HELIX RESOURCES LIMITED - Annual Report 2007

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HELIX RESOURCES LIMITED HELIX RESOURCES LIMITED

ANNUAL REPORT ANNUAL REPORT 2007

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Chairman’s Review	2
Review of Operations	3
Review of Projects	3
Corporate Governance	15
Directors’ Report	22
Auditor’s Independence Declaration	27
Independent Audit Report	28
Directors’ Declaration	30
Balance Sheet	31
Income Statement	32
Cash flow Statement	33
Statement of Changes in Equity	34
Notes to the Financial Statements	35
Shareholding Information	54
Tenement Schedule	56
Corporate Directory	58

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Helix Resources Limited Annual Report 2007

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Chairman’s Review

Dear Shareholder

I am pleased to present the 2007 Annual Report for the Company. The new Executive Management and Board team are focused on Helix’s exploration and development strategy, with the specific aim of creating shareholder value. Helix is well placed, with exposure to iron ore, gold, base metals and uranium to take advantage of the positive outlook for the resources sector as strong demand continues for minerals from the emerging economies of China and India.

Since my 2006 Chairman’s Letter, the market capitalisation of Helix has increased from ±$8 million to ±$25 million, and I hope for continuing market recognition based on positive drilling results emerging from our Yalleen Iron Ore JV, our Minotaur Tunkillia Gold JV, our Toro Energy Uranium JV and our 100% Glenburgh gold project.

Helix has reported a loss of $0.2 million, which compares favourably to the 2006 loss of $4.8 million, and is due to a combination of re-evaluating our exploration focus and expenditure, the sale of non-core investments and administration cost saving programs being implemented.

The Company has sufficient cash [$2.8 million] and liquid investments [$0.5 million] to meet budgeted 2007/8 Yalleen JV contributions to maintain our 30% interest, together with funding its own exploration programs, whilst JV parties expend a further $3.5 million on our Projects to earn their interest.

Regarding our existing projects:-

Yalleen Iron Joint Venture partners [API 70%/HLX 30%] agree to 10,000m exploration drilling program for $2.3m. The drilling program will infill the Kumina Creek Prospect to a sufficient level to facilitate a JORC resource calculation, as well as test additional channel iron and banded iron targets identified from the 2006 Hoist EM survey which totals an area of over 25km².
The Yalleen Project is considered to have the potential to host an Exploration Target in the order of several hundred million tonnes of iron deposits, and API has commissioned various port and transport studies to assess development options.
In South Australia, our joint venture with Minotaur Exploration Ltd over the Tunkillia gold project has seen an upgrade of the JORC Resource to 800,000 oz gold and 1,600,000 oz silver, with Minotaur completing economic studies as they earn 51% by spending $5 million on the project.
The regional focus on our Glenburgh gold project in Western Australia to enhance the current JORC Resource of 1.1 Mt grading 3.1 g/t [108,000 oz gold] is proceeding well. New gold systems have been identified and 5 targets are being drilled in the 3[rd] quarter 2007.
Our Gawler Uranium Joint Venture is progressing well, with Toro Energy having to expend $2 million in uranium exploration on Lake Everard in SA to earn 51%.

I wish to thank the Board and Staff of Helix for their efforts during the year and look forward to continuing to create value for our shareholders.

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Greg J Wheeler Chairman

Helix Resources Limited Annual Report 2007

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Review of Operations

YALLEEN IRON ORE JV – WESTERN AUSTRALIA

Helix Resources Limited 100%, Australian Premium Iron JV (Aquila/AMCI) earning 70% iron ore rights. E47/1169-1171

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Figure 1: Major iron ore mines and associated infrastructure of the Pilbara Region.

Project Background

The Yalleen Iron Ore JV Project covers an area of approximately 600 square kilometres flanking the northern edge of the Hamersley Ranges, in the upper reaches of the Fortescue Valley, West Pilbara region in Western Australia. This valley hosts the Robe River (Rio Tinto) pisolite iron projects, surrounding the mining town of Pannawonica.

Pisolitic iron mineralisation has developed in this region from the erosion over millions of years of iron rich strata in the northern Hamersley Group. The process created a series of channel iron deposits (CID), later buried under the younger cover, within the Robe River and Kumina Creek drainage basins. The Hamersley Group iron units, dominated by the Brockman and Marra Mamba Formations, form the main rock exposures in the Yalleen Project area and are host to many of the major bedded iron ore deposits (BID) in the Pilbara region (West Angelas, Tom Price, Mt Whaleback, Cloud Break).

Helix Resources Limited Annual Report 2007

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The Yalleen Joint Venture is managed by the Australian Premium Iron JV (Aquila/AMCI) and forms part of their larger West Pilbara Iron Ore Project which recently estimated a resource of 203.0Mt at 57.44% Fe from deposits in separate joint ventures with Red Hill Iron Ltd and Cullen Resources Limited. These projects are approximately 50-70 km southwest of the Yalleen Project area.

API as manager of the West Pilbara Project is aiming to define a Stage 1 iron resource inventory sufficient to produce a minimum of 10-20Mt pa for 10 years, transporting ore via rail infrastructure to one of several potential port locations on the Pilbara Coast.

Drillhole cutting at Kumina Creek. January 2007

Exploration Review

At Yalleen, API exploration throughout 2005 and 2006 concentrated on assessing the buried CID potential within the ancient Fortescue Valley area, focusing on targets identified from a HoistEM survey that has proven to be useful at identifying palaeochannels in this environment. A program of specialised barber drilling and diamond drilling was completed at the 1[st] target - Kumina Creek - in December 2006,

Hole ID	Easting	Northing	From	To	Intercept	Al2O3%	SiO2%	S%	LOI%	Drill Type
YABA001	479227	7592767	10	47	37m @ 58% Fe	3.28	5.46	0.02	7.44	Barber
YABA002	478799	7592804	10	15	5m @ 54% Fe	3.83	12.08	0.02	6.84	Barber
YABA003	478400	7592803	12	18	6m @ 55% Fe	3.93	8.78	0.02	7.69	Barber
		and	25	26	1m @ 56% Fe	7.01	4.34	0.04	6.42
YABA004	477202	7593197	13	25	12m @ 56% Fe	4.66	6.22	0.01	7.96	Barber
YABA005	477600	7593200	11	12	1m @ 56% Fe	2.27	10.60	0.03	5.88	Barber
		and	15	17	2m @ 55% Fe	3.94	8.47	0.05	7.86
		and	27	42	15m @ 57% Fe	3.80	5.70	0.01	8.15
YABA006	477998	7593199	6	7	1m @ 57% Fe	0.90	7.65	0.01	8.29	Barber
		and	12	29	17m @ 58% Fe	3.77	4.89	0.02	7.88
YABA007	478012	7592802	17	47	30m @ 60% Fe	2.85	3.17	0.02	7.11	Barber
YABA008	477599	7592793	10	11	1m @ 55% Fe	2.70	10.65	0.03	7.54	Barber
YABA009	477208	7592802	9	21	12m @ 60% Fe	2.82	4.00	0.02	6.81	Barber
YABA010	476812	7592800	11	16	5m @ 56% Fe	4.02	8.07	0.02	7.80	Barber
YABA013	478611	7592814	8	9	1m @ 55% Fe	3.93	9.98	0.02	7.39	Barber
YABA014	478196	7592800	28	33	5m @ 57% Fe	4.64	5.43	0.02	7.34	Barber
YADD019	479174	7592788	11.3	40	29m @ 57% Fe	3.71	6.07	0.02	8.04	Diamond
YADD020	478611	7592814	9.3	13.2	4m @ 55% Fe	4.36	7.16	0.02	8.68	Diamond
YADD021	478196	7592800	33.3	54.9	22m @ 59% Fe	2.88	4.88	0.02	6.84	Diamond
		and	55.8	59	3m @ 57% Fe	4.54	4.44	0.01	9.15
YADD023	477977	7592971	19	20.7	2m @ 58% Fe	3.89	5.54	0.01	6.20	Diamond
YADD024	477799	7592823	11.3	14.6	3m @ 55% Fe	4.56	8.61	0.03	6.97	Diamond
YADD025	477404	7592757	9.4	16	7m @ 57% Fe	3.90	5.61	0.01	8.74	Diamond

Significant intercept: minimum 54% Fe, with maximum of 2 consecutive metres of internal waste

Helix Resources Limited Annual Report 2007

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successfully identifying a buried CID over 2,700m by 900m and up to 30 metres thick grading up to 60% Fe.

In 2007, limited field work has concentrated on the known channel iron targets at the Kumina Creek and Robe Exit prospects and early investigations into the potential for bedded iron mineralisation at the Bonham prospect area. A small exploration RC program was conducted in May, after significant delays were encountered in obtaining the services of the preferred Barber-style drilling rig. A Field visit to Yalleen January 2007 total of 12 RC drill holes were completed for 548m.

Kumina Creek Prospect

A detailed gravity survey covering the Kumina Creek buried CID has been completed. Interpretation of the results concluded that in a simple, qualitative sense, the gravity is mapping the palaeochannel system reasonably well.

As a result of the success of the initial gravity survey, API has commissioned a larger survey including a survey over the Robe Exit prospect area.

Robe Exit Prospect

A program of exploration RC drilling commenced at the 2[nd] target, the Robe Exit Prospect [being where the Robe River exits the Hamersley Ranges and enters the Fortescue Valley].

Hole ID	Easting	Northing	From	To	Intercept	Al2O3%	SiO2%	S%	LOl%
YARC028	475599	7588424	16	18	2.00 m @ 56.20 % Fe	5.3	9.07	0.026	4.32
YARC031	473595	7583611	8	20	12.00 m @ 57.15 % Fe	3.13	5.39	0.017	9.32
YARC033	473602	7584393	6	20	14.00 m @ 56.66 % Fe	3.49	4.96	0.023	9.98
YARC034	473981	7584404	6	14	8.00 m @ 57.50 % Fe	4.22	4.3	0.022	8.67
YARC035	474391	7585201	12	26	14.00 m @ 56.04 % Fe	3.84	6.4	0.015	9.16

Table of significant results from exploration RC drilling

Significant intercept: minimum 54% Fe, with maximum of 2 consecutive metres of internal waste

Seven drill holes YARC31 – 37 intersected varying thicknesses of CID. YARC031 and YARC033 to YARC036

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Figure 2: API’s West Pilbara Iron Ore JV (including Yalleen Project)

were drilled on or next to outcropping CID. Thickness of the CID varied between 6m to 28m, starting at or within 6m from the surface. Not all of the CID intersections exceeded the significant 54% Fe cut off.

It is believed at Robe River exit, the CID represents the mixed and basal zones of the CID stratigraphic model.

Drill hole YARC037, the north western most drilled hole, was strongly

Helix Resources Limited Annual Report 2007

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Figure 3 – Yalleen 2007 –2008 Priority CID Iron Ore Drilling Targets

goethitic (28m thick –although not exceeding the 54% Fe cut-off grade used for reporting) confirming the existence of predicted buried channel extensions under cover in this target zone.

Regional Drilling

Drilling also targeted the 3 kilometres south of the Kumina Creek prospect along the edge of the Hamersley Range to test a near surface resistive Hoist EM targets interpreted to be potential channel iron deposits. Drill holes were spaced at 1 kilometre centres toward the Robe Exit Prospect located a further 6 kilometres south.

Geological Mapping

Detailed geological mapping was conducted at the Robe Exit Prospect to validate a Landsat image interpretation of the area and to identify the composition and stratigraphy of the isolated CID mesas flanking the Robe River.

From the geological mapping a better picture of the ancestral Robe River palaeodrainage system dimensions is emerging which coupled with the gravity survey currently being carried out, will provide useful information in the planning of future drilling.

Bonham Prospect

At the Bonham Prospect geological mapping and rock chip sampling commenced in order to identify the distribution of goethitic cap, laterite and CID developed over the Marra Mamba formation. RC drilling is planned to commence in the third quarter of 2007.

2007/2008 Program

The 2007/8 program has a budget of $2.3M consisting of approximately 10,000m of drilling aimed at building on the work completed to date, advancing the Kumina Creek target to JORC resource status

Helix Resources Limited Annual Report 2007

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and completion of first pass drill testing of the Robe Exit, Robe West buried CID targets and BID targets identified within the Marra Mamba Formation.

Helix expects to be contributing from September 2007 after API has met their initial $1.5 million expenditure to earn 70% in the iron ore joint venture.

Helix Assessment of Yalleen Project Fe Target Potential

As detailed in Figure 3, the Yalleen Project comprises multiple CID and BID targets identified from historical drilling, the HoistEM survey completed by API in 2006, as well as drilling results by API on the Project in 2006 and 2007.

Helix has reviewed the available data and outlined a combination of targets with collectively, a surface area totalling in excess of 25km². Based on the drilling on the Kumina Creek and Robe Exit prospects, and after reviewing the remaining untested target areas, it is Helix’s assessment that the Yalleen Iron Ore Project has the potential to host an Exploration Target* in the order of several hundred million tonnes, with the most advanced drilled target [Kumina Creek] having the potential for in excess of 100Mt of CID at grades of between 57% and 60% Fe. In assessing the exploration target Helix has assumed an average density of 3 and an average intersection width of 15m.

*Note 1: The Exploration Target discussed above should not be misinterpreted as an estimate of Mineral Resources or Ore Reserves. While the company remains optimistic that the joint venture will be in a position to report resources in the future, any discussion in relation to targets, resources, reserves or ‘ore’ is only conceptual in nature as there has been insufficient drilling to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

In addition, Helix is aware API has commissioned various Port and Transport studies for the development of its West Pilbara Iron Ore Project and indicated in early 2007 the following:-

1[st] objective to define initial resource in Stage 1 sufficient to support 10-20 Mtpa operation over minimum 10 year mine life
FOB costs likely to be USD 20-25/t
Pre-Feasibility study due out fourth quarter 2007

Internal desktop studies by Helix based on available data for Pilbara iron ore companies suggest the project economics for Yalleen are positive, although significant work is required to be completed by the JV Manager and appropriately qualified experts prior to the release of economic studies confirming this preliminary assessment.

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Given the positive findings to date, Helix intends to maintain its 30% interest in the Yalleen JV once the earn-in has been reached, and is confident of the expertise of API [70% interest holder in Yalleen and majority partner in the Red Hill and Cullen JV’s in the West Pilbara] as managers of the project to mitigate the risks relating to exploration and development of the Yalleen Project.

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Yalleen field trip January 2007 7
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Helix Resources Limited Annual Report 2007

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Figure 4: Glenburgh Location Plan

GLENBURGH PROJECT – WESTERN AUSTRALIA Helix Resources Limited 100% EL 09/1325, 09/1079, 09/1278-1289

The regional exploration at the Glenburgh Project has been successful in defining a series of gold systems in the Southern Gascoyne region in addition to the Victoria Bore Grid area. The geochemical targeting, initially from broad spaced streams and then a series of in-fill soil and hand-auger programs, has successfully defined 5 priority drilling targets within the broader prospect areas. The regional program was aimed at identifying enough new target areas to define a critical number of ounces required to support a stand alone operation in the region.

The anomalies defined to date are all within a 50km radius of the original Victoria Bore Grid gold deposits. The Victoria Bore area hosts an inferred gold resource of 1.1Mt @ 3.1g/t for 108,000oz Au as well as numerous unclassified gold mineralised intercepts.

Exploration activities on the Glenburgh Project has comprised the collection and analysis of 1,200 stream sediment samples, 6,000 Soil samples, 100 Auger samples and 100 rock chip samples. In addition to the acquisition and analysis of ASTER imagery, detailed geological mapping has been carried out on several of the prospect areas.

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The field work in 2007 c o m m e n c e d w i t h r e g i o n a l s u r f a c e geochemical sampling, followed by infill sampling at the Firebird, Barracuda and Challenger prospects, defining drilling targets in these new gold systems. Infill sampling at North East 3 prospect within the extensions of the Victoria Bore grid also defined robust gold in soil drilling targets.

Figure 5: Location of Priority Drill Targets at the Glenburgh Project

Helix Resources Limited Annual Report 2007

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At the Firebird Prospect, sampling has identified numerous pods of +50ppb Au in soil within the main anomaly approximately 350m x 40m (Max 2.5g/t Au) surrounded by several smaller gold in soil anomalies (50-100m in strike).

At the Barracuda East Prospect a +50ppb, 150m x 60m Au in soil anomaly (Max 3.1g/t Au) appears to be controlled by structure. Several other anomalies in this area, up to 250m in strike, are also being assessed. Present indications suggest that gold anomalism is associated with shallow to moderately plunging parasitic folds within fine-grained quartz-feldsparbiotite gneiss along a regional E-NE trend. Recent mapping in the area identified calc-silicate and sulphide alteration within the target zone, as well as localised magnetite alteration in the granodiorite surrounding the gneiss.

At Challenger, the previously announced soil anomalism appears to have scope for an extension along strike. A new gold in soil anomaly separated from the main anomaly by a 3km zone of leached saprolite and a creek catchment, returned assays up to 0.8g/t Au in soils.

At the North East 3 prospect, two distinct zones of +50ppb gold anomalism have been defined from infilling a historical 100m x 100m soil grid. The southwest anomaly is a tight, well defined anomaly of dimensions 550m x 50m, with four pods of greater than 0.1g/t Au. The northwest anomaly has a larger low-grade halo surrounding several >50ppb Au pods, the largest having dimensions of 200m x 100m.

The first-pass 5,000m slim-line RC drilling program is scheduled to commence over the prioritised targets early in the third quarter of 2007.

Regional Exploration

Several copper vein systems in the project area have been investigated by limited mapping and rock chip traverse sampling to assess the style, size and grade of the occurrences. Most occurrences are associated with late stage shears and faults in biotite

Figure 6: Selected gold in soil contours shears and faults in biotite granodiorite and veining within chert/quartzite units on a broadly WNW to NW trend.

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Best results returned from this sampling included rock chips with 2.8% Cu / 0.37g/t Au and 1.9%Cu / 0.23g/t Au. All occurrences have a consistent low grade Au and Zn association with gold grade generally correlating with copper.

Glenburgh field visit April 2007 9

Helix Resources Limited Annual Report 2007

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Glenburgh April 2007: Unseasonal rains close roads for the day

Field investigation of several airborne radiometric Uranium (U) and/or Thorium (Th) anomalies during the second quarter of 2007 consisted of total count scintillometer, rock chip and soil sampling. Several low-order radiometric features are associated with dissected palaeodrainage material including calcretes with the more significant radiometric features associated with deeply weathered migmatite and gneiss of the Moogie Metamorphics. On ground bedrock total count anomalies are located in weathered granitic to pegmatoidal textured

bands and shears. Anomalous results for Mo to 10.5ppm, V to 385ppm and Th to 85.8ppm were returned. Whilst potential ore grade U or Th mineralisation has not been identified from the limited work, the above elevated element association and modes of occurrence suggest that the area remains prospective for U and/or Th mineralisation.

A single rock chip sample of ferruginous quartz vein taken along strike from the North East 3 Prospect area returned a palladium assay of 0.3g/t Pd along with elevated Se, Te and Au. This result and several elevated Cr results to 894ppm in soils and rock chips throughout the project area has highlighted the need for further investigation of PGM and base metal occurrences.

LAKE EVERARD (INCL. TUNKILLIA) PROJECT – SOUTH AUSTRALIA

Helix Resources Limited 100%, Minotaur Exploration Limited earning 51%

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Toro Energy Limited earning 51% of Uranium Rights EL 3403, EL 2854 and EL 3335

GOLD

Joint venture partner and project manager, Minotaur Exploration Ltd, has continued infill resource drilling carrying out 4,200m of RC drilling and 7,700m of slimline RC drilling into the Area 223 Prospect at Tunkillia in South Australia. The work is part of their $5 million spend to earn 51% of the project and culminated in the estimation of a new resource of gold and silver for the Area 223 prospect.

In summary, the resource consists of a mineralisation inventory of 800,000oz gold and 1,600,000oz silver to a depth of 200m below surface. Full details of the methodology were released by Minotaur during the year.

Figure 7: Lake Everard JV location Plan

Helix Resources Limited Annual Report 2007

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The resource estimation was made after additional
drilling by Minotaur during 2006-07 highlighted an
extended area of gold mineralisation within the
oxide zone and increased the level of confidence in
the coherence of the oxide zone capping to the
Tunkillia mineralisation.
Higher grade intersections are generally spatially
associated with a highly weathered mafic dyke which
strikes approximately grid N-S through Area 223.
TORO URANIUM JV
Toro Energy is earning 51% of the uranium rights of
our Gawler Craton tenements by spending $2m over
3 years. Toro has defined a significant portion of the
Kingoonya Palaeochannel System on the Yellabinna
JV (EL3335) area utilising airborne EM and plans to explore several “previously unexplored radiometric
anomalies” located within a string of lakes which occur along the palaeochannel course.
Oxide:
5.7Mt @ 1.3g/t for 230,000 oz Gold
(0.5g/t cutoff)

Measured: 1.2Mt @ 1.8 g/t Au – 66,000oz
Indicated: 2.0Mt @ 1.3g/t Au – 86,000oz
Inferred: 2.5Mt @ 1.0g/t Au – 77,000oz
Primary:
8.6Mt @ 2.1g/t for 570,000 oz Gold
(1.0g/t cutoff)
Indicated: 4.2Mt @ 2.0 g/t Au – 270,000oz
Inferred: 4.4Mt @ 2.1 g/t Au – 300,000oz
8.6Mt @ 5.7g/t for 1,600,000 oz Silver
(estimated for blocks with >1g/t Au)
Indicated: 4.2Mt @ 5.7g/t Ag – 770,000oz
Inferred: 4.4Mt @ 5.7g/t Ag – 810,000oz

Preliminary work identified that historical drilling by Dampier Mining Company for coal confirmed the presence of Tertiary palaeochannel sequences. These sequences contain sands, which may provide porous and transmissive zones for possible uranium bearing solutions, and carbonaceous mudstone lithologies which could provide an important chemical trap component to the roll front model being pursued.

The airborne EM survey conducted by Toro in 2006 resulted in the identification of five (5) priority palaeochannel uranium targets on EL3335. Each target area will have holes drilled 100-200m apart on fence lines to transect the palaeochannels to fresh basement. Toro Energy Ltd has been carrying out a regional aircore drilling program during 2007 on its neighbouring JV projects. This drilling program is expected to be completed shortly wherein the rig is scheduled to move to other palaeochannel targets which include the Yellabinna JV targets. However as this area is located on the eastern edge of South Australia’s Yellabinna Regional Reserve, several environmental access conditions must be met prior to drilling.

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Figure 8: Lake Everard Uranium target positions on EM image.
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WEST PILBARA PROJECT – WESTERN AUSTRALIA Helix Resources Limited 100% E47/1075, 1169-1171, 1144-1145 ELA47/1089-90 & 1146, MLA 47/786-794

The West Pilbara Project consists of the tenements retained by Helix after the spin off of its platinum assets in 2006. These tenements cover a diverse range of Archaean and Proterozoic lithologies and are considered prospective for Radio Hill Style nickel deposits in the northen areas, VMS/VHMS style gold and base metals in the Fortescue and Hamersley groups as well as diamonds in the intruding kimberlite dyke swarms identified in the area.

During the year, reconnaissance field work was conducted with rock chip samples, soil samples and stream sediment samples collected. A helicopter Figure 9: West Pilbara (incl. Yalleen JV) Tenements assisted ground magnetic traverse was carried out over the Radio Hill style nickel target area. An Airborne Geophysics survey and Hy-mapper hyperspectral interpretation for the West Pilbara Project has been re-scheduled to the 3rd quarter of 2007 due to contractors being committed to other clients. The additional information obtained from this aeromagnetic survey should allow a refined model for targeting of the previously reported possible buried Radio Hill style Ni target.

A reconnaissance trip during January 2007 to an area, a 2km x 1km zinc anomaly identified within regional exploration stream sediment samples, resulted in the identification and limited sampling of a sulphide and magnetite bearing chert and wacke units. Future field programs, including mapping and sampling, will focus initially on this target and several other base metal targets in the tenement package.

Hyperspectral imagery and contractor interpretations of this data are due during August and are expected to highlight areas of alteration indicative of possible mineralised systems. In-house interpretation of the output images and prioritisation of areas for field investigation will be incorporated with a regional geochemical sampling program planned for the 3rd quarter of 2007. This work is largely directed at advancing targeting for possible VMS style mineralisation

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Figure 10: Possible Buried Radio Hill Target in Regional Magnetics

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NORTHAMPTON PROJECT – WESTERN AUSTRALIA

Helix Resources Limited 100% ELA66/54-55

Helix’s project generation studies identified the Proterozoic aged Northampton Inlier as an under explored, but highly prospective precious and base metal target. The region was one of the first mining centres in Western Australia. Copper and lead was mined from high grade lensoidal lodes from the 1850s, with the addition of zinc in the 1920s, then all three metals sporadically through to the 1970s when base metal prices slumped making mining uneconomic.

Northampton: Field inspection of historic copper-lead deposits.

Helix took advantage of the recent changes in tenement legislation in WA to peg two +175 Block EL’s over a significant portion of the Northampton belt. The rationale was to target areas under shallow recent cover for “Blind” ore bodies, given that the majority of the historical workings outcropped at surface.

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During the year Helix has carried out an extensive literature review documenting the styles of known mineralisation as well as investigating several possible models that may exist in the area. Work to date has also included a consideration of effective exploration techniques for the area.

Complementing these studies, field reconnaissance work was carried out to assess the potential for larger hydrothermal and/or strata-bound precious and base metal deposits on the Northampton Project.

Lead sulphide bearing base metal breccia vein mineralisation typical of the Northampton Project Area

ADELAIDE GEOSYNCLINE - SOUTH AUSTRALIA

Helix Resources Limited 100% ELA570/06, EL3814, ELA299/07

A series of conceptual gold and base metal targets in the Adelaide Geosyncline of South Australia have been identified from reprocessed geophysical data including magnetics, gravity and radiometric images.

Mapping and sampling of areas of outcrop has been conducted over the Fleurieu Project (ELA570/06) for incorporation with historic stream sediment sampling data and geophysical data interpretations. The results of a more detailed sampling program are expected later in the year. The compilation of this work will identify priority areas for further exploration during the 2007-2008 field season.

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Locastion Map Adelaide Geosyncline Tenements 13

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Target zones for base metal mineralisation have been identified within the Parachilna Project (EL3814). These priority areas are based on historical data and additional interpretation of geophysical and mapping datasets.

The Olary Project consists of two licence applications and covers an area of 1400km² located SW of the historical rare-earth/uranium Radium Hill Mine (produced 852 tonnes U³O[8] to 1960). Although a similar style of bedrock mineralisation is unlikely to outcrop on the Helix application areas, there remains potential for areas undercover and also has scope for palaeo-channel Uranium.

The exploration model for the Olary project suggests several late-stage granites are associated with the gold and base metal occurrences in the district. Several prospects and historical workings containing gold, copper, silver and bismuth are located within the application areas and provide encouragement that the granites may have influenced the development of larger mineral deposits. These targets will be assessed and systematically explored upon granting of the tenements.

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Helix Resources Limited: Project Areas

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves on other projects is based on information compiled by Mr M Wilson who is a full time employee of Helix Resources Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr M Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr M Wilson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Helix Resources Limited Annual Report 2007

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Corporate Governance

CORPORATE GOVERNANCE

The Company is committed to implementing the highest standards of corporate governance. In determining what those high standards should involve the Company has turned to the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations . The Company is pleased to advise that the Company’s practices are largely consistent with those ASX guidelines. As consistency with the guidelines has been a gradual process, where the Company did not have certain policies or committees recommended by the ASX Corporate Governance Council (the Council) in place during the reporting period, we have identified such policies or committees.

Where the Company’s corporate governance practices do not correlate with the practices recommended by the Council, the Company does not consider that the practices are appropriate for the Company due to the size of Company operations.

To illustrate where the Company has addressed each of the Council’s recommendations, the following table cross-references each recommendation with sections of this report. The table does not provide the full text of each recommendation but rather the topic covered. Details of all of the recommendations can be found on the ASX Corporate Governance Council’s website at http://www.asx.com.au/CorporateGovernance.

Recommendation	Section
Recommendation 1.1 Functions of the Board and Management	1.1
Recommendation 2.1 Independent Directors	1.2
Recommendation 2.2 Independent Chairman	1.2
Recommendation 2.3 Role of the Chairman	1.2
Recommendation 2.4 Establishment of Nomination Committee	2.3
Recommendation 2.5 Reporting on Principle 2	1.2, 1.4.6, 2.3.2 and the Directors’ Report
Recommendation 3.1 Directors’ and Key Executives’ Code of Conduct	1.1 and 3
Recommendation 3.2 Company Security Trading Policy	1.4.9
Recommendation 3.3 Reporting on Principle 3	1.1 and 1.4.9
Recommendation 4.1 Attestations by Executive Chairman	1.4.11
Recommendation 4.2 Establishment of Audit Committee	2.1
Recommendation 4.3 Structure of Audit Committee	2.1.2
Recommendation 4.4 Audit Committee Charter	2.1
Recommendation 4.5 Reporting on Principle 4	2.1
Recommendation 5.1 Policy for Compliance with Continuous Disclosure	1.4.4
Recommendation 5.2 Reporting on Principle 5	1.4.4
Recommendation 6.1 Communications Strategy	1.4.8
Recommendation 6.2 Attendance of Auditor at General Meetings	1.4.8
Recommendation 7.1 Policies on Risk Oversight and Management	2.1.3
Recommendation 7.2 Attestations by Executive Chairman	1.4.11
Recommendation 7.3 Reporting on Principle 7	2.1.3
Recommendation 8.1 Evaluation of Board, Directors and Key Executives	1.4.10
Recommendation 9.1 Remuneration Policies	2.2.4
Recommendation 9.2 Establishment of Remuneration Committee	2.2
Recommendation 9.3 Executive and Non-Executive Director Remuneration	2.2.4.1 and 2.2.4.2
Recommendation 9.4 Equity-Based Executive Remuneration	2.2.4.1
Recommendation 9.5 Reporting on Principle 9	2.2.2 and 2.2.4
Recommendation 10.1 Company Code of Conduct	3
~~15~~

Helix Resources Limited Annual Report 2007

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1. Board of Directors

1.1 Role of the Board

The Board’s role is to govern the Company rather than to manage it. In governing the Company, the Directors must act in the best interests of the Company as a whole. It is the role of senior management to manage the Company in accordance with the direction and delegations of the Board and the responsibility of the Board to oversee the activities of management in carrying out these delegated duties.

In carrying out its governance role, the main task of the Board is to drive the performance of the Company. The Board must also ensure that the Company complies with all of its contractual, statutory and any other legal obligations, including the requirements of any regulatory body. The Board has the final responsibility for the successful operations of the Company.

To assist the Board carry out its functions, it has developed a Code of Conduct to guide the Directors, the Chairman and other key executives in the performance of their roles.

1.2 Composition of the Board

To add value to the Company the Board has been formed so that it has effective composition, size and commitment to adequately discharge its responsibilities and duties. The names of the Directors and their qualifications and experience are stated in Directors’ Report along with the term of office held by each of the Directors. Directors are appointed based on the specific governance skills required by the Company and on the independence of their decision-making and judgment.

The Company recognises the importance of Non-Executive Directors and the external perspective and advice that Non-Executive Directors can offer. Mr J den Dryver and Mr G Dunbar are Non-Executive Directors. In addition to being Non-Executive Directors, they also meet the following criteria for independence adopted by the Company.

An Independent Director is a Non-Executive Director and:

is not a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a substantial shareholder of the Company;
within the last three years has not been employed in an executive capacity by the Company or another group member, or been a Director after ceasing to hold any such employment;
within the last three years has not been a principal of a material professional adviser or a material consultant to the Company or another group member or an employee materially associated with the service provided;
is not a material supplier or customer of the Company or another group member, or an officer of or otherwise associated directly or indirectly with a material supplier or customer;
has no material contractual relationship with the Company or other group member other than as a Director of the Company;
has not served on the Board for a period which could, or could reasonably be perceived to, materially interfere with the Director’s ability to act in the best interests of the Company; and
is free from any interest and any business or other relationship which could, or could reasonably be perceived to, materially interfere with the Director’s ability to act in the best interests of the Company.

The structure of the Board did not comply with ASX recommendation 2.1 in that a majority of the Directors were not independent for the period from 1[st] June 2007.

The Company does not comply with ASX recommendation 2.2 in that the Chairman, Mr Greg J Wheeler, is not an independent Director. Mr Wheeler is the Managing Director and CFO and brings to the Board significant commercial experience and the Board does not believe that this has any adverse impact on Mr Wheeler carrying out his duties as Chairman.

1.3 Responsibilities of the Board

In general, the Board is responsible for, and has the authority to determine, all matters relating to the policies, practices, management and operations of the Company. It is required to do all things that may be necessary to be done in order to carry out the objectives of the Company.

Without intending to limit this general role of the Board, the principal functions and responsibilities of the Board include the following.

1. Leadership of the Organisation : overseeing the Company and establishing codes that reflect the values of the Company and guide the conduct of the Board.

2. Strategy Formulation : working with senior management to set and review the overall strategy and goals for the Company and ensuring that there are policies in place to govern the operation of the Company.

3. Overseeing Planning Activities : overseeing the development of the Company’s strategic plan and approving that plan as well as the annual and long term budgets.

4. Shareholder Liaison : ensuring effective communications with shareholders through an appropriate communications policy and promoting participation at general meetings of the Company.

5. Monitoring, Compliance and Risk Management : overseeing the Company’s risk management, compliance, control and accountability

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systems and monitoring and directing the financial and operational performance of the Company.

6. Company Finances : approving expenses in excess of those approved in the annual budget and approving and monitoring acquisitions, divestitures and financial and other reporting.

7. Human Resources : appointing, and, where appropriate, removing senior management as well as reviewing and monitoring the performance of senior management in their implementation of the Company’s strategy.

8. Ensuring the Health, Safety and Well-Being of Employees : in conjunction with the senior management team, developing, overseeing and reviewing the effectiveness of the Company’s occupational health and safety systems to ensure the well-being of all employees.

9. Delegation of Authority : delegating appropriate powers to the Executive Chairman to ensure the effective day-to-day management of the Company and establishing and determining the powers and functions of the Committees of the Board.

1.4 Board Policies

1.4.1 Conflicts of Interest

Directors must:

disclose to the Board actual or potential conflicts of interest that may or might reasonably be thought to exist between the interests of the Director and the interests of any other parties in carrying out the activities of the Company; and
if requested by the Board, within seven days or such further period as may be permitted, take such necessary and reasonable steps to remove any conflict of interest.

If a Director cannot or is unwilling to remove a conflict of interest then the Director must, as per the Corporations Act , absent himself or herself from the room when discussion and/or voting occurs on matters about which the conflict relates.

1.4.2 Commitments

Each member of the Board is committed to spending sufficient time to enable them to carry out their duties as a Director of the Company.

1.4.3 Confidentiality

In accordance with legal requirements and agreed ethical standards, Directors and key executives of the Company have agreed to keep confidential, information received in the course of the exercise of their duties and will not disclose non-public information except where disclosure is authorised or legally mandated.

1.4.4 Continuous Disclosure

The Board has designated the Company Secretary as the person responsible for overseeing and coordinating disclosure of information to the ASX as well as communicating with the ASX. In accordance with the ASX Listing Rules the Company immediately notifies the ASX of information:

concerning the Company that a reasonable person would expect to have a material effect on the price or value of the Company’s securities; and
that would, or would be likely to, influence persons who commonly invest in securities in deciding whether to acquire or dispose of the Company’s securities.

Upon confirmation of receipt from the ASX, the Company posts all information disclosed in accordance with this policy on the Company’s website in an area accessible by the public.

1.4.5 Education and Induction

New Directors undergo an induction process in which they are given a full briefing on the Company. Where possible, this includes meetings with key executives, site visits of key operations, an induction package and presentations. Information conveyed to new Directors include:

details of the roles and responsibilities of a Director;
formal policies on Director appointment as well as conduct and contribution expectations;
details of all relevant legal requirements;
access to a copy of the Board Charter;
Guidelines on how the Board processes function;
details of past, recent and likely future developments relating to the Board;
background information on and contact information for key people in the organisation;
an analysis of the Company;
a synopsis of the current strategic direction of the Company including a copy of the current strategic plan and annual budget; and

Helix Resources Limited Annual Report 2007

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� a copy of the Constitution of the Company.

In order to achieve continuing improvement in Board performance, all Directors are encouraged to undergo continual professional development.

1.4.6 Independent Professional Advice

The Board collectively and each Director has the right to seek independent professional advice at the Company’s expense, up to specified limits, to assist them to carry out their responsibilities.

1.4.7 Related Party Transactions

Related party transactions include any financial transaction between a Director and the Company and will be reported in writing to each Board meeting. Unless there is an exemption under the Corporations Act from the requirement to obtain shareholder approval for the related party transaction, the Board cannot approve the transaction.

1.4.8 Shareholder Communication

The Company respects the rights of its shareholders and to facilitate the effective exercise of those rights the Company is committed to:

communicating effectively with shareholders through releases to the market via ASX, the Company’s website, information mailed to shareholders and the general meetings of the Company;
giving shareholders ready access to balanced and understandable information about the Company and corporate proposals;
making it easy for shareholders to participate in general meetings of the Company; and
requesting the external auditor to attend the annual general meeting and be available to answer shareholder questions about the conduct of the audit and the preparation and content of the auditor’s report.

The Company also makes available a telephone number and email address for shareholders to make enquiries of the Company.

1.4.9 Trading in Company Shares

The Company has a Share Trading Policy under which Directors and certain employees and their associates may only trade in the Company’s securities during the 30 days commencing immediately after each of the following (“trading window”):

the release by the Company of its half-yearly results to the ASX;
the release by the Company of its annual results to the ASX;
the close of the general meeting of the Company; and
the release by the Company of its Quarterly Reports or Exploration Updates to the ASX.

In addition, consistent with the law, designated officers are prohibited from trading in the Company’s securities while in the possession of unpublished price sensitive information concerning the Company. Unpublished price sensitive information is information regarding the Company, of which the market is not aware, that a reasonable person would expect to have a material effect on the price or value of the Company’s securities.

Notice of an intention to trade must be given prior to trading in the Company’s securities as well as a confirmation that the person is not in possession of any unpublished price sensitive information. The completion of any such trade by a Director must also be notified to the Company Secretary who in turn advises the ASX.

1.4.10 Performance Review/Evaluation

Each year the Board conducts an evaluation of its performance. The evaluation for this and past financial years was conducted internally. The Board’s performance was measured against both qualitative and quantitative indicators. The objective of this evaluation was to identify strengths and weaknesses and provide best practice corporate governance to the Company. In future years this process may carried out by an external consultant.

1.4.11 Attestations by Executive Chairman

In accordance with the Board’s policy, the Executive Chairman made the attestations recommended by the ASX Corporate Governance Council as to the Company’s financial condition prior to the Board signing this Annual Report.

2. Board Committees

2.1 Audit Committee

Due to the size and scale of operations of the Company, the full Board undertakes the role of the Audit Committee and hence does not comply with ASX recommendations 4.1 and 4.3. Below is a summary of the role and responsibilities of the Audit Committee. Further details are contained in the Audit Committee’s Charter.

2.1.1 Role

The Audit Committee is responsible for reviewing the integrity of the Company’s financial reporting and overseeing the independence of the external auditors.

Helix Resources Limited Annual Report 2007

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2.1.2 Composition

The Audit Committee consists of four members, being the full Board. All members can read and understand financial statements and are otherwise financially literate. The details of the member’s qualifications may be found in their Director Profiles in the Directors’ Report.

The Audit Committee holds two meetings throughout a normal year and details of attendance of the members of the Audit Committee are contained in the Directors’ Report.

2.1.3 Responsibilities

The Audit Committee reviews the audited annual and half-yearly financial statements and any reports which accompany published financial statements before submission to the Board and recommends their approval.

The Audit Committee also recommends to the Board the appointment of the external auditor and each year, reviews the appointment of the external auditor, their independence, the audit fee, and any questions of resignation or dismissal.

The Audit Committee is also responsible for establishing policies on risk oversight and management.

2.2 Remuneration Committee

Due to the size and scale of operations of the Company, the full Board undertakes the role of the Remuneration Committee and hence does not comply with ASX recommendation 9.2.

2.2.1 Role

The role of the Remuneration Committee is to assist the Board in fulfilling its responsibilities in respect of establishing appropriate remuneration levels and incentive policies for employees.

2.2.2 Composition

The full Board comprises the Remuneration Committee.

The Remuneration Committee holds meetings as required throughout the year.

2.2.3 Responsibilities

The responsibilities of the Remuneration Committee include setting policies, terms and conditions of employment for senior executives’ remuneration, reviewing and implementing the Company’s incentive schemes and superannuation arrangements, reviewing the remuneration of both Executive and Non-Executive Directors and undertaking an annual review of the senior executives’ performance, including, setting with the Executive Chairman goals for the coming year and reviewing progress in achieving these goals.

2.2.4 Remuneration Policy

The Senior Executives’ Remuneration Policy was approved by resolution of the Board in July 2006 and the Non-Executive Director Remuneration Policy was also approved by resolution of the Board in July 2006.

2.2.4.1 Senior Executive Remuneration Policy

The Company is committed to remunerating its senior executives in a manner that is market-competitive and consistent with best practice as well as supporting the interests of shareholders. Consequently, under the Senior Executive Remuneration Policy the remuneration of senior executive may be comprised of the following:

fixed salary that is determined from a review of the market and reflects core performance requirements and expectations;
a performance bonus designed to reward actual achievement by the individual of performance objectives and for materially improved Company performance;
participation in share/option schemes with thresholds approved by shareholders; and
statutory superannuation.

By remunerating senior executives through performance and long-term incentive plans in addition to their fixed remuneration the Company aims to align the interests of senior executives with those of shareholders and increase Company performance. Details of the remuneration, including both monetary and non-monetary components, for each of the Executives during the year are included in the Directors’ Report.

The Board may use its discretion with respect to the payment of bonuses, stock options and other incentive payments.

2.2.4.2 Non-Executive Director Remuneration Policy

Non-Executive Directors are paid their fees out of the maximum aggregate amount approved by shareholders for the remuneration of Non-Executive Directors. Non-Executive Directors do not receive performance based bonuses.

Non-Executive Directors are entitled to statutory superannuation.

2.2.5 Current Director Remuneration

The aggregate amount of remuneration payable to Non-Executive Directors was approved by shareholders in 1996 and is currently $150,000. Details 19

Helix Resources Limited Annual Report 2007

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of the remuneration received by all of the Company’s Directors are contained in the Directors’ Report.

2.3 Nomination Committee

2.3.1 Role

The role of a Nomination Committee is to help achieve a structured Board that adds value to the Company by ensuring an appropriate mix of skills are present in Directors on the Board at all times.

As the whole Board only consists of four members, the Company does not comply with ASX recommendation 2.4 in that there is no separate nomination committee because it would not be a more efficient mechanism than the full Board for focusing the Company on specific issues .

2.3.2 Responsibilities

The responsibilities of a Nomination Committee include devising criteria for Board membership, regularly reviewing the need for various skills and experience on the Board and identifying specific individuals for nomination as Directors for review by the Board. The Nomination Committee would also oversee management succession plans and evaluates the Board’s performance and makes recommendations for the appointment and removal of Directors.

2.3.3 Criteria for selection of Directors

Directors are appointed based on the specific governance skills required by the Company. Given the size of the Company and the business that it operates, the Company aims at all times to have at least one Director with experience in the Company’s industry, appropriate to the Company’s market. In addition, Directors should have the relevant blend of personal experience in:

accounting and financial management;
legal skills; and
CEO-level business experience.

3. Company Code Of Conduct

As part of its commitment to recognising the legitimate interests of stakeholders, the Company has an established a Code of Conduct to guide compliance with legal and other obligations to legitimate stakeholders. These stakeholders include employees, clients, customers, government authorities, creditors and the community as whole. This Code includes the following.

Responsibilities to Shareholders and the Financial Community Generally

The Company complies with the spirit as well as the letter of all laws and regulations that govern shareholders’ rights. The Company has processes in place designed to ensure the truthful and factual presentation of the Company’s financial position and prepares and maintains its accounts fairly and accurately in accordance with the generally accepted accounting and financial reporting standards.

Responsibilities to Clients, Customers and Consumers

Each employee has an obligation to use their best efforts to deal in a fair and responsible manner with each of the Company’s clients, customers and consumers. The Company for its part is committed to providing clients, customers and consumers with fair value.

Employment Practices

The Company endeavours to provide a safe workplace in which there is equal opportunity for all employees at all levels of the Company. The Company does not tolerate the offering or acceptance of bribes or the misuse of Company assets or resources.

Obligations Relative to Fair Trading and Dealing

The Company aims to conduct its business fairly and to compete ethically and in accordance with relevant competition laws. The Company strives to deal fairly with the Company’s customers, suppliers, competitors and other employees and encourages it employees to strive to do the same.

Responsibilities to the Community

As part of the community the Company:

is committed to conducting its business in accordance with applicable environmental laws and regulations and encourages all employees to have regard for the environment when carrying out their jobs;
encourages all employees to engage in activities beneficial to their local community; and
supports community charities.

Responsibility to the Individual

The Company is committed to keeping private information from employees, clients, customers, consumers and investors confidential and protected from uses other than those for which it was provided.

Helix Resources Limited Annual Report 2007

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Conflicts of Interest

Employees and Directors must avoid conflicts as well as the appearance of conflicts between personal interests and the interests of the Company.

How the Company Complies with Legislation Affecting its Operations

Within Australia, the Company strives to comply with the spirit and the letter of all legislation affecting its operations. Outside Australia, the Company will abide by local laws in all countries in which it operates. Where those laws are not as stringent as the Company’s operating policies, particularly in relation to the environment, workplace practices, intellectual property and the giving of “gifts”, Company policy will prevail.

How the Company Monitors and Ensures Compliance with its Code

The Board, management and all employees of the Company are committed to implementing this Code of Conduct and each individual is accountable for such compliance. Disciplinary measures may be imposed for violating the Code.

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Glenburgh Field Trip June 2007

Helix Resources Limited Annual Report 2007

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Directors’ Report

In respect of the financial year ended 30 June 2007, the Directors of Helix Resources Limited, (the parent entity), submit the financial report. In order to comply with the provisions of the Corporations Act 2001, the Director’s report as follows:

DIRECTORS

The following persons held office as Directors of Helix Resources Limited during or since the end of the financial year and up to the date of this report:

Greg J Wheeler BCom; FCA; SF Fin; GAICD

Executive Chairman; Managing Director and Chief Financial Officer – 14[th] July 2006 to present Non-Executive Director – 1 July 2005 to 14[th] July 2006 Appointed 25 October 2004

Mr Wheeler is a Fellow of the Institute of Chartered Accountants in Australia and the Financial Services Institute of Australasia, and has operated in many of the major accounting practices for the past 25 years in Australia and overseas. Greg was a Partner at the Chartered Accounting practices of Grant Thornton [1990 to 1999] and Deloitte Touche Tohmatsu [1999 to 2002], before establishing his own consulting firm in 2002. His consulting skills include:- company and business valuations, advice to directors/shareholders; acquisitions and divestitures, corporate governance; commercial negotiations and risk assessment and mitigation.

Greg is currently the CEO and CFO of Helix, and during 2002/3 was the Chairman of Acclaim Exploration NL, an Australian listed nickel explorer. His current responsibilities include shareholder wealth strategies, capital raisings and broker presentations, joint venture contractual negotiations and corporate governance.

Michael Wilson B Ec; B Sc (Hons); MAusIMM

Executive Technical Director Appointed 1 June 2007

Mr Wilson has been with the company for ten years. In this time he has played a major roles at Tunkillia on the Gawler Craton, South Australia and in the exploration for gold, platinum group metals and base metals in the Proterozoic Terranes of New South Wales and South Australia, and the Proterozoic and Archaean Terranes in Western Australia. Michael’s experience includes project management; mineral exploration using geology, geochemistry, geophysics and drilling; ore resource drilling, ore resource calculation and evaluation programs; and monitoring joint venture projects.

Michael leads our team of experienced geologists and technical staff and is also completing his Masters of Business Administration and Masters of Mineral Economics part-time at Curtin University.

John den Dryver BE (Mining) MSc FAusIMM (CP)

Non-Executive Director Appointed 25 October 2004

Mr den Dryver is a mining engineer with some 30 years mining experience in operational and corporate management. John joined Mount Isa Mines in 1973. In 1982, John joined North Flinders Mines as the Company Mining Engineer. He became the Operations Manager for North Flinders after the mine was commissioned in 1986 and over the next 10 years managed the operations as well as developing the further discoveries in this region including the Callie Mine. In 1987 he was invited to join the Board of North Flinders to become Executive Director- Operations. In 1997 after Normandy Mining took over North Flinders, John was appointed Executive General Manager-Technical leading a team of specialist geologists, mining engineers and metallurgists in operational support, technical review and due-diligence activities. In 2003, after the takeover of Normandy by Newmont Corporation John set up his own mining consultancy business.

Gordon Dunbar BSc Hons, MSc, FAusIMM (CP), FAIG

Non-Executive Director Appointed 18 July 2006

Mr Dunbar is a consulting geologist with forty years experience in the Australian minerals industry managing project development, mineral exploration and evaluation programmes, mine geology, financial studies, production assessment and monitoring joint venture projects. Gordon’s experience includes exploration and mining geology roles at Kambalda with WMC, the evaluation of the Golden Grove base metal deposit in WA, the Chief Geologist at Rosebery Mine in Tasmania and management roles with BP Australia undertaking financial studies, monitoring the evaluation of the Olympic Dam deposit and as Exploration manager for BP Minerals.

Gordon formed his own consulting group in 1990 to provide advice on exploration, evaluation, mining geology, project assessment and pre-feasibility studies, particularly those involving gold, base metals and nickel. He has worked on projects within Australia and Internationally.

The following persons resigned as Directors of Helix Resources Ltd during or since the financial year to the date of this report:-

Robert W Mosig MSc, FAusIMM, FAICD Non-Executive Chairman Resigned 18 July 2006

Riccardo E Vittino

Chief Executive Officer / Company Secretary Resigned 14 July 2006

Helix Resources Limited Annual Report 2007

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DIRECTORSHIPS OF OTHER LISTED COMPANIES

Directorships of other listed companies held by directors in the 3 years immediately before the end of the financial year are as follows:

Name
John den Dryver
Greg Wheeler
JOINT COMPANY
Greg J Wheeler
Joneen McNamara

Company
Period of directorship
Nustar Mining Corporation Limited
23 December 2003 – 31 May 2007
Adelaide Resources Limited
18 April 2005 – current
Platina Resources Ltd
28 March 2006 – 31 January 2007
SECRETARIES
Mr Wheeler is a Chartered Accountant with over 25 years experience in accounting, company secretarial and
corporate management.

Mrs McNamara is an Accountant and has completed Chartered Secretaries Australia’s Graduate Diploma in Applied
Corporate Governance.

PRINCIPAL ACTIVITIES

The principal activity of the Group constituted by Helix Resources Limited and the entities it controlled during the year consisted of gold, iron ore and base metal mineral exploration. There has been no significant change in the nature of these activities during the year.

FINANCIAL RESULTS

The net consolidated loss of the Group for the financial period, after provision for income tax was $187,904 (2006: $4,762,498).

DIVIDENDS

No dividend has been paid since the end of the previous financial year and no dividend is recommended for the current period.

REVIEW OF OPERATIONS

The Consolidated entities activities are contained in releases to the ASX on a quarterly basis. Highlights include:-

IRON ORE

1[st] pass regional drilling commenced November 2006 at the Yalleen Iron Ore Joint Venture byJV partner API (Aquila/AMCI) as part of their $1.5m commitment to earn a 70% interest in iron ore rights. Drilling has intersected channel iron (CID), at depth and close to surface, on a broad spaced drill pattern.
Yalleen Iron Joint Venture partners agree to 10,000m drilling in a $2.3m exploration program for the 2007-2008 field season. The drilling will infill the Kumina Creek Prospect to a sufficient level to facilitate a resource calculation, as well as test additional channel iron and bedded iron targets identified from the 2006 Hoist EM survey and field mapping.
Helix has assessed the Yalleen Iron Ore Project to have the potential to host a series of significant iron ore deposits over an area in excess of 25km², with the most advanced drilled target [Kumina Creek] having the potential for in excess of 100Mt of CID at grades of between 57% and 60% Fe.

GOLD

Glenburgh Project - Numerous drilling targets have been defined from gold in soil anomalies at Firebird (up to 2.5g/t Au), Barracuda East (up to 3.1g/t Au), Barracuda South (up to 0.6g/t Au), Challenger (up to 0.8g/t Au) and North East 3 (up to 0.6 g/t Au). The Company has now secured heritage and environmental clearances after some delays and a drilling contractor has been secured to complete a 5,000m slimline RC drilling program commencing August.
Tunkillia Project - JV partner and manager Minotaur Exploration calculated a new resource for Area 223 – comprising a total of 800,000oz Au and 1,600,000oz Ag to a depth of 200m from surface. Economic studies are underway.

URANIUM

Uranium JV partner - Toro Energy are awaiting environmental approvals before testing five (5) priority palaeo-channel uranium targets on Helix’s Lake Everard tenements.

GENERATIVE

Field examination of the South Australian Adelaidian Projects has identified a series of base metal targets including copper mineralisation on the Parachilna Project and Gold/Tungsten anomalism at the Fleurieu Project. The recent acquisition of an additional 1400km² of tenement applications in the Olary District, (an area prospective for gold, base metals and uranium) signals the company’s return to active exploration in South Australia.

The Group reported a loss of $187,904 during the year after expending $1.2m in exploration, writing off $0.25m of carried forward exploration costs and realising $0.9m from investments.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

In the opinion of the Directors, other than disclosed elsewhere in this Report, there were no significant changes in the state of affairs of the Group that occurred during the period under review.

Helix Resources Limited Annual Report 2007

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SUBSEQUENT EVENTS

There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

FUTURE DEVELOPMENTS

Disclosure of information regarding likely developments in the operations of the Group in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the Group. Accordingly, this information has not been disclosed in this report.

REMUNERATION REPORT

The Company’s Executive Officers’ remuneration policy is set to ensure that remuneration packages properly reflect the duties and responsibilities of the senior executives and are sufficient to attract, retain and motivate personnel of the requisite quality. The policy is administered by the Remuneration Committee, which is composed of all board members. The Executive Officers of the Company are employed under Service Agreements which are all identical in their contents and only differ in remuneration levels. They have durations of twenty four months and renew automatically unless terminated by either the Company by giving twelve months notice to the individual; or by the individual by giving six months notice to the Company. The level of remuneration is not dependent on the satisfaction of any performance condition.

Non-executive Directors are remunerated by fees determined by the Board within the aggregate Directors’ fee pool limit of $150,000 approved by shareholders in April 1996. The pool limit is not at present fully utilised. In setting the fees, account is taken of the responsibilities inherent in the stewardship of the Company and the demands made of Directors in the discharge of their responsibilities. Advice is taken from independent consultancy sources where appropriate to ensure remuneration accords with market practice.

The company has largely adopted the ASX Corporate Governance Council’s Principles of Good Corporate Governance and Best Practice Recommendations and decided to remunerate its non-executive directors on an ongoing basis with no accrual or entitlement to a retirement benefit.

Remuneration packages contain the following key elements:

a) Primary benefits – salary / fees and performance based bonuses; b) Post employment benefits – prescribed retirement benefit; and c) Equity – share options granted under the executive share option plan as disclosed in note 17 to the financial statements.

The following table discloses the remuneration of the directors and executives of the company:

		Primary		Post Employment	Post Employment		Equity	Equity
2007	Salary & Fees	Perfor- mance Based	Non Monet- ary	Super- annuation	Pre- scribed Benefits	Other Retire- ment	Options	% of Remu- neration	Other Bene- fits	Total
		Payment				Benefits
	$	$	$	$	$	$	$	%	$	$
Key
Management
Personnel
G J Wheeler	82,900	-	-	-	-	-	100,000	120	-	182,900
M H Wilson	117,355	7,246	-	10,562	-	-	66,250	33	-	201,413
J den Dryver	40,000	-	-	-	-	-	20,000	33	-	60,000
G Dunbar	40,000	-	-	-	-	-	20,000	33	-	60,000
R W Mosig	1,916	-	-	-	-	-	-	-	-	1,916
R E Vittino	141,577	-	-	-	-	-	-	-	-	141,577
Total Key
Management	423,748	7,246	-	10,562	-	-	206,250		-	647,806
Personnel

Value of Options issued to directors

The value attributed to the Equity Option is calculated using the Black Scholes Model. No cash has been paid by the individuals. The value of the Options will only be realised if and when the market price of Helix shares, as quoted by the Australian Stock Exchange, rises above the Exercise Price of the options. Further details of the options are contained in note 17 to the financial statements.

Helix Resources Limited Annual Report 2007

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KEY MANAGEMENT PERSONNELS’ SHARE OPTIONS

Pursuant to approval at Shareholders’ meetings, executives and employees are entitled to subscribe for ordinary shares on the terms agreed to by the Shareholders. At the date of this report current and past directors and executives are entitled to purchase an aggregate of 4,335,000 ordinary shares of Helix Resources Limited according to the following terms:

	Key Management Personnel G J Wheeler M H Wilson J den Dryver G Dunbar Total M H Wilson M H Wilson M H Wilson	Number of Executive Options Held 2,000,000 1,325,000 400,000 400,000 4,335,000 70,000 70,000 70,000	Issuing Entity Helix Resources Limited Helix Resources Limited Helix Resources Limited Helix Resources Limited Helix Resources Limited Helix Resources Limited Helix Resources Limited	Exercise Price $0.26 $0.26 $0.26 $0.26 $0.50 $0.46 $0.42	Expiry Date 30.11.2008 30.11.2008 30.11.2008 30.11.2008 31.03.2009 31.03.2009 31.03.2009	Number of ordinary shares under option 2,000,000 1,325,000 400,000 400,000 4,335,000 70,000 70,000 70,000

DIRECTORS’ SHAREHOLDINGS

Director	*Fully Paid	*Listed Options	*Staff Options
	Ordinary Shares
G J Wheeler	3,329,501	-	2,000,000
M H Wilson	15,000	-	1,535,000
J den Dryver	-	-	400,000
G Dunbar	100,000	-	400,000

Directors’ interests in ordinary shares and options of the parent entity are shown at the date of this Directors’ Report.

OFFICERS’ INDEMNITY AND INSURANCE

During the year the Company paid an insurance premium to insure the Directors and Officers of the Company and related bodies corporate. The Officers of the Company covered by the insurance policy include the Directors named in this report.

The Directors’ and Officers’ Liability insurance provides cover against all costs and expenses that may be incurred in defending civil or criminal proceedings that fall within the scope of the indemnity and that may be brought against the officers in their capacity as officers of the Company or a related body corporate. The insurance policy does not contain details of the premium paid in respect of individual officers of the Company. Disclosure of the nature of the liability cover and the amount of the premium is subject to a confidentiality clause under the insurance policy.

The Company has entered into an agreement with the Directors and Officers to indemnify them against any claim and related expenses, which arise as a result of work completed in their respective capacities.

The Company has not otherwise, during or since the financial year indemnified or agreed to indemnify an officer or auditor of the Company or of any related body corporate against a liability incurred as such an officer or auditor.

ENVIRONMENTAL REGULATIONS

The Group is subject to environmental regulations under laws of the Commonwealth and State. The Group has a policy of complying with its environmental performance obligations and at the date of this report, is not aware of any breach of such regulations.

Helix Resources Limited Annual Report 2007

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MEETINGS OF DIRECTORS

The number of meetings held during the year by Company Directors (including meetings of committees of Directors) and the number of those meetings attended by each Director was:

	G J Wheeler M H Wilson J den Dryver G Dunbar R W Mosig R E Vittino	Held Attended 6 6 - - 6 6 4 4 2 2 2 1 Board of Directors’ Meetings*	Remuneration Committee Meetings Held Attended* 1 1 - - 1 1 1 1 - - - -	Audit Committee Meetings Held Attended* 2 2 - - 2 2 2 2 - - - -

Reflects the number of meetings held during the time that the Director held office during the year.

NON-AUDIT SERVICES

The directors are satisfied that the provision of non-audit services, during the year, by the auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are outlined in note 25.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration is included on page 27 of the financial report.

Dated at Perth this 22nd day of August 2007.

This report is made and signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations Act 2001. On behalf of the Directors.

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Greg J Wheeler Executive Chairman

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Glenburgh Field Trip April 2007

Helix Resources Limited Annual Report 2007

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Independence Declaration

Helix Resources Limited Annual Report 2007

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INDEPENDENT AUDIT REPORT

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Helix Resources Limited Annual Report 2007

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Helix Resources Limited Annual Report 2007

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DIRECTORS’ DECLARATION

The Directors declare that:

a) In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable;
b) In the directors’ opinion, the attached financial statements and notes thereto and the remuneration disclosures that are contained in the Remuneration Report in the Directors’ Report are in accordance with the Corporations Act 2001, including compliance with accounting standards and the Corporations Regulations 2001 and giving a true and fair view of the financial position and performance of the Company and of the Group for the financial year ended 30 June 2007;
c) The remuneration disclosures that are contained in the Remuneration Report in the Directors’ Report comply with Australian Accounting Standard AASB 124 Related Party Disclosures: and
d) The directors have been given the declarations by the Executive Chairman required by s295A of the Corporations Act 2001.

Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Act 2001.

On behalf of the Directors

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Greg J Wheeler Executive Chairman

Signed at Perth this 22nd day of August 2007.

Helix Resources Limited Annual Report 2007

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BALANCE SHEET

BALANCE SHEET AS AT 30 JUNE 2007

Current Assets Cash and cash equivalents Trade and Other Receivables Financial Assets Total Current Assets	Note 2 3 4	2007 2006 $ $ 2,822,200 1,151,030 261,946 743,088 375,000 - 3,459,146 1,894,118 CONSOLIDATED	2007 2006 $ $ 2,822,200 1,151,030 261,946 743,088 375,000 - 3,459,146 1,894,118 CONSOLIDATED	COMPANY 2007 $ 2,822,200 261,946 375,000 3,459,146	2006 $ 1,151,028 743,088 - 1,894,116
Non-Current Assets
Financial Assets	4	2,000	2,890	2,000	3,815
Property, plant & equipment	6	170,937	184,516	170,937	184,516
Exploration and Evaluation	7	9,201,690	8,215,219	9,201,690	8,215,219
Other	5	98,000	154,583	98,000	154,583
Total Non-Current Assets		9,472,627	8,557,208	9,472,627	8,558,133
Total Assets		12,931,773	10,451,326	12,931,773	10,452,249
Current Liabilities
Trade and Other Payables	8	75,862	186,629	75,862	186,629
Provisions	9	11,695	25,785	11,695	25,785
Total Current Liabilities		87,557	212,414	87,557	212,414
Non- Current Liabilities
Provisions	9	31,585	21,953	31,585	21,953
Total Non-Current Liabilities		31,585	21,953	31,585	21,953
Total Liabilities		119,142	234,367	119,142	234,367
Net Assets		12,812,631	10,216,959	12,812,631	10,217,882
Equity
Share Capital	10	47,844,351	45,295,964	47,844,351	45,295,964
Other Reserves	11	284,463	50,197	284,463	50,197
Accumulated Losses	12	(35,316,183)	(35,129,202)	(35,316,183)	(35,128,279)
Total Equity		12,812,631	10,216,959	12,812,631	10,217,882

Notes to the financial statements are included on pages 35 to 53

Helix Resources Limited Annual Report 2007

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INCOME STATEMENT

INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

Revenue Employment Costs Audit and Accountancy Corporate Marketing Directors’ Fees Depreciation Impairment of Exploration and Evaluation Assets I T Costs	Note 13 14	CONSOLIDATED 2007 2006 $ $ 1,184,299 (903,442) (733,052) (449,038) (37,354) (31,920) (8,669) (68,998) (110,892) (69,500) (49,214) (44,530) (245,664) (2,983,021) (26,326) (33,235)	CONSOLIDATED 2007 2006 $ $ 1,184,299 (903,442) (733,052) (449,038) (37,354) (31,920) (8,669) (68,998) (110,892) (69,500) (49,214) (44,530) (245,664) (2,983,021) (26,326) (33,235)	COMPANY 2007 $ 1,184,299 (733,052) (37,354) (8,669) (110,892) (49,214) (245,664) (26,326)	2006 $ (903,442) (449,038) (31,920) (68,998) (69,500) (44,530) (2,983,021) (33,235)
Overhead Allocation to Exploration		138,219	-	138,219	-
Premises Costs		(138,375)	(35,566)	(138,375)	(35,566)
Professional Services		(46,165)	(9,353)	(46,165)	(9,353)
Travel expenses		(9,434)	(50,561)	(9,434)	(50,561)
Other General and Admin expenses		(105,277)	(83,334)	(105,277)	(83,334)
Loss before income tax		(187,904)	(4,762,498)	(187,904)	(4,762,498)
Income tax expense	19	-	-	-	-
Loss from continuing operations		(187,904)	(4,762,498)	(187,904)	(4,762,498)
Profit /(Loss) from discontinued operations		-	-	-	-
Loss for the year		(187,904)	(4,762,498)	(187,904)	(4,762,498)
Earnings / (Loss) per share
Basic (cents per share)	21	(0.2)	(5.36)
Diluted (cents per share)	21	(0.2)	(5.36)

Notes to the financial statements are included on pages 35 to 53

Helix Resources Limited Annual Report 2007

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CASH FLOW STATEMENT

CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

Cash Flow From Operating Activities Payments to suppliers and employees Interest received Other receipts Net cash used in operating activities Cash Flow From Investing Activities Payments for capitalised exploration & evalua- tion expenditure Payment for property, plant & equipment Proceeds from sale of property, plant & equip- ment	Note 2(b)	CONSOLIDATED 2007 2006 $ $ (675,370) (927,358) 104,588 88,303 147,583 83,768 (423,199) (755,287) (1,232,135) (1,735,847) (39,412) (77,511) - 16,000	CONSOLIDATED 2007 2006 $ $ (675,370) (927,358) 104,588 88,303 147,583 83,768 (423,199) (755,287) (1,232,135) (1,735,847) (39,412) (77,511) - 16,000	COMPANY 2007 $ (675,370) 104,588 147,583 (423,199) (1,232,135) (39,412) -	2006 $ (927,358) 88,303 83,768 (755,287) (1,735,847) (77,511) 16,000
Proceeds from sale of exploration and evalua- tion		-	150,000	-	150,000
Proceeds from sale of investments		511,394	515,376	511,394	515,376
Payments for security deposits		306,137	(326,483)	306,137	(326,483)
Net cash used in investing activities		(454,016)	(1,458,465)	(454,016)	(1,458,465)
Cash Flow From Financing Activities
Proceeds from issue of shares/options		2,548,387	1,920,753	2,548,387	1,920,753
Share issue costs paid		-	(191,844)	-	(191,844)
Net cash provided by financing activities		2,548,387	1,728,909	2,548,387	1,728,909
Net increase/(decrease) in cash held		1,671,172	(484,843)	1,671,172	(484,843)
Cash and cash equivalents at beginning of financial year		1,151,028	1,635,873	1,151,028	1,635,871
Cash and cash equivalents at End of Financial Year	2(a)	2,822,200	1,151,030	2,822,200	1,151,028

Notes to the financial statements are included on pages 35 to 53

Helix Resources Limited Annual Report 2007

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STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

	Total equity at the beginning of the financial year Shares issued during the financial year Exercise or Expiration of options during the financial year Loss attributable to members of the parent entity Adjustment to Opening Equity Total equity at the end of the financial year	CONSOLIDATED 2007 $ 10,216,959 2,705,378 78,198 (187,904) 12,812,631	2006 $ 13,250,548 1,728,909 - (4,762,498) - 10,216,959	COMPANY 2007 $ 10,217,882 2,705,378 78,198 (187,904) (923) 12,812,631	2006 $ 13,251,471 1,728,909 - (4,762,498) - 10,217,882

Notes to the financial statements are included on pages 35 to 53

Helix Resources Limited Annual Report 2007

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NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANACIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2007

1. SUMMARY OF ACCOUNTING POLICIES

Financial Reporting Framework

The financial report is a general-purpose financial report that has been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards and Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and complies with other requirements of the law. The financial report includes separate financial statements for Helix Resources Limited as an individual entity and the Group consisting of Helix Resources Limited and its subsidiaries.

Accounting policies

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified where applicable by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit or loss, certain classes of property, plant and equipment and investment property. A summary of the Group’s significant accounting policies is set out below.

a) Going Concern

The Directors have prepared the financial statements on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business.

The Group’s operations require it to raise capital on an on-going basis to fund its planned exploration program and to commercialise its tenement assets. If the Group does not raise capital in the short term, it can continue as a going concern by reducing planned but not committed exploration expenditure until funding is available and/or entering into joint venture arrangements where exploration is funded by the joint venture partner.

b) Principles of Consolidation

The consolidated financial statements are prepared by combining the financial statements of all the entities that comprise the Group, being the Company (the parent entity) and its subsidiaries as defined in accounting standards. A list of subsidiaries appears in note 4 to the financial statements. Consistent accounting policies are employed in the preparation and presentation of the consolidated financial statements.

The consolidated financial statements include the information and results of each subsidiary from the date on which the Company obtains control and until such time as the Company ceases to control such entity.

In preparing the consolidated financial statements, all intercompany balances and transactions, and unrealised profits arising within the Group are eliminated in full.

c) Cash and Cash Equivalents

Cash on hand and in banks and short term deposits are stated at nominal value. For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks, and money market investments readily convertible to cash within 90 days, net of outstanding bank overdrafts.

d) Income Tax

The income tax expense or revenue for the period is the tax payable on the current period's taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

e) Property, Plant and Equipment

Property, plant and equipment is stated at cost and is depreciated at rates based upon their expected useful lives to the Group. The carrying amount of property, plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. Expected net cash flows have not been discounted in determining recoverable amount. The depreciation rates used for each class of depreciable assets are:

Helix Resources Limited Annual Report 2007

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Plant and equipment Straight line 10% - 33% Diminishing Value 20% - 40% Motor Vehicles Diminishing Value 22.5%

f) Exploration and evaluation

Exploration and evaluation costs related to areas of interest are carried forward to the extent that:

(i) the rights to tenure of the areas of interest are current and the Group controls the area of interest in which the expenditure has been incurred; and
(ii) such costs are expected to be recouped through successful development and exploitation of the area of interest, or alternatively by its sale; or
(iii) exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets will be assessed annually for impairment and where impairment indicators exist, recoverable amounts of these assets will be estimated based on discounted cash flows from their associated cash generating units.

The income statement will recognise expenses arising from the excess of the carrying values of exploration and evaluation assets over the recoverable amounts of these assets. Expenditure capitalised under the above policy is amortised over the life of the area of interest from the date that commercial production of the related mineral occurs. In the event that an area of interest is abandoned or if the directors consider the expenditure to be of no value, accumulated costs carried forward are written off in the year in which that assessment 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.

g) Leases

Lease payments for operating leases where substantially all the risks and benefits remain with the lessor are charged as expenses in the periods in which they are incurred.

h) Investments

Investments in subsidiaries are held at cost. Other investments are valued at cost or recoverable amount. The carrying amount of investments is reviewed annually by Directors to ensure it is not in excess of the recoverable amount of these investments. The recoverable amount is assessed from the shares' current market value or the underlying net assets in the particular entities. Expected net cash flows have not been discounted in determining recoverable amounts.

i) Non-derivative financial instruments

Financial instruments are initially measured at cost on trade date, which includes transaction costs. Subsequent to initial recognition, these instruments are measured as set out below .

(i) Financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and those designated at fair value through profit or loss on initial recognition. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. The policy of management is to designate a financial asset if there exists the possibility it will be sold in the short term and the asset is subject to frequent changes in fair value. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date.

(ii) Loans and receivables

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. Loans and receivables are included in receivables in the balance sheet.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group's management has the positive intention and ability to hold to maturity.

(iv) Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date.

Purchases and sales of investments are recognised on trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income

Helix Resources Limited Annual Report 2007

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statement in the period in which they arise. Unrealised gains and losses arising from changes in the fair value of non monetary securities classified as available-for-sale are recognised in equity in the available-for-sale investments revaluation reserve.

When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities.

The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include reference to the fair values of recent arm's length transactions, involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer's specific circumstances.

The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss - is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement.

j) Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group designates certain derivatives as either; (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges).

The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.

k) Employee Benefits

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Provision is made in respect of wages and salaries, annual leave and other employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provision made in respect of long service leave which is not expected to be settled within 12 months is measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by the employees up to reporting date.

Share-based payments

Share-based compensation benefits are provided to employees via various Share Option Plans.

The fair value of options granted is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options.

The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradable nature of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

The fair value of the options granted excludes the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to become exercisable. At each balance sheet date, the entity revises its estimate of the number of options that are expected to become exercisable. The employee benefit expense recognised each period takes into account the most recent estimate.

Upon the exercise of options, the balance of the share-based payments reserve relating to those options is transferred to share capital. The market value of shares issued to employees for no cash consideration under the Share Plans is recognised as an employee benefits expense with a corresponding increase in equity when the employees become entitled to the shares.

l) Interest in Joint Venture Operations

Interest in joint venture operations, where material, are brought to account by including in the respective classifications, the Group's share of the individual assets employed and liabilities and expenses incurred.

Details of interests in joint ventures are shown at Note 22.

m) Revenue Recognition

Revenue from the disposal of assets is recognised when the Group has passed control of the goods or other assets to the buyer. Interest on bank deposits is recognised as income as it accrues.

Helix Resources Limited Annual Report 2007

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n) Accounts Payable

Trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments resulting from the purchase of goods and services.

o) Receivables

Other receivables are recorded at amounts due less any specific provision for doubtful debts.

p) Goods and Services Tax

Revenues, 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 taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or
for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. 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.

q) Acquisition of Assets

The purchase method of accounting is used to account for all acquisitions of assets (including business combinations) regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given, shares issued or liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition. Where equity instruments are issued in an acquisition, the value of the instruments is their published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that the published price at the date of exchange is an unreliable indicator of fair value and that other evidence and valuation methods provide a more reliable measure of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement, but only after a reassessment of the identification and measurement of the net assets acquired.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

r) Impairment of Assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).

s) Fair Value Estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Group is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

t) Provisions

Mine restoration and rehabilitation costs are provided for at the present value of future expected expenditures required to settle the Group’s obligations on commencement of commercial production, discounted using a rate specified to the liability. When this provision is recognised a corresponding asset is also recognised as part of the development costs of the mine to the extent that it is considered that the provision gives access to future economic benefits. On an ongoing basis, the rehabilitation liability is re-measured at each reporting period in line with the changes in the time value of money (recognised as an expense in the income statement and an increase in the provision), and additional disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding asset and rehabilitation liability.

Provisions for legal claims are recognised when the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in

Helix Resources Limited Annual Report 2007

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settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to anyone item included in the same class of obligations may be small.

u) New standards and interpretations not yet adopted

The following standards, amendments to standards and interpretations have been identified as those which may impact the entity in the period of initial application. They are available for early adoption at 30 June 2007, but have not been applied in preparing this financial report:

AASB 7 Financial Instruments: Disclosures (August 2005) replaces the presentation requirements of financial instruments in AASB 132. AASB 7 is applicable for annual reporting periods beginning on or after 1 January 2007, and will require extensive additional disclosures with respect to the Group’s financial instruments and share capital.
AASB 2005-10 Amendments to Australian Accounting Standards (September 2005) makes consequential amendments to AASB 132 Financial Instruments: Disclosure and Presentation, AASB 101 Presentation of Financial Statements, AASB 114 Segment Reporting, AASB 117 Leases, AASB 133 Earnings Per Share, AASB 139 Financial Instruments: Recognition and Measurement, AASB 1 First –time Adoption of Australian Equivalents to International Financial Reporting Standards, AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts arising from the release of AASB 7. AASB 2005-10 is applicable for annual reporting periods beginning on or after 1 January 2007 and is expected to only impact disclosures contained within the consolidated financial report.
AASB 8 Operating Segments replaces the presentation requirements of segment reporting in AASB 114 Segment Reporting. AASB 8 is applicable for annual reporting periods beginning on or after 1 January 2009 and is not expected to have an impact on the financial results of the Company and the Group as the standard is only concerned with disclosures.

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Glenburgh Field Trip June 2007

Helix Resources Limited Annual Report 2007

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2. NOTES TO THE CASH FLOW STATEMENT a) Reconciliation of Cash

For the purposes of the cash flow statement and balance sheet, cash and cash equivalents include cash on hand and in banks, and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet as follows

	Cash at Bank Cash on deposit Total Cash	2007 $	CONSOLIDATED 20,355 2,801,845 2,822,200	2006 $	39,942 1,111,088 1,151,030	2007 $	COMPANY 20,355 2,801,845 2,822,200	2006 $	39,940 1,111,088 1,151,028

b) Reconciliation of loss after income tax to cash flows used in operations

	Loss after income tax Non-cash flows in Loss Depreciation Impairment of Exploration and evaluation Issuance /(Cancellation) of employee options (Gain)/loss on sale of investments Loss on sale of property, plant and equipment Changes in Net Assets and Liabilities (Increase)/Decrease in Assets (Increase)/decrease in trade and other receivables (Increase)/decrease in other current assets Increase/(Decrease) in Liabilities Increase/(decrease) in trade and other payables Increase/(decrease) in Provisions	CONSOLIDATED 2007 $ (187,904) 49,214 245,664 234,266 (884,579) 3,777 231,588 - (110,767) (4,458)	2006 $ (4,762,498) 44,530 2,983,021 - 1,071,793 3,717 (85,113) 47,665 (28,227) (30,175)	COMPANY 2007 $ (187,904) 49,214 245,664 234,266 (884,579) 3,777 231,588 - (110,767) (4,458)	2006 $ (4,762,498) 44,530 2,983,021 - 1,071,793 3,717 (85,113) 47,665 (28,227) (30,175)
	Net Cash used in Operations	(423,199)	(755,287)	(423,199)	(755,287)

c) Non-cash Transactions

Shares to the value of $150,000 in Crusader Holdings NL were received as part consideration from Crusader Holdings NL for the sale of the Lake Throssell project.

3. TRADE AND OTHER RECEIVABLES

	CONSOLIDATED			COMPANY
	2007	2006	2007		2006
	$	$	$		$
Prepayments - Insurances	36,589	21,848		36,589	21,848
Prepayments – Tenement application and rents	166,112	308,485		166,112	308,485
Deposits – Financial Institutions	-	249,554		-	249,554
Other	59,245	163,201		59,245	163,201
Total Current Receivables	261,946	743,088		261,946	743,088

Helix Resources Limited Annual Report 2007

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4. FINANCIAL ASSETS

	Current: Available – for – sale financial assets: Shares in listed corporations – at fair value Total Current Financial Assets Fair value of shares in listed corporations Non-Current: Shares in unlisted companies – at cost Shares in subsidiaries – at cost (4a) Shares in listed corporations – at cost Total Non-Current Financial Assets Fair value of shares in listed corporations	CONSOLIDATED 2007 $ 375,000 375,000 375,000 - - 2,000 2,000 2,000	2006 $	- - - 890 - 2,000 2,890 2,000	2007 $	375,000 375,000 375,000 - - 2,000 2,000 2,000 COMPANY	2006 $	- - - 890 925 2,000 3,815 2,000

4(a) Shares in subsidiaries

	Name Hillview Mining NL Helix Mining Investment P/L	Country of Incorporation Australia Australia	Percentage Held 2007 100% 100%	Percentage Held 2006 100% 100%

5. OTHER ASSETS

	Non-Current Security Deposits Total Other Assets – Non-Current	CONSOLIDATED 2007 $ 98,000 98,000	2006 $ 154,583 154,583	2007 $	COMPANY 98,000 98,000	2006 $ 154,583 154,583

Helix Resources Limited Annual Report 2007

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6. PROPERTY, PLANT AND EQUIPMENT

	Gross Carrying Amount Balance at 30 June 2006 Additions Disposals Balance at 30 June 2007 Accumulated Depreciation Balance at 30 June 2006 Disposals Depreciation Balance at 30 June 2007 Net Book Value 30 June 2006 30 June 2007	CONSOLIDATED AND COMPANY Plant & Equipment $ 432,744 29,658 (12,106) 450,296 319,854 (8,330) 32,367 343,891 112,890 106,405	Motor Vehicles $ 110,583 9,753 - 120,336 38,957 - 16,847 55,804 71,626 64,532	Total $ 543,327 39,411 (12,106) 570,632 358,811 (8,330) 49,214 399,695 184,516 170,937

7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT)

	Balance at beginning of the financial year Disposals at written down value Expenditure incurred during the year Impairment losses Balance at the end of the financial year	CONSOLIDATED 2007 $ 8,215,219 - 1,232,135 (245,664) 9,201,690	2006 $ 11,201,564 (1,739,172) 1,735,848 (2,983,021) 8,215,219	COMPANY 2007 $ 8,215,219 - 1,232,135 (245,664) 9,201,690	2006 $ 11,201,564 (1,739,172) 1,735,848 (2,983,021) 8,215,219

The Directors' assessment of carrying amount was after consideration of prevailing market conditions; previous expenditure carried out on the tenements; and the potential for mineralisation based on both the entity's and independent geological reports. The ultimate value of these assets is dependent upon recoupment by commercial development or the sale of the whole, or part, of the Group's interests in those areas for an amount at least equal to the carrying value. There may exist, on the Group’s exploration properties, areas subject to claim under native title or containing sacred sites or sites of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject to exploration and mining restrictions.

Helix Resources Limited Annual Report 2007

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8. TRADE AND OTHER PAYABLES (CURRENT) Trade payables 9. PROVISIONS Current Employee Benefits Balance at end of financial year Non -Current Employee Benefits Balance at end of financial year 10. SHARE CAPITAL 114,101,589 Fully Paid Ordinary Shares (2006: 95,866,927) Listed Options (2006: 19,139,475) Balance at end of financial year Fully Paid Ordinary Shares Balance at beginning of financial year Share placement through Rights Issues Share Issue Costs Exercise of Options to Fully Paid Shares Balance at end of financial year Listed Options Balance at beginning of financial year	CONSOLIDATED 2007 2006 $ $ 75,862 186,629 11,695 25,785 11,695 25,785 31,585 21,953 31,585 21,953 47,844,351 45,138,972 - 156,992 47,844,351 45,295,964 2007 No. $ 95,866,927 45,138,972 - - - - 18,234,662 2,705,379 114,101,589 47,844,351 19,139,475 156,992	CONSOLIDATED 2007 2006 $ $ 75,862 186,629 11,695 25,785 11,695 25,785 31,585 21,953 31,585 21,953 47,844,351 45,138,972 - 156,992 47,844,351 45,295,964 2007 No. $ 95,866,927 45,138,972 - - - - 18,234,662 2,705,379 114,101,589 47,844,351 19,139,475 156,992	COMPANY 2007 $ 75,862 11,695 11,695 31,585 31,585 47,844,351 - 47,844,351 2006 No. 76,670,730 19,167,830 - 28,367 95,866,927 16,437,863	2006 $ 186,629 25,785 25,785 21,953 21,953 45,138,972 156,992 45,295,964 $ 43,409,956 1,916,783 (187,874) 107 45,138,972 157,099
Options expired during financial year	(904,813)	-	(16,437,863)	-
Options issue through Rights Issue	-	-	19,167,842	-
Exercise of Options to Fully Paid Shares	(18,234,662)	(156,992)	(28,367)	(107)
Balance at end of financial year	-	-	19,139,475	156,992

Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends. Listed options carry no votes until converted to fully paid ordinary shares.

Helix Resources Limited Annual Report 2007

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11. OTHER RESERVES

	Options Reserve Balance at beginning of financial year Cancellation of Terminated Employees Incentive Op- tions Issue of Employee Incentive Options Balance at end of financial year	CONSOLIDATED 2007 2006 $ $ 50,197 50,197 (40,734) - 275,000 - 284,463 50,197	COMPANY 2007 $ 50,197 (40,734) 275,000 284,463	2006 $	50,197 - - 50,197

12. ACCUMULATED LOSSES

	Balance at beginning of financial year Net Loss attributable to members of the parent entity Adjustment to opening balance Balance at end of financial year	(35,129,202) (187,904) 923 (35,316,183)	(30,366,704) (4,762,498) - (35,129,202)	(35,128,279) (187,904) - (35,316,183)	(30,365,781) (4,762,498) - (35,128,279)

13. REVENUE

Loss before Income Tax includes the following items of revenue and expense:

Operating Activities Interest Revenue Sale of Menzies MLA’s to Heron Resources Tenement Rental Reimbursements Other Total Operating Revenue Non-Operating Activities	CONSOLIDATED 2007 2006 $ $ 104,588 88,303 - 73,286 132,270 - 15,313 6,762 252,171 168,351	CONSOLIDATED 2007 2006 $ $ 104,588 88,303 - 73,286 132,270 - 15,313 6,762 252,171 168,351	COMPANY 2007 $ 104,588 - 132,270 15,313 252,171	2006 $ 88,303 73,286 - 6,762 168,351
Profit from sale of shares in Scimitar Resources	-	55,376	-	55,376
Profit from sale of shares in AIR NL	502,000	-	502,000	-
Profit from sale of shares in Black Range	9,394	-	9,394	-
Revaluation of Crusader Holdings NL	225,000	-	225,000	-
Cancellation of Employee Incentive Options	40,734	-	40,734	-
Total Non – Operating Revenue	777,128	55,376	777,128	55,376
Sale of Mineral Areas
Loss from Sale of Menzies Highway Nickel Project to Heron Resources	-	(183,398)	-	(183,398)
Loss from sale of Munni Munni, Fifield and Mt Venn tenements to Platina Resources.	-	(943,771)	-	(943,771)
Profit from Sale of Lake Throssell and Mt Venn East projects to Crusader Holdings NL	155,000	-	155,000	-
Total Revenue from Sale of Mineral Areas	155,000	(1,127,169)	155,000	(1,127,169)
Total Revenues	1,184,299	(903,442)	1,184,299	(903,442)

Helix Resources Limited Annual Report 2007

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14. LOSS FOR THE YEAR Expenses

15. COMMITMENTS a) Operating Lease Commitments Depreciation of non-current assets: Property, plant and equipment Exploration and evaluation expenditure written off Operating lease rental expenses: Minimum lease payments Loss for the year Not later than 1 year Laterthan 1yearbutnotlaterthan 2years	49,214 245,644 122,276 (187,904) 95,000 40,000 135,000	44,530 2,983,021 33,804 (4,762,498) 65,000 65,000 130,000	49,214 245,644 122,276 (187,904) 95,000 40,000 135,000	44,530 2,983,021 33,804 (4,762,498) 65,000 65,000 130,000

The Company exercised its option to renew the operating lease for a further period of two years. As at balance date there was a balance of 17 months remaining.

b) Exploration Expenditure Commitments

In order to maintain current rights of tenure to exploration tenements, the company and Group are required to perform minimum exploration work to meet the requirements specified by various State governments. These obligations can be reduced by selective relinquishment of exploration tenure or application for expenditure exemptions. Due to the nature of the company and Group’s operations in exploring and evaluating areas of interest, it is very difficult to forecast the nature and amount of future expenditure. It is anticipated that expenditure commitments for the next twelve months will be tenement rentals of $112,000 (2006:$57,007) and exploration expenditure of $2,140,000 (2006: $519,800). JV parties earning their interest in various tenements may effectively meet a portion of these commitment costs.

16. KEY MANAGEMENT PERSONNELS’ REMUNERATION

This note should be read in conjunction with the disclosures contained in the Remuneration Report section of the Directors’ Report.

The key management personnel of Helix Resources Limited during the year were:

• • • • • •	G J Wheeler J den Dryver G Dunbar M H Wilson R W Mosig R E Vittino	– Executive Chairman, CEO and CFO 14 July 2006 to present, Non-executive Director 1 July 2005 to 14 July 2006 – Non-executive Director – Non-executive Director (appointed 18 July 2006) – Executive Technical Director (appointed 1 June 2007) – Non-executive Chairman – resigned 18 July 2006 – Chief Executive Officer – resigned 14 July 2006

The Company’s Executive Officers’ remuneration policy is set to ensure that remuneration packages properly reflect the duties and responsibilities of the senior executives and are sufficient to attract, retain and motivate personnel of the requisite quality. The policy is administered by the Remuneration Committee, which is composed of all board members. Remuneration packages are reviewed and determined with due regard to current market rates and are benchmarked against comparable industry salaries. The Executive Officers of the Company are employed under Service Agreements which are all identical in their contents and only differ in remuneration levels. They have durations of twenty four months and renew automatically unless terminated by either the Company by giving twelve months notice to the individual; or by the individual by giving six months notice to the Company.

Non-executive Directors are remunerated by fees determined by the Board within the aggregate Directors’ fee pool limit of $150,000 approved by shareholders in April 1996. The pool limit is not at present fully utilised. In setting the fees, account is taken of the responsibilities inherent in the stewardship of the Company and the demands made of Directors in the discharge of their responsibilities. Advice is taken from independent consultancy sources to ensure remuneration accords with market practice.

Helix Resources Limited Annual Report 2007

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2006 Key Management Personnel R W Mosig R E Vittino G J Wheeler J denDryver M H Wilson Total 2007 Key Management Personnel G J Wheeler M H Wilson J den Dryver G Dunbar R W Mosig R E Vittino Total	Salary & Fees $ 168,864 125,500 30,000 30,000 98,623 452,987 Salary & Fees $ 82,900 117,355 40,000 40,000 1,916 141,577 423,748	Primary Perfor- mance Based Payment $ - - - - - - Primary Perfor- mance Based Payment $ - 7,246 - - - - 7,246	Non Montary $ - - - - - - Non Monetary $ - - - - - - -	Post Employment Supera- nnuation Pre- scribed Benefits $ $ 12,000 - 12,000 - - - - - 8,876 - 32,876 - Post Employment Supera- nnuation Pre- scribed Benefits $ $ - - 10,562 - - - - - - - - - 10,562 -	Other Retire- ment Benefits $ Other Retire- ment Benefits $	- - - - - - - - - - - - -	Equity Options $ - - - - - - Equity Options $ 100,000 66,250 20,000 20,000 - - 206,250	Other Benefits $ - - - - - - Other Benefits $ - - - - - - -	Total $ 180,864 137,500 30,000 30,000 107,499 485,863 Total $ 182,900 201,413 60,000 60,000 1,916 141,577 647,806

Equity Options were issued to the Management Team and employees after shareholder approval was received at the Company’s Shareholder Meeting on 10[th] April 2007. The value attributed to the Equity Option was calculated using the Black Scholes Model using the following input:

		Issued 10 April 2007
	Grant date share price	$0.215
	Exercise price	$0.26
	Exercise volatility	110%
	Option life	1.6 years
	Dividend yield	-
	Risk-free interest rate	6.1%

No amounts are paid or payable by the recipient on receipt of the option. The value of the options will only be realised if and when the market price of Helix shares, as quoted by the Australian Stock Exchange, rises above the Exercise Price of the options. Further details of the options are contained in note 17 to the financial statements.

Helix Resources Limited Annual Report 2007

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17. EXECUTIVE SHARE OPTION PLAN

As at 30 June 2007 the Company had issued 6,625,000 share options (30 June 2006 3,450,000). Share options carry no rights to dividends and no voting rights. The difference between the total market value of options issued during the financial year, at the date of issue, and the total amount received from executives and employees is not recognised in the financial statements except for the purposes of determining key management personnels’ remuneration in respect of that financial year. The amounts are disclosed in remuneration in respect of the financial year in which the entitlement was earned.

Further details are disclosed below:

	Executive Share Option Plan Balance at beginning of financial year (i) Cancelled during the financial year (ii) Granted during the financial year (iii) Exercised during the financial year (iv) Balance at end of financial year (v)	2007 No. 3,450,000 (950,000) 4,125,000 - 6,625,000	Weighted average exercise price $0.46 - $0.26 - $0.36	2006 No. 3,450,000 - - - 3,450,000	Weighted average exercise price $0.46 - - - $0.46

(i) Balance at beginning of financial year

	Options - Series Issued 26 May 1999 Issued 26 May 1999 Issued 26 May 1999 Issued 11 Nov 2003 Issued 11 Nov 2003 Issued 11 Nov 2003	No. 416,665 416,667 416,668 733,335 733,333 733,332 3,450,000	Vested 416,665 416,667 416,668 733,335 733,333 733,332	Unvested - - - - - -	Grant Date 26/5/99 26/5/99 26/5/99 11/11/03 11/11/03 11/11/03	Expiry Date 29/3/09 29/3/09 29/3/09 29/3/09 29/3/09 29/3/09	Exercise Price $ $0.42 $0.46 $0.50 $0.42 $0.46 $0.50	Fair value at grant date Not valued Not valued Not valued 9.36c per option 8.84c per option 8.37c per option

(ii) Cancelled during the financial year

Options - Series Issued 26 May 1999	No. 133,333	Vested 133,333	Unvested -	Grant Date 26/5/99	Expiry Date 29/3/09	Exercise Price $ $0.42	Fair value at grant date Not valued
Issued 26 May 1999	133,333	133,333	-	26/5/99	29/3/09	$0.46	Not valued
Issued 26 May 1999	133,334	133,334	-	26/5/99	29/3/09	$0.50	Not valued
Issued 11 Nov 2003	183,334	183,334	-	11/11/03	29/3/09	$0.42	9.36c per option
Issued 11 Nov 2003	183,333	183,333	-	11/11/03	29/3/09	$0.46	8.84c per option
Issued 11 Nov 2003	183,333	183,333	-	11/11/03	29/3/09	$0.50	8.37c per option
	950,000	950,000

There were no options cancelled during the year ended 30 June 2006

Helix Resources Limited Annual Report 2007

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(iii) Granted during the financial year

	Options - Series Issued 10 April 2007	No. 4,125,000 4,125,000	Grant Date 10/4/07	Expiry Date 30/11/08	Exercise Price $ $0.26	Fair Value Received $ -

There were no options granted during the year ended 30 June 2006.

(iv) Exercised during the financial year

There were no employee options exercised during the financial years ended 30 June 2007 and 2006.

(v) Balance at end of the financial year

	Options Series Issued 26 May 1999 Issued 26 May 1999 Issued 26 May 1999 Issued 11 Nov 2003 Issued 11 Nov 2003 Issued 11 Nov 2003 Issued 10 April 2007	No. 283,332 283,334 283,334 550,001 550,000 549,999 4,125,000 6,625,000	Vested 283,332 283,334 283,334 550,001 550,000 549,999 4,125,000 6,625,000	Unvested - - - - - - -	Grant Date 26/5/99 26/5/99 26/5/99 11/11/03 11/11/03 11/11/03 10/4/07	Expiry Date 29/3/09 29/3/09 29/3/09 29/3/09 29/3/09 29/3/09 30/11/08	Exercise Price $ $0.42 $0.46 $0.50 $0.42 $0.46 $0.50 $0.26	Fair value at grant date Not valued Not valued Not valued 9.36c per option 8.84c per option 8.37c per option $0.05 per option

Fair value of consideration received is measured as the nominal value of cash receipts on conversion. The fair value of shares at the date of their issue is measured as the market value at close of trade on the date of their issue.

Employee share options carry no rights to dividends and no voting rights. In accordance with the terms of the executive share option plan, options may be exercised at any time from the date the vesting period ends to the date of their expiry.

The difference between the total market value of options issued during a financial year, at the date of issue, and the total amount received from executives and employees is not recognised in the financial statements except for the purposes of determining key management personnels’ remunerations in respect of that financial year as disclosed in note 16 to the financial statements. The amounts are disclosed in remuneration in respect of the financial years over which the entitlement was earned.

Consideration received on the exercise of executive options is recognised in contributed equity. During the financial year no options were exercised, hence no amount was recognised in contributed equity arising from the exercise of executive options (2006: $nil)

18. RELATED PARTY AND DIRECTORS’ DISCLOSURES

a) Other Transactions with key management personnel

The loss from ordinary activities before income tax includes the following items of expenses that resulted from transactions other than remuneration with key management personnel or their personally-related entities. Transactions between related parties are on normal commercial terms and conditions unless otherwise stated.

Greg Wheeler Consulting Pty Ltd provided professional services to the value of $158,869 (2006 $78,785) payable within 30 days from date of invoice (net of GST). Mr Greg Wheeler, a Director, has significant influence in Greg Wheeler Consulting Pty Ltd. There were no balances outstanding at 30 June 2007 to Mr Greg Wheeler.

Dunbar Resource Management provided professional services to the value of $4,600 (2006 nil) payable within 30 days from date of invoice (net of GST). Mr Gordon Dunbar, a Director, has significant influence in Dunbar Resource Management. There were no balances outstanding at 30 June 2007 to Mr Gordon Dunbar.

Helix Resources Limited Annual Report 2007

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b) Key Management Personnels’ Equity Holdings Fully paid ordinary shares issued by Helix Resources Limited

It should be noted that Messrs Vittino and Mosig resigned on 14thand 18thJuly 2006 respectively, and therefore the balance of securities held as at 30
June 2007 is nil as they are no longer specified directors and therefore the net change is not as a result of the sale of any securities whilst a specified
director.
Listed Share Options issued by Helix Resources Limited

Balance @
1/7/06

No.
Granted as
remuneration

No.
Received on
exercise of
options
No.
Net other
change

No.
Balance @
30/6/07

No.
Balance held
nominally

No.
Key Management
Personnel

G J Wheeler
700,000
-
-
2,129,501
2,829,501
-
M H Wilson
12,500
-
2,500
-
15,000
-
J den Dryver
-
-
-
-
-
-
G Dunbar
-
-
-
100,000
100,000
-
R W Mosig
2,485,346
-
-
(2,485,346)
-
-
R E Vittino
1,410,000
-
-
(1,410,000)
-
-
Total
4,607,846
-
2,500
(1,665,845)
2,944,501
-

Bal @ 1/7/06

No.
Granted as re-
muneration
No.
Exercised

No.
Other change

No.
Bal @ 30/6/07

No.
Balance held
nominally
No.
Key Management
Personnel

G J Wheeler
-
-
-
-
-
-
M H Wilson
2,500
-
(2,500)
-
-
-
J. den Dryver
-
-
-
-
-
-
G Dunbar
-
-
-
-
-
-
R W Mosig
857,516
-
-
(857,516)
-
-
R E Vittino
400,000
-
-
(400,000)
-
-
Total
1,260,016
-
(2,500)
(1,257,516)
-
-

It should be noted that Messrs Vittino and Mosig resigned on 14[th] and 18[th] July 2006 respectively, and therefore the balance of securities held as at 30 June 2007 is nil as they are no longer directors and therefore the net change is not as a result of the sale of any securities whilst a specified director.

Executive Share Options issued by Helix Resources Limited

	Bal @	Granted as	Exer-		Other		Bal @	Bal vested	Vested	Vested and	Options
	1/7/06	remuneration	cised		change		30/6/07	@ 30/6/07	but not	exercis-	vested
									exer-	able	during
									ciseable		year
	No.	No.	No.		No.		No.	No.	No.	No.	No.
Key
Management
Personnel
G Wheeler	-	2,000,000		-		-	2,000,000	2,000,000	-	2,000,000	-
M H Wilson	210,000	1,325,000		-		-	1,535,000	1,535,000	-	1,535,000	-
J denDryver	-	400,000		-		-	400,000	400,000	-	400,000	-
G Dunbar	-	400,000		-		-	400,000	400,000	-	400,000	-
R W Mosig	1,600,000	-		-	(1,600,000)		-	-	-	-	-
R E Vittino	900,000	-		-		-	900,000	900,000	-	900,000	-
A R Martin	950,000	-		-	(950,000)		-	-	-	-	-
Total	3,660,000	4,125,000		-	(2,550,000)		5,235,000	5,235,000	-	5,235,000	~~49~~ -

Helix Resources Limited Annual Report 2007

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Each executive share option converts into 1 ordinary share of Helix Resources Limited on exercise. No amounts are paid or payable by the recipient on receipt of the option.

During the financial year, no executive share options were exercised by key management personnel.

Further details of the options granted during the year are contained in note 16 and 17 to the financial statements.

	19. INCOME TAX CONSOLIDATED COMPANY
	2007 2006 2007 2006
	Accounting loss before tax from continuing operations (187,904) (4,762,498) (187,904) (4,762,498)
	Accounting loss before tax from discontinuing operations - - - -
	Accounting loss before tax (187,904) (4,762,498) (187,904) (4,762,498)

	Income Tax Expense to Accounting Loss
	Tax expense at the statutory income tax rate of 30% (56,371) (1,428,749) (56,371) (1,428,749)
	Sundry non-deductible (deductible) expenses
	- non-deductible expenses - 1,464 - 1,464
	- revaluation of investments (66,956) - (66,956) -
	- taxable gain on sale of tenements (12,713) 299,400 (12,713) 299,400
	- employee incentive options 82,500 - 82,500 -
	Benefit of tax losses and temporary differences not brought to account 53,540 1,127,885 53,540 1,127,885
	Income tax expense - - - -

	Income Statement
	Current income tax charge (306,962) (331,057) (306,962) (331,057)
	Deferred income tax
	Relating to origination and reversal of temporary differences 253,422 (796,828) 253,422 (796,828)
	Current year tax losses not recognised in the current period 53,540 1,127,885 53,540 1,127,885
	Income tax expense reported in income statement - - - -

	Unrecognised Deferred Tax Balances:
	Unrecognised deferred tax asset losses 12,185,129 11,395,447 11,587,885 10,798,203
	Unrecognised deferred tax assets other 19,256 24,145 19,256 24,145
	Unrecognised deferred tax liabilities (2,809,213) (2,557,111) (2,809,213) (2,557,111)
	Net Unrecognised deferred tax assets 9,395,173 8,862,481 8,797,929 8,265,237

20. SEGMENT INFORMATION The Group operated predominantly in one geographical segment and one business, being gold and other base metals exploration and development in Western Australia and South Australia.

Helix Resources Limited Annual Report 2007

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21. EARNINGS PER SHARE

COMPANY 2007 2006 Cents Per share Cents Per share Basic loss per share (0.2) (5.36) Diluted loss per share (0.2) (5.36) *Basic Loss per Share* The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: 2007 2006 $ $ Earnings / (loss) (a) (187,904) (4,762,498) 2007 2006 No. No. Weighted average number of ordinary shares (b) 100,425,592 88,895,929 (a) Earnings used in the calculation of basic earnings per share is net loss after tax of $187,904 (2006 : $4,762,498). (b) The executive share options are not considered to be potential ordinary shares and are therefore excluded from the weighted average number of shares used in the calculation of basic earnings per share. Where dilutive, potential ordinary shares are included in the calculation of diluted earnings per share (refer below). *Diluted Loss per Share* The earnings and weighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share are as follows: 2007 2006 $ $ Earnings (a) (187,904) (4,762,498) 12 months to 30 June 2007 12 months to 30 June 2006 No. No. Weighted average number of ordinary shares and potential ordinary shares (b) 100,425,592 88,895,929 (a) Earnings used in the calculation of diluted loss per share is net loss after tax of $187,904 (2006: $4,762,498). (b) The following potential ordinary shares are not dilutive and are therefore excluded from the weighted average number of ordinary shares and
potential ordinary shares used in the calculation of diluted earnings per share:
2007 2006
No. No.
Executive options 6,625,000 3,450,000
Listed options - 19,139,475

Helix Resources Limited Annual Report 2007

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22. INTEREST IN JOINT VENTURES

The parent entity has entered into the following unincorporated joint ventures:

	Joint Venture Project Tunkillia Lake Everard Uranium Yalleen	Percentage Interest 100% (2006: 100%) Diluting to 49% (Minotaur Exploration) 100% (2006: 100%) Diluting to 49% (Toro Energy) 100% (2006: 100%) Diluting to 30% (API Management Pty Ltd)	Principal Exploration Activities Gold Uranium Iron Ore

The joint ventures are not separate legal entities but are contractual arrangements between the participants for sharing costs and output and do not in themselves generate revenue and profit. Exploration expenditure is the only asset of the joint ventures. The Group’s interest in exploration expenditure in the above mentioned joint ventures is included in note 7 and at 30 June 2007 is $107,356 (2006 : $136,149).

23. FINANCIAL INSTRUMENTS

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which revenues and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements.

The Group's exposure to interest rate risk and effective weighted average interest rate for classes of financial assets is set out below:

2007 Financial Assets Other Receivables (incl tenement appl.) Financial assets Cash and cash equivalent assets Security deposits and deposits at financial institutions Financial Liabilities Trade Payables 2006 Financial Assets	Average Interest Rate % 5.5% 6.0%	Fixed Inter- est Rate Less than 1 year $ $ - - - - 2,822,000 - - 98,000 2,822,000 98,000 - - - - Floating Interest Rate Maturity	Fixed Inter- est Rate Less than 1 year $ $ - - - - 2,822,000 - - 98,000 2,822,000 98,000 - - - - Floating Interest Rate Maturity	More than Year $	1 - - - - - - -	Non Interest Bearing $ 261,946 - 200 - 262,146 75,862 75,862	Total $ 261,946 - 2,822,200 98,000 3,182,146 75,862 75,862
Other Receivables (incl tenement appl.)		-	-		-	435,082	435,082
Financial assets		-	-		-	890	890
Cash and cash equivalent assets	5.1%	1,150,828	-		-	200	1,151,028
Security deposits and deposits at financial institutions	5.3%	-	249,554	154,583		-	404,137
		1,150,828	249,554	154,583		436,172	1,991,137
Financial Liabilities
Trade Payables		-	-		-	186,625	186,625
		-	-		-	186,625	186,625

Other than those classes of assets and liabilities denoted as "listed" in note 4, none of the classes of financial assets and liabilities are readily traded on organised markets in standardised form.

Helix Resources Limited Annual Report 2007

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Credit Risk

Credit Risk refers to the risk that counterparty will default on, its contractual obligations resulting in financial loss to the Group. The Group has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group measures risk on a fair value basis.

The maximum credit risk on financial assets of the Group which have been recognised on the statement of financial position, other than investments in shares, is generally the carrying amount, net of any provisions for doubtful debts.

Net Fair Value of Financial Assets and Liabilities

The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximates their carrying value.

The net fair value of financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.

Listed equity investments have been valued by reference to market prices prevailing at balance date. The market value of listed equity investments has been disclosed in Note 4 to the financial statements. For unlisted equity investments, the net fair value is an assessment by the Directors based on the underlying net assets, future maintainable earnings and any special circumstances pertaining to a particular investment.

24. EMPLOYEE ENTITLEMENTS

The aggregate employee entitlement liability recognised and included in the financial statements is as follows:

	Provision for employee entitlements: Current (Note 9) Non-Current (Note 9) Number of employees at end of financial year	2007 $ No 9	CONSOLIDATED 11,695 31,585 43,280	2006 $ No 7	25,785 21,953 47,738	COMPANY 2007 $ 11,695 31,585 43,280 No 9	2006 $ 25,785 21,953 47,738 No 7

25. REMUNERATION OF AUDITORS

	a) Auditor of the Parent Entity Auditing the financial report Taxation services Other services – A-IFRS	2007 $	18,000 -	2006 $	25,500 -	2007 $	18,000 -	2006 $	25,500 -
			-		-		-		-
			18,000		25,500		18,000		25,500

The auditor of Helix Resources Limited for the 2007 financial year is Bentleys MRI Perth Partnership.

26. ADDITIONAL COMPANY INFORMATION

Helix Resources Limited is a listed public company, incorporated and operating in Australia.

Registered Office Principal Place of Business 9 Richardson Street 9 Richardson Street WEST PERTH WA 6005 WEST PERTH WA 6005 Tel (08) 9321 2644 Tel (08) 9321 2644

The financial report for Helix Resources Limited for the year ended 30 June 2007 was authorised for issue in accordance with a resolution of the directors on the 22nd day of August 2007.

Helix Resources Limited Annual Report 2007

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SHAREHOLDING INFORMATION

As at 13th August 2007

NUMBER OF SHARES HELD

	Spread of Holdings 1–1000 1,001–5,000 5,001–10,000 10,001–100,000 100,001 and over Total Number of shareholders holding less than a marketable parcel	Number of Shareholders 162 503 387 920 158 2,130 306	Number of Shares 98,939 1,691,045 3,225,014 34,919,936 74,166,655 114,101,589 349,727

PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS

1 2 3 4 5 6 7	Shareholder Yandal Investments Pty Ltd Wythenshawe Pty Ltd Dr Peter Woodford Gee Vee Pty Ltd Blamnco Trading Pty Ltd Warramboo Holdings Pty Ltd Technica Pty Ltd	Number of Shares 11,172,514 7,200,000 5,813,469 3,329,501 2,000,000 2,000,000 1,856,666	% of Issued Capital 9.79 6.31 5.09 2.92 1.75 1.75 1.63
8	Zero Nominees Pty Ltd	1,456,802	1.28
9	ANZ Nominees Ltd	1,250,280	1.10
10	Nefco Nominees Pty Ltd	1,235,831	1.09
11	Niddrie Holdings Pty Ltd	1,229,115	1.08
12	Mr Graham Douglas Riley & Mrs Anne Marie Riley	1,000,000	0.87
13	Mr Michael David James	1,000,000	0.87
14	Mr Maxwell Alfred Kippe	900,000	0.79
15	Calliton Pty Ltd	900,000	0.79
16	Vermar Pty Ltd	800,000	0.70
17	Yan’s Investment Pty Ltd	700,000	0.61
18	Jacobs Corporation Pty Ltd	700,000	0.61
19	Mr Abdelaziz Soliman	628,500	0.55
20	Mr Jorgen Egon Hansen & Mrs Ellen-Gerda Hansen	600,000	0.53
	Top 20 Total	45,772,678	40.11

VOTING RIGHTS

One vote for each ordinary share held in accordance with the Company's Constitution.

Helix Resources Limited Annual Report 2007

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SUBSTANTIAL SHAREHOLDERS

	Shareholder Yandal Investments Pty Ltd Wythenshawe Pty Ltd Dr Peter John Woodford	Number of Shares 11,172,514 7,200,000 5,813,469	% of Issued Capital 9.79 6.31 5.09

DIRECTORS' INTEREST IN SHARE CAPITAL

	Director G J Wheeler M H Wilson J den Dryver G Dunbar Total	Fully Paid Ordinary Shares 3,329,501 15,000 - 100,000 3,444,501	Listed Options - - - - -	Staff Options 2,000,000 1,325,000 400,000 400,000 4,125,000

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West Pilbara Field Trip January 2007

Helix Resources Limited Annual Report 2007

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Tenement schedule

	Tenement ADELAIDIAN EL3814 ELA2006/0570 ELA2007/0299 ELA2007/037 GAWLER JV EL3403 EL2854 EL3335 GLENBURGH EL09/1079 EL09/1278	Name Mt Elkington Callawonga Denborough Downs Olary Lake Everard Lake Everard West Childarra Glenburgh Carey Downs	Mineral Gold, Base Metals Gold, Base Metals, Uranium Gold, Uranium Gold, Base Metals	Ownership Helix Resources Limited 100% Minotaur earn 51%, Toro earn 51% Uranium rights Helix Resources Limited 100%
	EL09/1279	Callytharra Springs
	EL09/1280	Milly Milly
	EL09/1281	Warrigal
	EL09/1282	Carradarra Well
	EL09/1283	Deep Well
	EL09/1284	Challenger
	EL09/1285	Minga
	EL09/1286	Yalbra Well
	EL09/1287	Willagrad Bore
	EL09/1288	Garden Well
	EL09/1289	Rabbit Bore
	EL09/1325	Glenburgh
	PL09/0424	Glenburgh
	PL09/0425	Glenburgh
	PL09/0426	Glenburgh
	PL09/0427	Glenburgh

Abbreviations and	Definitions used in Schedule:
EL	Exploration Licence	ELA	Exploration Licence Application
ML	Mining Lease	MLA	Mining Lease Application
PL	Prospecting Licence	PLA	Prospecting Licence Application

Helix Resources Limited Annual Report 2007

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Tenement NORTHAMPTON EL66/54 ELA66/55 WEST PILBARA EL47/1145 EL47/1144 EL47/1075 ELA47/1089 ELA47/1090 ELA47/1146 ELA47/1775 ELA47/1776	Name Ajana Ajita Pinderi Hills Pinderi Hills Munni Munni South Munni Munni South Munni Munni South Cooya Pooya Munni Munni Munni Munni	Mineral Gold, Base Metals Gold, Base Metals, Diamonds	Ownership Helix Resources Limited 100% Helix Resources Limited 100%
YALLEEN
EL47/1169-I	Yalleen	Gold, Iron, Base Metals, Diamonds	Helix Resources 100%, API earn 70% Iron rights
EL47/1170-I	Yalleen
EL47/1171-I	Yalleen

Abbreviations and Definitions used in Schedule:

EL Exploration Licence ELA Exploration Licence Application ML Mining Lease MLA Mining Lease Application PL Prospecting Licence PLA Prospecting Licence Application

Helix Resources Limited Annual Report 2007

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CORPORATE DIRECTORY

Directors

Greg J Wheeler Executive Chairman John den Dryver Non-executive Director Gordon Dunbar Non-executive Director Michael Wilson Technical Director

Australian Business Number

27 009 138 738

Head and Registered Office

9 Richardson Street West Perth Western Australia 6005 PO Box 825 West Perth Western Australia 6872 Telephone: +61 8 9321 2644 Facsimile: +61 8 9321 3909 Email: [email protected] Website: www.helix.net.au

Share Registry

Advanced Share Registry 110 Stirling Highway Nedlands Western Australia 6009 PO Box 1156 Nedlands Western Australia 6909 Telephone: +61 8 9389 8033 Facsimile: +61 8 9389 7871

Auditor

Bentleys MRI Perth Partnership Level 1, 10 Kings Park Road West Perth Western Australia 6005 Telephone: +61 8 9480 2000 Facsimile: +61 8 9322 7787

Stock Exchange

The Company Securities are quoted on the Australian Stock Exchange Limited

CODE: HLX

Helix Resources Limited Annual Report 2007

AI assistant

HELIX RESOURCES LIMITED — Annual Report 2007

65059_rns_2007-08-22_7e8e157e-6705-425a-b99f-2ed7038f9116.pdf

Contents

Chairman’s Review

Dear Shareholder

Review of Operations

YALLEEN IRON ORE JV – WESTERN AUSTRALIA

Project Background

Exploration Review

Kumina Creek Prospect

Robe Exit Prospect

Table of significant results from exploration RC drilling

Regional Drilling

Geological Mapping

Bonham Prospect

2007/2008 Program

Helix Assessment of Yalleen Project Fe Target Potential

Regional Exploration

LAKE EVERARD (INCL. TUNKILLIA) PROJECT – SOUTH AUSTRALIA

GOLD

NORTHAMPTON PROJECT – WESTERN AUSTRALIA

ADELAIDE GEOSYNCLINE - SOUTH AUSTRALIA

Helix Resources Limited: Project Areas

Corporate Governance

CORPORATE GOVERNANCE

1. Board of Directors

1.1 Role of the Board

1.2 Composition of the Board

1.3 Responsibilities of the Board

1.4 Board Policies

1.4.1 Conflicts of Interest

Directors must:

1.4.2 Commitments

1.4.3 Confidentiality

1.4.4 Continuous Disclosure

1.4.5 Education and Induction

� a copy of the Constitution of the Company.

1.4.6 Independent Professional Advice

1.4.7 Related Party Transactions

1.4.8 Shareholder Communication

1.4.9 Trading in Company Shares

1.4.10 Performance Review/Evaluation

1.4.11 Attestations by Executive Chairman

2. Board Committees

2.1 Audit Committee

2.1.1 Role

2.1.2 Composition

2.1.3 Responsibilities

2.2 Remuneration Committee

2.2.1 Role

2.2.2 Composition

2.2.3 Responsibilities

2.2.4 Remuneration Policy

2.2.4.1 Senior Executive Remuneration Policy

2.2.4.2 Non-Executive Director Remuneration Policy

2.2.5 Current Director Remuneration

2.3 Nomination Committee

2.3.1 Role

2.3.2 Responsibilities

2.3.3 Criteria for selection of Directors

3. Company Code Of Conduct

Responsibilities to Shareholders and the Financial Community Generally

Responsibilities to Clients, Customers and Consumers

Employment Practices

Obligations Relative to Fair Trading and Dealing

Responsibilities to the Community

Responsibility to the Individual

Conflicts of Interest

How the Company Complies with Legislation Affecting its Operations

How the Company Monitors and Ensures Compliance with its Code

Directors’ Report

DIRECTORS

Greg J Wheeler BCom; FCA; SF Fin; GAICD

Michael Wilson B Ec; B Sc (Hons); MAusIMM

John den Dryver BE (Mining) MSc FAusIMM (CP)

Gordon Dunbar BSc Hons, MSc, FAusIMM (CP), FAIG

Riccardo E Vittino

DIRECTORSHIPS OF OTHER LISTED COMPANIES

PRINCIPAL ACTIVITIES

HELIX RESOURCES LIMITED Annual Report 2007