GREAT BOULDER RESOURCES LIMITED — Interim / Quarterly Report 2019

Mar 14, 2019

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ACN 611695955

HALF YEAR REPORT INTERIM FINANCIAL REPORT FOR THE HALF- YEAR ENDED 31 DECEMBER 2018

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CONTENTS

Corporate Directory .................................................................................................................. 2 Directors' Report ....................................................................................................................... 3 Statement of Profit or Loss and Other Comprehensive Income .......................................... 12 Statement of Financial Position ............................................................................................. 13 Statement of Changes in Equity ............................................................................................ 14 Statement of Cash Flows ....................................................................................................... 15 Notes to the Financial Statements ......................................................................................... 16 Directors’ Declaration ............................................................................................................. 20 Independence Declaration ..................................................................................................... 21 Independent Review Report ................................................................................................... 22

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Corporate Directory

Directors

Gregory C Hall (Non-Executive Chairman) Stefan K Murphy (Managing Director) Murray E Black (Non-Executive Director) Melanie J Leighton (Non-Executive Director)

Company Secretary

Melanie Ross

Principal Place of Business

First Floor, 768 Canning Highway Applecross WA 6153 Telephone: 08 6323 7800 Facsimile: 08 9315 5004

Registered Office

First Floor 768 Canning Highway Applecross WA 6153 Telephone: 08 6323 7800 Facsimile: 08 9315 5004

Solicitors

Jackson McDonald Level 17, 225 St Georges Terrace PERTH WA 6000

Auditors

RSM Australia Partners Level 32, 2 The Esplanade PERTH WA 6000

Share Registry

Automic Registry Services Level 2, 267 St Georges Terrace PERTH WA 6000 Telephone +61 8 9324 2099

Bankers

Westpac Banking Corporation Hannan Street Kalgoorlie WA 6430

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Directors' Report

The Directors of Great Boulder Resources Ltd present their report for the half-year ended 31 December 2018.

Directors

The following persons held office as directors of Great Boulder Resources Limited at the date of this report or were directors at any time during the half-year ended 31 December 2018, unless otherwise stated:

Gregory C Hall (Non-Executive Chairman) Stefan Murphy (Managing Director) Murray E Black (Non-Executive Director) Melanie J Leighton (Non-Executive Director)

Principal Activities

The principal continuing activity of the company is mineral exploration in Western Australia.

Significant Changes in the State of Affairs

There were no significant changes in the state of affairs of the company during the half-year.

Review of Operations

Operating Result

The loss from continuing operations for the half-year after providing for tax amounted to $494,542 (2017: $376,979).

Operational Highlights

Corporate

• During the period, 250,000 options were exercised, raising $50,000 in new funds.

• At the end of the December 2018 the Company’s issued share capital was:

Class of Securities	Issued Capital
Ordinary fully paid shares – quoted on the ASX	80,110,117
Unlisted Options (exercisable at $0.20 and expire 18 Nov. 2020)	35,629,893
Unlisted Performance Rights	750,000

• Post the end of the reporting period, the Company issued a further 500,000 Performance Rights as approved at the Annual General Meeting on 5 November 2018.

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Yamarna Project

Eastern Mafic

• Ground EM and maiden RC and diamond drilling program completed during the reporting period

• The Eastern Mafic is a newly-discovered copper-nickel-cobalt system adjacent to Mt Venn; Significant new drill results include:

• 4m at 1.3% Cu, 0.2% Ni, 0.02% Co

• 2.5m at 1.0% Cu, 0.1% Ni, 0.04% Co

• 10m at 0.5% Cu, 0.4% Ni, 0.04% Co

• 33m at 0.3% Ni, 0.2% Cu, 0.04% Co

• 12m at 0.3% Ni, 0.3% Cu, 0.03% Co

• 7m at 0.3% Ni, 0.2% Cu, 0.05% Co

• 5m at 0.4% Ni, 0.3% Cu, 0.03% Co

• Confirmation that the Eastern Mafic hosts a more nickel-rich part of the magmatic sulphide system than the Mt Venn deposit

• Elevated PGE intersected at the Ben Lomond and ML13 prospects provide valuable by-product credits

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Figure 1: MLEM late time (Ch. 35) showing intrusion target (red), MLEM conductor plates and drill hole collar locations

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• Drilling finished during the December quarter, with a total of 30 RC and diamond holes drilled for 6,777m.

• Assay and geophysical data collected from the drill program has been collated and used to better define the shape and geometry of the Eastern Mafic intrusion, successfully mapping discrete magma pulses hosting different phases of copper-nickel sulphide mineralisation.

• A key conclusion drawn from this revised interpretation is that the Eastern Mafic appears to have formed at depth rather than along strike to the south-east and that drilling to date has only intersected the top of the intrusion, leaving the main body of the intrusion untested.

• The evidence of multiple magma pulses with increasing nickel tenor at depth supports the potential for further magma pulses to host more nickel-rich sulphide mineralisation.

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Figure 2: Revised gravity inversion model showing the extensive Eastern Mafic complex in long section. Yellow box highlights DHEM search area around planned drill holes

• An RC and diamond drill program at the Zermatt, Cortina, ML13 and Ben Lomond prospects commenced post the reporting period in February 2019. The drilling program is designed to test deeper into the intrusion to identify massive accumulations of nickel sulphide and is ongoing at the date of this report.

Mt Venn

• Infill and extensional RC and diamond drilling completed at Mt Venn during the quarter (4,284m)

• Results continue to extend mineralisation which has now been defined over 1km of strike length. Significant new results include:

• 43m at 0.4% Cu, 0.2% Ni, 0.06% Co from 141m

• 20m at 0.6% Cu, 0.1% Ni, 0.02% Co from 141m

• 14m at 0.6% Cu, 0.2% Ni, 0.05% Co from 236m

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Figure 3: Mt Venn RC and diamond drill results over RTP 1VD magnetics and DHEM conductor plates.

Metallurgical Testwork

• Initial metallurgical trials were completed during the reporting period that demonstrated a viable processing flowsheet to produce high quality copper, nickel and cobalt products from Mt Venn.

• The testwork was completed on a composite diamond drill hole sample from Mt Venn containing copper, mainly as chalcopyrite, and nickel and cobalt in solid solution in pyrrhotite.

• High-grade copper sulphide (46% Cu) was produced in the leach circuit and a high quality chemical grade cobalt sulphate (29% Co, +99% Cobalt sulphate) was produced, suitable for high value use in the battery and EV market. A simple process of nickel precipitation produces a high-quality nickel sulphide (42% Ni) product that is in demand from the battery and stainless-steel sectors.

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• Post the reporting period end, Great Boulder announced updated metallurgical testwork results (ASX Announcement 5 March 2019):

• The latest results demonstrate a robust, reliable flowsheet developed in the preliminary metallurgical program can produce readily marketable copper and nickel-cobalt sulphide concentrates

• High overall copper recovery of more than 90% achieved in the flotation and leach circuit to produce a +20% saleable copper sulphide concentrate

• Exceptionally high-value nickel-cobalt sulphide concentrate produced grading 26% Ni and 9% Co, suitable for use in the battery and EV markets

• Overall nickel and cobalt recoveries approaching 80% in a combined nickel-cobalt sulphide product demonstrated in these initial trials

• Improved nickel and cobalt recoveries expected from higher-grade and higher-tenor mineralisation at the Eastern Mafic and Winchester (drilling underway)

				Assay (%)
Product	Cu	Ni	Co	Fe	Al	Ca	Mg
Copper sulphide	45.9	2.85	1.28	0.30	0.20	2.10	0.36
Mixed sulphide	0.81	25.9	9.22	1.49	0.29	0.22	0.31

Winchester Project

• During the reporting period, Great Boulder secured an option to form a joint venture with Ausgold Limited (ASX: AUC) over the Winchester project, located 40km north of Mt Venn.

• Winchester is a known copper-nickel system and the high-tenor nickel sulphide makes it a particularly attractive exploration target and potential higher-grade blend for Mt Venn and the Eastern Mafic.

• A total of 2 RC holes for 388m were drilled during the reporting period at the Target 1 prospect. Primary sulphide mineralisation was intersected in both holes; Significant new results include:

• 7m at 1.1% Cu, 0.2% Ni, 0.01% Co, 0.19g/t Au, 0.13g/t PGE from 120m (18WNRC001)

  • including 2m at 1.8% Cu, 0.2% Ni, 0.02% Co, 0.25g/t Au, 0.22g/t PGE

• 13m at 0.9% Cu, 0.3% Ni, 0.02% Co from 138m (18WNRC002);

  • including 5m at 1.1% Cu, 0.7% Ni, 0.04% Co, 0.10g/t PGE

• These results confirm continuity of mineralisation previously intersected by Ausgold at the Target 1 prospect, where RC drilling results returned:

• 31m @ 0.6% Cu, 0.3% Ni from 29m (YMRC003)

• 21m @ 0.6% Cu, 0.2% Ni, and 0.02% Co from 88m (YMRC009)

• including 3m @ 0.9% Cu, 0.5% Ni, 0.03% Co

• including 3m @ 1.2% Cu, 0.2% Ni, 0.01% Co

• 28m @ 0.5% Cu, 0.2% Ni, and 0.02% Co from 99m (YMRC010)

• including 10m @ 0.8% Cu, 0.4% Ni, 0.03% Co

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Figure 4. Target 1 drilling at the Winchester Project showing interpreted geology and significant intercepts

• In addition to mineralisation drilled at Target 1, several more targets within the mafic complex and with annomalous copper and nickel associated with sulphide mineralisation has been identified.

• Great Boulder is assessing these targets and designing ground gravity and aircore geochemistry programs ahead of first pass RC drilling.

• Great Boulder considers Winchester a high priority target given its demonstrated high grade and tenor nickel and copper mineralisation and the intrusive complex remains largely untested away from Target 1.

• Exploration activities at Winchester will commence once the tenements extension of term is granted and a formal joint venture with Ausgold is executed.

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Figure 5 . Winchester – Magnetic inversion model and structure interpretation (Target 1 annotated)

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Tarmoola Project

• Great Boulder completed an 11-hole RC drilling program for 1,052 meters during the reporting period. Four holes were drilled into targets along the Ursus fault, mostly under transported cover with little surface geochemical anomalism. The remaining seven testing the Marionette shear zone targeting gold mineralisation associated with geochemical anomalies.

• Drill holes into the Marionette shear encountered basalt, intruded by minor 1-2 m wide dolerite dykes. Alteration was observed in all holes, with iron-carbonate being the predominant type. Drill hole 18TARC005 returned the highest gold grades from within the Marionette shear zone, with 3m at 1.29 g/t Au from 23 m.

• This first pass drilling confirms the Marionette prospect to have mineralised structures, interpreted as splay shears off the Ursus fault.

• Drilling along the Ursus fault detected elevated pathfinder elements at the end of holes in 18TARC001 and 18TARC004.

• A gravity inversion model completed for this area indicates a possible granitoid intrusion below these holes that may be driving the hydrothermal fluids associated with the alteration and pathfinder elements. This pathfinder association could indicate a potentially mineralised zone at depth, analogous to the nearby King of the Hills gold mine.

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Figure 6: Tarmoola drill hole location map showing surface geology and interpreted structures

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Mt Carlon Project

• Great Boulder secured an option to acquire the Mt Carlon project from Gold Road Limited (ASX: GOR), located just 60km south of the Yamarna Project.

• Mt Carlon is considered a highly attractive target as it exhibits a strong magnetic and gravity response over several kilometres which may represent a large mafic intrusion, prospective for nickel-copper-cobalt sulphide mineralisation.

• A large ultramafic unit, which has been mapped over 7km of strike is also considered prospective for nickel sulphide mineralisation. Historical aircore drilling has identified elevated levels of nickel and copper which will be assessed in upcoming drill programs.

• Mt Carlon’s potential is also enhanced by the fact it is located immediately west of the Yamarna shear zone in a similar geological setting to Mt Venn and the Eastern Mafic copper-nickel-cobalt discoveries.

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Figure 7: Mt Carlon aircore (Ni) and and interpreted geology

After Reporting Date Events

On 10 January 2019 the Company issued 500,000 Class C Performance Rights to the Managing Director Stefan Murphy as approved by shareholders at the AGM on 5 November 2018.

On 12 March 2019 the Company executed a joint venture agreement (JVA) with Ausgold over the Winchester project in WA. The Company will earn up to 75% of Winchester through the expenditure of $500,000 over four years. This JVA will be effective from 12 March 2019. Under the terms of the JVA, the Company will issue Ausgold 1,500,000 fully paid ordinary shares which are under staged voluntary escrow periods of 3 to 9 months.

Other than the above, there are no matters or circumstances that have arisen since 31 December 2018 that have significantly affected or may significantly affect the operations, the results of those operations, or the state of affairs of the company.

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Auditors' Independence Declaration

In accordance with section 307C of the Corporations Act 2001, the Directors have obtained a declaration of independence from RSM Australia Partners, the company’s auditors, which has been included as part of these financial statements.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

Signed for on behalf of the board by:

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Stefan Murphy

MANAGING DIRECTOR 15 March 2019, Perth

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Statement of Profit or Loss and Other Comprehensive Income

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For the Half-Year Ended 31 December 2018

Interest Depreciation Corporate fees Legal and professional Employee benefits expense Administration expenses and rent Project evaluation expenses Travel costs Impairment expenses 2 Share based payment Loss before income tax Income tax expense Loss for the half year Other comprehensive income Total comprehensive loss for the half year Basic and diluted loss per share (cents)	31 December 31 December 2018 2017 $ $ 13,085 42,981
	13,085 42,981 (19,257) (15,498) (46,343) (38,017) (57,525) (21,133) (138,645) (160,344) (156,729) (156,392) (10,963) (6,148) (20,585) (8,856) (14,402) - (43,178) (13,572)
	(494,542) (376,979) - -
	(494,542) (376,979) - -
	(494,542) (376,979)
	(0.62) (0.55)

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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Statement of Financial Position

As at 31 December 2018

Note Current Assets Cash and cash equivalents Other current assets Total current assets Non-Current Assets Property, plant and equipment Exploration and evaluation expenditure 2 Total non-current assets Total assets Current Liabilities Trade and other payables 3 Provisions Total current liabilities Total liabilities Net assets Equity Contributed equity 4 Share based payment reserve Accumulated losses Total equity	31 December 2018 $ 1,768,487 87,297 1,855,784 196,476 5,121,978 5,318,454 7,174,238 95,339 13,867 109,206 109,206 7,065,032 9,316,164 304,346 (2,555,478) 7,065,032	30 June 2018 $ 3,693,878 132,714
		3,826,592
		89,213 3,876,500
		3,965,713
		7,792,305
		313,833 10,192
		324,025
		324,025
		7,468,280
		9,268,048 290,768 (2,090,536)
		7,468,280

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

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Statement of Changes in Equity

For the Half-Year Ended 31 December 2018

31 December 2018: Balance at 1 July 2018 Loss for the period Total comprehensive income for the half-year Shares issued during the period Share issue costs Share based payments Expiry of performance rights Balance at 31 December 2018 31 December 2017: Balance at 1 July 2017 Loss for the period Total comprehensive income for the half-year Shares issued during the period Share based payments Balance at 31 December 2017	Contributed Equity Share Based Payment Reserve Accumulated Losses Total Equity $ $ $ $ 9,268,048 290,768 (2,090,536) 7,468,280 - - (494,542) (494,542) - - (494,542) (494,542)
	50,000 - - 50,000 (1,884) - - (1,884) - 43,178 - 43,178 - (29,600) 29,600 -
	9,316,164 304,346 (2,555,478) 7,065,032
	6,473,451 242,820 (718,366) 5,997,905 - - (376,979) (376,979) - - (376,979) (376,979)
	416,371 - - 416,371 - 13,572 - 13,572
	6,889,822 256,392 (1,095,345) 6,050,869

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Statement of Cash Flows

For the Half Year Ended 31 December 2018

Cash Flows From Operating Activities Payments to suppliers and employees Interest received Net cash (used in) operating activities Cash Flows From Investing Activities Payments for exploration and evaluation expenditure Receipts from Joint Venture partners Proceeds from grants received for exploration and evaluations expenditure Payment for plant and equipment Net cash (used in) investing activities Cash Flows From Financing Activities Proceeds from issue of shares Share issue costs Net cash provided by financing activities Net (decrease) in cash held Cash and cash equivalents at the beginning of the half-year Cash and cash equivalents at the end of the half-year	31 December 2018 $ (358,708) 23,268 (335,440) (2,869,869) 554,660 806,157 (129,015) (1,638,067) 50,000 (1,884) 48,116 (1,925,391) 3,693,878 1,768,487	31 December 2017 $ (416,323) 49,855
		(366,468)
		(1,064,125) - 263,400 (64,410)
		(865,135)
		416,371 -
		416,371
		(815,232) 4,256,267
		3,441,035

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

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Notes to the Financial Statements

For the half-year ended 31 December 2018

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1. Summary of Significant Accounting Policies

a. Basis of Preparation

The half-year financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standards IAS 34: Interim Financial Reporting.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2018 and any public announcements made by Great Boulder Resources Limited during the half-year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The half-year financial report does not include full disclosures of the type normally included in an annual financial report.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements, except in relation to the matters discussed below.

New and Revised Accounting Standards

In the half-year ended 31 December 2018, the company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the annual reporting period beginning on or after 1 July 2018. The adoption of these new and revised Standards and Interpretations has not resulted in a significant or material change to the entity’s accounting policies.

2. Exploration and evaluation expenditure Opening balance Capitalised mineral exploration and evaluation expenditure (net) during the period Impairment of exploration and evaluation costs (i) Closing balance	31 December 2018 $ 3,876,500 1,259,880 (14,402) 5,121,978	30 June 2018 $ 1,719,701 2,836,068 (679,269)
		3,876,500

• i. As the Company has withdrawn from the Balagundi and Broadwood Joint Ventures, the capitalised mineral exploration and evaluation expenditure in relation to these areas of interest has been impaired.

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Notes to the Financial Statements

For the half-year ended 31 December 2018

4. Issued capital (a) Issued capital Ordinary shares – fully paid (b) Movement in ordinary share capital Balance at beginning of period Shares issued on exercise of options Share issue costs Balance at end of period (c) Options over ordinary share capital 3. Trade and other payables Trade payables and accruals Total trade and other payables Expiry date Expiry price ($) Balance at start of the period Number issued during the period 17/11/2020 0.20 35,879,893 - 35,879,893 -	4. Issued capital (a) Issued capital Ordinary shares – fully paid (b) Movement in ordinary share capital Balance at beginning of period Shares issued on exercise of options Share issue costs Balance at end of period (c) Options over ordinary share capital 3. Trade and other payables Trade payables and accruals Total trade and other payables Expiry date Expiry price ($) Balance at start of the period Number issued during the period 17/11/2020 0.20 35,879,893 - 35,879,893 -		30 June 2018 $ 313,833
			313,833
			30 June 2018 $ 9,268,048 $ 9,268,048 50,000 (1,884)
			9,316,164
			Balance at end of the period 35,629,893 35,629,893
	35,879,893 -	(250,000) -

(c) Options over ordinary share capital

(d) Performance rights over ordinary share capital

Class Issue date Expiry date Exercise price A 20/02/2018 15/11/2018 Nil B 20/02/2018 23/10/2019 Nil C 9/01/2019 9/01/2020 Nil	Balance at start of period Number expired during the period Exercised during the period Balance at end of the period 1,250,000 (1,250,000) - - 750,000 - - - - - - -
	(250,000) - - 35,629,893

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Notes to the Financial Statements For the half-year ended 31 December 2018

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4. Issued capital (continued)

(d) Performance rights over ordinary share capital (continued)

On 5 November 2018, shareholders approved the issue of 500,000 “Class C” performance rights to Stefan Murphy that vest within 12 months from issue date, when the volume weighted average price (“VWAP”) of shares traded on the ASX over any consecutive one-month period is $0.30 or more. The performance rights have been valued using a hybrid up and in single barrier pricing model with an aggregate value of $62,710. The expense recognised during the period of $43,178 includes $8,143 in relation to these performance rights and $35,035 in relation to performance rights previously issued. Commencing from date of shareholder approval, the share based payment expense is recognised on a straight-line basis over the vesting period. The Class C performance rights were issued on 9 January 2019.

The Class A performance rights issued in the prior year were expired during the period. $29,600 was transferred from the share based payments reserve to accumulated losses on expiry.

5. Contingent Liabilities

The directors are not aware of any new contingent liabilities or assets as at 31 December 2018. There has been no change in contingent liabilities or assets since the last annual reporting date.

6. Events Subsequent To Reporting Date

On 10 January 2019 the Company issued 500,000 Class C Performance Rights to the Managing Director Stefan Murphy as approved by shareholders at the AGM on 5 November 2018.

On 12 March 2019 the Company executed a joint venture agreement (JVA) with Ausgold over the Winchester project in WA. The Company will earn up to 75% of Winchester through the expenditure of $500,000 over four years. This JVA will be effective from 12 March 2019. Under the terms of the JVA, the Company will issue Ausgold 1,500,000 fully paid ordinary shares which are under staged voluntary escrow periods of 3 to 9 months.

Other than the above, there are no matters or circumstances that have arisen since 31 December 2018 that have significantly affected or may significantly affect the operations, the results of those operations, or the state of affairs of the company.

7. Dividends

No dividends have been paid or proposed to be paid during the half-year.

8. Segment Information

The company has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision maker) in assessing performance and determining the allocation of resources.

The company operates as a single segment which is mineral exploration in Western Australia.

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Notes to the Financial Statements For the half-year ended 31 December 2018

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9. Related Parties

Eastern Mining Goldfields Pty Ltd, a company controlled by Mr Black, was invoiced $592,569 (ex. GST) for its 25% share of the Yamarna Joint Venture costs for the half year (30 June 2018: $nil). An amount of $37,909 (ex. GST) was receivable as at 31 December 2018 (30 June 2018: $nil).

A company in which Mr Black is a director, Blue Spec Drilling Pty Ltd, invoiced the company $1,588,887 (ex. GST) for drilling services (30 June 2018: $1,105,629). No amounts were owing as at 31 December 2018 (30 June 2018: $nil).

During the period the company granted Stefan Murphy (Managing Director) 500,000 performance rights following approval by shareholders at the company’s annual general meeting on 5 November 2018. Refer to Note 4.

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Directors’ Declaration

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• In the opinion of the directors:

• a) the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• b) the attached financial statements and notes give a true and fair view of the company’s financial position as at 31 December 2018 and of its performance for the financial half-year ended on that date; and

• c) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors made pursuant to s303 (5) of the Corporations Act 2001.

Signed for on behalf of the board by:

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Stefan Murphy MANAGING DIRECTOR 15th March 2019

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RSM Australia Partners

Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Great Boulder Resources Limited for the half year ended 31 December 2018, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

RSM AUSTRALIA PARTNERS

Perth, WA Dated: 15 March 2019

ALASDAIR WHYTE Partner

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

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RSM Australia Partners

Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF GREAT BOULDER RESOURCES LIMITED

We have reviewed the accompanying half-year financial report of Great Boulder Resources Limited which comprises the statement of financial position as at 31 December 2018, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company’s financial position as at 31 December 2018 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Great Boulder Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

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Independence

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

Conclusion

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

• (a) giving a true and fair view of the company’s financial position as at 31 December 2018 and of its performance for the half-year ended on that date; and

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

RSM AUSTRALIA PARTNERS

Perth, WA Dated: 15 March 2019

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ALASDAIR WHYTE
Partner
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