EMETALS LIMITED — Interim / Quarterly Report 2012

Mar 13, 2012

WEST PEAK IRON LTD

West Peak Iron Ltd
ABN 71 142 411 390

Half Yearly Financial Report
For the period ended 31 December 2011

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West Peak Iron Limited
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CONTENTS	PAGE
Directors' Report	2
Auditor's Independence Declaration	6
Condensed Statement of Comprehensive Income	7
Condensed Statement of Financial Position	8
Condensed Statement of Changes in Equity	9
Condensed Statement of Cash Flows	10
Notes to the Condensed Financial Statements	11
Directors Declaration	16
Independent Auditor's Review Report	17

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West Peak Iron Limited
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DIRECTORS' REPORT

Your directors submit the financial report of the consolidated entity for the half-year ended 31 December 2011. 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 period and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

David Parker	Executive Chairman
Graham Marshall	Non-executive Director
John Royle	Non-executive Director

Review and Results of Operations

Review of Operations

Highlights during the period and since the end of the half-year include:

• Exploration activities provide encouraging results at Liberian Projects, including:
• Rock chip samples collected have returned iron grades ranging from 30.4 to 64.6% Fe;
• High grade assay results confirm potential for hematite iron mineralisation with potential for direct shipping ore (DSO) and the potential for coarse grained soft itabirite with the potential to beneficiate to a high grade product
• Aeromagnetic Survey completed during the period on Liberian Projects, identifying potential for significant iron ore mineralisation
• Bomi South licence expanded by 82 km2 along strike from identified BIF
• Bobo Creek and Mt Koklun reconnaissance licence period extended

• Since the end of the period significant aeromagnetic anomalies were identified in all four project areas (Bomi South, Grand Bassa, Bobo Creek and Mt Koklun). The magnetic anomalies are coincident with confirmed iron formations and high grade hematite/ goethite "DSO" type mineralisation and collectively 58.5 km strike length of anomalous magnetic response.

• WA exploration continues, with encouraging results including:

• At the Pinyalling Project, the granting of three tenements for a total area of 194 km2, including key Warriedar tenement
• Warriedar prospect field mapping identifies intermittently outcropping BIF over a 1.8km strike with grades ranging from 41% to 61% Fe

• Heritage survey carried out to support a program of works application at the Dandaraga project

• Completion of a capital raising of $490,000 pre costs through the issue of 3,500,000 shares at $0.14 as part of a placement to Sophisticated Investors.

Liberia Project Overview

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. The geology is predominantly comprised of composite gneiss with generally E-W-striking itabirite units. These units outcrop intermittently over the tenement as ridges with strike lengths up to 4 km and elevations up to 100m, but generally averaging 30-50m.

A brief field visit to assess a historic magnetic anomaly was carried out and five samples were taken. These samples ranged in grade from 52.49% to 60.41% Fe and represented the identified iron enrichment which was in the form of hematite-rich capping and coarse grained magnetite-rich iron formation.

Subsequent to the field visit preliminary data from the recently completed detailed aeromagnetic survey has shown the anomaly to be more extensive.

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

The area visited is part of a cluster of magnetic anomalies which are located within 2.5 km of the sealed road and the historic railway line that linked the Bomi Hills iron operation to the deep water port in Monrovia. Bomi Hills is located 8 km to the north and currently has reported reserves of 50 Mt at 68% Fe (Elenilto Minerals and Mining website).

West Peak was granted an additional area of 82 km² on the western side of the Bomi South licence. This now increases the project area to approximately 564 km², with a length of 55 km containing intermittent outcropping iron formation.

Since the end of the period, the geophysical survey has identified five main areas of magnetic anomalies which range in strike length from 5 km to 10 km with varying orders of magnetic response. The aeromagnetic survey has also identified key structures which could provide focus points for supergene enrichment and areas where potential structural thickening of the iron formation may be present.

Grand Bassa Project

The Grand Bassa Project consists of an exploration licence, and is located approximately 10 km east of Buchanan. 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 operating port of Buchanan.

Since the end of the period, the aeromagnetic survey has identified two anomalous magnetic responses over a strike length of approximately 3 km. From a previous field trip, surface iron enrichment in the form of a hematite/goethite-rich cap is coincident with the magnetic anomalies which are interpreted to be the response of the magnetite-bearing itabirite units.

Bobo Creek Project

The Bobo Creek project is located approximately 70 km east of the port town of Buchanan, which is an operating port exporting iron from ArcelorMittal's Yekepa Iron mine. The project area covers 200 km² and is accessed by a well maintained unsealed road that is used to service the logging industry. The licence consists predominantly of a gneiss unit and a composite unit which has iron formations inclusive over a strike length of approximately 20 km. During the period a field visit was carried out which confirmed the presence of iron formation in the project area and associated surface iron enrichment.

Surface iron enrichment has been identified in the form of a hematite/goethite-rich cap interpreted to overlie itabirite units. Rock chip results returned ranged between 22.98% and 58.25% Fe and represent hematite-rich capping and magnetite bearing iron formation which may be beneficiated. During the period West Peak applied for and was granted an additional period of six months under the terms of a reconnaissance licence.

Since the end of the period, the aeromagnetic survey has identified an anomalous magnetic response over a strike length of approximately 15 km. Previous field visits to the project have identified surface iron enrichment in the form of a hematite/goethite-rich cap overlying itabirite units which are coincident with the magnetic anomaly.

Mt Koklun Project

The Mt Koklun project is located 100 km inland from the port of Buchanan and covers an area of 129 km². Access to the project area is via well maintained unsealed roads which originate from the deep water port town of Buchanan. These roads service the logging industry and also act as the service road for the operating railway line that links ArcelorMittal's Yekepa Iron mine to Buchanan. During the period West Peak applied for and was granted an additional period of six months under the terms of a reconnaissance licence.

Since the end of the period, the detailed aeromagnetic survey has identified magnetic anomalies in an interpreted fold nose where a brief field visit identified surface iron enrichment in the form a goethite/hematite cap interpreted to overlie a magnetite-bearing iron formation.

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Dig Creek Project

A field visit was carried out to the Dig Creek project to assess the iron potential. Surface iron enrichment was encountered, however the nature and the size is deemed to be not of potential economic significance and the reconnaissance licence was not renewed upon the expiration date.

Western Australia Project Overview

Santy Well Project

The Santy Well Project is located 60km north of Mullewa and consists of approximately 40 km of the northerly limb of the Tallering Greenstone Belt. The project is now focussed on assessing the potential for gold and base metals through a farm-in agreement with Cohiba Minerals Ltd (Cohiba). Since the end of the period the conditions precedent of the Farm-In agreement with Cohiba were satisfied.

Pinyalling Project

The Pinyalling project is located approximately 420 km northeast of Perth and 50 km west northwest of Paynes Find covering parts of the Warriedar greenstone belt which hosts significant iron ore mineralisation. During the period West Peak was granted three exploration tenements with a total area of 194 km², including the Warriedar tenement (E59/1696). An initial field visit to the Warriedar prospect to carry out prospect mapping and rock chip sampling has demonstrated the potential for the tenement to contain DSO mineralisation. Fifteen rock chip samples were taken with iron grades ranging from 40.91% to 61.17% Fe, with an average of 55.14% Fe with moderate impurities. Mapping shows iron enrichment generally occurs in small outcrops of goethite rich banded iron formation (BIF) over a strike of 1.8 km.

Dandaraga Project

The Dandaraga Project is located approximately 35 km southeast of Sandstone in the emerging Yilgarn Iron Province of Western Australia. The project area comprises four tenements of which three are granted.

Previously West Peak carried out an initial field reconnaissance visit which confirmed the presence of an outcropping BIF which is coincident with a strong aeromagnetic anomaly with a strike length of 7 km. Rock chip traverse sampling included 163 metres at 38.87% Fe.

During the period West Peak signed a heritage agreement with the Wutha group. A heritage survey to support a program of works application was carried out and the key areas of interest have no significant heritage sites identified.

Other Project Areas & Tenement Applications

The Company has applied for additional tenure in the Mid West based on mapped greenstone and aeromagnetic features. These applications have increased the Company's footprint in the Mid West, with project areas now comprising: Santy Well, Pinyalling, Kirkalocka, Paynes Find, Mount Magnet, Cue and Dandaraga.

Additional work will be completed on these tenements closer to granting of the tenements.

Project Generation and Acquisition

During the period West Peak reviewed a number of resource based projects for potential investment. The Company has focused on Iron Ore based acquisitions, but is not limited to iron projects and as such has reviewed a range of resource based projects.

The Company will continue to grow its tenement portfolio through tenement applications and will continue to evaluate potential new resources projects based in Australia and overseas with a view to increasing the number of projects held by the Company.

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DIRECTORS' REPORT (continued)

Review of Operations (continued)

Corporate

The following material corporate events occurred during the half year ended 31 December 2011:

On 30 September 3,500,000 shares and 2,000,000 unlisted Company Options exercisable at $0.20 on or before 30 June 2013 were released from escrow.

On 20 October 3,500,000 shares were issued at a consideration of $0.14 to raise $490,000 before costs. In addition, successful applicants of the placement were to receive 1,750,000 unlisted Company Options exercisable at $0.20 on or before 30 June 2013 for nil consideration, following shareholder approval. Shareholder approval was received for the issue of 1,750,000 Company Options on 30 November 2011, and the Company issued these Company Options following the end of the period, on 14 February 2012.

On 10 October Mr Sonu Cheema was appointed as Company Secretary, replacing Mr David Parker who remains as the Executive Chairman. Mr Cheema is an accountant and company secretary who has worked for corporate consulting and mineral exploration companies with interests in Australia, Africa and Mongolia.

Significant Events Since the end of the period

On 14 February 2012 the Company issued 1,750,000 unlisted Company Options exercisable at $0.20 on or before 30 June 2013 having received shareholder approval on 30 November 2012.

On 14 February 2012 the Company issued 190,000 shares at $0.20 to raise $38,000. This was as a result of the exercise of 190,000 unlisted Company Options exercisable at $0.20 on or before 30 June 2013.

On 28 February 2012 the Company issued 429,535 shares at $0.20 to raise $85,907. This was as a result of the exercise of 429,535 unlisted Company Options exercisable at $0.20 on or before 30 June 2013.

Operating results

The loss of the consolidated entity for the period was $397,777.

Auditor Independence and Non-Audit Services

Section 307C of the Corporation Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the Company with an Independence Declaration in relation to the audit of the annual report. This Independence Declaration is set out on page 6 and forms part of this directors' report for the half-year ended 31 December 2011.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001.

David Parker

Executive Chairman

Perth, Western Australia; Dated this 13 day of March 2012

Competent Person Statement

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 Australasian Institute of Geoscientists (AIG). 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.

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HLB Mann Judd
Accountants | Business and Financial Advisers

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of West Peak Iron Limited for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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

Perth, Western Australia
13 March 2012

HLB Mann Judd (WA Partnership) ABN 22 193 232 714
Level 4 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC WA 6849 Western Australia. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533.
Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au
Liability limited by a scheme approved under Professional Standards Legislation
HLB Mann Judd (WA Partnership) is a member of HLB International, a world-wide organisation of accounting firms and business advisers

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CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Notes	Consolidated 31 Dec 2011 $	Company 31 Dec 2010 $
Other income		37,039	8,937
Employment benefits expense		(194,112)	(157,673)
Other expenses		(240,704)	(97,391)
Loss before income tax expense	2	(397,777)	(246,127)
Income tax expense		-	-
Loss after income tax expense		(397,777)	(246,127)
Other comprehensive income		-	-
Total comprehensive loss for the period		(397,777)	(246,127)
Basic loss per share (cents per share)		(1.57)	(1.69)

The accompanying notes form part of these financial statements

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CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011

	Note	Consolidated 31 Dec 2011 $	Consolidated 30 Jun 2011 $
Assets
Current Assets
Cash and cash equivalents		1,063,649	1,414,908
Trade and other receivables		21,117	17,506
Total Current Assets		1,084,766	1,432,414
Non-Current Assets
Property, plant and equipment		52,403	8,608
Deferred exploration and evaluation expenditure	3	1,718,050	1,385,860
Total Non-Current Assets		1,770,453	1,394,468
Total Assets		2,855,219	2,826,882
Liabilities
Current Liabilities
Trade and other payables		63,157	98,392
Total Current Liabilities		63,157	98,392
Total Liabilities		63,157	98,392
Net Assets		2,792,062	2,728,490
Equity
Issued capital	4	3,729,670	3,268,321
Reserves		558,160	558,160
Accumulated losses		(1,495,768)	(1,097,991)
Total Equity		2,792,062	2,728,490

The accompanying notes form part of these financial statements

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CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Consolidated

	Issued Capital	Option Reserves	Accumulated Losses	Total Equity
	$	$	$	$
Balance at 1 July 2011	3,268,321	558,160	(1,097,991)	2,728,490
Loss for the period	-	-	(397,777)	(397,777)
Total comprehensive loss for the period	-	-	(397,777)	(397,777)
Shares issued	490,000	-	-	490,000
Transaction costs on share issue	(28,651)	-	-	(28,651)
As at 31 December 2011	3,729,670	558,160	(1,495,768)	2,792,062

Company

	Issued Capital	Option Reserves	Accumulated Losses	Total Equity
	$	$	$	$
Balance at 1 July 2010	161,941	2,134	(9,927)	154,148
Loss for the period	-	-	(246,126)	(246,126)
Total comprehensive loss for the period	-	-	(246,126)	(246,126)
Shares issued as part of prospectus	2,600,000	-	-	2,600,000
Options issued as consideration for tenements	-	133,349	-	133,349
Shares issued as consideration for tenements	700,000	-	-	700,000
Transaction costs on share issue	(193,620)	-	-	(193,620)
As at 31 December 2010	3,268,321	135,483	(256,053)	3,147,751

The accompanying notes form part of these financial statements

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CONDENSED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

| | Consolidated
31 Dec 2011
$
Inflows/
(Outflows) | Company
31 Dec 2010
$
Inflows/
(Outflows) |
| --- | --- | --- |
| Cash flows from operating activities | | |
| Payments to suppliers and employees | (404,223) | (240,968) |
| Interest received | 37,039 | 8,937 |
| Net cash (used in) operating activities | (367,184) | (232,031) |
| Cash flows from investing activities | | |
| Payments for property, plant and equipment | (46,057) | (7,160) |
| Payments for exploration and evaluation expenditure | (399,367) | (203,329) |
| Net cash (used in) investing activities | (445,424) | (210,489) |
| Cash flows from financing activities | | |
| Proceeds from issue of shares | 490,000 | 2,600,000 |
| Transaction costs on issue of shares | (28,651) | (193,620) |
| Net cash provided by financing activities | 461,349 | 2,406,380 |
| Net (decrease)/increase in cash held | (351,259) | 1,963,860 |
| Cash and cash equivalents at the beginning of the period | 1,414,908 | 107,795 |
| Cash and cash equivalents at the end of the financial period | 1,063,649 | 2,071,655 |

The accompanying notes form part of these financial statements

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The interim consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 'Interim Financial Reporting', Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board ('AASB'). Compliance with AASB 134 ensures compliance with IAS 34 'Interim Financial Reporting'.

This condensed half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the group as in the full financial report.

It is recommended that this financial report be read in conjunction with the annual financial report for the period ended 30 June 2011 and any public announcements made by West Peak Iron Limited and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

The accounting policies adopted are consistent with those of the previous financial year.

Basis of preparation

The interim report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The Group is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted.

For the purpose of preparing the interim report, the half-year has been treated as a discrete reporting period.

Significant accounting judgements and key estimates

The preparation of interim financial reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

In preparing this interim report, the significant judgements made by management in applying the Group's accounting policies and the key estimates of uncertainty were the same as those applied for the period ended 30 June 2011.

Adoption of new and revised Accounting Standards

In the half-year ended 31 December 2011, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2011.

The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2011. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 2: LOSS BEFORE INCOME TAX EXPENSE

The following revenue and expense items are relevant in explaining the performance for the half-year:

	Consolidated 31 Dec 2011 $	Company 31 Dec 2010 $
Income
Interest Income	37,039	8,937
Expenses
Administrative expenses	18,974	6,048
ASX and registry fees	20,760	36,849
Computer and software expenses	2,636	2,042
Employee benefits expenses	194,112	157,673
Legal and professional	51,075	17,489
Rent	56,585	30,000
Other	90,674	4,963

NOTE 3: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE

	Consolidated 31 Dec 2011 $	Consolidated 30 Jun 2011 $
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at the beginning of the period	1,385,860	57,437
Expenditure incurred and acquisition costs
Santy Well Project	17,350	347,158
Pinyalling Project	10,071	717,150
Dandaraga	46,001	13,853
Other (WA)	16,533	54,198
Liberia	277,946	235,748
Less: exploration expenditure written off	(35,711)	(39,684)
Total exploration expenditure balance at end of the period	1,718,050	1,385,860

The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the discovery of commercially viable mineral or other natural resource deposits and their successful development and commercial exploration or sale of the respective mining areas.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 4: ISSUED CAPITAL AND RESERVES

| | Consolidated
31 December 2011 | | Consolidated
30 June 2011 | |
| --- | --- | --- | --- | --- |
| | No. | $ | No. | $ |
| Ordinary shares | | | | |
| Movement in number of fully paid ordinary shares | | | | |
| Opening balance | 24,000,001 | 3,268,321 | 7,500,001 | 161,941 |
| Shares issued | 3,500,000 | 490,000 | - | - |
| Shares issued as part of IPO | - | - | 13,000,000 | 2,600,000 |
| Shares issued as part of CRC and Legendre agreements on 13 October 2010 | - | - | 3,500,000 | 700,000 |
| Transaction costs arising from issue of shares | - | (28,651) | - | (193,620) |
| Closing balance | 27,500,001 | 3,729,670 | 24,000,001 | 3,268,321 |
| Company options | | | | |
| Movement in number of options | | | | |
| Opening balance | 12,500,000 | 558,160 | 5,000,000 | 2,134 |
| Options issued | - | - | 7,500,000 | 556,026 |
| Closing balance | 12,500,000 | 558,160 | 12,500,000 | 558,160 |

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 5: SEGMENT REPORTING

Identification of reportable segments

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

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

Location of interests and nature of projects

Western Australia

West Peak has built up a land holding in the emerging Mid West and Yilgarn iron provinces of Western Australia where major iron projects are currently being commissioned and the required infrastructure is being built. West Peak holds an exploration portfolio of 43 tenements for approximately 1,955 km² that consists of 18 granted licences (1,012 km²) and 25 pending licences (944 km²) 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 Exploration Licences and four Reconnaissance Licences for a total area of 1,692 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	Total
	$	$	$	$
31 December 2011
Segment revenue	-	-	37,039	37,039
Exploration written off	(1,512)	(34,199)	-	(35,711)
Other expenses	-	(84,088)	(315,017)	(399,105)
Segment result	(1,512)	(118,287)	(277,978)	(397,777)
Unallocated revenues and expenses				277,978
Results from operating activities				119,799
Segment assets	1,220,801	551,990	1,082,428	2,855,219
Segment liabilities	-	(1,971)	(61,186)	(63,157)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 5: SEGMENT REPORTING (continued)

Comparative information for the half-year ended 31 December 2010 has not been presented as, during that period, the company had only one segment being Exploration Activities in Australia.

NOTE 6: DIVIDENDS

The directors of the Group have not declared an interim dividend.

NOTE 7: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

NOTE 8: EVENTS SUBSEQUENT TO REPORTING DATE

On 14 February 2012 the Company issued 1,750,000 unlisted Company Options exercisable at $0.20 on or before 30 June 2013 having received shareholder approval on 30 November 2012.

On 14 February 2012 the Company issued 190,000 shares at $0.20 to raise $38,000. This was as a result of the exercise of 190,000 unlisted Company Options exercisable at $0.20 on or before 30 June 2013.

On 28 February 2012 the Company issued 429,535 shares at $0.20 to raise $85,907. This was as a result of the exercise of 429,535 unlisted Company Options exercisable at $0.20 on or before 30 June 2013.

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DIRECTORS' DECLARATION

In the opinion of the directors of West Peak Iron Limited ('the Company'):

1. the financial statements and notes thereto, as set out on pages 7 to 15, are in accordance with the Corporations Act 2001 including:

a. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
b. giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of its performance for the half-year then ended; and

1. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to S.303 (5) of the Corporations Act 2001.

David Parker
Executive Chairman
Dated this 13 day of March 2012

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HLB Mann Judd
Accountants | Business and Financial Advisers

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of West Peak Iron Limited

Report on the Condensed Half-Year Financial Report

We have reviewed the accompanying half-year financial report of West Peak Iron Limited ("the company") which comprises the condensed statement of financial position as at 31 December 2011, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors' responsibility for the half-year financial report

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

Auditor's responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

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

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

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West Peak Iron Limited
Page | 18

HLB Mann Judd

Accountants | Business and Financial Advisers

Matters relating to the electronic presentation of the reviewed half-year financial report

This review report relates to the half-year financial report of the consolidated entity for the half-year ended 31 December 2011 included on the company's website. The company's directors are responsible for the integrity of the company's website. We have not been engaged to report on the integrity of this website. The review report refers only to the half-year financial report identified above. It does not provide an opinion on any other information which may have been hyperlinked to/from the half-year financial report. If users of the half-year financial report are concerned with the inherent risks arising from publication on a website they are advised to refer to the hard copy of the reviewed half-year financial report to confirm the information contained in this website version of the half-year financial report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of West Peak Iron Limited is not in accordance with the Corporations Act 2001 including:

a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and
b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

HLB MANN JUDD
Chartered Accountants

Perth, Western Australia
13 March 2012

N G NEILL
Partner