HELIX RESOURCES LIMITED - Annual Report 2015

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ANNUAL REPORT

30 JUNE 2015 ACN: 009 138 738

Chairman’s Review ...................................................................... 2 Review Of Operations ................................................................... 3 Corporate Governance ................................................................. 15 Directors’ Report ....................................................................... 16 Auditor’s Independence Declaration ................................................ 23 Independent Auditor’s Report ........................................................ 24 Directors’ Declaration ................................................................. 27 Consolidated Statement Of Financial Position ..................................... 28 Consolidated Statement Of Profit Or Loss And Other Comprehensive Income 29 Consolidated Statement Of Cash Flows ............................................. 30 Consolidated Statement Of Changes In Equity ..................................... 31 Notes To The Financial Statements .................................................. 32 Number Of Shares Held ................................................................ 51 Tenement Schedule .................................................................... 53 Corporate Directory .................................................................... 54

Helix Resources Limited Annual Report 2015

CHAIRMAN’S REVIEW

Dear Shareholder,

I am pleased to present the 2015 Annual Report for the Company.

The past 12 months has been the most challenging period for exploration companies in living memory. However your Board and management have continued to achieve significant milestones in its pursuit of advancing a portfolio of quality exploration assets in Chile and Australia.

During the year the company has:

Entered into a landmark agreement with the EPG Exploration Fund to significantly advance the Joshua Copper-Gold Project in Chile. The 3,500m first stage diamond drilling program commenced at Joshua in early September.
Announced the discovery of a VMS system at the Collerina Prospect in NSW with high grade copper and zinc intercepts close to surface. Follow up drilling is planned in the fourth quarter of 2015.
Sold its interest in the Tunkillia Gold Project to WPG Resources. The transaction allows the development to proceed and provides Helix shareholders with further upside to the proposed development at Tarcoola-Tunkillia.
Realised value from the resolution of the Olary Magnetite Sale Agreement by receiving cash and a parcel of Tigers Realm Coal shares.
Conducted four drilling programs during the year in Chile and Australia for approximately 4,000m of RC drilling.

During the year the company continued to change operating and exploration processes and significantly reduced expenditure year on year.

I would like to thank the Board and Staff for their contributions during the past year. Under challenging market conditions all of our people have worked hard to advance the exploration assets of the company. I hope you join me in continuing to support our people.

The company looks forward to making further progress on its various strategies and initiatives in the year ahead. Shareholders will be kept advised of all developments.

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Pasquale Rombola Chairman

Helix Resources Limited Annual Report 2015

REVIEW OF OPERATIONS

CHILE - COPPER AND GOLD PROJECTS

Background

Chile hosts numerous world-class copper and gold mines. The mining sector is one of the major pillars of the Chilean economy, given that copper exports account for approximately 30% of GDP. Chile is a politically stable democracy with strong financial institutions and sound economic policy providing it the strongest sovereign debt rating in Latin America. Chile is supportive of foreign investment and Helix considers it an appropriate location to have established an asset portfolio and to use the Companies exploration skills to build and extract value from this world-class jurisdiction.

Chile Strategy

Based on an in-house project generation model, Helix identified and concentrated its efforts on an area of interest with prospective geology, good infrastructure and an opportunity to build on an emerging mining district in Region IV, Chile.

 Joshua Copper Porphyry Project:- Attracted a joint venture partner in 2015 to complete large drilling program over a short period to advance significant greenfields porphyry discovery
 Blanco Y Negro: High-grade copper/gold deposit with updated indicated and inferred resource available for divestment
 Huallillinga Project– Second greenfield porphyry target identified, early studies confirm mineralisation and alteration at 19km² Samuel Prospect.

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Figure 1: Helix’s project locations – Region IV Chile

Helix Resources Limited Annual Report 2015

Joshua Copper-Gold Project [100%] EPG Partners earning up to 50.1%

The Joshua Project is Helix’s most significant project in Chile. The area was chosen for its prospectivity, its low altitude (less than 1700m) and excellent nearby infrastructure. The Project is 40km South East of Teck’s Carmen de Andacollo porphyry deposit in Region IV Chile and 40km east of the township of Ovalle (Population 100,000 people). The Joshua Project was a greenfields discovery by Helix, with four porphyry targets (Targets 1 to 4) identified to date in a regional north west structural corridor that had never been drill tested prior to Helix’s involvement.

Helix has identified the potential for a large-scale, copper-gold porphyry system which is now subject to a US$3.0m (A$4.3M) drilling program with EPG Partners (EPG) who can earn up to 50.1% pf the project by completing up to 10,000m of drilling.

The drill program, being managed by EPG, will target the presently untested potassic portions of the system and zones where the potential exists for copper enrichment.

The first two holes are planned to be drilled to a depth of 500m and are expected to pass into the potassic zone of the Joshua porphyry system. The potassic zone in porphyry systems are generally associated with higher grades and higher metal content. The subsequent holes will then expand out from the potassic core of the system to test strike, grade continuity and expand the potential volume of the mineralisation at Joshua.

This drilling will test zones where petrological studies by Helix identified enrichment in the form of Chalcocite overprinting Chalcopyrite (refer to Figure 2a & 2b). This enrichment has the potential to provide a significant up-lift to the overall copper metal content and grade profile at Joshua.

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Figure 2a) Brecciated Dacitic Porphyry with disseminated Figure 2b) Thin-section photomicrograph of copper chalcopyrite and chalcocite from the base of the Carmelita sulphides from the adjacent rock sample. Note Chalcocite workings (~50m below surface) on the eastern edge of (Cs) rimming/replacing in-situ Chalcopyrite (Cp) grains. Target 1.Sample assayed 3.1% Cu, 0.1g/t Au, 11g/t Ag and 200ppm Mo¹.

The initial drilling program that is being conducted by EPG will consist of up to 10 diamond holes for 4,000m with an average depth of 400m, including several deeper holes. The program will expand the known strike of the area drilled at Target 1 from approximately 400m to over 1 kilometre (Figure 3).

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Figure 3: Main porphyry target at Joshua – copper-in-soil draped on Google Earth™ topography

Helix Resources Limited Annual Report 2015

About the Joshua Project Joint Venture

An Earn-In Agreement over the Joshua Project was executed in June 2015 with Fondo De Inversion Privado EPG Exploracion Minera (EPG Mining Exploration Fund). The fund is managed by EPG Partners S.A, a Chilean based private equity and advisory company. The fund retains an experienced team and is uniquely suited to capturing exploration opportunities in Chile.

Key terms of the Joshua Agreement are:

Stage 1: EPG has the option to earn a 33.4% interest in the Joshua Project by undertaking a minimum of 3,500m of diamond drilling within 1 year for a minimum commitment of US$1.2m (This drilling program has commenced).
Stage 2: Upon completion of Stage 1, EPG can then elect to increase its interest to 50.1% in the Joshua Project by completing up to 6,500m of RC and diamond drilling within 1.5 years for a minimum commitment of US$1.8m.
Following the completion of the two stage program, EPG will have a 50.1% interest in the project and Helix will retain a 49.9% interest in the project. A Joint Venture over the project will then form to progress the project.

Blanco y Negro Copper/Gold Project [100%]

Blanco Y Negro (ByN) is a 100% owned Mining lease 15km south-east of Ovalle in Region IV Chile. The project sits within a major regional mineralised shear system (Los Mantos Fault) with multiple mineral occurrences evident throughout the surrounding district. Helix has mapped the main North West trending mineralised shear over a strike of 1.3km (offset by cross cutting faults) within the mining lease.

In August 2015, Helix Resources completed a resource update on the ByN deposit in Region IV, Chile. The update was undertaken following the drilling program that was completed in 2014.

The new resource estimation (refer to ASX announcement on 13 August 2015)[1] has increased the tonnes by approximately 10% and upgraded the classification of the ByN deposit, with 60% of the resource moving into the Indicated JORC category. Infill Reverse Circulation (RC) drilling was undertaken as part of the RC program completed in late 2014. This additional drilling has improved the knowledge of metal distribution and confirmed geological continuity in the main zone.

Drilling at ByN has intersected copper and gold mineralisation with results including 19.5m @ 2% Cu and 1.1 g/t Au and 30m @ 1.4% Cu and 0.3g/t Au (refer ASX announcement on 10 September 2014)[2] . The deposit remains open to the northwest along strike and down dip (Figure 4).

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Figure 4: Approximate position of B y N Deposit on local topography with significant results.

Helix Resources Limited Annual Report 2015

Table 1 : ByN Deposit Material Type

August 2015 Mineral Resource Estimation (0.5% Cu cut off)[1]

	Oxide	Oxide	Transition	Transition	Fresh	Fresh	Total
	Tonnes & Grade	Metal	Tonnes & Grade	Metal	Tonnes & Grade	Metal
Indicated	360kt @ 1.0% Cu,0.2g/t Au	4,000t Cu 2,500oz Au	280kt @ 1.8% Cu,0.6g/t Au	5,000t Cu 5,600oz Au	140kt @ 2.2% Cu,0.8g/t Au	3,000t Cu 3,500oz Au	0.8Mt @ 1.5% Cu, 0.5g/t Au for 12,000t Cu & 12,000oz Au
Inferred	140kt @0.8% Cu,0.6g/t Au	1,000t Cu 3,000oz Au	30kt @ 0.7% Cu,0.4g/t Au	240t Cu 460oz Au	480kt @ 1.4% Cu,0.6g/t Au	7,000t Cu 9,000oz Au	0.7Mt @ 1.3% Cu, 0.6g/t Au for 8,000t Cu & 12,000oz Au
Total	500kt @ 1.0% Cu, 0.3g/t Au	5,000t Cu 5,000t Au	310kt @ 1.6% Cu, 0.6g/t Au	5,200t Cu 6,100oz Au	620kt @ 1.6 % Cu, 0.6g/t Au	10,000t Cu 12,500oz Au	1.5Mt @ 1.4% Cu, 0.5g/t Au for 20,000t Cu & 24,000oz Au

Note: discrepancies in totals are due to rounding.

Regional Copper/Gold Projects- Region IV Chile

Helix controls 170km² of exploration concessions surrounding the Joshua and Blanco y negro Projects. These concessions, including Huallillinga, Hado and Embrujado are highly prospective for a combination of high-grade structurally controlled copper/gold sytems and large copper/gold porphyry systems.

Work during the year has been confined to small cost-effective mapping and reconnaisance activities due to a reduced staff level and exploration budgets.

The Samuel Prospect

Initial field exploration at the Samuel Prospect has confirmed the targets porphyry prospectivity. This is Helix’s second greenfield porphyry discovery in region IV. The Samuel Prospect was identified from mapping of extensive porphyry-style lithologies and alteration with surface sampling confirming associated copper mineralisation over a system exceeding 19km².

During the year the Company mapped in detail the main target area. The target is defined by a 19km² zone of mixed intrusives, volcanics, stockworks and breccias with porphyry related alteration defining the extent of the system. In the same program the team collected surface rock chip samples from the various lithologies located at the target. The geochemistry returned peak results of 7.7% Cu, 0.8g/t Au and 176ppm Mo (Refer ASX announcement on 30 January 2015).[2] A statistical review of the rockchip data shows mean values of copper from surface sampling as follows: intrusives; 158 ppm, andesites; 215 ppm, stockworks; 507 ppm and veins; 1.9% Cu (Refer ASX announcement on 30 January 2015)[2] , outlining potentially a second large greenfield porphyry discovery in Region IV.

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Figure 5 Samuel Prospect Geological Mapping and position of rockchip samples (Cu ppm)

Helix Resources Limited Annual Report 2015

The exploration work at the Samuel Project also included collection of samples to undertake Microscopy studies to identify the copper minerals present. The limited work to date indicates the presence of Djurleite (“white chalcocite”) and Chalcopyrite in the limonite veinlets associated with the quartz-limonite stockwork present at the target.

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Figure 6: Extensive stockwork present at the Samuel Prospect containing limonite after sulphides. Rock sample 55795 returned 0.03 ppm Au, 4125 ppm Cu, 36 ppm Mo

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CPY
Djurleite (CC)
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Figures 7 and 8: Photomicrograph images of thin-sections from the location shown on photo 7. Photo 8 shows fine grains (<1mm) of Chalcopyrite preserved in limonite veins.

Helix Resources Limited Annual Report 2015

COPPER & GOLD PROJECTS – NSW

Background

Helix holds approximately 100km strike of prospective VMS Copper terrain and +50km strike of epithermal Gold terrain in the CobarGirilambone mining district in NSW. Helix is carrying out targeted geochemistry and geophysics to isolate mineralisation in this highly prospective region, with operating mines and good infrastructure. To date Helix has established a copper resource at Canbelego and a gold resource at the Sunrise & Good Friday Prospects.

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Figure 9: Location of Helix Projects and surrounding mines in Cobar-Nygan region NSW

COLLERINA PROJECT – [Helix 100% of precious and base metals discoveries]

The Collerina Project is located approximately 40km SW of Nyngan in Central NSW. Collerina is prospective for copper and gold mineralisation. It is located on a 20km long corridor of prospective volcanic/sedimentary sequence within the tenement that abuts Helix’s Quanda and Five Ways tenements. The project is located within a +200km VMS belt and is close to infrastructure including the operating Tritton Mine and associated deposits to the north, and the Tottenham Cu/Au deposits to the south.

Collerina Prospect

In late 2014 Helix announced the discovery of a VMS system at the Collerina Prospect. Drilling programs were undertaken late in 2014 and early 2015 following positive results from a detailed auger soil sampling program which defined a copper/gold target over an openended strike of approximately 500m. The geochemical survey was followed-up with a 5 line-kilometre moving loop EM survey that highlighted the presence of a bed-rock conductor associated with the copper/gold trend. The broad-spaced drilling has so far identified base metal mineralisation over an open-ended strike of 350m. The system remains open along strike and down dip/plunge.

Helix Resources Limited Annual Report 2015

Table 2: Significant results from intial program of 1,000m RC drilling at Collerina in late 2014 (Refer ASX Announcement on 15 December 2014)[2] .

Site_ID	Depth	Intercept	Results
CORC001	95m	3m	3m @ 1.4% Cu, 5g/t Ag, 0.5% Zn
CORC002	80m	29m	29m @ 2.2% Cu, 9g/t Ag, 0.7% Zn incl. 14m @ 4.0% Cu, 17g/t Ag, 1.3% Zn from 80m
CORC003	0m	54m	54m @ 0.4% Cu incl.5m @1.1%Cu, 0.2% Zn from 3m
CORC004	22m	14m	14m @ 0.2% Cu
and	50m	5m	5m @ 1.6% Cu incl. 2m @ 3.6% Cu, 14g/t Ag from 51m
CORC005	18m	47m	47m @ 0.4% Cu, 4g/t Ag incl.2m @ 2.9% Cu, 50g/t Ag from 52m and 1m @ 1.1% Cu from 61m
CORC006	24m	6m	6m @ 0.2% Cu
CORC007			Not re-sampled
CORC008	112m	1m	1m @ 0.5% Cu
CORC009	0m	53m	53m @ 0.5% Cu incl.5m @ 4.2% Cu + 5g/t Ag from 48m to EOH

Note Intersections based on 1m sampling, assayed using mixed acid digest technique for base metals. Results are based on a 0.1% Cu cut-off grade and subject to rounding. Significant results are highlighted in bold.

The second RC drilling campaign at the Collerina Prospect was conducted early in 2015 to follow-up the previous campaign and test for continuation of the system. These results from 7 holes for a total 1,073m confirmed the presence of additional VMS-style mineralisation.

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Figure 10: CORC011 – 10m @ 2.6% Cu from 84m incl. 7m @ 3.2% Cu, 1.7% Zn, 11g/t Ag from 86m (Refer ASX Announcement on 1 April 2015)[2]

The second phase of drilling was targeting strike extensions of mineralisation coincident with off-hole EM conductors. The drilling has so far identified base metal (+ gold) mineralisation over an open-ended strike of 350m (Refer Figure 11). The higher grade mineralisation appears to extend to the east with a zone of intercepts exceeding 3% copper returned over a strike of at least 200m, remaining open down dip.

DHEM modelling from surveys taken in selected holes provides an orientation of the EM conductors plunging to the east at locally variable dips between 30 and 60 degrees, consistent with other deposits in the district.

Helix Resources Limited Annual Report 2015

Table 3: Significant Collerina Prospect March Drilling Results- (Refer ASX Announcement on 1 April 2015)[2]

Site_ID	Depth from	Result
CORC010	78m	5m@ 0.5% Cu, 0.1g/t Au, 2g/t Ag
Incl.	79m	1m @ 1% Cu, 0.2g/t Au, 4g/t Ag
CORC011	84m	10m@ 2.6% Cu, 1.4% Zn, 0.5g/t Au, 9g/t Ag
Incl.	86m	7m@ 3.2% Cu, 1.7% Zn, 0.6g/t Au, 11g/t Ag
CORC012	97m	9m @ 1.9% Cu, 1.4% Zn, 0.4g/t Au, 7g/t Ag
Incl.	97m	5m@ 3.2% Cu, 2.4% Zn, 0.7g/t Au, 12g/t Ag
CORC013	127m	[email protected]%Zn
CORC014	151m	[email protected]%Cu,2g/t Ag
and	154m	[email protected]%Zn
CORC015	130m	4m@ 1.6% Cu, 0.4% Zn, 0.3g/t Au, 5g/t Ag
Incl.	131m	2m@ 3% Cu, 0.8% Zn, 0.6g/t Au, 9g/t Ag
CORC016	93mm	2m@ 1% Cu, 0.8% Zn, 0.3g/t Au, 1g/t Ag

Intersections based on 1m sampling, assayed using mixed acid digest technique for base metals and fire assay method for gold. Results are based on a 0.1% Cu cut-off grade and subject to rounding.

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Figure 11: Significant drill intercepts at Collerina Prospect

Helix Resources Limited Annual Report 2015

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Figure 12: Location of EL6336 on regional magnetics

The Collerina Prospect has a historic copper working (early 1900’s) and was subject to a broad-spaced 3 hole drilling program by CRA in the 1980’s. Copper mineralisation was intersected in all three holes (4m @ 2.4% Cu from 54m, 48m @ 0.6% Cu from 30m and 4.6m @ 1.1% Cu from 65m). There has been limited exploration activity on the Prospect until Helix’s involvement in 2014.

CANBELEGO PROJECT JV – NSW

EL 6105 - Helix Resources Ltd 70%, Straits Resources 30%

Project Summary

The Canbelego Project is located 45km south east of Cobar. Helix has defined an Initial inferred resource for the Canbelego Deposit at a 0.3% Cut off grade of 1.5 million tonnes at 1.2% Cu for 18,000t Contained Copper[(refer resource table)] .

The Canbelego Deposit is a Cobar-style deposit, which remains open along strike and down dip. Historic mining produced +5% copper ore from workings off a 100m shaft at the prospect. There remain untested down-hole EM conductors below significant drill results including: CBLRC018: 2m @ 6.8% Cu and CD2: 5m @2.4% Cu (Refer ASX Announcement on 26 September 2013)[2] .

The Canbelego Project also has significant potential for oxide copper mineralisation from surface on three prospects (Canbelego-portion of the inferred resource. Canbelego West – 1.2km by up to 400m wide 100ppm Cu soil anomaly and Caballero- 800m x 300m 100ppm Cu soil anomaly, limited drilling including [email protected]% Cu from 24m, incl. 7m @ 1.3% Cu (Refer ASX Announcement on 15 October 2013) (refer Figure 13).

Helix Resources Limited Annual Report 2015

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Figure 13: Canbelego soil sampling on detailed magnetics, location of the three advancing copper prospects.

RESTDOWN JV (INCLUDING MURIEL TANK PROJECT)

EL 6140, EL6501 & EL6739-Helix Resources 70%; Glencore 30 %

The Restdown Projects are located 40km to 70 km South East of Cobar in Central Western NSW with the tenement package covering an area of ~198km² (Restdown JV Project 154km², Muriel Tank JV Project 44km²).

Sunrise/Good Friday (Restdown)

The Sunrise/Good Friday Prospects lie within EL6140 covering the entire Battery Tank Goldfield, 25km SW of the historic Mt Boppy Gold Mine (produced ~500,000 oz at +10g/t Au) and 35km north of the Nymagee and Hera development projects. Helix has defined maiden resources at the Sunrise and Good Friday prospects, where zones of gold mineralisation are associated with sandy sediments intersected by localized shears. An inferred resource of 2.6Mt @ 1.2g/t Au for 100,000oz[(refer resource table)] was defined and remains open in all directions.

Regional geochemical sampling has confirmed the continuance of the gold mineralised corridor over the entire goldfield. The additional zones identified provide encouragement that multiple repeats of Sunrise-style mineralisation are present in the district.

Browns Gold Prospect (Muriel Tank)

The project is located 20km east of the Canbelego township on the Barrier Highway in NSW. Gold lode mineralisation was historically mined in the 1920-30’s from the goldfield, most commonly associated with regional shear zones. Historic workings are associated with mixed sedimentary (turbidite) sequences, generally located in fold hinge zones and in localised kink zones. Previous Helix rock chips have returned results of >30g/t Au from the goldfield. A maiden RC program comprising 8 holes for a total of 700m has tested approximately 250m of strike within the open-ended 1km long gold in soil anomaly.

All holes returned wide zones of anomalous gold (>0.1g/t Au) in 4m spear composite sampling. The holes generally intersected the target zone between 0m and 50m, with the southern-most drill hole returning the highest result in the 4m composite sampling (4m @ 2g/t Au in BPRC003 from 64m) (Refer ASX Announcement on 17 September 2014)[2] . An assessment of high-grade controls and follow-up drilling is being considered by the joint venture.

Helix Resources Limited Annual Report 2015

NON CORE ASSETS

YALLEEN IRON ORE PROJECT – WA

Helix Resources Ltd 30% (Diluting) JV interest and tenement owner; API (AMCI/Boasteel) 70% iron ore rights E 47/1169-1171

Project Summary

Yalleen Project has a resource 84Mt @ 57% Iron ore in Indicated and Inferred Resources (refer to resources table) on 575km² of tenements in the West Pilbara owned by Helix Resources – API JV: iron ore rights only

Helix is diluting to a royalty over iron ore production from the tenements. 2014 corporate activity resulted in Aquila Resources being acquired by Baosteel and Aurizon. During the second half of 2014 Aurizon announced a market update and project timeline and development plans for the West Pilbara Iron Project (refer AZJ announcement 11 September 2014).

TUNKILLIA GOLD PROJECT SALE – SA

In late 2014 Helix sold its 30% interest in the Tunkillia Gold Project to WPG Resources. The Transaction allows the development to proceed and provides Helix shareholders with further upside to the Tunkillia-Tarcoola Gold development. WPG is a company with a record of successful project development in South Australia. The sale terms are as follows:

Stage1:

WPG paid HLX $500,000 cash on completion;

WPG issued HLX with 10 million ordinary fully paid ordinary WPG shares (these shares are subject to a voluntary escrow period of 6 months to September 2015);

**Stage 2*:**

WPG will pay HLX $500,000 in cash, and issue an additional 10 million ordinary fully paid ordinary WPG shares, upon the commencement of mine construction;

WPG will pay HLX a 1% NSR royalty for:

30% of attributable production from the existing resource; and

On 100% of production from any additional resources/reserves defined within the Tunkillia Project area.

*Helix retains certain rights to bring forward the payment and share issue in Stage 2; if WPG introduces a majority equity partner, sells the asset or WPG is subject to a successful take-over bid prior to mine construction.

Helix retains its exposure to the Tunkillia asset and Tarcoola asset via its shareholding in WPG and a royalty on production from Tunkillia. A Feasibility Study on Tarcoola is expected to be completed in fourth quarter of 2015.

Helix Resources Limited Annual Report 2015

Resources

Commodity	Category	Project	Interest	Resource
Iron Ore	Indicated Inferred	Yalleen JV, WA	30% (Diluting)	47.9Mt @ 57.3% Fe (Channel Iron)³ 36.4Mt @ 57.1% Fe (Channel Iron)³
Joint ventured with API Management Pty Ltd (50% Boasteel, 50% AMCI) and forms part of their West Pilbara Iron Ore Project [WPIOP]which comprises multiple JV’s.
Copper (+Gold)	Indicated and Inferred	Blanco Y Negro, Chile	100% Helix	Indicated: 0.8Mt @ 1.5% Cu, 0.5 g/t Au for 12,000t Cu & 12,000oz Au Inferred: 0.7Mt @ 1.3% Cu, 0.6g/t Au for 8,000t Cu & 12,000oz Au Total Resource: 1.5Mt @ 1.4% Cu, 0.5g/t Au for 20,000tCu & 24,000oz Au(at 0.5% Cut-off) – 2012 JORC¹
Copper	Inferred	Canbelego JV, NSW	70%(Straits 30%)	1.5Mt @ 1.2% Cu for 18,000t Contained Cu(at 0.3% Cu Cut-off)³
Gold	Inferred	Restdown JV	70% (Glencore 30%)	2.6Mt @ 1.2g/t Au for 100,000oz (0.3 g/t Au cut off)³

Review of material changes

Yalleen: There are no changes to the resource from the previous reporting statement. Blanco Y Negro: Refer to Note 1.

Canbelego: There are no changes to the resource from the previous reporting statement. Restdown: There are no changes to the resource from the previous reporting statement.

Governance controls

All Minerals Resource Estimates are prepared by qualified professionals following JORC-compliant procedures that ensure representative and unbiased samples are obtained with appropriate QA/QC practices in place.

Competent Persons Statement

The information in this announcement that relating to previous reported Exploration Results, Mineral Resources or Ore Reserves 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.

Notes

1 For more information on the Blanco y Negro Resource estimate, refer to ASX announcement dated 13 August 2015. Helix is not aware of any new information or data that materially effects the information included in the said announcement.
The information in this report that relates to the Mineral Resource Estimation for Blanco y Negro is based on information compiled by Mr Byron Dumpleton a Consultant Resource Geologist from his company BKD Resources Pty Ltd. Mr Dumpleton is a member of the Australian Institute of Geoscientist. Mr Dumpleton has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Dumpleton consents to the inclusion in this report of the matters based on their information in the form and context in which they appear.
2 Helix is not aware of any new information or data that materially affects the information included in the said announcement.
3 Helix is not aware of any new information or data that materially affects the information included in the table above. Details of the assumptions underlying the tagged estimations are contained in previous ASX releases or at www.helix.net.au

Helix Resources Limited Annual Report 2015

CORPORATE GOVERNANCE

Helix reviews all of its corporate governance practices and policies on an annual basis to ensure they are appropriate for the Company’s current stage of development. This year, the review was made against the new ASX Corporate Governance Council’s Principles and Recommendations (third edition) which became effective for financial years beginning on or after 1 July 2014.

The Company’s Corporate Governance Statement for the year ended 30 June 2015 was approved by the Board on 22 September 2015 and is available on the Company’s website at www.helix.net.au

The directors of Helix Resources Limited believe that effective corporate governance improves company performance, enhances corporate social responsibility and benefits all stakeholders. Changes and improvements are made in a substance over form manner, which appropriately reflect the changing circumstances of the company as it grows and evolves. Accordingly, the Board has established a number of practices and policies to ensure that these intentions are met and that all shareholders are fully informed about the affairs of the Company.

The Company has a corporate governance section on the website at www.helix.net.au. The section includes details on the company’s governance arrangements and copies of relevant policies and charters.

Helix Resources Limited Annual Report 2015

DIRECTORS’ REPORT

The Directors of Helix Resources Limited (“Helix” or “the Company”) present their Report together with the financial statements of the consolidated entity, being Helix Resources Limited and its controlled entities (“the Group”) for the year ended 30 June 2015.

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:

Pasquale Rombola B Ec

Non-Executive Chairman – 10 March 2014 to present Non-Executive Director – 1 July 2013 to 10 March 2014

Mr Rombola has extensive experience in the investment banking industry in Sydney, London, Hong Kong and Singapore specializing in Asian and Australian equities and equities business management. He has worked for both Morgan Stanley and Deutsche Bank. He held a variety of roles with Morgan Stanley, including Head of the ASEAN equity and Global Head of the Asia equity sales force. He was also responsible for the development of the Morgan Stanley equity business in Indonesia.

Mr Rombola has extensive experience in dealings with institutional equity clients, executing capital raisings for public companies and also in equity business management across product areas.

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

Managing Director – 20 June 2013 to present Executive Technical Director - 1 June 2007 to 19 June 2013

Mr Wilson has been with the company since 1997 and has established the Company’s copper and gold asset portfolios in Australia and Chile, securing tenement holdings and JV’s with incumbent mine operators in the selected infrastructure-rich regions. Michael’s experience includes project management; mineral exploration using geology, geochemistry, geophysics and drilling; ore resource drilling, ore resource estimation and evaluation programs; and monitoring joint venture projects. Michael’s corporate skills include broker and stakeholder engagement, commercial negotiations, acquisitions and divestitures.

Jason Macdonald LLB, Bcomm

Non-Executive Director – 10 March 2014 to present

Mr Macdonald is a qualified legal practitioner, he has practiced in both mining corporate/commercial and commercial litigation. Mr Macdonald is also a director of several private resource companies and has a diverse range of corporate, equity capital market and mining related experience.

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 Company Period of directorship Jason Macdonald Triton Minerals Limited 28 January 2014 – 3 March 2014

COMPANY SECRETARY

Michael Dylan Naylor Bcom, CA, AGIA

Michael has 19 years’ experience in corporate advisory and public company management since commencing his career and qualifying as a chartered accountant with Ernst & Young. Michael has been involved in the financial management of mineral and resource focused public companies serving on the board and in the executive team focusing on advancing and developing mineral resource assets and business development. Michael is also a member of the Governance Institute of Australia.

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 in Australia and Chile. 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 $4,301,431 (2014: loss of $1,971,585).

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 entity’s activities are contained in releases to the ASX on a quarterly basis, discussed in a separate section of this Annual Report as well as on our website at www.helix.net.au.

The Company’s strategy continues to focus on prospective gold and copper regions in Australia and Chile and utilising our corporate and geological expertise to create and extract value for the benefit of our shareholders.

Helix Resources Limited Annual Report 2015

Mineral Asset Project Highlights include:-

CHILE

Joshua Copper Project [100%]

Joshua is 100% owned and located in Region IV Chile. The Project is located 40km East of the township of Ovalle [Population 100,000], at low altitude (less than 1700m), with excellent nearby infrastructure.

In June 2015, the company signed an Earn-In Agreement over the Joshua Project with Fondo De Inversion Privado EPG Exploracion Minera (EPG Mining Exploration Fund). The fund is managed by EPG Partners S.A, a Chilean based private equity and advisory company. The fund retains an experienced team and is uniquely suited to capturing exploration opportunities in Chile. The key terms of the Joshua Agreement are:

Stage 1: EPG has the option to earn a 33.4% interest in the Joshua Project by undertaking a minimum of 3,500m of diamond drilling within 1 year for a minimum commitment of US$1.2m. This drilling program commenced in late August.
Stage 2: Upon completion of Stage 1, EPG can then elect to increase its interest to 50.1% in the Joshua Project by completing up to 6,500m of RC and diamond drilling within 1.5 years for a minimum commitment of US$1.8m.
Following the completion of the two stage program, EPG will have a 50.1% interest in the project and Helix will retain a 49.9% interest in the project. A Joint Venture over the project will then form to progress the project.

Blanco y Negro Copper/Gold Project [100%]

In August 2015, Helix Resources completed a resource update on the ByN deposit in Region IV, Chile. The update was undertaken following the drilling program that was completed in 2014. Refer to the Review of Operations for more detail.

Huallillinga Copper/Gold Project [100%]

Huallillinga Project is a large 95km² area with significant potential for shear hosted copper and gold and porphyry systems. From the field activities undertaken to date, Helix has recognised at least two mineralising events associated with large structures and a large alteration system that is being assessed for its porphyry potential.

Work during the year was confined to small cost-effective mapping and reconnaisance activities due to a reduced staff level and exploration budgets.

AUSTRALIA

Copper

Collerina Copper(+Gold) Project – NSW -[Helix 100% precious and base metals]

The Collerina Prospect has an historic copper working (early 1900’s) and was subject to a broad-spaced 3 hole drilling program by CRA in the 1980’s.

In late 2014 Helix announced the discovery of a VMS system at the Collerina Prospect. Drilling programs were undertaken late in 2014 and early 2015 following positive results from a detailed auger soil sampling program which defined a copper/gold target over an open-ended strike of approximately 500m. The geochemical survey was followed-up with a 5 line-kilometre moving loop EM survey that highlighted the presence of a bed-rock conductor associated with the copper/gold trend. The broad-spaced drilling has so far identified base metal mineralisation over an open-ended strike of 350m. The system remains open along strike and down dip/plunge.

The second phase of drilling was targeting strike extensions of mineralisation coincident with off-hole EM conductors. The drilling has so far identified base metal (+ gold) mineralisation over an open-ended strike of 350m. The higher grade mineralisation appears to extend to the east with a zone of intercepts exceeding 3% copper returned over a strike of at least 200m, remaining open down dip.

DHEM modelling from surveys taken in selected holes provides an orientation of the EM conductors plunging to the east at locally variable dips between 30 and 60 degrees.

Refer to the Review of Operations for more detail.

Canbelego Copper Project- NSW - [Helix 70%; Straits Resources 30%]

The project, located 40km from Cobar, has a resource (1.5Mt @ 1.2% Cu for 18,000t Inferred (Refer review of operations)) at the Canbelego Mine Prospect. Exploration has highlighted several zones below and along strike of the drilling that indicate untested plunges may exist. DHEM surveys at Canbelego remain un-tested, and regional targets including Caballero and Canbelego West show opportunities to expand both oxide and primary copper resources on the project.

Helix Resources Limited Annual Report 2015

Gold

Restdown JV - NSW - [Helix 70%; Glencore 30%]

Helix continues its strategy to grow the existing Inferred resource of 2.6Mt @ 1.2g/t Au for 100,000 oz (Refer Review of Operations for more details) in this mineral prospective and infrastructure rich region. Detailed regional geochemical sampling continues to identify new zones and provide encouragement that multiple repeats of Mt Boppy-style mineralisation are present in the district.

NSW Cobar Regional [Helix 100%]

Helix considers the tenement holding in the region, dominated by VMS style copper and gold systems, has significant copper and gold exploration and development potential. The company has isolated a series of key structural, geochemical and lithological controls that are being used to prioritise targets within our tenement holding and with subsequent positive drill results, build on our resource base in the district.

Iron Ore

Non Managed JV - Yalleen Project - WA [API (AMCI/Boasteel) 70% iron ore rights / Helix 30% [diluting] & Tenement owner] Yalleen Project has a resource 84Mt @ 57% Iron ore in Indicated and Inferred Resources (refer to resources table below) on 575km² of tenements in the West Pilbara owned by Helix Resources – API JV: iron ore rights only

Corporate

The Group reported a loss of $4,301,431 during the year after impairment of $1,383,568 of carried forward exploration costs.

Major corporate events include:

Helix received $500,000 in cash and 10 million shares in WPG Resources Limited (WPG) as stage 1 for the sale of its remaining 30% Tunkillia project. The WPG shares are subject to a voluntary escrow period of 6 months.
Helix received $25,000 in cash and 12.5 million Tiger Realm Coal Limited shares from Lodestone Equities Ltd to finalise the settlement regarding the sale of Olary Magnetite Pty Ltd.
A R&D tax rebate of $467,258 was received as a result of Helix’s activities at its NSW copper and gold projects over the 2014 financial year.

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.

SUBSEQUENT EVENTS

On 16 September 2015, all the listed shares Helix holds in WPG Resources Ltd were released from voluntary escrow.

The listed shares the Company holds in Tigers Realm Coal Limited have decreased in value from $0.10 per share as at 30 June 2015 to $0.06 per share as at 16 September 2015.

No other matter or circumstance has arisen since 30 June 2015 that has significantly affected or may significantly affect the Group’s operations , the results of those operations or the Group’s state of affairs in future 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 [AUDITED]

This remuneration report sets out the remuneration information for Directors and Key Management Personnel (‘KMP’) of the Company for the year ended 30 June 2015. KMP are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly including any director (whether executive or otherwise) of the parent.

The information provided within this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.

To help preserve the company’s cash position, the Board spent considerable time focusing on its remuneration framework and policy reflecting on past feedback from stakeholders and significant cost reduction measures.

The individuals included in this report are:

The individuals included in this	report are:
Non-Executive Directors
Mr P Rombola	Non-Executive Chairman
Mr J Macdonald	Non-Executive Director
Executive Director
Mr M Wilson	Managing Director
Key Management Personnel
Mr M Naylor	Chief Financial Officer and Company Secretary

Helix Resources Limited Annual Report 2015

All Directors and KMP held their positions for the entire financial year and up to the date of this report unless otherwise stated.

Remuneration Governance

The Board has decided there are no efficiencies to be gained from forming a separate remuneration committee and hence the current board members carry out the roles that would otherwise be undertaken by a remuneration committee with each director excluding themselves from matters in which they have a personal interest.

The Board (operating under the formal charter of the Nomination and Remuneration Committee) is responsible for reviewing and recommending the remuneration arrangements for the Executive and Non-Executive Directors and KMP each year in accordance with the Company’s remuneration policy approved by the Board. This includes an annual remuneration review and performance appraisal for the Managing Director and other executives, including their base salary, short and long-term incentives, bonuses, superannuation, termination payments and service contracts.

Further information relating to the role of the Nomination & Remuneration Committee, which has now been assumed by the Board, can be found within the Corporate Governance section of the Company’s website, www.helix.net.au.

Overall Remuneration Framework

The Board recognises that the Company’s performance and ultimate success in project delivery depends very much on its ability to attract and retain highly skilled, qualified and motivated people. At the same time, remuneration practices must be transparent to shareholders and be fair and competitive taking into account the nature and size of the organisation.

The approach to remuneration has been structured with the following objectives:

to attract and retain a highly skilled executive team who are motivated and rewarded for successfully delivering the short and long-term objectives of the Company, including successful project delivery;
to link remuneration with performance, based on long-term objectives and shareholder return, as well as critical short-term objectives which are aligned with the Company’s business strategy;
to set clear goals and reward performance for successful project development in a way which is sustainable, including in respect of health & safety, environment and community based objectives;
to be fair and competitive against the market;
to preserve cash where necessary for exploration, by having the flexibility to attract, reward or remunerate executives with an appropriate mix of equity based incentives;
to reward individual performance and group performance - thus promoting a balance of individual performance and teamwork across the executive management team and the organisation;
to have flexibility in the mix of remuneration, including offering a balance of conservative LTI instruments such as options to ensure executives are rewarded for their efforts, but also share in the upside of the Company’s growth and are not adversely affected by tax consequences; and

The remuneration framework provides a mix of fixed and variable “at risk” remuneration and a blend of short and long-term incentives. The remuneration for executives has three components:

Fixed remuneration, inclusive of superannuation and allowances;
STIs under a performance based cash bonus incentive plan; and
LTIs through participation in the Company’s shareholder approved equity incentive plans.

These three components comprise each executive’s total annual remuneration.

Executive Remuneration

All executives receive a fixed base cash salary and other associated benefits. All executives also receive a superannuation guarantee contribution required by Australian legislation which was 9.5%. No executives receive any retirement benefits.

Fixed remuneration of executives are set by the Board each year and is based on market relativity and individual performance. In setting fixed remuneration for executives, individual performance, skills, expertise and experience are also taken into account to determine where the executive’s remuneration should sit within the market range. Where appropriate, external remuneration consultants will be engaged to assist the Board to ensure that fixed remuneration is set to be consistent with market practices for similar roles.

Fixed remuneration for executives will be reviewed annually to ensure each executive’s remuneration remains fair and competitive. However, there is no guarantee that fixed remuneration will be increased in any service contracts for executives.

Short Term Incentives

The Managing Director and other executives were eligible to earn short-term cash bonuses upon achievement of significant performance based outcomes aligned with the Company’s strategic objectives at that time. These performance based outcomes are considered to be an appropriate link between executive remuneration and the potential for creation of shareholder wealth. Given market conditions for exploration companies, no short term incentives were paid during the year.

Long Term Incentives

LTI awards are generally limited to executives, senior in-country managers and other key employees approved by the Board who influence or drive the strategic direction of the Company. The Company has not issued any LTI’s during the year (2014: Nil).

Non-Executive Remuneration

The policy of the Board is to remunerate Non-Executive Directors in the form of directors’ fees at market rates for comparable companies based on their time, commitment and responsibilities. Fees for Non-Executive Directors are not linked to the performance of the Company to maintain independence and impartiality. In determining competitive remuneration rates, the Board have historically reviewed local trends among comparative companies and the industry generally.

Helix Resources Limited Annual Report 2015

Non-Executive Director fees are also determined within an aggregate fee pool which is subject to approval by shareholders. The aggregate fee pool is currently set at $150,000 per annum which was last approved at the Annual General Meeting in April 2006. As at the date of this report the level of total Non-Executive Director remuneration actually paid remains below the maximum amount payable.

Fees paid do not include any required statutory payments such as superannuation, GST, and payroll tax. The Company does not pay retirement allowances to Non-Executive Directors in line with ASX Corporate Governance Recommendations.

Details of Remuneration

		Primary		Post Employment	Post Employment	Post Employment	Equity	Equity
	Salary &	Perfor-	Non	Super-	Pre-	Other	Options	% of	Other	Total
	Fees	mance	Monetary	annuation	scribed	Retire-		Remu-	Benefits
2015		Based			Benefits	ment		neration
		Payment				Benefits
	$	$	$	$	$	$	$	%	$	$
Non – Executive Directors
P Rombola	50,000	-	-	-	-	-	-	-	-	50,000
J Macdonald	40,000	-	-	-	-	-	-	-	-	40,000
Executive Directors
M Wilson**	199,282	-	-	17,391	-	-	-	-	-	216,673
Key Management Personnel
M Naylor	90,000	-	-	-	-	-	-	-	-	90,000
Total	379,282	-	-	17,391	-	-	-	-	-	396,673

		Primary		Post Employment			Equity
	Salary &	Perfor-	Non	Super-	Pre-	Other	Options	% of	Other	Total
	Fees	mance	Monetary	annuation	scribed	Retire-		Remu-	Benefits
2014		Based			Benefits	ment		neration
		Payment				Benefits
	$	$	$	$	$	$	$	%	$	$
Non – Executive Directors
P Rombola	30,000	-	-	-	-	-	-	-	-	30,000
J Macdonald1	9,274	-	-	-	-	-	-	-	-	9,274
G Dunbar2	25,000	-	-	-	-	-	-	-	-	25,000
J den Dryver3	13,730	-	-	1,270	-	-	-	-	-	15,000
G Wheeler4	48,387*	-	-	-	-	-	-	-	-	48,387
Executive Directors
M Wilson**	197,152	-	-	17,159	-	-	-	-	-	214,311
Key Management Personnel
M Naylor5	15,000	-	-	-	-	-	-	-	-	15,000
J McNamara6	76,839	-	-	5,168	-	-	-	-	-	82,007
C Johnson7	120,057	-	-	11,105	-	-	-	-	-	131,162
Total	535,439	-	-	34,702	-	-	-	-	-	570,141

1 Appointed as a Director on 10 March 2014.

2 Resigned as a Director on 30 April 2014.

3 Resigned as a Director on 30 September 2013.

4 Mr Wheeler resigned as an executive director on 19 June 2013 and became a Non-Executive Director on 20 June 2013. Resigned as a Director of 30 September 2013. 5 Appointed as CFO and Company Secretary on 22 May 2014.

6 Resigned as CFO and Company Secretary on 22 May 2014.

7 Made redundant as Exploration Manager on 26 May 2014.

$8,465 relates to non-executive director fees. $5,000 relates to consulting fees.

** Includes movements in annual leave and long service leave.

Whilst the level of remuneration is not dependent on the satisfaction of any performance condition, the performance of Executives is reviewed on an annual basis against a number of qualitative and quantitative factors.

Helix Resources Limited Annual Report 2015

Consequences of performance on shareholder wealth

In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in respect of the current financial year and the previous four financial years:

Item	2011	2012	2013	2014	2015
Revenue	353,478	231,667	5,721,673	112,425	72,161
Netprofit/(loss)	(708,373)	(441,374)	2,730,290	(1,971,585)	(4,301,431)
Share Price	$0.075	$0.036	$0.032	$0.026	$0.028
Dividends	Nil	Nil	Nil	Nil	Nil

Service Agreements

On appointment to the Board all Non-Executive Directors enter into a service agreement in the form of a letter of appointment. The letter sets out the Company’s policies and terms including compensation relevant to the director.

Remuneration and other key terms of employment for the Managing Director and other executives are formalised in executive service agreements. The agreements provide for payment of fixed remuneration, performance related cash bonuses where applicable, other allowances and confirm eligibility to participle in the Company’s STI and LTI plans.

The major provisions of the agreements relating to remuneration are set out below.

Name	Base Salary / Fee	Term of Agreement	Notice Period by Company	Notice Period from Executive
M Wilson	182,648*	12 months expiring20 June 2016	2 months	2 months
M Naylor	90,000	Not specified	2 months	2 months

*Plus 9.5% compulsory statutory superannuation.

Share-based remuneration

There was no share based remuneration during the year.

Options held by Directors

As at 30 June 2015 the Company had issued no share options (30 June 2014: nil) in relation to the company’s share option plan. 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.

The number of options to acquire shares in the Company held during the 2015 reporting period by each Director and Key Management Personnel of the Group, including their related parties are set out below. No options are held by Key management Personnel.

Director/Key Management Personnel	Balance as at 1 July 2014	Purchased	Exercised	Other Movements	Balance as at 30 June 2015
M Wilson	783,234	-	(783,234)	-	-
J Macdonald	415,000	-	(415,000)	-	-

All options are exercisable, have no vesting conditions and were not granted as part of remuneration.

Shares held by Directors and Key Management Personnel

Director/Key Management Personnel	Balance as at 1 July 2014	Purchased	Disposed	Other Movements	Balance as at 30 June 2015
P Rombola	7,433,085	1,469,042	-		8,902,127
J Macdonald	8,087,500	415,000	-	-	8,502,500
M Wilson	2,349,700	783,234	-	-	3,132,934
M Naylor	-	680,334	-	-	680,334

No shares were issued as part of remuneration.

Related Party Transactions

The Company has adopted a policy to contract the services of certain Director Related entities to retain access to relevant expertise. The policy provides that Helix will only enter into a transaction with a Director Related entity in the following circumstances:-

a. Any proposed transaction is at arm’s length and on normal commercial terms; and
b. Where it is believed that the Director Related entity is the best equipped to undertake the work after taking into account: experience, expertise, knowledge of the Group; and value for money.

Helix Resources Limited Annual Report 2015

Use of Remuneration Consultants

During the year ended 30 June 2015 the Board did not engage the services of remuneration consultants.

Voting and comments made at the Company’s last Annual General Meeting

Helix received more than 99% of “yes” votes on its Remuneration Report for the financial year ending 30 June 2014. The Company received no specific feedback on its Remuneration Report at the Annual General Meeting.

END OF AUDITED REMUNERATION 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.

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:


	Board of Directors’	Meetings	Remuneration Committee Meetings		Audit Committee Meetings
	Entitled to Attend	Attended	Entitled to Attend	Attended	Entitled to Attend	Attended
P Rombola	4	4	-	-	-	-
M Wilson	4	4	-	-	-	-
J Macdonald	4	4	-	-	-	-

NON-AUDIT SERVICES

The auditors did not provide any non-audit services during the financial year.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration is included on page 23 of the financial report.

Dated at Perth this 22[nd] day of September 2015.

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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Pasquale Rombola Non-Executive Chairman

Helix Resources Limited Annual Report 2015

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Auditor’s Independence Declaration To the Directors of Helix Resources Limited

Level 1 10 Kings Park Road West Perth WA 6005 Correspondence to: PO Box 570 West Perth WA 6872 T +61 8 9480 2000 F +61 8 9322 7787 E [email protected] W www.grantthornton.com.au

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Helix Resources Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been:

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

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M A Petricevic Partner - Audit & Assurance

Perth, 22 September 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

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

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

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Level 1 10 Kings Park Road West Perth WA 6005

Correspondence to: PO Box 570 West Perth WA 6872

Independent Auditor’s Report To the Members of Helix Resources Limited

T +61 8 9480 2000 F +61 8 9322 7787 E [email protected] W www.grantthornton.com.au

Report on the financial report

We have audited the accompanying financial report of Helix Resources Limited (the “Company”), which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

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

Auditor’s responsibility

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

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

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

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

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

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

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

Independence

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

Auditor’s opinion

In our opinion:

a the financial report of Helix Resources Limited is in accordance with the Corporations Act 2001, including:
i giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and
ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements.

Report on the remuneration report

We have audited the remuneration report included in pages 18 to 22 of the directors’ report for the year ended 30 June 2015. The Directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

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Auditor’s opinion on the remuneration report

In our opinion, the remuneration report of Helix Resources Limited for the year ended 30 June 2015, complies with section 300A of the Corporations Act 2001.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M A Petricevic Partner - Audit & Assurance

Perth, 22 September 2015

DIRECTORS’ DECLARATION

The Directors of the company declare that:

The consolidated financial statements and notes, as set out on pages 28 to 50 are in accordance with the Corporations Act 2001 and:-
a. comply with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and
b. give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended on that date of the group; and
c. complies with International Financial Reporting Standards as disclosed in Note 1.
the Chief Executive Officer and Chief Finance Officer have each declared that:-
a. the financial records of the Company for the financial year have been properly maintained in accordance with s 286 of the Corporations Act 2001;
b. the financial statements and notes for the financial year comply with the Accounting Standards; and
c. the financial statements and notes for the financial year give a true and fair view;
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable;

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

On behalf of the Directors

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Pasquale Rombola Chairman

Signed at Perth this 22[nd] day of September 2015.

Helix Resources Limited Annual Report 2015

AS AT 30 JUNE 2015

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			CONSOLIDATED	CONSOLIDATED
	Note	2015		2014
		$		$
Current Assets
Cash and Cash Equivalents	2	1,582,850		1,711,410
Trade and Other Receivables	3		49,939	79,235
Other Financial Assets	4	1,660,000		60,624

Total Current Assets		3,292,789		1,851,269
Non-Current Assets
Property, Plant & Equipment	6		41,721	52,859
Exploration and Evaluation	7	9,142,899		11,892,694
Trade and Other Receivables	3		-	2,500,243
Other Financial Assets	5		87,148	123,585

Total Non-Current Assets		9,271,768		14,569,381
Total Assets		12,564,557		16,420,650
Current Liabilities
Trade and Other Payables	8		197,221	242,370
Short Term Provisions	9		62,396	44,981

Total Current Liabilities			259,617	287,351
Non- Current Liabilities
Long Term Provisions	9		2,653	467
Total Non-Current Liabilities			2,653	467
Total Liabilities			262,270	287,818
Net Assets		12,302,287		16,132,832
Equity
Share Capital	10	61,280,044		60,009,350
Reserves	11		-	873,247
Accumulated Losses	12	(48,977,757)		(44,749,765)
Total Equity		12,302,287		16,132,832

This statement should be read in conjunction with the Notes to the Financial Statements

Helix Resources Limited Annual Report 2015

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

		CONSOLIDATED	CONSOLIDATED
	Note	2015	2014
		$	$
Revenue	13	72,161	99,367
Other Income		-	13,058
Employment Costs		(174,996)	(118,482)
Audit and Accountancy		(89,884)	(86,892)
Corporate Marketing		(5,641)	(19,001)
Directors’ Fees		(90,000)	(48,971)
Depreciation	14	(11,138)	(17,691)
Foreign Exchange Loss/(Gain)		38,478	(8,832)
Impairment of Exploration and Evaluation Assets	7	(1,383,568)	(2,102,704)
Information Technology Costs		(19,124)	(2,919)
Premises Costs		(104,689)	(40,585)
Professional Services		(28,047)	(13,964)
Travel expenses		(17,608)	(9,473)
Revaluation of Shares in Listed Companies		12,524	384
Loss on Settlement of Receivable	3	(1,287,743)	-
Loss on Sale of Project	7	(1,578,000)	-
Finance Costs		-	(74,757)
Other Expenses		(101,414)	(45,969)
Loss before income tax		(4,768,689)	(2,477,431)
Income tax benefit	18	467,258	505,846
Loss for the year		(4,301,431)	(1,971,585)
Other Comprehensive Income
Fair value movements on available for sale financial
assets		-	-
Income tax relating to other comprehensive income		-	-
Other comprehensive income, after tax		-	-
Total Comprehensive Loss attributable to members of Helix Resources Limited		(4,301,431)	(1,971,585)
Loss Per Share
Basic (cents per share)	20	(1.64)	(0.96)
Diluted (cents per share)	20	(1.64)	(0.96)

This statement should be read in conjunction with the Notes to the Financial Statements

Helix Resources Limited Annual Report 2015

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

		CONSOLIDATED
	Note	2015	2014
		$	$
Cash Flow From Operating Activities
Payments to suppliers and employees		(645,495)	(471,033)
Interest received		29,836	45,288
Income tax benefit	18	467,257	505,846
Other receipts		40,468	53,921
Net cash provided/(used in) by operating activities	2(b)	(107,934)	134,022
Cash Flow From Investing Activities
Payments for capitalised exploration & evaluation expenditure		(1,118,116)	(2,220,463)
Proceeds from sale of property, plant & equipment		37,041	-
Proceeds from sale of mineral interest		525,000	175,000
Proceeds from security deposits		17,085	16,415
Net cash provided by/(used in) investing activities		(538,990)	(2,029,048)
Cash Flow From Financing Activities
Proceeds from issue of shares		479,886	750,000
Proceeds from issue of options		-	25,016
Net cash provided by financing activities		479,886	775,016
Net decrease in cash and cash equivalents held		(167,038)	(1,120,010)
Exchange rate adjustment		38,478	(8,832)
Cash and cash equivalents at beginning of financial year		1,711,410	2,840,252
Cash and cash equivalents at End of Financial Year	2(a)	1,582,850	1,711,410

This statement should be read in conjunction with the Notes to the Financial Statements

Helix Resources Limited Annual Report 2015

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2015

CONSOLIDATED	Share Capital
2015	Ordinary	Other Reserves	Accumulated Losses	Total
	$	$	$	$
Total equity at the beginning of the financial year	60,009,350	873,247	(44,749,765)	16,132,832
Exercise of options during the financial year	1,279,694	(799,808)	-	479,886
Share issue costs during the financial year	(9,000)	-	-	(9,000)
Expiry of options during the financial year	-	(73,439)	73,439	-
Total transactions with owners	61,280,044	-	(44,676,326)	16,603,718
Loss for the year	-	-	(4,301,431)	(4,301,431)
Other comprehensive income for the year	-	-	-	-
Total comprehensive income	-	-	(4,301,431)	(4,301,431)
Total equity at the end of the financial year	61,280,044	-	(48,977,757)	12,302,287

CONSOLIDATED	Share Capital
2014	Ordinary	Other Reserves	Accumulated Losses	Total
	$	$	$	$
Total equity at the beginning of the financial year	59,192,640	914,941	(42,778,180)	17,329,401
Shares issued during the financial year	750,000	-	-	750,000
Exercise of options during the financial year	66,710	(41,694)	-	25,016
Total transactions with owners	60,009,350	873,247	(42,778,180)	18,104,417
Loss for the year	-	-	(1,971,585)	(1,971,585)
Other comprehensive income for the year	-	-	-	-
Total comprehensive income	-	-	(1,971,585)	(1,971,585)
Total equity at the end of the financial year	60,009,350	873,247	(44,749,765)	16,132,832

This statement should be read in conjunction with the Notes to the Financial Statements

Helix Resources Limited Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

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 financial statements for Helix Resources Limited as the Consolidated Entity (Group) consisting of Helix Resources Limited and its controlled entities. The Group is a for-profit entity for financial reporting purposes.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

Accounting policies

Material 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) Principles of Consolidation

The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 30 June 2015. The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have a reporting date of 30 June.

All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.

Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests.

b ) Cash and Cash Equivalents

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

c) 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.

Rebates received for research and development tax concessions are recognised in the profit or loss.

Helix Resources Limited Annual Report 2015

d) Plant and Equipment

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal.

The depreciation rates used for each class of depreciable assets are:

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

De-recognition and disposal

An item of property, plant and equipment is derecognised on disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on the de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.

e) Exploration and evaluation

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

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.

f ) 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.

g ) 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 reporting 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 reporting date which are classified as non-current assets. Loans and receivables are included in receivables in the Statement of Financial Position.

(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 reporting 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 profit or loss 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 profit or loss as gains and losses from investment securities.

Helix Resources Limited Annual Report 2015

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 reporting 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 or loss - is removed from equity and recognised in the profit or loss. Impairment losses recognised in the profit or loss on equity instruments are not reversed through the profit or loss.

h) 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 reporting 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.

i) Interest in Joint Venture Operations

Associates are those entities over which the Group is able to exert significant influence but which are not subsidiaries.

A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations for underlying liabilities. A joint arrangement in which the Group has direct rights to underlying assets and obligations for underlying liabilities is classified as a joint operation.

Investments in associates and joint ventures are accounted for using the equity method. Interests in joint operations are accounted for by recognising the Group’s assets (including its share of any assets held jointly), its liabilities (including its share of any liabilities incurred jointly), its revenue from the sale of its share of the output arising from the joint operation, its share of the revenue from the sale of the output by the joint operation and its expenses (including its share of any expenses incurred jointly).

Any goodwill or fair value adjustment attributable to the Group’s share in the associate or joint venture is not recognised separately and is included in the amount recognised as investment.

The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise the Group’s share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with the accounting policies of the Group.

Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment.

Details of interests in joint ventures are shown at Note 21.

j ) 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.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument and is net of GST.

Helix Resources Limited Annual Report 2015

k ) 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.

l) Receivables

Other receivables are recorded at amounts due less any specific allowance for impairment.

m) 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 statement of cash flows 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.

n ) Impairment of Non-financial Assets

Non-financial 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).

o) 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 reporting 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 reporting 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.

p) Critical Accounting Estimates and Other Accounting Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group is of the view that there are no critical accounting estimates and judgements in this financial report, other than accounting estimates and judgements in relation to the following:

Exploration and evaluation expenditure

The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of resources or reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded. Such capitalised expenditure is carried at the end of the reporting period at $9.14M.

Fair value of options issued

Management apply valuation techniques to determine the fair value of financial instruments where active market quotes are not available. This requires management to develop estimates and assumptions based on market inputs, using observable data that market participants would use in pricing the instrument. Where such data is not observable, management uses its best estimate. Estimated fair values of financial instruments may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.

q) 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 statement of profit or loss and other comprehensive income 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.

Helix Resources Limited Annual Report 2015

r) New and amended Accounting Standards adopted by the Group

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

AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting financial assets and financial liabilities adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria of AASB 132. AASB 2012-3 is applicable to annual reporting periods beginning on or after 1 January 2014 and has been adopted in this financial report. The adoption of these amendments has not had a material impact on the Group as the amendments merely clarify the existing requirements in AASB 132.

AASB 2013-3 Recoverable Amount Disclosures for Non-Financial Assets contains narrow-scope amendments that address disclosure of information about the recoverable amount of impaired assets if that amount is based on fair value less costs of disposal. When developing IFRS 13 Fair Value Measurement, the IASB decided to amend IAS 36 Impairment of Assets to require disclosures about the recoverable amount of impaired assets. The IASB noticed however that some of the amendments made in introducing those requirements resulted in the requirement being more broadly applicable than the IASB had intended. These amendments to IAS 36 therefore clarify the IASB’s original intention that the scope of those disclosures is limited to the recoverable amount of impaired assets that is based on fair value less costs of disposal. AASB 2013-3 makes the equivalent amendments to AASB 136 Impairment of Assets and is applicable to annual reporting periods beginning on or after 1 January 2014. The adoption of these amendments in this financial report has not had a material impact on the Group as they are largely of the nature of clarification of existing requirements.

AASB 2014-1 Amendments to Australian Accounting Standards (Part A: Annual Improvements 2010-2012 and 2011-2013 Cycles). Part A of AASB 2014-1 makes amendments to various Australian Accounting Standards arising from the issuance by the IASB of International Financial Reporting Standards Annual Improvements to IFRSs 2010-2012 Cycle and Annual Improvements to IFRSs 2011-2013 Cycle.

Among other improvements, the amendments arising from Annual Improvements to IFRSs 2010-2012 Cycle:

clarify that the definition of a ‘related party’ includes a management entity that provides key management personnel services to the reporting entity (either directly or through a group entity)
amend AASB 8 Operating Segments to explicitly require the disclosure of judgements made by management in applying the aggregation criteria

Among other improvements, the amendments arising from Annual Improvements to IFRSs 2011-2013 Cycle clarify that an entity should assess whether an acquired property is an investment property under AASB 140 Investment Property and perform a separate assessment under AASB 3 Business Combinations to determine whether the acquisition of the investment property constitutes a business combination. Part A of AASB 2014-1 is applicable to annual reporting periods beginning on or after 1 July 2014. The adoption of these amendments has not had a material impact on the Group as they are largely of the nature of clarification of existing requirements.

Impact of Standards issued but not yet applied by the Group

New and revised accounting standards and amendments that are currently issued for future reporting periods that are relevant to the Group include:

AASB 9 Financial Instruments introduces new requirements for the classification and measurement of financial assets and liabilities. These requirements improve and simplify the approach of classification and measurement of financial assets compared with the requirements of AASB 139. The effective date is for annual reporting periods beginning on or after 1 January 2018.

The Group is yet to undertake a detailed assessment of the impact of AASB 9. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019.

AASB 14 Regulatory Deferral Accounts permits first-time adopters of Australian Accounting Standards who conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP. Accordingly, an entity that applies AASB 14 may continue to apply its previous GAAP accounting policies for the recognition, measurement, impairment and derecognition of its regulatory deferral account balances. This exemption is not available to entities who already apply Australian Accounting Standards. The effective date is for annual reporting periods beginning on or after 1 January 2016. When AASB 14 becomes effective for the first time for the year ending 30 June 2017, it will not have any impact on the entity.

AASB 15 Revenue from Contracts with Customers replaces AASB 118: Revenue, AASB 111 Construction Contracts and some revenue-related Interpretations. In summary, AASB 15:

establishes a new revenue recognition model;
changes the basis for deciding whether revenue is to be recognised over time at a point in time;
provides a new and more detailed guidance on specific topics (eg multiple element arrangements, variable pricing, rights of return and warranties); and
expands and improves disclosures about revenue.

When this Standard is first adopted for the year ending 30 June 2018, there will be no material impact on the transactions and balances recognised in the financial statements.

AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations impacts on the use of AASB 11 when acquiring an interest in a joint operation. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.

Helix Resources Limited Annual Report 2015

AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation. The amendments to AASB 116 prohibit the use of a revenue-based depreciation method for property, plant and equipment. Additionally, the amendments provide guidance in the application of the diminishing balance method for property, plant and equipment. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements. The amendments introduce the equity method of accounting as one of the options to account for an entity’s investments in subsidiaries, joint ventures and associates in the entity’s separate financial statements. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture. The amendments address a current inconsistency between AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures (2011). The amendments clarify that, on a sale or contribution of assets to a joint venture or associate or on a loss of control when joint control or significant influence is retained in a transaction involving an associate or a joint venture, any gain or loss recognised will depend on whether the assets or subsidiary constitute a business, as defined in AASB 3 Business Combinations. Full gain or loss is recognised when the assets or subsidiary constitute a business, whereas gain or loss attributable to other investors’ interests is recognised when the assets or subsidiary do not constitute a business. The effective date is for annual reporting periods beginning on or after 1 January 2016. When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.

s) 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 monetise its tenement assets. However, if the Group does not raise capital in the short term, it can continue as a going concern by selling (or part thereof) its interest in its listed investments.

t) Foreign Currency Translation

Functional and presentation currency

The consolidated financial statements are presented in Australian dollars (AUD), which is also the functional currency of all entities in the group.

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at year end exchange rates are recognised in profit or loss. Non-monetary items are not retranslated at year-end and are measured at historical cost (translated using the exchange rates at the date of the transaction), except for nonmonetary items measured at fair value which are translated using the exchange rates at the date when fair value was determined.

Helix Resources Limited Annual Report 2015

2. NOTES TO THE CASH FLOW STATEMENT

a) Reconciliation of Cash

For the purposes of the statement of cash flows and statement of financial position, 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 statement of cash flows is reconciled to the related items in the statement of financial position as follows:

	CONSOLIDATED	CONSOLIDATED
	2015	2014
	$	$
Cash on Hand	196	300
Cash at Bank	1,582,654	1,711,110
Total Cash	1,582,850	1,711,410

Cash on hand is non-interest bearing. Cash at bank bears floating interest rates between 0.00% and 2.35% (2014: between 0.00% and 2.40%).

b) Reconciliation of loss after income tax to cash flows provided by operating activities

	CONSOLIDATED
	2015	2014
	$	$
Loss after income tax	(4,301,431)	(1,971,585)
Non-cash flows in Loss
Depreciation	11,138	17,691
Impairment of Exploration and evaluation	1,383,568	2,102,704
Profit on sale of fixed assets	-	(13,058)
Loss on revaluation of fair value through profit & loss financial assets	(12,524)	(384)
Gain on foreign exchange transactions	(38,478)	8,832
Finance costs	-	74,757
Loss on sale of investment	2,865,743	-
Changes in Net Assets and Liabilities
(Increase)/Decrease in Assets
Decrease in trade and other receivables	7,997	43,846
Increase/(Decrease) in Liabilities
Increase / (decrease) in trade and other payables	(43,548)	18,108
Increase / (decrease) in provisions	19,601	(146,889)
Net Cash provided by Operating Activities	(107,934)	134,022

3. TRADE AND OTHER RECEIVABLES

	CONSOLIDATED
CURRENT RECEIVABLES	2015 $	2014 $
Prepayments	10,385		11,753
Other Receivables	39,554		67,482
Total Current Receivables	49,939		79,235

All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value. A total of nil (2014: nil) are past 30 days due. No current or past due receivables were impaired at the end of the financial year.

Helix Resources Limited Annual Report 2015

	CONSOLIDATED
NON-CURRENT RECEIVABLES	2015 $	2014 $
Deferred payment for sale of Olary Magnetite Pty Ltd	-	2,500,243
to Lodestone Equities
Total Non-Current Receivables	-	2,500,243

During the period, the Group received $25,000 in cash and 12,500,000 shares in ASX listed Tigers Realm Coal Limited to settle the Olary sale (refer note 4). A loss of $1,287,743 was recognised.

4. OTHER FINANCIAL ASSETS - CURRENT

		CONSOLIDATED
		2015	2014
		$	$
(a)	Security Deposits	80,000	60,000
(b)	Shares in listed corporations – financial asset at fair value throughprofit or loss held for trading1	1,580,000	624
Total	Current Financial Assets	1,660,000	60,624

Changes in fair values of financial assets held for trading are recorded in the profit and loss.

1 – Movement in shares in listed corporations held for trading is as follows:

	CONSOLIDATED
	2015	2014
	$	$
Opening balance	624		240
Acquisitions*	1,567,500		-
Revaluation of shares in listed corporations	12,500		384
Disposals/Transfer to Non-Current	(624)		-
Closing balance	1,580,000		624

*The acquisitions relate to the consideration received for the sale of Helix’s interest in Tunkillia to WPG Resources for 10 million shares in WPG Resources (escrowed for 6 months and released on 16 September 2015) and the settlement of the sale of Olary Magnetite Pty Ltd to Lodestone Equities for 12,500,000 share is ASX listed Company Tigers Realm.

4(a) Shares in subsidiaries

Name	Country of Incorporation	Principal Activity	Percentage Held	Percentage Held
			2015	2014
Oxley Exploration Pty Ltd*	Australia	Mineral Exploration	100%	100%
Leichhardt Resources (QLD) Pty Ltd*	Australia	Mineral Exploration	100%	100%
Helix Resources (Overseas) Pty Ltd*	Australia	Mineral Exploration	100%	100%
Helix Resources Chile Limitada*	Chile	Mineral Exploration	100%	100%

All Subsidiaries’s primary activities are mineral exploration.

5. OTHER FINANCIAL ASSETS – NON CURRENT

		CONSOLIDATED
		2015	2014
		$	$
(a)	Security Deposits	86,500	123,585
(b)	Shares in listed corporations – held for trading	648	-
Total	Other Assets – Non-Current	87,148	123,585

Changes in fair values of financial assets held for trading are recorded in the profit and loss.

Helix Resources Limited Annual Report 2015

6. PROPERTY, PLANT AND EQUIPMENT

	CONSOLIDATED	CONSOLIDATED
2015	Plant & Equipment	Motor Vehicles	Total
	$	$	$
Gross Carrying Amount
Balance at 30 June 2014	119,533	94,856	214,389
Disposals	-	-	-
Balance at 30 June 2015	119,533	94,856	214,389
Accumulated Depreciation
Balance at 30 June 2014	86,079	75,451	161,530
Depreciation	6,771	4,367	11,138
Depreciation write off on disposal	-	-	-
Balance at 30 June 2015	92,850	79,818	172,668
Net Book Value
30 June 2015	26,683	15,038	41,721

	CONSOLIDATED
2014	Plant & Equipment	Motor Vehicles	Total
	$	$	$
Gross Carrying Amount
Balance at 30 June 2013	180,678	182,556	363,234
Disposals	(61,145)	(87,700)	(148,845)
Balance at 30 June 2014	119,533	94,856	214,389
Accumulated Depreciation
Balance at 30 June 2013	126,803	141,469	268,272
Depreciation	10,247	7,444	17,691
Depreciation write off on disposal	(50,971)	(73,462)	(124,433)
Balance at 30 June 2014	86,079	75,451	161,530
Net Book Value
30 June 2014	33,454	19,405	52,859

Helix Resources Limited Annual Report 2015

7. EXPLORATION AND EVALUATION EXPENDITURE (NON-CURRENT)

	CONSOLIDATED
	2015	2014
	$	$
Balance at beginning of the financial year	11,892,694	12,038,911
Expenditure incurred during the year	1,091,773	1,956,487
Sale of Tunkillia area of interest1	(2,458,000)	-
Impairment losses	(1,383,568)	(2,102,704)
Balance at the end of the financial year	9,142,899	11,892,694

1 The Group received $500,000 in cash and 10 million shares in ASX listed WPG Resources which resulted in the Company booking a loss of the sale of the Tunkilla tenements of $1,578,000.

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.

The impairment losses for the current financial year related to the following projects:

Oxley Exploration Pty Ltd ($713,260) – tenements were relinquished.
Hado project - Chile ($498,649) - Carrying value was adjusted to reflect current market value.
Embrujado project - Chile ($171,659) – Carrying value was adjusted to reflect current market value.

8. TRADE AND OTHER PAYABLES

	CONSOLIDATED
	2015	2014
	$	$
Trade Payables	197,221	242,370
Total Trade Payables	197,221	242,370

All amounts are current and are expected to be settled within 12 months. The carrying value of trade payables is considered to be a reasonable approximation of fair value.

9. PROVISIONS

	CONSOLIDATED
	2015 2014
	$ $
	Current Employee Benefits 62,396 44,981

	Total Current Provisions 62,396 44,981
	Non-Current Employee Benefits 2,653 467


	Total Non-Current Provisions 2,653 467

10. SHARE CAPITAL

	CONSOLIDATED
	2015	2014
	$	$
268,466,692 Fully Paid Ordinary Shares (2014: 236,474,341)	61,280,044	60,009,350
Total Share Capital	61,280,044	60,009,350

Helix Resources Limited Annual Report 2015

			2014
	No	$	No	$
Fully Paid Ordinary Shares
Balance at beginning of financial year	236,474,341	60,009,350	204,806,589	59,192,640
Conversion HLXO Options @ $0.04	31,992,351	1,279,694	1,667,752	66,710
Share Issue: 30,000,000 Fully Paid Shares @ $0.025	-	-	30,000,000	750,000
Share Issue Costs	-	(9,000)
Balance at end of financial year	268,466,692	61,280,044	236,474,341	60,009,350

Fully paid ordinary shares have no par value, carry one vote per share and carry the right to dividends. Options carry no voting rights until converted to fully paid ordinary shares.

Capital Management

Management controls the capital of the group in order to maximise the return to shareholders and ensure that the group can fund its operations and continue as a going concern.

Management effectively manages the group’s capital by assessing the group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of expenditure and debt levels, distributions to shareholders and share and option issues.

There have been no changes in the strategy adopted by management to control the capital of the group since the prior year.

11. OTHER RESERVES

				2014
	No.	$		No.	$
Listed Options
Balance at beginning of financial year	34,929,853		873,247	36,597,605		914,941
Options issued during the financial year	-		-	-		-
Exercise of Options to Fully Paid Shares	(31,992,351)		(799,808)	(1,667,752)		(41,694)
Expiry of Options	(2,937,502)		(73,439)	-		-
Balance at end of financial year	-		-	34,929,853		873,247

There were no other options on issue in either 2014 or 2015.

12. ACCUMULATED LOSSES

	CONSOLIDATED	CONSOLIDATED
	2015	2014
	$	$
Balance at beginning of financial year	(44,749,765)	(42,778,180)
Net Loss attributable to members of the parent entity	(4,301,431)	(1,971,585)
Expiry of Options	73,439	-
Balance at end of financial year	(48,977,757)	(44,749,765)

13. REVENUE

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

	CONSOLIDATED
	2015	2014
	$	$
Operating Activities
Interest Revenue	30,641	45,446
Other	41,520	53,921
Total Revenue	72,161	99,367

Helix Resources Limited Annual Report 2015

14. LOSS FOR THE YEAR

	CONSOLIDATED	CONSOLIDATED
	2015	2014
	$	$
Expenses
Depreciation of non-current assets: Property, plant and equipment	(11,138)	(17,691)
Impairment of exploration and evaluation assets	(1,383,568)	(2,102,704)
Operating lease rental expenses: Minimum lease payments	(72,735)	(151,896)
Defined contribution superannuation expense	(25,820)	(53,090)
Loss for the year	(4,301,431)	(1,971,585)

15. COMMITMENTS

a) Operating Lease Commitments

	CONSOLIDATED
	2015	2014
	$	$
Not later than 1 year	28,760		17,710
Later than 1 year but not later than 2 years
	-		-
Later than 2 years but not later than 5 years
	-		-
	28,760		17,710

The lease for the office and the shed are for a 1 year term with an option to extend for a further 2 years. As at reporting date, there was a balance of 6 months remaining on the office lease and a balance of 10 months remaining on the shed lease.

b) Exploration Expenditure Commitments

In order to maintain current rights of tenure to exploration tenements, the Group is 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 Group’s operations in exploring and evaluating areas of interest, it is very difficult to forecast the nature and amount of future expenditure commitments beyond the next 12 months. It is anticipated that expenditure commitments for the next twelve months will be tenement rentals of $31,414 (2014: $191,755) and, subject to cash reserves and economic conditions, exploration expenditure of $465,000 including the above rentals (2014: $1,031,473). JV partners are expected to fund activities in accordance with our current Joint Venture arrangements.

16. KEY MANAGEMENT PERSONNELS’ REMUNERATION

Please refer to disclosures contained in the Remuneration Report section of the Directors’ Report.

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

	2015		2014
	$		$
Short term employee benefits		379,282	535,439
Post-employment benefits		17,391	34,702
Total		396,673	570,141

17. RELATED PARTY AND DIRECTORS’ DISCLOSURES

(a) Other Transactions with key management personnel

There were no items of expenses that resulted from transactions other than remuneration with key management personnel or their personally-related entities as shown in the remuneration report. Transactions between related parties are on normal commercial terms and conditions unless otherwise stated.

(b) Parent entity

The ultimate parent entity of the Group is Helix Resources Limited.

Helix Resources Limited Annual Report 2015

18. INCOME TAX

	CONSOLIDATED
	2015 2014
	$ $
	Accounting profit / (loss) before tax from continuing operations (4,768,688) (2,477,431)
	Accounting profit / (loss) before tax (4,768,688) (2,477,431)
	Reconciliation of Income Tax Expense / (Benefit) to Accounting Profit / (Loss)
	Prima facie tax payable / (benefit) at Australian rate of 30% (2014 – 30%) (1,229,514) (743,229)
	Prima facie tax payable / (benefit) at Chilean rate of 20% (2014 – 20%) (150,819) -
	Adjusted for tax effect of the following:
	- taxable / non-deductible items 1,075 422
	- non-taxable / deductible items (38,114) (8,327)
	-research and development expenditure 311,505 197,120
	-under / (over) provision in prior year 311,505 197,120
	- benefit of previously unrecognised tax losses - -
	- adjustment for change of Chilean tax rate (5,306) -
	- income tax benefit not brought to account 1,111,173 554,014
	Research and development tax benefit (467,257) (505,846)
	Income tax expense / (benefit) (467,257) (505,846)
	Statement of Profit or Loss and Other Comprehensive Income
	Current income tax charge - -
	R&D tax benefit (467,257) (505,846)
	Deferred income tax
	Relating to origination and reversal of temporary differences 809,935 101,488
	Australian temporary differences not brought to account (792,072) (302,152)
	Adjustment for change of Chilean tax rate (129,314) -
	Chilean deferred tax liabilities offset by deferred tax asset losses 111,451 200,664
	Income tax expense/(benefit) reported in statement of profit or loss & other comprehensive income (467,257) (505,846)
	Unrecognised Deferred Tax Balances:
	Australian deferred tax asset losses 11,765,920 11,377,789
	Australian deferred tax asset losses lapsed - (564,629)
	Chilean deferred tax asset losses 198,565 42,441
	Australian deferred tax assets other 26,630 24,343
	Net Unrecognised deferred tax assets 11,991,115 10,879,944
	Recognised Deferred Tax Balances:
	Deferred tax assets:
	Australian deferred tax assets 1,226,299 2,016,083
	Chilean deferred tax assets 1,145,966 1,034,515
	Deferred tax assets 2,372,265 3,050,598
	Deferred tax liabilities:
	Australian deferred tax liabilities (1,226,299) (2,016,083)
	Chilean deferred tax liabilities (1,145,966) (1,034,515)
	Deferred tax liabilities (2,372,265) (3,050,598)
	Net deferred tax - -

Helix Resources Limited Annual Report 2015

19. SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (Chief Operating decision makers) in assessing performance and determining the allocation of resources.

The Group is managed on the basis it is a mineral exploration company operating predominately in the geographical region of Australia, mainly in Western Australia, New South Wales and South Australia, with a developing operation in Chile which currently represents ±43% of mineral asset expenditure. The mineral assets held via outright ownership or joint venture are considered one business segment and the minerals currently being targeted include gold, copper, iron ore and other base metals. Decisions are made on a prospectivity basis, not a geographical or commodity basis.

	Australia Chile Total
	2015 2014 2015 2014 2015 2014
	Current Assets Cash 1,578,678 1,701,080 4,172 10,330 1,582,850 1,711,410 Non-Current Assets Mineral Assets 4,762,978 8,822,823 5,763,489 5,172,575 10,526,467 13,995,398 Impairment expense (713,261) (2,102,704) (670,307) - (1,383,568) (2,102,704)
	Carrying Amount 4,049,717 6,720,119 5,093,182 5,172,575 9,142,899 11,892,694
	Current Liabilities Trade payables 164,194 150,135 33,027 92,235 197,221 242,370 Revenue 72,161 99,367 - - 72,161 99,367 Depreciation 11,138 17,691 - - 11,138 17,691 Loss before tax (4,098,382) (2,477,431) (670,307) - (4,768,689) (2,477,431)

20. EARNINGS PER SHARE

		COMPANY
	2015	2014
	Cents Per share	Cents Per share
Basic earning / (loss) per share	(1.64)	(0.96)
Diluted earning /(loss) per share	(1.64)	(0.96)
*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:
	2015	2014
	$	$
Earnings / (loss) (a)	(4,301,431)	(1,971,585)
	2015	2014
	No.	No.
Weighted average number of ordinary shares (b)	263,005,373	205,317,481
(a) Earnings used in the calculation of basic earnings per share is	net loss after tax of $4,301,431	(2014: $1,971,585).

Helix Resources Limited Annual Report 2015

Diluted Loss per Share

*Diluted Loss per Share*	*Diluted Loss per Share*	*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:
	2015	2014
	$	$
Earnings/(loss) (a)	(4,301,431)	(1,971,585)
	12 months to 30 June 2015	12 months to 30 June 2014
	No.	No.
Weighted average number of ordinary shares and potential ordinary shares (b)	263,005,373	205,317,481
(a) Earnings used in the calculation of diluted loss per share is net loss after tax of $4,301,431 (2014: loss of $1,971,585).
(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:
	2015	2014
	No.	No.
Listed options	-	34,929,853

21. INTEREST IN JOINT OPERATIONS

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

Joint Operations Project	Percentage Interest	Principal Exploration Activities
Yalleen	30% (2014: 30%) (API Management Pty Ltd 70% Iron Ore rights)	Iron Ore
Restdown JV	70% (2014: 70%) (Glencore)	Gold
Canbelego	70% (2014: 70%) (Straits Resources)	Copper

The joint operations 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 operations. The Group’s interest in exploration expenditure in the above mentioned joint operations is as follows:

	Yalleen Joint	Restdown Joint	Canbelego Joint
	Operation	Operation	Operation
	30%	70%	70%
Non-Current Assets
Mineral Assets	4,632	1,753,010	1,080,785
Impairment	-	-	-
Carrying Amount	4,632	1,753,010	1,080,785

The recoverability of the carrying amount of the mineral assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

Helix Resources Limited Annual Report 2015

22. 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.

Financial Instruments Measured at Fair Value

The financial instruments recognised at fair value in the statement of financial position have been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:

quoted prices in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

2015	Level 1	Level 2		Level 3		Total
						$
Financial Assets
Held for trading assets	1,580,648		-		-	1,580,648
Available for sale assets	-		-		-	-
	1,580,648		-		-	1,580,648

2014	Level 1	Level 2		Level 3		Total
						$
Financial Assets
Held for trading assets	624		-		-	624
Available for sale assets	-		-		-	-
	624		-		-	624

Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on the closing quoted bid prices at reporting date, excluding transaction costs. The Group has no other financial instruments for which fair value is derived without reference to unadjusted quoted prices in an active market for identified assets.

Financial Risk Exposures and Management

The main risks the group is exposed to through its financial instruments are interest rate risk, foreign currency risk, liquidity risk and credit risk. The Board is responsible for the financial risk management.

Interest Rate Risk

Interest rate risk is managed by investing cash with major financial institutions in both cash on deposit and term deposit accounts. The Group’s main interest risk arises from cash held on deposit by an Australian financial institution as it is subject to prevailing interest rates. As at the end of the reporting period, the Group had $166,500 (2014: $183,585) on deposit in interest bearing accounts earning a weighted average interest rate of 2.64% (2014: 3.15%).

Interest Rate Risk Sensitivity Analysis

At 30 June 2015, the effect on loss and equity as a result of a 50% increase in the interest rate, with all other variables remaining constant would be a decrease in loss (2014: decrease in loss) by $30,325 (2014: $22,723) and an increase in equity by $30,325 (2014: $22,723). The effect on loss and equity as a result of a 50% decrease in the interest rate, with all other variables remaining constant would be an increase in loss (2014: increase in profit) by $30,325 (2014: $22,723) and a decrease in equity by $30,325 (2014: $22,723).

Helix Resources Limited Annual Report 2015

The Group's exposure tointerestrateriskand effectiveweighted average	The Group's exposure tointerestrateriskand effectiveweighted average	The Group's exposure tointerestrateriskand effectiveweighted average	The Group's exposure tointerestrateriskand effectiveweighted average	interestrateforclasses of financial	interestrateforclasses of financial	interestrateforclasses of financial	assetsis set out below:
		Floating Interest Rate Maturity
	Average Interest Rate	Fixed Interest Rate		Less than 1 year	More than Year	1	Non Interest Bearing	Total
	%	$		$	$		$	$
2015
Financial Assets
Current Receivables			-	-		-	49,939	49,939
Non-current Receivables			-	-		-	-	-
Held for trading assets			-	-		-	1,580,648	1,580,648
Cash and cash equivalent assets	1.41%		-	1,582,654		-	196	1,582,850
Security deposits and deposits at financial institutions	2.64%		-	80,000	86,500		-	166,500
			-	1,662,654	86,500		1,630,783	3,379,937
Financial Liabilities
Trade Payables (all payable within 30 days)			-	-		-	197,221	197,221
			-	-		-	197,221	197,221

		Floating Interest Rate Maturity	Floating Interest Rate Maturity
	Average Interest Rate	Fixed Interest Rate	Less than 1 year	More than Year	1	Non Interest Bearing		Total
	%	$	$	$		$		$
2014
Financial Assets
Current Receivables		-	-		-		79,235	79,235
Non-current Receivables		-	-	2,500,243			-	2,500,243
Held for trading assets		-	-		-		624	624
Cash and cash equivalent assets	2.40%	-	1,711,110		-		300	1,711,410
Security deposits and deposits at financial institutions	3.15%	-	60,000	123,585			-	183,585
		-	1,771,110	2,623,828			80,159	4,475,097
Financial Liabilities
Trade Payables (all payable within 30 days)		-	-		-	242,370		242,370
		-	-		-	242,370		242,370

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.

Foreign Currency Risk

The Group is exposed to fluctuations in foreign currencies arising from expenditure in currencies other than the Group’s measurement currency. The Group is exposed to currency exposures to the United States Dollar and Chilean Pesos. The Group has not formalized a foreign currency risk management policy, however it monitors its foreign currency expenditure subject to exchange rate movements and retains the right to withdraw from the foreign exploration commitments after minimum expenditure targets have been met.

Helix Resources Limited Annual Report 2015

The Group’s exposures to foreign currency risk at the end of the reporting period, expressed in Australian dollars, were as follows:

2015	USD	CLP
Cash and cash equivalents	144,818	4,172
Trade and other payables	-	33,027
	144,818	37,199

2014	USD	CLP
Cash and cash equivalents	218,533	10,331
Trade and other payables	-	92,235
	218,533	102,566

Liquidity Risk

The Group manages liquidity risk by monitoring forecast cash flows and ensuring that sufficient cash and financial assets are available to meet the current and future commitments of the Group. 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.

Credit Risk

Credit risk refers to the risk that a 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. All cash and cash equivalents are held with financial institutions with a credit rating of AA3 or above.

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.

23. EMPLOYEE BENEFITS

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

	CONSOLIDATED
	2015	2014
	$	$
Provision for employee benefits:
Current (Note9)	62,396	44,981
Non-Current (Note 9)	2,653	467
	65,049	45,448
	No	No
Number of employees at end of financial year	3	3

24. CONTINGENT LIABILITIES

Bank Guarantees

The Company may be required to issue bank guarantees to secure tenement holdings. The Company currently has bank guarantees to the value of $143,500 (2014: $133,500) for tenement holdings.

Helix Resources Limited Annual Report 2015

25. REMUNERATION OF AUDITORS

25. REMUNERATION OF AUDITORS
	2015		2014
	$		$
a) Auditor of the Parent Entity
Auditing the financial report		25,430		28,315
		25,430		28,315

The auditor of Helix Resources Limited for the 2015 financial year is Grant Thornton Audit Pty Ltd.

26. HELIX RESOURCES LIMITED PARENT COMPANY INFORMATION

	Note	2015	2014
		$	$
Assets
Current Assets		3,293,437	1,850,168
Non-current Assets		9,271,120	14,569,380
Total Assets		12,564,557	16,419,548
Liabilities
Current Liabilities	8,9	259,617	286,249
Non-current Liabilities	9	2,653	467

Total Liabilities		262,270	286,716
Equity
Issued Capital		61,280,044	60,009,350
Accumulated Losses		(48,977,757)	(44,749,765)
Options Reserve		-	873,247
Total Equity		12,302,287	16,132,832
Financial Performance
Profit / (Loss) for the year	14	(4,301,431)	(1,971,585)
Total Comprehensive Income		(4,301,431)	(1,971,585)

27. SUBSEQUENT EVENTS

On 16 September 2015, all the listed shares Helix holds in WPG Resources Ltd were released from voluntary escrow.

The listed shares the Company holds in Tigers Realm Coal Limited have decreased in value from $0.10 per share as at 30 June 2015 to $0.06 per share as at 16 September 2015.

28. ADDITIONAL COMPANY INFORMATION

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

Registered Office Principal Place of Business 78 Churchill Avenue 78 Churchill Avenue SUBIACO WA 6008 SUBIACO WA 6008 Tel (08) 9321 2644 Tel (08) 9321 2644

The financial report for Helix Resources Limited for the year ended 30 June 2015 was authorised for issue in accordance with a resolution of the directors on the 22[nd] September 2015.

Helix Resources Limited Annual Report 2015

AS AT 14[th] SEPTEMBER 2015 NUMBER OF SHARES HELD

Spread of Holdings	Number of Shareholders	Number of Shares
1–1000	82	28,929
1,001–5,000	166	522,328
5,001–10,000	251	2,169,154
10,001–100,000	619	23,522,453
100,001 and over	252	242,223,828
Total	1,370	268,466,692

Number of shareholders holding less than a marketable parcel	577	3,661,637

PERCENTAGE HELD BY 20 LARGEST SHAREHOLDERS

	Shareholder	Number of Shares	% of Issued Capital
1	Gee Vee Pty Ltd	21,617,759	8.05
2	Yandal Investments Pty Ltd	21,172,514	7.89
3	Brisbane InvestmentsIandIILtd	13,063,829	4.87
4	HSBC Custody Nominees (Aust) Ltd	10,887,583	4.06
5	Rombola Family Pty Ltd	10,002,127	3.73
6	Blamnco Trading Pty Ltd	10,000,000	3.73
7	Creekwood Nominees Pty Ltd	8,247,227	3.07
8	Wythenshawe Pty Ltd	6,999,917	2.61
9	Seefeld Investments Pty Ltd	6,350,000	2.37
10	BTX Pty Ltd	4,681,293	1.74
11	Mr William Henry Hernstadt	4,502,728	1.68
12	Ocean View WA Pty Ltd	4,000,000	1.49
13	Ms Philippa Cummins	4,000,000	1.49
14	Primdonn Nominees Pty Ltd	4,000,000	1.49
15	Aotea Minerals Ltd	3,630,000	1.35
16	Technica Pty Ltd	3,513,332	1.31
17	Mr Michael Hood Wilson	3,106,667	1.16
18	Penoir Pty Ltd	3,000,000	1.12
19	HJH Nominees Pty Ltd	2,020,500	0.75
20	Flue Holdings Pty Ltd	2,000,000	0.75
	Top 20 Total	146,795,476	54.71

VOTING RIGHTS

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

Helix Resources Limited Annual Report 2015

SUBSTANTIAL SHAREHOLDERS

Shareholder	Number of Shares	% of Issued Capital
Gee Vee Pty Ltd	21,617,759	8.05
Yandal Investments Pty Ltd	21,172,514	7.89

DIRECTORS' INTEREST IN SHARE CAPITAL

Director	Fully Paid Ordinary Shares	Listed Options
M H Wilson	3,132,934	-
P R Rombola	10,002,127	-
J Macdonald	9,002,500	-
Total	20,537,561	-

Helix Resources Limited Annual Report 2015

TENEMENT SCHEDULE

Tenement	Name	Mineral		Ownership
NSW COPPER & GOLD PROJECTS (INCL.		CANBELEGO AND RESTDOWN JV's)
EL6105	Canbelego	Copper/Gold		Helix 70%, Straits 30%
EL6140	Restdown	Gold/Copper		Helix 70%, Glencore 30%
EL6336	Collerina	Copper/Gold		HLX 100% precious and base metals
EL6501	South Restdown	Copper/Gold		Helix 70%, Glencore 30%
EL6739	Muriel Tank	Gold/Copper		Helix 70%, Glencore 30%
EL7438	Quanda	Copper/Gold		HLX 100%
EL7439	Fiveways	Copper/Gold		HLX 100%
EL7482	Little Boppy	Copper/Gold		HLX 100%
YALLEEN IRON ORE PROJECT
E47/1169-I	Yalleen	Iron ore/Base metals	HLX	100%, API Management Pty Ltd 70% iron ore rights
E47/1170-I	Yalleen	Iron ore/Base metals	HLX	100%, API Management Pty Ltd 70% iron ore rights
E47/1171-I	Yalleen	Iron ore/Base metals	HLX	100%, API Management Pty Ltd 70% iron ore rights
CHILE PROJECTS
EXPLORATION CONCESSIONS
Joshua 1-39	Joshua	Copper/Gold		HLX 100%
Bogarin 1-51	Huallillinga	Copper/Gold		HLX 100%
EXPLOITATION CONCESSIONS
Blanco Y Negro 1/20	Blanco Y Negro	Copper/Gold		HLX 100%
La Cana 11/20	Blanco Y Negro	Copper/Gold		HLX 100%
Joshua A1/150	Joshua	Copper/Gold		HLX 100%
*Abbreviations and Definitions used in Schedule:*
EL or E	Exploration Licence

Helix Resources Limited Annual Report 2015

CORPORATE DIRECTORY

Directors

Pasquale Rombola Non-executive Chairman Michael Wilson Managing Director Jason Macdonald Non-executive Director

Australian Business Number

27 009 138 738

Head and Registered Office

78 Churchill Avenue

Subiaco, Western Australia 6008 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 Level 6, 225 Clarence Street Nedlands Western Australia 6009 Sydney NSW 2000 PO Box 1156 Nedlands Western Australia 6909 PO Box Q1736 Queen Victoria Building NSW 1230 Telephone: +61 8 9389 8033 +61 2 8096 3502 Facsimile: +61 8 9262 3723

Auditor

Grant Thornton Audit Pty Ltd 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 CODES: HLX and HLXO

Helix Resources Limited Annual Report 2015

AI assistant

HELIX RESOURCES LIMITED — Annual Report 2015

65059_rns_2015-09-21_79d5b311-7a29-4eef-ad74-fe3ca8b96435.pdf

ANNUAL REPORT

Table of Contents

CHAIRMAN’S REVIEW

Dear Shareholder,

Pasquale Rombola Chairman

REVIEW OF OPERATIONS

CHILE - COPPER AND GOLD PROJECTS

Background

Chile Strategy

Joshua Copper-Gold Project [100%] EPG Partners earning up to 50.1%

About the Joshua Project Joint Venture

Blanco y Negro Copper/Gold Project [100%]

Table 1 : ByN Deposit Material Type

Regional Copper/Gold Projects- Region IV Chile

The Samuel Prospect

COPPER & GOLD PROJECTS – NSW

Background

COLLERINA PROJECT – [Helix 100% of precious and base metals discoveries]

Collerina Prospect

CANBELEGO PROJECT JV – NSW

EL 6105 - Helix Resources Ltd 70%, Straits Resources 30%

Project Summary

RESTDOWN JV (INCLUDING MURIEL TANK PROJECT)

EL 6140, EL6501 & EL6739-Helix Resources 70%; Glencore 30 %

Sunrise/Good Friday (Restdown)

Browns Gold Prospect (Muriel Tank)

NON CORE ASSETS

YALLEEN IRON ORE PROJECT – WA

Helix Resources Ltd 30% (Diluting) JV interest and tenement owner; API (AMCI/Boasteel) 70% iron ore rights E 47/1169-1171

Project Summary

TUNKILLIA GOLD PROJECT SALE – SA

Stage1:

Stage 2*:

Resources

Review of material changes

Governance controls

Competent Persons Statement

Notes

CORPORATE GOVERNANCE

DIRECTORS

Pasquale Rombola B Ec

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

Jason Macdonald LLB, Bcomm

DIRECTORSHIPS OF OTHER LISTED COMPANIES

COMPANY SECRETARY

Michael Dylan Naylor Bcom, CA, AGIA

PRINCIPAL ACTIVITIES

FINANCIAL RESULTS

DIVIDENDS

REVIEW OF OPERATIONS

Mineral Asset Project Highlights include:-

CHILE

Joshua Copper Project [100%]

Blanco y Negro Copper/Gold Project [100%]

Huallillinga Copper/Gold Project [100%]

AUSTRALIA

Copper

Collerina Copper(+Gold) Project – NSW -[Helix 100% precious and base metals]

Canbelego Copper Project- NSW - [Helix 70%; Straits Resources 30%]

Gold

Restdown JV - NSW - [Helix 70%; Glencore 30%]

NSW Cobar Regional [Helix 100%]

Iron Ore

Corporate

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

SUBSEQUENT EVENTS

FUTURE DEVELOPMENTS

REMUNERATION REPORT [AUDITED]

Remuneration Governance

Overall Remuneration Framework

Executive Remuneration

Short Term Incentives

Long Term Incentives

Non-Executive Remuneration

Details of Remuneration

Consequences of performance on shareholder wealth

Service Agreements

HELIX RESOURCES LIMITED Annual Report 2015

**Stage 2*:**