ENOVA MINING LIMITED - Annual Report 2012

ABN 64 087 595 980

ANNUAL FINANCIAL REPORT 2012

DIRECTORS

Robert L Richardson (Chairman) Geoffrey S Eupene (Executive Director) Peter W Walker (Non Executive Director) Malcolm K Smartt (Finance Director)

COMPANY SECRETARY

Malcolm K Smartt

REGISTERED OFFICE

Level 3, 80 Arthur Street, North Sydney, NSW 2060 Telephone: (02) 9957 3199 Facsimile: (02) 9954 4011

AUDITORS BDJ Partners Audit Pty Ltd BANK Westpac Banking Corporation

DARWIN EXPLORATION AND ADMINISTRATION OFFICE

Suite 8 Raffles Plaza 1Buffalo Court DARWIN NT 0800

Phone – 61 8 8981 5911 Fax – 61 8 8941 1364

SHARE REGISTRY

Registries Limited Level 7, 207 Kent Street Sydney NSW 2000

Phone – 1300 737 760

Your Directors present their report on the consolidated entity consisting of Crossland Uranium mines and the entities it controlled at the end of, and during the year ended 31 December 2012

Directors Report

Directors

The following persons were Directors of Crossland Uranium Mines Limited during the whole of the financial year and up to the date of this report:

Robert L Richardson

Patrick J D Elliott (Resigned 10 May 2012) Geoffrey S Eupene Peter W Walker Robert A Cleary (Resigned 24 February 2013) Malcolm K Smartt (Appointed 21 Jun 2012)

Directors' qualifications and experience

Bob Richardson Non-Executive Chairman Bob Richardson, B.Sc, B.E(Hons), MAusIMM, MASEG, has 43 years experience in mineral exploration management, geophysics and exploration technology. During 15 years with the Peko- Wallsend Group as Chief Geophysicist and later Exploration Manager, he supervised all geophysical work carried out by Peko- Wallsend in the Alligator Rivers Uranium Province during the Ranger discovery and resource development period. During this period Bob and his team developed a leading- edge understanding of the application of geophysical methods to uranium exploration. He was co- founder and Managing Director of Austirex Aerial Surveys that became an international airborne geophysical contractor. He co- founded Lachlan Resources NL in 1983, and PlatSearch NL in 1986.

Geoff Eupene, Executive Director

Geoff Eupene, B.Sc(Hons), FAusIMM, CPGeo, is a Darwin- based geologist. Geoff spent the 1969 field season, his first after graduation from the University of Queensland, looking for uranium in the East Kimberley. In 1970 he joined Geopeko as they started their field work at Ranger. As Mine Geologist, he logged every hole drilled into the Ranger No. 1 ore body, interpreted the geology, and developed a resource estimate that agreed closely with the total material mined over the following decades.

In 1976, he headed the team that discovered the Ranger 68 deposit beneath the Magela floodplains.

Geoff worked for Geopeko for over ten years before founding a consulting practice in Darwin in 1980. Eupene Exploration Enterprises Pty Ltd has provided advice and services to many uranium explorers, and assisted in the development of several other mining projects in the NT, including Mount Bonnie silver/ gold deposit, Tanami gold, Goodall gold, Rustlers Roost gold, and Woodcutters base metal projects. Geoff has also acquired a depth of experience in SE Asia.

Bob Cleary, Non – Executive Director Bob Cleary resigned on 24 February 2013

Peter Walker Non-Executive Director

Peter Walker, B.Juris, Ll.B, FAICD, is a Darwin based lawyer who has practised in the resource industry for over 35 years. He has long experience with land access issues including the special situations that exist in the Northern Territory. Peter acted for Peko EZ (a joint venture between Peko-Wallsend Operations Limited and

Electrolytic Zinc Company of Australasia Limited) on permitting matters for the Ranger project, and for Pancontinental Mining Limited, which discovered the Jabiluka deposit. He also assisted Uranerz Energy Corporation and Power Reactor and Nuclear Fuel Development Corporation (PNC), and other explorers and miners, with NT access and development matters. Peter has been a director of several companies including Australian Diamond Exploration NL, which discovered and developed the Merlin diamond mine.

Mal Smartt – Finance Director (appointed 21 June 2012)/ Company Secretary

Mal Smartt, BA (Accounting), Grad Dip Corporate Management, FCPA, FCIS, FCIM is a Corporate Consultant to listed and unlisted public companies. He is a qualified accountant and company secretary having had considerable experience in Directorial, Financial and Company Secretarial roles with a number of listed companies in the resource sector in Australia, South East Asia and Africa.

Patrick J D Elliott, Non-Executive Director Pat Elliott resigned on 10 May 2012.

Principal activities

The principal activities of the consolidated entity are the exploration for uranium and rare earth elements (REE) in the Northern Territory and economic hardrock gold deposits. There has been no change in the principal activities during the year.

Results

The net result of operations after applicable income tax benefit of the consolidated entity for the year ended 31 December 2012 was a loss of $1,819,312 (2011 – loss of $2,390,687).

business strategies and prospects are set out in the review of operations.

Significant changes in the state of affairs

With effect 1 January 2012, Pancontinental recommenced funding and their equity remains at 45% with Crossland holding 55%.

Matters subsequent to the end of the financial year

At the date of this report there were no matters or circumstances which have arisen since 31 December 2012 that have significantly affected or may significantly affect:

i. the operations of the consolidated entity,
ii. the results of those operations, or
iii. the state of affairs of the consolidated entity in the financial year subsequent to 31 December 2012.

Likely developments

The Company is hoping to identify precious and rare earth metals, uranium and base metal exploration and evaluation opportunities which are perceived to offer outstanding value. At this stage, it is not possible to postulate likely developments from any of these exploration activities. As the consolidated entity’s areas of interest are at an early stage of exploration, it is not possible to postulate likely developments.

Directors' benefits

During the year no Director of the Company has received or become entitled to receive a benefit (other than a benefit included in the notes to the accounts) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.

Dividends

No dividends were either paid or declared for the year (2011 – nil).

The Directors do not recommend the payment of a dividend in respect of the financial year ended 31 December 2012.

Review of operations

Information on the operation and financial position of the consolidated entity and its

Share options

Particulars of options granted over unissued shares:

shares:
Total number of options granted by the Company over unissued ordinary	2012 2011
	41,324,642 9,250,000

shares
Options issued during	Nil	Nil
the period (see note
below)
Shares issued in the	Nil	Nil
period as the result of
the exercise of options
Options expired	Nil	Nil
during the period

officer, including costs and expenses in successfully defending legal proceedings.

During or since the financial period, the Company has not paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend legal proceedings.

Non-audit services

Full details of options on issue are shown in note 22.

Meetings of directors

Attendance at Directors’ meetings during the year:

ear:
	Eligible to	Attended
	attend
Patrick J D Elliott	3	3
G S Eupene	10	10
R Richardson	10	10
P Walker	10	10
R Cleary	10	10
M Smartt	5	5

The Audit Committee, comprising Messrs Richardson, Walker and Smartt, which met twice during the year, was set up to review the Company’s financial systems, accounting policies and annual financial statements.

Environment

Crossland Uranium Mines Limited, through its subsidiaries, holds exploration tenements in Australia that are subject to various governmental statutes and guidelines for environmental impacts in relation to exploration activities. These provide for the satisfactory rehabilitation of the areas of exploration. There have been no known material breaches of the licence conditions.

Directors' and auditors' indemnification

The Company has not, either during or since the end of the financial period, in respect of any person who is or has been an officer or auditor of the Company or a related body corporate, indemnified or made any relevant agreement for indemnifying against a liability incurred as an

The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor's expertise and experience with the company and/or the Group are important.

Details of the amounts paid or payable to the auditor (BDJ Partners Audit Pty Limited) for nonaudit services provided during the year are set out in Note 8.

The board of directors, in accordance with the advice received from the audit committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed by the audit committee to ensure they do not adversely affect the integrity and objectivity of the auditor,
the nature of the services provided does not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

During the year no fees were paid or payable for non-audit services provided by the auditor of the parent entity, its related practices and nonrelated audit firms.

Auditors’ independence declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 63.

Auditor

BDJ Partners Audit Pty Ltd holds office in accordance with section 327 of the Corporations Act 2001

Remuneration Report (Audited)

The remuneration report is set out under the following main headings:

A. Principles used to determine the nature and amount of remuneration
B. Service agreements
C. Details of remuneration
transparency; and
capital management.

The Group has structured an executive remuneration framework that is market competitive and complimentary to the reward strategy of the organisation.

D. Share based compensation
E. Additional information

Alignment to shareholders’ interests:

The information provided under headings A- D includes remuneration disclosures that are required under Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been transferred from the financial report and have been audited. The disclosures in Section E are additional disclosures required by the Corporations Act 2001 and the Corporations Regulations 2001 which have not been audited.

A. Principles used to determine the nature and amount of remuneration The objective of the Group’s executive reward framework is to ensure reward for performance, being the development of the Crossland Uranium Mines exploration tenements. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders, and conforms with market best practice for delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:

competitiveness and reasonableness;
acceptability to shareholders;
has economic profit as a core component of plan design;
focuses on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering constant return on assets as well as focusing the executive on key non-financial drivers of value; and
attracts and retains high calibre executives.

Alignment to programme participants’ interests:

rewards capability and experience;
reflects competitive reward for contribution to growth in shareholder wealth;
provides a clear structure for earning rewards; and
provides recognition for contribution.

The framework provides a mix of fixed and variable pay, and a blend of short and long term incentives. As executives gain seniority with the group, the balance of this mix shifts to a higher proportion of ''at risk'' rewards.

performance linkage / alignment of executive compensation;

Non-executive directors

Fees and payments to non-executive directors reflect the demands, which are made on, and the responsibilities of, the directors. The Board reviews non-executive directors’ fees and payments annually. The Board may from time to time seek the advice of independent remuneration consultants to ensure non-executive directors’ fees and payments are appropriate and in line with the market. The Chairman’s fees are determined independently to the fees of non-executive directors based on comparative roles in the external market. The Chairman is not present at any discussions relating to determination of his own remuneration.

Directors’ fees

The current base remuneration was last reviewed with effect from 1 July 2007.

Structured as a total employment cost package, which may be delivered as a combination of cash and prescribed non-financial benefits at the executives’ discretion.

Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. Base pay for senior executives is reviewed annually to ensure the executive’s pay is competitive with the market. An executive’s pay is also reviewed on promotion.

There are no guaranteed base pay increases included in any senior executives’ contracts.

B. Service agreements

1. Mr Geoff Eupene - Executive Director

Non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically recommended for approval by shareholders. The maximum currently stands at $200,000 per year in aggregate.

Executive pay

The executive pay and reward framework has four components:

A Consultancy Agreement dated 30 October 2008 has been entered into between the company and Eupene Exploration Enterprises Pty Ltd (a company controlled by Mr Eupene) to provide exploration services to the company for a period of two years commencing 1 June 2008 and extended for a further two years to 1 June 2012 at a base rate of $10,500 per month. This agreement is currently under review.

base pay and benefits;
short-term performance incentives;
long-term incentives through participation in Crossland Uranium Mines Ltd incentive shares, and
other remuneration such as superannuation.

The combination of these comprises the executive’s total remuneration.

2. Non-executive directors

Directors are entitled to remuneration out of the funds of the company but the

remuneration of the non-executive Directors may not exceed in any year the amount fixed by the company in general meeting for that purpose. Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in consequence of their attendance at Board meetings and otherwise in the execution of their duties as Directors

Base pay

C. Details of remuneration

Amounts of remuneration

Details of the remuneration of the directors and the key management personnel (as defined in AASB 124 Related Party

Disclosures) of Crossland Uranium Mines Ltd and the Crossland Uranium Mines Ltd Group are set out in the following tables.

The key management personnel of Crossland Uranium Mines Limited and the Group

includes the directors

Remuneration paid to key management personnel of Crossland Uranium Mines and of the Group

2012	Short-term employee benefits	Short-term employee benefits	Short-term employee benefits	Post- employment benefits	Share-base d payment
Name	Salary $	Directors’ Fees $	Consulting Fees $	Superannuation $	Options $	Total $
Non-executive directors
P J D Elliott	-	15,000	-	-	-	15,000
R Cleary	-	38,750	-	-	-	38,750
R Richardson	-	46,250	65,866	4,163	-	116,279
P Walker		35,000	-	3,150		38,150
Sub-total non-- executive directors	-	135,000	65,866	7,313	-	208,179
Executive directors G S Eupene MK Smartt	- 75,000	- -	262,000 -	- 6,750	-	262,000 81,750
Totals	75,000	135,000	327,866	14,063	-	551,929
2011 Non-executive directors
P J D Elliott	-	36,000	-	-	-	36,000
R Cleary	-	50,000	-	-	-	50,000
R Richardson	-	35,000	76,228	5,788	-	117,016
P Walker	-	35,000	-	3,150	-	38,150
Sub-total non-- executive directors	-	156,000	76,228	8,938	-	241,166
Executive directors G S Eupene	-	-	284,250	-	-	284,250
Totals	-	156,000	360,478	8,938	-	525,416

D. Share-based compensation Options

Options are granted on the recommendation of the directors.

Options are granted for no consideration. Options are granted for a five year period, and are exercisable immediately after the vesting date.

Options granted carry no dividend or voting rights.

When exercisable, each option is convertible into one ordinary share.

The exercise price of options is based on the weighted average price at which the company’s shares are traded on the Australian Stock Exchange during the five trading days immediately before the options are granted.

No options over ordinary shares in the company were provided as remuneration to each director of Crossland Uranium Mines

Ltd and each of the key management personnel of the Group during the financial year.

Shares provided on exercise of remuneration options.

No ordinary shares in the company were provided as a result of the exercise of remuneration options to each director of Crossland Uranium Mines Ltd and other key management personnel of the Group.

Shares under option

Unissued ordinary shares of Crossland Uranium Mines Ltd under option at the date of this report are shown in Note 22.

Shares issued on the exercise of options

No ordinary shares of Crossland Uranium Mines Ltd were issued during the year ended 31 December 2012 on the exercise of options granted. No further shares have been issued since that date. No amounts are unpaid on any of the shares

Directors’ interests in shares and options

The relevant interest of each Director in the share capital of the Company as at the date of this report is as follows:

2012	GS Eupene	M Smartt	RA Cleary	P Walker	R Richardson
Ordinaryshares	9,258,492	1,000,000	5,892,326	2,874,899	1,045,238
Options	4,629,245	1,200.000	-	1,089,741	522,619
Unissued incentive shares(see note)	-	-	-	-	-
2011	G Eupene	P Elliott	R Cleary	P Walker	R Richardson
Ordinaryshares	9,258,492	4,416,207	5,892,326	2,874,219	795,327
Options	-	-	-	-	-
Unissued incentive shares	3,000,000	333,334	2,000,000	333,334	333,334

Note – the unissued incentive shares lapsed during the year.

This report is made in accordance with a resolution of the Directors.

==> picture [124 x 47] intentionally omitted <==

Geoff Eupene, Director

Darwin, 27 March 2013

Statement of Comprehensive Income

for the year ended 31 December 2012

for the year ended 31 December 2012
Other comprehensive income after income tax: Exchange differences on translating foreign controlled entities 23 Other comprehensive income for the year, before tax Income tax (expense) benefit Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to members of the parent entity 25 Basic and diluted loss per share (cents) 10 Note Revenue 5 Expenses Administration costs Borrowing Costs 6 Consultants’ fees Depreciation 6 Employment costs Exploration expenditure written off 6 Office rent 6 Share of associates losses 17 Other expenses from ordinary activities Loss from ordinary activities before income tax expense Income tax (expense) benefit 11 Net loss from ordinary activities after income tax expense	(61,006) (353) Consolidated 2012 2011 $ $ 78,927 169,428 (330,355) (303,518) (446) (615) (145,228) (109,798) (104,389) (119,525) (422,305) (461,722) (1,040,767) (1,650,096) (116,953) (108,366) - 236,345 (42,906) (107,540) (2,124,422) (2,455,407) 366,116 65,073 (1,758,306) (2,390,334)
	(61,006) (353) - -
	(61,006) (353)
	(1,819,312) (2,390,687)
	(1.15) (1.84)

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

Statement of Financial Position

at 31 December 2012

31 December 2012
Note CURRENT ASSETS Cash and cash equivalents 12 Trade and other receivables 13 Other current assets 14 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Receivables 15 Deferred exploration and evaluation expenditure 16 Investments in associates accounted for using the equity method 17 Plant and equipment 18 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 19 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions 20 TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS SHAREHOLDERS' EQUITY Issued capital 21 Foreign currency translation reserve 23 Share based payments reserve 24 Accumulated losses 25 TOTAL EQUITY	Consolidated 2012 2011 $ $ 1,085,639 1,665,894 101,548 229,956 19,464 16,685
	1,206,651 1,912,535
	118,888 123,175 5,321,126 5,156,777 - - 135,222 226,985
	5,575,236 5,506,937
	6,781,887 7,419,472
	329,789 398,240
	329,789 398,240
	60,017 23,750
	60,017 23,750
	389,806 421,990
	6,392,081 6,997,482
	16,851,191 15,698,286 - (61,006) 337,136 337,136 (10,796,246) (8,976,934)
	6,392,081 6,997,482

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

Statement of Changes in Equity

for the year ended 31 December 2012

Consolidated At 1 January 2011 Loss for the period Shares issued (net of costs) Other comprehensive income At 31 December 2011 Loss for the period Shares issued (net of costs) Option issued (Rights Issue) Other comprehensive income At 31 December 2012	Issued Capital Accumulated Losses Foreign Currency Reserve Share Based Payments Reserve Total Equity $ $ $ $ $
	12,113,951 (6,586,600) (60,653) 337,136 5,803,834 - (2,390,334) - - (2,390,334) 3,584,335 - - - 3,584,335 - - (353) - (353)
	15,698,286 (8,976,934) (61,006) 337,136 6,997,482 - (1,758,306) - - (1,758,306) 865,608 - - - 865,608 287,297 - - - 287,297 - (61,006) 61,006 - -
	16,851,191 (10,796,246) - 337,136 6,392,081

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

Statement of Cash Flows

for the year ended 31 December 2012

Note CASH FLOWS FROM OPERATING ACTIVITIES Payment to suppliers (inclusive of GST) Interest received Interest paid Other income R & D Tax Offset Rebate received NET CASH INFLOWS (OUTFLOWS) FROM OPERATING ACTIVITIES 34(b) CASH FLOWS FROM INVESTING ACTIVITIES Expenditure on plant and equipment Expenditure on mining interests (exploration) Cash calls received from exploration JV parties Refunds of (payments for) security deposits NET CASH (OUTFLOWS) FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Share issue costs NET CASH INFLOWS FROM FINANCING ACTIVITIES NET (DECREASE) IN CASH HELD Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 34(a)	Consolidated 2012 2011 $ $ (964,301) (219,371) 32,777 136,434 (446) (615) 46,150 32,994 366,116 65,073
	(519,704) 14,515
	(12,626) (73,359) (2,071,564) (4,918,982) 866,447 1,104,205 4,287 (48,428)
	(1,213,456) (3,936,564)
	1,211,367 3,782,440 (58,462) (198,105)
	1,152,905 3,584,335
	(580,255) (337,714) 1,665,894 2,003,608
	1,085,639 1,665,894

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

Notes to the Financial Statements

for the year ended 31 December 2012

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report includes the consolidated entity consisting of Crossland Uranium Mines Ltd and its subsidiaries.

The separate financial statements of the parent entity, Crossland Uranium Mines Limited, have not been presented within this financial report as permitted by the Corporations Act 2001.

The financial statements were authorised for issue on 22[nd] March 2013 by the directors of the company.

Basis of preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Going concern basis

The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The company will have sufficient working capital to meet its minimum project development and administrative expenses in the twelve months following the date of signing of the financial report. The directors are investigating options to raise additional funds to allow the company to pursue its project opportunities beyond the minimum expenditure required with the intent that the consolidated group continues as a going concern.

Critical accounting estimates

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3.

Significant accounting policies

Accounting policies are selected and applied in a manner which ensures that the resultant financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions and other events is reported.

The Company has adopted relevant new and revised accounting standards and pronouncements with no material impact.

The following significant accounting policies have been adopted in the preparation and presentation of the financial report:

a) Borrowings

Loans are recorded at an amount equal to the net proceeds received. Interest expense is recognised on an accruals basis.

b) Borrowing costs

Borrowing costs are expensed as incurred.

c) Business combinations

Business combinations occur where an acquirer obtains control over one or more businesses.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured in each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to business combinations are recognised as expenses in profit or loss when incurred.

The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

d) Cash and cash equivalents

Cash and cash equivalents comprises cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the consolidated entity’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

e) Contributed equity

Ordinary shares are classified as equity.

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

f) Employee Benefits

Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wages increases and the probability that the employee may satisfy any vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows attributable to employee benefits.

g) Exploration and evaluation expenditure

Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area of interest.

Costs of site restoration are provided for over the life of the project from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis. Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.

h) Financial Instruments

Recognition and initial measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments.

(i) Financial assets at fair value through profit or loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a Group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.
(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.
(iv) Available-for-sale investments

Available-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management.

(v) Financial liabilities

Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised.

i) Foreign currency translation

i. Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is Crossland Uranium Mines Ltd’s functional and presentation currency.

ii. (ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

j) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

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

k) Goodwill

Goodwill is carried at cost less any accumulated impairment losses. Goodwill is calculated as the excess of the sum of:

(i) the consideration transferred;
(ii) any non-controlling interest; and

(iii) the acquisition date fair value of any previously held equity interest over the acquisition date fair value of net identifiable assets acquired.

The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any previously held equity interest shall form the cost of the investment in the separate financial statements.

Fair value remeasurements in any pre-existing equity holdings are recognised in profit or loss in the period in which they arise. Where changes in the value of such equity holdings had previously been recognised in other comprehensive income, such amounts are recycled to profit or loss.

The amount of goodwill recognised on acquisition of each subsidiary in which the Group holds less than a 100% interest will depend on the method adopted in measuring the non-controlling interest. The Group can elect in most circumstances to measure the non-controlling interest in the acquiree either at fair value (full goodwill method) or at the non-controlling interest's proportionate share of the subsidiary's identifiable net assets (proportionate interest method). In such circumstances, the Group determines which method to adopt for each acquisition and this is stated in the respective notes to these financial statements disclosing the business combination.

Under the full goodwill method, the fair value of the non-controlling interests is determined using valuation techniques which make the maximum use of market information where available. Under this method, goodwill attributable to the non-controlling interests is recognised in the consolidated financial statements.

Goodwill on acquisition of subsidiaries is included in intangible assets. Goodwill on acquisition of associates is included in investments in associates.

Goodwill is tested for impairment annually and is allocated to the Group's cash-generating units or groups of cash-generating units, representing the lowest level at which goodwill is monitored not larger than an operating segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the entity disposed of.

Changes in the ownership interests in a subsidiary are accounted for as equity transactions and do not affect the carrying amounts of goodwill.

l) Impairment of assets

The carrying amounts of the consolidated entity’s assets, other than deferred tax assets, are reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised whenever the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess recognised through profit or loss.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units (group of units) and then, to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.

i. Calculation of recoverable amount

The recoverable amount of assets is the greater of their net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

ii. Reversals of impairment

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

m) Income tax

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense, using the balance sheet liability method, reflects movements in deferred tax asset and deferred tax liability balances during the year as well unused tax losses.

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss.

Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.

Tax consolidation

The company and all its wholly-owned Australian resident entities have not entered into a tax consolidated group under Australian taxation law.

n) Investments in Associates

Associates are companies in which the Group has significant influence through holding, directly or indirectly, 20% or more of the voting power of the Group. Investments in associates are accounted for in the financial statements by applying the equity method of accounting, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of the associate company. In addition, the Group’s share of the profit or loss of the associate company is included in the Group’s profit or loss.

The carrying amount of the investment includes goodwill relating to the associate. Any discount on acquisition, whereby the Group’s share of the net fair value of the associate exceeds the cost of investment, is recognised in profit or loss in the period in which the investment is acquired.

Profits and losses resulting from transactions between the Group and the associate are eliminated to the extent of the Group’s interest in the associate.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group discontinues recognising its share of further losses unless it has incurred legal or constructive obligations or made payments on behalf of the associate. When the associate subsequently makes profits, the Group will resume recognising its share of those profits once its share of the profits equals the share of the losses not recognised.

Details of the Group’s investments in associates are provided in Note 17.

o) Joint ventures

The Group’s shares of the assets, liabilities, revenue and expenses of jointly controlled operations have been included in the appropriate line items of the consolidated financial statements. Details of the Group’s interests are provided in Note 28.

The Group’s interests in joint venture entities are recorded using the equity method of accounting (refer to Note 1(n) for details) in the consolidated financial statements.

Where the Group contributes assets to the joint venture or if the Group purchases assets from the joint venture, only the portion of the gain or loss that is not attributable to the Group’s share of the joint venture shall be recognised. The Group recognises the full amount of any loss when the contribution results in a reduction in the net realisable value of current assets or an impairment loss.

p) Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses in the periods in which they are incurred.

q) Loss per share

(i) Basic loss per share

Basic earnings (loss) per share is calculated by dividing the loss attributable to equity holders of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted loss per share

Diluted earnings (loss) per share adjusts the figures used in the determination of basic loss per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

r) Plant and equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(l) for details of impairment).

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred

Depreciation is provided on a straight line basis on all plant and equipment at rates calculated to write off the cost, less estimated residual value at the end of the useful lives of the assets, over those estimated useful lives.

The following estimated useful lives are used in the calculation of depreciation.

Plant and equipment 5-8 years Motor Vehicles 5 years

s) Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Crossland Uranium Mines Ltd (‘’company’’ or ‘’parent entity’’) as at 31 December 2012 and the results of all subsidiaries for the year then ended. Crossland Uranium Mines Ltd and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity.

Where controlled entities have entered or left the Group during the year, the financial performance of those entities is included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 29 to the financial statements.

In preparing the consolidated financial statements, all intragroup balances and transactions between entities in the consolidated group have been eliminated in full on consolidation.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported separately within the equity section of the consolidated statement of financial position and statement of comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the original business combination and their share of changes in equity since that date.

Investments in subsidiaries are accounted for at cost in the individual financial statements of Crossland Uranium Mines Ltd.

t) Provisions

A provision is recognised in the statement of financial position when the consolidated entity has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

u) Revenue recognition

Interest revenue is recognised using the effective interest method.

v) Segment reporting

A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different to those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environment and is subject to risks and returns that are different from those of segments operating in other economic environments.

w) Trade and other receivables

Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Refer to Note 1(l) for further discussion on the determination of impairment losses.

x) Trade and other payables

Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

y) Change in accounting policy

In the prior year, the group changed its accounting policy relating to the measurement of the provision for associates losses for the financial year ended 31 December 2011. The group’s share of the associate’s losses was previously recorded as a provision. The Group has now elected under the equity method to cease recording a provision on the basis that the group has not incurred and does not expect to incur legal or constructive obligations in relation to these losses. The aggregate effect of the change in accounting policy on the annual financial statements for the year ended 31 December 2011 is as follows:

		2011
	Previous		Revised
	Policy	Adjustment	Policy
Consolidated Group
Statement of comprehensive income
Share of associates losses ($)	(17,694)	254,039	236,345
Loss before income tax ($)	(2,709,446)	254,039	(2,455,407)
Income tax ($)	65,073	-	65,073
Basic earnings per share (cents)	(2.08)	0.00	(1.84)
Diluted earnings per share (cents)	(2.08)	0.00	(1.84)
Statement of financial position
Provisions ($)	(277,789)	254,039	(23,750)
Accumulated losses ($)	(9,230,973)	254,039	(8,976,934)
There has been no material impact on the 2012 figures.

For the parent entity, there has been no material impact.

New accounting standards for application in future periods

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods.

The Group has decided against early adoption of these standards.

A discussion of those future requirements and their impact on the Group follows Operative date 1 July 2012 with an application date for the group of 1 January 2013.

AASB	Summary	Impact on group
AASB 2011–9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]	The main change arising from this Standard is the requirement for entities to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently.	This Standard affects presentation only and is not expected to significantly impact the Group.

Operative date 1 January 2013 with an application date for the group of 1 January 2013.

AASB	Summary	Impact on group
AASB 10: Consolidated Financial Statements,	AASB 10 replaces parts of AASB 127: Consolidated and Separate Financial Statements (March 2008, as amended) and Interpretation 112: Consolidation – Special Purpose Entities. AASB 10 provides a revised definition of control and additional application guidance so that a single control model will apply to all investees.	The Group has not yet been able to reasonably estimate the impact of this Standard on its financial statements.
AASB 11: Joint Arrangements,	AASB 11 replaces AASB 131: Interests in Joint Ventures (July 2004, as amended). AASB 11 requires joint arrangements to be classified as either “joint operations” (whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities) or “joint ventures” (where the parties that have joint control of the arrangement have rights to the net assets of the arrangement). Joint ventures are required to adopt the equity method of accounting (proportionate consolidation is no longer allowed).	The amendments are not expected to significantly impact the Group.
AASB 12: Disclosure of Interests in Other Entities,	AASB 12 contains the disclosure requirements applicable to entities that hold an interest in a subsidiary, joint venture, joint operation or associate.	This Standard will only affect disclosures and is

AASB 12 also introduces the concept of a “structured not expected to entity”, replacing the “special purpose entity” concept significantly currently used in Interpretation 112, and requires impact the specific disclosures in respect of any investments in Group. unconsolidated structured entities. Operative date 1 January 2013 with an application date for the group of 1 January 2013.

AASB	Summary	Impact on group
AASB 127: Separate Financial Statements (August 2011),	To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued.	The amendments are not expected to significantly impact the Group.
AASB 128: Investments in Associates and Joint Ventures (August 2011)	To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued.	The amendments are not expected to significantly impact the Group.
AASB 2011–7: Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 9, 2009–11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17]	To facilitate the application of AASBs 10, 11 and 12, revised versions of AASB 127 and AASB 128 have also been issued.	The amendments are not expected to significantly impact the Group.
AASB 13: Fair Value Measurement and AASB 2011–8: Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009–11, 2011–7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]	AASB 13 defines fair value, sets out in a single Standard a framework for measuring fair value, and requires disclosures about fair value measurements. AASB 13 requires: - inputs to all fair value measurements to be categorised in accordance with a fair value hierarchy; and - enhanced disclosures regarding all assets and liabilities (including, but not limited to, financial assets and financial liabilities) measured at fair value.	These Standards are not expected to significantly impact the Group.

Operative date 1 January 2013 with an application date for the group of 1 January 2013.

AASB	Summary	Impact on group
AASB 119: Employee Benefits (September 2011) and AASB 2011–10: Amendments to Australian Accounting Standards arising from AASB 119 [AASB 1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB 2011–8 and Interpretation 14]	These Standards introduce a number of changes to the presentation and disclosure of defined benefit plans, including: - removal of the “corridor” approach from AASB 119, thereby requiring entities to recognise all changes in a net defined benefit liability (asset) when they occur; - disaggregation of changes in a net defined benefit liability (asset) into service cost (including past service cost and gains and losses on non-routine settlements and curtailments), net interest expense (interest based on the net defined benefit liability (asset) using the discount rate applicable to post-employment benefits) and remeasurements (comprising actuarial gains and losses, return on plan assets less the “revenue” component of the net interest expense, and any change in the limit on a defined benefit asset). In addition, AASB 119 (September 2011) requires recognition of: - service cost and net interest expense in profit or loss; and - remeasurements in OCI; and - introduction of enhanced disclosure requirements to facilitate the provision of more useful information in relation to an entity’s defined benefit plans. AASB 119 (September 2011) also includes changes to the accounting for termination benefits that require an entity to recognise an obligation for such benefits at the earlier of: (i) for an offer that may be withdrawn – when the employee accepts; (ii) for an offer that cannot be withdrawn – when the offer is communicated to affected employees; and (iii) where the termination is associated with a restructuring of activities under AASB 137: Provisions, Contingent Liabilities and Contingent Assets, and if earlier than the first two conditions – when the related restructuring costs are recognised.	The Group has not yet been able to reasonably estimate the impact of these changes on its financial statements.

Operative date 1 January 2013 with an application date for the group of 1 January 2013.

AASB	Summary	Impact on group
AASB 2012–2: Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities	- AASB 2012–2 principally amends AASB 7: Financial Instruments: Disclosures to require entities to include information that will enable users of their financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set- off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position.	This Standard is not expected to significantly impact the Group’s financial statements
AASB 2012–5: Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011	- This Standard amends a number of Australian Accounting Standards as a consequence of the issuance ofAnnual Improvements to IFRSs 2009–2011 Cycle by the International Accounting Standards Board, including: - AASB 1: First-time Adoption of Australian Accounting Standards to clarify the requirements in respect of the application of AASB 1 when an entity discontinues and then resumes applying Australian Accounting Standards; - AASB 101: Presentation of Financial Statements and AASB 134: Interim Financial Reporting to clarify the requirements for presenting comparative information; - AASB 116: Property, Plant and Equipment to clarify the accounting treatment of spare parts, stand-by equipment and servicing equipment; - AASB 132 and Interpretation 2: Members’ Shares in Co-operative Entities and Similar Instruments to clarify the accounting treatment of any tax effect of a distribution to holders of equity instruments; and - AASB 134 to facilitate consistency between the measures of total assets and liabilities an entity reports for its segments in its interim and annual financial statements.	This Standard is not expected to significantly impact the Group’s financial statements.

Operative date 1 July 2013 with an application date for the group of 1 January 2014.

AASB	Summary	Impact on group
AASB 2011–4: Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements	- This Standard makes amendments to AASB 124: Related Party Disclosures to remove the individual key management personnel disclosure requirements (including paras Aus29.1 to Aus29.9.3). These amendments serve a number of purposes, including furthering trans-Tasman convergence, removing differences from IFRSs, and avoiding any potential confusion with the equivalentCorporations Act 2001 disclosure requirements.	This Standard is not expected to significantly impact the Group’s financial statements

Operative date 1 January 2014 with an application date for the group of 1 January 2014.

AASB	Summary	Impact on group
AASB 2012–3: Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities	- This Standard adds application guidance to AASB 132: Financial Instruments: Presentation to address potential inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of “currently has a legally enforceable right of set-off” and that some gross settlement systems may be considered equivalent to net settlement.	This Standard is not expected to significantly impact the Group’s financial statements

Operative date 1 January 2015 with an application date for the group of 1 January 2015.

AASB	Summary	Impact on group
AASB 9: Financial Instruments and AASB 2009–11: Amendments to Australian Accounting Standards arising from AASB 9	The changes made to accounting requirements include: - simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value; - simplifying the requirements for embedded derivatives; - removing the tainting rules associated with held-to- maturity assets; - removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost; - allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument; and - reclassifying financial assets where there is a change in an entity’s business model as they are initially classified based on the objective of the entity’s business model for managing the financial assets and the characteristics of the contractual cash flows.	These Standards are applicable retrospectively and amend the classification and measurement of financial assets. The Group has not yet determined potential impact on the financial statements.

The Group does not anticipate the early adoption of any of the above reporting requirements.

FINANCIAL RISK MANAGEMENT

The Group's activities expose it to a variety of financial risks; market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.

(i) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the consolidated entity’s functional currency.
(ii) Credit risk
There is negligible credit risk on financial assets of the consolidated entity since there is no exposure to individual customers or countries and the economic entity’s exposure is limited to the amount of cash, short term deposits and receivables which have been recognised in the statement of financial position and is minimised by using recognised financial intermediaries as counterparties.
(iii) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed finance facilities.

(iv) Cash flow and fair value interest rate risk

The Group has interest-bearing assets, however the Group’s income and operating cash flows are not materially exposed to changes in market interest rates.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Income taxes

The Group is subject to income taxes in Australia and Canada. Significant judgement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred tax provisions in the period in which such determination is made

Exploration and evaluation expenditure

The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded. Such capitalised expenditure is carried at the end of the reporting period at $5,321,126.

4. PARENT COMPANY FINANCIAL INFORMATION

The following information has been extracted from the books and records of the parent and has been prepared in accordance with Accounting Standards. STATEMENT OF FINANCIAL POSITION ASSETS Current assets Non-current assets TOTAL ASSETS LIABILITIES Current liabilities Non Current Liabilities TOTAL LIABILITIES EQUITY Issued capital Accumulated losses Share based payments reserve TOTAL EQUITY STATEMENT OF COMPREHENSIVE INCOME Total loss TOTAL COMPREHENSIVE INCOME (LOSS)	2012 $ 1,202,024 7,106,910	2011 $ 1,909,409 6,631,071
	8,308,934	8,540,480
	314,789 51,267	383,240 15,000
	366,056	398,240
	16,851,191 (9,245,449) 337,136	15,698,286 (7,983,182) 337,136
	7,942,878	8,142,240
	(1,352,267)	(1,482,279)
	(1,352,267)	(1,482,279)

Guarantees

Crossland Uranium Mines Ltd has not entered into any guarantees, in the current financial period, in relation to the debts of any of its subsidiaries.

Contingent liabilities

At 31 December 2012, Crossland Uranium Mines Ltd had no contingent liabilities.

Contractual commitments

At 31 December 2012, Crossland Uranium Mines Ltd had not entered into any contractual commitments for the acquisition of property, plant and equipment.

5. REVENUE

Interest received Past period recoveries Other income Total revenue from continuing operations	Consolidated 2012 2011 $ $ 32,777 136,434 46,150 32,746 - 248
	78,927 169,428

6. OPERATING LOSS FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE

	Consolidated	Consolidated
	2012	2011
	$	$
The operating loss from ordinary activities before income tax expense
has been determined after charging the following expenses:
Depreciation	104,389	119,525
Employee entitlements	7,543	9,885
Exploration expenditure written off	1,040,767	1,650,096
Interest paid	446	615
Office rent	116,953	108,366
Superannuation	32,095	31,414

7. KEY MANAGEMENT PERSONNEL DISCLOSURES

a) Directors

The following persons were Directors of Crossland Uranium Mines Limited during the whole of the financial year and up to the date of this report unless otherwise stated:

Geoffrey S Eupene Robert A Cleary (Resigned 24 February 2013) Peter W Walker Robert L Richardson Malcolm K Smartt (Appointed 21 June 2012) Patrick J D Elliott (Resigned 10 May 2012)

b) Other key management personnel

All directors are identified as key management personnel under AASB 124 “Related Party Disclosures”.

There are no other staff that meet the definition of key management personnel.

c) Key management personnel compensation

Key management personnel compensation
Short-term employee benefits Post-employment benefits Share-based payments	Consolidated 2012 2011 $ 534,776 516,478 13,793 8,938 - -
	548,569 525,416

The Company has taken advantage of the relief provided by the Corporations Regulations and has transferred the detailed remuneration disclosures to the Directors’ report. The relevant information can be found in sections A-D of the remuneration report included in the Directors report.

d) Equity instrument disclosures relating to key management personnel

(i) Options provided as remuneration and shares issued on exercise of such options
No options were provided as remuneration and no shares were issued on the exercise of such options.

(ii) Option holdings

As detailed below at 31 December 2012.

The relevant interest of each Director in options of the Company as at the date of this report is as follows:

follows:
2012 Name	Balance at the start of the year	Granted during the year	Exercised during the year	Other changes during the year	Balance at the end of the year	Vested and exercisable at the end of theyear
Options
Directors ofCrossland Uranium Mines Ltd
Geoffrey S Eupene Peter W Walker Robert L Richardson Malcolm K Smartt	- - - 500,000	- - - -	- - - -	4,629,245 1,089,741 522,619 700,000	4,629,245 1,089,741 522,619 1,200,000	4,629,245 1,089,741 522,619 1,200,000

Notes

1 Options for M Smartt – 15 cents exercise price Expiry 30 Jun 13

Other changes during year relate to options from the Rights Issue and now listed on the ASX as Class CUXO. Exercise price 15 cents and expiry 30 November 2014.

2011 Name	Balance at the start of the year	Granted during the year	Exercised during the year	Lapsed during the year	Balance at the end of the year	Vested and exercisable at the end of theyear
Directors ofCrossland Uranium Mines Ltd
Geoffrey S Eupene Patrick J D Elliott Robert A Cleary Peter W Walker Robert L Richardson	- - - - -	- - - - -	- - - - -	- - - - -	- - - - -	- - - - -

(iii) Share holdings

The numbers of shares in the company held at the end of the financial year by each Director of the Company and other key management personnel of the Group, including their personally related parties, are set out below. There were no shares granted during the reporting period as compensation.

Ordinary shares

Ordinaryshares	Ordinaryshares	Ordinaryshares	Ordinaryshares	Ordinaryshares
Directors ofCrossland Uranium Mines Ltd
2012 Name	Balance at the start of theyear	Received during the year as incentive shares	Other changes duringtheyear	Balance at the end of theyear
Geoffrey S Eupene Peter W Walker Robert A Cleary Robert L Richardson Malcolm K Smartt	9,258,492 2,874,899 5,892,326 795,238 200,000	- - - -	- - - 250,000 800,000	9,258,492 2,874,899 5,892,326 1,045,238 1,000,000
2011
Geoffrey S Eupene Patrick J D Elliott Robert A Cleary Peter W Walker Robert L Richardson	9,201,350 4,359,065 5,892,326 2,846,328 766,667	- - - - -	57,142 57,142 - 28,571 28,571	9,258,492 4,416,207 5,892,326 2,874,899 795,238

(iv) Incentive Share holdings

The numbers of incentive shares in the company unallotted but able to be issued on satisfaction of certain criteria at the end of the financial year by each Director of the Company and other key management personnel of the Group, including their personally related parties, are set out below. There were no incentive shares allotted during the reporting period as compensation. The time period for achievement of the criteria expired during the year and accordingly all unallotted incentive shares lapsed.

Incentive shares	Incentive shares
Directors ofCrossland Uranium Mines Ltd
2012 Name	Balance at the start of theyear	Lapsed during the year	Allotted during theyear	Balance at the end of theyear
Geoffrey S Eupene Peter W Walker Robert A Cleary Robert L Richardson	3,000,000 333,334 2,000,000 333,334	(3,000,000) (333,334) (2,000,000) (333,334)	- - - -	- - - -
2011
Geoffrey S Eupene Patrick J D Elliott Robert A Cleary Peter W Walker Robert L Richardson	3,000,000 333,334 2,000,000 333,334 333,334	- - - - -	- - - - -	3,000,000 333,334 2,000,000 333,334 333,334

8. REMUNERATION OF AUDITORS

Audit of the Company's accounts Other services	Consolidated 2012 2011 $ $ 31,000 27,500 - -
	31,000 27,500

9. FINANCIAL REPORTING BY SEGMENTS

Identification of reportable segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The group is managed primarily on the basis of exploration in Australia. Operating segments are therefore determined on the same basis.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Unless stated otherwise, all amounts reported to the Board of Directors, being the chief decision makers with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.

Inter-segment transactions

An internally determined transfer price is set for all inter-segment sales. This price is reset quarterly and is based on what would be realised in the event the sale was made to an external party at arm’s length. All such transactions are eliminated on consolidation of the Group’s financial statements.

Corporate charges are allocated to reporting segments based on the segments overall proportion of revenue generation within the Group. The Board of Directors believes this is representative of likely consumption of head office expenditure that should be used in assessing segment performance and cost recoveries.

Inter-segment loans payable and receivable are initially recognised at the consideration received/to be received net of transaction costs. If inter-segment loans receivable and payable are not on commercial terms, these are not adjusted to fair value based on market interest rates. This policy represents a departure from that applied to the statutory financial statements

Segment assets

Where an asset is used across multiple segments, the asset is allocated to the segment that receives majority economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.

Segment liabilities

Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct borrowings.

Unallocated items

The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:

impairment of assets and other non-recurring items of revenue or expense;
income tax expense;
deferred tax assets and liabilities;
current tax liabilities;
other financial liabilities;
intangible assets

• income tax expense; • deferred tax assets and liabilities; • current tax liabilities; • other financial liabilities; • intangible assets
Segment performance Interest received Past period recoveries Other income Total revenue from continuing operations Segment net loss from continuing operations before tax Reconciliation of segment result to group net profit/loss before tax: Amounts not included in segment result but reviewed by the Board: — administration charges — depreciation and amortisation Income tax benefit Net loss after tax from continuing operations Segment Assets Reconciliation of segment assets to group assets: Unallocated assets Group assets Segment Liabilities Reconciliation of segment liabilities to group liabilities: Unallocated liabilities Group liabilities	Exploration Australia 2012 $ 32,777 46,150 -	Total Exploration Australia 2012 2011 $ $ 32,777 136,434 46,150 32,746 - 248	Total 2011 $ 136,434 32,746 248
	78,927	78,927 169,428	169,428
	(1,646,327) Exploration Australia 2012 $ 6,781,887 389,806	(1,646,327) (2,032,364) (373,706) (104,389) 366,116 (1,758,306) Total Exploration Australia 2012 2011 $ $ 6,781,887 7,419,472 - 6,781,887 389,806 421,990 - 389,806	(2,032,364) (303,518) (119,525) 65,073
			(2,390,334)
			Total 2011 $ 7,419,472 -
			7,419,472
			421,990 -
			421,990
			35

10. LOSS PER SHARE

10. LOSS PER SHARE
	2012		2011
(a) Basic and diluted loss per share	Cents		Cents
Loss attributable to the ordinary equity holders of the Company		(1.15)	(1.84)
(b) Reconciliation of loss used in calculating loss per share	2012		2011
Basic and diluted loss per share	$		$
Loss attributable to the ordinary equity holders of the Company used in
calculating basic and diluted loss per share	(1,819,312)		(2,390,687)
	2012		2011
(c) Weighted average number of shares used as the denominator	Number		Number
Weighted average number of ordinary shares used as the denominator in
calculating basic and diluted loss per share.	157,629,043		130,294,567
The options on issue as stated in note 22 have not been taken into account
for dilution purposes as they are not considered to be dilutive due to the
exercise prices being in excess of the current share price.
11. TAXATION
	Consolidated
The prima facie income tax expense on pre-tax accounting profit	2012		2011
reconciles to the income tax expense in the financial statements	$		$
as follows:
Loss from ordinary activities	(2,124,422)	(2,390,334)
Income tax expense calculated at 30% of operating loss	637,327	717,100
Deferred tax amounts not recognised	(637,327)	(717,100)
R & D Tax Offset Rebate received	366,116		65,073
Income tax expense (benefit)	366,116		65,073
Other comprehensive income	(61,006)		(353)
Income tax expense calculated at 30% of other comprehensive	18,302		106
income
Deferred tax amounts not recognised	(18,302)		(106)
Income tax expense (benefit)	-		-
Deferred tax assets
Not brought to account calculated at 30%
Revenue tax losses	4,560,796	3,629,912
Capital tax losses	27,257		27,000
Temporary differences	382,760		360,414
Total	4,970,813	4,017,326

The taxation benefits of revenue tax losses and temporary differences not brought to account will only be obtained if:

(i) the company and the consolidated entity derive further assessable income of a nature and of an amount sufficient to enable the benefit from the deductions to be realised;
(ii) the company and the consolidated entity continue to comply with the conditions for deductibility imposed by the law; and
(iii) no changes in tax legislation adversely affect the company's and the consolidated entity's ability in realising the benefit from the deductions.

12. CASH AND CASH EQUIVALENTS

Cash at bank and on hand Deposits at call Bank bills 13. TRADE AND OTHER RECEIVABLES Other receivables GST debtor 14. OTHER CURRENT ASSETS Prepayments 15. RECEIVABLES – NON-CURRENT Security deposits 16. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE Deferred exploration costs Deferred exploration costs brought forward Expenditure incurred during the year Amounts received from Joint venture participants Exploration expenditure written off Deferred exploration costs carried forward	Consolidated 2012 2011 $ 127,815 104,182 957,824 561,712 - 1,000,000
	1,085,639 1,665,894
	81,634 69,418 19,914 160,538 101,548 229,956 19,464 16,685
	19,464 16,685
	118,888 123,175 118,888 123,175
	5,321,126 5,156,777
	5,156,777 2,992,096 2,071,564 4,918,982 (866,448) (1,104,205) (1,040,767) (1,650,096)
	5,321,126 5,156,777

The above amounts represent costs incurred on exploration areas of interest which have been carried forward as an asset in accordance with the accounting policy set out in note 1.

The ultimate recoupment of deferred exploration and evaluation expenditure carried forward in respect of an area of interest is dependent upon the discovery of commercially viable reserves and the successful development and exploitation of the respective areas or alternatively sale of the underlying areas of interest for at least their carrying value.

Amortisation, in respect of the relevant area of interest, is not charged until a mining operation has commenced.

17. INVESTMENT IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD

(a) Details of associate:

(a)	Details of associate:
		Ownership interest		Carrying amount
Name of Associate Principal Activities		2012	2011	2012	2011
		%	%	$	$
Crosscontinental General Exploration and
Limited evaluation		50	50	-	-
(b)	Share of reserves attributable to associates:
	Share of associates’ profits taken up in the consolidated financial statements
	Operating profit (loss) before tax			(15,886)	(17,694)
	Income tax expense			-	-
	Net operating profit after income tax as shown in the Statement of
	Comprehensive Income			(15,886)	(17,694)
	Retained earnings at beginning of period			-	(236,345)
	Share of associates losses no longer recognised			15,886	254,039
	Retained earnings at end of period			-	-
(c)	Movement in equity accounted investment
	Carrying amount of investment at beginning of financial year			-	(230,777)
	Share of associates’ current year losses after tax	(refer (b))		(15,886)	(17,694)
	Share of associates losses no longer recognised			15,886	254,039
	Share of associates’ prior year losses after tax not previously recognised			-	(5,568)
	Amounts due from joint venture			-	-
	Carrying amount of investment (provision for associates losses) at end of
	financial year			-	-
	Summary of financial position of associated entity:
	Current assets			27,336	131,274
	Current liabilities			(530,185)	(614,640)
	Non-current assets			3,517	4,396
	Net liabilities			(499,332)	(478,970)

8. PLANT & EQUIPMENT Plant and equipment Cost Accumulated depreciation Motor vehicles Cost Accumulated depreciation Total Plant and equipment	Consolidated 2012 2011 $ $ 407,297 394,671 (325,567) (268,208)
	81,730 126,463
	280,691 280,691 (227,199) (180,169)
	53,492 100,522
	135,222 226,985

18. PLANT & EQUIPMENT

Reconciliations of the carrying amount of each class of plant and equipment at the beginning and end of the current financial year are set out below.

Consolidated 2012

Consolidated 2012
Carrying amount at 1 January 2012 Additions Depreciation Disposals Carrying amount at 31 December 2012 Consolidated 2011 Carrying amount at 1 January 2011 Additions Depreciation Disposals Carrying amount at 31 December 2011	Plant & equipment 126,463 12,626 (57,359) - 81,730 127,824 64,459 (65,820) - 126,463	Motor Vehicles Total 100,522 226,985 - 12,626 (47,030) (104,389) - -
		53,492 135,222
		145,327 273,151 8,900 73,359 (53,705) (119,525) -
		100,522 226,985

19. TRADE AND OTHER PAYABLES Trade creditors and accruals Annual leave entitlements	Consolidated 2012 2011 $ $ 310,788 350,516 19,001 47,724 329,789 398,240

20. NON CURRENT PROVISIONS Site rehabilitation Long Service Leave 21. CONTRIBUTED EQUITY Issued Capital 157,629,043 fully paid ordinary shares (2011 –137,094,155) Options Rights Issue Less share issue costs Movements in Issued Capital Balance as at 1 January 2012 Issues during period: Securities Purchase Plan Placement Options Rights Issue Less share issue costs Balance as at 31 December 2012	Consolidated 2012 2011 $ $ 23,750 23,750 36,267 -
	60,017 23,750
	17,438,137 16,514,067 287,297 - (874,243) (815,781) 16,851,191 15,698,286 15,698,286 12,113,951 - 882,490 924,070 2,899,940 287,297 - (58,462) (198,095) 16,851,191 15,698,286

22. OPTIONS

22. OPTIONS
Expiry Date Exercise Price 30 Jun 13 0.15 31 Dec 12 0.20 30 Jun 13 0.15 30 Nov 14 0.15	Issued 1 Jan 12 Granted Exercised Lapsed Issued 31 Dec 12 1,200,000 - - (1,200,000) - 2,300,000 - - (2,300,000) - 5,750,000 - - - 5,750,000 - 35,574,642 - - 35,574,642
	9,250,000 35,574,642 - (3,500,000) 41,324,642

23. FOREIGN CURRENCY TRANSLATION RESERVE

23. FOREIGN CURRENCY TRANSLATION RESERVE
Balance at the beginning of the financial year Exchange gains transferred to reserve Disposal of controlled entity Balance at the end of the financial year	Consolidated 2012 2011 $ $ (61,006) (60,653) - (353) 61,006 -
	- (61,006)

Nature and purpose of reserve

The Foreign Currency Translation Reserve records unrealised exchange gains and losses on translation of foreign controlled entities during the year.

24. SHARE BASED PAYMENTS RESERVE

Balance at the beginning of the financial year Share based payments transferred to reserve Balance at the end of the financial year	Consolidated 2012 2012 $ $ 337,136 337,136 - -
	337,136 337,136

Nature and purpose of reserve

The share based payments reserve records the value of options issued to employees and Directors which have been taken to expenses.

25. ACCUMULATED LOSSES

Accumulated losses at the beginning of the financial year Net loss for the year Accumulated losses at the end of the financial year

(8,976,934) (6,586,247) (1,819,312) (2,390,687) (10,796,246) (8,976,934))

26. CONTINGENT LIABILITIES

Director’s Service Contract

Mr G Eupene had a contract which expired on 1 June 2012 under which he was paid a minimum of $10,500 per month for 12 days work. The contingent liability represents amounts payable during the remainder of the contract.

63,000

There are no other contingent liabilities.

27. COMMITMENTS

Exploration Tenement Expenditure Requirements

In order to maintain the consolidated entity’s tenements in good standing with Australian mining authorities, the Company will be required to incur exploration expenditure under the terms of each claim.

Payable not later than one year Payable later than one year, but not later than two years	Consolidated 2012 2011 $ $ 958,379 811,000 - -
	958,379 811,000

It is likely that variations to the terms of the current and future tenement holdings, the granting of new tenements and changes in tenement areas at renewal or expiry, will change the expenditure commitment to the consolidated entity from time to time.

If funds are not available to meet the required expenditure on a tenement the relevant Australian mining authority would be contacted to negotiate a reduction of the expenditure. Should the negotiations not be satisfactory then the company would withdraw from the tenement.

Operating lease commitments

Operating leases relate to storage facilities. The consolidated entity does not have an option to purchase the leased asset at the expiry of the lease period.

Payable not later than one year Payable later than one year, but not later than two years	Consolidated 2012 2011 $ $ - - - -
	- -

28. JOINT VENTURES

The Group is engaged in the following exploration joint ventures, whose principal activities are exploration for uranium and rare earth elements.

Pancontinental Joint Venture Interests were shown in the statement of financial position as Exploration and evaluation expenditure Total non-current assets	2012 2011 % % 55% 55% 2012 2011 $ $ 4,758,776 2,216,014
	4,758,776 2,216,014

29. PARTICULARS RELATING TO CONTROLLED ENTITIES

Company Country of Incorporation and Operation Crossland Diamonds Pty Ltd Australia Crossland Mines Pty Ltd Australia Crossland Nickel Pty Ltd Australia Paradigm Mexico Pty Ltd Australia KSL Exploration (Yukon) Ltd Canada	Percentage of Equity Held 2012 2011
	100% 100% 100% 100% 100% 100% 100% 100% 0% 100%

30. RELATED PARTY DISCLOSURES

(a) Directors

The names of each person holding the position of director of Crossland Uranium Mines Ltd during the financial year were:

Geoffrey S Eupene Robert A Cleary (Resigned 24 February 2013) Peter W Walker Robert L Richardson Malcolm K Smartt (Appointed 21 Jun 2012) Patrick J D Elliott (Resigned 10 May 2012)

(b) Directors interests

Interests in the shares and options of the Company held by current directors and their director-related entities are shown in note 7.

(c) Associates of directors

Directors fees were paid to the following associates of directors:

Director Associated company RA Cleary Accomplishments Pty Ltd PJD Elliott Panstyn Investments Pty Ltd RL Richardson GeoTangent Pty Ltd

(d) Transactions with associates of directors

(d) Transactions with associates of directors
	2012	2011
	$	$
Eupene Exploration Enterprises (EEE), a Company in which Mr Eupene is a Director and shareholder, is utilised to provide geophysical and geological services in relation to Crossland Tenements. Fees paid are on normal commercial terms.
Consulting geologists	262,000	284,250
Equipment hire	3,900	10,800
Vehicle hire	2,250	34,165
GeoTangent Pty Ltd, a Company in which Mr Richardson is a Director and shareholder, is utilised to conduct geophysical and exploration on Crossland Tenements. Feespaid are on normal commercial terms.	65,867	76,228

(e) Joint Ventures

Amounts receivable from joint venture parties at balance date

Consolidated	Consolidated
2012	2011
$		$
-		-

31. EVENTS OCCURRING AFTER THE END OF THE FINANCIAL YEAR

There were at the date of this report no matters or circumstances which have arisen since 31 December 2012 that have significantly affected or may significantly affect:

(i) the operations of the consolidated entity,
(ii) the results of those operations, or
(iii) the state of affairs of the consolidated entity

in the financial year subsequent to 31 December 2012.

32. FINANCIAL INSTRUMENTS DISCLOSURES

(a) Capital

The Group considers its capital to comprise its ordinary share capital and accumulated retained earnings.

In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders through a combination of capital growth and distributions. In order to achieve this objective, the Group seeks to maintain a gearing ratio that balances risks and returns at an acceptable level and also to maintain a sufficient funding base to enable the Group to meet its working capital and strategic investment needs. In making decisions to adjust its capital structure to achieve these aims, either through altering its dividend policy, new share issues, or reduction of debt, the Group considers not only its short-term position but also its long-term operational and strategic objectives.

It is the Group’s policy to maintain its gearing ratio within the range of 0-25% (2011: 0-25%). The Group’s gearing ratio at the end of the financial year is shown below:

Cash and cash equivalents Net debt Share capital Reserves Accumulated losses Total capital Gearing ratio	Consolidated 2012 2011 $ $ 1,085,639 1,665,894	Consolidated 2012 2011 $ $ 1,085,639 1,665,894
	1,085,639	1,665,894
	16,851,191 337,136 (10,796,246) 6,392,081 -	15,698,286 276,130 (8,976,934)
		6,997,482
		-

(b) Financial instrument risk exposure and management

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them.

Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

(c) Principal financial instruments

The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:

other receivables;

cash at bank;

trade and other payables.

(d) General objectives, policies and processes

The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and has the responsibility for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group’s finance function. The Board receives monthly reports through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.

The overall objective of the board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below:

(i) Credit risk

Credit risk arises principally from the Group’s trade receivables and investments in corporate bonds. It is the risk that the counterparty fails to discharge its obligation in respect of the instrument.

Other receivables

Other receivables comprise GST receivable.

The maximum exposure to credit risk at balance date is as follows

The maximum exposure to credit risk at balance date is as follows
Security Deposits Other receivables GST receivables	Consolidated 2012 2011 $ $ 118,888 123,175 81,634 69,418 19,914 160,538
	220,436 353,131

(ii) Liquidity risk

Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.

The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of at least 45 days.

The Board receives cash flow projections on a quarterly basis as well as information regarding cash balances. At the end of the financial year, these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances.

The risk implied from the values shown in the table below, reflects a balanced view of cash inflows and outflows. Trade payables and other financial liabilities mainly originate from the financing of assets used in our ongoing operations such as property, plant, equipment and investments in working capital (e.g., trade receivables). These assets are considered in the Group's overall liquidity risk.

	Carrying	Contractual	< 6 mths	6- 12		1-3		> 3 years
	Amount	Cash flows		mths		years
	$	$	$	$		$		$
Maturity Analysis -	Consolidated –	2012
Financial Liabilities
Trade Creditors	223,636	223,636	223,636		-		-	-
TOTAL	223,636	223,636	223,636		-		-	-
Maturity Analysis -	Consolidated –	2011
Financial Liabilities
Trade Creditors	240,228	240,228	240,228		-		-	-
TOTAL	240,228	240,228	240,228		-		-	-

Market risk

Market risk does not arise as the Group does not use interest bearing, tradable and foreign currency financial instruments.

(iv) Interest rate risk

(a) The Company receives interest on its cash balance and at balance date was exposed to a floating weighted average interest rate on cash balances of 3.05% (2009 – 3.05%). As surplus funds become available, they are deposited in its cash management account and are exposed to receiving a floating rate, which varies according to the amount of funds deposited. All other financial assets are non-interest bearing.
(b) Net fair value of financial assets and liabilities: the net fair value of cash and cash equivalents and non-interest bearing financial assets and financial liabilities approximates their carrying value.
(c) The consolidated entity’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial assets and financial liabilities is set out in the following table:

Fixed interest maturingin:	Non-interest bearing $ - 101,548 19,464	Total $ 1,085,639 101,548 19,464
1 year or less over 1 to 5 years more than 5 years $ $ $ - - - - - - - - -
- - -	121,012	1,206,651
- - -	329,789	329,789
- - -	329,789	329,789
- - -	(208,777)	876,862
Fixed interest maturingin:	Non-interest bearing $ - 229,956 123,175	Total $ 1,665,894 229,956 123,175
1 year or less over 1 to 5 years more than 5 years $ $ $ - - - - - - - - -
- - -	353,131	2,019,025
- - -	398,240	398,240
- - -	398,240	398,240
- - -	(45,109)	1,620,785

Sensitivity Analysis

Sensitivity Analysis
2012 Cash assets Tax charge of 30% Post tax profit increase / (decrease) 2011 Cash assets Tax charge of 30% Post tax profit increase / (decrease)	Carrying amount 1,085,639	Consolidated +1% interest rate -1% interest rate Profit & Loss Profit & Loss 10,856 (10,856)
	1,085,639	10,856 (10,856)
	1,665,894	(3,257) 3,257
		7,599 (7,599)
		16,659 (16,659)
	1,665,894	16,659 (16,659)
		(4,998) 4,998
		11,661 (11,661)

(v) Currency risk

The Group’s policy is, where possible, to allow group entities to settle liabilities denominated in their functional currency (AUD) with the cash generated from their own operations in that currency. Where group entities have liabilities denominated in a currency other than their functional currency (and have insufficient reserves of that currency to settle them) cash already denominated in that currency will, where possible, be transferred from elsewhere in the Group The Group’s exposure to foreign currency risk is as follows:

Consolidated 2012 2011 $CAD $CAD Cash at bank - 11,247 Intercompany loans - - Net Exposure - 11,247 The following sensitivity analysis is based on the foreign currency risk exposures in existence at the year end. The below analysis assumes all other variables remain constant. Sensitivity Analysis Consolidated +10% CAD /AUD -10% CAD/AUD 2012 Carrying amount Profit & Loss Profit & Loss $CAD AUD$ AUD$ Cash at bank - - - - - - Tax charge of 30% - - Post tax profit increase / (decrease) - - 2011 Cash at bank 11,247 1,077 (1,077) 11,247 1,077 (1,077) Tax charge of 30% (323) 323 Post tax profit increase / (decrease) 754 (754)	Consolidated 2012 2011 $CAD $CAD Cash at bank - 11,247 Intercompany loans - - Net Exposure - 11,247 The following sensitivity analysis is based on the foreign currency risk exposures in existence at the year end. The below analysis assumes all other variables remain constant. Sensitivity Analysis Consolidated +10% CAD /AUD -10% CAD/AUD 2012 Carrying amount Profit & Loss Profit & Loss $CAD AUD$ AUD$ Cash at bank - - - - - - Tax charge of 30% - - Post tax profit increase / (decrease) - - 2011 Cash at bank 11,247 1,077 (1,077) 11,247 1,077 (1,077) Tax charge of 30% (323) 323 Post tax profit increase / (decrease) 754 (754)	Consolidated 2012 2011 $CAD $CAD Cash at bank - 11,247 Intercompany loans - - Net Exposure - 11,247 The following sensitivity analysis is based on the foreign currency risk exposures in existence at the year end. The below analysis assumes all other variables remain constant. Sensitivity Analysis Consolidated +10% CAD /AUD -10% CAD/AUD 2012 Carrying amount Profit & Loss Profit & Loss $CAD AUD$ AUD$ Cash at bank - - - - - - Tax charge of 30% - - Post tax profit increase / (decrease) - - 2011 Cash at bank 11,247 1,077 (1,077) 11,247 1,077 (1,077) Tax charge of 30% (323) 323 Post tax profit increase / (decrease) 754 (754)	Consolidated 2012 2011 $CAD $CAD Cash at bank - 11,247 Intercompany loans - - Net Exposure - 11,247 The following sensitivity analysis is based on the foreign currency risk exposures in existence at the year end. The below analysis assumes all other variables remain constant. Sensitivity Analysis Consolidated +10% CAD /AUD -10% CAD/AUD 2012 Carrying amount Profit & Loss Profit & Loss $CAD AUD$ AUD$ Cash at bank - - - - - - Tax charge of 30% - - Post tax profit increase / (decrease) - - 2011 Cash at bank 11,247 1,077 (1,077) 11,247 1,077 (1,077) Tax charge of 30% (323) 323 Post tax profit increase / (decrease) 754 (754)
		-	- -
		11,247	- -
			- -
			1,077 (1,077)
		11,247	1,077 (1,077)
			(323) 323
			754 (754)

(vi) Sovereign risk

Country or sovereign risk relates to the likelihood that changes in the business environment will occur that reduce the profitability of doing business in a country. These changes can adversely affect operating profits as well as the value of assets. Types of country risk include;

Political changes. Governments may change economic policies. Changes in the ruling party in Australia (brought about by elections, coups or wars) may results in major policy changes. This could result in expropriation of the Group’s exploration leases, inability to repatriate future profits, higher taxes, higher tariffs and import costs, elimination of FDI incentives, domestic ownership requirements and local content requirements.

Macroeconomic mismanagement. The Australian government may pursue unsound monetary and fiscal policies which may lead to inflation, higher interest rates, recession and hard currency shortage.

Other types of country risk include war and labour unrest which could result in higher costs and work stoppages.

The Group has maintained a working policy of keeping all relevant Government offices informed and updated on activities to allow clear avenues of communication with Government authorities and an understanding of any policy changes and any affects that they may have on the Group’s work.

(e) Accounting policies

(i) Financial assets

The Group’s financial assets fall into the categories discussed below, with the allocation depending to an extent on the purpose for which the asset was acquired. The Group does not use derivative financial instruments in economic hedges of currency or interest rate risk. The Group has not classified any of its financial assets as held to maturity.

Unless otherwise indicated, the carrying amounts of the Group’s financial assets are a reasonable approximation of their fair values.

Other receivables

These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the sale of assets and GST receivable. They are initially recognised at fair value plus transaction costs that are directly attributable to the acquisition or issue and subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. The effect of discounting on these financial instruments is not considered to be material.

Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of the future such provisions are recorded in a separate allowance account with the loss being recognised within administrative expenses in the income statement. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

Available for sale

Non-derivative financial assets not included in the above categories are classified as available for sale. They are carried at fair value with changes in fair value recognised directly in the available for sale reserve. Where there is a significant or prolonged decline in the fair value of an available for sale financial asset (which constitutes objective evidence of impairment), the full amount of the impairment, including any amount previously charged to equity, is recognised in the income statement. Purchases and sales of available for sale financial assets are recognised on settlement date with any change in fair value between trade date and settlement date being recognised in the available for sale reserve. On sale, the amount held in the available for sale reserve associated with that asset is removed from equity and recognised in the income statement. Interest on corporate bonds classified as available for sale is calculated using the effective interest method and is recognised in finance income in the income statement.

(ii) Financial liabilities

The Group classifies its financial liabilities as measured at amortised cost. The Group does not use derivative financial instruments in economic hedges of currency or interest rate risk.

Unless otherwise indicated, the carrying amounts of the Groups financial liabilities are a reasonable approximation of their fair values.

These financial liabilities include trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method

(iii) Share capital

Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Groups ordinary shares are classified as equity instruments.

For the purposes of these disclosures, the Group considers its capital to comprise its ordinary share capital, and accumulated retained earnings. Neither the available for sale reserve nor the translation reserve is considered as capital. There have been no changes in what the Group considers to be capital since the previous period.

The Group is not subject to any externally imposed capital requirements

33. DISPOSAL OF CONTROLLED ENTITY

On 1 August 2011, a controlled entity, KSL Exploration (Yukon) Ltd was dissolved. The consideration received was $nil. Disposal Consideration: Cash Less: Cash Exploration expenditure Current liabilities Goodwill	Acquiree’s carrying amount Fair Value $ $ - -
	- - - - - -
	- -
	- -

In addition an amount of $61,006 was transferred from the Foreign Exchange Translation Reserve to Accumulated Losses as it is no longer required.

34. NOTES TO THE STATEMENTS OF CASH FLOWS

(a) Cash on hand comprises: Cash at bank and on hand Deposits at call Bank bills	Consolidated 2012 2011 $ $ 127,815 104,182 957,824 561,712 - 1,000,000
	1,085,639 1,665,894

(b) Reconciliation of loss from ordinary activities after income tax to net cash outflows from operating	(b) Reconciliation of loss from ordinary activities after income tax to net cash outflows from operating	(b) Reconciliation of loss from ordinary activities after income tax to net cash outflows from operating
activities as follows:
Operating (loss) after income tax	(1,758,306)	(2,390,334)
Depreciation	104,389	119,525
Exploration expenditure written off	1,040,767	1,650,096
Provision for leave entitlements	7,544	9,885
Share of associates loss	-	(236,345)
Share based payments expense	-	-
Change in operating assets and liabilities:
- Decrease / (Increase) in receivables	128,408	653,181
- Decrease / (Increase) in other assets	(2,779)	1,480
- Increase / (Decrease) in accounts payable	(39,727)	207,027
Net cash inflow (outflow) from operating activities	(519,704)	14,515

Directors’ Declaration

The Directors of the Company declare that:

the financial statements and notes, as set out on pages 10 to 51, are in accordance with the Corporations Act 2001 and:
- (a) comply with Accounting Standards, which, as stated in accounting policy note 1 to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and
- (b) give a true and fair view of the financial position as at 31 December 2012 and of the financial performance for the year ended on that date of the company and consolidated group; and
the Chief Executive Officer and Chief Finance Officer have each declared that:
- (c) the financial records of the Company for the financial year have been properly maintained in accordance with section 286 of the Corporation Act 2001;
- (d) the financial statements and notes for the financial year comply with the Accounting Standards; and
- (e) the financial statements and notes for the financial year give a true and fair view.
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.

Dated at Darwin this 27[th] day of March 2013 On behalf of the Board

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Geoff Eupene Director