WEST PEAK IRON LTD

West Peak Iron Ltd
ABN 71 142 411 390

Annual Financial Report
For the year ended 30 June 2013

Corporate Information	1
Directors’ Report	2
Auditor’s Independence Declaration	28
Statement of Comprehensive Income	29
Statement of Financial Position	30
Statement of Changes in Equity	31
Statement of Cash Flows	32
Notes to the Financial Statements	33
Directors’ Declaration	62
Independent Auditor’s Report	63
Additional Shareholder Information	65
ASX Additional Information	67

West Peak Iron Limited
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CORPORATE INFORMATION

ABN 71 141 411 390

Directors	Mathew Walker	Executive Director
	Gary Lyons	Non-executive Chairman
	Graham Marshall	Non-executive Director
	Jimmy Lee	Non-executive Director
	Teck Wong	Non-executive Director

Company secretary Sonu Cheema

| Registered office | Suite 9, 330 Churchill Avenue
Subiaco WA 6008
Telephone: (08) 6489 1600
Fax: (08) 6489 1601 |
| --- | --- |

Principal place of business Suite 9, 330 Churchill Avenue Subiaco WA 6008

| Share register | Security Transfer Registrars Pty Ltd
770 Canning Highway
Applecross WA 6153
Telephone: (08) 9315 2333
Fax: (08) 9315 2233 |
| --- | --- |

Solicitors Steinepreis Panagin Lawyers and Consultants Level 4, Next Building 16 Milligan Street Perth WA 6000

| Bankers | National Australia Bank
Level 1, 1238 Hay Street
West Perth WA 6005 |
| --- | --- |

Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth WA 6000

Website	www.westpeakiron.com.au

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 2013. 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)
Gary Lyons	Non-executive Chairman (appointed 21 December 2012)
Graham Marshall	Non-executive Director
Jimmy Lee	Non-executive Director (appointed 10 October 2012)
Teck Wong	Non-executive Director (appointed 12 March 2013)
John Royle	Non-executive Director (resigned 21 December 2012)
David Parker	Executive Chairman (resigned 29 July 2012)

Names, qualifications, experience and special responsibilities

Mr Mathew Walker
Executive Director
Age: 43

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:

Hastings Rare Metals Limited (resigned 10 November 2011)
Triple Energy Limited (resigned 30 June 2012)
Pilbara Minerals Limited (resigned 26 August 2010)
World Oil Resources Limited (appointed 13 June 2013)
Skywards Limited (appointed 11 June 2013)

Mr Gary Lyons
Non-executive Chairman
Age: 54

Mr Lyons is a successful and well respected Perth based businessman; being a shareholder and the Managing Director of the Heiniger Groups Australasian operations for the last 25 years.

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

Golden West Resources Limited
Fairstar Resources Limited

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Mr Graham Marshall

Non-executive Director

Age: 57

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 not served as a director of any other ASX listed company.

Mr Jimmy Lee

Non-executive Director

Age: 61

Mr Lee is a mining engineer with more than 30 years of industry experience and is a member of AusIMM. He has successfully worked with a number of major Australian mining companies and has held senior positions with Golden West Resources Ltd, Hamersley Iron Ltd, Dominion Mining Ltd, Christmas Island Phosphates, North Ltd and Carey Mining Ltd.

Mr Lee provides mining and corporate advisory services to the mining industry and was formerly a founding director of Terrain Minerals Limited. In addition, he has a successful track record with contract negotiations and company investment strategies.

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

Golden West Resources Limited

Mr Teck Wong

Non-executive Director

Age: 39

Mr Wong has considerable international business experience having worked in Hong Kong, United Kingdom and now in Malaysia and Indonesia after graduating with a Bachelor of Business degree from Swinburne University (Melbourne). Mr Wong is involved with mining industry in China, Indonesia and Malaysia. He was previously involved in sales & exports of steel related products and was a director of a retail chain business in United Kingdom. Mr Wong was working in the OEM plastic manufacturing industry in Hong Kong prior to taking up a position in the steel industry in Malaysia. He is currently a director in Golden West Resources Ltd.

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

Golden West Resources Limited

Mr Sonu Cheema

Company Secretary

Age: 29

Sonu Cheema is an accountant and company secretary who has worked for mineral exploration companies with interests in Australia, Africa and Mongolia. He is currently a company secretary of Black Fire Minerals Ltd.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

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
Mathew Walker	1,000,000	1,000,000
Gary Lyons^{3}	-	85,714
Graham Marshall^{1}	1,000,000	1,410,000
Jimmy Lee	-	-
Teck Wong^{2}	-	13,100,000
Totals	2,000,000	15,595,714

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).
13,100,000 Shares held in the name of Bluebay Investments Group Corporation, an entity controlled by Teck Wong.
85,714 Shares held in the name of Lyons Superannuation Fund.

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 2,000,000 Company Options exercisable at $0.20 expiring on or before 30 June 2014.

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.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

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 in 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 three iron ore exploration licences and one reconnaissance licence, which is currently in the process of being converted to an exploration licence, 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 eight 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 in Liberia.

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 to test some of the identified iron prospects by drilling at the Bomi South Project. Field work consisting of mapping and geochemical sampling programs continued to advance the understanding and in the target generation process.

West Peak's social development program expanded from the previous year's commitment to reach further communities and deliver an increase in water pumps constructed and repaired and assistance provided for the construction of a local school in a community which had none.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

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 an unsealed road, which is currently being sealed, 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 the Bong Iron Project which is currently being recommissioned by China Union and is scheduled to commence production in 2013.

Figure 2. Location of Bomi South Project and prospects drilled

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 20-100 m with dip angles ranging from sub-vertical to relatively flat lying.

West Peak Iron Limited

DIRECTORS' REPORT (continued)

Review of Operations (continued)

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

Drill programs consisting of 50 RC holes for $3,290\mathrm{m}$ were carried out in two phases over prospects Area 1, 4 and 6 and targeted iron formations identified from field mapping and coincident magnetic anomalies and geochemical sampling from surface and trenching / pitting programs.

Drilling intersected iron enrichment which consisted of hematite/ goethite enriched capping at varying depths overlaying banded iron formations which are interpreted to be itabirites units. The itabirites units intersected have an interpreted true thickness ranging up to $40\mathrm{m}$ , as shown in figure 4. The itabirites can be further classified into friable units, which occur from surface and compact or primary itabirites with increasing depth. No significant amount of DSO iron mineralisation was encountered with the highest individual assay returned of $58.30\%$ Fe near surface. The programs from this area moving forward will focus on the friable iron formation which West Peak believes may be amenable to beneficiation to a saleable product.

Figure 4. Area 6 drill hole cross section 346,100 E, looking west

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

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 and Bobo Creek are granted exploration licence's while Mount Koklun currently is in application before the Ministry of Lands, Mines and Energy of Liberia to convert from a reconnaissance licence into an exploration licence. In order for ground disturbing exploration to be carried out an exploration licence must be held.

A high resolution geophysical survey was flown in 2011 covering the three projects and magnetic anomalism was identified which is coincident to iron formations mapped from the historic US Geological Survey compiled data.

Figure 5. Central Liberian 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 5). 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 6). 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

DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 6. 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 5) and covers an area of 200 km2. An application to convert this licence from a reconnaissance licence to an exploration licence was successful with the Ministry for Lands, Mines and Energy of Liberia granting the licence in February 2013. 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 7). 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 7. Rock chip sample locations at the Bobo Creek project coloured by iron grade and overlain on the analytic signal aeromagnetic image.

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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 5). 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.

Social Development Program

West Peak is fully aware of its obligations to provide direct benefits to the local communities that West Peak is operating in through assistance programs. These programs are created in consultation with the local community to provide the best outcomes for all stakeholders. West Peak has focused predominately on sanitation through the construction on hand pumps to provide clean drinking water and latrines. Other programs have seen the provision of school supplies to local schools and construction materials to allow the local community of Coleman Hill to build their own primary school.

West Peak Iron Limited
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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Figure 8. School principal receiving school supplies in Grand Bassa project

Figure 9. Hand pump turned over to the people of Gerbo village in Bomi South project

Figure 10. Latrine handed over to Gevahan Fahnsee village in Bomi South project

Figure 11. Primary school under construction at Coleman Hill village in Bomi South project

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Western Australia

West Peak has divested the majority of its Western Australian assets upon a review of the projects immediate potential and ongoing costs associated with keeping them in good standing and the company's decision to focus its exploration attention on the Liberian projects. The tenement holding has been reduced to 10 tenements as at 4 September 2013.

During the year West Peak carried out a moderate drill program consisting of 1,132m of RC drilling at the Highway prospect, which is in the Paynes Find project. The program targeted DSO iron mineralisation at the Highway prospect following up a field mapping and rock chip sampling program where returned samples assayed 60+ Fe. Iron formation was intercepted which showed varying degrees of supergene enrichment, but no significant DSO mineralisation was identified.

Figure 12. Western Australian land holding

Pinyalling Project

The Pinyalling Project is located approximately 420 km northeast of Perth and 50 km northwest of Paynes Find (Figure 12) covering parts of the Warriedar greenstone belt which hosts significant iron ore deposits. Within the Pinyalling project is the Thundelarra prospect, which contains three magnetite-bearing BIFs ranging in width from 5 to 30m, that 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.

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Kirkalocka Project

The Kirkalocka Project is located approximately 70 km south of Mount Magnet on the Great Northern Highway and consists of two granted tenements for 260 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.

Previous work 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 identification of heritage sites and which resulted 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.

Narndee Project

The Narndee Project is located approximately 65 km northeast of Paynes Find, which is 420 km from Perth via the Great Northern Highway, in the Murchison region of Western Australia. The physiology of the project area consists of small topographic highs surrounded by residual colluviums and alluvium.

The project occurs in the Narndee Complex which is a layered intrusive that has intruded greenstone belts. The complex is approximately 40 km long well layered mafic and ultramafic rocks and is considered to be divided into two distinct layered sequences; Narndee Complex North and Narndee Complex South. The Narndee Complex North has been identified to contain a greater proportion of ultramafics. These layers are concentric in nature with dips of 40-70° directed inwards of the intrusive. The greenstone sequence consists of poorly outcropping felsic to intermediate volcanics with interlayered metasediments and BIF.

West Peak's exploration focus has been solely on the potential of the BIF units to host economic iron ore. The project area's previous exploration covered gold and base metals where several anomalous geochemical responses were returned however no significant mineralisation has been identified to date.

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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.

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

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. Subsequently on 3 October 2012 the Company advised that it had placed an additional 18,227,539 shares at $0.05 to raise $911,376.95 before costs as part of the shortfall of the Entitlement Issue.

On 4 October 2012 Golden West Resources Limited (ASX Code: GWR) announced that it had acquired an 18.6% interest in West Peak Iron Ltd (ASX Code: WPI) by participating in the placement of shortfall shares in WPI's entitlement issue. GWR subscribed for 12,000,000 shares at a price of 5 cents each equating to an investment of $600,000.

On 4 October 2012 the Company appointed Mr Kong Leng (Jimmy) Lee, a director of GWR, to the board of West Peak Iron Limited.

On 21 December 2012 the Company announced the placement to raise up to $1,120,000 before costs via the issue of 16,000,000 shares at $0.07. The Placement was subsequently issued pursuant to ASX Listing Rules 7.1 (9,675,000 shares) and 7.1A (6,325,000 shares) on 24 December. David Parker resigned as Joint Company Secretary.

On 24 December 2012 the Company appointed Mr Gary Lyons, a director of GWR, to the board of West Peak Iron Limited.

On 24 March 2013 the Company appointed Mr Teck Siong Wong, a director of GWR, to the board of West Peak Iron Limited.

During the June quarter the Company completed a desk top study on the Western Australian projects. The completion of this desk top study had led to a decision to divest some of these tenements. Following the end of the year, West Peak had entered into a Binding Terms Sheet with Aphex Minerals Pty Ltd for the sale of 24 of its Western Australian tenements for a consideration of $50,000, with an additional $25,000 payable if Aphex Minerals Pty Ltd enters into a joint venture arrangement in relation to the tenements with a third party over the next 12 months. The 24 tenements sold form part of the Pinyalling, Warriedar, Paynes Find, Santy Well and Dandaraga project areas. The 10 remaining WA tenements form part of the Pinyalling project area and all of the Kirkalocka and Nardee project areas.

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Significant events since the end of the period

Other than the sale of various tenements to Aphex Minerals Pty Ltd, there has not been any matter or circumstance, other than noted above, occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

Operating results for the year

The comprehensive loss of the consolidated entity for the financial period, after providing for income tax amounted to $2,517,209 (2012: $870,036).

Review of financial conditions

As at 30 June 2013 the Consolidated Entity had $1,100,901 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.

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.

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DIRECTORS' REPORT (continued)

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.

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 2013.

Key Management Personnel

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

Directors
Gary Lyons	Non-Executive Chairman (appointed 21 December 2012)
Mathew Walker	Executive Director (appointed 29 July 2012)
Graham Marshall	Non-Executive Director
Jimmy Lee	Non-Executive Director (appointed 10 October 2012)
Teck Wong	Non-Executive Director (appointed 12 March 2013)
John Royle	Non-Executive Director (resigned 21 December 2012)
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 2013, the Board has appointed Mr Marshall, Mr Lee and Mr Lyons 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.

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DIRECTORS' REPORT (continued)

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.

Remuneration Report (continued)

Variable Remuneration

No variable remuneration is paid. Long term incentives are issued in the form of Company options. To date 6,000,000 Company options have been issued to directors and 2,500,000 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 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.

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 was amended by mutual agreement dated 19 July 2013, with the employment period ending on 30 September 2013.

West Peak Iron Limited
Page | 19

DIRECTORS' REPORT (continued)

Remuneration Report (continued)

Options

Details of Unlisted Options granted by the Company to each KMP of the Group during the 2013 financial year are as follows:

2013	Grant Date	Expiry Date	Exercise Price	Grant Date Fair Value^{1}	No. Granted	No. Vested
Executive
Mathew Walker	21-Dec-12	30-Jun-14	$0.15	$0.02	1,000,000	1,000,000
Shane Tomlinson	21-Dec-12	30-Jun-14	$0.15	$0.02	1,000,000	1,000,000

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 2013 financial year are as follows:

2013	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
Mathew Walker	13,797	-	-	13,797	12.23
Shane Tomlinson	13,797	-	-	13,797	6.75

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

West Peak Iron Limited
Page | 20

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 2013
	Short-term employee benefits			Post-employment benefits	Equity
	Salary & Fees $	Bonuses $	Non-Monetary Benefits $	Super-annuation $	Options Granted $	Total $	Performance Related %
Directors
Gary Lyons	2013	13,979	-	-	1,258	-	15,237
Mathew Walker¹	2013	99,000	-	-	-	13,797	112,797
Graham Marshall	2013	23,333	-	-	2,100	-	25,433
Jimmy Lee	2013	19,570	-	-	1,761	-	21,331
Teck Wong	2013	3,333	-	-	-	-	3,333
David Parker¹	2013	61,667	-	-	5,550	-	67,217
John Royle²	2013	15,000	-	-	1,350	-	16,350
Executive
Shane Tomlinson	2013	175,000	-	-	15,750	13,797	204,547
Total	2013	410,882	-	-	27,769	27,594	466,245

¹ During the period ended 30 June 2013, Cicero Corporate Services Pty Ltd, an entity Mr Walker holds a 33.3% equity holding and Mr Parker holds a 33.3% equity holding, provided corporate administration services which included rent, corporate services and reimbursement to the Group which totalled $131,629 during the year. The arrangement was on normal commercial terms and has not been included as part of executives' remuneration.

² During the period ended 30 June 2013, Pulse Design, an entity owned by Mr Royle's spouse, provided corporate design services which totalled $4,240 during the year. Mr Royle also provided corporate consulting services which totalled $2,500 during the period ended 30 June 2013, Reliance Consulting, an entity to which Mr Royle is a Director. The arrangement was on normal commercial terms and has not been included as part of executives' remuneration.

West Peak Iron Limited
Page | 21

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 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.

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 Meetings		Audit Committee meetings
Directors	Eligible to attend	Attended	Eligible to attend	Attended
Gary Lyons	2	2	1	1
Mathew Walker	6	6	0	0
Graham Marshall	9	9	1	1
Jimmy Lee	3	3	0	0
Teck Wong	2	2	0	0
David Parker	3	3	0	0
John Royle	7	7	0	0

In addition, there were 3 circular resolutions signed by the board.

Proceedings on behalf of the Group

There are no proceedings on behalf of the Group.

West Peak Iron Limited
Page | 22

DIRECTORS' REPORT (continued)

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 30 and forms part of this directors' report for the year ended 30 June 2013.

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.

Signed in accordance with a resolution of the directors.

Mr Gary Lyons

Non-Executive Chairman

Perth, Western Australia; Dated this 23rd day of September 2013

West Peak Iron Limited
Page | 23

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 2013.

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 | 24

CORPORATE GOVERNANCE STATEMENT (continued)

Structure the board to add value (continued)

The directors that are considered independent are:

Gary Lyons Non-executive Chairman
Graham Marshall Non-executive Director
Jimmy Lee Non-executive Director

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
Gary Lyons	6 months
Mathew Walker	14 months
Graham Marshall	43 months
Jimmy Lee	9 months
Teck Wong	5 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 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.

Audit Committee

The Audit Directors Committee of the Board of Directors of the Group consists of:

Gary Lyons Non-executive Chairman
Graham Marshall Non-executive Director
Sonu Cheema Company Secretary

Gary Lyons has been appointed the Chair of the Independent Directors Committee; he is also the Chairman of the Company. The members of the Independent Directors Committee are considered Independent Directors.

Notification of Departure: The Audit Committee does not have a separate Chairman as per ASX Best Practice Recommendation 4.2.

Explanation for Departure: The Company is not of the size or complexity to justify a separate Chairman of the Audit Committee, however this will be reviewed annually.

West Peak Iron Limited
Page | 25

CORPORATE GOVERNANCE STATEMENT (continued)

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.

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.

West Peak Iron Limited
Page | 26

CORPORATE GOVERNANCE STATEMENT (continued)

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
changed operating, market or regulatory environments.

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 Remuneration Committee as per ASX Best Practice Recommendation 8.1.

Explanation for Departure: The Company is not of the size or complexity to justify Remuneration Committee; however this will be reviewed annually. The role of the Remuneration Committee is undertaken by the entire board.

West Peak Iron Limited
Page | 27

CORPORATE GOVERNANCE STATEMENT (continued)

Remunerate Fairly and Responsibly (continued)

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 | 28

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 2013, 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 and the entities it controlled throughout the year.

Perth, Western Australia
23 September 2013

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 International, a world-wide organisation of accounting firms and business advisers

West Peak Iron Limited
Page | 29

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2013

| | Notes | 2013
$ | 2012
$ |
| --- | --- | --- | --- |
| Continuing operations | | | |
| Other income | 2 | 51,147 | 110,095 |
| Administration expenses | | (321,518) | (103,398) |
| Director fees | | (502,549) | (390,611) |
| Occupancy expenses | | (126,354) | (81,740) |
| Exploration expenditure written off | | - | (78,989) |
| Other expenses | 2 | (212,125) | (322,444) |
| Loss before income tax expense | | (1,111,399) | (867,087) |
| Income tax expense | 3 | - | - |
| Loss after tax from continuing operations | | (1,111,399) | (867,087) |
| Discontinued operations | | | |
| Loss after tax from discontinued operations | 5 | (1,507,025) | - |
| Net loss for the period | | (2,618,424) | (867,087) |
| Other comprehensive income | | | |
| Items that may be subsequently reclassified to profit and loss | | | |
| Exchange differences on translation of foreign operations | | 101,215 | (2,949) |
| Total comprehensive loss for the period | | (2,517,209) | (870,036) |
| Basic loss per share (cents per share) | 4 | (4.04) | (3.25) |
| Basic loss per share from continuing operations (cents per share) | 4 | (1.72) | (3.25) |

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 30

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

	Note	Consolidated
		2013 $	2012 $
Assets
Current Assets
Cash and cash equivalents	9	1,100,901	520,974
Trade and other receivables	10	81,878	75,005
		1,182,779	595,979
Assets classified as held for sale	5	50,000	-
Total Current Assets		1,232,779	595,979
Non-Current Assets
Plant and equipment	11	25,990	41,443
Deferred exploration expenditure	12	1,650,172	1,917,458
Total Non-Current Assets		1,676,162	1,958,901
Total Assets		2,908,941	2,554,880
Liabilities
Current Liabilities
Trade and other payables	13	250,555	106,170
Total Current Liabilities		250,555	106,170
Total Liabilities		250,555	106,170
Net Assets		2,658,386	2,448,710
Equity
Issued capital	7	6,557,868	3,858,577
Reserves	8	684,020	555,211
Accumulated losses		(4,583,502)	(1,965,078)
Total Equity		2,658,386	2,448,710

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 31

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013

Consolidated	Accumulated
	Issued Capital $	Losses $	Reserves $	Total Equity $
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
Balance at 1 July 2012	3,858,577	(1,965,078)	555,211	2,448,710
Loss for the year	-	(2,618,424)	-	(2,618,424)
Exchange differences arising on translation of foreign operations	-	-	101,215	101,215
Total comprehensive income/(loss) for the period	-	(2,618,424)	101,215	(2,517,209)
Shares issued during the year	2,937,773	-	-	2,937,773
Share based payments	-	-	27,594	27,594
Transaction costs on share issue	(238,482)	-	-	(238,482)
Balance at 30 June 2013	6,557,868	(4,583,502)	684,020	2,658,386

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 32

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2013

	Note	Consolidated
		2013 $	2012 $
		Inflows/(Outflows)
Cash flows from operating activities
Payments to suppliers and employees		(874,348)	(930,890)
Interest received		39,320	52,394
Net cash (used in) operating activities	9	(835,028)	(878,496)
Cash flows from investing activities
Payments for property, plant and equipment		-	(47,527)
Payments for exploration and evaluation expenditure		(1,284,336)	(558,167)
Net cash (used in) investing activities		(1,284,336)	(605,694)
Cash flows from financing activities
Proceeds from issue of shares		2,937,773	631,967
Payment for share issue costs		(238,482)	(41,711)
Net cash provided by financing activities		2,699,291	590,256
Net increase/(decrease) in cash held		579,927	(893,934)
Cash and cash equivalents at the beginning of the period	9	520,974	1,414,908
Cash and cash equivalents at the end of the period		1,100,901	520,974

The accompanying notes form part of these financial statements

West Peak Iron Limited
Page | 33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

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 2013, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group's 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 the Group's business and, therefore, no change is necessary to Group accounting policies.

Standards and Interpretations in issue not yet adopted:

The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year ended 30 June 2013. 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 the Group's business and, therefore, no change necessary to Group accounting policies.

(c) Statement of compliance

The financial report was authorised for issue on 23 September 2013.

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 2013 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 | 34

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) 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.

Exploration expenditure carried forward:

The Group capitalised expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not yet reached a stage that permits reasonable assessment of existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded.

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 using a Black and Scholes model.

West Peak Iron Limited
Page | 35

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

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 | 36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

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 | 37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

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 | 38

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

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 | 39

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

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 | 40

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

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 | 41

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

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) Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of the disposal group classified as held for sale are presented separately from the other assets in the statement of financial position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the statement of financial position.

(v) 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 2013, the Group incurred a loss of $2,618,424 and a net cash outflow of $834,028 from operations as disclosed in the statement of comprehensive income and the statement of cash flows, respectively.

As at 30 June 2013, the Group had $982,224 in net working capital and $1,100,901 in cash and cash equivalents. The Directors consider that the Group is a going concern and current cash flow forecasts indicate that the Group will have sufficient funding to ensure that it can continue to fund its operations during the twelve month period from the date of approval of this financial report.

West Peak Iron Limited
Page | 42

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 2: REVENUES AND EXPENSES

	Consolidated
	2013	2012
	$	$
(a) Other income
Interest income	39,320	52,394
Other	11,827	57,701
	51,147	110,095
(b) Expenses
Administrative expenses	286,016	103,398
ASX and registry fees	32,930	32,568
Computer and software expenses	2,572	9,363
Depreciation expense	17,836	14,380
Legal and professional	59,367	174,866
Travel and promotional expenses	81,648	57,277
Other	25,680	33,990
Directors fees	502,549	390,611
Exploration expenditure written off	-	78,989
Rent	126,354	81,740
Share based payments expense	27,594	-
	1,162,546	977,182

West Peak Iron Limited
Page | 43

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 3: INCOME TAX

Current tax expense	Consolidated
	2013	2012
	$	$
(a) Income tax benefit	-	-
(b) Numerical reconciliation between tax-expense and pre-tax net loss
Loss from ordinary activities	(2,618,424)	(870,036)
	(2,618,424)	(870,036)
Income tax using the Group's domestic tax rate of 30% (2012: 30%)	(785,527)	(261,011)
Share based payments	8,278	-
Other non-deductible expenses/(deductible tax adjustments)	9,218	13,002
Capital raising costs	51,711	(5,525)
Capitalised exploration expenditure	65,185	(25,090)
Tax losses not brought to account as a deferred tax asset	651,135	278,624
Income tax benefit/(expense) attributable to entity	-	-

(c) Tax losses

Deferred tax asset on the unused 2013 tax loss of $5,601,807 (2012: $3,431,355) 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	86,411	43,295
Provisions and Accruals	11,280	16,795
Income tax losses not brought to account – Australia (at 30%)	1,047,820	452,469
Income tax losses not brought to account – Liberia (at 25%)	117,339	-
Unrecognised deferred tax assets relating to the above temporary differences	1,262,850	512,559

West Peak Iron Limited
Page | 44

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 4: LOSS PER SHARE

	Consolidated
	2013	2012
	Cents per share	Cents per share
Basic loss per share
Continuing operations	(1,72)	(3.25)
Discontinued operations	(2.32)	-
Total basic loss per share	(4.04)	(3.25)
	$	$
Loss for the year	(2,618,424)	(867,087)
Loss from continuing operations	(1,111,399)	(867,087)
	Number	Number
Weighted average number of ordinary shares for the purposes of basic loss per share:	64,766,931	26,650,282

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

NOTE 5: DISCONTINUED OPERATIONS

Following the end of the period and following a review of the prospectivity of the Western Australia tenements, West Peak had entered into a Binding Terms Sheet with Aphex Minerals Pty Ltd for the sale of 24 of its Western Australian tenements for a consideration of $50,000, with an additional $25,000 payable if Aphex Minerals Pty Ltd enters into a joint venture arrangement in relation to the tenements with a third party over the next 12 months. The 24 tenements sold form part of the Pinyalling, Warriedar, Paynes Find, Santy Well and Dandaraga project areas. The 10 remaining WA tenements form part of the Pinyalling project area and all of the Kirkalocka and Nardee project areas.

Financial information relating to the discontinued operations is set out below:

Costs carried forward in respect of:

Exploration and evaluation phase – at cost (30 June 2012)

Balance at the beginning of the year / period	1,248,390
Expenditure incurred
Santy Well	18,237
Pinyalling (including Warriedar)	144,718
Dandaraga	12,641
Other (WA)	143,039
Total carrying value of continuing operation	1,567,025
Less: Impairment loss	(1,507,025)
Amounts reclassified as assets held for sale	50,000
Carrying value of continuing operation(Deferred Exploration Expenditure)	10,000

Profit/(Loss) from discontinued operations

Impairment expense	(1,507,025)
Loss from discontinued operations	(1,507,025)

West Peak Iron Limited
Page | 45

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 6: 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 10 tenements that consists of 10 granted licences which are prospective for a range of commodities.

Liberia

Liberia is located in West Africa where it borders Guinea, Sierra Leone and Côte d'Ivoire. 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.

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.

Geographical segments

	Exploration Activities Australia $	Exploration Activities Liberia $	Unallocated $	Discontinued Operations	Total $
30 June 2013
Segment revenue	-	-	51,147	-	51,147
Exploration written off	-	-	-	(1,507,025)	(1,507,025)
Other expenses	-	(233,277)	(929,269)	-	(1,162,546)
Segment result	-	(233,277)	(878,122)	(1,507,025)	(2,618,424)
Segment assets	-	1,702,064	1,146,877	60,000	2,908,941
Segment liabilities	-	(101,809)	(148,746)	-	(250,555)

West Peak Iron Limited
Page | 46

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 6: SEGMENT REPORTING (continued)

	Exploration Activities Australia $	Exploration Activities Liberia $	Unallocated $	Total $
30 June 2012
Segment revenue	-	-	110,095	110,095
Exploration written off	(38,764)	(40,225)	-	(78,989)
Other expenses	-	(185,786)	(712,407)	(898,193)
Segment result	(38,764)	(226,011)	(602,312)	(867,087)
Segment assets	1,256,746	660,711	637,423	2,554,880
Segment liabilities	-	(14)	(106,156)	(106,170)

NOTE 7: ISSUED CAPITAL

	Consolidated
Movements in ordinary shares on issue	2013 $	2012 $	2013 No.	2012 No.
At 1 July	3,858,577	3,268,321	28,144,536	24,000,001
Movements during the period:
Shares issued during the 2012 period	-	618,907		4,144,535
Shares issued on 31 July 2012 at $0.05	205,273	-	4,105,464	-
Shares issued on 13 September 2012 at $0.05	701,123	-	14,022,461	-
Share issued on 3 October 2012 at $0.05	911,377	-	18,227,539	-
Shares issued on 24 December at $0.07	1,120,000		16,000,000	-
Share issue costs	(238,482)	(28,651)	-	-
At 30 June	6,557,868	3,858,577	80,500,000	28,144,536

West Peak Iron Limited
Page | 47

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 7: ISSUED CAPITAL (continued)

Ordinary shares 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 8: RESERVES

	Consolidated
	2013	2012
	$	$
Foreign currency translation reserve
At 1 July	(2,949)	-
Currency translation differences	101,215	(2,949)
At 30 June	98,266	(2,949)
Share based payments reserve
At 1 July	558,160	558,160
Options issued	27,594	-
At 30 June	585,754	558,160
Movements in Company Options on issue	No.	No.
At 1 July	13,605,465	12,500,000
Movements during the period:
Options issued on 17 December 2012	2,000,000	1,750,000
Options expired	(13,605,465)	(644,535)
At 30 June	2,000,000	13,605,465

Company options carry no voting rights and carry no right to dividends. Company options are unlisted. 2,000,000 Company options are exercisable at $0.15 on or before 30 June 2014. 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.

West Peak Iron Limited
Page | 48

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 9: CASH AND CASH EQUIVALENTS

Consolidated
	2013	2012
	$	$
Cash at hand and in bank	840,901	260,974
Short term deposits	260,000	260,000
	1,100,901	520,974

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 2013 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 10 exploration licenses with the Department of Mines and Petroleum, to the value of $5,000 each, totalling $50,000

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

Loss after tax for the period	(2,618,424)	(867,087)
Adjustments for:
Depreciation on non-current assets	17,836	14,380
Share based payments expense	27,594	-
Exploration expenditure written off	1,507,025	78,989
Changes in assets and liabilities:
(Increase)/decrease in trade receivables and prepayments	(6,873)	(57,499)
Increase/(decrease) in trade payables and accruals	237,814	(47,279)
Net cash (used in) operating activities	(835,028)	(878,496)

NOTE 10: TRADE AND OTHER RECEIVABLES

Goods and services tax receivables	38,181	11,979
Prepayments	13,588	34,001
Other receivables	30,109	29,025
Trade and other receivables balance at 30 June	81,878	75,005

NOTE 11: PLANT AND EQUIPMENT

Plant and equipment at cost	63,320	58,583
Accumulated depreciation	(37,330)	(17,140)
Balance at 30 June	25,990	41,443

West Peak Iron Limited
Page | 49

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 11: PLANT AND EQUIPMENT (continued)

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

	Consolidated	Consolidated
	2013	2013
	$	$
Balance at 1 July	41,443	8,608
Additions	-	47,215
Depreciation expense	(17,836)	(14,380)
Effect of Foreign Exchange	2,383	-
Balance at 30 June	25,990	41,443

NOTE 12: DEFERRED EXPLORATION EXPENDITURE

Costs carried forward in respect of:

Exploration and evaluation phase – at cost

Balance at the beginning of the year / period	1,917,458	1,385,860
Expenditure incurred
Santy Well	18,237	48,340
Pinyalling (including Warriedar)	144,718	26,735
Dandaraga	12,641	45,678
Other (WA)	143,039	24,645
Liberia	971,104	465,189
Assets reclassified as held for sale	(50,000)	-
Less: exploration expenditure impaired	(1,507,025)	(78,989)
Total Exploration Expenditure balance at 30 June	1,650,172	1,917,458

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 impaired primarily due to review of the areas prospectivity.

NOTE 13: TRADE AND OTHER PAYABLES (CURRENT)

Trade payables*	20,397	50,186
Accrued expenses	230,158	55,984
Balance at 30 June	250,555	106,170

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

West Peak Iron Limited
Page | 50

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 14: FINANCIAL INSTRUMENTS

	Consolidated
	2013	2012
	$	$
Financial assets
Receivables	81,879	75,005
Cash and cash equivalents	1,100,901	520,974
Balance at end of year	1,182,780	595,979
Financial liabilities
Trade and other payables	250,555	106,155
Balance at end of year	250,555	106,155

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 $
2013
Non-interest bearing	-	139,115	-	-	-	-
Variable interest rate instruments	2.65	-	951,786	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		139,115	951,786	-	-	-
2012
Non-interest bearing	-	335,979	-	-	-	-
Variable interest rate instruments	4.1	-	260,000	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		335,979	260,000	-	-	-

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 $
2013
Non-interest bearing	-	250,555	-	-	-	-
Variable interest rate instruments	-	-	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		250,555	-	-	-	-
2012
Non-interest bearing	-	106,170	-	-	-	-
Variable interest rate instruments	-	-	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-	-
		106,170	-	-	-	-

West Peak Iron Limited
Page | 51

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 14: 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 | 52

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 14: FINANCIAL INSTRUMENTS (continued)

Interest rate risk sensitivity analysis

The sensitivity analyses 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 variables remaining constant would be immaterial.

(d) Foreign currency sensitivity analysis

The Group is exposed to US Dollar (USD) currency fluctuations.

The following table details the Group's sensitivity to a 10% increase and decrease in the Australian dollar against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an increase in profit or loss and other equity where the Australian Dollar strengthens against the respective currency. For a weakening of the Australian Dollar against the respective currency there would be an equal and opposite impact on the profit and other equity and the balances below would be negative.

Consolidated USD Impact
	2013	2012
	$	$
Profit or loss (i)	3,572	2,131

(i) This is mainly attributable to the exposure outstanding on USD receivables and payables at year end in the Group

The Group's sensitivity to foreign currency during the period has increased due to the fluctuations in the foreign currency market and the increased transactional activity of the Group.

West Peak Iron Limited
Page | 53

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 14: FINANCIAL INSTRUMENTS (continued)

(e) 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.

(f) 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.

NOTE 15: COMMITMENTS AND CONTIGENCIES

Officers Remuneration Commitments

The Group entered into remuneration commitments with all the non-executive directors of the Group effective 1 July 2013, for all services rendered from this date forward. The non-executive director and non-executive chairman salaries has been set at $30,000 and $40,000 respectively. Remuneration of non-executive directors is reviewed annually.

Administration Agreement

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 | 54

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 15: COMMITMENTS AND CONTINGENCIES (continued)

Tenement Related Commitments and Contingencies

	Consolidated
	2013	2012
	$	$
Commitments for exploration expenditure on Western Australian Projects
Not longer than 1 year	50,000	624,402
Longer than 1 year and less than 2 years	50,000	624,402
Longer than 2 year and less than 5 years	150,000	1,873,205
Commitments for exploration expenditure on Liberian Projects
Not longer than 1 year	816,000	626,750
Longer than 1 year and less than 2 years	890,250	991,250
Longer than 2 year and less than 5 years	2,670,750	2,973,750

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. West Peak holds an exploration portfolio of 10 tenements which are prospective for a range of commodities. See subsequent events for Western Australian tenements sold following the end of the period.

Tenement Security

As at the balance date, the Group has provided written security in respect of 10 exploration tenements with the Department of Mines and Petroleum, to the value of $5,000 each, totalling $50,000. This binds the Group to the provisions of the Mining Act 1978.

Western Australian - Granted Tenement schedule as at 5th September 2013

TID	PROJECT	OWNERSHIP	EXPDATE
E59/1362	PINYALLING	90%	30-Sep-13
E59/1380	PINYALLING	90%	05-Aug-14
E59/1620	PINYALLING	90%	14-Dec-16
E59/1622	PINYALLING	90%	01-Mar-16
E59/1476	KIRKALOCKA	90%	02-Apr-18
E59/1487	KIRKALOCKA	90%	10-Mar-16
E59/1721	PAYNES FIND	100%	10-Aug-16
P59/1893	PINYALLING	90%	07-Apr-14
E59/1747	NARNDEE	100%	01-Sep-16
E59/1748	NARNDEE	100%	14-Dec-16

West Peak Iron Limited
Page | 55

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 15: COMMITMENTS AND CONTIGENCIES (continued)

Liberia

West Peak holds three granted Exploration Licences and one granted Reconnaissance Licences for a total area of 972km2 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. The Company has also provided two Environmental Security Bonds in respect to the Bomi South Exploration License, totalling $75,000. In subsequent years the Company has to provide Environmental Bonds equal to 15% of the approved exploration work programs. Bobo Creek was converted from a Reconnaissance License to Exploration License during the period, being granted on 27 February 2013.

Liberia – Granted Tenement Schedule
Granted Tenement schedule as at 5 September 2013

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	Application^{1}
MEL11101	100%	Exploration	Bobo Creek	198	27-Feb-16

1 The Mount Koklun Reconnaissance License has been extended for six months following the initial six month term. Following this second six month term an application to convert the Reconnaissance License to an Exploration License has been submitted with the Ministry of Land, Mines and Energy of Liberia. The Company is currently awaiting a response regarding the granting of conversion from the Ministry.

NOTE 16: EVENTS AFTER THE BALANCE DATE

Other than the sale of various tenements to Aphex Minerals Pty Ltd as outlined in Note 5, there has not been any matter or circumstance, other than noted above, occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

West Peak Iron Limited
Page | 56

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 17: 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:

Mathew Walker Executive Director (appointed 29 July 2012)
Gary Lyons Non-executive Chairman (appointed 21 December 2012)
Graham Marshall Non-executive Director
Jimmy Lee Non-executive Director (appointed 10 October 2012)
Teck Wong Non-executive Director (appointed 12 March 2013)
Shane Tomlinson Exploration Manager
David Parker Executive Director (resigned 29 July 2012) and Joint Company Secretary (resigned 21 December 2012)
John Royle Non-executive Director (resigned 21 December 2012)

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 2013	Balance at 30 June 2012	Granted as Remuneration^{1}	Options Expired	Net Change Other	Balance at end of Period
Directors
Gary Lyons	-	-	-	-	-
Mathew Walker	-	1,000,000^{1}	-	-	1,000,000
Graham Marshall	1,000,000	-	(1,000,000)	-	-
Jimmy Lee	-	-	-	-	-
Teck Wong	-	-	-	-	-
David Parker	3,000,000	-	(3,000,000)	-	-
John Royle	1,000,000	-	(1,000,000)	-	-
Executives
Shane Tomlinson	1,500,000	1,000,000^{1}	(1,500,000)	-	1,000,000
Total	6,500,000	2,000,000	(6,500,000)	-	2,000,000

1 2,000,000 Unlisted Company Options exercisable at $0.15 on or before 30 June 2014 were issued during. See note 22 for full details of Options valuations.

West Peak Iron Limited
Page | 57

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 17: DIRECTORS AND EXECUTIVES DISCLOSURES (continued)

30 June 2013	Balance at 30 June 2012	Received as Remuneration	On Exercise of Options	Net Change Other^{3}	Balance at end of Period
Directors
Gary Lyons	85,714^{1}	-	-	-	85,714
Mathew Walker	450,000	-	-	550,000	1,000,000
Graham Marshall	890,000^{2}	-	-	520,000	1,410,000
Jimmy Lee	-	-	-	-	-
Teck Wong	-	-	-	13,100,000^{4}	13,100,000
David Parker	2,564,131^{1}	-	-	2,564,131^{6}	-
John Royle	430,000	-	-	822,500^{6}	-
Executives
Shane Tomlinson	10,000	-	-	-	10,000
Total	4,429,845	-	-	17,556,631	15,605,714

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 1,410,000 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 85,714 Shares held in the name of Lyons Superannuation Fund, an entity controlled by Gary Lyons.
4 13,100,000 Shares held in the name of Bluebay Investments Group Corporation, an entity controlled by Teck Wong.
5 On market trade or Entitlement Issue and Placement.
6 Shares held at date of resignation by directors David Parker (resigned 29 July 2012) and John Royle (resigned 21 December 2012).

West Peak Iron Limited
Page | 58

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 17: DIRECTORS AND EXECUTIVES DISCLOSURES (continued)

(d) 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

(e) Shareholdings of Directors and Executives

30 June 2012	Balance at 30 June 2011	Received as Remuneration	On Exercise of Options	Net Change Other	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

West Peak Iron Limited
Page | 59

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 17: DIRECTORS AND EXECUTIVES DISCLOSURES (continued)

(f) Key Management Personnel Compensation

Refer to the remuneration report contained in the director's report for details of the remuneration paid or payable to each member of the Group's key management personnel (KMP) for the year ended 30 June 2013.

The totals of remuneration paid to KMP of the Company and the Group during the year are as follows:

	Consolidated
	2013	2012
	$	$
Short-term employee benefits	410,882	338,000
Post-employment benefits	27,769	30,150
Other long-term benefits	-	-
Share-based payments	27,594	-
Total KMP compensation	466,245	368,150

NOTE 18: 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 each) (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 $131,629 during the year ended 30 June 2013 (2012:$122,656) 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 $4,240. Mr Royle also provided corporate consulting services which totalled $2,500 during the period ended 30 June 2013, Reliance Consulting, an entity to which Mr Royle is a Director.

NOTE 19: AUDITOR'S REMUNERATION

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

	2013	2012
	$	$
Amounts received or due and receivable by HLB Mann Judd for:
Audit or review of the financial statements	26,042	22,400
Total	26,042	22,400

NOTE 21: AMOUNTS OWING TO DIRECTORS AND OFFICERS

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

West Peak Iron Limited
Page | 60

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

NOTE 22: PARENT ENTITY DISCLOSURES

	2013	2012
	$	$
Assets
Current assets	1,145,705	1,291,427
Non-current assets	1,661,427	1,263,438
Total assets	2,807,132	2,554,865
	2013	2012
Liabilities	$	$
Current liabilities	148,746	106,155
Non-current liabilities	-	-
Total liabilities	148,746	106,155
Equity
Issued capital	6,557,868	3,858,577
Accumulated losses	(4,485,236)	(1,968,027)
Reserves	585,754	558,160
	2,658,386	2,448,710
Financial performance
Loss for the year	2,517,209	870,036
Other comprehensive income	-	-
Total comprehensive income	2,517,209	870,036

Contingent liabilities of the parent entity

For details on commitments, see Note 15.

West Peak Iron Limited
Page | 61

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 23: 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:

	2013 $	2012 $
Expense arising from equity-settled share-based payment transactions	27,594	-
Total Expense arising from equity-settled share-based payment transactions	27,594	-

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

During the period ended 30 June 2013, 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 F	West Peak Iron Ltd	2,000,000	21-Dec-12	30-Jun-14	$0.15	$0.02

(c). 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	Tranch F
Exercise Price	$0.20	$0.20	$0.20	$0.20	$0.30	$0.15
Grant date Share Price	$0.015	$0.20	$0.26	$0.26	$0.26	$0.068
Volatility	50%	60%	60%	60%	60%	104%
Risk-free interest rate	6.5%	6.5%	5.01%	5.01%	5.01%	2.69%
Grant Date	6-Apr-10	13-Oct-10	4-Mar-11	4-Mar-11	4-Mar-11	21-Dec-12
Expiry Date	30-Jun-13	30-Jun-13	30-Jun-13	30-Jun-13	30-Jun-13	30-Jun-14
Discount for lack of marketability	30%	30%	30%	30%	30%	30%
Fair Value at Grant	$0.001	$0.038	$0.087	$0.087	$0.063	$0.02

West Peak Iron Limited
Page | 62

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 2013 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 Company 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 2013.

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

Mr Gary Lyons
Non-Executive Chairman
Perth, Western Australia; Dated this 23rd day of September 2013

West Peak Iron Limited
Page | 63

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 2013, 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 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 company'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 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.

Independence

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

HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 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 worldwide organisation of accounting firms and business advisers.

West Peak Iron Limited
Page | 64

HLB Mann Judd
Accountants | Business and Financial Advisers

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 2013 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 2013. 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 2013 complies with section 300A of the Corporations Act 2001.

HLB Mann Judd
Chartered Accountants

N G Neill
Partner

Perth, Western Australia
23 September 2013

West Peak Iron Limited
Page | 65

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 23 September 2013.

Shareholder	Percentage
Teck Wong and Associates	16.28%

2. Number of holders in each class of equity securities and the voting rights attached (as at 23 September 2013)

Ordinary Shares

There are 322 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 2 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 23 September 2013.

a) Fully Paid Ordinary Shares

Spread of holdings	Holders	Securities	% of Issued Capital
NIL holding
1 - 1,000	8	507	0.00%
1,001 - 5,000	10	39,846	0.05%
5,001 - 10,000	55	527,717	0.66%
10,001 - 100,000	155	7,245,801	9.00%
100,001 -	94	72,686,109	90.29%
Total on register	322	80,500,000	100.00%
Total overseas holders	6	1,898,000	2.36%

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 .

ADDITIONAL SHAREHOLDER INFORMATION (continued)

West Peak Iron Limited
Page | 66

4. Marketable Parcel

There are three (3) shareholders with less than a marketable parcel (basis price $0.03).

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 23 September 2013) is as follows:

a) Ordinary shares top 20 holders and percentage held

Pos	Holder name	Designation	Securities	% of issued
1	* HSBC CUSTODY NOM AUST LTD		17,009,340	21.13%
2	GOLDEN WEST RES LTD		16,000,000	19.88%
3	* JOHN WARDMAN & ASSOC PL	WARDMAN S/F A/C	3,173,964	3.94%
4	* COBBLESTONES COPORATE PL	DRP INV A/C	2,500,000	3.11%
5	KEVIN HUGHES INV PL		2,500,000	3.11%
6	* DONGRAY RICHARD S + J	S/F A/C	1,500,000	1.86%
7	TYNEBRIDGE HLDGS PL	MARSHALL FAM A/C	1,370,000	1.70%
8	* RAVEN INV HLDGS PL	RAVEN INV A/C	1,310,000	1.63%
9	MARTIN JOHN DESMOND		1,200,000	1.49%
10	* ACT 2 PL		1,000,000	1.24%
11	* MCGEE CONST PL	MCGORMAN S/F A/C	1,000,000	1.24%
12	WALKER MATHEW DONALD		1,000,000	1.24%
13	KONDAS VIKTOR + BEATA		830,000	1.03%
14	ROYLE JOHN JAMES		822,500	1.02%
15	CORP & RESOURCE CONS PL		768,000	0.95%
16	TARAGO HLDGS PL	GREENUP S/F A/C	700,000	0.87%
17	DRYCA PL	DRYCA EMPLOYEES RE	700,000	0.87%
18	* DIAMOND RIVER PL	DIAMOND RIVER S/F	624,552	0.78%
19	CITICORP NOM PL		575,000	0.71%
20	* SABRELINE PL	JPR INV A/C	550,000	0.68%
		** Top 20 total -	55,133,356	68.48%

** All holders included
* - Denotes merged holder

West Peak Iron Limited
Page | 67

ASX ADDITIONAL INFORMATION

Company Secretary

The name of the company secretary is Sonu Cheema.

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 Securities Exchange.

Restricted Securities

The Group has no restricted securities.

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 15 to the Financial Statements (page 54 & 55).

AI assistant

EMETALS LIMITED — Annual Report 2013

64850_rns_2013-09-22_9086784d-a168-4a12-aa61-32eccffd9298.pdf

WEST PEAK IRON LTD

CONTENTS

CORPORATE INFORMATION

DIRECTORS' REPORT

Directors

Names, qualifications, experience and special responsibilities

DIRECTORS' REPORT (continued)

Mr Graham Marshall

Non-executive Director

Mr Jimmy Lee

Non-executive Director

Mr Teck Wong

Non-executive Director

Mr Sonu Cheema

Company Secretary

DIRECTORS' REPORT (continued)

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

Dividends

Principal Activities

DIRECTORS' REPORT (continued)

Review of Operations

Introduction

Liberia

DIRECTORS' REPORT (continued)

DIRECTORS' REPORT (continued)

Bomi South Project

DIRECTORS' REPORT (continued)

DIRECTORS' REPORT (continued)

Grand Bassa

DIRECTORS' REPORT (continued)

Bobo Creek Project

DIRECTORS' REPORT (continued)

Mount Koklun Project

Social Development Program

DIRECTORS' REPORT (continued)

DIRECTORS' REPORT (continued)

Western Australia

Pinyalling Project

DIRECTORS' REPORT (continued)

Kirkalocka Project

Narndee Project

DIRECTORS' REPORT (continued)

COMPETENT PERSONS' STATEMENTS

Geological Data and Interpretation

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

DIRECTORS' REPORT (continued)

Likely developments and expected results

Environmental legislation

Indemnification and insurance of Directors and Officers

Remuneration report (Audited)

Key Management Personnel

Remuneration philosophy

Independent director committee

DIRECTORS' REPORT (continued)

Non-executive director remuneration

Senior manager and executive director remuneration

Fixed Remuneration

Remuneration Report (continued)

Variable Remuneration

Employment Contracts

DIRECTORS' REPORT (continued)

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

EMETALS LIMITED Annual Report 2013