GRANGE RESOURCES LIMITED. — Interim / Quarterly Report 2003

Mar 5, 2003

GRANGE RESOURCES LIMITED

A.B.N. 80 009 132 405

FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2002

Contents:
Directors Report
Directors Declaration	4
Independent Review Report	5

GRANGE RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 80 009 132 405 DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2002

Your directors present their report with respect to the results of Grange Resources Limited. ("the Company") and its controlled entities (the "Consolidated Entity") for the half year ended 31 December 2002 (the "Balance Date") and the state of affairs of the Company and Consolidated Entity at Balance Date.

Grange Resources Limited is a company limited by shares that is incorporated and domiciled in Australia.

1. DIRECTORS

The names of the directors of the Company in office during the financial year and until the date of this report are as follows. Directors were in office for the entire period unless otherwise stated

Mr Anthony Bohnenn (Non-executive Chairman) Mr Adam Rankine-Wilson (Managing Director) Mr Ludger David Kohmascher (resigned 4 February 2003) Mr Alexander Henry Nutter (Technical Director) Mr Hans-Rudolf Moser (Non-executive Director)

2. REVIEW AND RESULTS OF OPERATIONS

The consolidated net operating loss of the Consolidated Entity after providing for income tax amounted to $$1.682.000(2001)$ gain of \$536.000). The result included the following items:

• Mine operating expenses of \$218,000
• Amortisation expenses of \$148,000 $\sim$
• Board and payroll costs of \$446,000 $\mathcal{L}^{\text{max}}$

The Company's activities during the period included:

• The development of the Reward Deeps/Conviction underground copper mine recommenced in June 2002 and continued throughout the period.
• Mine development work focussed on preparation of the Conviction, B Lens and Chimney ore bodies for stoping. By the end of December 2002 production stoping in the upper levels of the Conviction ore body had commenced and stope drilling was underway in B Lens. Ore production for the quarter was 77,000 tonnes the majority of which was development ore. Stoping commenced in the B Lens ore body during January 2003 and in the Chimney ore body during February 2003. Production from the Reward Deeps ore body is scheduled to commence during May 2003.
• The Thalanga concentrator commenced treating development ore from the underground mine in October 2002. During the period 96,269 tonnes of ore grading 5.58% copper were processed through the Thalanga plant for the production of 18,033 tonnes of copper concentrate containing 27,32% copper and 0.8 $g/t$ gold. Copper recovery and concentrate grade steadily increased during the commissioning of the new ore and by the end of December were close to budget.
• Development of the Plutonic East underground mine continued during the period, $\overline{a}$ with small tonnages of development ore being mined.

GRANGE RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 80 009 132 405 DIRECTORS' REPORT (CONTINUED) FOR THE HALF YEAR ENDED 31 DECEMBER 2002

• Placer Dome Asia Pacific confirmed that mining at Red Hill was scheduled to commence during February 2003 at the rate of 1.5 million tonnes per annum, with the ore to be processed through the Paddington mill.
• Rehabilitation of the Highway and Reward waste rock dumps commenced during the December 2002 quarter. At the end of period approximately 70% of the reshaping and 80% of the oxide capping layer had been spread. Preparations for the revegetation of the dumps commenced during the period.
• During the period, the Company completed a selective share buy-back and announced an on-market share buy-back. In the absence of identifying a suitable investment opportunity, the Board of Directors considered the concentration of the number of shares on issue would enhance shareholder value.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS $\overline{\mathbf{3}}$ .

Share capital decreased \$1,474,000 from the last annual report from \$32,447,000 to \$30,973,000 and represents a decrease of 4.5%. Factors contributing to this decrease include:

• The off market buy-back and cancellation of 5.681.682 fully paid ordinary shares each at a price of 11 cents and 26,830,168 preference shares for a total price of \$3.00. The buy-back was performed as part of the Company's efficient capital management strategy.
• The on market buy-back and cancellation of 4,200,181 fully paid ordinary shares at a total cost of \$852.464 as part of the Company's efficient capital management strategy.

$\overline{4}$ . SIGNIFICANT EVENTS AFTER BALANCE DATE

The directors are not aware of any other matters or circumstances at the date of this report, other than those referred to in this report or the consolidated accounts, that have significantly affected or may significantly affect the operations, the results of operations or the state of affairs of the Consolidated Entity in subsequent financial years.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS 5.

The Company expects to return to profitability in the 2002/03 financial year. The calendar year ending December 2003 should see further development of the Reward Deeps/Conviction underground mine with production from the Reward Deeps and Conviction ore bodies well established.

The Company continues to evaluate possible business opportunities for Surfboard Securities Limited regarding further development of the financial services platform. The Company has approached partners that have the resources and expertise to develop the various components of the platform. The Company will exploit any opportunities that may arise to commercialise the platform.

In addition, the Company continues to pursue and evaluate opportunities in the Australian resources sector.

GRANGE RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 80 009 132 405 DIRECTORS' REPORT (CONTINUED) FOR THE HALF YEAR ENDED 31 DECEMBER 2002

SIGNIFICANT EVENTS SINCE THE END OF THE REPORTING PERIOD $6.$

There were no significant events since the end of the reporting period which has a material effect on the financial report.

$7.$ ROUNDING

The amounts contained in this report and in the financial statements have been rounded off under the option available to the Company under ASIC Class Order 98/0100. The Company is an entity to which this class order applies.

Signed for and on behalf of the directors in accordance with a resolution of the board.

ADAM RANKINE-WILSON Managing Director

Dated this 28^th day of February 2003

Perth, Western Australia

GRANGE RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 80 009 132 405 DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Grange Resources Limited, I state that:

• $1¹$ In the opinion of the directors:
• the financial statements and notes of the Company and of the Consolidated $(a)$ Entity are in accordance with the Corporations Act 2001, including:
  • $(i)$ giving a true and fair view of the Company's and Consolidated Entity's financial position as at 31 December 2002 and of their performance for the year ended on that date; and
  • $(ii)$ complying with Accounting Standards and Corporations Regulations $2001$ ; and
• there are reasonable grounds to believe that the Company will be able to pay $(b)$ its debts as and when they become due and payable.

On behalf of the Board.

ADAM RANKINE-WILSON Managing Director

Dated this 28^th day of February 2003

Perth, Western Australia

EII FRNST & YOUNG

E Central Park 152 St Georges Terrace Perth WA 6000 Australia

Tel 61 8 9429 2222 Fax: 63-8-9429-2436

GPO Box M939 Perth WA 6843

INDEPENDENT REVIEW REPORT

To the members of Grange Resources Limited

Scope

We have reviewed the financial report of Grange Resources Limited in the form of Appendix 4B of the Australian Stock Exchange (ASX) Listing Rules, as set out on pages 1 to 18 and the Directors' Declaration for the half-year ended 31 December 2002.

The financial report includes the consolidated financial statements of the consolidated entity comprising Grange Resources Limited and the entities it controlled at the end of the half-year or from time to time during the half-year. The disclosing entity's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia, statutory requirements and ASX Listing Rules as they relate to Appendix 4B, and in order for the company to lodge the financial report with the Australian Securities and Investments Commission and the ASX.

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

Review Statement

As a result of our review, we have not become aware of any matter that makes us believe that the half-year financial report, as defined in the scope section, of Grange Resources Limited is not in accordance with:

• the Corporations Act 2001, including: a)
• giving a true and fair view of the consolidated entity's financial position as at 31 December 2002 and $(i)$ of its performance for the half-year ended on that date; and
• $(ii)$ complying with Accounting Standard AASB 1029 "Interim Financial Reporting", and the Corporations Regulations 2001: and
• $b$ other mandatory professional reporting requirements in Australia and ASX Listing Rules as they relate to Appendix 4B.

Count + Tay

Ernst & Young

$7.74$

V W Tidv Partner Perth Date: 6 March 2003

s:\aa - enterprises\grange\correspondence\0798.doc

Appendix 4B

Half yearly report

Introduced 30/6/2002.

Name of entity
GRANGE RESOURCES LIMITED
Half yearly Preliminary ABN or equivalent company reference final (fick) (tick)	Financial year ended ('current period')
80 009 132 405		31 DECEMBER 2002
For announcement to the market Extracts from this report for announcement to the market (see note 1).				\$A000
Revenues from ordinary activities (item 1.1)	down	97%	ίo	414
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	down	274%	to	(931)
Profit (loss) from extraordinary items after tax attributable to members (item 2.5(d))	gain (loss) of		to
Net profit (loss) for the period attributable to members (item $1.11$ )	down	274%	to	(931)
Dividends (distributions)	Amount per security			Franked amount per security
Final dividend (Preliminary final report only - item 15.4) Interim dividend (Half yearly report only - item 15.6)		Nil ¢		Nil ¢
Previous corresponding period (Preliminary final report - item 15.5; half yearly report - item 15.7)		Nil ¢		Nii ¢
*Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item 15.2)				N/A
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:		N/A

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

Rules 4.1, 4.3

⁺ See chapter 19 for defined terms.

Condensed consolidated statement of financial performance

		Current period - \$A000	Previous corresponding period - \$A000
1.1	Revenues from ordinary activities (see items 1.23 - 1.25	414	12,328
1.2	Expenses from ordinary activities (see items 1.26 & 1.27	(1, 333)	(11, 702)
1.3 1.4	Borrowing costs Share of net profits (losses) of associates and joint venture entities (see item 16.7)	(12)	(90)
1.5	Profit (loss) from ordinary activities before tax	(931)	536
1.6	Income tax on ordinary activities (see note 4)
1.7	Profit (loss) from ordinary activities after tax	(931)	536
1.8	Profit (loss) from extraordinary items after tax (see item (2.5)
1.9	Net profit (loss)	(931)	536
1.10	Net profit (loss) attributable to outside + equity interests
1.11	Net profit (loss) for the period attributable to members	(931)	536
	Non-owner transaction changes in equity
1.12	Increase (decrease) in revaluation reserves
1.13 1.14	Net exchange differences recognised in equity Other revenue, expense and initial adjustments recognised directly in equity (attach details)
1.15	Initial adjustments from UIG transitional provisions
1.16	Total transactions and adjustments recognised directly in equity (items 1.12 to 1.15)
1.17	Total changes in equity not resulting from transactions with owners as owners

Earnings per security (EPS)	Current period	Previous corresponding period
1.18 Basic EPS	(1.20c)	0.63c
Diluted EPS 1.19	(1.20c)	0.63c

⁺ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current period - \$A000	Previous corresponding period - \$A000
1.20	Profit (loss) from ordinary activities after tax (item 1.7)	(931)	536
1.21	Less (plus) outside + equity interests
1.22	Profit (loss) from ordinary activities after tax,
	attributable to members	(931)	536

Revenue and expenses from ordinary activities

(see note 15)

		Current period - \$A000	Previous corresponding period - \$A000
1.23	Revenue from sales or services:
	Sales revenue		12,238
1.24	Interest revenue	244	90
1.25	Other relevant revenue	170
1.26	Details of relevant expenses:
	Cost of sales Mine operating expenditure Administration costs Financial services technology platform costs Devaluation of exploration assets Write down and loss on sale of fixed assets Other expenses from operating activities Total	(218) (861) (106) (1, 185)	(3,678) (1,200) (91) (771) (258) (229) (6, 227)
1.27	Depreciation amortisation and excluding amortisation of intangibles (see item 2.3)	(148)	(5, 475)
1.28 1.29	Capitalised outlays Interest costs capitalised in asset values Outlays capitalised in intangibles (unless arising from an + acquisition of a business)

$+$ See chapter 19 for defined terms.

Consolidated retained profits

		Current period - \$A000	Previous corresponding period - \$A000
1.30	Retained profits (accumulated losses) at the beginning of the financial period	(22.831)	(21, 226)
1,31	Net profit (loss) attributable to members (item 1.11)	(931)	536
1.32	Net transfers from (to) reserves (details if material)
1.33	Net effect of changes in accounting policies
1.34	Dividends and other equity distributions paid or payable
1.35	Retained profits (accumulated losses) at end of financial period	(23, 762)	(20, 690)

Intangible and extraordinary items

		Consolidated - current period
		Before tax \$A000	Related tax \$A000	Related outside + equity interests \$A000	(after Amount tax) attributable to members \$A000
		(a)	(b)	(c)	(d)
2.1	Amortisation of goodwill
$2.2^{\circ}$	Amortisation of other intangibles
2.3	Total amortisation of intangibles
2.4	Extraordinary items (details)
2.5	Total extraordinary items

Comparison of half year profits (Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the 1st half year (item 1.22 in the half yearly report)
• $3.2$ Consolidated profit (loss) from ordinary activities after tax attributable to members for the 2nd half year

Current year - \$A000	Previous year - \$A000
N/A

⁺ See chapter 19 for defined terms.

	Condensed consolidated statement of financial position	At end of current period \$A000	As shown in last annual report	As in last half yearly report
			\$A000	\$A000
	Current assets
4.1	Cash	5,727	12,357	7,270
4.2	Receivables	440	1,423	1,441
4.3	Investments
4.4	Inventories	3,935	351	7,063
4.5	Tax assets
4.6	Other (provide details if material)	47	35	118
4.7	Total current assets	10,149	14,166	15,892
	Non-current assets
4.8	Receivables	309	426	468
4.9	Investments (equity accounted)
4.10 4.11	Other investments Inventories
4.12	Exploration and evaluation expenditure
	capitalised (see para .71 of AASB 1022)	749	696	656
4.13	Development properties ( + mining entities)	3,866	3,784	5,428
4.14 4.15	Other property, plant and equipment (net) Intangibles (net)	284	284	738
4.16	Tax assets
4.17	Other (provide details if material)
4.17a 4.17b	Cash backed security deposit Other	1,577 103
4.18	Total non-current assets	6,888	5,190	7,290
4.19	Total assets	17,037	19,356	23,182
4.20	Current liabilities Payables	1,037	859	2,050
4.21	Interest bearing liabilities
4.22	Tax liabilities
4.23	Provisions exc. tax liabilities	1,275	1,175	1,602
4.24	Other (provide details if material)	47
4.25	Total current liabilities	2,359	2,034	3,652
	Non-current liabilities
4.26	Payables
4.27 4.28	Interest bearing liabilities	1	1	1
4.29	Tax liabilities Provisions exc. tax liabilities	1,489	1,831	1,329
4.30	Other (provide details if material)	103
4.31	Total non-current liabilities	1,593	1,832	1,330
4.32	Total liabilities	3,952	3,866	4,982
4.33	Net assets	13,085	15,490	18,200

⁺ See chapter 19 for defined terms.

Condensed consolidated statement of financial position continued

	Equity
4.34	Capital/contributed equity	30,973	32,447	33,016
4.35	Reserves	5,874	5,874	5,874
4.36	Retained profits (accumulated losses)	(23, 762)	(22, 831)	(20, 690)
4.37	Equity attributable to members of the parent entity	13,085	15,490	18,200
4.38	Outside + equity interests in controlled entities	$\mathbf{r}$	$\mathbf{r}$	$\cdot$
4.39	Total equity	13,085	15,490	18,200
4.40	Preference capital included as part of 4.37

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period \$A000	Previous corresponding period - \$A000
5.1	Opening balance	696	1,298
5.2	Expenditure incurred during current period	53	129
5.3	Expenditure written off during current period	$\mathbf{r}$
5.4	Acquisitions, disposals, revaluation increments, etc.		(771)
5.5	Expenditure transferred to Development Properties
5.6	Closing balance as shown in the consolidated balance sheet ( item 4.12 )	749	656

Development properties

(To be completed only by entities with mining interests if amounts are material)

		Current period \$A000	Previous corresponding
			period - \$A000
6.1	Opening balance	3,784	8,884
6.2	Expenditure incurred during current period	612	2,589
6.3	Expenditure transferred from exploration and evaluation
6.4	Expenditure written off during current period
6.5	Acquisitions, disposals, revaluation increments, etc.
6.6	Expenditure transferred to mine properties	(530)	(6,045)
6.7	Closing balance as shown in the consolidated balance sheet (item 4.13)	3,866	5,428

$+$ See chapter 19 for defined terms.

Condensed consolidated statement of cash flows

		Current period \$A000	Previous corresponding
			period - \$A000
	Cash flows related to operating activities
7.1	Receipts from customers	1,077	12,901
7.2	Payments to suppliers and employees	(4, 342)	(8, 397)
7.3	Dividends received from associates
7.4	Other dividends received	244	88
7.5	Interest and other items of similar nature received
7.6	Interest and other costs of finance paid	(12)	(104)
7.7	Income taxes paid
7.8	Other (provide details if material)
7.9	Net operating cash flows	(3,033)	4,488
	Cash flows related to investing activities
7.10	Payment for purchases of property, plant and equipment		(6)
7.11	Proceeds from sale of property, plant and equipment		8
7.12	Payment for purchases of equity investments
7.13 7.14	Proceeds from sale of equity investments Loans to other entities
7.15	Loans repaid by other entities
7.16	Other (provide details if material)		106
7.16a	Payment for exploration, evaluation and development	(664)	(2,717)
7.16b	Payment of loans to related corporations
7.16c	Payment for security deposit	(1,576)
7.16d	Refund of security deposit	117
7.17	Net investing cash flows	(2, 123)	(2,609)
	Cash flows related to financing activities
7.18	Proceeds from issues of + securities (shares, options, etc.)
7.19	Proceeds from borrowings
7.20 7.21	Repayment of borrowings Dividends paid		(1, 250)
7.22	Other (provide details if material)		(63)
7.22a	Payment for shares bought back	(1, 474)
7.23	Net financing cash flows	(1, 474)	(1, 313)
7.24	Net increase (decrease) in cash held	(6, 630)	566
7.25	Cash at beginning of period (see Reconciliation of cash)	12,357	6,704
7.26	Exchange rate adjustments to item 7.25.
7.27	Cash at end of period (see Reconciliation of cash)	5,727	7,270

⁺ See chapter 19 for defined terms.

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.) Nil

Reconciliation of cash

	Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current period \$A000	Previous corresponding period - \$A000
8.1	Cash on hand and at bank	192	232
8.2	Deposits at call	5,299	6,748
8.3	Bank overdraft
8.4	Other (provide details) – Joint Ventures	236	290
8.5	Total cash at end of period (item 7.27)	5.727	7,270

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary activities before tax (item 1.5) as a percentage of revenue item 1.1)	(225%)	4.35%
9.2	Profit after tax / *equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members (item 1.11) as a percentage of equity (similarly attributable) at the end of the period (item 4.37)	$(7.1\%)$	2.95%

Earnings per security (EPS)

$10.$ Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

Weighted average ordinary shares used in the calculation of the basic and diluted EPS: 76,633,482

NTA backing (see note 7)	Current period	Previous corresponding period
11.1 Net tangible asset backing per + ordinary security	NA	NA

$+$ See chapter 19 for defined terms.

N/A

N/A

N/A

Discontinuing Operations

(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (a) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

Discontinuing Operations $12.1$

There were no significant activities or events relating to discontinuing operations.

Control gained over entities having material effect

• 13.1 Name of entity (or group of entities)
• 13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was ⁺acquired N/A 13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the

Loss of control of entities having material effect

13.3 Date from which such profit has been calculated

Name of entity (or group of entities) $14.1$

previous corresponding period

• $14.2$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control
• $14.3$ Date to which the profit (loss) in item 14.2 has been calculated
• $14.4$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• 14.5 Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

Dividends (in the case of a trust, distributions)

• 15.1 Date the dividend (distribution) is payable
• 15.2 ⁺Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if ⁺securities are not ⁺CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if ⁺securities are ⁺CHESS approved)

N/A

		N/A

⁺ See chapter 19 for defined terms.

15.3 If it is a final dividend, has it been declared? (Preliminary final report only)

N/A

Amount per security

		Amount per security	Franked amount per security at % tax (see note	Amount per security of foreign source dividend
15.4	(Preliminary final report only) Final dividend: Current year
15.5	Previous year
15.6	(Half yearly and preliminary final reports) Interim dividend: Current year
15.7	Previous year

Total dividend (distribution) per security (interim plus final)

(Preliminary final report only)

15.8 ⁺Ordinary securities

Current year	Previous year
$\overline{\phantom{a}}$	₩
$\overline{\phantom{a}}$	₩

15.9 Preference ⁺securities

15.10

15.11

15.12

15.13

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

	Current period \$A000	Previous corresponding period - \$A000
+Ordinary securities (each class separately)
Preference + securities (each class separately)	$\mathbf{r}$
Other equity instruments (each class separately)
Total

The ⁺dividend or distribution plans shown below are in operation.

N/A

The last date(s) for receipt of election notices for the ⁺dividend or distribution plans

N/A

⁺ See chapter 19 for defined terms.

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

N/A

Details of aggregate share of profits (losses) of associates and joint venture entities

Group's share of associates' and joint venture entities':	Current period \$A000	Previous corresponding period - \$A000
Profit (loss) from ordinary activities before tax 16.1
16.2 Income tax on ordinary activities	-
16.3 Profit (loss) from ordinary activities after tax	۰
16.4 Extraordinary items net of tax	-
16.5 Net profit (loss)
16.6 Adjustments	-
16.7 Share of net profit (loss) of associates and joint venture entities

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition ("from dd/mm/yy") or disposal ("to dd/mm/yy").)

	Name of entity Percentage of ownership interest held at end of period or date of disposal			Contribution to net profit (loss) (item 1.9)
17.1	Equity accounted associates and joint venture entities	Current period	Previous corresponding period	Current period \$A000	Previous corresponding period - \$A000
17.2	Total
17.3
17.4	Total

$+$ See chapter 19 for defined terms.

Issued and quoted securities at end of current period
(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

Category of + securities		Total number	Number quoted	Issue price per security (see note (14) (cents)	Amount paid up per security (see note 14) (cents)
18.1	Preference + securities (description)	46,339,663
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions	(26, 830, 168)
18.3	+ Ordinary securities	69,416,731	69,416,731
18.4	Changes during current period (a) Increases through release of escrow (b) Decreases through returns of capital, buybacks	(9,881,864)	5,681,683 (9,881,864)
18.5	+ Convertible debt securities (description and conversion factor)
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and conversion factor)			Exercise Price	Expiry date (if any)
		5,825,000		12c	30/6/07
18.8	Issued during current period	5,825,000		12c	30/6/07
18.9	Exercised during current period
18.10	Expired during current period
18.11	Debentures (description)
18.12	Changes during current period (a) Increases through issues
	(b) Decreases through securities matured, converted

$+$ See chapter 19 for defined terms.

18.13	Unsecured notes (description)
	Changes during current period
18.14	(a) Increases through issues
	(b) Decreases through securities matured, converted

Seament reporting

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports. AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Seament information in the layout employed in the entity's +accounts should be reported separately and attached to this report.) (Refer to Appendix B of this report)

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

Basis of financial report preparation

• 19.1 If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last *annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029; Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly $19.2$ report, provide explanatory comments about any seasonal or irregular factors affecting operations.

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

N/A

N/A

Franking credits available and prospects for paying fully or partly franked dividends for at least the next year. 19.4

Nil

⁺ See chapter 19 for defined terms.

19.5 Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

Nil

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half vear.

• 19.7 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last + annual report.
• Nil

Nil

Additional disclosure for trusts

• $20.1$ Number of units held by the management company or responsible entity or their related parties. 20.2 A statement of the fees and commissions payable to the management company or responsible entity.
• Identify:
• initial service charges $\bullet$
• management fees
• other fees

N/A

Annual meeting

$+$ See chapter 19 for defined terms.

(Preliminary final report only)

The annual meeting will be held as follows: Not Applicable Place Date Time Approximate date the tannual report will be available

Compliance statement

$\mathbf{1}$ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

• $\overline{2}$ This report, and the +accounts upon which the report is based (if separate), use the same accounting policies.
• 3 This report does give a true and fair view of the matters disclosed (see note 2).
• $\boldsymbol{A}$ This report is based on +accounts to which one of the following applies. (Tick one)
• $\Box$

$\Box$

• The +accounts have been audited.
• The +accounts have been subject to review.
• The +accounts are in the process of $\square$ being audited or subject to review.
• The *accounts have not yet been audited or reviewed.
• 5 If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available* (delete one). (Half yearly report only - the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• $6\phantom{.}6$ The entity has formally constituted audit committee.

Sign here: Alec Pismiris Company Secretary Date: 6 March 2003

Notes

$+$ See chapter 19 for defined terms.

• $1.$ For announcement to the market The percentage changes referred to in this section are the percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
• $\overline{2}$ True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

$3.$ Condensed consolidated statement of financial performance

• Item 1.1 The definition of "revenue" and an explanation of "ordinary activities" are set out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance.
• Item 1.6 This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg, fringe benefits tax).
• $\overline{4}$ . Income tax If the amount provided for income tax in this report differs (or would differ but for compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in the heading for the column "Franked amount per security at % tax" for items 15.4 to 15.7.

$5₁$ Condensed consolidated statement of financial position

Format The format of the consolidated statement of financial position should be followed as closely as possible. However, additional items may be added if greater clarity of exposition will be achieved, provided the disclosure still meets the requirements of AASB 1029: Interim Financial Reporting, and AASB 1040: Statement of Financial Position. Also, banking institutions, trusts and financial institutions may substitute a clear liquidity ranking for the Current/Non-Current classification.

Basis of revaluation If there has been a material revaluation of non-current assets (including investments) since the last *annual report, the entity must describe the basis of revaluation adopted. The description must meet the requirements of AASB 1010: Accounting for the Revaluation of Non-Current Assets. If the entity has adopted a procedure of regular revaluation, the basis for which has been disclosed and has not changed, no additional disclosure is required.

• $6.$ Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of AASB 1026. ⁺Minina exploration entities may use the form of cash flow statement in Appendix 5B.
• $7₁$ Net tangible asset backing Net tangible assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the ⁺ordinary securities (ie, all liabilities, preference shares, outside ⁺equity interests etc). ⁺Mining entities are not required to state a net tangible asset backing per ⁺ordinary security.
• 1. Gain and loss of control over entities The gain or loss must be disclosed if it has a material effect on the *accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.

⁺ See chapter 19 for defined terms.

• $9.$ Rounding of figures This report anticipates that the information required is given to the nearest \$1,000. If an entity reports exact figures, the \$A000'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest \$100,000, and the \$A000'000 headings must be amended.
• $10₁$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of financial performance, AASB 1029 Interim Financial Reporting requires information on a year to date basis in addition to the current interim period. Normally an Appendix 4B to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If an Appendix 4B Half vearly version is produced for an additional interim period (eq because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4B.
• 1. Additional information An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the ⁺ASIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the ⁺ASIC, must be given to ASX.
• $12.$ Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
• $13.$ Corporations Act financial statements This report may be able to be used by an entity required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.
• $14.$ Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• 15 Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. AASB ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their +accounts.

The information in lines 1.23 to 1.27 may be provided in an attachment to Appendix 4B.

Relevant Items AASB 1018 requires the separate disclosure of specific revenues and expenses which are not extraordinary but which are of a size, nature or incidence that disclosure is relevant in explaining the financial performance of the reporting entity. The term "relevance" is defined in AASB 1018. There is an equivalent requirement in AASB 1029: Interim Financial Reporting. For foreign entities, there are similar requirements in other accounting standards accepted by ASX.

16 Dollars If reporting is not in A\$, all references to \$A000 must be changed to the reporting currency. If reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.

⁺ See chapter 19 for defined terms.

$17.$ Discontinuing operations

Half vearly report

All entities must provide the information required in paragraph 12 for half years beginning on or after 1 July 2001.

Preliminary final report

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their +accounts in accordance with AASB 1042 Discontinuing Operations.

In any case the information may be provided as an attachment to this Appendix 4B.

$18.$ Format

This form is a Word document but an entity can re-format the document into Excel or similar applications for submission to the Companies Announcements Office in ASX.

⁺ See chapter 19 for defined terms.

ATTACHMENT TO APPENDIX 4B HALF YEARLY REPORT 31 DECEMBER 2002

APPENDIX A

Income Tax Note

a)	Economic Entity 2002 \$A'000
The prima facie income tax expense/(benefit) on the Operating profit/(loss) is reconciled to the income tax Provided in the accounts as follows:-
The prima facie income tax expense/(benefit) on the operating profit/(loss) at 30%	(532) www.communwwwww.communw
	(532)
Tax effect of permanent differences:- Non-deductible expenses	(6,006)
Tax effect of timing differences	6,538
Income tax expense/(benefit) Attributable to operating profit/(loss)	--------------------------------------- Ω

⁺ See chapter 19 for defined terms.

ATTACHMENT TO APPENDIX 4B HALF YEARLY REPORT 31 DECEMBER 2002

APPENDIX B

Segment Note

Geographic Segments $(a)$

The Consolidated Entity operates predominantly in one geographic segment, Australia.

Industry Segments $(b)$

The Consolidated Entity operates predominantly in two industries - the mining and exploration industry and the technology and financial services industry.

SEGMENT INFORMATION - PRIMARY SEGMENT

Business segments	Mining & Exploration Industry		Financial Services & Technology Services		Total
	2002 \$'000	2001 \$000	2002 \$'000	2001 \$000	2002 \$'000	2001 \$000
Revenue
Sales to customers outside the consolidated entity		12.238				12,236
Other revenues from customers outside the consolidated entity	170				170
Inter seqment revenues
Share of net profit of equity accounted investments
Total segment revenue	B 70	12,238	s.		170	12, 238
Unallocated revenue					244	90.
Total consolidated revenue					414	12.326
Results
Seqment result	(326)	2,393	(13)	(427)	(339)	1.966
Unallocated expenses					(836)	(1,520)
Unallocated revenue					244	90
Consolidated entity profit from ordinary activities before income tax expense					(931)	536
Income tax expense
Consolidated entity profit from ordinary activities after income tax expense					(931)	536
Extraordinary item
Net profit					(931)	536

$+$ See chapter 19 for defined terms.

APPENDIX B

Segment Note (continued)

Business segments	Mining & Exploration Industry		Financial Services & Technology Services		Total
	2002 \$000	2001 \$000	2002 \$000	2001 \$000	2002 \$'000	2001 \$000
Assets
Segment assets	16,082	21,871	102	326	16,184	22,197
Unallocated assets					853	985
Total assets					17.037	23,182
Liabilities
Segment liabilities	3.275	4.370	18	267	3.293	4,737
Unallocated liabilities					659	245
Total liabilities					3,952	4,982
Other segment information:
Equity method investments included in segment assets
Acquisition of property, plant and equipment, intangible assets and other non-current assets						6.
Depreciation and Amortisation	148	5,396		-79	148	5,475
Non-cash expenses other than depreciation and amortisation	245	1.842		258	242	2,100

⁺ See chapter 19 for defined terms.