WEST PEAK IRON LTD

West Peak Iron Ltd
ABN 71 142 411 390

Annual Financial Report
For the year ended 30 June 2012

Corporate Information	1
Directors’ Report	2
Auditor’s Independence Declaration	27
Statement of Comprehensive Income	28
Statement of Financial Position	29
Statement of Changes in Equity	30
Statement of Cash Flows	31
Notes to the Financial Statements	32
Directors’ Declaration	58
Independent Auditor’s Report	59
Additional Shareholder Information	61
ASX Additional Information	63

West Peak Iron Limited
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CORPORATE INFORMATION

ABN 71 141 411 390

Directors	Mathew Walker	Executive Director
	Graham Marshall	Non-executive Chairman
	John Royle	Non-executive Director
Joint Company secretaries	David Parker
	Sonu Cheema
Registered office	Suite 9, 330 Churchill Avenue
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	Subiaco WA 6008
	Telephone: (08) 6489 1600
	Fax: (08) 6489 1601
Principal place of business	Suite 9, 330 Churchill Avenue
Subiaco WA 6008
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Share register	Security Transfer Registrars Pty Ltd
770 Canning Highway
Applecross WA 6153
Telephone: (08) 9315 2333
Fax: (08) 9315 2233
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Solicitors	Steinepreis Panagin
Lawyers and Consultants
Level 4, Next Building
16 Milligan Street
Perth WA 6000
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Bankers	National Australia Bank
Level 1, 1238 Hay Street
West Perth WA 6005
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Auditors	HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
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Website	www.westpeakiron.com.au
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West Peak Iron Limited
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DIRECTORS' REPORT

Your directors submit the annual financial report of the Consolidated Entity consisting of West Peak Iron Limited and the entities it controlled during the period for the financial year ended 30 June 2012. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of directors who held office during or since the end of the year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Mathew Walker	Executive Director (appointed 29 July 2012)
Graham Marshall	Non-executive Chairman
John Royle	Non-executive Director
David Parker	Executive Chairman (resigned 29 July 2012)

Names, qualifications, experience and special responsibilities

Mr Mathew Walker
Executive Director
Age: 41
Qualifications: Bachelor of Business

Mr Walker has extensive experience in public company management and in the provision of corporate advice. Specialising in the natural resources sector, Mr Walker has served as Executive Chairman or Managing Director for public companies with mineral interests in North America, South America, Africa, Eastern Europe, Australia and Asia. Currently he serves as Chairman of Blue River Mining Limited. He is also Chairman of corporate advisory firm Cicero Corporate Services based in London, UK.

During the last three years, Mr Walker has served as a director of the following listed companies:

Aspire Mining Limited (resigned 12 February 2010)
Hastings Rare Metals Limited (resigned 10 November 2011)
Pilbara Minerals Limited (resigned 26 August 2010)
Pacific Ore Limited (resigned 20 November 2009)
Triple Energy Limited (resigned 30 June 2012)

Mr Graham Marshall
Non-executive Chairman
Age: 56
Qualifications: Diploma of Project Management and Certified Practicing Project Director

Mr Marshall has spent over 20 years as a senior executive in the mining and engineering industries, he has held directorships and senior management positions with a number of private and public companies and has developed successful business relationships across Europe, Asia and Australasia. Mr Marshall has recently held the General Manager and Non-executive Director positions at Pacific Ore Limited and is currently employed by a leading Western Australian nickel producer as part of the corporate executive team. Mr Marshall holds a Diploma of Project Management, is a Certified Practicing Project Director and is a member of the Australian Institute of Project Management.

Mr Marshall has extensive commercial and corporate services experience, extending to business development, marketing, strategic and operational planning, and financial management.

Mr Marshall has also managed multi-million dollar development projects covering gold processing, nickel high pressure acid leaching, copper and nickel heap leaching and more recently he successfully managed the development and operation of the first BioHeap™ process pilot plant in the Peoples Republic of China.

During the last three years Mr Marshall has served as a director of the following ASX listed company:

Pacific Ore Limited (resigned April 2010)

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Mr John Royle
Non-executive Director
Age: 42
Qualifications: Bachelor of Economics from The University of Western Australia

Mr Royle has over 15 years international business experience including approximately 5 years management consultancy experience at Accenture, UK. For the last 5 years, Mr Royle has worked primarily in economic development within Perth's northwest and eastern metropolitan areas supporting business development, regional development and investment attraction. Mr Royle has expertise across public, private and not-for-profit sectors, including start-ups as well as approximately 5 years prospecting experience.

During the last three years Mr Royle has not served as a director of any other listed companies.

Interests in the shares and options of the Company and related bodies corporate

The following relevant interests in shares and options of the Group or a related body corporate were held by the directors as at the date of this report:

Directors	Number of options over ordinary shares	Number of fully paid ordinary shares
Graham Marshall^{1}	1,000,000	1,410,000
John Royle	1,000,000	822,500
Mathew Walker	-	575,000
Totals	2,000,000	2,807,500

1 1,370,000 Shares and options held in the name of Tynebridge Holdings Pty Ltd ATF The Marshall Family Trust an entity controlled by Graham Marshall. 20,000 held in the name of Graham Marshall and 20,000 held in the name of Lindsay Marshall (spouse of Graham Marshall).

No Shares or options were granted to Directors or Officers during the period or since the end of the financial period as part of their remuneration.

There were no shares issued during the financial period as a result of the exercise of an option. There were no alterations to the terms and conditions of options granted since their grant date.

At the date of this report unissued ordinary shares of the Group under option are 13,105,465 Company Options exercisable at $0.20 expiring on or before 30 June 2013 and 500,000 Company Options exercisable at $0.30 expiring on or before 30 June 2013.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Dividends

No dividends have been paid or declared since the start of the financial year and the directors do not recommend the payment of a dividend in respect of the financial year.

Principal Activities

The principal activity of the entities within the Consolidated Entity during the year was the exploration for natural resources. There have been no other significant changes in the nature of those activities during the period.

Review of Operations

Introduction

West Peak Iron Limited is a junior exploration company with a primary focus on iron ore exploration. West Peak has built up an attractive land holding through direct tenement applications in the emerging Mid-West and Yilgarn iron provinces of Western Australia and Liberia, West Africa, which is currently considered one of the most prospective areas in the world to explore.

Work completed to date has focussed on target generation through field-based work including geological mapping and rock chip sampling in Australia and Liberia, and the flying of high-resolution airborne magnetic-radiometric surveys over four Liberian projects. Subsequent modelling of the magnetic data provided exploration tonnage target sizes for the Liberian projects. Results from this work have been encouraging, identifying both direct shipping ore and beneficiated feed ore targets in Australia and Liberia. West Peak will continue to actively explore its land holdings with the goal of identifying iron resources which have a potential economic outcome.

Liberia

Liberia is located in West Africa where it borders Guinea, Sierra Leone and Côte d'Ivoire (Figure 1). West Peak has been granted two iron ore exploration licences and two reconnaissance licences, which are currently in the process of being converted to exploration licences, for a total area of 972 km² in the Grand Bassa, Bomi, Bong and River Cess counties. All licences contain iron-bearing formations and are strategically located close to port, rail and road infrastructure, both existing and currently being upgraded to meet iron ore industry requirements.

Liberia is a country with a history of iron ore mining dating back to the 1950s, when the first shipping of iron ore began, and continued through the 1970s and 1980s as a major world exporter. Mining ceased during the civil unrest which lasted for seven years ending in 2003. Liberia held its first elections in 2005 when Her Excellency Ellen Johnston Sirleaf was democratically elected as president. In the subsequent seven years, Liberia has enjoyed a period of political stability which has translated into significant foreign investment, particularly in the iron sector, from major mining houses like BHP Billiton and ArcelorMittal.

West Peak Iron Limited

DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 1. Regional location of the West Peak granted licences and current iron ore projects.

The geology of Liberia comprises two provinces being the Archaean Man Craton in the northwest and the Proterozoic Birimian sequence in the southeast. West Peak project locations are found exclusively in the Man Craton which is a granite-greenstone terrain that has been subjected to medium to high grade metamorphism resulting in a variety of metamorphic rocks including itabirites.

The geological model employed by West Peak is typical of West African iron ore deposits where metamorphism has resulted in recrystallisation of magnetite-rich iron formations (BIFs) to produce "itabirites" with grades ranging from $20\%$ to $40\%$ Fe. These units have then been subjected to geochemical weathering and transformation by supergene processes to produce a hematite itabirite unit, where iron grades are enriched up to $60\%$ Fe. Overlying this unit is a weathered cap comprising laterite, limonite, hematite and goethite where iron grades range from $20\%$ to $65\%$ Fe.

Detrital "canga" iron mineralisation has also been observed and represents transported and enriched BIF material down slope where it has been re-cemented in an iron-rich matrix with grades generally ranging from $40\%$ to $60\%$ Fe.

The predominant focus of exploration in Liberia for the year was target generation to be tested at a later date by drilling. This involved flying detailed airborne geophysical surveys at $100\mathrm{m}$ line spacing over four project areas to provide magnetic, radiometric and topographic information. This data was modelled by West Peak's geophysical consultants to provide volume information on the magnetic bodies. This was then used to calculate exploration targets for the different styles of mineralisation which could have the potential to provide either direct shipping ore (DSO) or beneficiated feed ore (BFO). Target prospects within each project comprised numerous individual magnetic models. Model volumes were cumulatively tallied to provide a global target tonnage for the Liberian projects shown in Table 1.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Table 1. Global exploration target¹

Mineralisation Style	Minimum Tonnes (Mt)	Maximum Tonnes (Mt)	Fe Grade Range
Hematite itabirite (DSO/BFO)	465	775	20 - 65 %
Magnetite itabirite (BFO)	905	1,510	20 - 40 %

¹ The estimates of exploration target sizes mentioned in this report are conceptual in nature based upon a number of assumptions and should not be interpreted to represent a Mineral Resource compliant with the JORC code as there has been insufficient exploration. Results can be considered indicative at best and it is uncertain if further exploration will define a Mineral Resource. The global tonnage target range estimate equates to modelled tonnes (hematite itabirite - 620 Mt, magnetite itabirite- 1,205 Mt) with a possible accuracy of ±25%.

The modelling was completed using both the total magnetic intensity (TMI) and analytic signal data due to the complexity of the magnetic responses. The magnetic anomalies were modelled as simple dyke-like bodies with strike direction and length constrained from the magnetic maps. The modelling method makes a number of assumptions and has limitations².

² The global exploration targets have been estimated based on the modelling of the total magnetic intensity and analytic signal of the total magnetic intensity data. The results of this method are subject to a number of assumptions and limitations. In addition to those previously mentioned, these include:

The strike length of the modelled magnetic anomalies represents the target mineralisation;
The geometry of the magnetic sources remains constant over their entire length;
The depth extent has been limited to 150m below surface for the magnetic bodies that are interpreted to represent magnetite mineralisation;
The material above the modelled magnetic bodies represents hematite mineralisation extending to surface;
The depth extent of the interpreted hematite mineralisation is limited to 100m below surface;
The specific gravity of the magnetite mineralisation is 3.0 t/m³ and 2.0 t/m³ for hematite mineralisation, however these values have not been quantitatively determined;
Remanent magnetisation parameters have been estimated by modelling of the analytic signal data for some model bodies where a geologically reasonable model could not be achieved assuming induced magnetisation only;
The exploration target estimate presented here could change considerably if lower or higher magnetic susceptibilities or densities were used, or if different remanent magnetisation parameters were applied.

Specific gravity values of 3.0 t/m³ and 2.0 t/m³ were used in the tonnage calculation of the magnetite and hematite targets respectively and have been derived from reviewing comparable iron projects. Grade ranges for the differing styles of mineralisation are based on rock chip sampling carried out by West Peak. The depth extent used in the magnetite target tonnage estimation has been limited to a vertical height from surface of 150 m.

With the encouraging exploration targets generated in the 2012 exploration programs and the potential infrastructure solutions that the rail and port facility upgrades offer, West Peak is very excited by the potential of its Liberian projects and looks forward to advancing them further through effective exploration and ultimately the identification of new resources.

Bomi South Project

The Bomi South project is located approximately 60 km NNE of Monrovia and is accessed by sealed road to the western tenement boundary and a sealed road 2 km from the eastern boundary (Figure 2). The geology is predominantly comprised of a composite gneiss sequence containing generally E-W-striking itabirite units. These units outcrop intermittently over the tenement as ridges with strike lengths of up to 4 km and elevations up to 100 m, but generally averaging 30-50 m. These units are considered to be the western continuation of the iron formations found in the Bong Ranges that have been historically mined at Bong Town and currently form the basis of China Union's Bong iron project.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 2. Location of Bomi South Project and current iron ore projects.

Following a field visit which highlighted the prospectivity of the area, West Peak successfully applied for an extension on the western side of the licence for an additional 81 km². Field work carried out during the year involved further rock chip sampling which also included a trenching program. A detailed aeromagnetic survey was completed and the subsequent magnetic data was modelled to generate the following global exploration target size:

Table 1. Bomi South exploration target¹.

Mineralisation Style	Minimum Tonnes (Mt)	Maximum Tonnes (Mt)	Fe Grade Range
Hematite itabirite (DSO/BFO)	180	300	20 - 65 %
Magnetite itabirite (BFO)	645	1,075	20 - 40 %

The Bomi South project comprises several anomalous magnetic areas which have been grouped into prospects named Areas 1 to 7 (Figure 3). Within these prospect areas are multiple magnetic bodies which have been individually modelled and indicate strike lengths of 115–1,000 m and widths of 20-250 m with dip angles ranging from sub-vertical to relatively flat lying.

The 2012 rock chip and trenching programs together with the results of the magnetic survey have resulted in the generation of seven iron ore targets which will now be the focus of drill testing in the coming year.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 3. Prospect areas overlain on the vertical integral of the analytic signal aeromagnetic image.

Central Liberian Projects

The Central Liberian Projects consist of three projects: Grand Bassa, Bobo Creek and Mount Koklun, as shown in Figure 4. Grand Bassa is a granted exploration licence while Bobo Creek and Mount Koklun currently have applications before the Ministry of Lands, Mines and Energy of Liberia to convert them from reconnaissance licences into exploration. In order for ground disturbing exploration to be carried out an exploration licence must be held.

All three projects were flown with high resolution aeromagnetics in 2011 and modelling of the magnetic data was carried out to determine the following global exploration target for the Central Liberian Projects:

Table 2. Central Liberian exploration tonnage targets based on magnetic modelling¹.

	Hematite (DSO/ BFO) Tonnage (Mt) Grade Range 20 - 65 % Fe		Magnetite (BFO) Tonnage (Mt) Grade Range 20 - 40 % Fe
Project	Minimum	Maximum	Minimum	Maximum
Mount Koklun	45	75	85	145
Bobo Creek	225	375	160	265
Grand Bassa	15	25	15	25
Total	285	475	260	435

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 4. Central Liberia project locations showing key infrastructure and iron projects.

Grand Bassa

The Grand Bassa project consists of an exploration licence and is located approximately 10 km east of the port town of Buchanan (Figure 4). The project area is accessed by an unsealed road which runs parallel to the operating railway line servicing ArcelorMittal's Yekepa iron mine to the port of Buchanan.

Following a field reconnaissance visit, 85% of the original licence was surrendered due to the lack of potential for economic iron mineralisation. The retained licence area was then flown with a high-resolution aeromagnetic survey which identified a magnetic anomaly of approximately 3 km in strike length (Figure 5). This anomaly is coincident with surface iron enrichment in the form of a hematite/goethite-rich cap interpreted to overlie itabirite units.

West Peak intends to follow up the magnetic anomaly with a trenching program to identify a target for drilling.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 5. Vertical integral of the analytic signal aeromagnetic image over the Grand Bassa project.

Bobo Creek Project

The Bobo Creek Reconnaissance Licence (BCRL) is located approximately 70 km east of the port of Buchanan (Figure 4) and covers an area of 200 km². An application to convert this licence from a reconnaissance licence to an exploration licence is currently before the Ministry for Lands, Mines and Energy of Liberia. For ground disturbing exploration to be carried out an exploration licence must be held.

The licence area contains a gneiss unit and a composite unit, which includes prospective iron formations. Results from the aeromagnetic survey have highlighted an anomaly of approximately 15 km strike length which is coincident with the iron-bearing composite unit (Figure 6).

A field visit conducted in November 2011 identified surface iron enrichment in the form of a hematite/goethite-rich cap interpreted to overlie itabirite units. Rock chip results returned iron grades of between 22.98% and 58.25% Fe and represent hematite-rich capping and magnetite-bearing iron formation which may be beneficiated.

Figure 6. Rock chip sample locations at the Bobo Creek project coloured by iron grade and overlain on the analytic signal aeromagnetic image.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Mount Koklun Project

The Mount Koklun Reconnaissance Licence (MKRL) is located 100 km inland from the port of Buchanan (Figure 4). The MKRL covers an area of 129 km² and contains iron-bearing formations, including 4 km of outcropping itabirite, which are considered prospective for iron ore mineralisation. An application to convert the Mount Koklun reconnaissance licence to an exploration licence is currently before the Ministry for Lands, Mines and Energy of Liberia.

A brief field visit was conducted in late November 2011 to verify the presence of iron formations shown on the United States Geological Survey (USGS) compiled regional maps. Itabirite units were identified and rock chip samples taken returned iron grades ranging up to 41% Fe. These iron formations ranged from moderate to coarse grained with varying degrees of hardness, which reflected the differing extent of weathering.

A hematite/goethite-capping was also identified on the topographic highs and on the down slopes ranging in grade from 30% to 55% Fe. This is interpreted to represent a supergene iron-enriched capping on the itabirite units which form the topographic highs and detrital iron enrichment on the down slopes and adjacent lowlands.

Subsequent to the field visit, the aeromagnetic results (Figure 7) have identified additional areas of interest which will be followed up with field mapping and sampling.

Figure 7. Rock chip sample locations at the Mt Koklun project coloured by iron grades overlain on the analytic signal aeromagnetic image.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Western Australia

West Peak has built up a land holding in the emerging Mid-West and Yilgarn iron provinces of Western Australia where major iron projects are currently being commissioned and the required infrastructure is being built. West Peak holds an exploration portfolio of 33 tenements for approximately 1,955 km² that consists of 25 granted licences (1,012 km²) and eight pending licences (944 km²) which are prospective for a range of commodities (Figure 8). Field work programs completed in 2012 have resulted in the identification of a DSO iron target at the Highway Prospect in the Paynes Find Project.

Figure 8. West Australian land holding.

Pinyalling Project

The Pinyalling Project is located approximately 420 km northeast of Perth and 50 km west northwest of Paynes Find (Figure 8) covering parts of the Warriedar greenstone belt which hosts significant iron ore deposits. Work for the period consisted of data review and compilation including the reprocessing of geophysical data sets to assist with interpretation and target generation. This was followed up with field visits to the Thundelarra and Warriedar prospects.

Thundelarra Prospect

The Thundelarra Prospect contains three magnetite-bearing BIFs ranging in width from 5 to 30 m which outcrop over a strike length of approximately 3 km with grades ranging 29% to 35% iron. The aeromagnetic data indicate approximately 7.5 km of potential BIF within the tenement area. Based on the field mapping results, further assessment of the geophysical data is required to delineate an iron ore target of suitable size to warrant drill testing.

No work was conducted on the prospect during the reporting period.

Warriedar Prospect

Field work has identified direct shipping ore type iron mineralisation with rock chip grades ranging from 40.91% to 61.17% Fe with moderate impurities. Mapping shows iron enrichment generally occurs in small outcrops of goethite-rich banded iron formation over a strike length of 1.8 km with outcrop widths varying between 5 and 20 m interpreted as separate, narrow BIF units.

A program of works was submitted to the Department of Mines and Petroleum (DMP) and flora-fauna and heritage surveys are in the process of being organised to be completed in 2013.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Paynes Find Project

The Paynes Find Project is located approximately 420 km northeast of Perth and 20 km west of Paynes Find (Figure 8). The project occurs on the south western edge of the northerly-trending Paynes Find greenstone belt, which contains fine grained basaltic and felsic volcanic rocks, gabbro, and banded iron formation interlayered with sediments.

Work for the period consisted of a data review and field reconnaissance visit which identified the Highway Prospect. Field observations supported by rock chip samples, which ranged in grade from 49.89% to 61.17% Fe, indicate an iron target with potential to provide DSO product.

A program of works was submitted to the DMP to provide the necessary approvals to carry out a maiden drill program to test the iron potential of the prospect.

Dandaraga Project

The Dandaraga Project is located approximately 35 km southeast of Sandstone (Figure 4) and covers part of the Cook Well greenstone belt. Through field mapping and rock chip sampling, West Peak has identified a magnetite-bearing iron target. The approximately 2 km of outcropping BIF with sampled rock chip traverses of up to 163 m at 38.87% Fe is coincident with a strong aeromagnetic anomaly with a strike length of 7 km. This anomaly forms part of a broader magnetic feature which spans the entire length of the tenement, approximately 27 km.

A heritage survey was completed during the reporting period to support a program of works application to carry out a small drill program.

Santy Well Project

The Santy Well Project is located 60 km north of Mullewa and consists of six tenements for approximately 280 km², of which five are granted (247 km²) and one is in application (33 km²). The project is subject to a Farm-in Agreement with Cohiba Minerals Ltd for the non-iron mineral rights of the 100% owned Santy Well tenements (E59/1677 and E59/1678).

The Santy Well Project covers approximately 40 km of the northerly limb of the Tallering greenstone belt and is considered prospective for gold and base metal mineralisation. The historical data compiled and reviewed to date show that previous surface exploration, including geophysical surveying, has been reasonably extensive and successful in defining a range of targets. However follow-up drilling has generally been shallow and appears to have been largely ineffective.

Work during the reporting period involved completing a heritage survey to support a program of works application for a broad spaced RAB / air core program.

Kirkalocka Project

The Kirkalocka Project is located approximately 70 km south of Mount Magnet on the Great Northern Highway and consists of two tenements for 260 km² of which one is granted (61 km²) and one is under application (199 km²). The project covers part of the Wydgee greenstone belt that comprises a complex sequence of volcanic rocks, banded iron formation and sediments flanked by granites.

Work this year has consisted of the compilation and review of open-file data to assess the project's potential for iron ore, gold and base metal mineralisation. Included in this review was the implication of heritage sites and which results in the withdrawal of five licence applications. A field reconnaissance visit was conducted at the project area with no significant surface iron enrichment encountered and as such future exploration at the Kirkalocka project will be focused on its gold and base metal potential.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

COMPETENT PERSONS' STATEMENTS

Geological Data and Interpretation

Scientific or technical information in this news release has been prepared under the supervision of Mr Shane Tomlinson, an employee of the Company and a Member of the Australian Institute of Geoscientists (MAIG). Mr Tomlinson has sufficient experience which is relevant to the style of mineralisation under consideration 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, Mineral Resources and Ore Reserves" (the JORC Code). Mr Tomlinson consents to the inclusion in this report of the information in the form and context in which it appears.

Geophysical Modelling and Exploration Target Volume Calculation

Mr William Peters is Managing Director and Senior Consulting Geophysicist at Southern Geoscience Consultants. Mr Peters is a Fellow and Chartered Professional (Geology) of the Australian Institute of Mining and Metallurgy (FAusIMM CP) and has sufficient experience which is relevant to the type of 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, Mineral Resources and Ore Reserves" (the JORC Code). Mr Peters consents to the inclusion in this announcement of the information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.

FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS

Some statements in this announcement regarding estimates or future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include, but are not limited to, statements concerning the Company's exploration program, outlook, target sizes and mineralised material estimates. They include statements preceded by words such as "expected", "planned", "target", "scheduled", "intends", "potential", "prospective", "seek", "proposed" and similar expressions.

Significant changes in the state of affairs

The following material corporate events occurred during the financial year ended 30 June 2012:

On 20 October 2011 the Company released 3,550,000 shares from escrow.

On 20 October 2011 the Company issued 3,500,000 shares at $0.14 to raise $490,000 before costs.

On 14 February 2012 the Company issued 1,750,000 Company Options, exercisable at $0.20 on or before 30 June 2013 following shareholder approval as a result of Company Option exercise to raise $38,000 before costs. These were on the basis of one option for every two shares issued as part of the placement on 20 October 2011.

On 14 February 2012 the Company issued 190,000 shares at 0.20 as a result of Company Option exercise to raise $38,000 before costs.

On 14 February 2012 the Company issued 429,535 shares at 0.20 as a result of Company Option exercise to raise $85,907 before costs.

On 14 February 2012 the Company issued 25,000 shares at 0.20 as a result of Company Option exercise to raise $5,000 before costs.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Significant events since the end of the period

On 30 July 2012 the Company announced the appointment of Mathew Walker to the role of Executive Director, while Graham Marshall was appointed Non-Executive Chairman and David Parker resigned as Executive Chairman however was appointed as Joint Company Secretary.

On 2 August 2012 the Company issued 4,105,464 shares at 0.05 to raise $205,273 before costs.

On 10 August 2012 the Company released a Disclosure Document for an Entitlement Issue to issue up to 32,500,000 shares at $0.01 to raise up to $1,625,000 before costs. The Entitlement Offer was offered to existing shareholders on the basis of one share for every one share held.

On 13 September 2012 the Company issued 14,022,061 shares at 0.05 pursuant to the Entitlement Issue to raise $701,103 before costs.

Operating results for the year

The comprehensive loss of the consolidated entity for the financial period, after providing for income tax amounted to $870,036 (2011: $1,088,064).

Review of financial conditions

As at 30 June 2012 the Consolidated Entity had $520,974 in cash assets which the Directors believe puts the Group in a sound financial position with sufficient capital to effectively explore its tenements and pursue other resource based opportunities. Pursuant to the subsequent events note, the Company raised an additional $906,376 via the Placement and Entitlement Issues since the end of the financial year.

Risk management

Details of the Consolidated Entity's Risk Management policies are contained within the Corporate Governance Statement in Directors' Report.

Corporate Governance

Details of the Consolidated Entity's Corporate Governance policies are contained within the Corporate Governance Statement in Directors' Report.

Likely developments and expected results

Disclosure of information regarding likely developments in the operations of the Consolidated Entity in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the Group. Therefore, this information has not been presented in this report.

Environmental legislation

The Consolidated Entity is subject to significant environmental and monitoring requirements in respect of its natural resources exploration activities.

The directors are not aware of any significant breaches of these requirements during the period.

Indemnification and insurance of Directors and Officers

The Consolidated Entity has agreed to indemnify all the directors of the consolidated entity for any liabilities to another person (other than the consolidated entity or related body corporate) that may arise from their position as directors of the consolidated entity, except where the liability arises out of conduct involving a lack of good faith.

During the financial year the consolidated entity paid a premium in respect of a contract insuring the directors and officers of the consolidated entity against any liability incurred in the course of their duties to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Remuneration report (Audited)

This report outlines the remuneration arrangements in place for directors and senior management of West Peak Iron Limited (the "Company" or the "Group") for the financial period ended 30 June 2012.

Key Management Personnel

The KMP of the Group during or since the end of the financial year were as follows:

Directors

Mathew Walker Executive Director (appointed 29 July 2012)
Graham Marshall Non-Executive Chairman
John Royle Non-Executive Director
David Parker Executive Chairman (resigned 29 July 2012)

Executives

Shane Tomlinson Exploration Manager

Remuneration philosophy

The remuneration policy of West Peak Iron Limited has been designed to align Director's objectives with shareholder and business objectives by providing a fixed remuneration component which is assessed on an annual basis in line with market rates. The Board of West Peak Iron Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors to run and manage the Group, as well as create aligned goals between directors and shareholders.

Independent director committee

During the financial period ended 30 June 2012, the Board has appointed Mr Marshall and Mr Royle as the sole members of the Independent Directors Committee. This Committee is responsible among other duties, for remuneration and executive appraisal and plans to meet biannually.

Non-executive director remuneration

The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders. The Group's constitution states that an aggregate remuneration of $250,000 per period can be paid to the non-executive directors. The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst Directors is reviewed annually.

The Board considers advice from external shareholders as well as the fees paid to non-executive directors of comparable companies when undertaking the annual review process. Each director receives a fee for being a director of the Group. The current fee for non-executive directors is $30,000 per annum.

Senior manager and executive director remuneration

Remuneration consists of fixed remuneration and Company options (as determined from time to time). In addition the Group employees and directors, the Group has contracted key consultants on contractual basis. These contracts stipulate the remuneration to be paid to the consultants.

Fixed Remuneration

Fixed remuneration is reviewed annually by the Independent Directors Committee. The process consists of a review of relevant comparative remuneration in the market and internally and, where appropriate, external advice on policies and practices. The Committee has access to external, independent advice where necessary.

The fixed remuneration component of the Key Management Personnel, is detailed in Table 1.

West Peak Iron Limited
Page | 17

DIRECTORS' REPORT (continued)

Remuneration Report (continued)

Variable Remuneration

No variable remuneration is paid. Long term incentives are issued in the form of Company options. To date 5,000,000 Company options have been issued to directors and 1,500,000 to key executives. These options and shares do not draw on the cash reserves of the Group and provide incentive for the directors to increase shareholder value, given that the options that have been issued are out of the money.

Employment Contracts

On 1 June 2010, the Group entered into an executive services agreement with Mr Parker (Executive Services Agreement) effective as from 1 July 2010. Under the Executive Services Agreement, Mr Parker is engaged to provide services to the Group in the capacity of Executive Director, based in Perth, Western Australia. Mr Parker is to be paid an annual remuneration of $100,000 plus statutory superannuation. Mr Parker will also be reimbursed for reasonable expenses incurred in carrying out his duties.

The Executive Services Agreement continues for a period of 2 years, with an option to extend for a further 1 year term, unless terminated in accordance with the relevant provisions of the Executive Services Agreement. The Executive Services Agreement contains standard termination provisions under which the Group can terminate the agreement as a result of misconduct or alternatively the agreement can be terminated with 6 months notice for no reason. In addition, Mr Parker is entitled to all unpaid remuneration and entitlements up to the date of termination.

On 15 August 2010, the Group entered into an executive services agreement with Mr Tomlinson (Exploration Manager). Under the Executive Services Agreement, Mr Tomlinson is engaged to provide services to the Group in the capacity of Exploration Manager, based in Perth, Western Australia. Mr Tomlinson is to be paid an annual remuneration of $175,000 plus statutory superannuation. Mr Tomlinson will also be reimbursed for reasonable expenses incurred in carrying out his duties.

The Executive Services Agreement continues for a period of 2 years, with an option to extend for a further 1 year term, unless terminated in accordance with the relevant provisions of the Executive Services Agreement. The Executive Services Agreement contains standard termination provisions under which the Group can terminate the agreement as a result of misconduct or alternatively the agreement can be terminated with 3 months by either party by written notice. In addition, Mr Tomlinson is entitled to all unpaid remuneration and entitlements up to the date of termination.

On 1 September 2012, the Group entered into an executive consulting services agreement with Mr Walker (Executive Consulting Services Agreement) effective as from 1 September 2012. Under the Executive Consulting Services Agreement, Mr Walker is engaged to provide services to the Group in the capacity of Executive Director, based in Perth, Western Australia. Mr Walker is to be paid a monthly remuneration of $9,000 plus GST. Mr Walker will also be reimbursed for reasonable expenses incurred in carrying out his duties. The Executive Consulting Services agreement can be terminated by one month's written notice from the Company, while Mr Walker can terminate by providing three months written notice.

West Peak Iron Limited
Page | 18

DIRECTORS' REPORT (continued)

Remuneration Report (continued)

Options

No Options were granted by the Company as remuneration during the year ended 30 June 2012.

Details of Unlisted Options granted by the Company to each KMP of the Group during the 2011 financial year are as follows:

2011	Grant Date	Expiry Date	Exercise Price	Grant Date Fair Value^{1}	No. Granted	No. Vested
Executive
Shane Tomlinson	4-Mar-11	30-Jun-13	$0.20	$0.087	1,000,000	1,000,000
Shane Tomlinson	4-Mar-11	30-Jun-13	$0.30	$0.063	500,000	500,000

Notes:

For details on the valuation of the Unlisted Options, including models and assumptions used, please refer to Note 21 to the financial statements.
During the year, no KMP exercised Unlisted Options that were granted to them as part of their compensation.

Details of the value of Unlisted Options granted, exercised or lapsed for each KMP of the Group during the 2011 financial year are as follows:

2011	Value of Options Granted During the Year 1 $	Value of Options Exercised During the Year 2 $	Value of Options Lapsed During the Year $	Value of Options Included in Remuneration for the Year $	Remuneration for the Year that Consists of Options %
Executives
Shane Tomlinson	118,286	-	-	118,286	43.81

West Peak Iron Limited
Page | 19

DIRECTORS' REPORT (continued)

Remuneration Report (continued)

Performance-based Remuneration

The Group currently has no performance-based remuneration component built into director and executive remuneration packages.

Remuneration of directors and key executives

Table 1: Directors' and key executive's remuneration for the year ended 30 June 2012
	Short-term employee benefits			Post-employment benefits	Equity
	Salary & Fees $	Bonuses $	Non-Monetary Benefits $	Super-annuation $	Options Granted $	Total $	Performance Related %
Directors
David Parker^{1} 2012	100,000	-	-	9,000	-	109,000	-
Graham Marshall 2012	30,000	-	-	2,700	-	32,700	-
John Royle^{2} 2012	30,000	-	-	2,700	-	32,700	-
Executive
Shane Tomlinson 2012	178,000	-	-	15,750	-	193,750	-
Total 2012	338,000	-	-	30,150	-	368,150	-

During the period ended 30 June 2012, Cicero Corporate Services Pty Ltd, an entity Mr Parker holds a 33.3% equity holding, provided corporate administration services which included rent, corporate services and reimbursement to the Group which totalled $122,656 during the year. The arrangement was on normal commercial terms and has not been included as part of executives' remuneration.
During the period ended 30 June 2012, Pulse Design, an entity owned by Mr Royle's spouse, provided corporate design services which totalled $3,806 during the year. The arrangement was on normal commercial terms and has not been included as part of executives' remuneration.

West Peak Iron Limited
Page | 20

DIRECTORS' REPORT (continued)

Remuneration Report (continued)

Remuneration of directors and key executives

Table 1: Directors' and key executive's remuneration for the year ended 30 June 2011
	Short-term employee benefits			Post-employment benefits	Equity
	Salary & Fees $	Bonuses $	Non-Monetary Benefits $	Super-annuation $	Options Granted $	Total $	Performance Related %
Directors
David Parker	2011	100,000	-	-	9,000	-	109,000
Graham Marshall	2011	30,000	-	-	2,700	-	32,700
John Royle	2011	30,000	-	-	2,700	-	32,700
Executive
Shane Tomlinson	2011	138,958	-	-	12,506	118,286	269,970
Total	2011	298,958	-	-	26,906	118,286	443,370

End of Remuneration Report

Directors' Meetings

The number of meetings of directors (including meetings of committees of directors) held during the period and the number of meetings attended by each director were as follows:

Directors	Directors Meetings		Independent Director meetings
	Eligible to attend	Attended	Eligible to attend	Attended
David Parker	5	5	0	0
Graham Marshall	5	5	0	0
John Royle	5	5	0	0

In addition, there were 2 circular resolutions signed by the board.

Proceedings on behalf of the Group

There are no proceedings on behalf of the Group.

Auditor Independence and Non-Audit Services

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Group with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page 26 and forms part of this directors' report for the year ended 30 June 2012.

Non-Audit Services

There were no amounts paid or payable to the auditors for non-audit services during the year as outlined in Note 19 to the financial statements.

West Peak Iron Limited
Page | 21

DIRECTORS' REPORT (continued)

Signed in accordance with a resolution of the directors.

Mr Graham Marshall
Non-Executive Chairman
Perth, Western Australia; Dated this 27th day of September 2012

West Peak Iron Limited
Page | 22

CORPORATE GOVERNANCE STATEMENT

The Board of Directors of West Peak Iron Limited is responsible for the corporate governance of the Group. The Board guides and monitors the business and affairs of West Peak Iron Limited on behalf of the shareholders by whom they are elected and to whom they are accountable.

West Peak Iron Limited's Corporate Governance Statement is structured with reference to the Corporate Governance Council's principles and recommendations, which are as follows:

Principle 1. Lay solid foundations for management and oversight
Principle 2. Structure the board to add value
Principle 3. Promote ethical and responsible decision making
Principle 4. Safeguard integrity in financial reporting
Principle 5. Make timely and balanced disclosure
Principle 6. Respect the rights of shareholders
Principle 7. Recognise and manage risk
Principle 8. Remunerate fairly and responsibly

West Peak Iron Limited's corporate governance practices were in place throughout the year ended 30 June 2012.

LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT

Role and Responsibilities of the Board

The principal responsibilities or functions of the Board are as follows:

appointment of the Chief Executive Officer and other senior executives and the determination of their terms and conditions including remuneration and termination;
driving the strategic direction of the Group, ensuring appropriate resources are available to meet objectives and monitoring management's performance;
reviewing and ratifying systems of risk management and internal compliance and control, codes of conduct and legal compliance;
approving and monitoring the progress of major capital expenditure, capital management and significant acquisitions and divestitures;
approving and monitoring the budget and the adequacy and integrity of financial and other reporting; and
ensuring a high standard of corporate governance practice and regulatory compliance and promoting ethical and responsible decision making.

STRUCTURE THE BOARD TO ADD VALUE

The skills, experience and expertise relevant to the position of director held by each director in office at the date of the annual report is included in the Directors' Report. Directors of West Peak Iron Limited are considered to be independent when they are independent of management and free from any business or other relationship that could materially interfere with – or could reasonably be perceived to materially interfere with – the exercise of their unfettered and independent judgment.

In the context of director independence, 'materiality' is considered from both the Group and individual director perspective. The determination of materiality requires consideration of both quantitative and qualitative elements. An item is presumed to be quantitatively immaterial if it is equal to or less than 5% of the appropriate base amount. It is presumed to be material (unless there is qualitative evidence to the contrary) if it is equal to or greater than 10% of the appropriate base amount. Qualitative factors considered include whether a relationship is strategically important, the competitive landscape, the nature of the relationship and the contractual or other arrangements governing it and other factors that point to the actual ability of the director in question to shape the direction of the Group's loyalty.

West Peak Iron Limited
Page | 23

CORPORATE GOVERNANCE STATEMENT (continued)

Structure the board to add value (continued)

The directors that are considered independent are:

Graham Marshall Non-executive Chairman
John Royle Non-executive Director

Notification of Departure: ASX Best Practice Recommendation 2.2 states that the Chairman should be independent, however the Chairman during the 30 June 2012 financial year, David Parker, is not considered independent.

Explanation for Departure: The Board considers that the Group was not of a size, nor are its affairs of such complexity to justify the expense of the appointment of an independent Chairman. The Group's Chairman, Mr David Parker, is considered by the Board not to be independent in terms of the ASX Corporate Governance Council's definition of independent director. However the Board believes that the Chairman is able to and does bring quality and independent judgment to all relevant issues falling within the scope of the role of a Chairman. Following the end of the period the Company appointed an independent non-executive Chairman, Graham Marshall.

Notification of Departure: ASX Best Practice Recommendation 2.3, the role of Chairman and Chief Executive Officer should be separate and distinct, however during the period this was not the case as the Chairman is an Executive Director of the Group.

Explanation for Departure: The Board considers that the Group was not of a size, nor are its affairs of such complexity to justify the expense of a separate Executive Director. The Group has appointed the independent directors committee (that fulfils the role of the nominations committee). Since the end of the period the Company has appointed a separate Executive Director, Mathew Walker, as such the Company now complies with this ASX recommendation.

There are procedures in place, agreed by the Board, to enable directors in the furtherance of their duties to seek independent professional advice at the Group's expense.

The term in office held by each director in office at the date of this report is as follows:

Name	Term in Office
Mathew Walker	2 months
Graham Marshall	31 months
John Royle	31 months

Performance

The performance of the Board and key executives is reviewed regularly. The performance criteria against which directors and executives are assessed are aligned with the financial and non-financial objectives of West Peak Iron Limited. Directors whose performance is consistently unsatisfactory may be asked to retire.

Nomination Committee

Notification of Departure: The Board has not established a separate Nomination Committee as per ASX Best Practice Recommendation 2.4.

Explanation for Departure: The Board considers that the Group is not of a size nor are its affairs of such complexity to justify formation of a nomination committee. The board has formed an Independent Directors Committee which among other tasks has assumed the role and responsibly of the Nomination Committee. The Board as a whole also undertakes the process of reviewing the skill base and experience of existing Directors to enable identification or attributes required in new Directors.

Independent Directors Committee

The Independent Directors Committee of the Board of Directors of the Group assumes the responsibility of the following committees:

Nomination Committee
Audit Committee
Remuneration Committee, including performance review of key executives

West Peak Iron Limited
Page | 24

CORPORATE GOVERNANCE STATEMENT (continued)

Structure the board to add value (continued)

An independent directors committee has been formed which consists of:

Graham Marshall Non-executive Chairman
John Royle Non-executive Director

Graham Marshall has been appointed the Chair of the Independent Directors Committee; he is also the Chairman of the Company. Both members of the Independent Directors Committee are considered Independent Directors.

PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING

Code of Conduct

The Board has adopted a written Board Code of Conduct which applies to the Directors of the Group. The Board has also adopted written Code of Conducts which applies to Directors, employees and key consultants of the Group and supplements the Board Code of Conduct.

The Group is dedicated to delivering outstanding performance for investors and employees. In achieving this objective, all Directors, officers and employees are expected to act with honesty, integrity and responsibility and maintain a strong sense of corporate social responsibility. In maintaining its corporate social responsibility the Group will conduct its business ethically and according to its values, consider the environment and ensure a safe, equal and supportive workplace.

Diversity Policy

The Company is committed to workplace diversity and to ensuring a diverse mix of skills and talent exists amongst its Directors, officers and employees, to enhance Company performance. The Board has adopted a Diversity Policy which addresses equal opportunities in the hiring, training and career advancement of Directors, officers and employees.

Notification of Departure: The Company has not disclosed in its annual report its measurable objectives for achieving gender diversity and progress towards achieving them as per ASX Best Practice Recommendation 3.3.

Explanation for Departure: The Board continues to monitor diversity across the organisation and is satisfied with the current level of gender diversity within the Company. Due to the size of the Company and its small number of employees, the Board does not consider it appropriate at this time, to formally set measurable objectives for gender diversity.

Trading Policy

The Board has adopted a policy in relation to dealings in the securities of the Group which applies to all Directors and employees. Under the policy, Directors are prohibited from short term trading in the Company's securities and Directors and employees are prohibited from dealing in the Company's securities whilst in possession of price sensitive information. The Chairman, or in his absence, the Company Secretary, must be notified of any proposed transaction and must give clearance for the transaction to proceed.

SAFEGUARD INTEGRITY IN FINANCIAL REPORTING

Audit Committee

Notification of Departure: The Board has not established a separate Audit Committee as per ASX Best Practice Recommendation 4.1.

Explanation for Departure: The Board has not established an Audit Committee, however it has established an Independent Directors Committee that assumes the role of the Audit Committee, which meets at least annually to deal with the Audit Committee responsibilities, and which will operate under a charter approved by the Board. It is the Board's responsibility to ensure that an effective internal control framework exists within the entity. This includes internal controls to deal with both the effectiveness and efficiency of significant business processes, the safeguarding of assets, the maintenance of proper accounting records, and the reliability of financial information as well as non financial considerations such as the benchmarking of operational key performance indicators. The Board has assumed responsibility for establishing and maintaining a framework of internal control and ethical standards during the year.

West Peak Iron Limited
Page | 25

CORPORATE GOVERNANCE STATEMENT (continued)

Safeguard integrity in financial reporting (continued)

The primary purpose of the Independent Directors Committee that fulfils the role of the Audit Committee is to assist the Board in fulfilling its statutory and fiduciary responsibilities relating to:

(a) the quality and integrity of the Group's financial statements, accounting policies and financial reporting and disclosure practices;
(b) compliance with all applicable laws, regulations and Group policy;
(c) the effectiveness and adequacy of internal control processes;
(d) the performance of the Group's external auditors and their appointment and removal;
(e) the independence of the external auditor and the rotation of the lead engagement partner; and
(f) the identification and management of business risks.

A secondary function of the Committee is to perform such special reviews or investigations as the Board may consider necessary.

MAKE TIMELY AND BALANCED DISCLOSURE

The Board is committed to the promotion of investor confidence by ensuring that trading in the Group's securities takes place in an efficient, competitive and informed market. In accordance with the continuous disclosure requirements under the ASX Listing Rules, the Group has procedures in place to ensure that any price sensitive information is identified, reviewed by management and disclosed to ASX in a timely manner and that all information provided to ASX is immediately available to shareholders and the market on the Group's website.

RESPECT THE RIGHTS OF SHAREHOLDERS

The Board aims to ensure that shareholders are kept informed of all major developments affecting the Group. Information is communicated to shareholders as follows:

as the Group is a disclosing entity, regular announcements are made to Australian Securities Exchange and to, including half-year accounts, year end financial report;
the Board ensures the annual report includes relevant information about the operations of the Group during the year, changes in the state of affairs and details of future developments; and
the Board encourages full participation of shareholders at the Annual General Meeting to ensure a high level of accountability and identification of the Group's strategies and goals.

RECOGNISE AND MANAGE RISK

The identification, prioritization and effective management of risk, including calculated risk-taking, is viewed as an essential part of the Group's approach to creating long-term shareholder value. Strategic and operational risks are reviewed at least annually as part of the annual strategic planning, business planning, forecasting and budgeting process.

The Group has developed a series of operational risks which the Group believes to be reflective of the industry and geographical locations in which the Group operates. These risk areas are provided here to assist investors to have an understanding of risks faced by the Group and the industry in which we operate and are not an exhaustive list, and include:

fluctuations in commodity prices and exchange rates;
success or otherwise of exploration activities;
reliance on licenses, permits and approvals from governmental authorities which may be withheld, withdraw or made subject to limitations;
loss of key management;
ability to obtain additional financing; and

West Peak Iron Limited
Page | 26

CORPORATE GOVERNANCE STATEMENT (continued)

changed operating, market or regulatory environments.

Recognise and manage risk (continued)

Risk Management Roles and Responsibilities

The Board is responsible for identifying the risks facing the Group, assessing the risks and ensuring that there are controls for these risks, which are to be designed to ensure that any identified risk is reduced to an acceptable level. The Board will review and discuss strategic risks and opportunities as they arise and arising from changes in the Group's business environment regularly and on an as need basis. The board may delegate some of the abovementioned responsibility to management and committees of the board but maintain the overall responsibility for the process.

Management is responsible for designing, implementing and reporting on the adequacy of the Group's risk management and internal control system. Management reports to the Board at least annually, or more frequently as required, on the Group's key risks and the extent to which it believes these risks are being managed. In 2012 the Board reviewed the overall risk profile for the Group and received reports from management on the effectiveness of the Group's management of its material business risks.

Integrity of Financial Reporting

The Board receives regular reports about the financial condition, operating results and budgets of the group. The Executive Director annually provide a formal statement to the Board that in all material respects and to the best of their knowledge and belief:

the Group's financial reports present a true and fair view of the Group's financial condition and operational results are in accordance with relevant accounting standards; and
the Group's risk management and internal control systems are sound, appropriate and operating efficiently and effectively.

REMUNERATE FAIRLY AND RESPONSIBLY

Notification of Departure: The Board has not established a separate Remuneration Committee as per ASX Best Practice Recommendation 8.1.

Explanation for Departure: The Board has not established a Remuneration Committee, however it has established an Independent Directors Committee that assumes the role of the Remuneration committee, which meets at least annually to deal with the Remuneration Committee responsibilities, and which will operate under a charter approved by the Board.

It is the Group's objective to provide maximum stakeholder benefit from the retention of a high quality Board and executive team by remunerating directors and key executives fairly and appropriately with reference to relevant employment market conditions. To assist in achieving this objective, the independent Directors / Remuneration Committee reviews the nature and amount of executive directors' and officers' emoluments to the Group's financial and operational performance, however no performance pay is provided. Key Executives are issued with Company Options.

The expected outcomes of the remuneration structure are:

retention and motivation of key executives;
attraction of high quality management to the Group; and
Company options allow executives to share the success of West Peak Iron Limited.

For a full discussion of the Group's remuneration philosophy and framework and the remuneration received by directors and executives in the current period please refer to the remuneration report, which is contained within the Directors' Report.

There is no scheme to provide retirement benefits, other than statutory superannuation to all directors.

West Peak Iron Limited
Page | 27

HLB Mann Judd
Accountants | Business and Financial Advisers

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of West Peak Iron Limited for the year ended 30 June 2012, I declare that to the best of my knowledge and belief, there have been no contraventions of:

a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b) any applicable code of professional conduct in relation to the audit.

This declaration is in respect of West Peak Iron Limited.

Perth, Western Australia
27 September 2012

N G NEILL
Partner, HLB Mann Judd

HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4 130 Stirling Street, Perth WA 6000 PO Box 8124 Perth BC WA 684. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: [email protected]. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of HLB International, a world-wide organisation of accounting firms and business advisers

West Peak Iron Limited
Page | 28

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2012

	Notes	2012 $	2011 $
Continuing operations
Other income	2	110,095	69,311
Administration expenses		(103,398)	(290,128)
Director fees		(390,611)	(344,887)
Occupancy expenses		(81,740)	(60,000)
Exploration expenditure written off		(78,989)	(39,684)
Other expenses	2	(322,444)	(422,676)
Loss before income tax expense		(867,087)	(1,088,064)
Income tax expense	3	-	-
Loss after tax from continuing operations		(867,087)	(1,088,064)
Net loss for the period		(867,087)	(1,088,064)
Other comprehensive income
Exchange differences on translation of foreign operations		(2,949)	-
Total comprehensive loss for the period		(870,036)	(1,088,064)
Basic loss per share (cents per share)	4	(3.25)	(5.81)

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 29

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

	Note	Consolidated
		2012 $	2011 $
Assets
Current Assets
Cash and cash equivalents	8	520,974	1,414,908
Trade and other receivables	9	75,005	17,506
Total Current Assets		595,979	1,432,414
Non-Current Assets
Plant and equipment	10	41,443	8,608
Deferred exploration expenditure	11	1,917,458	1,385,860
Total Non-Current Assets		1,958,901	1,394,468
Total Assets		2,554,880	2,826,882
Liabilities
Current Liabilities
Trade and other payables	12	106,170	98,392
Total Current Liabilities		106,170	98,392
Total Liabilities		106,170	98,392
Net Assets		2,448,710	2,728,490
Equity
Issued capital	6	3,858,577	3,268,321
Reserves	7	555,211	558,160
Accumulated losses		(1,965,078)	(1,097,991)
Total Equity		2,448,710	2,728,490

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 30

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012

Consolidated	Accumulated
	Issued Capital $	Losses $	Reserves $	Total Equity $
Balance at 1 July 2010	161,941	(9,927)	2,134	154,148
Loss for the year	-	(1,088,064)	-	(1,088,064)
Total comprehensive income/(loss) for the period	-	(1,088,064)	-	(1,088,064)
Shares issued during the year	3,300,000	-	-	3,300,000
Transaction costs on share issue	(193,620)	-	-	(193,620)
Recognition of share-based payments	-	-	556,026	556,026
Balance at 30 June 2011	3,268,321	(1,097,991)	558,160	2,728,490
Balance at 1 July 2011	3,268,321	(1,097,991)	558,160	2,728,490
Loss for the year	-	(867,087)	-	(867,087)
Exchange differences arising on translation of foreign operations	-	-	(2,949)	(2,949)
Total comprehensive income/(loss) for the period	-	(867,087)	(2,949)	(870,036)
Shares issued during the year	618,907	-	-	618,907
Transaction costs on share issue	(28,651)	-	-	(28,651)
Balance at 30 June 2012	3,858,577	(1,965,078)	555,211	2,448,710

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 31

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2012

	Note	Consolidated
		2012 $	2011 $
		Inflows/(Outflows)
Cash flows from operating activities
Payments to suppliers and employees		(930,890)	(678,964)
Interest received		52,394	53,840
Net cash (used in) operating activities	7	(878,496)	(625,124)
Cash flows from investing activities
Payments for property, plant and equipment		(47,527)	(12,338)
Payments for exploration and evaluation expenditure		(558,167)	(461,805)
Net cash (used in) investing activities		(605,694)	(474,143)
Cash flows from financing activities
Proceeds from issue of shares		631,967	2,600,000
Payment for share issue costs		(41,711)	(193,620)
Net cash provided by financing activities		590,256	2,406,380
Net increase/(decrease) in cash held		(893,934)	1,307,113
Cash and cash equivalents at the beginning of the period	7	1,414,908	107,795
Cash and cash equivalents at the end of the period		520,974	1,414,908

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 32

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law.

The accounting policies detailed below have been consistently applied to all of the years presented unless otherwise stated. The financial statements are for the consolidated entity consisting of West Peak Iron Limited and its subsidiary.

The financial report has also been prepared on a historical cost basis. Cost is based on the fair values of the consideration given in exchange for assets.

The financial report is presented in Australian dollars.

The Group is a listed public company, incorporated in Australia and operating in Australia and Liberia. The entity's principal activity is exploration for natural resources.

(b) Adoption of new and revised standards

Changes in accounting policies on initial application of Accounting Standards

In the year ended 30 June 2012, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for the current annual reporting period.

Standards and Interpretations adopted with no effect on the financial statements:

It has been determined by the Directors that there is no impact, material or otherwise, of any other new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

Standards and Interpretations in issue not yet adopted:

The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year ended 30 June 2012. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

(c) Statement of compliance

The financial report was authorised for issue on 27 September 2012.

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

(d) Basis of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of West Peak Iron Limited ('Company', 'Group' or 'Parent Entity') as at 30 June 2012 and the results of all subsidiaries for the year then ended. West Peak Iron Limited and its subsidiaries are referred to in this financial report as the Group or the Consolidated Entity.

The financial statements of the subsidiaries are prepared for the same reporting period as the Parent Entity, using consistent accounting policies.

West Peak Iron Limited
Page | 33

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basis of Consolidation (continued)

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. Control exists where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing when the Group controls another entity.

Unrealised gains or transactions between the Group and its associates are eliminated to the extent of the Group's interests in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Group.

When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint controlled entity or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

(e) Critical accounting judgements and key sources of estimation uncertainty

The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the estimate is revised if it affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Share-based payment transactions:

The Group measures the cost of equity-settled transactions by reference to the fair value of the services provided. Where the services provided cannot be reliability estimated fair value is measure by reference to the fair value of by the equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a Black and Scholes model.

West Peak Iron Limited
Page | 34

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(f) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Interest income

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

(g) Cash and cash equivalents

Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(h) Trade and other receivables

Trade receivables are measured on initial recognition at fair value. Trade receivables are generally due for settlement within periods ranging from 15 days to 30 days.

Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off by reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Group will not be able to collect all amounts due according to the original contractual terms. Factors considered by the Group in making this determination include known significant financial difficulties of the debtor, review of financial information and significant delinquency in making contractual payments to the Group.

The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the statement of comprehensive income.

(i) Derecognition of financial assets and financial liabilities

Financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial assets) is derecognised when:

the rights to receive cash flows from the asset have expired;
the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass-through' arrangement; or
the Group has transferred its rights to receive cash flows from the asset and either:

(a) has transferred substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

West Peak Iron Limited
Page | 35

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(i) Derecognition of financial assets and financial liabilities (continued)

When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group's continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration received that the Group could be required to repay.

When continuing involvement takes the form of a written and/or purchased option (including a cash-settled option or similar provision) on the transferred asset, the extent of the Group's continuing involvement is the amount of the transferred asset that the Group may repurchase, except that in the case of a written put option (including a cash-settled option or similar provision) on an asset measured at fair value, the extent of the Group's continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.

(ii) Financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

(j) Foreign currency translation

Both the functional and presentation currency of West Peak Iron Limited is Australian dollars. The functional currency is US dollars and presentation currency is Australian dollars for West Peak Iron Limited (Liberia). Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance date. All exchange differences in the consolidated financial report are taken to profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

(k) Income tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance date.

Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

West Peak Iron Limited
Page | 36

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(k) Income tax (continued)

when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:

when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

(l) Other taxes

Revenues, expenses and assets are recognised net of the amount of GST except:

when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

West Peak Iron Limited
Page | 37

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(m) Impairment of assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).

An assessment is also made at each balance date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

(n) Trade and other payables

Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.

(o) Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate assets but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability.

West Peak Iron Limited
Page | 38

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(p) Share-based payment transactions

The Group provides benefits to employees (including senior executives) of the Group in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions).

The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted.

In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of West Peak Iron Limited (market conditions) if applicable.

The cumulative expense recognised for equity-settled transactions at each balance date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group's best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The statement of comprehensive income charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition.

If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.

If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.

Cash settled transactions:

The Group also provides benefits to employees in the form of cash-settled share-based payments, whereby employees render services in exchange for cash, the amounts of which are determined by reference to movements in the price of the shares of West Peak Iron Limited.

The cost of cash-settled transactions is measured initially at fair value at the grant date using the Black-Scholes formula taking into account the terms and conditions upon which the instruments were granted. This fair value is expensed over the period until vesting with recognition of a corresponding liability. The liability is re-measured to fair value at each balance date up to and including the settlement date with changes in fair value recognised in profit or loss.

(q) Issued capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(r) Earnings per share

Basic earnings per share is calculated as net profit or loss attributable to members of the parent, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

West Peak Iron Limited
Page | 39

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(r) Earnings per share (continued)

Diluted earnings per share is calculated as net profit or loss attributable to members of the parent, adjusted for:

costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

(s) Exploration and evaluation

Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:

(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:

(a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortised of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.

West Peak Iron Limited
Page | 40

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(t) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of West Peak Iron Limited.

(u) Going Concern

The financial report has been prepared on the basis of accounting principles applicable to a going concern, which assumes the commercial realisation of the future potential of the Group's assets and the discharge of its liabilities in the normal course of business.

For the financial year ended 30 June 2012, the Group incurred a loss of $867,087 and a net cash outflow of $878,496 from operations as disclosed in the statement of comprehensive income and the statement of cash flows, respectively.

As at 30 June 2012, the Group had $489,809 in net working capital and $520,974 in cash and cash equivalents.

Subsequent to year end, the Company raised total proceeds of $907,376 via a Placement and Entitlement issue of shares. Accordingly, the Directors consider that the Group is a going concern and will have sufficient funding to ensure that it can continue to fund its operations during the twelve month period from the date of this financial report.

NOTE 2: REVENUES AND EXPENSES

Consolidated
	2012 $	2011 $
(a) Other income
Interest income	52,394	53,840
Other	57,701	15,471
	110,095	69,311
(b) Expenses
Administrative expenses	103,398	45,970
ASX and registry fees	32,568	46,848
Computer and software expenses	9,363	2,725
Legal and professional	174,866	136,434
Travel and promotional expenses	57,277	53,727
Other	48,370	4,424
Directors fees	390,611	344,887
Exploration expenditure written off	78,989	39,684
Rent	81,740	60,000
Share based payments expense	-	422,676
	977,182	1,157,375

West Peak Iron Limited
Page | 41

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 3: INCOME TAX

Current tax expense	Consolidated
	2012 $	2011 $
(a) Income tax benefit	-	-
(b) Numerical reconciliation between tax-expense and pre-tax net loss
Loss from ordinary activities	(870,036)	(1,088,064)
	(870,036)	(1,088,064)
Income tax using the Group's domestic tax rate of 30% (2011: 30%)	(261,011)	(326,419)
Share based payments	-	126,803
Other non-deductible expenses/(deductible tax adjustments)	13,002	11,401
Capital raising costs	(5,525)	(12,401)
Capitalised exploration expenditure	(25,090)	(334,703)
Tax losses not brought to account as a deferred tax asset	278,624	535,319
Income tax benefit/(expense) attributable to entity	-	-

(c) Tax losses

The tax effect of unused losses of $2,764,978 (2011: $1,852,183) has not been recognised as a deferred tax asset as the future recovery of these losses is subject to the Group satisfying the requirements imposed by the regulatory authorities. The benefit of deferred tax assets not brought to account will only be brought to account if:

Future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realized.
The conditions for deductibility imposed by tax legislation continue to be complied with and no changes in tax legislation adversely affect the Group in realising the benefit.

(d) Unrecognised temporary differences

Net deferred tax assets (calculated at 30%) have not been recognised in respect of the following items:

Capital raising costs recognised directly in equity	43,295	48,820
Provisions and Accruals	16,795	5,707
Income tax losses not brought to account	829,493	555,655
Unrecognised deferred tax assets relating to the above temporary differences	893,724	610,182
Deferred tax liabilities (calculated at 30%) have not been recognised in respect of the following items:
Capitalised exploration expenditure	377,024	351,934

West Peak Iron Limited
Page | 42

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 4: LOSS PER SHARE

	Consolidated
	2012	2011
	Cents per share	Cents per share
Basic loss per share
Continuing operations	(3.25)	(5.81)
	$	$
Earnings	(867,087)	(1,088,604)
	Number	Number
Weighted average number of ordinary shares for the purposes of basic loss per share:	26,650,282	18,891,781

There are no potential ordinary shares that are considered dilutive, as a result no dilutive earnings per share has been disclosed.

NOTE 5: SEGMENT REPORTING

Identification of reportable segments

The Group has identified its operating segments based on the investment decisions of the board and used by executive management (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The operating segments are identified by management based on the nature of its interests and projects. Discrete financial information about each of these projects is reported to the executive management team regularly.

Location of interests and nature of projects

Western Australia

West Peak has built up a land holding in the emerging Mid-West and Yilgarn iron provinces of Western Australia where major iron projects are currently being commissioned and the required infrastructure is being built. West Peak holds an exploration portfolio of 33 tenements for approximately 1,955 km² that consists of 25 granted licences (1,012 km²) and eight pending licences (944 km²) which are prospective for a range of commodities. Field work programs completed in 2012 have resulted in the identification of a DSO iron target at the Highway Prospect in the Paynes Find Project.

Liberia

Accounting policies and inter-segment transactions

The accounting policies used by the Group in reporting segments internally are the same as those contained in Note 1 to the accounts and in the prior period.

West Peak Iron Limited
Page | 43

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 5: SEGMENT REPORTING (continued)

Geographical segments

	Exploration Activities Australia $	Exploration Activities Liberia $	Unallocated $	Total $
30 June 2012
Segment revenue	57,701	-	52,394	110,095
Exploration written off	(38,764)	(40,225)	-	(78,989)
Other expenses	-	(185,786)	(712,407)	(898,193)
Segment result	18,937	(226,011)	(660,013)	(867,087)
Segment assets	1,256,746	660,711	637,423	2,554,880
Segment liabilities	-	(14)	(106,156)	(106,170)
	Exploration Activities Australia $	Exploration Activities Liberia $	Unallocated $	Total $
---	---	---	---	---
30 June 2011
Segment revenue	-	6,380	62,931	69,311
Exploration written off	(16,684)	(43,809)	-	(60,493)
Other expenses	-	-	(1,096,882)	(1,096,882)
Segment result	(16,684)	(37,429)	(1,033,951)	(1,088,064)
Segment assets	1,189,797	212,748	1,441,022	2,843,567
Segment liabilities	(29,597)	-	(68,795)	(98,392)

West Peak Iron Limited
Page | 44

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 6: ISSUED CAPITAL

Consolidated
	2012	2011
	$	$
Ordinary shares
At 1 July	3,268,321	161,941
Shares issued	618,907	3,300,000
Less share issue costs	(28,651)	(193,620)
At 30 June	3,858,577	3,268,321
Movements in ordinary shares on issue	No.	No.
At 1 July	24,000,001	7,500,001
Movements during the period:
IPO shares issued	-	13,000,000
Shares issued	4,144,535	3,500,000
At 30 June	28,144,536	24,000,001

Ordinary shareholders entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

NOTE 7: RESERVES

Foreign currency translation reserve
At 1 July	-	-
Currency translation differences	(2,949)	-
At 30 June	(2,949)	-
Share based payments reserve
At 1 July	558,160	2,134
Options issued	-	556,026
At 30 June	558,160	558,160
Movements in Company Options on issue	No.	No.
At 1 July	12,500,000	5,000,000
Movements during the period:
Options issued	1,750,000	7,500,000
Options exercised	(644,535)	-
At 30 June	13,605,465	12,500,000

West Peak Iron Limited
Page | 45

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 7: RESERVES (continued)

Company options carry no voting rights and carry no right to dividends. Company options are unlisted. 13,105,465 Company options are exercisable at $0.20 on or before 30 June 2013 and 500,000 Company options are exercisable at $0.30 on or before 30 June 2013. See note 22 for full details of Options valuations.

Nature and purpose of reserves

Share based payments reserve

This reserve is used to record the value of equity benefits provided to employees and directors as part of their remuneration. Refer to note 22 for further details of these plans.

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. It is also used to record the effect of hedging net investments in foreign operations.

NOTE 8: CASH AND CASH EQUIVALENTS

Consolidated
	2012	2011
	$	$
Cash at hand and in bank	260,974	204,908
Short term deposits	260,000	1,210,000
	520,974	1,414,908

Cash at bank earns interest at floating rates based on daily deposit rates.

The Group did not engage in any non-cash financing activities for the year ended 30 June 2012 and was not party to any borrowing facilities for the same period.

As at balance date, the Group has provided written security in respect of 18 exploration tenements with the Department of Mines and Petroleum, to the value of $5,000 each, totalling $90,000.

Reconciliation of loss for the year to net cash flows from operating activities

Loss after tax for the period	(867,087)	(1,088,064)
Adjustments for:
Depreciation on non-current assets	14,380	2,608
Share based payments expense	-	422,676
Exploration expenditure written off	78,989	39,684
Changes in assets and liabilities:
(Increase)/decrease in trade receivables and prepayments	(57,499)	(13,578)
Increase/(decrease) in trade payables and accruals	(47,279)	11,550
Net cash (used in) operating activities	(878,496)	(625,124)

NOTE 9: TRADE AND OTHER RECEIVABLES

Goods and services tax receivables	11,979	6,965
Prepayments	34,001	10,541
Other receivables	29,025	-
Trade and other receivables balance at 30 June	75,005	17,506

West Peak Iron Limited
Page | 46

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 10: PLANT AND EQUIPMENT

Plant and equipment at cost	58,583	11,216
Accumulated depreciation	(17,140)	(2,608)
Balance at 30 June	41,443	8,608

Movements in the carrying amounts of plant and equipment between the beginning and the end of the current financial year:

Consolidated
	2012	2011
	$	$
Balance at 1 July	8,608	-
Additions	47,215	11,216
Depreciation expense	(14,380)	(2,608)
Balance at 30 June	41,443	8,608

NOTE 11: DEFERRED EXPLORATION EXPENDITURE

Costs carried forward in respect of:

Exploration and evaluation phase – at cost

Balance at the beginning of the year / period	1,385,860	57,437
Expenditure incurred
Santy Well	48,340	347,158
Pinyalling (including Warriedar)	26,735	717,150
Dandaraga	45,678	13,853
Other (WA)	24,645	54,198
Liberia	465,189	235,748
Less: exploration expenditure written off	(78,989)	(39,684)
Total Exploration Expenditure balance at 30 June	1,917,458	1,385,860

The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the discovery of commercially viable mineral or other natural resource deposits and their successful development and commercial exploration or sale of the respective mining areas. Exploration expenditure was written off primarily due to voluntary surrender of licenses and tenements.

NOTE 12: TRADE AND OTHER PAYABLES (CURRENT)

Trade payables*	50,186	41,390
Accrued expenses	55,984	57,002
Balance at 30 June	106,170	98,392

Trade payables are non-interest bearing and are normally settled on 60-day terms

West Peak Iron Limited
Page | 47

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 13: FINANCIAL INSTRUMENTS

	Consolidated
	2012	2011
	$	$
Financial assets
Receivables	75,005	17,506
Cash and cash equivalents	520,974	1,414,908
Balance at end of year	595,979	1,432,414
Financial liabilities
Trade and other payables	106,155	98,392
Balance at end of year	106,155	98,392

The following table details the expected maturity/s for the Group's non-derivative financial assets. These have been drawn up based on undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group anticipates that the cash flow will occur in a different period.

	Weighted average effective interest rate %	Less than 1 month $	1 – 3 Months $	3 months – 1 year $	1 – 5 years $	5+ years $
2012
Non-interest bearing	-	335,979	-	-	-	-
Variable interest rate instruments	4.1	-	260,000	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		335,979	260,000	-	-	-
2011
Non-interest bearing	-	221,954	-	-	-	-
Variable interest rate instruments	5.5	1,210,460	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		1,432,414	-	-	-	-

The following tables detail the Group's remaining contractual maturity/s for its non-derivative financial liabilities. These are based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

	Weighted average effective interest rate %	Less than 1 month $	1 – 3 Months $	3 months – 1 year $	1 – 5 years $	5+ years $
2012
Non-interest bearing	-	106,170	-	-	-	-
Variable interest rate instruments	-	-	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		106,170	-	-	-	-
2011
Non-interest bearing	-	98,392	-	-	-	-
Variable interest rate instruments	-	-	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		98,392	-	-	-	-

West Peak Iron Limited
Page | 48

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 13: FINANCIAL INSTRUMENTS (continued)

The carrying amount of cash and cash equivalents approximates fair value because of their short-term maturity.

Financial risk management objectives and policies:

The Group has exposure to the following risks from their use of financial instruments:

Credit risk
Liquidity risk
Interest rate risk
Market risk
Capital risk

This note presents information about the Group's exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. The Board has overall responsibility for the establishment and oversight of the risk management framework. The Board reviews and agrees policies for managing each of these risks and they are summarised below.

The Group's principal financial instruments comprise cash and short term deposits. The main purpose of the financial instruments is to earn the maximum amount of interest at a low risk to the Group. The Group also has other financial instruments such as trade debtors and creditors which arise directly from its operations. For the year under review, it has been the Group's policy not to trade in financial instruments.

(a) Credit risk management

Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts with entities that are rated the equivalent of investment grade and above. An example is that the Group only dealt with the NAB for Term Deposits during the year. This information is supplied by independent rating agencies where available and, if not available, the Group uses publicly available financial information and its own trading record to rate its major customers and suppliers.

The Group's exposure and the credit ratings of its counter-parties are continuously monitored. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Board annually.

The Group does not have any significant credit risk exposure to the NAB. The credit risk on liquid funds and Term Deposits is reduced because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the Group's maximum exposure to credit risk without taking account of the value of any collateral obtained.

(b) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity risk management framework for the management of the Group's short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and banking facilities and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Group did not have any undrawn facilities at its disposal as at balance date.

(c) Interest rate risk management

The Group is exposed to interest rate risk as the Group deposits the bulk of the Group's cash reserves in Short Term Deposits with the NAB or other acceptable Australian Banking entities. The risk is managed by the Group by maintaining an appropriate mix between short term deposits and at call deposits. The Group's exposure to interest rate on financial assets is detailed in the interest rate risk sensitivity analysis section of this note.

West Peak Iron Limited
Page | 49

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 13: FINANCIAL INSTRUMENTS (continued)

Interest rate risk sensitivity analysis

The sensitivity analyses below have been determined based on the Group's cash and cash equivalent exposure to interest rates. A 100 basis point increase or decrease is used when reporting interest rate risk. The Group's sensitivity to interest rates may decrease during the current period depending on the use of the cash reserves of the Group.

The effect on loss and equity as a result of change in the interest rate, with all other variable remaining constant would be as follows:

	2012	2011
	$	$
Change in Loss
Increase in interest rate by 1%	2,600	12,105
Decrease in interest rate by 1%	(2,600)	(12,105)
Change in Equity
Increase in interest rate by 1%	2,600	12,105
Decrease in interest rate by 1%	(2,600)	(12,105)

(a) Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The Group is exposed to movements in market interest rates on short term deposits. The Group does not have short or long term debt, and therefore the risk is minimal. The Group limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have acceptable credit ratings.

The Group may be exposed to currency risk on international investments and purchases that are denominated in a currency other than the respective currencies of the Group. As the Group has international projects it is exposed to currency risk. There has been no change to the Group's exposure to market risks or the manner in which it manages and measures the risk from the previous period.

(b) Capital Risk Management

The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders. Due to the nature of the Group's activities, being mineral exploration, it does not have ready access to credit facilities and therefore is not subject to any externally imposed capital requirements, with the primary source of Group funding being equity raisings. Accordingly, the objective of the Group's capital risk management is to balance the current working capital position against the requirements to meet exploration programmes and corporate overheads. This is achieved by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required.

West Peak Iron Limited
Page | 50

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2012

NOTE 14: COMMITMENTS AND CONTIGENCIES

Officers Remuneration Commitments

The Group entered into remuneration commitments with all the non-executive directors of the Group effective 1 July 2010, for all services rendered from this date forward. The non-executive director salaries has been set at $30,000. Remuneration of non-executive directors is reviewed annually.

The Executive Services Agreement continues for a period of 2 years, with an option to extend for a further 1 year term, unless terminated in accordance with the relevant provisions of the Executive Services Agreement. The Executive Services Agreement contains standard termination provisions under which the Group can terminate the agreement as a result of misconduct or alternatively the agreement can be terminated with 6 months notice for no reason, however the parties have agreed to finalise the existing Executive Services Agreement as at the end of November 2012 and re-negotiate a new Executive Services Contract at this date for future services provided. In addition, Mr Parker is entitled to all unpaid remuneration and entitlements up to the date of termination.

The Executive Services Agreement continues for a period of 2 years, with an option to extend for a further 1 year term, unless terminated in accordance with the relevant provisions of the Executive Services Agreement. The Executive Services Agreement contains standard termination provisions under which the Group can terminate the agreement as a result of misconduct or alternatively the agreement can be terminated with 3 months by either party by written notice. In addition, Mr Tomlinson is entitled to all unpaid remuneration and entitlements up to the date of termination.

Administration Agreement

Subsequent to the end of the year on 1 September 2012 the Group entered into an agreement with Cicero Corporate Services Pty Ltd (Cicero) defining the terms of engagement for the provision of administration services by Cicero as a contractor to the Group. Cicero will provide the office rent, book-keeping, company secretarial and administration services to the Company for a monthly fee of $12,000 plus GST. The agreement can be terminated by 1 months notice by either party.

West Peak Iron Limited
Page | 51

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 14: COMMITMENTS AND CONTINGENCIES (continued)

Tenement Related Commitments and Contingencies

	Consolidated
	2012	2011
	$	$
Commitments for exploration expenditure on Western Australian Projects
Not longer than 1 year	624,402	483,385
Longer than 1 year and less than 2 years	624,402	483,385
Longer than 2 year and less than 5 years	1,873,205	1,450,155
Commitments for exploration expenditure on Liberian Projects
Not longer than 1 year	626,750	380,184
Longer than 1 year and less than 2 years	991,250	458,000
Longer than 2 year and less than 5 years	2,973,750	668,000

Tenement Related Commitments and Contingencies

Western Australia

West Peak has built up a land holding in the emerging Mid-West and Yilgarn iron provinces of Western Australia where major iron projects are currently being commissioned and the required infrastructure is being built. West Peak holds an exploration portfolio of 33 tenements for approximately 1,955 km2 that consists of 25 granted licences (1,012 km2) and eight pending licences (944 km2) which are prospective for a range of commodities.

Tenement Security

As at the balance date, the Group has provided written security in respect of 25 exploration tenements with the Department of Mines and Petroleum, to the value of $5,000 each, totalling $125,000. The Group has also provided written security in respect of 8 tenement applications, at $5,000 totals $40,000 (if these tenements are granted). This binds the Group to the provisions of the Mining Act 1978.

Western Australian - Granted Tenement schedule as at 18th September 2012

TID	PROJECT	OWNERSHIP	EXPDATE
E29/0804	DANDARAGA	100%	13-Oct-16
E57/0839	DANDARAGA	100%	18-May-16
E57/0845	DANDARAGA	100%	30-Jun-16
E57/0854	DANDARAGA	100%	14-Dec-16
E57/0869	BLACK HILL	100%	11-Oct-16
E57/0878	BULGA DOWNS	100%	19-Oct-16
E58/0395	MOUNT MAGNET	100%	06-Sep-16
E59/1276	SANTY WELL	90%	20-Nov-12
E59/1362	PINYALLING	90%	30-Sep-13
E59/1380	PINYALLING	90%	05-Aug-14
E59/1487	KIRKALOCKA	90%	10-Mar-16
E59/1620	PINYALLING	90%	14-Dec-16
E59/1622	PINYALLING	90%	01-Mar-16
E59/1677	SANTY WELL	100%*	18-Jan-16
E59/1678	SANTY WELL	100%*	18-Jan-16

West Peak Iron Limited
Page | 52

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 14: COMMITMENTS AND CONTIGENCIES (continued)

Western Australian - Granted Tenement schedule as at 18th September 2012 (continued)

E59/1681	PAYNES FIND	100%	26-May-16
E59/1682	PINYALLING	100%	26-May-16
E59/1692	PAYNES FIND	100%	30-Jun-16
E59/1696	PINYALLING	100%	04-Jul-16
E59/1721	PAYNES FIND	100%	10-Aug-16
E59/1747	NARNDEE	100%	01-Sep-16
E59/1748	NARNDEE	100%	14-Dec-16
E59/1765	TALLERING	100%	22-Dec-16
E59/1766	TALLERING	100%	22-Dec-16
P59/1893	PINYALLING	90%	07-Apr-14

Santy Well tenements E59/1677-8 as subject to an Earn In with Cohiba Minerals, whereby Cohiba Minerals Ltd can earn up to 51% by spending $150,000, however current ownership is 100%.

Western Australia - Tenement application schedule as at 18th September 2012

TID	PROJECT	OWNERSHIP
E21/0156	CUE	100%
E57/0900	DANDARAGA	100%
E59/1476	KIRKALOCKA	90%
E59/1722	PAYNES FIND	100%
E59/1723	PINYALLING	100%
E59/1767	TALLERING	100%
E59/1806	NINGAN	100%
P59/1940	PAYNES FIND	100%

Liberia

West Peak holds two granted Exploration Licences and two granted Reconnaissance Licences for a total area of 1,692 km² in the Grand Bassa, Bomi, Bong and River Cess counties. Exploration licenses run for a period of three years which can be extended by a period of two years. Reconnaissance licenses run for a period of six months which can be extended by an period of six months or an application can be made to convert the Reconnaissance license to an Exploration License. Expenditure Commitments for Exploration Licenses is $3.75 per Ha in year one, $7.50 per Ha in year two and $11.25 per Ha in year three. The annual Exploration License rent payment is based on a license fee of $5,000 plus a Surface Rental Payment of $0.50 per Ha. During the period the Group lodged applications to convert the two Reconnaissance Licenses to Exploration Licenses. The Group lodged a voluntary relinquishment for MRL13018 and MRL 13020 and a reduction of size of MEL12013 to 80 Km² during the period. The Company has also provided two Environmental Security Bonds in respect to the Bomi South and Grand Bassa Exploration Licenses, totalling $25,050 and $31,650 respectively. In subsequent years the Company has to provide Environmental Bonds equal to 15% of the approved exploration work programs.

Liberia – Granted Tenement Schedule
Granted Tenement schedule as at 23 September 2012

License ID	% Ownership	License Type	Project Name	Area Km2	Expiry Date
MEL12012	100%	Exploration	Bomi South	561	14-Apr-14
MEL12013	100%	Exploration	Grand Bassa	85	14-Apr-14
MRL13021	100%	Reconnaissance	Mount Koklun	128	23-May-12
MRL13022	100%	Reconnaissance	Bobo Creek	198	23-May-12

West Peak Iron Limited
Page | 53

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 15: EVENTS AFTER THE BALANCE DATE

On 2 August 2012 the Company issued 4,105,464 shares at 0.05 to raise $205,273 before costs.

On 13 September 2012 the Company issued 14,022,061 shares at 0.05 pursuant to the Entitlement Issue to raise $701,103 before costs.

NOTE 16: DIRECTORS AND EXECUTIVES DISCLOSURES

(a). Details of Directors' and Executives

The following persons were directors and executives of West Peak Iron Limited during the financial year:

David Parker Executive Chairman (resigned 29 July 2012) and Joint Company Secretary
Graham Marshall Non-executive Chairman
John Royle Non-executive Director
Shane Tomlinson Exploration Manager
Mathew Walker Executive Director (appointed 29 July 2012 - subsequent to year end)

Directors and executives remuneration has been included in the Remuneration Report section of the Directors' Report.

(b) Option holdings of Directors and Executives

30 June 2012	Balance at 30 June 2011	Granted as Remuneration^{1}	Options Exercised	Net Change Other	Balance at end of Period
Directors
David Parker	3,000,000	-	-	-	3,000,000
Graham Marshall	1,000,000	-	-	-	1,000,000
John Royle	1,000,000	-	-	-	1,000,000
Executives
Shane Tomlinson	1,500,000^{1}	-	-	-	1,500,000
Total	6,500,000	-	-	-	6,500,000

West Peak Iron Limited
Page | 54

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 16: DIRECTORS AND EXECUTIVES DISCLOSURES (continued)

(c) Shareholdings of Directors and Executives

30 June 2012	Balance at 30 June 2011	Received as Remuneration	On Exercise of Options	Net Change Other^{3}	Balance at end of Period
Directors
David Parker	2,520,001	-	-	44,130	2,564,131^{1}
Graham Marshall	890,000	-	-	-	890,000^{2}
John Royle	430,000	-	-	-	430,000
Executives
Shane Tomlinson	10,000	-	-	-	10,000^{3}
Total	3,800,001	-	-	-	3,850,001

1 2,544,130 Shares and options held in the name of Cobblestones Corporate Pty Ltd ATF The DRP Investment Trust, 10,000 held in the name of Cobblestone Corporate Pty Ltd ATF The DRP (2006) Super Fund (entities controlled by David Parker) and 10,001 shares held in the name of David Parker.
2 870,000 Shares and options held in the name of Tynebridge Holdings Pty Ltd ATF The Marshall Family Trust an entity controlled by Graham Marshall. 10,000 held in the name of Graham Marshall and 10,000 held in the name of Lynette Marshall (spouse of Graham Marshall).
3 On market trade.

(d) Option holdings of Directors and Executives

30 June 2011	Balance at 30 June 2010	Granted as Remuneration^{1}	Options Exercised	Net Change Other	Balance at end of Period
Directors
David Parker	3,000,000	-	-	-	3,000,000
Graham Marshall	1,000,000	-	-	-	1,000,000
John Royle	1,000,000	-	-	-	1,000,000
Executives
Shane Tomlinson	-	1,500,000	-	-	1,500,000
Total	5,000,000	1,500,000	-	-	6,500,000

West Peak Iron Limited
Page | 55

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 16: DIRECTORS AND EXECUTIVES DISCLOSURES (continued)

(e) Shareholdings of Directors and Executives

30 June 2011	Balance at 30 June 2010	Received as Remuneration	On Exercise of Options	Net Change Other	Balance at end of Period
Directors
David Parker	2,500,001	-	-	20,000	2,520,001
Graham Marshall	870,000	-	-	20,000	890,000
John Royle	430,000	-	-	-	430,000
Executives
Shane Tomlinson	-	-	-	10,000	10,000
Total	3,800,001	-	-	50,000	3,850,001

NOTE 17: RELATED PARTY DISCLOSURES

On 1 July 2010, the Group entered into an agreement with Cicero Corporate Services Pty Ltd (an entity Mr Parker and Mr Walker hold a 33.3% equity stake) (Cicero) defining the terms of engagement for the provision of administration services by Cicero as a contractor to the Group. Cicero will provide the office rent and administration services to the Group for a monthly fee of $5,000 plus GST. Cicero may be requested to make available additional services (i.e. bookkeeping) at an hourly rate of $75 plus GST. The agreement can be terminated by three months notice by either party. Cicero Corporate Services Pty Ltd was paid fees totalling $122,656 during the year ended 30 June 2012 (2011:$75,222) pursuant to the Administration Agreement. Subsequent to the end of the Period on 1 September 2012 the Group entered into an agreement with Cicero Corporate Services Pty Ltd (Cicero) defining the terms of engagement for the provision of administration services by Cicero as a contractor to the Group. Cicero will provide the office rent, book-keeping, company secretarial and administration services to the Company for a monthly fee of $12,000 plus GST. The agreement can be terminated by 1 months notice by either party.

Pulse Design, an entity controlled by Mr Royle's spouse, was engaged under commercial terms to provide print design services, fees paid to Pulse Design during the year totalled $8,938.

NOTE 18: DIVIDENDS

The directors of the Group have not declared any dividend for the year ended 30 June 2012.

NOTE 19: AUDITOR'S REMUNERATION

The auditor of West Peak Iron Limited is HLB Mann Judd.

	2012 $	2011 $
Amounts received or due and receivable by HLB Mann Judd for:
An Independent Accountants Report prepared for the Group's Prospectus	-	5,000
Audit or review of the financial statements	22,400	20,000
Total	22,400	25,000

West Peak Iron Limited
Page | 56

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 20: AMOUNTS OWING TO DIRECTORS AND OFFICERS

No amounts were owing to the Directors or officers at the end of the financial year.

NOTE 21: PARENT ENTITY DISCLOSURES

	2012	2011
	$	$
Assets
Current assets	1,291,427	1,645,161
Non-current assets	1,263,438	1,181,721
Total assets	2,554,865	2,826,882
	2012	2011
Liabilities	$	$
Current liabilities	106,155	98,392
Non-current liabilities	-	-
Total liabilities	106,155	98,392
Equity
Issued capital	3,858,577	3,268,321
Accumulated losses	(1,968,027)	(1,097,992)
	1,890,550	2,170,329
Reserves
Option reserve	558,160	558,160
	558,160	558,160
Financial performance
Loss for the year	870,036	1,088,064
Other comprehensive income	-	-
Total comprehensive income	870,036	1,088,064

Contingent liabilities of the parent entity

For details on commitments, see Note 14.

West Peak Iron Limited
Page | 57

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2012

NOTE 22: SHARE BASED PAYMENTS

(a). Recognised Share Based Payments Expense

From time to time, the Group provides Incentive Options to officers, employees, consultants and other key advisors as part of remuneration and incentive arrangements. The number of options granted, and the terms of the options granted are determined by the Board. Shareholder approval is sought where required. During the past two years, the following equity-settled share-based payments have been recognised:

	2012 $	2011 $
Expense arising from equity-settled share-based payment transactions	-	556,026
Total Expense arising from equity-settled share-based payment transactions	-	556,026

(b). Summary of Options Granted as Share Based Payments

During the period ended 30 June 2011, the following Company Options were granted as share-based payments:

Options Series	Issuing Entity	Number	Grant Date	Expiry Date	Exercise price $	Grant Date fair Value $
Tranch B	West Peak Iron Ltd	2,500,000	13-Oct-10	30-Jun-13	$0.20	$0.038
Tranch C	West Peak Iron Ltd	3,500,000	4-Mar-11	30-Jun-13	$0.20	$0.087
Tranch D	West Peak Iron Ltd	1,000,000	4-Mar-11	30-Jun-13	$0.20	$0.087
Tranch E	West Peak Iron Ltd	500,000	4-Mar-11	30-Jun-13	$0.30	$0.063

(b). Options pricing model

The fair value of the equity-settled share options granted is estimated as at the date of grant using the Black Scholes option valuation model taking into account the terms and conditions upon which the options were granted.

The following table lists the inputs to the valuation model used for share options granted by the Group during the last two years:

Inputs	Tranch A	Tranch B	Tranch C	Tranch D	Tranch E
Exercise Price	$0.20	$0.20	$0.20	$0.20	$0.30
Grant date Share Price	$0.015	$0.20	$0.26	$0.26	$0.26
Volatility	50%	60%	60%	60%	60%
Risk-free interest rate	6.5%	6.5%	5.01%	5.01%	5.01%
Grant Date	6-Apr-10	13-Oct-10	4-Mar-11	4-Mar-11	4-Mar-11
Expiry Date	30-Jun-13	30-Jun-13	30-Jun-13	30-Jun-13	30-Jun-13
Discount for lack of marketability	30%	30%	30%	30%	30%
Fair Value at Grant	$0.001	$0.038	$0.087	$0.087	$0.063

West Peak Iron Limited
Page | 58

DIRECTORS' DECLARATION

In the opinion of the directors of West Peak Iron Limited ('the Company', the 'Consolidated Entity' or the 'Group'):

a. the financial statements and notes of the Company are in accordance with the Corporations Act 2001 including:

i. giving a true and fair view of the Consolidated Entity's financial position as at 30 June 2012 and of its performance for the year then ended; and
ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

b. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.
c. The financial statements and note thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board.

This declaration has been made after receiving the declarations required to be made to the directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2012.

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

Mr Graham Marshall
Non-Executive Chairman
Perth, Western Australia; Dated this 27th day of September 2012

West Peak Iron Limited
Page | 59

HLB Mann Judd
Accountants | Business and Financial Advisers

INDEPENDENT AUDITOR'S REPORT

To the members of West Peak Iron Limited

Report on the Financial Report

We have audited the accompanying financial report of West Peak Iron Limited ("the company"), which comprises the consolidated statement of financial position as at 30 June 2012, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration for the consolidated entity. The consolidated entity comprises the company and the entities it controlled at the year's end or from time to time during the financial year.

Directors' responsibility for the financial report

The directors of the company are responsible for the preparation of the 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 financial report that is free from material misstatement, whether due to fraud or error.

In Note 1(c), the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements, that the consolidated financial report complies with International Financial Reporting Standards.

Auditor's responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 2 15 Rheola Street West Perth 6005 PO Box 263 West Perth 6872 Western Australia. Telephone +61 (08) 9481 0977. Fax +61 (08) 9481 3686.
Email: [email protected]. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of International, a world-wide organisation of accounting firms and business advisers

West Peak Iron Limited
Page | 60

HLB
Mann Judd
Accountants | Business and Financial Advisers

INDEPENDENT AUDITOR'S REPORT (continued)

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Matters relating to the electronic presentation of the audited financial report and remuneration report

This auditor's report relates to the financial report and remuneration report of West Peak Iron Limited for the financial year ended 30 June 2012 published in the annual report and included on the company's website. The company's directors are responsible for the integrity of the company's website. We have not been engaged to report on the integrity of this website. The auditor's report refers only to the financial report and remuneration report. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report and remuneration report. If users of the financial report and remuneration report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial report and remuneration report to confirm the information contained in this website version of the financial report and remuneration report.

Auditor's opinion

In our opinion:

(a) the financial report of West Peak Iron Limited is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity's financial position as at 30 June 2012 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1(c).

Report on the Remuneration Report

We have audited the remuneration report included in the directors' report for the year ended 30 June 2012. The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor's opinion

In our opinion, the remuneration report of West Peak Iron Limited for the year ended 30 June 2012 complies with section 300A of the Corporations Act 2001.

HLB MANN JUDD
Chartered Accountants

Perth, Western Australia
27 September 2012

N G NEILL
Partner

West Peak Iron Limited
Page | 61

ADDITIONAL SHAREHOLDER INFORMATION

A. CORPORATE GOVERNANCE

A statement disclosing the extent to which the Group has followed the best practice recommendations set by the ASX Corporate Governance Council during the period is contained within the Director's Report.

B. SHAREHOLDING

1. Substantial Shareholders

The following list of substantial shareholders were listed on the Companies register as at 24 September 2012.

Shareholder	Percentage
David R Parker	5.78%
John Wardman and Associates	5.07%

2. Number of holders in each class of equity securities and the voting rights attached (as at 24 September 2012)

Ordinary Shares

There are 306 holders of ordinary shares. Each shareholder is entitled to one vote per share held.

In accordance with the Company's Constitution, on a show of hands every number present in person or by proxy or attorney or duly authorized representative has one vote. On a poll every member present in person or by proxy or attorney or duly authorized representative has one vote for every fully paid ordinary share held.

Options (unlisted)

There are 25 holders of unlisted options. There are no voting rights attached to these options.

3. Distribution schedule of the number of holders in each class of equity security as at 9 September 2010.

a) Fully Paid Ordinary Shares

Spread of holdings		Holders	Securities	% of Issued Capital
NIL holding
1	-	1,000	5	504
1,001	-	5,000	11	42,996
5,001	-	10,000	62	599,820
10,001	-	100,000	169	7,747,321
100,001	-		91	37,881,820
Total on register			338	46,272,461
Total overseas holders			8	1,470,000

b) Unquoted securities

The names of the security holders holding more than 20% of an unlisted class of security are listed below:

Unlisted Company Options: (exercisable at $0.20 on or before 30 June 2013): Cobblestones Corporate Pty Ltd .

Unlisted Company Options: (exercisable at $0.30 on or before 30 June 2013): Anne Elizabeth Morrell .

West Peak Iron Limited
Page | 62

ADDITIONAL SHAREHOLDER INFORMATION (continued)

4. Marketable Parcel

There are three (3) shareholders with less than a marketable parcel (basis price $0.19).

5. Twenty largest holders of each class of quoted equity security.

The names of the twenty largest holders of each class of quoted equity security, the number of equity security each holds and the percentage of capital each holds (as at 28 August 2010) is as follows:

a) Ordinary shares top 20 holders and percentage held

Pos	Holder name	Designation	Securities	% of issued
1	* COBBLESTONES COPORATE PL	DRP INV A/C	2,500,000	5.40%
2	KEVIN HUGHES INV PL		2,500,000	5.40%
3	* JOHN WARDMAN & ASSOC PL	WARDMAN S/F A/C	2,347,936	5.07%
4	* RAVEN INV HLDGS PL	RAVEN INV A/C	1,500,000	3.24%
5	DONGRAY RICHARD S + J	S/F A/C	1,500,000	3.24%
6	* TYNEBRIDGE HLDGS PL	MARSHALL FAM A/C	1,370,000	2.96%
7	CORP & RESOURCE CONS PL		1,190,000	2.57%
8	* ACT 2 PL		1,000,000	2.16%
9	MCGEE CONST PL	MCGORMAN S/F A/C	1,000,000	2.16%
10	* KONDAS VIKTOR + BEATA		850,000	1.84%
11	* ROYLE JOHN JAMES		822,500	1.78%
12	MCINERNEY TERRY + JUDY	DRYCA EMPLOYEE RET	700,000	1.51%
13	TARAGO HLDGS PL	GREENUP S/F A/C	700,000	1.51%
14	MIAL ENTPS PL		680,359	1.47%
15	WALKER MATHEW DONALD		575,000	1.24%
16	SWITZER CHRISTOPHER	SWITZER FAM FUND A	540,000	1.17%
17	WILDGLADE PL	RALSTON FAM A/C	500,000	1.08%
18	* DONGRAY PAUL SIMON	DONGRAY FAM NO 2 A	500,000	1.08%
19	VIENNA HLDGS PL	RONJEN S/F A/C	500,000	1.08%
20	* DOZAK EDWARD MAX		500,000	1.08%
		** Top 20 total -	21,775,795	47.04%

** All holders included
* - Denotes merged holder

West Peak Iron Limited
Page | 63

ASX ADDITIONAL INFORMATION

Company Secretary

The name of the company secretary is David Parker.

Address and telephone details of the entity's registered administrative office and principle place of business:

Suite 9, 330 Churchill Avenue
SUBIACO WA 6008

Telephone: (08) 6489 1600
Fax: (08) 6489 1601

Address and telephone details of the office at which a registry of securities is kept:

Security Transfer Registrars Pty Ltd
770 Canning Highway
APPLECROSS WA 6153

Telephone: (08) 9315 2333
Fax: (08) 9315 2233

Stock exchange on which the Group's securities are quoted:

The Group's listed equity securities are quoted on the Australian Stock Exchange.

Restricted Securities

The Group has the following restricted securities:

Fully Paid Ordinary Shares
3,550,000 Escrowed until 19 October 2012

Company options (exercisable at $0.20 on or before 30 June 2013)
5,000,000 Escrowed until 19 October 2012

Review of Operations

A review of operations is contained in the Directors' Report.

Consistency with business objectives - ASX Listing Rule 4.10.19

In accordance with Listing Rule 4.10.19, the Group states that it has used the cash and assets in a form readily convertible to cash that it had at the time of admission in a way consistent with its business objectives. The business objective is primarily exploration for natural resources and acquisition of resource based projects.

The Group believes it has used its cash in a consistent manner to which was disclosed under the prospectus dated 6 August 2010.

Schedule of Tenements

A schedule of tenements is contained in Note 14 to the Financial Statements (page 51 & 52).

AI assistant

EMETALS LIMITED — Annual Report 2012

64850_rns_2012-09-26_bccfd9c0-79a7-4bac-89ec-f205db031af3.pdf

WEST PEAK IRON LTD

CONTENTS

CORPORATE INFORMATION

DIRECTORS' REPORT

Directors

Names, qualifications, experience and special responsibilities

DIRECTORS' REPORT (continued)

Interests in the shares and options of the Company and related bodies corporate

DIRECTORS' REPORT (continued)

Dividends

Principal Activities

Review of Operations

Introduction

Liberia

DIRECTORS' REPORT (continued)

DIRECTORS' REPORT (continued)

Bomi South Project

DIRECTORS' REPORT (continued)

DIRECTORS' REPORT (continued)

Central Liberian Projects

DIRECTORS' REPORT (continued)

Grand Bassa

DIRECTORS' REPORT (continued)

Bobo Creek Project

DIRECTORS' REPORT (continued)

Mount Koklun Project

DIRECTORS' REPORT (continued)

Western Australia

Pinyalling Project

Thundelarra Prospect

Warriedar Prospect

DIRECTORS' REPORT (continued)

Paynes Find Project

Dandaraga Project

Santy Well Project

Kirkalocka Project

DIRECTORS' REPORT (continued)

COMPETENT PERSONS' STATEMENTS

Geological Data and Interpretation

Geophysical Modelling and Exploration Target Volume Calculation

FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS

Significant changes in the state of affairs

DIRECTORS' REPORT (continued)

Significant events since the end of the period

Operating results for the year

Review of financial conditions

Risk management

Corporate Governance

Likely developments and expected results

Environmental legislation

Indemnification and insurance of Directors and Officers

DIRECTORS' REPORT (continued)

Remuneration report (Audited)

Key Management Personnel

Remuneration philosophy

Independent director committee

Non-executive director remuneration

Senior manager and executive director remuneration

Fixed Remuneration

DIRECTORS' REPORT (continued)

Remuneration Report (continued)

Variable Remuneration

Employment Contracts

DIRECTORS' REPORT (continued)

Options

Notes:

DIRECTORS' REPORT (continued)

Performance-based Remuneration

Remuneration of directors and key executives

DIRECTORS' REPORT (continued)

Remuneration of directors and key executives

End of Remuneration Report

Directors' Meetings

Proceedings on behalf of the Group

Auditor Independence and Non-Audit Services

Non-Audit Services

DIRECTORS' REPORT (continued)

EMETALS LIMITED Annual Report 2012