ENOVA MINING LIMITED — Interim / Quarterly Report 2016

Sep 12, 2016

==> picture [194 x 83] intentionally omitted <==

Crossland Strategic Metals Limited

AND CONTROLLED ENTITIES

A.B.N. 91 086 332 836

HALF YEARLY CONDENSED FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2016

	Page No.
Directors' Report	2
Statement of Comprehensive Income	4
Statement of Financial Position	5
Statement of Changes in Equity	6
Statement of Cash flows	7
Notes to the Financial Statements	8
Directors' Declaration	16
Auditor's Independence Declaration	17
Independent Review Report	18

• 1 -

DIRECTORS

Sia Hok Kiang (Chairman) Geoffrey S Eupene Eric Vesel Stanislaw (Stan) Wassylko (Appointed 21 March 2016) Peter W Walker (Resigned 19 January 2016) Malcolm K Smartt (Resigned 16 February 2016) Robert L Richardson (Resigned 16 February 2016)

SECRETARY

Grahame Clegg

REGISTERED OFFICE

Suite 8, Raffles Plaza 1 Buffalo Court Darwin ACT 0800 Telephone: (08) 8981 5911 Facsimile:

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

Boardroom Pty Limited Level 7, 207 Kent Street Sydney NSW 2000

Phone – 1300 737 760

• 2 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

DIRECTORS' REPORT

The directors of Crossland Strategic Metals Limited ("Crossland" or "the Company") submit herewith the financial report for the six months ended 30 June 2016. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names and positions of the directors of the Company during and since the end of the period are set out below. Each director was in office for this entire period unless otherwise shown.

Sia Hok Kiang (Non-Executive Chairman)

Geoffrey S Eupene (Executive Director) Eric Vesel (Non-Executive Director) Stanislaw (Stan) Wassylko (Non-Executive Director) (Appointed 21 March 2016) Robert L Richardson (Non-Executive Chairman) (Resigned 16 February 2016) Peter W Walker (Non-Executive Director) (Resigned 19 January 2016) Malcolm K Smartt (Non-Executive Director) (Resigned 16 February 2016)

Mr Geoffrey Eupene retired as Executive Director and CEO of the company on August 1 2016, and these duties have been assumed by Mr Eric Vesel. Mr. Eupene remains a non- executive director of the company.

Review of operations

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

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 18.

Signed in accordance with a resolution of the directors made pursuant to s. 298(2) of the Corporations Act 2001.

On behalf of the directors

==> picture [94 x 40] intentionally omitted <==

E Vesel

Director

Darwin, this 13th day of September 2016

• 3 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2016

Note Revenue and other income 2 Administration expenses Consultants Fees Depreciation and amortisation expense Employee benefits expense Exploration expenditure written off Minesite rehabilitation provision Occupancy expenses Exchange Losses Other expenses from ordinary activities Loss before income tax benefit Income tax benefit 3 Loss for period Other comprehensive income Other comprehensive income before income tax benefit Income tax expense Other comprehensive income for the period TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Basic and diluted loss per share 6 Total comprehensive income attributable to members of Crossland Strategic Metals Limited	30 June 30 June 2016 2015 $ $ 33,155 17,590 (79,199) (30,166) (28,821) (12,250) (2,201) (9,442) (82,435) (185,958) (22,950) (14,200) 3,750 - (14,554) (27,701) (36) - (870) (12,386) (194,161) (274,513) - - (194,161) (274,513) - - - - - - - - (194,161) (274,513) (194,161) (274,513) (0.05) (0.09) Half-year Consolidated	30 June 30 June 2016 2015 $ $ 33,155 17,590 (79,199) (30,166) (28,821) (12,250) (2,201) (9,442) (82,435) (185,958) (22,950) (14,200) 3,750 - (14,554) (27,701) (36) - (870) (12,386) (194,161) (274,513) - - (194,161) (274,513) - - - - - - - - (194,161) (274,513) (194,161) (274,513) (0.05) (0.09) Half-year Consolidated
		(274,513) -
		(274,513)
		-
		- -
		-
		(274,513)
		(274,513)
		(0.09)

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

• 4 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Prepayments TOTAL CURRENT ASSETS NON-CURRENT ASSETS Receivables Property, plant and equipment Exploration expenditures TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Loans from directors and related parties Other loans Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS (LIABILITIES) EQUITY Issued capital 4 Reserves Accumulated losses TOTAL EQUITY	30 June 31 December 2016 2015 $ $ 2,788 24,830 18,835 18,529 1,117 226 22,740 43,585 50,255 50,254 3,726 5,927 4,347,154 4,318,993 4,401,135 4,375,174 4,423,875 4,418,759 510,786 968,663 15,000 - 544,598 - 47,670 47,258 1,118,054 1,015,921 35,625 33,481 35,625 33,481 Consolidated	30 June 31 December 2016 2015 $ $ 2,788 24,830 18,835 18,529 1,117 226 22,740 43,585 50,255 50,254 3,726 5,927 4,347,154 4,318,993 4,401,135 4,375,174 4,423,875 4,418,759 510,786 968,663 15,000 - 544,598 - 47,670 47,258 1,118,054 1,015,921 35,625 33,481 35,625 33,481 Consolidated
		43,585
		50,254 5,927 4,318,993
		4,375,174
		4,418,759
		968,663 - - 47,258
		1,015,921
		33,481
		33,481
	1,153,679 3,270,196 19,836,888 343,790 (16,910,482) 3,270,196 -	1,049,402
		3,369,357
		19,741,888 343,790 (16,716,321)
		3,369,357
		-

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

• 5 -

Crossland Strategic Metals Limited

AND CONTROLLED ENTITIES

STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2016

Balance at 1 January 2015 Shares issued during period (Loss) for the period Other comprehensive income Balance at 30 June 2015 Balance at 1 January 2016 Shares issued during period (Loss) for the period Other comprehensive income Balance at 30 June 2016	Share $ 19,062,386 279,000 - - 19,341,386 19,741,888 95,000 - - 19,836,888 -	Reserves $ 343,790 - - - 343,790 343,790 - - - 343,790 -	$ (14,321,709) - (274,513) - (14,596,222) (16,716,321) - (194,161) - (16,910,482) - Retained (Losses)	Total $ 5,084,467 279,000 (274,513) -
				5,088,954
				3,369,357 95,000 (194,161) -
				3,270,196
				-

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

• 6 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 30 JUNE 2016

	Consolidated	Consolidated
	30 June	30 June
	2016	2015
	$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	-	-
Payments to suppliers and employees	(101,086)	(332,932)
Interest received	99	28
Net cash used in operating activities	(100,987)	(332,904)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration expenditure	(518,653)	(193,716)
Sale of tenements	38,000	-
Refunds of security deposits	-	39,725
Net cash used in investing activities	(480,653)	(153,991)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issues	-	279,000
Loans from directors and related parties received	15,000	-
Other loans received	544,598	-
Net cash provided by financing activities	559,598	279,000
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	(22,042)	(207,895)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL PERIOD	24,830	266,865
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL PERIOD	2,788	58,970
	-
The above statement of cash flows should be read in conjunction with the accompanying notes.

• 7 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2016

NOTE

1 Summary of accounting policies 2 Revenue and other income 3 Income Tax 4 Issued Capital 5 Earnings per Share 6 Events subsequent to balance date 7 Loans from directors and related parties 8 Segment information 9 Contingent liabilities

• 8 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 30 JUNE 2016

1. SUMMARY OF ACCOUNTING POLICIES

(a) Financial reporting framework

The financial report is a general purpose financial report for the interim half year reporting period ended 30 June 2016 which has been prepared in accordance with the Corporations Act 2001, and Australian Accounting Standard AASB 134 Interim Financial Reporting.

The financial report has been prepared on the basis of historical cost and, except where stated, does not take into account changing money values or current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

The financial report has been prepared on a going concern basis, which presumes the realisation of assets and discharge of liabilities in the normal course of business for the foreseeable future. The directors confirm, on an ongoing basis, that the company and the economic entity continue to meet this criteria, refer to Note 1 (b) below.

This interim report does not include all the notes of the type normally included in an annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. Accordingly, this interim financial report is to be read in conjunction with the annual report for the year ended 31 December 2015 and any public announcements made by Crossland Strategic Metals Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

(b)	Going concern	30 June	30 June
The	financial report has been prepared on a going concern basis.	2016	2015
		$	$
	Net loss for the period	(194,161)	(274,513)
	Negative cash flows from operations for the period	(100,987)	(332,904)
	Net assets as at 30 June	3,270,196	5,088,594
	Cash balances as at 30 June	2,788	58,970

The Directors regularly monitor the Group’s cash position and on an on-going basis consider a number of strategic and operational plans and initiatives to ensure that adequate funding continues to be available for the Group to meet its business objectives as the Group continues to work towards the development and commercialisation of its Charley Creek REE tenements.

The directors believe that 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 and reduce its working capital requirements with the intent that the consolidated group continues as a going concern.

If all of these options are unsuccessful, this may indicate that there is a material uncertainty that may cast significant doubt about the consolidated entity's ability to continue as a going concern.

• 9 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 30 JUNE 2016

1. SUMMARY OF ACCOUNTING POLICIES

Adoption of New and Revised Accounting Standards

During the current year the Group adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory.

The adoption of these standards has impacted the recognition, measurement and disclosure of certain transactions. The following is an explanation of the impact the adoption of these standards and interpretations has had on the financial statements of Crossland Strategic Metals Ltd.

New Accounting Standards for Application in Future Periods

The AASB has issued a number of new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods, some of which are relevant to the Group. The Group has decided not to early adopt any of the new and amended pronouncements. The Group’s assessment of the new and amended pronouncements that are relevant to the Group but applicable in future reporting periods is set out below:

Operative date 1 January 2019 with an application date for the group of 1 July 2019.

AASB 9: Financial Instruments (December 2010) and AASB 2010–7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]

These Standards are applicable retrospectively and include revised requirements for the classification and measurement of financial instruments, as well as recognition and derecognition requirements for financial instruments.

The key 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

• 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

• l d l f h d

• reclassifying financial assets where there is a change in an entity’s business model as they are initially (a) the objective of the entity’s business model for managing the financial assets; and

• (b)the characteristics of the contractual cash flows.

• requiring an entity that chooses to measure a financial liability at fair value to present the portion of the change in its fair value due to changes in the entity’s own credit risk in other comprehensive income, except when that would create an accounting mismatch. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss.

The Group has not yet been able to reasonably estimate the impact of these pronouncements on its financial statements.

No other new or proposed accounting standards or interpretations are expected to have a material impact on the Group.

• 10 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2016

2. REVENUE AND OTHER INCOME Revenue from continuing operations Other income Interest received Sale of tenements Other income Total revenue and other income 3. INCOME TAX	30 June 30 June 2016 2015 $ $ - - 99 28 33,056 - - 17,562 33,155 17,590 Consolidated	30 June 30 June 2016 2015 $ $ - - 99 28 33,056 - - 17,562 33,155 17,590 Consolidated
		17,590

(a) Income tax expense

Income tax benefit calculated at 30% Temporary differences and tax losses not recognised Other permanent differences - Non deductible expenses Income tax benefit attributable to loss (b) Income tax expense on other comprehensive income Income tax benefit calculated at 30% Temporary differences and tax losses not recognised (refer Note 7(d)) Income tax benefit attributable to other comprehensive income The prima facie income tax benefit on pre-tax accounting loss reconciles to the income tax benefit in the financial statements as follows: Loss for year before income tax benefit The prima facie income tax benefit on pre-tax other comprehensive income reconciles to the income tax benefit in the financial statements as follows: Other comprehensive income for year	(194,161) (58,248) 58,248 - - - - -	(274,513)
		(82,354) 82,354
		-
		-
		- -
		-

• 11 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2016

4. ISSUED CAPITAL 352,557,970 fully paid ordinary shares (2015: 321,771,900 ) Less share issue costs Fully paid ordinary shares carry one vote per share and carry the right to dividends. Movements in share capital Balance at beginning of financial year Shares issued during the year Repayment of loans Shares placement. Shares issued to directors Balance at end of financial year 5. EARNINGS PER SHARE Basic and diluted Loss for six month period Weighted average number of shares used in basic and diluted earnings per share Basic and diluted earnings per share (cents per share)	30 June 30 June 2016 2015 $ $ 20,705,936 20,210,434 (869,048) (869,048) 19,836,888 19,341,386 19,741,888 19,062,386 95,000 - - 125,000 - 154,000 19,836,888 19,341,386 2,015 2,014 (194,161) (274,513) 390,859,340 311,033,348 (0.05) (0.09) Consolidated	30 June 30 June 2016 2015 $ $ 20,705,936 20,210,434 (869,048) (869,048) 19,836,888 19,341,386 19,741,888 19,062,386 95,000 - - 125,000 - 154,000 19,836,888 19,341,386 2,015 2,014 (194,161) (274,513) 390,859,340 311,033,348 (0.05) (0.09) Consolidated
		19,341,386
		19,062,386 - 125,000 154,000
		19,341,386
		2,014 (274,513) 311,033,348
		(0.09)

6. EVENTS SUBSEQUENT TO BALANCE DATE

Pancontinental Uranium Corporation (PUC) has finalised the sale of its 47.32% of the joint venture to Essential Mining Resources EMR. EMMCO, the 100% owner of EMR, has made an offer to sell EMR to the company for the consideration of shares in the company and has also advanced funds of $473,852 to the company to continue operations on the company's tenements. A General Meeting of the company is to be held in the near future to approve the details of the transaction.

Mr Geoffrey Eupene retired as Executive Director and CEO of the company on August 1 2016, and these duties have been assumed by Mr Eric Vesel. Mr. Eupene remains a non- executive director of the company.

There has not been any other matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

• 12 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2016

		NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2016
			Consolidated
**7. **	LOANS FROM DIRECTORS AND RELATED PARTIES		30 June	30	June
			2016	2015
	(a)	Loans from directors during the period	$		$
		During the period loans were made to the group by its directors. The
		amounts loaned during the period are:
		Eric Vesel	15,000			-
	(b)	Loans from directors - amounts outstanding at period end
		During the period loans were made to the group by its directors. The
		amounts outstanding, which include accumulated accrued interest, at 30
		Eric Vesel	15,000			-
		The loans from directors and related parties are unsecured.

8. SEGMENT INFORMATION

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

The group is managed primarily on the basis of mineral exploration and associated technology development 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.

• 13 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 30 JUNE 2016

8. SEGMENT INFORMATION (CONTINUED)

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; and intangible assets

Consolidated - 30 June 2016 Head Office Segment performance $ $ Revenue Interest revenue 99 - Other income - 33,056 Total revenue 99 33,056 Operating result Segment net loss before income tax benefit 30,947 (110,624) Reconciliation of segment result to group net loss before tax Amounts not included in segment result but reviewed by board - Depreciation Unallocated items: - Administration costs Total net loss before income tax benefit Segment assets and liabilities Segment assets 5,547,774 4,401,829 Unallocated assets Group assets Segment liabilities 830,471 10,733,888 Unallocated liabilities Group liabilities Exploration Australia		Intersegment $ - - - (33,084)	Total $ 99 33,056
			33,155
			(112,761) (2,201) (79,199)
		(5,525,728) (10,410,680)
			(194,161)
			4,423,875 -
			4,423,875
			1,153,679 -
			1,153,679

• 14 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2016

8. SEGMENT INFORMATION (CONTINUED)

Consolidated - 30 June 2015 Head Office Segment performance $ $ Revenue Interest revenue 28 - Other income - 17,562 Total revenue 28 17,562 Operating result Segment net loss before income tax benefit Segment net loss before income tax benefit (7,046) (227,859) Reconciliation of segment result to group net loss before tax Amounts not included in segment result but reviewed by board - Depreciation Unallocated items: - Administration costs Total net loss before income tax benefit Segment assets and liabilities Segment assets 6,822,500 5,634,668 Unallocated assets Group assets Segment liabilities 409,716 10,148,989 Unallocated liabilities Group liabilities Exploration Australia	Head Office $ $ 28 - - 17,562 28 17,562 (7,046) (227,859) Exploration Australia	Intersegment $ - - - -	Total $ 28 17,562
			17,590
			(234,905) (9,442) (30,166)
		(6,744,550) (9,935,041)
			(274,513)
			- 5,712,618 -
			5,712,618
			623,664 -
			623,664

9. CONTINGENT LIABILITIES

There are no contingent liabilities which have arisen since the end of the previous financial year

• 15 -

Crossland Strategic Metals Limited AND CONTROLLED ENTITIES

DIRECTORS' DECLARATION

The directors of the company declare that:

• 1 The financial statements, comprising the statement of comprehensive income, statement of financial position, statement of changes in equity, cash flow statement and accompanying notes, are in accordance with the Corporations Act 2001 and:

• (a) comply with Accounting Standards and the Corporations Regulations 2001; and

• (b) give a true and fair view of the financial position as at 30 June 2016 and of the performance for the half-year ended on that date of the consolidated entity.

• 2 In the directors’ opinion, with reference to Note 1(b), there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to s295(5) of the Corporation Act 2001.

On behalf of the directors

==> picture [94 x 40] intentionally omitted <==

E Vesel

Director

Darwin, this 13th day of September 2016

• 16 -

directors G W Cliffe CA A J Dowell CA

==> picture [412 x 67] intentionally omitted <==

north sydney office Level 13, 122 Arthur St North Sydney NSW 2060

all correspondence PO Box 1664 North Sydney NSW 2059

t 02 9956 8500

f 02 9929 7428

e bdj@bdj.com.au

www.bdj.com.au

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Crossland Strategic Metals Limited and Controlled Entities

I declare that, to the best of my knowledge and belief during the half-year ended 30 June 2016 there have been:

• a. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

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

BDJ Partners Audit Pty Limited

==> picture [119 x 45] intentionally omitted <==

........................................... Gregory W Cliffe Director

5 September 2016

Liability limited by a scheme approved under Professional Standards Legislation. Please refer to the website for our standard terms of engagement.

directors G W Cliffe CA A J Dowell CA

==> picture [411 x 67] intentionally omitted <==

north sydney office Level 13, 122 Arthur St North Sydney NSW 2060

all correspondence PO Box 1664 North Sydney NSW 2059

t 02 9956 8500

f 02 9929 7428

e bdj@bdj.com.au

www.bdj.com.au

Independent Auditor’s Review Report

To the members of Crossland Strategic Metals Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Crossland Strategic Metals Limited and controlled entities ("the consolidated entity"), which comprises the condensed consolidated statement of financial position as at 30 June 2016, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 30 June 2016 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the consolidated entity, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Liability limited by a scheme approved under Professional Standards Legislation. Please refer to the website for our standard terms of engagement.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of the company, would be in the same terms if given to the directors as at the time of this auditor’s report.

Conclusion

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

• (a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 .

Going Concern

Without modifying our conclusion, we draw attention to Note 1 (b) "Going concern" which states that the directors are investigating options to raise additional funds and reduce the working capital requirements of the business. Should these measures be unsuccessful, it would indicate a material uncertainty which may cast doubt about the consolidated entity's ability to continue as a going concern and the consolidated entity's ability to pay its debts as and when they fall due.

BDJ Partners Audit Pty Limited

==> picture [120 x 44] intentionally omitted <==

........................................... Gregory W Cliffe Director

13 September 2016

Liability limited by a scheme approved under Professional Standards Legislation. Please refer to the website for our standard terms of engagement.