EMMERSON RESOURCES LIMITED — Interim / Quarterly Report 2012

Mar 13, 2012

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ABN 53 117 086 745

HALF-YEAR FINANCIAL REPORT

31 DECEMBER 2011

EMMERSON RESOURCES LIMITED

CONTENTS

Corporate Directory 1 Directors’ Report 2 Consolidated Statement of Comprehensive Income 5 Consolidated Statement of Financial Position 6 Consolidated Statement of Changes in Equity 7 Consolidated Statement of Cash Flows 8 Notes to Consolidated Financial Statements 9 Directors’ Declaration 12 Auditors Independence Declaration 13 Independent Auditor’s Review Report 14

CORPORATE DIRECTORY

DIRECTORS

SOLICITORS

Andrew McIlwain, Non-executive Chairman Rob Bills, Chief Executive Officer Timothy Kestell, Non-executive Director Simon Andrew, Non-executive Director Peter Reeve, Non-executive Director

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

COMPANY SECRETARY

Trevor Verran

REGISTERED OFFICE

Ward Keller Lawyers Level 7, NT House 22 Mitchell Street Darwin NT 0807

3 Kimberley Street West Leederville WA 6007

PO Box 1573 West Perth WA 6872 Telephone: +61 (08) 9381 7838 Facsimile: +61 (08) 9381 5375 Internet: www.emmersonresources.com.au

TENNANT CREEK OFFICE

1230 Standley Street Tennant Creek, NT, 0860

BANKERS

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

AUDITORS

Ernst & Young The Ernst & Young Building 11 Mounts Bay Road Perth WA 6000

SHARE REGISTER

PO Box 1244 Tennant Creek NT 0861 Telephone: +61 (08) 8962 1425 Facsimile: +61 (08) 8962 3376

Computershare Investor Services Level 2, 45 St Georges Terrace Perth WA 6000

ASX CODE

ERM

GPO Box D182 Perth WA 6840 Telephone: 1300 850 505

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EMMERSON RESOURCES LIMITED

DIRECTORS’ REPORT

Your directors submit their report 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 the Company’s directors in office during the half-year and until the date of this report are as follow.

Andrew McIlwain, Non-executive Chairman Rob Bills, Managing Director & Chief Executive Officer Timothy Kestell, Non-executive Director Simon Andrew, Non-executive Director Peter Reeve, Non-executive Director

REVIEW AND RESULTS OF OPERATIONS

Operating Results for the Half-year

The net loss for the half-year ended 31 December 2011 was $931,138 compared to the previous halfyear of $574,438.

The major items comprising the net loss for the half-year were interest received revenue of $268,688 (2010: $342,720) offset by consulting and legal expenses of $140,292 ($152,049), employee benefits expense of $664,739 (2010: $ 525,557), insurance expense of $129,931 (2010: $120,873) and other administrative expenses of $140,337 (2010: 119,370).

Financial Position

Net assets and total equity increased by $5,402,614 during the half-year predominantly due to the following movements in cash and exploration and evaluation assets:

• The net increase in cash for half-year was $2,215,902 and cash in bank at the end of the half-year was $11,621,033. The increase in cash was largely due to proceeds from a share placement less exploration expenditure incurred on mining tenements.

• Exploration and evaluation assets increased by $3,935,461 during the half-year due to exploration expenditure incurred on mining tenements and the balance of exploration and evaluation assets carried forward at the end of the half-year was $ 15,218,979.

Net assets and total equity at 31 December 2011 was $32,649,609.

Cash and assets utilised by the Company for the period is consistent with the Company’s business objectives and the Directors believe the Company is in a position to continue its exploration endeavors.

Review of Operations

Emmerson Resources Limited (Emmerson) is exploring the Tennant Creek Mineral Field (TCMF) in joint venture with Ivanhoe Australia Limited (Ivanhoe) pursuant to a Farm-in agreement whereby Ivanhoe is sole funding $28 million in exploration to acquire and retain 51%.

Operational focus during the half-year has been on Emmerson’s sole funded Monitor and Goanna projects in the Gecko Structural Corridor of the TCMF where new copper discoveries were identified. Emmerson identified a number of new targets including a series of anomalies within the Gecko Structural Corridor following the trial one of the world’s most powerful, helicopter borne (HeliTEM) geophysical systems over a number of known deposits. Many of these targets still remain untested.

The key to success at Goanna and Monitor was recognising that the mineralisation and alteration to many of the larger deposits could be directly detected by electrical geophysics – regardless of whether mineralisation was associated with iron-oxides.

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EMMERSON RESOURCES LIMITED

DIRECTORS’ REPORT

Monitor Discovery

The Monitor project, like Goanna, represents a totally new ore position within the Gecko Structural Corridor. The discovery drill hole, GRC 1355 at the Monitor project, 2km to the west of Goanna, intersected 27m @ 1.75% copper including 6m @ 2.67% copper and consisted of sulphide mineralisation over some 98m. Assays from the individual 1m splits from drill hole GRC 1355 at Monitor have confirmed the high copper grades, with one metre interval assaying up to 13.8% copper. This drill hole also returned high-grade bismuth, which typically is a pathfinder element for gold. Further drilling under the copper intersected a very thick zone of gold copper from 437m down hole in GODD008 including: 12m @ 16.9g/t gold, 0.13% bismuth, 2.00% copper, 1.59g/t silver and within this zone: 4m @ 37.4g/t gold, 1.64g/t silver, including 1m @ 93.7g/t gold and 4.06g/t silver from 437m and 440m respectively down the hole. An adjacent, but separate gold copper zone, from 441m down the drill hole produced intersections including: 3m @ 17.4g/t gold and 2.66g/t silver, 0.36% bismuth, 4.33% copper including 1m @ 18.9 g/t gold, 3.02g/t silver, 8.47% copper from.

Most recently, drill hole GRC 1371 intersected 6m @ 4.8% copper, 27.3g/t silver, 0.34g/t gold and 0.33% bismuth from 348m and a further 6m @ 4.9% copper, 26.8g/t silver and 0.12 g/t gold from 370m which included 2m @ 10.45% copper and 21.5g/t silver from 370m. This hole was significant for the following reasons: it was a 200m step out from existing drilling and confirmed the strike extent of high-grade copper continues; it drilled the mid-point of the HeliTEM anomaly and thus provided additional confidence in the HeliTEM mapping the mineralisation and finally; also contained high bismuth which suggest excellent potential for underlying gold mineralisation.

The Monitor mineralisation is open in all directions with excellent potential to extend the strike of the high-grade copper and also given the associated high-grade bismuth, locate additional high-grade gold at depth down plunge.

Goanna Discovery

A combination of additional ground geophysics (mainly Induced Polarisation), and new geological and structural concepts indicated potential outside of the traditional magnetic targets. The Goanna mineralisation is 200m east of the known Gecko mineralisation (and underground mine development) and remains open in all directions.

The discovery hole at Goanna was GODD 004 which intersected multiple zones of very high-grade copper including 2m @ 4.0% copper from 289m; 21m @ 2.63% copper from 297m including 7m @ 4.96% copper from 299m, or including 12m @ 3.89% copper.

Since then drilling has delineated four separate high-grade shear zones, each appears to be sub vertical consisting of a shear-link with multiple quartz-sulphide-chlorite vein assemblages, sometimes incorporating magnetite and hematite “ironstone” but within the overall shear system. Of particular significance are drill holes GRC 1372, which intersected 2m @ 2.05% copper from 70m below the surface and supports the potential of the Far South Shear hosting shallow copper in the oxide zone (this hole also intersected the deep Southern and Central Shears resulting in spectacular copper intercepts of 6m @ 4.13% copper including 3m @ 5.81% copper and 0.15% bismuth); and GRC 1367 where high-grade gold (and copper) was intersected in a similar scenario to the Monitor project. This drill hole intersected 17m @ 3.50g/t gold, 1.50 g/t silver, and 4.12% copper including 4m @ 11.3g/t gold, 3.95 g/t silver, 9.99% copper and 0.15% bismuth from 288m down the hole. Again the highgrade bismuth suggests good additional potential for gold mineralisation at depth. Moreover, based on the HeliTEM anomaly, good potential also exists to define additional shear zones, particularly to the north.

There is also excellent potential outside of the Gecko area as this structural corridor stretches over 8km, contains multiple HeliTEM anomalies and remains largely unexplored for this new style of mineralisation.

3

EMMERSON RESOURCES LIMITED

DIRECTORS’ REPORT

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Recent Results and Location Diagram

These new discoveries were supported during the half-year by the declaration of an Indicated and Inferred JORC resource estimate over the Gecko and Orlando deposits of 2.46mt @ 2.1% copper and 2g/t gold. This independent study equates to 50,800t copper metal or 390,000 oz gold equivalent. This initial resource estimate for Gecko and Orlando is a great start and given the associated nearby infrastructure, adds tremendous value to the Monitor and Goanna discoveries. Also the barriers to production are significantly lowered given the discoveries are on mine leases, are covered by existing native title agreements and the company owns 100% of the nearby Warrego mill.

The information in this report relating to Exploration Results and Mineral Resources is based on information compiled by Steve Russell, who is a Member of the Australian Institute of Geoscientists and has sufficient exploration experience which is relevant to the style of mineralisation under consideration 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’. Steve Russell is a full time employee of Emmerson Resources Limited and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report which relates to Mineral Resources is based upon information compiled by Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit 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. Ian Glacken consents to the inclusion in the report of a summary based upon his information in the form and context in which it appears.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor's independence declaration under Section 307C of the Corporations Act 2001 is set out on page 13 and forms part of the Director's Report for the half-year ended 31 December 2011.

Signed in accordance with a resolution of the Directors made pursuant to Section 306(3) of the Corporations Act 2001 .

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Rob Bills Managing Director & Chief Executive Officer 14 March 2012

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EMMERSON RESOURCES LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

REVENUE FROM CONTINUING OPERATIONS Management fee – exploration services Interest received TOTAL REVENUE OTHER INCOME Sundry TOTAL REVENUE AND OTHER INCOME EXPENSES Compliance and regulatory expenses Consulting and legal expenses Depreciation expense Employee benefits expense Exploration expenditure impairment Finance costs Insurance expense Occupancy expense General and administration expenses TOTAL EXPENSES LOSS BEFORE INCOME TAX Income tax LOSS FOR HALF-YEAR OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME FOR HALF-YEAR Basic loss per share - cents per share Diluted loss per share - cents per share	Consolidated Half-year Half-year ended ended 31 December 31 December 2011 2010 $ $ 43,164 186,536 268,688 342,720
	311,852 529,256 16,612 -
	328,464 529,256
	70,079 72,471 140,292 152,049 17,345 58,245 664,739 525,557 42,627 - 183 8,292 129,931 120,873 54,069 46,837 140,337 119,370
	1,259,602 1,103,694
	(931,138) (574,438) - -
	(931,138) (574,438) - -
	(931,138) (574,438)
	0.40 0.25 0.40 0.25

The accompanying notes form part of these financial statements.

5

EMMERSON RESOURCES LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011

Notes ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Other financial assets Total Current Assets Non-current Assets Property, plant and equipment Exploration and evaluation assets 3 Total Non-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Provisions Interest bearing liabilities Total Current Liabilities Non-current Liabilities Interest bearing liabilities Total Non-current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 4 Other reserves Accumulated losses TOTAL EQUITY	Consolidated 31 December 30 June 2011 2011 $ $ 11,621,033 9,405,131 760,422 176,067 - 19,665 899,682 1,618,000
	13,281,137 11,218,863
	6,069,909 6,139,722 15,218,979 11,283,518
	21,288,888 17,423,240
	34,570,025 28,642,103
	1,766,540 1,213,941 151,451 177,235 2,425 3,102
	1,920,416 1,394,278
	- 830
	- 830
	1,920,416 1,395,108
	32,649,609 27,246,995
	39,430,560 33,151,621 2,715,903 2,661,090 (9,496,854) (8,565,716)
	32,649,609 27,246,995

The accompanying notes form part of these financial statements.

6

EMMERSON RESOURCES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Issued	Other	Accumulated	Total
	Capital	Reserves	Losses	Equity
	$	$	$	$
HALF-YEAR ENDED 31 DECEMBER	2010:
Balance at 1 July 2010	33,151,621	2,552,131	(6,878,914)	28,824,838
Loss for for the half-year	-	-	(574,438)	(574,438)
Other comprehensive income	-	-	-	-
Total comprehensive income for the
half-year	-	-	(574,438)	(574,438)
Share-based payments	-	31,229	-	31,229
Balance at 31 December 2010	33,151,621	2,583,360	(7,453,352)	28,281,629
HALF-YEAR ENDED 31 DECEMBER	2011:
Balance at 1 July 2011	33,151,621	2,661,090	(8,565,716)	27,246,995
Loss for for the half-year	-	-	(931,138)	(931,138)
Other comprehensive income	-	-	-	-
Total comprehensive income for the
half-year	-	-	(931,138)	(931,138)
Shares issued during the half-year	6,731,799	-	-	6,731,799
Share issue costs	(452,860)	-	-	(452,860)
Share-based payments	-	54,813	-	54,813
Balance at 31 December 2011	39,430,560	2,715,903	(9,496,854)	32,649,609

The accompanying notes form part of these financial statements.

7

EMMERSON RESOURCES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CASH FLOWS FROM OPERATING ACTIVITIES Management fees received Payments to suppliers and employees (administration) Interest received Interest paid Other NET CASH FLOWS USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from withdrawal of security deposits Purchase of property, plant and equipment Payments for exploration Reimbursement of exploration costs from Ivanhoe NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Payment of share issue costs Payment of finance lease liabilities NET CASH FLOWS PROVIDED BY/(USED IN) FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of period CASH AND CASH EQUIVALENTS AT END OF PERIOD	Consolidated Half-year Half-year ended ended 31 December 31 December 2011 2010 $ $ 15,080 225,323 (1,068,398) (953,008) 287,431 318,400 (183) (336) 16,612 -
	(749,458) (409,621)
	718,318 161,000 (25,225) (55,951) (4,635,397) (4,682,766) 212,008 5,634,978
	(3,730,296) 1,057,261
	6,731,799 - (34,636) - (1,507) (1,354)
	6,695,656 (1,354)
	2,215,902 646,286 9,405,131 10,881,993
	11,621,033 11,528,279

The accompanying notes form part of these financial statements.

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EMMERSON RESOURCES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 134 Interim Financial Reporting . Compliance with AASB 134 ensures compliance with the International Financial Reporting Standard IAS 34 Interim Financial Reporting .

Basis of Preparation

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position, financing activities and investing activities of the Company as the full financial report.

It is recommended therefore, that the half-year financial report be read in conjunction with the annual financial report of Emmerson Resources Limited for the year ended 30 June 2011 and considered together with any public announcements made by Emmerson Resources Limited during the half-year ended 31 December 2011 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 and the ASX Listing rules .

The half-year financial report has been prepared on the basis of historical cost, except for financial assets and financial liabilities which have been measured at fair value. Cost is based on the fair values of the consideration given in exchange for assets.

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

The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report for the year ended 30 June 2011, except for the impact of new and amended accounting standards described below.

Adoption of New and Amended Accounting Standards

The Company has not elected to early adopt any of the new standards or amendments that are issued but not yet effective.

The Company has adopted all of the new and amended Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current reporting period. The adoption of these new and amended Standards and Interpretations has not resulted in a significant or material change to the Company’s accounting policies and has no effect on the financial position or performance of the Company.

2. SEGMENT INFORMATION

The Company has identified its operating segments based on the internal management reports that are reviewed and used by the board of directors (chief operating decision maker) in assessing performance and determining the allocation of resources.

The Company operates in one business segment and one geographical segment, namely mineral exploration in Australia. The revenues and results of this segment are those of the Company as a whole and are set out in the statement of comprehensive income.

9

EMMERSON RESOURCES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

	Consolidated	Consolidated
	Half-year	Year
	ended	ended
	31 December	30 June
	2011	2011
	$	$
3. EXPLORATION AND EVALUATION ASSETS
Costs carried forward in respect of areas of interest
in pre-production exploration and evaluation phases
Carrying amount at beginning of period	11,283,518	9,767,380
Additions	3,978,088	1,844,774
Impairment	(42,627)	(328,636)
Carrying amount at end of period	15,218,979	11,283,518
The recoverability of the carrying amount of the exploration and evaluation assets is		dependent on
the continuance of the Group’s rights to tenure of the interest, the	results of future exploration, and
the successful development and commercial exploitation, or alternatively, sale of the respective
areas of interest.
Expenditure on mineral exploration tenements (other than the Group’s sole funded		tenements) is
being incurred by Ivanhoe Australia Limited pursuant to the Farm-In and Exploration Joint Venture
agreement to meet minimum tenement expenditure requirements.
	Consolidated
	Half-year	Half-year
	ended	ended
	31 December	31 December
	2011	2011
	Number of
	Shares	$
4. ISSUED CAPITAL
(a) Fully paid ordinary shares
Balance at beginning of half-year	226,295,213	33,151,621
Issued to employees under performance rights plan	350,000	-
Issued for cash under a share placement	30,599,089	6,731,799
Share issue costs	-	(452,860)
Balance at end of half-year	257,244,302	39,430,560

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EMMERSON RESOURCES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(b) Options over ordinary shares Exercise price of $0.25 expiring 31/07/2012 Exercise price of $0.25 expiring 13/12/2012 Exercise price of $0.30 expiring 13/12/2012 Exercise price of $0.50 expiring 21/11/2012 Exercise price of $0.25 expiring 11/03/2013 Exercise price of $0.25 expiring 5 years after 1.5 x 20 day post listing VWAP	Consolidated 31 December 30 June 2011 2011 Number of options Number of options 5,500,000 5,500,000 5,000,000 5,000,000 5,000,000 5,000,000 7,000,000 7,000,000 500,000 500,000 1,000,000 1,000,000
	24,000,000 24,000,000

5. COMMITMENTS AND CONTINGENCIES

There have been no changes to commitments or contingencies since the last annual reporting date.

6. EVENTS SUBSEQUENT TO REPORTING DATE

Subsequent to 31 December 2011 the Company issued 3,340,911 ordinary shares to the directors at 22 cents per share raising $735,000 following shareholder approval at the general meeting held on 12 January 2012.

7. DIVIDENDS

No dividends were paid or declared payable during the half-year or subsequent to the end of the reporting period.

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EMMERSON RESOURCES LIMITED

DIRECTORS' DECLARATION

In the opinion of the directors:

• (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 financial position as at 31 December 2011 and the performance for the half-year ended on that date of the Company; and

• (ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and 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.

This declaration is signed in accordance with a resolution of the directors of Emmerson Resources Limited made pursuant to Section 303(5) of the Corporations Act 2001 .

On behalf of the Board

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Rob Bills Managing Director & Chief Executive Officer 14 March 2012

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Auditor’s Independence Declaration to the Directors of Emmerson Resources Limited

In relation to our review of the financial report of Emmerson Resources Limited for the half-year ended 31 December 2011, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

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Ernst & Young

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R J Curtin Partner 14 March 2012

Liability limited by a scheme approved under Professional Standards Legislation

RC:LP:EMMERSON:031

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To the members of Emmerson Resources Limited

Report on the Half-Year Financial Report

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

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are 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 Emmerson Resources Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report.

Liability limited by a scheme approved under Professional Standards Legislation

RC:LP:EMMERSON:030

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 Emmerson Resources 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 .

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Ernst & Young

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R J Curtin Partner Perth 14 March 2012

RC:LP:EMMERSON:030