DIGITALX LIMITED — Annual Report 2008

Aug 28, 2008

Appendix 4E Preliminary final Report

.Rules 4.3A

Appendix 4E

Preliminary final report

Name of entity

VERUS INVESTMENTS LIMITED

ABN or equivalent company Financial year ended (‘current period’) reference 59 009 575 035 30 June 2008

For announcement to the market

For announcement to the market	For announcement to the market	For announcement to the market
$A
Other revenue Down 73% to 166,285 Loss from ordinary activities after tax attributable to members Up 3342% to (6,278,952) Net loss for the period attributable to members Up 3342% to (6,278,952)
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend Interim dividend	None	- ¢
Previous corresponding period	None	-¢
+Record date for determining entitlements to the dividend, (in the case of a trust,distribution) N/A

The above results should be read in conjunction with the notes and commentary contained in this report.

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Appendix 4E Preliminary final Report

Management Discussion and Analysis

1. Commentary

The consolidated loss after tax for the financial year ended 30 June 2008 was $6,278,952 (2007: $182,415). It should be noted that the comparative financial year ended 30 June 2007 consisted of only the parent entity (there was no consolidated group)

The significant after tax loss resulted from the write-off of deferred investment costs described in detail below.

During the year the Company made the following significant changes to its investment portfolio and management structure;

• As announced on 9 August 2007, the Company made a non renounceable rights issue of 2 new options exercisable at $0.10 cents on or before 30 June 2010, at an issue price of $0.002 each for every 3 shares held in the Company. Total proceeds being $270,178 after issue costs.

• As announced in the Company’s December half year report - a decision was made to cease further funding of its investment in several offshore exploration activities, namely the St. Gabriel #1, Geuymard and SW Edwards wells, on the basis of test results from each well that did not support continued investment.

• The Company also conducted impairment testing of each of these investments and the directors determined that each had been impaired and therefore all deferred costs invested to date would be written-off. As at 30 June 2008, the aggregate amount written-off for the year was $5,503,106, contributing approximately 87% of the consolidated loss for the current financial year.

• As announced on 24 April 2008, the Company made the following board appointments; Mr Michael Montgomery (Qualified Geologist) as an Executive Director and Andrew McIlwain (Qualified Mining Engineer) as a Non-executive Director, and subsequently appointed Chairman. It was also outlined that the new board was actively reviewing new investment opportunities for the Company.

• As announced 30 April 2008, the Company made its first new investment in three mineral exploration opportunities in Brazil. Option agreements were entered into through a Brazilian subsidiary company to acquire 100% interests in three early stage mineral exploration properties. Detailed planning and scheduling of exploration work was undertaken in the period up to the end of the financial year.

2. Principal activities

The principal activity of the economic entity during the financial year was the identification, evaluation and possible execution of investments opportunities thought to be worthwhile for any short, medium or long term purposes, to whatever degree or magnitude deemed appropriate whether or not such opportunities relate to securities listed on a Security Exchange or directly owned assets of any type.

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Appendix 4E Preliminary final Report

Condensed Consolidated Income Statement For the Year ended 30 June 2008

	Notes	Consolidated	Consolidated	Parent	Parent
		for the year ended 30 June 2008 $		for the year ended 30 June 2007 $
Continuing operations Revenue		-		-
Other income Other expenses	2 2	166,285 (6,445,237)		606,059 (788,473)
Profit / (loss) from continuing operations before tax and finance costs		(6,278,952)		(182,414)
Profit / (loss) before income tax Income tax benefit		(6,278,952) -		(182,414) -
Net profit / (loss) attributable to members of Verus Investments Ltd		(6,278,952)		(182,414)
Earnings per share			for the year ended 30 June 2008		for the year ended 30 June 2007
Basic earnings / (loss) per share from continuing operations Diluted earnings / (loss) per share from continuing operations			(0.263) cents (0.263) cents		(0.08) cents (0.08) cents

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Appendix 4E Preliminary final Report

Condensed Consolidated Balance Sheet As at 30 June 2008

As at 30 June 2008
		Consolidated	Parent
	Notes	as at 30 June 2008 $	as at 30 June 2007 $
Current assets Cash and cash equivalents Receivables Prepayments		1,796,822 91,079 -	2,268,723 27,522 10,554
Total current assets		1,887,901	2,306,799
Non-current assets Property, plant and equipment Intangible Assets – Mineral Rights Intangible Assets Other non-current assets		365 141,518 - -	81,564 - 5,460,926 39,596
Total non-current assets		141,883	5, 582,086
Total assets		2, 029,784	7, 888,885
Current liabilities Trade and other payables		169,167	48,223
Total current liabilities		169,167	48,223
Total liabilities		169,167	48,223
Net assets		1, 860,617	7, 840,662
Equity Contributed equity Reserves Accumulated losses	4	8,824,377 304,757 (7,268,517)	8,824,377 5,850 (989,565)
Total equity		1,860,617	7,840,662

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Appendix 4E Preliminary final Report

Condensed Consolidated Cash Flow Statement For the Year ended 30 June 2008

For the Year ended 30 June 2008
	Consolidated	Parent
	for the year ended 30 June 2008 $	for the year ended 30 June 2007 $
Cash flows from operating activities Proceeds on sale of investments Payment for investment securities Receipts from customers Payments to suppliers and employees Interest received Dividends received Deposit refund Other Revenue Other	- - (556,141) 120,038 - 2,350 41,794 -	10,391,313 (8,705,983) - (658,812) 215,917 8,050 - - (40,698)
Net cash flows from / (used) in operating activities	(391,959)	**1,209,067 **
Cash flows from investing activities Payment for cost for reviewing business opportunities Exploration costs – Brazil Payment for acquisition of mineral rights Payment for intangible assets Purchase ofproperty, plant and equipment	(189,445) (70,934) (70,584) - (1,042)	(208,172) - - (5,460,926) (82,180)
Net cash flows used in investing activities	(332,005)	(5,751,278)
Cash flows from financing activities Proceeds from issue of securities Securities issue costs	318,392 (48,214)	1,850,903 (239,179)
Net cash flows from financing activities	270,178	1,611,724
Net increase (decrease) in cash held Net foreign exchange difference Cash and cash equivalents at beginning of period	(453,786) (18,115) 2,268,723	(2,930,487) - 5,199,210
Cash and cash equivalents at end of period	1,796,822	2,268,723

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Appendix 4E Preliminary final Report

Condensed Consolidated Statement of Changes in Equity Year ended 30 June 2008

Year ended 30 June 2008
	Parent
	Issued Capital $	Accumulated losses $		Reserves $	Total equity $
At 30 June 2006	8,830,280	(807,151)		5,850	8,828,979
Issue of shares Option issued net of costs Share issue costs Foreign currency translation Lossforthe period	- - (5,903) -	- - - (182,414)		- - - - -	- - (5,903)) - (182,414)
At 30 June 2007	8,824,377	(989,565)		5,850	7,840,662

	Consolidated	Consolidated
	Issued Capital $	Accumulated losses $		Reserves $	Total equity $
At 30 June 2007	8,824,377	(989,565)		5,850	7,840,662
Issue of shares Options issued Option issue costs Foreign currency translation Lossforthe period	- - - -	- - - (6,278,952)		- 343,392 (48,214) 3,729 -	- 343,392 (48,214) 3,729 (6,278,952)
At 30 June 2008	8,824,377	(7,268,517)		304,757	1,860,617

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Appendix 4E Preliminary final Report

Reconciliation of cash

Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows:	Consolidated	Parent
	As at 30 June 2008 $	As at 30 June 2007 $
Cash on hand and at bank Deposits at call	1,796,822 -	2,268,723 -
Total cash at end of period	1,796,822	2,268,723

Non-cash financing and investing activities

No significant non-cash financing and investing activities have occurred during the period.

NTA backing

	As at 30 June 2008	As at 30 June 2007
Net tangible asset backing per ordinary security	0.72 cents	0.99 cents

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Appendix 4E Preliminary final Report

2 REVENUE AND EXPENSES

2 REVENUE AND EXPENSES
	Consolidated	Parent
Consolidated Other Income Changes in fair value of asset Finance revenue - Interest received Rental income Dividend income	for the year ended 30 June 2008 $	for the year ended 30 June 2007 $
	- 125,785 40,500 -	400,051 197,958 - 8,050
	166,285	606,059
Expenses Costs incurred in reviewing business opportunities Finance expense Intangible assets write off – Petroleum interest Depreciation Loss on Disposal of Plant & Equipment Occupancy expenses Administration expenses Foreign exchange loss Other expenses	(234,850) (819) (5,503,106) (17,250) (64,991) (145,686) (455,360) (23,175) -	(208,172) (12,637) - (2,955) - (29,144) (521,703) - (13,862)
	(6,445,237)	(788,473)

3 DIVIDENDS PAID AND PROPOSED

No dividends have been paid or proposed during the year.

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Appendix 4E Preliminary final Report

4 ISSUED CAPITAL

4 ISSUED CAPITAL
	Consolidated	Parent
Ordinary shares Issued andfully paid	for the year ended 30 June 2008 $	for the year ended 30 June 2007 $
	8,824,377	8,824,377
Opening balance Sharesissued during the year	Number of shares	Number of shares
	238,794,160 -	238,794,160 -
Closing balance	238,794,160	238,794,160

5 LISTED OPTIONS

Options As at 1 July 2007 Optionsissued during the year	Consolidated	Parent
	Number of options	Number of options
	- 164,196,107	- -
As at 30 June2008	164,196,107	-

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Appendix 4E Preliminary final Report

6 SEGMENT REPORTING

Business Segments

The following table presents the revenue and loss information regarding segments for the years ended 30 June 2008.

30 June 2008 Segment revenue Segment result Segment assets Segment liabilities	Australia $	North America $	South America $	Total $
	166,285 (750,723) 1,887,901 (76,939)	- (5,503,106) - (88,404)	- (25,114) 141,883 (3,824)	166,285 (6,278,952) 2,029,784 (169,167)

For the financial year ended 30 June 2007, the Company’s predominant activity was the identification and execution of investment opportunities, for any short, medium or long term purpose, whether or not those opportunities relate to securities listed on a Securities Exchange. The Company considered that it operated in one operating business segment and no segmental information is provided.

7 GROUP STRUCTURE

Companies within the Verus Investment Limited Group (all wholly owned) carry out designated activities:

(a) VERUS DO BRASIL MINERACO LTDA

Investment in mineral exploration opportunities in Brazil, with the 100% interest acquired on 14[th] March 2008

8 AFTER BALANCE DAY EVENTS

No matters or circumstances have arisen since the end of the financial year, that has significantly affected, or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

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Appendix 4E Preliminary final Report

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place Date Time

Approximate date the[+] annual report will be available

To be confirmed To be confirmed To be confirmed 26[th] September 2008

Compliance statement

• 1 This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX.

• 2 This report, and the[+] accounts upon which the report is based (if separate), use the same accounting policies.

• 3 This report does give a true and fair view of the matters disclosed.

• 4 This report is based on[+] accounts to which one of the following applies. (Tick one)

� The +accounts have been � The +accounts have been audited. subject to review. � The +accounts are in the � The[+] accounts have not yet process of being audited or been audited or reviewed. subject to review.

Sign here :

==> picture [145 x 45] intentionally omitted <==

Date: 29[th] August 2008

Print name : Andrew McIlwain Director

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