EVOLUTION MINING LIMITED — Interim / Quarterly Report 2003

Mar 13, 2003

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2002

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES

DIRECTORS REPORT

Your Directors present the financial report of the Company and its controlled entities for the half year ended 31 December 2002.

Directors

The names of the Directors in office at any time during or since the end of the half year are:

Pieter W Greeff Andrew J Drummond Murray G Pollock Christopher P Mellov (appointed as Director on 25 September 2002; resigned 10 March 2003) Doug M Young

Review of Operations

• On 14 August 2002 the Company was admitted to the Official List of ASX. This followed the issue of 25,000,000 shares at 20 cents each to raise \$5,000,000 pursuant to a prospectus dated 12 June 2002. Funds raised from the issue enabled the Company to continue development plans at its Westonia Gold Project in Western Australia.
• The economic entity has commissioned a feasibility study into the re-development of mining operations at the $\bullet$ Westonia mine, held by the economic entity. Depending on the results of the study, the economic entity plans to commence construction and development of a mine during the current year.
• The Company issued a total of 27,782,234 bonus options to shareholders through a pro rata issue to all $\bullet$ shareholders on 21 October 2002, on a one-for-three basis. Options are exercisable at 20 cents each on or before 20 August 2006.

Signed in accordance with a resolution of the Board of Directors:

"Andrew Drummond"

Director

Dated this 13th day of March 2003

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2002

	Economic Entity Half year ended 31 December 2002
Revenue from ordinary activities	85,781
Administration expenses Depreciation and Amortisation expense Wages, salaries and consulting fees Other expenses	(115, 984) (4, 488) (149, 622) (2,045)
Loss from ordinary activities before income tax expense	(186, 358)
Income tax expense relating to ordinary activities
Net loss attributable to members of the parent entity	(186, 358)
Total revenues, expenses and valuation adjustments attributable to members of the parent entity and recognised directly in equity	(186, 358)
Total changes in equity other than those resulting from transactions with owners as owners	(186, 358)
Basic earnings /(loss) per share (cents per share)	(0.24)
Diluted earnings /(loss) per share (cents per share)	(0.21)

The accompanying notes form part of these financial statements.

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2002

	31 December 2002	30 June 2002
	\$	\$
CURRENT ASSETS
Cash assets	4,293,979	367,355
Receivables	137,645	246,500
Other	10,000	2,045
TOTAL CURRENT ASSETS	4,441,624	615,900
NON-CURRENT ASSETS
Property, plant and equipment	39,306	5,269
Other	1,981,068	1,308,692
Intangible assets	28,271	29,936
TOTAL NON-CURRENT ASSETS	2,048,645	1,343,897
TOTAL ASSETS	6,490,268	1,959,797
CURRENT LIABILITIES
Payables	206,387	90,914
Provisions	3,815
TOTAL CURRENT LIABILITIES	210,202	90,914
NET ASSETS	6,280,066	1,868,883
EQUITY
Contributed equity	6,517,895	1,920,352
Accumulated losses	(237, 829)	(51, 469)
TOTAL EQUITY	6,280,066	1,868,883

The accompanying notes form part of these financial statements.

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

	31 December 2002
	\$
CASH FLOW FROM OPERATING ACTIVITIES
Payments to suppliers and employees	(277, 598)
Interest received	59,766
Net cash provided by (used in) operating activities	(217,832)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for exploration activities	(551,240)
Payments for property, plant and equipment	(36, 191)
Payments for bonds	(10,000)
Net cash provided by (used in) investing activities	(597, 431)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issues	5,000,000
Costs associated with capital raisings	(258, 113)
Net cash provided by (used in) financing activities	4,741,887
Net increase (decrease) in cash held	3,926,624
Cash at beginning of the financial period	367,355
Cash at end of the financial period	4,293,979

The accompanying notes form part of these financial statements.

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The Half-year Consolidated Financial Statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this Financial Report be read in conjunction with the Annual Financial Report for the year ended 30 June 2002 and any public announcements made by Westonia Mines Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entities in the economic entity and are consistent with those applied in the 30 June 2002 Annual Report.

The Half-Year Report does not include full disclosures of the type normally included in the Annual Financial Report.

Comparatives

As interim financial statements of the controlled entities were not prepared for the prior corresponding half year, and as accounts were not previously consolidated, the presentation of comparatives may be misleading.

LOSS FROM ORDINARY ACTIVITIES $2.$

	Economic entity
	31 December 2002
The following revenue and expense items are
relevant in explaining the financial performance for the interim period:
Amortisation cost	1.663
Depreciation expenses	2.825
Write off of formation expenses	2.045

3. CONTRIBUTED EOUITY

Issued and paid up capital 83,347,119 (June 2002: 58.347,119) ordinary shares fully paid

	No. shares	Issued capital \$
Movements during the financial period: Shares on issue at the beginning of the financial period	58,347,119	1,920.352
Issue at 20 cents each pursuant to prospectus	25,000.000	5,000.000
Capital raising costs associated with the prospectus issue		(402, 457)
	83, 347, 119	6,517,895

6,517.895

WESTONIA MINES LIMITED ABN 74 084 669 036 AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2002

4. CONTINGENT LIABILITIES

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

5. SEGMENT REPORTING

The Company and consolidated entity operate predominantly in one business and one geographical segment, being mineral exploration activities within Australia. Substantially, all of the consolidated entity's assets are deployed for this purpose.

6. SUBSEQUENT EVENTS

There has not arisen any transaction or event of a material nature likely, in the opinion of Directors, to significantly affect the nature of the operations of the Company subsequent to the end of the financial period.

DIRECTORS DECLARATION

The Directors of the Company declare that:

• 1. The financial statements and notes, as set out on pages 3 to 7:
• a. comply with Australian Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Act 2001: and
• b. give a true and fair view of the consolidated entity's financial position as at 31 December 2002 and performance for the half year ended on that date of the Company and economic entity.
• 1. 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.

"Andrew Drummond"

Director

Dated this 13th day of March 2003.

To the members of Westonia Mines Limited

Scope

We have reviewed the financial report of Westonia Mines Limited ("the Company") for the half-year ended 31 December 2002 as set out on pages 3 to 8. The financial report includes the consolidated financial statements of the consolidated entity comprising the Company and the entities it controlled at the end of the half-year or from time to time during the half-year. The company's directors are responsible for the financial report.

We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia and statutory requirements, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the Company to lodge the financial report with the Australian Securities and Investments Commission/Australian Stock Exchange Limited.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. The review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit, and accordingly, we do not express an audit opinion.

Statement

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 Westonia Mines Limited is not in accordance with:

• the Corporations Act 2001, including: a.
• i. giving a true and fair view of the company's financial position at 31 December 2002 and of its performance for the half-year ended on that date: and
• complying with Accounting Standard AASB 1029 "Interim Financial ii. Reporting" and the Corporations Regulations 2001; and
• $_b$ other mandatory professional reporting requirements.

ORD PARTNERS Chartered Accountants

Ian K Macpherson Partner

Dated this 13^th day of March, 2003. Perth, Western Australia

PARTNERS CHARTERED ACCOUNTANTS

Ian K Macpherson CA.

Robert W Parker CA.

Craig A Vivian CA

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Level 2, 47 Colin Street West Perth WA 6005

PO Box 359 West Perth WA 6872

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