ENERGY TECHNOLOGIES LIMITED — Interim / Quarterly Report 2012

Feb 28, 2012

ENERGY TECHNOLOGIES LIMITED (ASX: EGY)

(formerly Dulhunty Power Limited)

ABN 38 002 679 469

Half –Year Financial Report

for the half-year ended 31 December 2011

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Corporate Information

ABN 38 002 679 469

Directors

Martin H. Thomas (Chairman) Anthony J. Wingrove (Managing Director) Alfred J. Chown (Non-Executive Director) Richard K. Llewellyn (Non-Executive Director) Philip W. Dulhunty (Non-Executive Director) Michael D. Butcherine (Non-Executive Director))

Company Secretary

Gregory R. Knoke

Registered Office

Unit 10, 67 Wanganella Street

BALGOWLAH NSW 2093

Bankers

Australia and New Zealand Banking Group Limited 20 Martin Place SYDNEY NSW 2000

National Australia Bank Limited

NAB House, 255 George Street SYDNEY NSW 2000

Share Register

Computershare Investor Services Pty Ltd

Level 3, 60 Carrington Street Sydney NSW 2000 Telephone:- (02) 8234 5000 Facsimile:- (02) 8235 8150

Auditors

Gould Ralph Assurance Chartered Accountants Level 42, Suncorp Place 259 George Street SYDNEY NSW 2000 Telephone: - (02) 9032 3000

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Energy Technologies Limited – Half-Year Report

Contents

Chairman’s Report ......................................................................4 Directors’ Report .........................................................................5 Lead Auditor’s Independence Declaration..................................7 Condensed Income Statement ...................................................8 Condensed Statement of Comprehensive Income.....................9 Condensed Statement of Financial Position.............................10 Condensed Statement of Changes in Equity............................11 Condensed Statement of Cash Flows ......................................12 Notes to the Half –Year Financial Statements..........................13 Directors’ Declaration................................................................18 Independent Review Report .....................................................19

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Energy Technologies Limited – Half-Year Report

Chairman’s Report

The dominant activity of the past calendar year, which has now reached conclusion, has been the sale of substantially all the assets of Dulhunty Power International Limited (DPIL) to McLean Power LLC and associated entities (the McLean Group) of the USA. This specialised transmission line fittings company, now called D Power International Limited, is owned 50.82% by Dulhunty Power Limited whose name, consequent on the sale agreement, has been changed to Energy Technologies Limited (ASX:EGY).

Particulars of the sale were presented to Shareholders at the Extraordinary General Meeting held on Tuesday 27 September 2011. In summary, the sale was based on an enterprise value offer with an overall consideration of A$17.0 million subject to post-completion net asset adjustments, discharge of short term unsecured debt, restraints and settlement of legal, consultancy and professional costs . The shareholders equity of DPIL as a result of the sale increased to approximately $14.02 million, before distributions, and the net consolidated result accruing to EGY as a result of the transaction is approximately $ 6.2 million.

EGY continues to hold a 39.85% investment in Dulhunty Poles Limited (Poleco); its wholly owned subsidiary Cogenic and a small number of legacy shares in First Folio (ASX:FFF). A short commentary on these holdings follows.

Last year we reported on the successful establishment of Dulhunty Poles Pty Limited (Poleco) in which DUL holds 39.85% share. Poleco’s factory, opened by Victorian Premier the Hon Ted Baillieu in July last year, is located at Moolap near Geelong in south western Victoria. The factory is producing first of a kind Titan composite glass fibre reinforced engineered cement power distribution poles (ECPs) for the burgeoning power distribution industry. Compared with traditional wood and reinforced concrete poles, Titan ECPs offer lighter weight, easier transport and handling, high durability, superior fire resistance, a lower carbon footprint, longer life and pollution free final disposal. Industry interest to date suggests a bright future for the company. Substantial firm sales contracts have already been secured with Australian and overseas utilities, sufficient to satisfy current factory capacity moving to a two shift basis before the end of 2012.

EGY currently owns 39.85% of Poleco with options to uplift this in second half of calendar year 2012. Further Australian manufacturing plants are planned and it is the intention of the EGY board to increase its stake in Poleco in the year ahead. EGY has participated in recent Convertible Note issues by Poleco with a total allocation of $710,500.

Next, as announced to the Australian Securities Exchange, EGY is in negotiation with an established specialist company supplying the Australian electricity supply industry. This profitable company has a long and proud history; EGY is indeed fortunate to have the opportunity to become its 100% owner with the clear aim of developing its business significantly in the years ahead. At the time of reporting a Term Sheet has been signed and a deposit of $50,000 paid to allow exclusive due diligence to proceed. Completion is anticipated by mid 2012 subject to due diligence.

EGY’s smallest 100% owned subsidiary, Cogenic Pty Ltd, is exploring the potential for new products including battery storage and gas fired combined heat and power (CHP) tri-generation systems which can produce electricity, process heat and air conditioning at high efficiency. It is intended that this business too is progressively strengthened.

Finally I note that clear signs are emerging of the investment tide turning in the power distribution sector. The future for your company is more encouraging than for some time.

I continue to have every confidence in the Board of EGY and the management and staff of the company and its subsidiaries. I look forward to the future with confidence.

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Martin Thomas AM FTSE. Hon FIE Aust Chairman Sydney 29 February 2012

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Energy Technologies Limited – Half-Year Report

Directors’ Report

Your Directors submit their report for the half year ended 31 December 2011

DIRECTORS

The names and details of the Company's Directors in office during the half-year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Martin H. Thomas AM (Chairman) Appointed 13 October 2005. Anthony J. Wingrove (Managing Director) Appointed on 16 April 2007. Alfred J. Chown (Non-executive director) Appointed 4 July 1997. Philip W. Dulhunty OAM (Non-Executive Director) Appointed 31 March 2003. Richard K. Llewellyn (Non-Executive Director) Appointed 20 September 2005. Michael D. Butcherine (Non-Executive Director) Appointed 14 December 2009

PRINCIPAL ACTIVITIES AND SIGNIFICANT CHANGES IN NATURE OF ACTIVITIES

The principal activities during the half-year of entities within the economic entity were:

• the manufacture and sale of electricity transmission and distribution products and services, anchor systems and foundry products

• development of energy generation technology

The following significant changes in the nature of the principal activities during the period were the discontinuation of the manufacture of electricity transmission and distribution products and services, anchor systems and foundry products.

REVIEW AND RESULTS OF OPERATIONS

The reported results of Energy Technologies Limited (EGY – formerly DUL) for the Half Year to 31 December 2011 are dominated by the sale of substantially all of the assets of D Power International Limited (DPIL – formerly Dulhunty Power International Limited), the operating group controlled by EGY. This transaction, as announced on 12 October 2011, was based on a completion date of 30 September 2011. The transaction was structured predominantly as a share sale by DPIL of operating subsidiaries, with equity retained in subsidiaries in China and North America.

EGY

The parent entity is reporting a net profit for the period to 31 December 2011 of $3,086,148. This is after interim distributions from DPIL of $5,590,667 and a write down in the carrying value of DPIL post distribution of $1,940,158. EGY had an operating loss of $354,362 excluding transaction costs.

The EGY consolidated group profit after tax and minorities for the period is $5,554,924. Material items include:

	EGY Profit on Sale of Assets of DPIL before Minorities	$11,680,410 ($4,585,705) ($865,158) ($227,978) ($446,645) $5,554,924
	Minorities Share of Profit on Sale
	EGY Share of Transaction Costs
	EGY Share of DPIL Loss for 3 Months to 30 September 2011
	OperatingLoss For the Period(includingDPIL 3 Months to 31 December 2011)
	Total

The profit on sale of $11,680,410 is impacted by adjustments to foreign exchange reserves of subsidiaries disposed of and goodwill written back in DPIL. Transaction costs include warranty insurance.

EGY has received net management fee income from associate entity Dulhunty Poles Pty Limited of $93,022 during the half year after eliminations. Dulhunty Poles Pty Ltd has succeeded in winning a large overseas contract as recently announced and the production facility at Moolap has begun to move into commercial production with deliveries to local and export customers. Quantities are still too low to permit efficient factory operation but the range of proven products has increased and rewarded the development reported in the previous period.

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Energy Technologies Limited – Half-Year Report

Directors’ Report (cont)

Subsequent to completion of the DPIL sale transaction, EGY has accepted a Convertible Note placement of $710,500 under offer from Dulhunty Poles Pty Limited. EGY has also paid a deposit of $50,000 under a Term Sheet to allow due diligence to commence on a sector acquisition, as announced.

DPIL

3 Months to 30 September 2011 discontinuing operations

The process of due diligence and other activities associated with the sale of the assets impacted DPIL operations and contributed to a slowing of activity and management diversion. This has contributed to a poor result for DPIL September quarter.

Revenue from customers for the September quarter at $5.3m was consistent with the corresponding period for the previous year. However, a combination of lower margins and higher expenses resulted in an EBIT loss of $(321,063) compared with a profit for the previous September quarter. DPIL loss after tax and minorities for the 3 months was $(450,164).

Profit on sale

DPIL group profit on sale of assets subsequent to completion is $7,861,095 net of minority and transaction costs.

DPIL 3 Months to 31 December 2011

DPIL has continued to trade since completion and has contributed a small loss of $30,496 after tax and minorities.

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 7 and forms part of the Directors’ Report for the half-year ended 31 December 2011.

Signed in accordance with a resolution of the Directors.

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Anthony J. Wingrove Managing Director Sydney, 29 February 2012

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29 February 2012

The Board of Directors Energy Technologies Limited Unit10, 67 Wanganella Street BALGOWLAH NSW 2093

Dear Members of the Board

Lead Auditor’s Independence Declaration Under Section 307C of the Corporations Act 2001

I declare that, to the best of my knowledge and belief, during the half year ended 31 December 2011 there have been:

• No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to this review; and

• No contraventions of any applicable code of professional conduct in relation to the review.

Yours faithfully GOULD RALPH ASSURANCE Chartered Accountants

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MALCOLM BEARD M.Com., F.C.A. Partner

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Energy Technologies Limited – Half-Year Report

Condensed Income Statement Half Year Ended 31 December 2011

Continuing operations Sales revenue 3(i) Other revenues 3(i) Total revenue from continuing operations Cost of sales Marketing expenses Occupancy expenses Administration expenses Other expenses Share of net loss of associate (LOSS)/PROFIT BEFORE FINANCE COSTS, INCOME TAX Finance costs 3(ii) (LOSS)/PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (LOSS)/PROFIT FROM CONTINUING OPERATIONS DISCONTINUED OPERATIONS Profit from discontinued operations after tax 4 PROFIT FOR THE PERIOD (LOSS)/PROFIT ATTRIBUTABLE TO: Members of the parent entity Minority equity interest Earnings per Share From continuing and discontinued operations: • Basic earnings per ordinary share (cents) • Diluted earnings per ordinary share (cents) From continuing operations: • Basic earnings per ordinary share (cents) • Diluted earnings per ordinary share (cents)	ECONOMIC ENTITY 31 December 31 December 2011 2010 $ $ 333,745 464,534 205,423 144,451
	539,168 608,985 (316,697) (355,973) - (759) (11,998) (26,546) (649,982) (798,228) (11,973) (7,298) - (15,653)
	(451,482) (595,472) (25,660) (40,342)
	(477,142) (635,814) - -
	(477,142) (635,814) 9,692,260 661,204
	9,215,118 25,390
	5,554,924 (245,928) 3,660,194 271,318
	9,215,118 25,390
	3.46 (0.16) 3.46 (0.16) (0.28) (0.41) (0.28) (0.41)

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Energy Technologies Limited – Half-Year Report

Condensed Statement of Comprehensive Income Half Year Ended 31 December 2011

PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME FOR THE PERIOD AFTER TAX : Exchange differences on translating foreign entities TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD TOTAL COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO: Members of the parent entity Minority equity interest	ECONOMIC ENTITY 31 December 31 December 2011 2010 9,215,118 25,390 (2,387,532) (863,685)
	6,827,586 (838,295)
	3,773,444 (531,426) 3,054,152 (306,869)
	6,827,586 (838,295)

The condensed statement of comprehensive income should be read in conjunction with the accompanying notes.

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Energy Technologies Limited – Half-Year Report

Condensed Statement of Financial Position as at 31 December 2011

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets Current Tax Asset Other assets TOTAL CURRENT ASSETS NON CURRENT ASSETS Property, plant & equipment Intangible assets Deferred tax asset Investments Accounted for Using the Equity Method TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Financial liabilities Current tax liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Parent equity interest Issued capital Reserves Accumulated losses Energy Technologies Limited equity interest Minority equity interest TOTAL EQUITY	ECONOMIC ENTITY 31 December 30 June 2011 2011 $ $ 4,724,159 1,575,705 3,800,298 5,304,151 - 4,331,297 13,866 24,601 85,330 - 219,222 337,677
	8,842,875 11,573,431
	37,507 1,107,620 547,534 2,549,187 - 118,102 - -
	585,041 3,774,909
	9,427,916 15,348,340
	1,287,310 4,730,217 - 2,557,368 - 106,351 34,732 497,827
	1,322,042 7,891,763
	28,882 72,976
	28,882 72,976
	1,350,924 7,964,739
	8,076,992 7,383,601
	10,163,080 10,074,580 (2,023,023) (241,543) (1,117,024) (6,671,948)
	7,023,033 3,161,089 1,053,959 4,222,512
	8,076,992 7,383,601

The condensed statement of financial position should be read in conjunction with the accompanying notes.

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Energy Technologies Limited – Half-Year Report

Condensed Statement of Changes in Equity

for the half-year ended 31 December 2011

Balance at 1.7.2010 Profit attributable to parent entity Contributions of Equity Profit attributable to Minority shareholders Dividend paid Total other comprehensive income for the period Balance at 31.12.2010 Balance at 1.7.2011 Profit attributable to parent entity Contributions of Equity Profit attributable to Minority shareholders Derecognition of non-controlling interest upon disposal of subsidiary Dividend paid Total other comprehensive income for the period Balance at 31.12.2011	Issued Accumulated Minority Capital Reserves Losses Interests Total $ $ $ $ $ 9,841,648 85,924 (6,239,074) 4,925,188 8,613,686 - - (245,929) - (245,929) 29,057 - - - 29,057 - - - 271,318 271,318 - - - (399,881) (399,881) - (285,498) - (578,187) (863,685)
	9,870,705 (199,574) (6,485,003) 4,218,438 7,404,566
	10,074,580 (241,543) (6,671,948) 4,222,512 7,383,601 - - 5,554,924 - 5,554,924 88,500 - - - 88,500 - - - 3,660,194 3,660,194 - - - (813,362) (813,362) - - - (5,409,333) (5,409,333) - (1,781,480) - (606,052) (2,387,532)
	10,163,080 (2,023,023) (1,117,024) 1,053,959 **8,076,992 **

The condensed statement of changes in equity should be read in conjunction with the accompanying notes.

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Energy Technologies Limited - Half-Year Report

Condensed Statement of Cash Flows

for the half-year ended 31 December 2011

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Borrowing costs Income taxes paid NET CASH FLOWS (USED IN) OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from disposal of subsidiaries 6 NET CASH FLOWS PROVIDED BY/(USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Issue of shares Repayment of borrowings Dividends paid Loans and advances (made) received NET CASH FLOWS (USED IN) FINANCING ACTIVITIES NET INCREASE/(DECREASE) IN CASH HELD Cash at beginning of the financial period Effects of exchange rate fluctuations on the balances of cash held in foreign currencies CLOSING CASH BALANCE AT END OF FINANCIAL PERIOD	ECONOMIC ENTITY 31 December 2011 31 December 2010 $ $ 4,762,556 11,005,318 (6,712,438) (11,148,263) 23,100 5,227 (67,658) (111,738) (46,487) (381,799)
	(2,040,927) (631,255)
	(93,472) (187,071) - 1,915 13,005,420 -
	12,911,948 (185,156)
	- 29,057 (575,435) - (5,582,571) (161,903) (745,532) 43,411
	(6,903,538) (89,435)
	3,967,483 (905,846) 700,384 1,155,083 56,292 (217,763)
	4,724,159 31,474

The condensed statement of cash flows should be read in conjunction with the accompanying notes.

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Energy Technologies Limited - Half-Year Report

Notes to the Half –Year Financial Statements

31 December 2011

1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

These general purpose financial statements for the interim half-year reporting period ended 31 December 2011 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134 “Interim Financial Reporting”. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

The half-year financial report is intended to provide users with an update on the latest annual financial statements of Energy Technologies Limited and its controlled entities (the Group). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the Annual Financial Report of Energy Technologies Limited as at 30 June 2011 together with any public announcements made during the half-year.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

2. SEGMENT INFORMATION

Primary reporting - Business segments

	Energy/Energy	Infrastructure	Investment	Investment	Total
	31/12/2011	31/12/2010	31/12/2011	31/12/2010	31/12/2011	31/12/2010
	$	$	$	$	$	$
Revenue	17,776,521	11,446,992	-	-	17,776,521	11,446,992
Segment result
before income tax	9,321,525	410,924	-	(15,653)	9,321,525	395,271
Income tax expense	106,407	369,881	-	-	106,407	369,881
Segment Assets	9,427,916	16,035,218	-	-	9,427,416	16,035,218
Segment Liabilities	1,350,924	8,630,652	-	-	1,350,924	8,630,652

The group’s primary business segment is Energy/Energy Infrastructure products.

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Energy Technologies Limited - Half-Year Report

Notes to the Half –Year Financial Statements

31 December 2011

3. REVENUE, INCOME AND EXPENSES

(i) Revenue from continuing operations

Sale of goods Foreign exchange gains Finance revenue Management Fees Other income (ii) Finance costs Bank loans and overdrafts	31 December 2011 31 December 2010 $ $ 333,745 464,534 90,744 14,076 21,467 125 93,163 94,875 49 35,375
	539,168 608,985
	25,660 40,342
	25,660 40,342

4. DISCONTINUED OPERATIONS

On 12 October 2011, the consolidated group announced its decision to dispose of substantially all of its business assets held by D Power International Limited (formerly Dulhunty Power International Limited). The assets were sold based on a completion date of 30 September 2011.

This announcement was made subsequent to approval by the Group’s management and shareholders.

Financial information relating to the discontinued operation to the date of disposal is set out below. The financial performance of the discontinued operation to the date of sale, which is included in profit/(loss) from discontinued operations per the statement of comprehensive income, is as follows:

Revenue Expenses Loss before income tax Income tax expense (Loss) Profit attributable to the discontinued operation Profit on sale of assets Income tax expense Profit on sale of assets after income tax Total profit attributable to the discontinued operation The net cash flows of the discontinued operation, which have been incorporated into the statement of cash flow, are as follows: Net cash inflow/(outflow) from operating activities Net cash inflow/(outflow) from investing activities Net cash inflow/(outflow) from financing activities Net cash increase (decrease) in cash generated by the discontinued operation	31 December 2011 31 December 2010 $ $ 5,556,943 10,838,007 (6,128,371) (9,806,922)
	(571,428) 1,031,085 (106,407) (369,881)
	(677,835) 661,204
	10,370,095 - - -
	10,370,095 -
	9,692,260 661,204
	(529,140) (299,361) 12,924,398 (183,776) (7,818) (440,167)
	12,387,440 (923,304)

Gain on disposal of the division has been included in gain from discontinued operations per the statement of comprehensive income.

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Energy Technologies Limited - Half-Year Report

Notes to the Half –Year Financial Statements

31 December 2011

5. PROPERTY, PLANT AND EQUIPMENT

Acquisitions and disposals

During the half-year ended 31 December 2011, the group acquired fixed assets with a cost of $93,472 (2010: $187,071). Property, plant and equipment disposals made during the period ended 31 December 2011 amounted to net proceeds from disposal of $Nil (2010: $1,915).

6. CASH FLOW INFORMATION - DISPOSAL OF ENTITIES

During the period, the controlled entity DPIL sold substantially all of its business assets. Aggregate details of this transaction are:

Disposal price Cash consideration Assets and liabilities held at disposal date: Cash Receivables Inventories Property, plant and equipment Payables Non-controlling equity interests Net (loss)/gain on disposal Net cash received	31 December 2011 $
	13,005,420
	927,007 8,591,398 4,288,226 1,335,988 (11,693,932) (813,362)
	2,635,325 10,370,095
	13,005,420

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Energy Technologies Limited - Half-Year Report

Notes to the Half –Year Financial Statements

31 December 2011

7. INTEREST-BEARING LOANS AND BORROWINGS

During the half year period ended 31 December 2011 the group repaid $575,435 (2010: $NIL) of interest bearing debt on both long term and short term debt.

8. CONTRIBUTED EQUITY

Ordinary shares (i) Ordinary shares Fully paid ordinary shares carry one vote per share and carry the right to dividends. Movement in ordinary shares on issue At 1 January 2011 Shares issued during the period - 22 March 2011 (at $0.039 per share) - 29 June 2011 (at $0.034 per share) At 30 June 2011 At 1 July 2011 Shares issued during the period - 24 October 2011 (at $0.035 per share) - 9 December 2011 (at $0.032 per share) At 31 December 2011	31 December 2011 30 June 2011 $ $ 10,163,080 10,074,580
	No. of shares $ 154,663,466 9,870,705 3,567,308 139,125 1,904,412 64,750
	160,135,186 10,074,580
	160,135,186 10,074,580 928,572 32,500 1,750,000 56,000
	162,813,758 10,163,080

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Energy Technologies Limited - Half-Year Report

Notes to the Half –Year Financial Statements

31 December 2011

9. CONTINGENT LIABILITIES

Contingent liabilities were disclosed in the 30 June 2011 annual report. No new contingent liabilities have arisen, and none of the contingent liabilities has fallen due since the 30 June 2011 annual report was signed up until the date this half-year report is signed. Changes to reported contingent liabilities are as follows:

Bank Guarantees

The controlled entity indemnities previously provided by DPIL to bankers in respect of bank guarantees given by the bank to third parties have now been removed.

Insurance Claim

An insurance claim was reported in the 30 June annual report. Since 31 December 2011 settlement has been negotiated between the claimant in Russia and the relevant subsidiary of DPIL. This agreement will result in a full and final settlement of all the customer’s claims. The settlement of the insurance claim resulting from the Russian claim is not yet complete, and the net impact to EGY cannot yet be determined.

The previously announced court hearing against Dulhunty Yangzhou Line Fittings Co Ltd, set for 21 February 2012 did not proceed.

10. RELATED PARTIES

There have been no significant changes to the related party transactions disclosed in the last Annual Report. All transactions with related parties are conducted on normal commercial terms and conditions.

11. EVENTS SUBSEQUENT TO BALANCE DATE

There has not arisen since the end of the financial period any matter of circumstance which, in the opinion of the directors of the Company, significantly affects the operation of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years, other than as announced or discussed in Note 9.

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Energy Technologies Limited - Half-Year Report

Directors’ Declaration

The directors’ of the company declare that:

1. The financial statements and notes, as set out on pages 8 to 17:

2. a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations; and

3. b) give a true and fair view of the economic entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date.

4. In the directors’ opinion 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 made in accordance with a resolution of the Board of Directors.

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---

Director: Anthony J. Wingrove

Dated 29 February 2012

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Independent Review Report To The Members of Energy Technologies Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Energy Technologies Limited, which comprises the condensed statement of financial position as at 31 December 2011, the condensed income statement, the condensed statement of comprehensive income, the condensed statement of changes in equity and the condensed statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity comprising Energy Technologies Limited and the entities it controlled at the half-year’s 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 control as the directors determine is necessary to enable the presentation 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 an Interim Financial Report 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 company’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 auditor of Energy Technologies Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review for 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. As 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. Our review did not involve an analysis of the prudence of business decisions made by directors or management.

Matters Relating to Electronic Publication of the Reviewed Financial Report

This review report relates to the financial report of Medical Australia Limited and its controlled entity’s for the half year period ended 31 December 2011 included on the website of Medical Australia Limited. The directors of the company are responsible for the integrity of the website and we have not been engaged to report on this integrity. This review report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to or from the financial report. If users of the financial report are concerned with the inherent risk arising from publication on a website, they are advised to refer to the hard copy of the reviewed financial report to confirm the information contained in this website version of the financial report.

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Independence

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

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 Energy Technologies Limited is not in accordance with the Corporations Act 2001 including:

• i) 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

• ii) complying with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001.

GOULD RALPH ASSURANCE Chartered Accountants

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MALCOLM BEARD M.Com., F.C.A. Partner Sydney, 29 February 2012

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