FOCUS MINERALS LTD — Interim / Quarterly Report 2015

Sep 2, 2015

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Focus Minerals Limited

ABN 56 005 470 799

Interim Financial Report for the half year ended 30 June 2015

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Table of Contents

Corporate Information ..................................................................................................................................... 3 Directors’ Report ............................................................................................................................................. 4 Auditor’s Independence Declaration ............................................................................................................. 6 Notes to the Consolidated Interim Financial Report for the Half Year Ended 30 June 2015 ................. 11 Directors’ Declaration ................................................................................................................................... 19 Independent Auditor’s Review Report ........................................................................................................ 20

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Corporate Information

ABN 56 005 470 799

Directors

Jisheng Lu Yuhuan Ge Wanghong Yang Gerry Fahey Peter Hepburn-Brown Zaiqian Zhang

Chairman – Non-Executive, Non-Independent Director – Non-Executive, Non-Independent Director – Executive Director – Independent Director – Independent Alternate Director to Jisheng Lu – Executive

Company Secretary

Dane Etheridge

Registered and Head Office

Level 2 159 Adelaide Terrace East Perth WA 6004

PO Box 3233 East Perth WA 6892

Tel: +61 (0) 8 9215 7888 Fax: +61 (0) 8 9215 7889

Share Registry

Computershare Investor Services Pty Ltd Level 11 172 St Georges Terrace Perth WA 6000

Auditor

PricewaterhouseCoopers 125 St Georges Terrace Perth WA 6000

Bankers

National Australia Bank 100 St Georges Terrace Perth WA 6000

Bank of China Perth Branch Ground Floor, 179 St Georges Terrace Perth WA 6000

Solicitors

Murcia Pestell Hillard Lawyers Suite 183, Level 6 580 Hay Street Perth, WA 6000

Jackson McDonald 225 St Georges Terrace Perth WA 6000

Stock Exchange Listing

Australian Securities Exchange (ASX) ASX Symbol: FML

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Directors’ Report

The Directors of Focus Minerals Limited (“Focus”) are pleased to present the Interim Financial Report for the half year ended 30 June 2015.

Directors

Jisheng Lu Chairman – Non-Executive, Non-Independent Yuhuan Ge Director – Non-Executive, Non-Independent Wanghong Yang Director – Executive Gerry Fahey Director – Independent Peter Hepburn-Brown Director – Independent, appointed on 10 April 2015 Zaiqian Zhang Alternate Director to Jisheng Lu – Executive

Review of Operations

Exploration

During the first half of 2015, Focus Minerals continued to follow up on the high potential areas which were identified in the 2014 exploration programmes. Combining ground work and desktop research, the Company was able to test the extensions both at depth and along the strike of several known mineralisations and identify secondary exploration targets. This work was a substantial contribution to the process of re-establish the resource pipeline for future production.

Coolgardie

A total of 27 holes were drilled across the Coolgardie Gold Project, consisting 4,531.5m of RC and 1,115.6m of diamond core.

The main focus for the first six months of the year was on Bonnie Vale. The programmes were designed to explore the extensions of the high-grade mineralised reefs at Bonnie Vale while also testing secondary targets nearby such as Calisto and Bonnie Vale West.

Highlights of the drilling results from Bonnie Vale and its vicinity are:

• 2.0m @ 12.84 g/t Au from 229m in BONC064;

• 1.0m @ 10.41 g/t Au from 334m in BONCD065;

• 5.5m @ 11.81 g/t Au from 223m in BONCD066;

• 1.0m @ 10.43 g/t Au from 111m and

• 3.7m @ 10.48 g/t Au from 151.3m and

• 2.5m @ 13.88 g/t Au from 181m in BONDD068;

• 2.0m @ 14.18 g/t Au from 118m in BONC070.

Besides Bonnie Vale, Focus also conducted drilling at Brilliant North in order to test the Brilliant Pit’s northern extension potential. The highlight is as follows:

• 1.2m @ 7.3 g/t Au from 246m in BRRCD037.

Laverton

A total of 90 holes for 3,860m were drilled across the tenements in Laverton. Focus also conducted two rounds of geophysics activities during the first half of 2015 with a main focus on the Burtville-Karridale trend, accompanied with a range of secondary targets testing.

The Karridale diamond drilling programme intersected arsenopyrite rich, hydrothermal breccia with high-grade gold mineralisation. It was the first such intersection at Karridale. The new breccia zone appears unconstrained within the current drill pattern shape and there are indications that it has a potential of leading to a large structural system. The screen fire assays from the breccia zone included 8m @ 27.46g/t gold from 425m downhole.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

A 603km airborne geophysical survey was flown over 9 tenements in the Burtville area, providing data to allow the team to identify potential sulphide mineralised zones and 3D modelling for regional drill targeting. A separate, 2km[2] , Sub-Audio Magnetic ground survey covered the Karridale Project and its extensions to map detailed structure to resolve controls on the project and nearby mineralised zones.

In addition, Focus commenced an air core drilling programme on a number of secondary targets in the region. At the time of this report, Focus has completed the programme with 7,313m drilled.

Corporate

For the half year period, the Company incurred a loss of $1.108 million and a net cash outflow of $6.185 million[1] . As at 30 June 2015, the Company has a net assets of $105.538 million with a cash balance of $79.929 million[2] .

Focus Minerals managed to identify further savings during the period. By examining previous accounting records, the Company successfully claimed $1.723 million from the ATO in relations to unclaimed R&D tax offsets, fuel tax credits and GST on imported goods, dating back to the financial year ended 30 June 2008.

The Company also completed the 1 for 50 share consolidation, as a result, the volatility of the shares has fallen significantly.

Auditor’s Independence Declaration

The declaration required under Section 307C of the Corporations Act 2001 is set out on Page 6.

Rounding of Amounts

The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of amounts in the Directors’ Report. Amounts in the Directors’ Report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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

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Jisheng Lu Chairman of the Board 3 September 2015 Jinan, Shandong, China

1 Including an increase in short-term deposit of $1.209m, which is treated as cash outflow. 2 Including cash and cash equivalents, short-term deposit and restricted cash.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Auditor’s Independence Declaration

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 30 JUNE 2015

FOR THE HALF YEAR ENDED 30 JUNE 2015
	Consolidated
	6 months to 6 months to
	30 June 30 June
Notes	2015 2014
	$’000 $’000
Revenue from continuing operations 3(a)	- 93
Other Income 3(b)	3,144 2,278
Employee expenses	(700) (1,482)
Depreciation and Amortisation Expenses	(677) (1,206)
Finance Costs	(470) (227)
Impairment expense	- (6,120)
Loss on disposal of tenements and plant and equipment	(148) (1,765)
Care and Maintenance Costs	(979) (1,585)
Corporate and Other Expenses	(1,278) (1,542)
Loss Before Income Tax	(1,108) (11,556)
Income Tax Expense	- -
Loss After Income Tax for the Period	(1,108) (11,556)
Other Comprehensive Income for the Period, Net of Tax	- -
Total Comprehensive Loss for the Period	(1,108) (11,556)
Total Comprehensive Loss Attributable to:
Owners of the Parent	(1,108) (11,556)
Total Comprehensive Loss for the Period	(1,108) (11,556)
Earnings per Share	(Restated)
Basic Loss per Share (Cents Per Share) 4	(0.61) (6.32)
Diluted Loss per Share (Cents Per Share) 4	(0.61) (6.32)

The accompanying notes form part of these financial statements.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

AS AT 30 JUNE 2015
	Consolidated
	30 June 31 December
Notes	2015 2014
	$’000 $’000
Assets
Current Assets
Cash and Cash Equivalents 5	3,025 9,210
Short-term deposit 5	60,279 56,572
Restricted Cash	- 132
Trade and Other Receivables	2,004 2,027
Financial Assets	168 247
Total Current Assets	65,476 68,188
Non-Current Assets
Restricted Cash 5	16,625 18,991
Inventories	1,293 1,293
Plant and Equipment 6	4,086 4,719
Exploration and Evaluation Assets 7	45,591 43,261
Total Non-Current Assets	67,595 68,264
Total Assets	133,071 136,452
Liabilities
Current Liabilities
Trade and Other Payables	1,093 1,599
Interest Bearing Liabilities	- 160
Provisions	642 2,492
Total Current Liabilities	1,735 4,251
Non-Current Liabilities
Provisions	25,798 25,554
Total Non-Current Liabilities	25,798 25,554
Total Liabilities	27,533 29,805
Net Assets	105,538 106,647
Equity
Issued Capital 8(a)	427,167 427,167
Reserves	(6,995) (6,995)
Accumulated Losses	(314,633) (313,525)
Total Equity	105,539 106,647

The accompanying notes form part of these financial statements.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2015

	Issued Capital	Accumulated Losses	Reserves	Total
	$’000	$’000	$’000	$’000
Balance as at 31 December 2013	427,167	(313,525)	(6,995)	130,017
Total Comprehensive Income for the period	-	(11,556)	-	(11,556)
Balance as at 30 June 2014	427,167	(301,711)	(6,995)	118,461
Balance as at 31 December 2014	427,167	(313,525)	(6,995)	106,647
Total Comprehensive Income for the period	-	(1,108)	-	(1,108)
Balance as at 30 June 2015	427,167	(314,633)	(6,995)	105,539

The accompanying notes form part of these financial statements.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE HALF YEAR ENDED 30 JUNE 2015

			Consolidated
			6 months to 6 months to
			30 June 30 June
			2015 2014
			’$000 ’$000
Cash Flows from Operating Activities
Receipts from Customers			- 93
Payments to Suppliers and Employees (Including GST)			(4,983) (5,132)
Royalties Paid			(5) (17)
Other Income			1,697 252
Interest Received			1,356 1,488
Bank charges			(100) (227)
Net Cash Outflow from Operating Activities			(2,035) (3,543)
Cash Flows from Investing Activities
Proceeds from Sale of Non-Current Assets			152 511
Acquisition of Plant and Equipment			(43) (3)
Proceeds from sale of financial assets Increase in short-term deposits			- 171
			(3,707) (74,241)
Exploration Expenditure			(3,049) (3,619)
Net Cash Outflow from Investing Activities			(6,647) (77,181)
Cash flows from Financing Activities
Repayment of Interest Bearing Liabilities			- (751)
Net payback from Performance Bonds			2,498 918
Net Cash Inflow from Financing Activities			2,498 167
Net Decrease in Cash and Cash Equivalents			(6,185) (80,557)
Cash and Cash Equivalents at the Beginning of the Period			9,210 81,239
Cash and Cash Equivalents at the Ending of the Period	5		3,025 682

The accompanying notes form part of these financial statements.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Notes to the Consolidated Interim Financial Report for the Half Year Ended 30 June 2015

Note 1: Basis of preparation of half-year report

The interim financial report of Focus Minerals Limited (“the Company”), together with its consolidated reporting entities (“the Group”) for the half-year reporting period ended 30 June 2015 has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 31 December 2014 and any public announcements made by Focus Minerals 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 previous financial year and corresponding interim reporting period, unless otherwise noted below.

(a) Government Grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants relating to costs are deferred and recognised in the profit or loss over the period necessary to match them with the costs that they are intended to compensate. If the assets related to government grants have been fully impaired, amortised or depreciated, the grant received is recorded in the income statement as other income. This accounting policy has been adopted for the first time due to the receipt of a tax refund. Refer Note 3 for further details.

(b) New and amended standards adopted by the Group

A number of new or amended standards became applicable for the current reporting period, however, the Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

(c) Impacts of standards issued but not yet applied by the Group

There are no standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Note 2: Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer.

All of Focus Minerals Limited’s subsidiaries are wholly owned. The Group has three reportable segments, as described below, which are the Group’s strategic business units. The business units are managed separately as they require differing processes and skills. The Chief Executive Officer reviews internal management reports on a monthly basis. Gold produced is sold through agents at spot pricing.

Segment Financial Information for the six months ended 30 June 2015 is presented below:

Revenue from continuing operations Other Income Employee expenses Depreciation and Amortisation Expenses Finance Costs Loss on disposal of tenements and plant and equipment Care and Maintenance Costs Corporate and Other Expenses SEGMENT LOSS BEFORE TAX Income taxes SEGMENT LOSS Current Assets Non-Current Assets - Restricted Cash - Plant and Equipment - Inventory - Exploration and Evaluation Assets TOTAL ASSETS Current Liabilities Non-Current Liabilities TOTAL LIABILITIES NET ASSETS Capital Expenditures	6 months to 30 June 6 months to 30 June 6 months to 30 June 6 months to 30 June 2015 2015 2015 2015 Coolgardie Laverton Corporate Consolidated $’000 $’000 $’000 $’000
	- - - - 286 545 2,313 3,144 (49) (13) (638) (700) (614) - (63) (677) - - (470) (470) (1) (201) 55 (147) (433) (547) - (980) 0 0 (1,278) (1,278)
	(811) (216) (81) (1,108) - - - -
	(811) (216) (81) (1,108)
	423 929 64,123 65,475 705 5,822 10,098 16,625 3,965 - 121 4,086 1,293 - - 1,293 29,619 15,972 - 45,592
	36,005 22,724 74,342 133,071 (470) (455) (809) (1,734) (11,525) (14,260) (13) (25,798)
	(11,995) (14,715) (822) (27,532)
	24,010 8,009 73,520 105,539
	1,658 916 1 2,575

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Segment Financial Information for the six months ended 30 June 2014 is presented below:

Revenue from continuing operations Depreciation and Amortisation Expenses Employee expenses Finance costs Other income Care and Maintenance Costs Impairment expenses Loss on disposal of tenements and plant and equipment Corporate and Other expenses SEGMENT LOSS BEFORE TAX Income taxes SEGMENT LOSS Current Assets Non-Current Assets - Restricted Cash - Plant and Equipment - Mine Properties and Development - Exploration and Evaluation Assets TOTAL ASSETS Current Liabilities Non-Current Liabilities TOTAL LIABILITIES NET ASSETS Capital Expenditures	6 months to 30 June 6 months to 30 June 6 months to 30 June 6 months to 30 June 2014 2014 2014 2014 Coolgardie Laverton Corporate Consolidated $’000 $’000 $’000 $’000
	93 - - 93 (1,127) - (79) (1,206) (220) (13) (1,249) (1,482) - (1) (226) (227) 481 156 1,641 2,278 (396) (1,189) - (1,585) (6,120) - - (6,120) (1,399) (366) - (1,765) (65) (118) (1,359) (1,542)
	(8,753) (1,531) (1,272) (11,556) - - - -
	(8,753) (1,531) (1,272) (11,556)
	3,082 363 76,063 79,508 706 7458 8,962 17,126 8,920 - 243 9,163 750 - - 750 27,247 13,072 - 40,319
	40,705 20,893 85,268 146,866 1,432 1,050 709 3,191 12,853 11,818 543 25,214
	14,285 12,868 1,252 28,405
	26,420 8,025 84,016 118,461
	1,684 1,932 3 3,629

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Note 3: Revenues

(a) Revenue from continuing operations Gold sales Total revenue from continuing operations (b) Other income Sundry income (note) Finance income Interest income Total Other income	Consolidated 6 months to 30 June 6 months to 30 June 2015 $’000 2014 $’000
	- 93
	- 93
	1,744 522 - 21 1,400 1,735
	3,144 2,278

Note:

The sundry income include a tax refund from the Australian Taxation office in relation to previously unclaimed research and development tax offsets, fuel tax credits and GST on imported goods in prior period.

Note 4: Earnings per Share

ote 4: Earnings per Share
Basic earnings per share: Total Basic EPS Diluted earnings per share Total Diluted EPS Basic Earnings per share The earnings used in the calculation of basic earnings per share Weighted average number of ordinary shares for the purposes of basic earnings per share Diluted Earnings per share The earnings used in the calculation of diluted earnings per share Weighted average number of ordinary shares for the purposes of diluted earnings per share	Consolidated 6 months to 30 June 6 months to 30 June 2015 Cents per Share 2014 Cents per Share (Restated)
	(0.61) (6.32) (0.61) (6.32)
	$000 $000 (1,108) (11,556) 182,748,565 182,748,565
	‘$000 ‘$000 (1,108) (11,556)
	182,748,565 182,748,565

In May 2015, Focus Minerals Ltd consolidated 9,137,375,877 fully paid ordinary shares into 182,748,565 on a 1 for 50 basis (refer Note 8). The calculation of basic and diluted earnings per share for six-month ended 30 June 2014 is adjusted retrospectively after the share consolidation.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Note 5: Cash, Cash Equivalents, Short Term Deposits and Restricted Cash

Cash and cash equivalents Short term deposits Current – restricted cash Non- current – restricted cash	Consolidated As at 30 June As at 31 December 2015 $’000 2014 $’000
	3,025 9,210 60,279 56,572 - 132
	63,304 65,914
	16,625 18,991

Cash at bank earns interest at floating rates based on daily deposit rates.

Cash deposits are made for varying periods up to three months, depending on the immediate cash requirements of the Group, and earn interest at the respective commercial short-term deposit rates which is recognised as cash and cash equivalents

Short-term deposits are made longer than three months but shorter than one year.

Performance bonds have been issued by a bank on behalf of the Group in respect of Western Australian mining tenements. The Group has indemnified the bank against any loss arising from the performance bonds and the indemnity is secured against cash deposits. Those are recognised as restricted cash.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Note 6: Plant and Equipment

Non-current At 31 December 2014 Cost or fair value Accumulated depreciation Impairment loss Net book amount 6 months ended June 2015 Opening net book amount Additions Depreciation expense Closing book amount At 30 June 2015 Cost or fair value Accumulated depreciation Impairment loss Net book amount Non-current At 31 December 2013 Cost or fair value Accumulated depreciation Impairment loss Net book amount 6 months ended June 2014 Opening net book amount Reclassifications between Plant and Equipment Balance after adjustment Additions Depreciation expense Disposals Closing book amount At 30 June 2014 Cost or fair value Accumulated depreciation Impairment loss Net book amount	Furniture & fittings ‘$000 Plant & Equipment ‘$000 Mill assets ‘$000 Construction in progress ‘$000 Motor Vehicles ‘$000 Total ‘$000
	2,004 6,834 32,796 8,000 599 50,233 (1,758) (4,448) (17,631) - (424) (24,261) (13) (25) (13,165) (8,000) (50) (21,253)
	233 2,361 2,000 - 125 4,719
	233 2,361 2,000 - 125 4,719 43 - - - - 43 (78) (275) (286) - (37) (676)
	198 2,086 1,714 - 88 4,086
	2,047 6,834 32,796 8,000 599 50,277 (1,836) (4,723) (17,917) - (461) (24,937) (13) (25) (13,165) (8,000) (50) (21,253)
	198 2,086 1,714 - 88 4,086
	Furniture & fittings ‘$000 Plant & Equipment ‘$000 Mill assets ‘$000 Construction in progress ‘$000 Motor Vehicles ‘$000 Total ‘$000
	2,138 16,027 39,811 8,000 551 66,527 (1,500) (6,233) (20,967) - (330) (29,030) - (5,872) (11,510) (8,000) - (25,382)
	638 3,922 7,334 - 221 12,115
	638 3,922 7,334 - 221 12,115 (158) (1,017) 1,070 - 105 -
	480 2,905 8,404 - 326 12,115 3 - - - - 3 (163) (247) (703) - (93) (1,206) (4) (5) (1,675) - (65) (1,749)
	316 2,653 6,026 - 168 9,163
	1,992 13,304 39,225 8,000 624 63,145 (1,663) (4,703) (21,828) - (406) (28,600) (13) (5,948) (11,371) (8,000) (50) (25,382)
	316 2,653 6,026 - 168 9,163

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Note 7: Exploration and Evaluation Assets

Exploration and Evaluation Expenditure: At Cost Less: Accumulated Impairment Net Book Value Movement Summary: Carrying amount at beginning of the period plus – exploration expenditure less – write off of tenements allowed to lapse or dropped Carrying amount at end of the period	Consolidated 6 months to 30 June 6 months to 30 June 2015 $’000 2014 $’000
	152,769 147,497 (107,178) (107,178)
	45,591 40,319
	43,261 37,059 2,530 3,626 (200) (366)
	45,591 40,319

The value of the Group’s interest in exploration expenditure is dependent upon:

• the continuance of the Group’s rights to tenure of the areas of interest;

• the results of future exploration;

• • the recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale; and

• no significant changes in laws and regulations that greatly impact the Group’s ability to maintain tenure.

Note 8: Issued Capital and Reserves

Authorised Capital

The Company does not have an Authorised Capital and there is no par value for ordinary shares.

(a) Ordinary shares

Issued capital As at 31 December 2013, 30 June 2014 and 31 December 2014 Share consolidation As at 30 June 2015	No. of shares $’000 9,137,375,877 427,167 (8,954,627,312) -
	182,748,565 427,167

In May 2015, Focus Minerals Ltd consolidated 9,137,375,877 fully paid ordinary shares into 182,748,565 on a 1 for 50 basis.

Share Issue Details

There were no shares issued during the half year period.

Voting Entitlements

At each shareholder’s meeting each ordinary share is entitled to one vote on the calling of a poll, otherwise each shareholder is entitled to one vote on a show of hands.

(b) Dividends

No dividends have been paid or provided for during the 6 months ended 30 June 2015 (6 months ending 30 June 2014: Nil).

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Note 9: Related Party Disclosure

Transactions with Related Parties

Mr Gerry Fahey is a Director of CSA Global, which provided technical consulting services to the Group. Technical services provided by CSA Global for the period totalled $21,802. (6 months ended 30 June 2014: $52,840).

Note 10: Significant Events after Balance Date

At the date of this report, there are no events that have arisen after balance date that have significantly affected or may significantly affect, the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in the future financial periods.

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Directors’ Declaration

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 7 to 18 are in accordance with the Corporations Act 2001, including:

2. a. Companying with the Accounting Standard AASB 134: Interim Financial Reporting; and

3. b. Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance for the half year ended on that date.

4. In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

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Jisheng Lu Chairman of the Board 3 September 2015 Jinan, Shandong, China

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

Independent Auditor’s Review Report

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Focus Minerals Ltd – Financial Report for the half year ended 30 June 2015

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