G11 RESOURCES LIMITED - Annual Report 2016

Lawson Gold Limited ABN 32 141 804 104

Consolidated Financial Statements

For the Year Ended 30 June 2016

ABN 32 141 804 104

Lawson Gold Limited

For the Year Ended 30 June 2016

	Page
Consolidated Financial Statements
Corporate Information
Review of Operations	1
Directors' Report	4
Auditor's Independence Declaration	11
Consolidated Statement of Profit or Loss and Other Comprehensive Income	12
Consolidated Statement of Financial Position	13
Consolidated Statement of Changes in Equity	14
Consolidated Statement of Cash Flows	15
Notes to the Consolidated Financial Statements	16
Directors' Declaration	38
Independent Audit Report	39
Additional Information for Listed Public Companies	40

ABN 32 141 804 104

Lawson Gold Limited

For the Year Ended 30 June 2016

Corporate Information

Directors

Mr Simon O’Loughlin (Chairman, Non-Executive Director) Mr Peter Reid (Executive Director) Mr Donald Stephens (Non-Executive Director)

Group Secretary

Mr Donald Stephens

Registered Office

169 Fullarton Road DULWICH SA 5065

Principal place of business

169 Fullarton Road DULWICH SA 5065

Share Registry

Computershare Investor Services Pty Ltd Level 5 115 Grenfell Street ADELAIDE SA 5000

Bankers

National Australia Bank 22 – 28 King William Street ADELAIDE SA 5000

Auditors

Grant Thornton Audit Pty Ltd Chartered Accountants Level 1 67 Greenhill Road WAYVILLE SA 5034

Lawson Gold Limited ABN 32 141 804 104

Review of Operations

Corporate Activities

Lawson Gold Limited (Lawson / the Company) continues the minimisation of ongoing expenditure whilst the board assess new business opportunities with high growth potential.

In July 2015, the Company executed a Mining Farm-In and Joint Venture Agreement with Moho Resources NL (Moho). Moho is a new, WA-focused, unlisted nickel, copper and gold exploration company directed by former Western Mining and Alcoa senior management. Moho will acquire equity in and fund exploration of the newly named Silver Swan North Project, comprising Lawson’s Mining Lease M27/263 and Exploration Licence E27/345 located in the world-class Kalgoorlie, nickel and gold mining district (Figure 1).

Moho must spend $1,000,000 over the two licences to earn a 70% equity. It is a staged investment and includes an initial commitment to drill test 2 high priority electromagnetic (EM) targets, prospective for nickel sulphide mineralisation (refer to 30/01/2015 ASX announcement). The project area also includes the Lawson Gold Prospect, which has returned high-grade gold intersections from previous drill testing and warrants further drilling to identify its resource potential (refer to 9/2/11 ASX announcement).

In early August just after the reporting period, Lawson executed an agreement with ASX listed Mithril Resources Limited whereby Mithril can earn a 75% interest in Lawson’s Exploration Licence E27/510 located in the Kagoorlie District (Figure 1), by completing expenditure of $250,000 over 3 years.

Total Company expenditure for the 12 month period was $288,614 and the Company’s cash position is $514,888. The Company remains in a strong position to attract new projects having a tight shareholder base, low expenditure obligations and with a solid cash position. The Board has reviewed several new investment opportunities presented to the Company and this work is ongoing.

Lawson Gold Limited ABN 32 141 804 104

Review of Operations

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Figure 1 : Satellite image showing Lawson’s tenements. Moho JV (red), Mithril JV (green) and surrendered licences (cross-hatched)

Lawson Gold Limited ABN 32 141 804 104

Review of Operations

Project Activities

The Silver Swan North Nickel and Gold Joint Venture Project with Moho Resources encompasses Mining Lease M27/263 and Exploration Licence E27/345 located in the world-class Kalgoorlie, nickel and gold mining district.

Preparations to drill test two Electromagnetic (EM) anomalies, Southeastern 1 and Silver Swan North, for massive nickel sulphide mineralisation (Figure 2, refer to 30/01/2015 ASX announcement) are underway. Further ground electromagnetic (EM) surveying was undertaken at the Silver Swan North target which was previously unconstrained from earlier EM survey work. This survey demonstrated the body is strike limited having a length of approximately 1.2 kilometres and is dipping to the northeast. A work submission program has been lodged with the Western Australian Mines Department to undertake drill testing and arrangements to secure a suitable drilling contractor are in progress. The JV Manager’s Moho Resources, are preparing for an ASX listing for late 2016 and an RC / diamond drilling program to test the EM targets is now planned for early 2017.

In March 2016 the Company surrendered Exploration Licence E27/432 and 4 small surrounding Prospecting Licences P27/2075-P27/2078. The leases which form part of the Silver Swan Project near Kalgoorlie, were surrendered as no high tenor gold or nickel targets had been identified. No other ground exploration activities were undertaken during the period (Figure 1).

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Silver Swan North
Southeastern 1
x [Silver Swan ]
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Figure 2 Silver Swan ground electromagnetic (EM) stations (coloured lines) and location of EM targets to be drill tested shown over a pseudo colour reduced to pole aeromagnetic image.

In August Just after the reporting period, Lawson executed an Agreement with ASX listed Mithril Resources Limited whereby Mithril can earn a 75% interest in Lawson’s Exploration Licence E27/510, by completing expenditure of $250,000 over 3 years. E27/510 will become part of Mithril’s Lignum Dam Project exploration works (Figure 3) which cover a package of gold and nickel prospective Archaean mafic, ultramafic, and felsic rock types directly along strike from the Lindsay’s Gold Mining Centre and the high grade Silver Swan nickel deposit (Refer 3/8/16 Mithril ASX release for detail). Mithril plans to carry out a program of infill auger geochemical sampling followed by RAB / Aircore drilling over targets identified. The introduction of a new exploration partner for this project will see active exploration activities occur on this prospective gold lease and ensures Lawson can focus its efforts on acquiring other new projects with high growth potential.

Lawson Gold Limited ABN 32 141 804 104

Review of Operations

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E27/51
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Figure 3: Mithril Resource’s Lignum Dam Project Target Summary Plan and E27/510 tenement location. (Reference: Figure reproduced from Mithril Resources Limited 3/8/16 ASX release)

Competent Persons Statement: The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Peter Reid, who is a Competent Person, and a Member of the Australian Institute of Geoscientists. Mr Reid is an Executive Director and part time contractor to Lawson Gold Ltd. Mr Reid has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Reid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Lawson Gold Limited ABN 32 141 804 104

Directors’ Report

Your Directors submit their report for the year ended 30 June 2016.

This financial report covers Lawson Gold Limited (ABN 32 141 804 104) and its controlled entity. The Company's functional and presentation currency is Australian Dollars.

A description of the Company's operations and of its principal activities is included in the review of operations and activities in the Directors' report.

Directors

The names and details of the Company’s Directors in office at the date of this report are as follows:

Simon O’Loughlin Chairman, NonAppointed 1/7/13 Executive Director Peter Reid Executive Director Appointed 1/7/13 Donald Stephens Non-Executive Director Appointed 1/7/13

Names, qualifications, experience and special responsibilities

Simon O’Loughlin Non-Executive Chairman (BA (Acc))

Simon O'Loughlin is the founding member of O'Loughlin Lawyers, an Adelaide based medium sized specialist commercial law firm. He has obtained extensive experience in the corporate and commercial law fields while practicing in Sydney and Adelaide. Simon also holds accounting qualifications. More recently, he has been focusing on the resources sector. He is currently chairman of Petratherm Ltd and director of Chesser Resources Ltd and WCP Resources Ltd. In the last 3 years he has also been a director of Oncosil Ltd, Aura Energy Ltd, Goldminex Resources Ltd, Kibaran Resources Ltd and Reproductive Health Science Ltd.

Peter Reid

Executive Director (BSc (Hons))

Peter Reid is a professional geologist with 21 years' experience. Peter has strong exploration credentials having worked initially for the Regional Geological Survey of South Australia and later with Minotaur Resources Ltd. This included being involved in the discovery of the world class Prominent Hill Cu-Au deposit that was subsequently sold to Oz Minerals. During this time he generated a portfolio of nickel projects, and aided the spin out of a successful IPO, Mithril Resources Ltd, from Minotaur.

With Minotaur's support he went on to researching Australia's engineered geothermal energy potential, working closely with the University of Adelaide. The result of this work led to formation of Petratherm Ltd, a specialist engineered geothermal explorer and developer, and in July 2004 he led this through to a successful ASX listing as the founding CEO of Petratherm Ltd. With the expansion of the company both in Australia and overseas, the maturation of its flagship project Paralana, he took on the role of exploration manager in 2006 through to 2013.

In 2011 he received the Australian Geothermal Energy's Association's Chairman's Award for his services to the Australian Geothermal Industry and he is the current Chairman of the Australia Geothermal Report Code.

Lawson Gold Limited ABN 32 141 804 104

Directors’ Report (Cont.)

Donald Stephens

Non-Executive Director/Company Secretary (BA(Acc), FCA)

Donald Stephens is a Chartered Accountant and corporate adviser with over 30 years experience in the accounting industry, including 14 years as a partner of HLB Mann Judd (SA), a firm of Chartered Accountants. He is a director of Petratherm Ltd, Gooroo Ventures Ltd and Mithril Resources Ltd and is company secretary to Highfield Resources Ltd, Duxton Water Ltd and Petratherm Ltd. In the last 3 years he has been a Director of Papyrus Australia Limited, Crest Minerals Limited and Reproductive Health Science Ltd.

He holds other public company secretarial positions and directorships with private companies and provides corporate advisory services to a wide range of organisations. He is also the company secretary and is a member of the Company’s audit committee.

INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES CORPORATE

As at the date of this report, the interests of the Directors in the shares and options of Lawson Gold Limited were:

	Number of Ordinary Shares Number of Options over Ordinary Shares
Simon O'Loughlin Peter Reid Donald Stephens Total	1,287,076 - - - - -
	1,287,076 -

CORPORATE GOVERNANCE STATEMENT

Please refer to the Company’s website www.lawsongold.com for the Corporate Governance Statement.

DIVIDENDS

No dividends were paid or declared since the start of the year. No recommendation for payment of dividends has been made.

PRINCIPAL ACTIVITIES

The principal activities of the Company during the year were:

To continue to conduct mineral exploration on the Western Australian tenements held and to expand the ground position through the acquisition of further exploration licences in the area.
To extend the search for available exploration licences which, through direct or indirect investment, will provide the potential for discovery and development of commercial deposits of gold and other metals.

OPERATING RESULTS

The loss of the Company for the year after providing for income tax amounted to $323,064 (period ended 30 June 2015: $219,856).

OPERATIONS OVERVIEW

Please refer to the review of operations contained at the front of this report.

RISK MANAGEMENT

The Company takes a proactive approach to risk management. The Board is responsible for ensuring that risks are identified on a timely basis and that the opportunities align with the Company's objectives and activities.

The Company has not established a separate risk management committee.

Lawson Gold Limited ABN 32 141 804 104

Directors’ Report (Cont.)

The Board has a number of mechanisms in place to ensure that management's objectives and activities are aligned with the risks identified by the Board. These include implementation of Board approved operating plans and budgets and Board monitoring of progress against these budgets.

AFTER BALANCE DATE EVENTS

On 4 August 2016, the Company announced it had entered into a Mining Farm-In and Joint Venture Agreement with Mithril (“Mithril”) Resources Limited, whereby Mithril can earn a 75% interest in the Company’s Exploration Licence EL27/510, by completing expenditure of $250,000 over 3 years.

The terms of the agreement are as follows:

Mithril may acquire a 75% interest in the E27/510 by spending a total of $250,000 on exploration within three years at which point the joint venture is formed.
Once Mithril have earnt their 75%, the Company can then elect to contribute to joint venture costs in accordance with its participating interest or dilute via a standard industry dilution formula.
If a party’s participating interest dilutes to less than 10%, that party will be deemed to have withdrawn from the joint venture and will be entitled to receive a 1.5% Net Smelter Royalty on all minerals.
Mithril is required to keep E27/510 in good standing at all times and can only withdraw from the Agreement with 30 days’ notice provided the tenement is in good standing.

Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

No significant changes in the state of affairs.

LIKELY DEVELOPMENTS

The Group expects to maintain the present status and level of operations and therefore there are no likely developments in the Group’s operations.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Company’s current environmental obligations are regulated under both Western Australian State and Federal Law. The Company is committed to conduct its activities with high standards of care for the natural environment. The Company will apply the most appropriate standards to each activity and communicate with employees, contractors and communities about environmental objectives and responsibilities. No environmental breaches have been notified by any Government agency during the year ended 30 June 2016.

OCCUPATIONAL HEALTH, SAFETY AND WELFARE

In running its business, the Company aims to protect the health, safety and welfare of employees, contractors and guests. In the reporting period the Company experienced no lost time injuries. The Company reviews its Occupational Health, Safety and Welfare (OHS&W) policy at regular intervals to ensure a high standard of OHS&W.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

Throughout the year, the Company has had in place and paid premiums for insurance policies with a limit of liability of $5 million, indemnifying each Director and the secretary of the Company. The liabilities insured include costs and expenses that may be incurred in defending civil or criminal proceedings (that may be brought) against the officers in their capacity as officers of the Company or a related body, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a willful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the Company. The contracts of insurance contain confidentiality provisions that preclude disclosure of premium paid.

Lawson Gold Limited ABN 32 141 804 104

Directors’ Report (Cont.)

SHARE OPTIONS

Unissued Shares

At the date of this report, the following options to acquire ordinary shares in the Company were on issue:

Issue Date Expiry Date Exercise Price	Balance at 1 July 2015	Net Issued/ (Exercised/Lapsed) during Year	Balance at date of this report
05/08/2010 04/08/2015 $0.30 05/08/2010 04/08/2015 $0.40	300,000 600,000 900,000	(300,000) (600,000) (900,000)	- - -

There are no share options as at the date of this report.

DIRECTORS’ MEETINGS

The number of meetings of Directors held during the year and the number of meetings attended by each Director was as follows:

	Directors'	Audit Committee
	Meetings	Meetings
Number of meetings
held	3	2
	Directors' Meetings		Audit Committee	Meetings
	Number
	eligible to		Number eligible	Number
	attend	Number attended	to attend	attended
Mr Simon O'Loughlin	3	3	2	2
Mr Peter Reid	3	3	-	-
Mr Donald Stephens	3	3	2	2
The Company has an audit	committee consisting of the following key personnel:
Simon O’Loughlin	Non-Executive Chairman
Peter Reid	Executive Director
Donald Stephens	Non-Executive Director/Company Secretary

VOTING AND COMMENTS MADE AT THE COMPANY’S 2015 ANNUAL GENERAL MEETING

Lawson Gold Limited received more than 97.45% of “yes” votes on its remuneration report for the 2015 financial year. The Company did not receive specific feedback on its remuneration report at the AGM.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.

The Company was not a party to any such proceedings during the year.

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

Grant Thornton Audit Pty Ltd, in its capacity as auditor for the Company, has not provided any non-audit services throughout the reporting period. The auditor’s independence declaration for the year ended 30 June 2016 has been received and can be found on page11.

Lawson Gold Limited ABN 32 141 804 104

Directors’ Report (Cont.)

REMUNERATION REPORT (AUDITED)

This report outlines the remuneration arrangements in place for Directors and other Key Management Personnel of the Company.

The remuneration and entitlement information, required to be disclosed by the Corporations Act, is provided below.

Key Management Remuneration Policy

The Board is responsible for determining remuneration policies applicable to Directors and senior executives of the Company. The policy is to ensure that remuneration properly reflects the individuals' duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people with appropriate skills and experience. At the time of determining remuneration consideration is given by the Board to the Company's financial performance.

The maximum aggregate annual remuneration which may be paid to Non-Executive Directors is currently $250,000. This cannot be increased without approval of the Company's shareholders.

Key Management Personnel remuneration and equity holdings

The Board currently determines the nature and amount of remuneration for Key Management Personnel of the Company. The policy is to align Director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific long-term incentives based on key performance areas affecting the Company’s financial results.

All remuneration paid to Key Management Personnel is expensed as incurred. Key Management Personnel receive a superannuation guarantee contribution required by the government, which is currently 9.5% (2015: 9.5%), and do not receive any other retirement benefits. Some individuals, however, may choose to sacrifice part of their salary to increase payments towards superannuation.

Options are valued using the Black-Scholes methodology and are recognised as remuneration over the vesting period.

The Board policy is to remunerate Non-Executive Directors at market rates based on comparable companies for time, commitment and responsibilities. The Board determines payments to NonExecutive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required.

Options issued as part of remuneration

No options were issued to, or are held by, Key Management Personnel during the year.

Key Management Personnel Shareholdings

30 June 2015	Balance at	Net Change	Balance 30
	start of year	Other	June 2016
S O'Loughlin*	1,287,076	-	1,287,076
P Reid*	-	-	-
D Stephens	-	-	-
Total	1,287,076	-	1,287,076

Held by Directors and entities in which Directors have a relevant interest.

Lawson Gold Limited ABN 32 141 804 104

Directors’ Report (Cont.)

Key Management Personnel remuneration for the year ended 30 June 2016

	Short Term Benefits	Post-Employment	Share-based Payments	Total
	Salary, Fees & Bonuses	Superannuation	Value of Options	$
Simon O'Loughlin(1) 2016 2015	35,000 35,000	3,325 3,325	- -	38,325 38,325
Peter Reid(2) 2016 2015	27,312 27,312	- -	- -	27,312 27,312
Donald Stephens 2016 2015	27,312 27,312	- -	- -	27,312 27,312
Total 2016 2015	89,624 89,624	3,325 3,325	- -	92,949 92,949

Key Management Personnel in the above table include Directors and specified executives.

(1) O'Loughlin's Lawyers, of which Simon O'Loughlin is a partner, received professional service fees of $6,762 (2015: $15,632) during the year ended 30 June 2016.

(2) Geovise Pty Ltd, of which Peter Reid is a Director, received consulting fees of $7,118 (2015: $10,723) during the year ended 30 June 2016.

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

Simon O’Loughlin Non-Executive Chairman

Dated this 28[th] day of September

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Level 1, 67 Greenhill Rd Wayville SA 5034

Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF LAWSON GOLD LIMITED

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Lawson Gold Limited for the year ended 30 June 2016, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

J L Humphrey Partner - Audit & Assurance Adelaide, 28 September 2016

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

ABN 32 141 804 104

Lawson Gold Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2016

Note Interest revenue 5(a) Impairment of non-current assets 12 Employee benefits expense 5(b) Depreciation and amortisation expense Accounting and group secretarial fees Other expenses 5(b) Loss before income tax expense Income tax expense 6 Loss attributable to members of the entity Other comprehensive income for the year, net of tax Total comprehensive income for the year Loss per share Basic earnings per share (cents) 7 Diluted earnings per share (cents) 7	2016 $ 16,953 (107,997) (92,437) (256) (73,039) (66,288)	2015 $ 23,423 - (97,836) (2,330) (74,702) (68,411)
	(323,064) -	(219,856) -
	(323,064)	(219,856)
	-	-
	(323,064)	(219,856)
	(0.65) (0.47) (0.65) (0.47)

The accompanying notes form part of these financial statements.

ABN 32 141 804 104

Lawson Gold Limited

Consolidated Statement of Financial Position

As At 30 June 2016

Note ASSETS CURRENT ASSETS Cash and cash equivalents 8 Trade and other receivables 9 Other assets 10 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment 11 Exploration and evaluation assets 12 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables 13 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 14 Reserves 15 Accumulated losses TOTAL EQUITY	2016 $ 514,888 4,762 628	2015 $ 803,502 9,485 776
	520,278	813,763
	- 649,504	255 735,116
	649,504	735,371
	1,169,782	1,549,134
	29,790	86,078
	29,790	86,078
	29,790	86,078
	1,139,992	1,463,056

	5,304,513 - (4,164,521)	5,304,513 139,500 (3,980,957)
	1,139,992	1,463,056

The accompanying notes form part of these financial statements.

ABN 32 141 804 104

Lawson Gold Limited

Consolidated Statement of Changes in Equity For the Year Ended 30 June 2016

2016
		Ordinary		Accumulated	Share Option
		Shares		Losses	Reserve	Total
	Note	$		$	$	$
Balance at 1 July 2015	14, 15	5,304,513		(3,980,957)	139,500	1,463,056
Net profit/(loss) for the year			-	(323,064)	-	(323,064)
Transactions with owners in their
capacity as owners
Transfer to retained earnings from share
option reserve	15		-	139,500	(139,500)	-
Balance at 30 June 2016	14, 15	5,304,513		(4,164,521)	-	1,139,992
2015
		Ordinary		Accumulated	Share Option
		Shares		Losses	Reserve	Total
	Note	$		$	$	$
Balance at 1 July 2014	14, 15	4,641,622		(3,761,101)	139,500	1,020,021
Net profit/(loss) for the year			-	(219,856)	-	(219,856)
Transactions with owners in their
capacity as owners
Issue of shares	14	745,477		-	-	745,477
Transaction costs		(82,586)		-	-	(82,586)
Balance at 30 June 2015	14, 15	5,304,513		(3,980,957)	139,500	1,463,056

The accompanying notes form part of these financial statements.

ABN 32 141 804 104

Lawson Gold Limited

Consolidated Statement of Cash Flows

For the Year Ended 30 June 2016

Note CASH FLOWS FROM OPERATING ACTIVITIES: Payments to suppliers and key management personnel Interest received Net cash provided by (used in) operating activities 16 CASH FLOWS FROM INVESTING ACTIVITIES: Payments for exploration activities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issue of shares Payment of transaction costs Net cash used by financing activities Net increase (decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of year Cash and cash equivalents at end of financial year 8(a)	2016 $ (285,770) 19,540	2015 $ (229,359) 19,996
	(266,230)	(209,363)
	(22,384) (91,249)
	(22,384)	(91,249)
	- 746,790 - (83,899)
	-	662,891

	(288,614) 803,502	362,279 441,223
	514,888	803,502

The accompanying notes form part of these financial statements.

ABN 32 141 804 104

Lawson Gold Limited

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

The financial report covers the consolidated financial statements and notes of Lawson Gold Limited and its controlled entity ("the Group"). Lawson Gold Limited is a listed public Group, incorporated and domiciled in Australia.

The functional and presentation currency of the Group is Australian dollars. The Company and its Controlled Entities are for-profit entities for the purpose of preparing the financial statements.

The financial report was authorised for issue by the Directors on 29 September 201.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 .

These financial statements and associated notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The financial statements, except for the cash flow information, 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.

Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated.

2 Summary of Significant Accounting Policies

(a) Principles of Consolidation

The financial statements include the financial position and performance of controlled entities from the date on which control is obtained until the date that control is lost.

Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entities in the consolidated entity have been eliminated in full for the purpose of these financial statements.

Appropriate adjustments have been made to a controlled entity’s financial position, performance and cash flows where the accounting policies used by that entity were different from those adopted by the consolidated entity. All controlled entities have a June financial year end.

A list of controlled entities is contained in Note 20 to the financial statements.

Subsidiaries

Subsidiaries are all entities (including structured entities) over which the parent has control. Control is established when the parent is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(b) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Group and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

All revenue is stated net of the amount of goods and services tax (GST).

Interest revenue

Interest is recognised using the effective interest method.

(c) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset.

All other borrowing costs are recognised as an expense in the period in which they are incurred.

(d) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Bank overdrafts also form part of cash equivalents for the purpose of the consolidated statement of cash flows and are presented within current liabilities on the consolidated statement of financial position.

(e) Trade and other receivables

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 2(i) for further discussion on the determination of impairment losses.

(f) Income Tax

The tax expense recognised in the consolidated statement of profit or loss and other comprehensive income comprises of current income tax expense plus deferred tax expense.

Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (loss) for the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

ABN 32 141 804 104

Lawson Gold Limited

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(f) Income Tax (continued)

Deferred tax is not provided for the following:

! The initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
! Taxable temporary differences arising on the initial recognition of goodwill.
! Temporary differences related to investment in subsidiaries, associates and jointly controlled entities to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and losses can be utilised.

Current and deferred tax is recognised as income or an expense and included in profit or loss for the period except where the tax arises from a transaction which is recognised in other comprehensive income or equity, in which case the tax is recognised in other comprehensive income or equity respectively.

(g) Goods and Services Tax (GST)

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

Receivables and payables are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the consolidated statement of financial position.

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

(h) Plant and Equipment

Each class of plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment.

Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(h) Plant and Equipment (continued)

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Group, commencing when the asset is ready for use.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life.

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate Plant and Equipment 13 - 50%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income.

(i) Impairment of non-financial assets

At the end of each reporting period the Group determines whether there is any evidence of impairment for its non-financial assets.

Where this indicator exists and regardless for indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cashgenerating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cashgenerating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss.

(j) Exploration and development expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through 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. As the asset is not available for use it is not depreciated or amortised.

Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the period in

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(j) Exploration and development expenditure (continued)

which the decision to abandon that area is made.

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

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. When provisions for closure and rehabilitation are initially recognised, the corresponding cost is capitalised as an asset representing part of the cost of acquiring the future economic benefits of the operation. The capitalised cost of closure and rehabilitation activities is recognised in property, plant and equipment and depreciated accordingly. The value of the provision is progressively increased over time as the effect of discounting unwinds, creating an expense which is recognised in finance costs. 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 clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology discounted to their present value.

Any changes in the estimates for the costs are accounted on a prospective basis in the consolidated statement of profit or loss and other comprehensive income. In determining the costs of site restoration, there is an 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 restoration will be completed within one year of abandoning the site.

(k) Trade and other payables

Trade and other payables represent the liabilities for goods and services received by the Group 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.

(l) Equity-settled compensation

The Group provided benefits to Directors of the Group in the form of share-based payments, whereby Directors received options (equity-settled transactions) as compensation for work prior to listing.

The cost of these equity-settled transactions with Directors is measured by reference to the fair value at the date at which they were granted. Share-based payments to non-employees are measured at the fair value of the equity instruments issued. The fair value is determined using the Black-Scholes option pricing model.

The cost of equity-settled transactions is recognised as an expense in the consolidated statement of profit or loss and other comprehensive income, together with a corresponding increase in the share option reserve, when the options are issued.

Upon the exercise of options, the balance of share based payments reserve relating to those options is transferred to issued capital.

(m)Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(n) Earnings per share

Lawson Gold Limited presents basic and diluted earnings per share information for its ordinary shares.

Basic earnings per share is calculated by dividing the profit attributable to owners of the Group by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share adjusts the basic earnings 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 additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

In accordance with AASB 133 ‘Earnings per Share’, as potential ordinary shares may only result in a situation where their conversion results in an increase in loss per share or decrease in profit per share from continuing operations, no dilutive effect has been taken into account in 2016 and 2015.

(o) Adoption of new and revised accounting standards

The Group has adopted all standards which became effective for the first time at 30 June 2016, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the Group.

A number of new and revised standards became effective for the first time to annual periods beginning on or after 1 July 2015. Information on the more significant standard(s) is presented below.

AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent

AASB 2015-4 amends AASB 128 Investments in Associates and Joint Ventures to ensure that its reporting requirements on Australian groups with a foreign parent align with those currently available in AASB 10 Consolidated Financial Statements for such groups. AASB 128 will now only require the ultimate Australian entity to apply the equity method in accounting for interests in associates and joint ventures, if either the entity or the group is a reporting entity, or both the entity and group are reporting entities.

AASB 2015-4 is applicable to annual reporting periods beginning on or after 1 July 2015.

The adoption of this amendment has not had a material impact on the Group.

(p) New Accounting Standards and Interpretations

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Group has decided not to early adopt these Standards. The following table summarises those future requirements, and their impact on the Group where the standard is relevant:

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(p) New Accounting Standards and Interpretations (continued)

Effective date for Standard Name Group Requirements B 1057 Application of Annual In May 2015, the AASB decided to revise Australian Australian Accounting reporting Accounting Standards that incorporate IFRSs to minimise Standards periods Australian-specific wording even further. The AASB beginning on noted that IFRSs do not contain application paragraphs or after 1 that identify the entities and financial reports to which the January 2016 Standards (and Interpretations) apply. As a result, the AASB decided to move the application paragraphs previously contained in each Australian Accounting Standard (or Interpretation), unchanged, into a new Standard AASB 1057 Application of Australian Accounting Standards. AASB 15 Revenue from Annual AASB 15 replaces AASB 118 Revenue, AASB 111 Contracts with Customers reporting Construction Contracts and some revenue-related periods Interpretations: beginning on - establishes a new revenue recognition model or after 1 - changes the basis for deciding whether revenue is to be January 2018 recognised over time or at a point in time - provides new and more detailed guidance on specific topics (e.g. multiple element arrangements, variable pricing, rights of return, warranties and licensing) - expands and improves disclosures about revenue

In May 2015, the AASB issued ED 260 Income of Not-forProfit Entities, proposing to replace the income recognition requirements of AASB 1004 Contributions and provide guidance to assist not-for-profit entities to apply the principles of AASB 15. The ED was open for comment until 14 August 2015 and the AASB is currently in the process of redeliberating its proposals with the aim of releasing the final amendments in late 2016.

Impact

When this Standard is first adopted for the year ending 30 June 2017, there will be no impact on the financial statements.

The Group is yet to undertake a detailed assessment of the impact of AASB 15. However, based on the Group’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019.

ABN 32 141 804 104

Lawson Gold Limited

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(p) New Accounting Standards and Interpretations (continued)

	Effective
	date for
Standard Name	Group	Requirements
AASB 16 Leases	Annual	AASB 16:
	reporting	- replaces AASB 117 Leases and some lease-related
	periods	Interpretations
	beginning on	- requires all leases to be accounted for ‘on-balance
	or after 1	sheet’ by lessees, other than short-term and low value
	January 2019	asset leases
		- provides new guidance on the application of the
		definition of lease and on sale and lease back accounting
		- largely retains the existing lessor accounting
		requirements in AASB 117
		- requires new and different disclosures about leases

Impact

Standard Name	Effective date for Group	Requirements	Requirements
AASB 16 Leases	Annual reporting periods beginning on or after 1 January 2019	AASB 16: - replaces AASB 117 Leases and some lease-related Interpretations - requires all leases to be accounted for ‘on-balance sheet’ by lessees, other than short-term and low value asset leases - provides new guidance on the application of the definition of lease and on sale and lease back accounting - largely retains the existing lessor accounting requirements in AASB 117 - requires new and different disclosures about leases	The Group is yet to undertake a detailed assessment of the impact of AASB 16. However, based on the Group’s preliminary assessment, the likely impact on the first time adoption of the Standard for the year ending 30 June 2020 includes: - there will be a significant increase in lease assets and financial liabilities recognised on the statement of financial position - the reported equity will reduce as the carrying amount of lease assets will reduce more quickly than the carrying amount of lease liabilities - EBIT in the statement of profit or loss and other comprehensive income will be higher as the implicit interest in lease payments for former off balance sheet leases will be presented as part of finance costs rather than being included in operating expenses - operating cash outflows will be lower and financing cash flows will be higher in the statement of cash flows as principal repayments on all lease liabilities will now be included in financing activities rather than operating activities. Interest can also be included within financing activities. When these amendments become effective for the first time for the year ending 30 June 2017, they will not have any impact on the Group. Refer to the section on AASB 15 above. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.
AASB 2014-1 Amendments to Australian Accounting Standards (Part D: Consequential Amendments arising from AASB 14) AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012- 2014 Cycle	Annual reporting periods beginning on or after 1 January 2016 Annual reporting periods beginning on or after 1 January 2018 Annual reporting periods beginning on or after 1 January 2016	Part D of AASB 2014-1 makes consequential amendments arising from the issuance of AASB 14. AASB 2014-5 incorporates the consequential amendments arising from the issuance of AASB 15. These amendments arise from the issuance of Annual Improvements to IFRSs 2012-2014 Cycle in September 2014 by the IASB. Among other improvements, the amendments clarify that when an entity reclassifies an asset (or disposal group) directly from being held for sale to being held for distribution (or vice-versa), the accounting guidance in paragraphs 27-29 of AASB 5 Non-current Assets Held for Sale and Discontinued Operations does not apply. The amendments also state that when an entity determines that the asset (or disposal group) is no longer available for immediate distribution or that the distribution is no longer highly probable, it should cease held-for- distribution accounting and apply the guidance in paragraphs 27-29 of AASB 5.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

2 Summary of Significant Accounting Policies (continued)

(p) New Accounting Standards and Interpretations (continued)

Standard Name AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 AASB 2015-8 Amendments to Australian Accounting Standards – Effective Date of AASB 15 Clarifications to IFRS 15 Revenue from Contracts with Customers	Effective date for Group Annual reporting periods beginning on or after 1 January 2016 Annual reporting periods beginning on or after 1 January 2017 Annual reporting periods beginning on or after 1 January 2018	Requirements The Standard makes amendments to AASB 101 Presentation of Financial Statements arising from the IASB’s Disclosure Initiative project. The amendments: - clarify the materiality requirements in AASB 101, including an emphasis on the potentially detrimental effect of obscuring useful information with immaterial information - clarify that AASB 101’s specified line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position can be disaggregated - add requirements for how an entity should present subtotals in the statement(s) of profit and loss and other comprehensive income and the statement of financial position - clarify that entities have flexibility as to the order in which they present the notes, but also emphasise that understandability and comparability should be considered by an entity when deciding that order - remove potentially unhelpful guidance in AASB 101 for identifying a significant accounting policy AASB 2015-8 amends the mandatory application date of AASB 15 Revenue from Contracts with Customers so that AASB 15 is required to be applied for annual reporting periods beginning on or after 1 January 2018 instead of 1 January 2017. It also defers the consequential amendments that were originally set out in AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15. The amendments clarify the application of IFRS 15 in three (3) specific areas to reduce the extent of diversity in practice that might otherwise result from differing views on how to implement the requirements of the new standard. They will help companies: 1. Identify performance obligations (by clarifying how to apply the concept of ‘distinct’); 2. Determine whether a company is a principal or an agent in a transaction (by clarifying how to apply the control principle); 3. Determine whether a licence transfers to a customer at a point in time or over time (by clarifying when a company’s activities significantly affect the intellectual property to which the customer has rights). The amendments also create two (2) additional practical expedients available for use when implementing IFRS 15: 1. For contracts that have been modified before the beginning of the earliest period presented, the amendments allow companies to use hindsight when identifying the performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. 2. Companies applying the full retrospective method are permitted to ignore contracts already complete at the beginning of the earliest period presented. The AASB is expected to publish the equivalent Australian amendments in quarter 2 of 2016.	Impact When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements. Refer to the section on AASB 15 above. The Group is yet to undertake a detailed assessment of the impact of AASB 15. However, based on the Group’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

3 Critical Accounting Estimates and Judgements

The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Key estimates - impairment

The Group assesses impairment at the end of each reporting period by evaluating conditions specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

Key judgements - capitalisation of 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.

4 Operating Segments

Segment information

The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the chief operating decision maker (the Board) in allocating resources and has concluded at this time that there are no separately identifiable segments.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

5 Revenue and expenses

(a) Interest revenue

Bank interest received or receivable (b) Expenses Employee Benefit Expenses Directors fees and other remuneration expenses Total employee benefit expenses Other Expenses Legal costs Insurance ASX fees Service agreements Audit fees Other expenses Total other expenses Income Tax Expense Reconciliation of income tax to accounting profit: Prima facie tax payable on profit from ordinary activities before income tax at 30% (2015: 30%) Add: Tax effect of:	2016 $ 16,953	2015 $ 23,423


	92,437	97,836

	92,437	97,836
	3,298 8,555 17,107 - 23,097 14,231	6,508 8,857 23,471 30 25,000 4,545






	66,288	68,411

	(96,919) 33,504 (42,950)	(65,957) 699 (60,755)
- other non-allowable items
- other deductible items
Less: Tax effect of:	(106,365) (106,365)	(126,013) (126,013)
- tax losses not recognised due to not meeting recognition criteria
Income tax expense	-	-

6 Income Tax Expense

The Group has tax losses arising in Australia of $4,580,096 (2015: $4,225,547) that are available indefinitely for offset against future taxable profits of the Group.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

6 Income Tax Expense (continued)

This deferred tax asset will only be obtained if:

! future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised; and
! the conditions for deductibility imposed by tax legislation continue to be complied with; and
! no changes in tax legislation adversely affect the Group in realising the benefit.

7 Earnings/(Loss) per Share

Earnings/(loss) per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings/(loss) per share amounts are calculated by dividing the net loss attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

The following reflects the income and share data used in the basic and diluted earnings per share computations:

(a) Reconciliation of earnings to profit or loss from continuing operations

Net loss attributable to ordinary equity holders of the parent entity Losses used to calculate basic EPS from continuing operations Losses used in the calculation of dilutive EPS from continuing operations (b) Losses used to calculate overall earnings per share Losses used to calculate overall earnings per share	2016 $ (323,064)	2015 $ (219,856)
	(323,064)	(219,856)
	(323,064)	(219,856)
	(323,064) (219,856)


Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS Weighted average number of ordinary shares outstanding during the year used in calculating dilutive EPS		2016 No. 49,786,002	2015 No. 47,240,724
		49,786,002	47,240,724

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

8 Cash and cash equivalents

Cash at bank and in hand	Note	2016 $ 64,888 450,000	2015 $ 245,370 558,132
Short-term bank deposits
Total cash and cash equivalents	8(a)	514,888	803,502

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

The weighted average effective interest rate on short-term bank deposits was 3.01% (2015: 2.71%).

(a) Reconciliation of cash

Cash and Cash equivalents reported in the consolidated statement of cash flows are reconciled to the equivalent items in the consolidated statement of financial position as follows:

Cash and cash equivalents 8 Balance as per consolidated statement of cash flows 9 Trade and other receivables CURRENT Interest receivable GST receivable Total current trade and other receivables	8	514,888	803,502
		514,888	803,502

		840 3,922	3,427 6,058
		4,762	9,485

Receivables are not considered past due or impaired.

10 Other assets CURRENT Prepayments Total current other assets 11 Plant and equipment PLANT AND EQUIPMENT Plant and equipment At cost Accumulated depreciation Total plant and equipment
	628	776
	628	776

	14,987 (14,987)	14,987 (14,732)
	-	255

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

11 Plant and equipment (continued)

(a) Movements in carrying amounts of property, plant and equipment

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current and previous financial years:

Year ended 30 June 2016 Balance at the beginning of year Additions Disposals - written down value Depreciation expense Balance at the end of the year Year ended 30 June 2015 Balance at the beginning of year Depreciation expense Balance at the end of the year Exploration and evaluation assets Exploration and evaluation Total exploration and evaluation assets 2016 Balance at beginning of the year Capitalised exploration costs Exploration costs written off Balance at end of the year 2015 Balance at beginning of the year Capitalised exploration costs Balance at end of the year	Plant and Equipment $ 255 - - (255)	Total $ 255 - - (255)
	-	-
	2,585 (2,330)	2,585 (2,330)
	255	255

	2016 $ 649,504	2015 $ 735,116
	649,504	735,116

	Exploration and evaluation $ 735,116 22,385 (107,997)	Total $ 735,116 22,385 (107,997)
	649,504	649,504
	643,867 91,249	643,867 91,249
	735,116	735,116

12 Exploration and evaluation assets

The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. The recoverable amount of development expenditure is determined as the higher of its fair value less costs to sell and its value in use.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

12 Exploration and evaluation assets (continued)

Exploration and evaluation expenditure has been carried forward to the extent that they are expected to be recouped 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 recovered reserves. Management assessment of carried forward expenditure resulted in relinquishments of $107,997 for the year ended 30 June 2016 (2015: $NIL).

The Group's interest in tenements and unincorporated joint ventures and their carrying values of exploration assets are as follows:

Tenements	Commodity	Carrying Value 2016 $	Carrying Value 2015 $	Carrying Value 2015 $
100% owned tenements	Gold	649,504	735,116
		649,504	735,116
Trade and other payables CURRENT Unsecured liabilities Trade payables Payroll payables Other payables Total current trade and other payables
		2016 $ 8,019 1,952 19,819		2015 $ 45,786 3,010 37,282
		29,790		86,078

Included in payables as at 30 June 2016 is a payables to director-related entities, O'Loughlins Lawyers, of NIL (2015: $3,432) for legal fees.

Also included in payables as at 30 June 2016 is a payable to director-related entity, Geovise Pty Ltd, of $3,114 (2015: $NIL) for consulting fees.

ABN 32 141 804 104

Lawson Gold Limited

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

14 Issued Capital 49,786,002 (2015: 49,786,002) Ordinary shares Total issued capital (a) Ordinary shares At the beginning of the reporting period Shares issued during the year - Fully paid ordinary shares allotted on 28 July 2014 at $0.03 per share - Fully paid ordinary shares issued to Taylor Collison Ltd pursuant to an underwriting agreement for shortfall shares under the non- renounceable rights issue At the end of the reporting period	14 Issued Capital 49,786,002 (2015: 49,786,002) Ordinary shares Total issued capital (a) Ordinary shares At the beginning of the reporting period Shares issued during the year - Fully paid ordinary shares allotted on 28 July 2014 at $0.03 per share - Fully paid ordinary shares issued to Taylor Collison Ltd pursuant to an underwriting agreement for shortfall shares under the non- renounceable rights issue At the end of the reporting period	2016 $ 2015 $ 5,304,513 5,304,513	2016 $ 2015 $ 5,304,513 5,304,513
		5,304,513	5,304,513

		2016 No. 49,786,002 - -	2015 No. 24,893,001 13,433,870 11,459,131


		49,786,002	49,786,002

The holders of ordinary shares are entitled to participate in dividends (in the event when a dividend is declared) and the proceeds on winding up of the parent entity. On a show of hands at meetings of the parent entity, each holder of ordinary shares has one vote in person or by proxy, and upon a poll each share is entitled to one vote.

The Group does not have authorised capital or par value in respect of its shares.

In the event of winding up the Group, ordinary shareholders rank after all creditors and are fully entitled to any net proceeds of liquidation.

(b) Capital Management

The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders.

The capital structure of the Group consists of equity attributable to equity holders, comprising issued capital and reserves as disclosed in Notes 14 and 15 respectively.

Proceeds from share issues are used to maintain and expand the Group’s exploration activities and fund operating costs.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

15 Reserves

Reserves
Share option reserve Balance at beginning of the year Options expensed during the year Balance at end of the year Total reserves	Note 15(a)	2016 $ 139,500 (139,500)	2015 $ 139,500 -
		-	139,500
		-	139,500

(a) Share option reserve

This reserve records items recognised on valuation of share options and other equity settled transactions.

On 4 August 2015, all of the 900,000 unlisted options in the Compny lapsed. Lawson Gold Limited has no options on issue.

16 Cash Flow Information

Reconciliation of result for the year to cashflows from operating activities

Net loss for the year Non-cash flows in profit: - depreciation - impairment of non-current assets Changes in assets and liabilities: - (increase)/decrease in trade and other receivables - (increase)/decrease in prepayments - increase/(decrease) in trade and other payables Cashflow from operations 17 Remuneration of Auditors Remuneration of the auditor of the Group, Grant Thornton Audit Pty Ltd, for: - auditing or reviewing the financial report Total remuneration of auditors	(323,064) 256 107,997 4,723 148 (56,290)	(219,856) 2,330 - (4,396) 449 12,110
	(266,230)	(209,363)

	23,100	25,000
	23,100	25,000

18 Capital and Leasing Commitments

Exploration leases

In order to maintain current rights of tenure to exploration tenements the Group will be required to spend in the year ending 30 June 2017 amounts of approximately $184,300 (2016: $203,900). These obligations are expected to be fulfilled in the normal course of operations.

19 Contingencies

In the opinion of the Directors, the Group did not have any contingencies at 30 June 2016 (30 June 2015: None).

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

20 Interests in Subsidiaries

Interests in Subsidiaries
	Principal place of business / Country of Incorporation Percentage Owned (%) 2016*	Percentage Owned (%) 2015*
Subsidiaries: Punch Resources Ltd	Australia 100	100

*The percentage of ownership interest held is equivalent to the percentage voting rights for all subsidiaries.

21 Financial Risk Management

Categories of financial instruments

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:


Financial Assets Cash and cash equivalents Loans and receivables Total financial assets Financial Liabilities Financial liabilities at amortised cost - Trade and other payables Total financial liabilities	Note 8 9 13	2016 $ 514,888 4,762	2015 $ 803,502 9,485
		519,650	812,987
		29,790	86,078
		29,790	86,078

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group.

The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.

The Group does not have any significant credit risk exposure to any single counterparty or any company or counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Group’s maximum exposure to credit risk.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

21 Financial Risk Management (continued)

Market risk

(i) Cash flow interest rate sensitivity

The Group is exposed to interest rate risk as it holds some bank deposits at floating rates.

The Group's policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term deposits are therefore usually at fixed rates. At the reporting date, the Group is exposed to changes in market interest rates through its bank deposits, which are subject to variable interest rates.

The following table illustrates the sensitivity of the net result for the year and equity to a reasonably possible change in interest rates of +0.50% and -0.50% (2015: +0.50%/-0.50%), with effect from the beginning of the year. These changes are considered to be reasonably possible based on observation of current market conditions.

The calculations are based on the financial instruments held at each reporting date. All other variables are held constant.

	2016		2015
	+0.50%	-0.50%	+0.50%	-0.50%
	$	$	$	$
Cash and cash equivalents
Net loss	2,574	(2,574)	4,017	(4,017)
Equity	2,574	(2,574)	4,017	(4,017)

(ii) Financial instrument composition and maturity analysis

The Group's exposure to interest rate risk, which is the risk that a financial instruments value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

	Weighted Average Effective Interest Rate 2016 % 2015 %	Weighted Average Effective Interest Rate 2016 % 2015 %	Floating Interest Rate Non-interest Bearing Total 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $	Floating Interest Rate Non-interest Bearing Total 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $	Floating Interest Rate Non-interest Bearing Total 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $	Floating Interest Rate Non-interest Bearing Total 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $	Floating Interest Rate Non-interest Bearing Total 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $	Floating Interest Rate Non-interest Bearing Total 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $
Financial Assets: Cash and cash equivalents Trade and other receivables Total Financial Assets Financial Liabilities: Trade and other payables Total Financial Liabilities	3.01 - - -	2.71 - - -	514,888 -	803,502 -	- 4,762	- 9,485	514,888 4,762	803,502 9,485
			514,888	803,502	4,762	9,485	519,650	812,987
			-	-	29,790	86,078	29,790	86,078
			-	-	29,790	86,078	29,790	86,078

The Group is not materially exposed to any effects on changes in interest rates.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

21 Financial Risk Management (continued)

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.

Ultimate responsibility for liquidity risk management rests with the Board which has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves.

The Group‘s liabilities have contractual maturities which are summarised below. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay.

pay.
	Not later than 1 month 1 to 3 months 3 months to 1 year 2016 $ 2015 $ 2016 $ 2015 $ 2016 $ 2015 $
Trade and other payables Total	- - 29,790 86,078 - -
	- - 29,790 86,078 - -

22 Related Parties

Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

The following transactions occurred with related parties:

! O'Loughlin's Lawyers, of which Simon O'Loughlin is a partner, received professional service fees of $6,762 during the year ended 30 June 2016 (2015: $15,632). As at 30 June 2016, $Nil (2015: $3,432) was payable to O'Loughlin's Lawyers.
! Geovise Pty Ltd, of which Peter Reid is a Director, received consulting fees of $7,118 during the year ended 30 June 2016 (2015: $10,723).

For details of Key Management Personnel’s remuneration, interests in shares and options of the Group, refer to Note 23 Key Management Personnel Disclosures.

Lawson Gold Limited ABN 32 141 804 104

Notes to the Consolidated Financial Statements For the Year Ended 30 June 2016

23 Key Management Personnel Disclosures

The totals of remuneration paid to the key management personnel of Lawson Gold Limited during the year are as follows:

Short-term employee benefits Post-employment benefits Total remuneration paid to key management personnel	2016 $ 2015 $ 88,076 89,624 4,156 3,325
	92,232 92,949

The Remuneration Report contained in the Directors' Report contains details of the remuneration paid or payable to each member of Lawson Gold Limited's key management personnel for the year ended 30 June 2016 and their interests in shares and options of the Company.

Other key management personnel transactions

For details of other transactions with key management personnel, refer to Note 22 Related Parties.

24 Parent entity

The following information has been extracted from the books and records of the parent, Lawson Gold Limited and has been prepared in accordance with Accounting Standards.

Statement of Financial Position Assets Current assets Non-current assets Total Assets Liabilities Current liabilities Total Liabilities Net assets Equity Issued capital Accumulated losses Reserves Total Equity Statement of Profit or Loss and Other Comprehensive Income Net profit/(loss) for the year Other comprehensive income Total comprehensive income	2016 $ 520,258 653,124	2015 $ 816,221 735,371
	1,173,382	1,551,592
	29,791	86,078
	29,791	86,078
	1,143,591	1,465,514
	5,304,513 (4,160,922) -	5,304,513 (3,978,499) 139,500
	1,143,591	1,465,514
	(321,925) -	(218,610) -
	(321,925)	(218,610)

The parent entity has not entered into a deed of cross guarantee nor are there any contingent liabilities as at 30 June 2016 or 30 June 2015. The parent entity did not have any commitments as at 30 June 2016 or 30 June 2015.

ABN 32 141 804 104

Lawson Gold Limited

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

25 Events Occurring After the Reporting Date

The terms of the agreement are as follows:

! Mithril may acquire a 75% interest in the E27/510 by spending a total of $250,000 on exploration within three years at which point the joint venture is formed.
! Once Mithril have earnt their 75%, the Company can then elect to contribute to joint venture costs in accordance with its participating interest or dilute via a standard industry dilution formula.
! If a party’s participating interest dilutes to less than 10%, that party will be deemed to have withdrawn from the joint venture and will be entitled to receive a 1.5% Net Smelter Royalty on all minerals.
! Mithril is required to keep E27/510 in good standing at all times and can only withdraw from the Agreement with 30 days’ notice provided the tenement is in good standing.

Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

ABN 32 141 804 104

Lawson Gold Limited

Directors' Declaration

The directors of the Group declare that:

the financial statements and notes for the year ended 30 June 2016 are in accordance with the Corporations Act 2001 and:
a. comply with Accounting Standards, which, as stated in Basis of Preparation 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 and performance of the Group;
the Chairman and Company Secretary have given the declarations required by Section 295A that:
a. the financial records of the Group for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001 ;
b. the financial statements and notes for the financial year comply with the Accounting Standards; and
c. 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 Group will be able to pay its debts as and when they become due and payable.

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

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Director ................................................................................................................................................

Simon O'Loughlin Chairman, Non-Executive Director

28th September Dated this .............................. day of .............................. 2016

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Level 1, 67 Greenhill Rd Wayville SA 5034 Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LAWSON GOLD LIMITED

Report on the financial report

We have audited the accompanying financial report of Lawson Gold Limited (the “Company”), which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001. The Directors’ responsibility also includes such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, the financial statements comply with International Financial Reporting Standards.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

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

Auditor’s opinion

In our opinion:

a the financial report of Lawson Gold Limited is in accordance with the Corporations Act 2001, including:
i giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and
ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements.

Report on the remuneration report

We have audited the remuneration report included in pages 9 to 10 of the directors’ report for the year ended 30 June 2016. The Directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

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Auditor’s opinion on the remuneration report

In our opinion, the remuneration report of Lawson Gold Limited for the year ended 30 June 2016, complies with section 300A of the Corporations Act 2001.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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J L Humphrey Partner - Audit & Assurance Adelaide, 28 September 2016

AI assistant

G11 RESOURCES LIMITED — Annual Report 2016

64956_rns_2016-09-27_f6044212-a771-4110-979a-679c3ecd9587.pdf

Lawson Gold Limited

Contents

For the Year Ended 30 June 2016

Lawson Gold Limited

Contents

For the Year Ended 30 June 2016

Corporate Information

Directors

Group Secretary

Registered Office

Principal place of business

Share Registry

Bankers

Auditors

Review of Operations

Corporate Activities

Review of Operations

Review of Operations

Project Activities

Review of Operations

Directors’ Report

Directors

Names, qualifications, experience and special responsibilities

Simon O’Loughlin Non-Executive Chairman (BA (Acc))

Peter Reid

Executive Director (BSc (Hons))

Directors’ Report (Cont.)

Donald Stephens

Non-Executive Director/Company Secretary (BA(Acc), FCA)

INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES CORPORATE

CORPORATE GOVERNANCE STATEMENT

DIVIDENDS

PRINCIPAL ACTIVITIES

OPERATING RESULTS

OPERATIONS OVERVIEW

RISK MANAGEMENT

Directors’ Report (Cont.)

AFTER BALANCE DATE EVENTS

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

LIKELY DEVELOPMENTS

ENVIRONMENTAL REGULATION AND PERFORMANCE

OCCUPATIONAL HEALTH, SAFETY AND WELFARE

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

Directors’ Report (Cont.)

SHARE OPTIONS

Unissued Shares

DIRECTORS’ MEETINGS

VOTING AND COMMENTS MADE AT THE COMPANY’S 2015 ANNUAL GENERAL MEETING

PROCEEDINGS ON BEHALF OF THE COMPANY

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

Directors’ Report (Cont.)

REMUNERATION REPORT (AUDITED)

Key Management Remuneration Policy

Key Management Personnel remuneration and equity holdings

Options issued as part of remuneration

Key Management Personnel Shareholdings

Directors’ Report (Cont.)

Key Management Personnel remuneration for the year ended 30 June 2016

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF LAWSON GOLD LIMITED

Lawson Gold Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2016

Lawson Gold Limited

Consolidated Statement of Financial Position

As At 30 June 2016

Lawson Gold Limited

Consolidated Statement of Changes in Equity For the Year Ended 30 June 2016

Lawson Gold Limited

Consolidated Statement of Cash Flows

For the Year Ended 30 June 2016

Lawson Gold Limited

Notes to the Consolidated Financial Statements

For the Year Ended 30 June 2016

1 Basis of Preparation

2 Summary of Significant Accounting Policies

(a) Principles of Consolidation

Subsidiaries

Notes to the Consolidated Financial Statements

G11 RESOURCES LIMITED Annual Report 2016