HELIX RESOURCES LIMITED — Interim / Quarterly Report 2017

Mar 5, 2017

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31 DECEMBER 2016 HALF YEAR FINANCIAL REPORT

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HELIX RESOURCES LTD ACN 009 138 738

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Information should be read in conjunction with the 30 June 2016 Annual Report

HELIX RESOURCES LIMITED

Table of Contents

Corporate Directory ......................................................................................................................................... 1 Directors’ Report ............................................................................................................................................. 2 Auditor’s independence declaration ............................................................................................................. 12 Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................. 13 Consolidated Statement of Financial Position .............................................................................................. 14 Consolidated Statement of Changes in Equity .............................................................................................. 15 Consolidated Statement of Cash Flows ......................................................................................................... 16 Notes to the Half‐Year Financial Statements ................................................................................................ 17 Directors’ declaration .................................................................................................................................... 22 Independent review report ........................................................................................................................... 23

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FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

HELIX RESOURCES LIMITED

Project Location Map

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CORPORATE DIRECTORY

Directors M H Wilson Managing Director J Macdonald Non‐Executive Director M D Naylor Non‐Executive Director

Auditors

Grant Thornton Audit Pty Ltd Level 1, 10 Kings Park Road WEST PERTH WA 6005

Company Secretary & CFO D B Hanna

Registered Office and Business Address 78 Churchill Avenue SUBIACO WA 6008

Share Registry Advanced Share Registry 110 Stirling Highway NEDLANDS WA 6009

Telephone: +61 8 9389 8033 Facsimile: +61 8 9389 7871

Telephone: +61 8 9321 2644 Facsimile: +61 8 9321 3909 Website: www.helix.net.au

ASX Listing ASX Code: HLX

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

DIRECTORS’ REPORT

The Directors present the financial report of the Group, consisting of Helix Resources Ltd [“Company”] and its controlled entities, for the half‐year ended 31 December 2016.

DIRECTORS

The names of the Company’s directors in office during the half‐year and until the date of this report are as below. Directors were in the office for the entire period unless otherwise stated.

• Mr Michael Wilson Managing Director

• Mr Jason Macdonald Non‐Executive Director  Mr Michael Naylor Non‐Executive Director (appointed 28 November 2016)

• Mr Pasquale Rombola Non‐Executive Chairman (resigned 28 November 2016)

COMPANY SECRETARY

• Mr Michael Naylor (resigned 28 November 2016)

• Mr Dale Hanna (appointed 28 November 2016)

REVIEW OF OPERATIONS

The Company’s strategy is to advance its asset portfolio, with a focus on copper and gold, utilising the Company’s geological and corporate expertise to create and extract value for the benefit of shareholders.

NSW ‐ COPPER & GOLD PROJECTS

Helix holds highly prospective copper and gold projects in the Cobar‐Girilambone district. Helix is carrying out targeted geochemistry geophysics and drilling identifying new deposits in this prospective region. During the reporting period the Company has continued advancing its significant discoveries, the Collerina Copper Project and the Cobar Gold Project.

Collerina Copper Project

The Collerina Copper Project is located in a regionally significant VMS belt. The Project is prospective for high‐ grade copper, with associated zinc, silver and gold mineralisation hosted in a mixed volcanoclastic/sedimentary sequence. At the main Collerina Prospect, drilling has confirmed the presence of copper mineralisation over a 1,000m of strike/plunge with high‐grade copper identified from surface to a vertical depth of 350m along the main mineralised zone. The system remains open in all directions.

The Collerina tenement covers a 25km long portion of the prospective VMS trend, which extends into Helix’s regional tenements covering an additional 80kms of prospective strike. The project is close to infrastructure including the nearby Aeris operated Tritton Mine and associated deposits to the north, and the Tottenham copper deposits to the south.

Activities during the second half of 2016 were late starting due to bad weather over the winter period in Central NSW, however the Company continued to identify mineralisation in the drilling completed in the fourth quarter of 2016 and committed to a full‐coverage helicopter supported VTEM geophysical survey over the entire tenement.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

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Figure 1: Long‐section of Collerina Prospect showing significant drill results to date

At the time of writing Helix is awaiting interpretations and modelling of several near‐prospect and regional EM anomalies identified from the VTEM survey. Once received, the Company plans to drill test further near‐surface extensions to the main Collerina Prospect, including where the VTEM survey has identified a strong south‐easterly trending EM conductor that has not been previously drill tested as well as testing some of the priority EM anomalies along the 25km of prospective corridor.

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Figure 2: Near Prospect drilling targets to be followed up in the first half of 2017.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

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Figure 3: Preliminary VTEM imagery with regional targets prioritised for modelling and drill testing

The Company is highly encouraged by the results and value established at Collerina from the limited expenditure to date. The Collerina Project is already a significant VMS discovery and with additional exploration efforts in 2017, Helix expects to derive further value from this increasingly important asset. The strategy and plan for Collerina includes:

• Follow‐up exploration at the Collerina Prospect and systematic exploration of the broader tenement holding to further test the excellent potential to define a commercially viable copper deposit or deposits on the Project.

• Continue to review and asses comparisons to the Tritton Deposit (operating nearby) and other associated deposits, to assist in better targeting additional shallow, high‐grade copper mineralisation within Helix’s projects in Central NSW .

The Cobar Gold Project – New South Wales

The Cobar Gold Project consists of a series of prospective gold tenements covering historic goldfields, nearby to operating mines and infrastructure in the Cobar district.

Drilling activities carried out in the second half of 2016 including targeted diamond drilling at the Good Friday and Boundary Prospects and first‐pass aircore drilling, resulting in a new discovery at the Battery Tank Prospect. The results from this work have identified a series of high‐grade controls for the gold mineralisation, which has resulted in a complete re‐assessment of the geological model for the project. This step change in our understanding of the golds structural controls presents an opportunity to rapidly define multiple high‐grade gold systems in this emerging gold province.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

High‐grade gold results were returned from diamond drilling in gold‐bearing structures at the Boundary and Good Friday Prospects. Intercepts were from shallow depths and included:

Boundary Prospect : HRDD002: 45m @ 3.4g/t Au from 46m, incl. 5m @ 9.3g/t Au from 51m and 11.4m @ 5.1g/t Au from 71m[1] .

Good Friday Prospect: HRDD003: 28.8m @ 3.0g/t Au from 29m incl. 8m @ 4.9g/t Au from 31m and 7.8m @ 4.0g/t Au from 50m to EOH[1] .

HRDD003 at the Good Friday Prospect ended in gold mineralisation, returning 5.3g/t Au over 0.8m to EOH at a depth of 57.8m[1] . The high‐grade gold bearing structures at both Prospects remain open in several directions.

This program was the first diamond drilling undertaken by Helix at the Cobar Gold Project and was carried out to better understand the controlling structures of the high grade gold in the goldfield. The structural information from this program is assisting in further targeting the structures at these Prospects as well as targeting other similar structures in the numerous untested Prospects throughout the goldfield.

Boundary Prospect:

Diamond drilling at the Boundary Prospect was targeting a high‐grade gold structure below a gold‐in‐soil anomaly previously defined by Helix with auger soil sampling. Follow‐up broad spaced RC drilling had returned 70m @ 1.1g/t Au, including 15m @ 2.3g/t Au from 55m[8] . However, the orientation of the gold mineralisation at the Prospect was not well understood.

Diamond hole HRDD002 was drilled nearby and intersected significant high‐grade gold in quartz veins and silica‐ rich breccias within a package of highly altered and deformed sediments. The hole returned a very encouraging 45m @ 3.4g/t Au from 46m including two outstanding high‐grade zones of 5m @ 9.3g/t Au from 51m and 11.4m @ 5.1g/t Au from 71m[1] .

The gold tenor in this diamond hole is much higher than the previous RC drilling, which suggests the diamond hole is likely to have directly intersected the main high‐grade gold structure.

Also at the Boundary Prospect, a small three hole slim‐line RC program was conducted in December to follow‐up this diamond hole and assist in defining the geometry of the gold mineralisation.

Drilling has confirmed an approximate E‐W strike and a sub‐vertical dip to the gold mineralisation.

Hole HRRC101 returned 20m @ 1g/t from 72m to EOH, including 4m @ 3.2g/t Au from 92m to EOH[2] and Hole HRRC103 returning 48m @ 0.6g/t from surface including 20m @ 1.2g/t Au[2] . These holes will be subject to follow‐ up diamond tails in the current drill program underway.

In addition to the Prospect scale potential at Boundary, the return of high‐grade gold results under a greenfield gold‐in‐soil anomaly like that seen at the Boundary Prospect provides significant scope for additional new discoveries in this emerging goldfield.

Good Friday Prospect:

Diamond drilling at the Good Friday deposit was undertaken to obtain structural orientation information of the high‐grade gold drilled historically at the Prospect. HRDD001 was initially drilled, and whilst intersecting altered sediments it did not appear to intersect the high‐grade gold structure. A second hole HRDD003 was drilled in front and up‐dip of the first hole to intersect the target. HRDD003 intersected significant quartz veining and silica‐rich brecciated sediments, which has returned 28.8m @ 3.0g/t Au from 29m incl. 8m @ 4.9g/t Au from 31m[1] and 7.8m @ 4.0g/t Au from 50m to the end of hole at 57.8m[1] .

High‐grade gold is present to the end of the hole with the last sample interval returning 5.3g/t Au. An NQ diamond tail is planned to continue this hole to drill through the rest of the structure.

The drilling at Good Friday has confirmed the presence of a high‐grade structure at the Prospect. The structural orientation information has allowed the Company to better target its potential along strike and down dip with the immediate focus being to extend HRDD003 to test the full width of the structure and to also extend HRDD001 to test the down dip potential. These extensions to the diamond holes are currently underway.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

Battery Tank Prospect

First‐pass aircore drilling at the Battery Tank Prospect returned spectacular initial results.

HRAC018 returned 43m @ 2.3g/t Au from surface to end of hole with the bottom of the intercept returning 11m @ 5.1 g/t Au from 32m[2] finishing in high‐grade gold mineralisation.

The discovery hole at the Battery Tank Prospect was drilled to blade refusal, with significant quartz and siliceous alteration noted throughout the hole, increasing in abundance at the bottom of the hole.

The 20 hole aircore program was testing a large 500m x 500m gold‐in‐soil anomaly, that remains open in several directions. The Battery Tank Prospect is an area which is scattered with historic (early 1900’s) pits and trenches.

Several other holes have returned highly encouraging thick zones of lower‐order gold mineralisation in the wide‐ spaced aircore drilling to blade refusal (hard rock). It should be expected that additional gold mineralisation will be intersected at depth at many of these locations, given the strong relationship between the presence of hard quartz veins and high‐grade gold.

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Figure 4: Location of advancing gold prospects in the historic goldfield at the Cobar Gold Project

Four prospects Battery Tank, Boundary, Good Friday and Sunrise have now all returned wide high‐grade gold results, suggesting a significant gold system is present in the goldfield. The Cobar region is a multi‐million ounce gold producer, typically from high‐grade deposits such as The Peak, New Cobar and the nearby Mt Boppy mine, which has produced circa 500,000 ounces of gold at an average grade of 10g/t Au from a 300m long deposit.

The information from these programs have set the foundation for more comprehensive drill testing, with RC and diamond drilling targeting the full extent of gold mineralisation within the goldfield in 2017. The first of the follow‐ up drilling programs is currently underway and these gold results are a welcome addition to the ongoing focus on both copper and gold in this highly prospective district.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

Canbelego Copper Project – New South Wales

(HLX 70% Manager: Straits 30%) An Inferred Resource of 1.5Mt @ 1.2% Cu for 18,000t[3] of copper from surface at the Canbelego Prospect with further potential for oxide copper from surface on 3 advancing prospects (Canbelego, Canbelego West & Caballero). An untested primary target associated with a strong DHEM conductor sits below the current resource at the Canbelego Prospect. Up‐dip intercepts include 2m @ 6.8% Cu & 5m @2.4% Cu[4] .

The JV Participants have assessed the previous work at Canbelego and plans are being prepared for further geochemical and drilling programs.

CHILE – COPPER AND GOLD PROJECTS

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Figure 5: Location of Helix’s Projects (outlines in red) near the town of Ovalle – Region IV Chile

Joshua Project

The Joshua Project is located in Region IV Chile, 40km East of Ovalle [Population 100,000], at low altitude (less than 1700m), with excellent nearby infrastructure. Four porphyry targets have been identified to date in a regionally significant north‐west structural corridor within the total project area of 100km.

A diamond drilling program was completed by Chilean group EPG in 2015‐16. All holes intersected porphyry‐style mineralisation in part or all of the hole lengths. The program extended the known strike of the copper system to at least 800m (Figure 6).

The increasing grade at lower altitudes from drilling at Target 1 is consistent with the geological model for the system and bodes well for further exploration at Joshua. The 3,500m of diamond drilling has tested only an 800m x 250m portion of the 3,000m x 1,500m coincident copper‐in‐soil and IP anomaly which represents the main Joshua porphyry target.

The drilling has confirmed the presence of the high grade copper mineral, chalcocite in the system. Drilling also identified at least three separate porphyry events; including: Andesitic, Dacitic and Dioritic porphyry associated with the copper mineralisation at the Joshua Copper Project.

EPG informed Helix in mid 2016 that its exploration fund was to be closed and it could not commit to the second stage drilling at the Joshua Project, the project has been returned to Helix 100%.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

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Figure 6: The 2015 Drill hole traces on Joshua Target 1 plan map

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Figure 7: Main Porphyry System at Joshua Project

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

The main Joshua porphyry target is at least 3 kilometres across and 1 kilometre wide comprising a large copper in soil anomaly coincident with a large IP anomaly, continuing to a depth in excess of 500m from surface. The main Joshua porphyry target comprises Target 1, the Carmelita Mine zone and Target 4.

‐ Blanco Y Negro Copper Gold Deposit

Helix completed a resource update on the ByN deposit in Region IV, Chile in 2015.

The resource estimation 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 (the resource is reported at a 0.5% Cu cutoff grade and figures are subject to rounding (refer table 1). Infill Reverse Circulation (RC) drilling was undertaken as part of the RC program completed in late 2014. This additional drilling improved 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[5] . The deposit remains open to the northwest along strike and down dip (Figure 8)

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Figure 8: Approximate position of B y N Deposit on local topography with significant results.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

Table 1: ByN Deposit Material Type[6]

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

	Oxide		Transition		Fresh		Total
	Tonnes & Grade	Metal	Tonnes & Grade	Metal	Tonnes & Grade	Metal
Indicated	360kt @ 1.0% Cu , 0.2 g/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

Yalleen Iron Ore Project – Western Australia

Yalleen Project has a resource 84Mt @ 57% Iron ore[7] in Indicated and Inferred Resources 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.

CORPORATE

Cash and Investments

As at 31 December 2016, the Company remains adequately funded to achieve its 2017 business goals with $1.0m in cash.

RESULT

The operating result for the half‐year ended 31 December 2016 for the Group was a loss after income tax of $357,535 (2015: $1,308,519).

EVENTS SUBSEQUENT TO REPORTING DATE

On 24 January 2017 Helix announced to the market high grade gold results resulting from first‐ pass air core drilling at the Battery Tank gold prospect which forms part of the Company’s Cobar Gold Project in NSW.

On 2 February 2017 Helix announced to the market that a 600km VTEM‐ Max helicopter borne geophysics survey was completed over the 25km of strike on the Company’s Collerina Copper‐Zinc project with multiple near‐ prospect and regional targets being identified.

On the 8 February 2017 Helix announced that it had completed a placement of 46,000,000 ordinary shares at $0.048 per share to raise gross funds of $2.08m. The placement shares were issued on 15 February 2017.

Other than the above, there have been no events subsequent to the current balance date requiring additional disclosure.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration under s 307C of the Corporations Act 2001 is presented on page 12 of this half‐year financial report.

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

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M Naylor Non‐Executive Director Dated this 3[rd] day of March 2017

Competent Persons Statements

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 full details of exploration results refer to released ASX announcement date 17 November 2016. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

• 2 For full details of exploration results refer to released ASX announcement date 24 January 2017. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

• 3 For more information on the Canbelego Resource estimate refer to released ASX announcement date 7 October 2010. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

• 4 For full details of exploration results refer to released ASX announcement date 26 September 2013. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

• 5 For full details of exploration results refer to released ASX announcement date 10 September 2014. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

• 6 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.

• 7 For more information on the Yalleen Iron Resource estimate, refer to released ASX announcement date 24 April 2009. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

• 8 For full details of exploration results refer to released ASX announcement date 4 October 2012. Helix Resources in not aware of any new information or data that materially effects the information included in the said announcement.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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Level 1 10 Kings Park Road West Perth WA 6005 Correspondence to: PO Box 570 West Perth WA 6872

Auditor’s Independence Declaration

To The Directors of Helix Resources Limited

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Helix Resources Limited for the half-year ended 31 December 2016, I declare that, to the best of my knowledge and belief, there have been:

• a No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b No contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M A Petricevic Partner - Audit & Assurance

Perth, 3 March 2017

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.

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HELIX RESOURCES LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

HALF‐YEAR ENDED 31 DECEMBER 2016

Notes Revenue Employment costs Audit and accountancy Corporate marketing Directors’ fees Depreciation IT costs Premises costs Professional fees Travel and accommodation costs Impairment of exploration and evaluation assets Fair value loss/gain on financial assets Loss on sale of mineral interest Share‐based payments 6 Other expenses from ordinary activities LOSS BEFORE INCOME TAX INCOME TAX BENEFIT LOSS FOR THE PERIOD Other Comprehensive Income Fair value movement on available for sale assets Income tax relating to other comprehensive income Other comprehensive income, after tax TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO MEMBERS OF HELIX RESOURCES LIMITED Basic loss per share (cents) Diluted loss per share (cents)	Consolidated 31 Dec 2016 $ 31 Dec 2015 $ 5,582 14,994 (75,606) (80,940) (17,315) (13,410) (28,199) (9,894) (47,543) (45,000) (5,036) (4,408) (11,319) (11,458) (34,299) (32,262) (42,999) (500) (11,467) (11,081) ‐ (8,185) ‐ (932,231) ‐ ‐ (54,651) (135,441) (34,683) (38,703) (357,535) (1,308,519) ‐ ‐ (357,535) (1,308,519) ‐ ‐ ‐ ‐ ‐ ‐ (357,535) (1,308,519) (0.12) (0.49) (0.12) (0.49)	Consolidated 31 Dec 2016 $ 31 Dec 2015 $ 5,582 14,994 (75,606) (80,940) (17,315) (13,410) (28,199) (9,894) (47,543) (45,000) (5,036) (4,408) (11,319) (11,458) (34,299) (32,262) (42,999) (500) (11,467) (11,081) ‐ (8,185) ‐ (932,231) ‐ ‐ (54,651) (135,441) (34,683) (38,703) (357,535) (1,308,519) ‐ ‐ (357,535) (1,308,519) ‐ ‐ ‐ ‐ ‐ ‐ (357,535) (1,308,519) (0.12) (0.49) (0.12) (0.49)
		(1,308,519) ‐
		(1,308,519)
		‐ ‐
		‐ (1,308,519)
		(0.49) (0.49)

The consolidated interim financial statements should be read in conjunction with the accompanying notes.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2016

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables 2 TOTAL CURRENT ASSETS NON‐CURRENT ASSETS Property, plant and equipment Exploration and evaluation expenditure 4 Other financial assets 3 TOTAL NON‐CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Provisions TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Share capital 5 Reserves 6 Accumulated losses TOTAL EQUITY	Consolidated 31 Dec 2016 $ 30 Jun 2016 $ 1,018,876 2,003,815 67,460 222,490
	1,086,336 2,226,305
	35,649 39,960 10,986,667 10,129,423 101,803 101,446
	11,124,119 10,270,829
	12,210,455 **12,497,134 **
	191,115 178,613 67,429 64,027
	258,544 242,640
	3,554 3,253
	3,554 3,253
	262,098 245,893
	11,948,357 12,251,241
	62,496,044 62,496,044 290,570 235,918 (50,838,257) (50,480,721)
	11,948,357 12,251,241

The consolidated interim financial statements should be read in conjunction with the accompanying notes.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

HALF‐YEAR ENDED 31 DECEMBER 2016

Balance at 1.7.2016 Loss for the period Other comprehensive income for the period Transactions with owners Options vested during the period 6 Balance at 31.12.2016 Balance at 1.7.2015 Loss for the period Other comprehensive income for the period Transactions with owners Options issued during the period 6 Balance at 31.12.2015	$ $ $ $ Share Capital Accumulated Losses Total Ordinary Options Reserve
	62,496,044 235,918 (50,480,721) 12,251,241 ‐ ‐ (357,535) (357,535) ‐ ‐ ‐ ‐
	62,496,044 235,918 (50,838,256) 11,893,706
	‐ 54,651 ‐ 54,651
	62,496,044 290,569 (50,838,256) 11,948,357
	61,280,044 ‐ (48,977,757) 12,302,287 ‐ ‐ (1,308,519) (1,308,519) ‐ ‐ ‐ ‐
	‐ ‐ (1,308,519) (1,308,519)
	‐ 135,441 ‐ 135,441
	61,280,044 135,441 (50,286,276) 11,129,209

The consolidated interim financial statements should be read in conjunction with the accompanying notes.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF‐YEAR ENDED 31 DECEMBER 2016

CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received R&D tax benefit received NET CASH USED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Payments for capitalised exploration and evaluation expenditure Payments for property, plant and equipment Proceeds from sale of investments Payments for security deposits Refund of security deposits NET CASH FLOWS PROVIDED BY/ (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issue Payment of share issue costs NET CASH FLOWS PROVIDED BY/ (USED IN) FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH HELD Exchange differences on cash and cash equivalents CASH AT BEGINNING OF PERIOD CASH AT END OF PERIOD	Consolidated Dec 2016 $ Dec 2015 $ (302,299) (251,717) 5,582 9,484 167,110 ‐
	(129,607) (242,233)
	(857,244) (410,752) (1,524) ‐ ‐ 647,817 ‐ (10,000) ‐ 85,000
	(858,768) 312,065
	‐ ‐ ‐ ‐
	‐ ‐
	(988,375) 69,832 3,436 6,400 2,003,815 1,582,850
	1,018,876 1,659,082

The consolidated interim financial statements should be read in conjunction with the accompanying notes.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

NOTES TO THE HALF‐YEAR FINANCIAL STATEMENTS

31 DECEMBER 2016

1. BASIS OF PREPARATION OF THE HALF‐YEAR FINANCIAL STATEMENTS

These general purpose financial statements for the interim reporting period ended 31 December 2016 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting.

The interim financial statements do not include all of the information required in annual financial statements in accordance with Australian Accounting Standards, and should be read in conjunction with the consolidated financial statements of Helix Resources Limited for the year ended 30 June 2016 and any public announcements made by the Group during the half‐year in accordance with continuous disclosure requirements arising under the Australian Securities Exchange Listing Rules and the Corporations Act 2001.

Accounting policies

The accounting policies adopted in the preparation of the half‐year financial report are consistent with those adopted and disclosed in the 2016 annual financial report.

Proposed amendments to Accounting Standards and Australian Accounting Interpretations for future reporting periods have been considered. The Group does not anticipate early adoption of any of these new/revised reporting requirements and does not expect any resultant changes to have a material effect on the Group’s financial statements.

Estimates

When preparing the interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group’s last annual financial statements for the year ended 30 June 2016.

Going Concern

The interim financial report for the six months ended 31 December 2016 has been prepared on the going concern basis that contemplates the continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business. For the period ended 31 December 2016 the Group recorded a loss after tax of $357,535 and operating cash outflows of $129,607. Subsequent to balance date the Group has successfully raised $2.08m (before capital raising costs). Based upon the above, the Directors have reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable and the Directors consider the going concern basis of preparation to be appropriate for this Interim Financial Report.

2. TRADE AND OTHER RECEIVABLES

	CONSOLIDATED	CONSOLIDATED
Current Receivables	Dec 2016 $	June 2016 $
Prepayments	9,077	1,350
R&D tax rebate	‐	167,110
Other Receivables	58,383	54,030
Total Current Receivables	67,460	222,490

All amounts are short term. The net carrying value of trade receivables is considered a reasonable approximation of fair value.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

3. OTHER FINANCIAL ASSETS

	CONSOLIDATED
Other Financial Assets – Non‐Current	Dec 2016 $ June 2016 $
Security deposits	100,603 100,246 1,200 1,200
Shares in listed corporations – held for trading
Total Other Financial Assets – Non‐Current	101,803 101,446

4. EXPLORATION AND EVALUATION EXPENDITURE

	CONSOLIDATED
	Dec 2016 $ June 2016 $
Opening balance	10,129,423 9,530,925 857,244 599,798 ‐ (1,300) ‐ ‐
Expenditure incurred during the period
Disposals
Impairment losses
Closing balance	10,986,667 10,129,423

Impairment of mineral assets carrying value

During the financial period the Group conducted an assessment of the carrying value of its exploration assets pursuant to its accounting policy. As a result of the assessment of the economic recoverability of certain tenements, no provision for impairment was required (June 2016: $1,300) against the carrying value of its exploration and evaluation expenditure.

5. EQUITY SECURITIES ISSUED

	Dec 2016	June 2016	Dec 2016	June 2016
Fully paid ordinary shares	No.	No.	$	$
Balance at beginning of financial
year	308,466,692	268,466,692	62,496,044	61,280,044
Share issue: 37,360,000 Fully
paid shares@ $0.032	‐	37,360,000	‐	1,195,520
Share issue: 2,640,000 Fully paid
shares@ $0.032	‐	2,640,000	‐	84,480
Share Issue Costs	‐	‐	‐	(64,000)
Balance at end of financial year	308,466,692	308,466,692	62,496,044	62,496,044

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

6. RESERVES

	Dec 2016	June 2016	Dec 2016	June 2016
Listed options	No.	No.	$	$
Balance at beginning of financial
year	14,750,000	‐	235,918	‐
Issue of options	‐	14,750,000	54,652	235,918
Exercise of options to fully paid
shares	‐	‐	‐	‐
Cancellation of options	(1,000,000)	‐	‐	‐
Expiry of options	‐	‐	‐	‐
Balance at end of financial year	13,750,000	14,750,000	290,570	235,918

On 16 November 2015, 14.25M options were issued to key management personnel, employees and consultants. On 28 December 2016 1,000,000 options were cancelled as a result of vesting conditions not being met.

The terms and conditions of the Group Employee Option Plan are as follows:

Group Employee Option Plan	Tranche 1	Tranche 2	Tranche 3
Number of options	4,750,000	4,750,000	4,750,000
Grant date	16 Nov 2015	16 Nov 2015	16 Nov 2015
Fair value at grant date (per option)	$0.0410	$0.0410	$0.0410
Exercise price	$0.0675	$0.0675	$0.0675
Expiry date	15 Nov 2018	15 Nov 2018	15 Nov 2018
Vesting date	15Nov2015	15Nov2016	15Nov2017

7. OPERATING SEGMENTS

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 New South Wales and South Australia, with an operation in Chile representing ±5% of mineral asset expenditure. The mineral assets held via outright ownership or joint arrangement 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.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

	Australia	Australia	Chile	Total
	Dec 2016 June 2016		Dec 2016 June 2016	Dec 2016 June 2016
	Current Assets Cash 1,014,825 1,989,576 Non‐Current Assets Mineral Assets 5,567,354 4,788,771 Impairment ‐ (9,485)		4,051 14,239 5,419,313 5,350,137 ‐ ‐	1,018,876 2,003,815 10,986,667 10,138,908 ‐ (9,485)
	Carrying Amount 5,567,354 4,779,286		5,419,313 5,350,137	10,986,667 10,129,423
	Other assets not allocated Total assets Liabilities Trade payables 191,114 169,648 Provisions 67,429 64,027 Total liabilities 258,543 233,675 Dec 2016 Dec 2015 Revenue 5,582 14,994 Depreciation (5,036) (4,408)		‐ 8,965 ‐ ‐	1,223,788 2,367,711
				12,210,455 12,497,134
				191,114 178,613 67,429 64,027
		258,543 233,675 Dec 2016 Dec 2015 5,582 14,994 (5,036) (4,408)	‐ 8,965 Dec 2016 Dec 2015 ‐ ‐ ‐ ‐	258,543 242,640 Dec 2016 Dec 2015 5,582 14,994 (5,036) (4,408) (357,535) (1,308,519)
	Profit / (Loss) before tax	(357,535) (1,308,519)	‐ ‐

8. CONTINGENT ASSETS OR LIABILITIES

In November 2014 the Company agreed to sell its 30% stake in the Tunkillia Gold Project and other interests to WPG, the Manager and equity partner of the asset. Per the sale agreement, the Company has the following contingent assets.

• WPG will pay HLX $500,000 in cash, and issue 10,000,000 WPG shares, upon the commencement of mine construction;

• WPG will pay HLX a 1% NSR royalty for:

• 30% of attributable gold and silver production from the existing resource; and

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

The Company has not recognised any amounts relating to this consideration from WPG as it cannot be reliably measured. As the company becomes more certain as to WPG achieving these milestones, the income relating to the shares and cash payments may be recognised.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

9. EVENTS SUBSEQUENT TO REPORTING DATE

On the 8 February 2017 Helix announced that it had completed a placement of 46,000,000 ordinary shares at $0.048 per share to raise gross funds of $2.08m. The placement shares were issued on 15 February 2017.

Other than the above, there have been no events subsequent to the current balance date requiring additional disclosure.

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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HELIX RESOURCES LIMITED

DIRECTORS’ DECLARATION

In accordance with a resolution of the Board of Directors of Helix Resources Limited, we state that:

In the opinion of the directors:

1. The financial statements and notes of the Group comply with the Corporations Act 2001 and Accounting Standard AASB 134: Interim Financial Reporting and give a true and fair view of the financial position as at 31 December 2016 and the performance for the half‐year ended on that date; and

2. There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

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M Naylor Non‐Executive Director

Dated this 3[rd] day of March 2017

FINANCIAL REPORT HALF‐YEAR ENDED 31 DECEMBER 2016

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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 Review Report To the Members of Helix Resources Limited

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

We have reviewed the accompanying half-year financial report of Helix Resources Limited (“Company”), which comprises the consolidated financial statements being the consolidated statement of financial position as at 31 December 2016, and 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 half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors’ declaration of the consolidated entity, comprising both the Company and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

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

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including, giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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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As the auditor of Helix Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

Conclusion

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

• a giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year ended on that date; and

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

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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M A Petricevic Partner - Audit & Assurance

Perth, 3 March 2017

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