,826,005 525,120 99,351,125

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 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

1. Summary of Significant Accounting Policies

Corporate information

The financial report of DGR Global Limited and its controlled entities (the “Group”) for the half year ended 31 December 2016 was authorised for issue in accordance with a resolution of the Directors on 15 March 2017. 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 2016 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 2016 and considered together with any public announcement made by DGR Global Limited during the half-year ended 31 December 2016 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, with the exception of convertible note receivables:

Financial assets at fair value through profit or loss

Investments in financial assets with embedded derivatives, such as convertible note receivables, as recognised at fair value through profit or loss. Financial assets at fair value through profit or loss are subsequently carried at fair value. Gains or losses arising from changes in the fair value are recognised in profit or loss within other income or other expenses. Interest income from financial assets at fair value through profit or loss is included in profit or loss.

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.

For the period ended 31 December 2016 the group generated a consolidated profit of $4,874,777 and incurred operating cash outflows of $1,420,531. As at 31 December 2016 the group had cash and cash equivalents of $712,482, net current liabilities of $795,435 and net assets of $99,351,125.

The ability of the Group to continue as a going concern is dependent upon the Group being able to manage its liquidity requirements by taking some or all of the following actions:

1. Raising additional capital or securing other forms of financing, as and when necessary to meet the levels of expenditure required for the Group and to meet the Group’s working capital requirements;

2. Collecting the loans to related parties or converting a proportion of the loans to equity;

3. Realisation of listed shares;

4. Successful exploration and subsequent exploitation of the Group’s tenements and investments;

5. Reducing its working capital expenditure; and

6. Disposing of non-core assets.

These conditions give rise to a material uncertainty which may cast significant doubt over the Groups ability to continue as a going concern.

Notwithstanding the above, the Directors consider it appropriate to prepare the financial statements on a going concern basis after having regard to the Group’s ability to sell its interest in its listed shares to support the Group’s short term funding needs.

Should the Group be unable to continue as a going concern, it may be required to realise its assets and liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to the amount and classification of liabilities that might be required should the Group not be able to achieve the matters set out above and thus be able to continue as a going concern.

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 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

2. Profit / (Loss) Profit (loss) before income tax has been determined after: Revenue Interest Management fees Total revenue Other income Foreign exchange gains Recycling of available for sale reserve through profit or loss Reversal of impairment of investment in associates Gain on sale of land Other income Total other income Other expenses - Impairment of investment in associate 3. Income Tax (a) Components of tax (benefit)/expense in profit or loss comprise: Current tax Deferred tax (b) Numerical reconciliation of income tax payable to prima facie tax payable Prima facie tax expense on profit (loss) before income tax at 30% (2015: 30%) Add tax effect of: Permanent differences Derecognise tax losses Other (c) Tax (benefit)/expense relating to items of other comprehensive income Available for sale financial assets (d) Amounts recognised directly in equity Net deferred tax – debited (credited) directly to equity	6 Months to 31 December 2016 6 Months to 31 December 2015
	$ $
	1,202,697 659,592 798,000 823,905
	2,000,697 1,483,497
	- 1,253,843 - (15,802) 9,106,644 10,522,536 10,000 - 4,074 4,300
	9,120,718 11,764,877
	- (2,899,249)
	6 Months to 31 December 2016 6 Months to 31 December 2015
	$ $
	- 270,407 2,324,643 1,826,573
	2,324,643 2,096,980
	2,159,826 1,927,481 (71) 163,370 47,122 2,522 117,766 3,607
	2,324,643 2,096,980
	21,102,231 3,928
	21,102,231 3,928
	33,992 -
	33,992 -

DGR Global Limited financial report for the half-year ended 31 December 2016

Page 13

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

3. Income Tax (continued)

(e) Deferred tax assets/(liabilities) Deferred tax asset Carried forward tax losses Accruals / provisions Capital raising costs expensed Investment in associates Investments at fair value through other comprehensive income Deferred tax liability Property, plant and equipment Investments at fair value through other comprehensive income Related party loans Investment in associates Exploration and evaluation assets Net deferred tax asset/(liability) Deferred tax assets not recognised Unused tax losses Temporary differences Tax benefit at 30% (30 June 2016: 30%)	31 December 2016 30 June 2016
	$ $
	1,837,349 1,688,228 48,617 66,006 83,964 139,454 229,397 287,567 174,389 789,758
	2,373,716 2,971,013 (67,599) (67,599) (20,440,635) (1,050) (248,634) (214,473) (4,675,004) (2,394,836) (1,656,312) (1,546,657)
	(27,088,184) (4,224,615)
	(24,714,468) (1,253,602)
	1,604,423 1,447,350 67,848 67,848
	501,681 454,560

In order to recoup carried forward losses in future periods, either the Continuity of Ownership Test (COT) or Same Business Test must be passed. The majority of losses are carried forward at 31 December 2016 under COT.

Deferred tax assets which have not been recognised as an asset, will only be obtained if:

• (i) the Company derives future assessable income of a nature and of an amount sufficient to enable the losses to be realised;

• (ii) the Company continues to comply with the conditions for deductibility imposed by the law; and

• (iii) no changes in tax legislation adversely affect the Company in realising the losses.

	6 Months	to	6 Months to
	31 December		31 December
	2016		2015
	$		$
4. Earnings Per Share
Calculation of basic and diluted earnings per share is in accordance with AASB 133_Earnings per_		Share.
Earnings in cents per ordinary share:
Basic earnings (loss) per share – cents		0.9	1.0
Diluted earnings (loss) per share – cents		0.8	1.0
Net profit (loss) used in calculating basic and diluted earnings per share	4,932,636		4,330,822
	Number		Number
Weighted average number of ordinary shares used in the calculation of
Basic earnings per share	553,074,500		442,205,241
Diluted earnings per share	598,624,500		442,205,241

The 9.5 million options out of the money are considered non-dilutive. These out of the money options may become dilutive in the future.

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

5. Other Financial Assets

5. Other Financial Assets
Financial assets at fair value through other comprehensive income Cash on deposit held as security Security bonds Convertible notes	31 December 2016 $ 30 June 2016 $
	87,191,674 10,789,985 314,000 314,000 868,924 868,924 9,767,500 -
	98,142,098 11,972,909
	10,789,985 5,296,268 - 1,009,890 6,060,834 2,833,663 - (766,575) 70,340,855 2,416,739 87,191,674 10,789,985
Financial assets at fair value through other comprehensive income
Balance at beginning of reporting period
Additions - cash
Additions – loan/debtor conversions
Disposal of financial assets at fair value through other comprehensive income
Fair Value adjustment through other comprehensive income
Balance at end of reporting period

Financial assets at fair value through other comprehensive income comprise an investment in the ordinary issued capital of SolGold plc, listed on the London Stock Exchanges Alternative Investment Market (“AIM”), an investment in the ordinary issued capital of Lions Gate Metals Inc., listed on the Toronto Stock Exchange (“TSX”) and an investment in the ordinary issued capital of Aus Tin Mining Ltd a company listed on the Australian Securities Exchange

Cash on deposit held as security

Cash on deposit held as security is held in a term deposit account restricted under a bond with the Department of Natural Resources and Mining as security for rehabilitation works required.

Security bonds

Security bonds are held with the Department of Natural Resources and Mining as security for rehabilitation works required.

Convertible notes

During the period ended 31 December 2016 DGR Global subscribed for $9.4 million worth of Convertible Notes in Armour Energy, in part repayment of the Bridging Finance Facility, the key terms of the notes are as follows:

• Issue Price: Face value of $0.11 per Convertible Note

• Interest Rate: 15% per annum

• Interest Payments: Interest paid half yearly in arrears and the interest may be paid in certain circumstances at Armour’s election by the issue of further Convertible Notes

• Maturity Date: 30 September 2019

• Conversion Terms: Convertible at any time at the Convertible Note holder’s election into one ordinary share in Armour subject to usual adjustment mechanisms in certain circumstances.

• Additionally, DGR subscribed for $367,500 worth of Convertible Notes in Lakes Oil. The key terms of the notes are as follows:  Issue Price: Face value of $10 per Convertible Note

• Interest Rate: 10%

• Interest Payments: Interest is payable half yearly at the rate of 50 cents per Note

• Maturity Date: 31 May 2018

• Conversion Terms: Each holder of Notes can elect to convert the Notes early by notice to Lakes Oil with effect from 30 November 2016, 31 May 2017 or 30 November 2017 (Early Conversion Dates).

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

6. Investments Accounted for Using the Equity Method		31 December 2016 $		30 June 2016 $
Balance at beginning of reporting period		9,340,496		8,884,802
Additional investment - shares		-		-
Share of associates profits (losses) after income tax		(1,818,044)		(5,236,593)
Share of associates other comprehensive income		345,776		(493,967)
Reversal of impairment		9,106,644		6,186,254
Balance at end of reporting period		16,974,872		9,340,496

Reversal of impairment relates to the investments in Dark Horse Resources Ltd, IronRidge Resources Ltd and Armour Energy Ltd. At 30 June 2016 the share price of Dark Horse Resources Ltd, IronRidge Resources Ltd and Armour Energy Ltd was $0.005, $0.075 and $0.055, respectively. At 31 December 2016 the share price of Dark Horse Resources Ltd, IronRidge Resources Ltd and Armour Energy Ltd had risen to $0.009, $0.232 and $0.076, respectively. On this basis the investments in the associates have been written up to the lower of fair value, less costs to sell or the equity accounted value.

7. Loans with related parties

Armour Energy Ltd1 Dark Horse Resources Ltd SolGold plc2 Others	Opening balance at 30 June 2016 $ Advances - cash $ Repayments – cash $ Equity conversions $ Convertible note conversions $ Closing balance at 31 December 2016 $
	12,872,618 380,139 - - (9,400,000) 3,852,757 540,430 - - - - 540,430 4,776,404 923,596 - (5,700,000) - - 4,958 - (4,958) - - -
	18,194,410 1,303,735 (4,958) (5,700,000) (9,400,000) 4,393,187

1 On 16 December 2016, DGR Global subscribed for $9.4 million worth of Convertible Notes in Armour Energy, in part repayment of the Bridging Finance Facility

2On 26 August 2016, DGR Global converted SolGold plc loan facility in full to ordinary shares in SolGold plc. DGR was granted 54,862,500 shares at an issue price of $0.1039 per share.

8. Other Financial Liabilities

Borrowings	31 December 2016 $ 30 June 2016 $
	3,517,909 518,143
	3,517,909 518,143

On 30 June 2016, DGR Global Ltd assumed liability for a loan of CAD$505,000 owing by SolGold plc to Tenstar Trading Ltd. Interest is payable at the rate of 6% per annum, where principal and accrued interest is payable in full together on demand at any time after 30 June 2016.

On 29 July 2016, DGR Global Ltd received a loan of CAD$3,000,000 from two international financiers for a term of six months. Interest is payable at the rate of 20% per annum every 30 days after the date of the advance. The loan is secured by SolGold plc shares held by DGR Global Ltd. The extension of the loan is currently being renegotiated.

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

9. Issued Capital

9. Issued Capital
559,631,877 (30 June 2016: 550,881,877) fully paid ordinary shares Share issue costs	31 December 2016 $ 30 June 2016 $
	31,216,191 30,386,191 (1,459,110) (1,417,367)
	29,757,081 28,968,824

Ordinary shares participate in dividends and the proceeds on winding up the Company. At shareholder meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on show of hands.

There is no par value or authorised capital.

(a) Ordinary Shares	31 December	30 June	31 December	30 June
	2016	2016	2016	2016
	Number	Number	$	$
Opening balance	550,881,877	414,246,224	30,386,191	25,253,291
31 July 20151	-	7,407,167	-	222,215
12 November 20152	-	35,268,795	-	1,340,215
7 December 20153	-	93,959,691	-	3,570,470
24 October 20164	2,000,000	-	130,000	-
2 November 20165	2,000,000	-	130,000	-
30 November 20166	4,750,000	-	570,000	-
Closing balance	559,631,877	550,881,877	31,216,191	30,386,191

1 On 31 July 2015, 7,407,167 ordinary $0.03 shares were issued pursuant to Dividend Reinvestment Plan offered under the Dividend announced to the market on 26 June 2015.

2 On 12 November 2015, 35,268,795 ordinary $0.038 shares were issued pursuant to the institutional offer under the Company’s Rights issue.

3 On 7 December 2015, a total of 93,959,691 ordinary $0.038 shares were issued. 2,665,485 were issued pursuant to the Company’s Rights issue and 23,815,349 were issued pursuant to a private placement.

4 On 24 October 2016, 2,000,000 ordinary $0.065 shares were issued pursuant to the exercise of ESOP options.

5 On 2 November 2016, 2,000,000 ordinary $0.065 shares were issued pursuant to the exercise of underwriter options.

6 On 30 November 2016, 4,750,000 ordinary $0.12 shares were issued pursuant to the exercise of director options.

(b) Options

As at 31 December 2016, there were 57,450,000 unissued ordinary shares of DGR Global Ltd under option, held as follows:

Options on Issue in DGR Global Ltd	Number	Exercise	Expiry
		Price
Unlisted employee options	9,500,000	$0.12	29/05/17
Unlisted employee options	21,000,000	$0.065	30/09/17
Unlisted Director options	22,950,000	$0.065	25/11/17
Unlisted Underwritingoptions	4,000,000	$0.065	12/12/17

10. Contingent Liabilities and Contingent Assets

There are no contingent liabilities or contingent assets at 31 December 2016.

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

10. 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 2016	DGR Global	Archer Resources	Other	Total
	$	$	$	$
(i) Segment performance
Revenue
External revenue	2,000,697	-	-	2,000,697
Inter-segment revenue	-	-	-	-
Total segment revenue	2,000,697	-	-	2,000,697
Reconciliation of segment revenue to group revenue
Other income				14,074
Reversal of impairment of investment in associates				9,106,644
Total group revenue				11,121,415
Segment net profit (loss) before tax	67,925	(156,706)	(399)	(89,180)
Reconciliation of segment result to group net profit / loss before tax
Share of losses of associates				(1,818,044)
Reversal of impairment of investment in associate				9,106,644
Net profit before tax				7,199,420

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

10. Segment Reporting (continued)

31 December 2015	DGR Global	Archer Resources	Other	Total
	$	$	$	$
(i) Segment performance
Revenue
External revenue	1,483,253	244	-	1,483,497
Inter-segment revenue	11,934	-	-	11,934
Total segment revenue	1,495,187	244	-	1,495,431
Reconciliation of segment revenue to group revenue
Elimination of inter-segment revenue				(11,934)
Foreign exchange gains				1,253,843
Other income				4,300
Recycling adjustment on available for sale assets				(15,802)
Reversal of impairment of investment in associates				10,522,536
Total group revenue				13,248,374
Segment net profit (loss) before tax	(840,371)	(8,359)	(18,186)	(866,916)
Reconciliation of segment result to group net profit / loss before tax
Share of losses of associates				(1,573,777)
Reversal of impairment of investment in associate				10,522,536
Impairment of investment in associate				(2,899,249)
Foreign exchange gains				1,253,844
Other income				4,300
Recycling adjustment on available for sale assets				(15,802)
Net profit before tax				6,424,936

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

10. Segment Reporting (continued)

(ii) Segment assets
31 December 2016	DGR Global	Archer Resources	Other	Total
	$	$	$	$
Segment assets	131,539,204	2,195,973	518,595	134,253,772
Reconciliation of segment assets to group assets
Inter-segment receivables and investments eliminations				(5,217,496)
Total group assets				129,036,276
Segment asset additions for the period
- Exploration and evaluation assets	189,211	122,698	263,087	574,996
- Property, plant and equipment	11,943	-	-	11,943
- Investments in financial assets through other comprehensive income	6,060,834	-	-	6,060,834
30 June 2016	DGR Global	Archer Resources	Other	Total
	$	$	$	$
Segment assets	50,267,093	1,761,933	258,684	52,287,710
Reconciliation of segment assets to group assets
Inter-segment receivables and investments eliminations				(4,685,426)
Total group assets				47,422,284
Segment asset additions for the period
- Exploration and evaluation assets	356,904	237,392	146,443	740,739
- Property, plant and equipment	36,614	-	-	36,614
- Investments in financial assets through other comprehensive income	3,843,553	-	-	3,843,553

DGR Global Limited financial report for the half-year ended 31 December 2016

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Notes to the Consolidated Financial Statements for the half-year ended 31 December 2016

11. Cash flow information

Profit/(loss) after tax Depreciation Exploration and evaluation assets written off Share based payments expense Share of associates losses Reversal of impairment of investment in associate Changes in operating assets and liabilities, net of the effects of purchase and disposal of subsidiaries: -(Increase)/decrease in trade and other receivables -(Increase)/decrease in other assets -Increase/(decrease) in deferred tax liabilities -Increase/(decrease) in trade and other payables Non-cash investing and financing activities Conversion of loans with related parties for convertible notes Conversion of loans with related parties for shares Conversion of debtors for shares	31 December 2016 $ 31 December 2015 $
	4,874,777 4,327,955 19,288 18,279 144,616 18,528 - 528,651 1,818,044 1,582,452 (9,106,644) (7,631,961) (1,053,499) (8,894) 9,544 46,234 2,358,635 1,826,573 (485,292) (1,854,817)
	(1,420,531) (1,147,001)
	(9,400,000) - (5,700,000) - (360,834) -

12. Financial Instruments

The fair values of financial assets and financial liabilities approximate their carrying amounts principally due to their short-term nature or the fact that they are measured and recognised at fair value.

To provide an indication about the reliability of inputs used in determining fair value, the group classifies its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

The following table presents the Group’s financial assets and liabilities measured and recognised at fair value at 31 December 2016 and 30 June 2016 on a recurring basis.

	Level 1	Level 2		Level 3	Total
	$	$		$	$
31 December 2016
Financial assets at fair value through OCI	87,191,674		-	-	87,191,674
Convertible notes	-		-	9,767,500	9,767,500
Investments accounted for using the equity method	5,703,800		-	-	5,703,800
30 June 2016
Financial assets at fair value through OCI	10,789,985		-	-	10,789,985
Investments accounted for usingthe equitymethod	9,340,496		-	-	9,340,496

Level 1: The fair value of financial instruments traded in active markets is based on quoted (unadjusted) market prices at the end of the reporting period. The quoted marked price used for available for sale financial asset held by the Group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on an observable market data, the instrument is included in level 3.

There are $11,271,072 amount of investments accounted for using the equity method that are carried at amortised cost under the equity accounting method. These investments were previously at fair value under level 1. Following an increase in the market price of the shares previous impairments have been reversed and the carrying value represents the maximum permitted under equity accounting. If these investments were continued to be carried at fair value, the value would be $15,472,946.

The convertible notes in level 3 are valued based using the present value of the expected cash inflows from the host debt and the value of the conversion option using an option pricing model. These valuation techniques use unobservable inputs. Specifically the option pricing model that incorporates the share price at the balance date, exercise price, life, volatility and risk free rate. An increase in the share price, life, volatility or risk free rate will result in an increase in the fair value of the asset. The notes were issued on 15 December 2016 and there was no material movement in fair value at 31 December 2016.

DGR Global Limited financial report for the half-year ended 31 December 2015

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12. Events After Balance Sheet Date

On 16 January 2016, 2,000,000 ordinary $0.065 shares were issued pursuant to underwriter options being exercised. On 17 January 2017, 400,000 ordinary $0.065 shares were issued pursuant to ESOP options being exercised.

The Directors are not aware of any other events since 31 December 2016 that impact upon the financial report as at 31 December 2016.

DGR Global Limited financial report for the half-year ended 31 December 2015

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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 report 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 2016 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 2017

DGR Global Limited financial report for the half-year ended 31 December 2015

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Tel: +61 7 3237 5999 Level 10, 12 Creek St Fax: +61 7 3221 9227 Brisbane QLD 4000 www.bdo.com.au GPO Box 457 Brisbane QLD 4001 Australia

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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 2016, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 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 review report.

BDO Audit 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 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.

DGR Global Limited financial report for the half-year ended 31 December 2015

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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 2016 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 – Material uncertainty relating to going concern

We draw attention to Note 1 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter.

BDO Audit Pty Ltd

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D P Wright Brisbane, 15 March 2017

BDO Audit 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 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.

DGR Global Limited financial report for the half-year ended 31 December 2015

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