27 September 2004

Australian Stock Exchange Limited Company Announcements Level 10, 20 Bond Street SYDNEY NSW 2000

NO. OF PAGES : (43)

FINANCIAL REPORT FOR YEAR ENDING 30 JUNE 2004

Independence Group NL is pleased to announce the following final results for the year ending 30 June 2004:

Audited consolidated revenue \$67.2 million (2003: \$24.6 million)
Audited consolidated profit before income tax \$24.8 million (2003: \$1.4 million)
Audited consolidated profit after income tax \$17.3 million (2003: \$1.4 million)
Fully diluted earnings per share after income tax 17.72 cents (2003: 1.80 cents) $\bullet$ .

Attached are the Corporate Governance Statement, Directors' Report, Financial Statements and other information required by the ASX.

The 2004 Annual Report will be completed and forwarded to members in the third week of October and the Annual General Meeting is to be held in Perth on 24 November 2004.

CHRISTOPHER BONWICK Managing Director

PO Box 893, South Perth Western Austratia 6951 Tel: +61 8 9367 2755 Fax: +61 8 9367 3288 E-mail: [email protected] Website: www.independencegroup.com.au

corporate covernance statement

The ASX Corporate Governance Council requires that the Company must disclose the extent to which it has followed best practice recommendations, identify which recommendations have not been followed and the reason for not adopting the recommendations. The ASX Corporate Governance Council recognises that not all recommendations are appropriate for all companies and that companies should only adopt those recommendations that are suitable in each individual case.

The following is a summary of policies adopted by the Company and where appropriate, explanations of where best practice recommendations have not been applied. Implementation dates of policies are shown on the last page of this Corporate Governance Statement. Implementation dates relate to the date the various policies were formalised and officially adopted by the Board, however the various policies and procedures were followed throughout the entire financial year.

Board Composition and Functions

Under the Company's Constitution, the Board is required to consist of at least 3 and no more than 10 directors. If the Company has, 3 or more directors, one third of the directors, with the exception of the Managing Director, must retire and seek re-election at the Annual General Meeting each year. ...

The Board of the Company currently consists of 2 independent non-executive directors and 2 executive directors. The board includes the Managing Director (executive) and the Chairman (non-executive).

The Board composition does not follow ASX recommendations, in that a majority of directors are not independent. However, the -roles of Chairman and Chief Executive Officer (or Managing Director) are not exercised by the same person, and the Board is considered to be comprised of directors with the experience and qualifications best suited to the Company's size and range of activities.

The Company has an independent Chairman (Rod Marston). The Company has followed ASX recommendations in the assessment of whether a director is considered to be "Independent". The other independent director is John Christie.

The Board delegates responsibilities to committees, executive directors and senior management.

The Board is responsible for corporate strategy, implementation of business plans, allocation of resources, approval of budgets and capital expenditure, and the adherence to Company policies.

The Board is also responsible for compliance with the Code of Conduct, overseeing risk management and internal controls, and the assessment, appointment and removal of the Managing Director, Company Secretary and other senior management.

Directors of the Company during the financial year and information pertaining to individual directors is included in the Directors' Report.

Board members have the right to seek independent professional advice in the furtherance of their duties as directors at the Company's expense.

Director Independence

The Company has established quidelines for testing the independence of directors.

A director is considered to be independent if they satisfy certain criteria, the most significant being as follows:

. The director must be in a non-executive role where any fees payable by the Company could not be considered to make the director reliant on such remuneration. The director must have no other material contractual relationship with the Company other than as a director of the Company.

$\mathcal{R}$ The director is not a substantial shareholder of the Company,

The director has not been employed in an executive capacity by the Company and has not been a principal of a material adviser or consultant to the Company within the last 3 years, and consultant i di Kabupatén Timur Kaumatan I sa melalu.

... The director is free from any interest which could reasonably be perceived to materially interfere with the director's ability to act in the best interests of the Company. The country

The full policy on determining the independence of directors is available in the Corporate Governance section of the Company's website.

Risk Management

The Board is responsible for the identification of significant areas of business risk, implementing procedures to manage such risks and developing policies regarding the establishment and maintenance of appropriate ethical standards to:

e linear compliance in legal, statutory and ethical matters;
monitor the business environment; n⊗ j
of lidentify business risk areas; con-
$\bullet$ $\sim$ identify business opportunities; and $\sim$

. . . . . . . . . . . . . . . . . . .

The Board meets on a regular basis. The Company does not follow the ASX best practice recommendation that the Company should have an internal control function. The Board considers that the Company is not of a size or operational complexity to warrant the implementation of a separate internal control function.

The Managing Director and Company Secretary are required to state in writing to the Board that the Company has a sound system of risk management, that internal compliance and control systems are in place to ensure the implementation of Board policies, and that those systems are operating efficiently and effectively in all material respects.

Audit Committee

The Company has established an Audit Committee which is responsible for the following:

oversee the existence and maintenance of internal controls and accounting systems, including the implementation of mandatory and non-mandatory accounting policies and reporting requirements;
oversee the financial reporting process, including reviewing and reporting to the Board on the accuracy of all financial reports $\cdot$ as . lodged with ASX which include the quarterly, half-yearly and annual financial reports;
recommend to the Board the nomination, removal and remuneration of the external auditors; and
review the external audit arrangements, including ensuring that any non-audit services provided do not impair auditor independence, and a later والمستحقق والمستحق والمتعارف والمتعارض والمتحارب terrorista (

The Audit Committee reports to the Board and meets as required, but in any case at least twice each year. Current members are Christopher Bonwick, Kelly Ross and John Christie. Christopher Bonwick is a geologist with corporate experience, and Kelly Ross and John Christie are qualified accountants with considerable financial experience. The Committee has authority to seek any pertinent information it requires from any employee or external party. Qualifications held by the individuals on the Audit Committee are included in the Directors' Report.

The Audit Committee does not follow ASX recommendations as the members are not all independent and not all members are. non-executive directors. The Audit Committee is comprised of those directors the Board considers best qualified to carry out the responsibilities required of an Audit Committee and it is Company policy that the Committee must comprise at least 3 members.

Any member of the Committee is able, and obliged, to bring any matter to the attention of the Board where the member believes the matter has not been adequately dealt with by the Committee, or is of significant importance that the Board should be informed.

The Managing Director and Company Secretary are required to state in writing to the Board that the Company's financial reports present a true and fair view of the Company's financial condition and that operational results are reported in accordance with. relevant accounting standards.

The Audit Committee Charter is available on the Company's website.

Hedging Committee

The Company has established a Hedging Committee to make recommendations to the Board on hedging policies and to maintain the hedging portfolio.

The members of the Hedging Committee at the date of this report are Kelly Ross and John Christie.

Procedure for the Selection of New Directors.

The Company believes it is not of a size to justify having a Nomination Committee. If any vacancies arise on the Board, all directors. are involved in the search and recruitment of a replacement.

Corporate performance is enhanced when the Board has an appropriate mix of skills and experience. The Board is evaluated before a candidate is selected to join the Board. Candidates are nominated by existing Board members and independent search consultants are also utilised if necessary. Where a director nominates a candidate for the Board, the director must disclose any pre-existing relationship with the nominee.

New directors are provided with a letter of appointment setting out their responsibilities and rights, and are provided with a copy of the Company's Constitution.

The full policy for nomination of directors is available on the Company's website.

Remuneration of Board Members

The Company has established a Remuneration Committee to oversee the remuneration of senior executives and executive directors. According to the Company's Constitution the Remuneration Committee must consist of at least 2 non-executive directors. At the date of this report, the committee members were Rod Marston and John Christie. The Committee does not follow ASX recommendations as it has less than 3 members.

The Committee reviews executive directors' and senior management's remuneration and other terms of employment annually, having regard to performance, relative industry remuneration levels, and where appropriate, the Committee seeks independent advice to ensure appropriate remuneration levels are in place.

The Committee recommended the issue of options to executive directors after considering the performance of the Company's management during the 2003 financial year and the issue was approved by shareholders at the 2003 Annual General Meeting.

The remuneration of non-executive directors is determined by the Board within the maximum amount approved by shareholders in general meeting. Non-executive directors are not entitled to retirement benefits other than statutory superannuation or other statutory required benefits. Non-executive directors do not participate in share or bonus schemes designed for executive directors or employees.

CONPORATE GOVERNANCE STATEMENT

The Board, after receiving a recommendation from executive directors, approved the issue of options to non-executive directors, which was approved by shareholders at the 2003 Annual General Meeting. The issue was recommended by the executive directors following a review of the performance of the non-executive directors during the 2003 financial year.

Non-executive directors may provide consulting services to the Company, which are over and above the services normally provided by a non-executive director in the performance of their duty as a member of the Board. Where the Company requests that specific projects are investigated by a non-executive director that fall outside their normal duties as a director, additional services may be. charged to the Company, at a rate approved by the Board.

Performance evaluations for Board members are held annually and are undertaken with a view to comparing the performance of individual directors to the performance and growth of companies of similar size and complexity within the mining industry.

No director may be involved in setting their own remuneration or terms and conditions.

Conflicts of Interest

The Board has implemented Code of Conduct and Share Trading Policies which have been designed to ensure that all directors and employees of the Company act ethically and do not use confidential information for personal gain.

These policies are available on the Company's website.

Code of Conduct

POLKY 1

The Board is responsible for setting the tone of legal, ethical and moral conduct to ensure that the Company is considered reputable by the industry and other outside entities. This involves considering the impact of the Company's decisions on the industry, colleagues and the general community. The Code of Conduct adopted by the Company requires that all employees abide by the laws, regulations and business practices wherever the Company operates. The Board maintains an approach that preserves the integrity of any laws or regulations under which the Company operates. The Company has also put in place various internal Policies which provide internal controls to ensure employees only act within the authority given to them by the Board. This is to ensure that the Board has responsibility for any material transactions and dealings with outside parties, and that any legal, environmental and social consequences of such dealings will be properly considered before any action is taken.

The Company has an Environmental Policy which requires that all employees comply with the environmental regulations in force in the region in which work is undertaken. The Company is committed to dealing fairly and equitably with interested parties relating to environmental issues, such as landholders, governmental agencies and native title claimants.

Disclosure of Information to ASX and Investors.

The Company has established policies and procedures relating to the disclosure of information to interested parties. The following policies and procedures are contained in the Corporate Governance section of the Company's website:

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$\sim$ Code of Conduct $\sim$	27/04/2004
Director Independence	12/03/2004
Legal, Environmental & Social Responsibilities.	12/03/2004
Remuneration Policy	12/03/2004
Risk Management & Internal Control Procedures	27/05/2004
Audit Committee	01/08/2003
Board and Management Responsibilities	01/08/2003
Compliance with ASX Disclosure Requirements	.01/08/2003
Nomination of Directors	01/08/2003
Directors' and Officers' Trading in Securities	24/06/2003
Communication with Shareholders	21/05/2003
Hovestor Relations and Media Interaction	21/05/2003

DIRECTORS' REPORT

Your directors present their report on the Company and its controlled entities for the financial year ended 30 June 2004
Directors
The names of directors in office at any time during or since the end of the year are:
$\Box$ NAME OF DIRECTOR $\Box$ Térune as Deseltor
Mr Rod Marston 4 years
Mr Christopher Bonwick 4 years
Ms Kelly Ross 2 years
Mr John Christie 2 years
Mr Keith Docking (resigned 20 August 2003)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal Activities

The principal activities of the economic entity during the financial year were mineral exploration and nickel mining. There were no significant changes in principal activities during the financial year.

Operating Results

The consolidated profit of the economic entity after providing for income tax amounted to \$17,334,436 (2003: \$1,398,278).

Dividends Paid or Recommended

No dividends have been paid or declared for payment at the date of this report. The Company has not yet recommended a dividend in respect of the year ended 30 June 2004. No franking credits are currently available, however the Company anticipates that franking credits will arise during the year ending 30 June 2005.

Review of Operations

The economic entity focused on the Long Nickel Mine operation. The economic entity concentrated its exploration activities on various targets provided by assay indicators from the WMC Diamond Division Database and from regional exploration programs. The consolidated profit before income tax was \$24,791,916 (2003: \$1,382,787).

Nickel revenue for the year was \$66,737,138 (2003: \$24,553,510) and nickel production was 6,843 tonnes (2003: 3,007 tonnes). A summary of activities during the year is contained in the Exploration and Operations sections of this report.

Significant Changes in State of Affairs

No significant changes in the state of affairs of the economic entity occurred during the financial year.

Environmental Issues

The economic entity's operations are subject to significant environmental regulation under the laws of the Commonwealth and various States of Australia. During the year there were no non-compliance incidents. The Environmental Policy is available in the Corporate Governance section of the Company's website.

After Balance Date Events

Since the end of the financial year, the Company entered into commodity contracts to hedge future nickel sales revenue. Foreign exchange contracts were also entered into to coincide with the commodity contracts. The contracts average AU\$17,000 per nickel tonne and a total of 1,400 tonnes were hedged. The contracts fall due in 2004/5 (350 tonnes), 2005/6 (600 tonnes) and 2006/7 (450 tonnes). No other matter or circumstance has arisen since the end of the financial year which significantly affected or may significant affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

Future Developments

The likely developments in the operations of the economic entity and the expected results of those operations in future financial years are the exploration of new and existing project areas in the search for gold, nickel, platinoids, copper and zinc, and the production of nickel and copper from the Long Nickel Mine.

The Board anticipates that the Long Nickel Mine's cash flow will allow the economic entity to vigorously explore existing tenement interests, as well as provide the opportunity to develop any discoveries to their full potential. The Company will also consider corporate investments or acquisition of projects should suitable opportunities arise.

DIRECTORS' REPORT

使用的电电阻电阻医单位医白细胞医血管医阿尔伯氏试验检尿 Information on Directors
Rod Marston	(Chairman) (Non-executive) Age 61
Qualifications	BSc(Hons), PhD, MAusIMM, MSEG
Experience	Board member since 2001. Chairman since 20 August 2003,
Special Responsibilities	Dr Marston is on the Remuneration Committee.
Christopher Bonwick	Managing Director (Executive) Age 45
Qualifications	BSc (Hons), MAusIMM
Experience.	Managing Director and Board member since 2000.
Special Responsibilities	Mr Bonwick is the executive in charge of operations and corporate development. He is also on the Audit Committee.
Kelly Ross	Director (Executive) Age 42
Qualifications	BBus, CPA
Experience	Board member since 2002.
Special Responsibilities	Ms Ross is the Company Secretary, and is on the Audit and Hedging Committees.
John Christie	Director (Non-executive) Age 66
Qualifications	CPA, ACIS
Experience	Board member since 2002.
Special Responsibilities	Mr Christie is on the Remuneration, Audit and Hedging Committees.

Directors' Interest in Shares and Options

. . . . . . . . . . . . . . . . . . . .

Ordemary Fully Pard Shares . -CONSULURNG SHANKS ¹¹ Ordsmary Flauy Paul Options (1141) , Adama Qurana . Darector, - (10 cents univer).
Mr C Bonwick 2,500,000 $-315,002$ 1,500,000 (iii) 2,053,504.
.1,000,000.(i). 2,000,000 (i).
Mr R Marston 1.000,000 (iv) 160.000. 1,040,000
Ms K Ross 300,000 (ii) 300.000 10.000 -750,000 (iii)
Mr J Christie -500,000 (iv) 180.000 40,000
2.403.004 1.395.002 300,000 (ii) 2,800,000 TOTALS -2,000,000 (i) 1,000,000.(i) 2,250,000 (iii)
1,500,000 (iv)

(i) Director Mr Bonwick is a director and shareholder of Independence Mining Exploration NL and therefore has an indirect interest in the shares and options held by that company as shown above. result in such Andreas Antonio

(ii). The options were issued under the Employee Share Plan, and are exercisable at 34 cents each after certain dates have lapsed. The options were issued prior to Ms Ross being appointed as a director of the Company.

(iii) The options were issued pursuant to resolutions 4 and 5 passed at the 2003 Annual General Meeting.

(iv) The options were issued pursuant to resolutions 6 and 7 passed at the 2003 Annual General Meeting.

Details of the terms and conditions for these securities are disclosed in note 22 to the Financial Statements in this report and in note 8 of Additional Information for Listed Public Companies.

Directors' and Executive Officers' Emoluments

The Company's policy for determining the nature and amount of emoluments of Board members and senior executives is set out in the Corporate Governance section of this report, CODD South Contract to the Constitution of the Corporate Governance

The remuneration structure for executive officers, including executive directors, seeks to emphasise payment for results through providing various reward schemes, including bonus and employee option schemes. The providing gradų III II (m. 1946 m.)

The objective of the reward schemes is to both reinforce the short and long term goals of the Company and to provide a common interest between management and shareholders. Comparison and shareholders and a San Lorenzo La Compo ferencija koji

The remuneration of non-executive directors is fixed to encourage impartiality, high ethical standards and independence on the Board. Further details relating to the emoluments of each director and officer are contained in note 5 to the Financial Statements.

The specified directors who held office during the financial year were:

Rod Marston, Christopher Bonwick, Kelly Ross, John Christie and Keith Docking. Mr Docking resigned on 20 August 2003. All other directors held office during the entire financial year.

The specified executives during the financial year were: Tim Moran (General Manager - Long Nickel Mine).

The specified executives were also the most highly remunerated officers, other than directors, of the consolidated entity.

Terms and conditions of employment contracts

i) Non-executive directors do not have employment contracts with the Company.
B) l'Executive directors are employed under 2 year contracts. These contracts include provision for termination benefits of 12 months' remuneration should their employment be terminated due to a take-over event.
iii). Executive directors are entitled to receive cash and/or equity based bonuses in addition to the remuneration stated in their employment contracts. The Company bears any fringe benefits tax cost relating to executive directors' remuneration payments.

$<$ $\sim$ Orman (v) $\approx$

$\gamma \sim 1$ ora (\$).

iv) Current employment contracts provide for remuneration of \$273,000 (Christopher Bonwick) and \$176,000 (Kelly Ross).

Officers of the economic entity received the following remuneration: : 2004 SALARY & PEEL $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$

Specified directors (v)
R Marston (i)	53,955				80,683	134,638
C Bonwick (ii)	241,076	4.000	25,354		184,738	455,168.
K Ross (ii)	141,908.	$-3.000$	10,014	13,061	95,851	263,834
J Christie (i)	93,721				40,341	134,062
K Docking	44,219			8,750		52,969
Total	574,879	7.000	35,368	21,811	401,613	1,040,671
Specified executives (v)
T Moran (iv)	161,680.	2,600		$-14,551$	$-41,110$	219,941
2003.	Salary & Pers	Bokus	Veral Costs	KORKUNG TARTA	Ciraons (vs)	[ fone (\$)
Specified directors (v)
R Marston	16,250.					16,250
C Bonwick	191,872		24,359			216,231
K Ross (iii)	110,505		9,730	8,458	32,580	161,273
J Christie	73,610					73,610.
J Schiller	51,301		15,306	5,277		71,884.
K Docking	75,836			43,750.		119,586
Total.	519,374		49,395	57,485	32,580	658,834
Specified executives (v)
T Moran (iv)	160,000			14,400	91,645	266,045

(i) R Marston and J Christie were granted options pursuant to resolutions 6 and 7 passed at the 2003 Annual General Meeting. The options were issued on 26 November 2003. Further information relating to these options is contained in notes 5 and 28 to the Financial Statements...

(ii) C Bonwick and K Ross were granted options pursuant to resolutions 4 and 5 passed at the 2003 Annual General Meeting. The options were issued on 26 November 2003. Further information relating to these options is contained in notes 5 and 28 to the Financial Statements.

(iii) K Ross was issued options pursuant to the Employee Option Plan on 11 September 2002. Further information relating to these options is contained in notes 5 and 28 to the Financial Statements. e agus realaí agus sé eil

(iv) T Moran was issued options pursuant to the Employee Option Plan on 1 October 2002. Further information relating to these options is contained in notes 5 and 28 to the Financial Statements. The contained

(v) T Moran is employed by a subsidiary of the Company and his remuneration is disclosed for consolidation purposes only. The specified directors are all directors of the parent entity.

DIRECTORS' REPORT

(vi) Remuneration options: Granted and vested during the year.

The Company uses the fair value measurement provisions of AASB 1046 "Director and Executive Disclosures for Disclosing Entities" and the pending AASB 2 "Share-based Payments" prospectively for all options granted to directors and relevant executives, which had not vested as at 1 July 2003. The fair value of such grants is being amortised and disclosed as part of director and executive. emoluments on a straight-line basis over the vesting period. No adjustments have been or will be made to reverse amounts previously disclosed in relation to options that never vest (ie. forfeitures).

From 1 July 2003 options granted as part of director and executive emoluments have been valued using the Black-Scholes Option Pricing Model, which takes account of factors including the option exercise price, the current level and volatility of the underlying share price, the risk-free interest rate, expected dividends on the underlying share, current market price of the underlying share and the expected life of the option.

The amount included in remuneration from options is based on fair value and has been calculated by an independent major accounting firm. The Black-Scholes Option Pricing Model does not take into account the following terms relevant to the options:

$*$ . The options have the characteristics of American options (not European) in that once vested they can be exercised at any time up until the expiry date;

... The options are not readily tradeable in that they are not listed on the ASX;

The options cannot be transferred to any other party; and

. If the option holder ceases to be a director of the Company, any unexercised portion of the options will be cancelled.

The restrictive nature of the abovementioned factors is likely to have a negative impact on the option values calculated under the Black-Scholes Option Pricing Model. In order to reflect the negative impact of these factors, the independent accounting firm applied a discount to the maximum theoretical value of each of the options.

The fair value of the options affecting remuneration for the year ending 30 June 2004 is shown in the following table:

Director -	Discount	Pi Discountibo n			in Basar P	éalté.
		: Option Valge	CASH PAYMENT,	YAU!	* Optional
		- CBSTS -	ARCENS INT		VALUABER
$\cap$ R Marston $\cap$	30 -	39.51	10.3	$-29.2$	250,000	80,683.
$\sim$ C Bonwick $\sim$	30 ·	$-43.8$		43.8	$-375,000$	184,738
$K$ Ross $\sim$	-30.	43.8		$-43.8$ .	187.500.	92,369
J Christie -		$39.5 -$		$\sim$ 29.2 $\sim$ $\sim$ 125,000 $\,$		40,341

Options were also issued in a prior year to Kelly Ross and Tim Moran and these options have been revalued on a basis consistent with the options issued during the 2004 financial year. The remuneration of Kelly Ross and Tim Moran in the current year and the previous year's comparatives include the value of these options allocated according to the independent advice received.

These fair values are not recognised as expenses in the financial statements.

Further information relating to the options issued by the Company during the year is included in note 28 to the Financial Statements.

Meetings of Directors

During the financial year, 26 meetings of directors (including committees of directors) were held. The number of meetings attended by each director during the year is as follows:

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MEETINGS - CARL COMMITTEE HOMES $\sim$ COMMITTEE COMMITTEE
$\texttt{[Figure 10.47080 \dots]} \texttt{ArrayAD} \dots \texttt{[Figure 10.47686 \dots]} \texttt{[ArrayBD} \dots \texttt{[Eross10.47696 \dots]} \texttt{[ArrayBD} \dots \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[PP000 \dots]} \texttt{[$ ATTEN

Christopher Bonwick
Rod Marston
Kelly Ross
John Christie

Keith Docking

Unlisted Options

Options that were granted over unissued shares during or since the end of the financial year by the Company to directors or any of the five most highly remunerated officers as part of their remuneration are as follows...

1,500,000 options for ordinary shares issued to Christopher Bonwick on 26 November 2003 at an exercise price of \$1.03.
1,000,000 options for ordinary shares issued to Rod Marston on 26 November 2003 at an exercise price of \$1.33.
750,000 options for ordinary shares issued to Kelly Ross on 26 November 2003 at an exercise price of \$1.03.
500,000 options for ordinary shares issued to John Christie on 26 November 2003 at an exercise price of \$1.33.

Unlisted options issued as at the date of this report are as follows:

NUMBER	- Exercse Parx . HEXHIAT DAGE
$-300,000$	10/09/05 34 cents.
2,000,000	30/06/06 45 cents
950,000	31/07/07 :35 cents
1,450,000	30/09/08 96 cents
1,500,000	30/06/08 \$1.33.
2,250,000	30/06/08 $-51.03$
1,300,000	\$1,16 30/06/09
a tra aad

9,750,000

No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of any other. body corporate. الموالية المتحاجين

No shares have been issued since the end of the financial year as a result of the exercise of unlisted options.

Further information relating to unlisted options is included in note 8(ii) of Additional Information for Listed Public Companies.

Employees

The economic entity had 101 employees at the end of the financial year (2003: 75).

Indemnifying Officers or Auditor

During or since the end of the financial year the economic entity has given an indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows:

The Company has paid premiums to insure each of the following directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the Company or any controlled entity of the Company, other than conduct involving a wilful breach of duty in relation to the Company. The amount of the premium was \$5,592 for each director: Christopher Bonwick, Rod Marston, Kelly Ross and John Christie.

The Company has not paid any premiums to indemnify or insure the auditors of the Company.

Proceedings on Behalf of Company

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year.

Rounding of Amounts

The Company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities & Investments Commission, relating to the "rounding off" of amounts in the directors' report. Amounts have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar. Signed in accordance with a resolution of the Board of Directors.

C.M.Bonwick Managing Director Dated this 31st day of August 2004.

STATEMENTS OF FINANCIAL PERFORMANCE

FOR THE YEAR ENDED 30 JUNE 2004 ~~

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Profit from ordinary activities after related income tax expense communities		$-17,335$ . The set of $-1,398$ . The set of $8,618$ . The set of $-1,398$		(742)
Income tax benefit/(expense) relating to ordinary activities	(7.457)			1.015
Profit from ordinary activities before income tax expense	24.792.	1.383	7.847	(1.757)
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Other expenses from ordinary activities	(1,989)	(1, 114)	(956)	(861)
Exploration costs written off	(1, 974)	(1,286)	(1, 158)	(1,286)
Ore tolling costs	(5,251)	(2,658)
Royalty expense	(1, 722)	(773)
Borrowing cost expense	(1,309)	(1,042)
Rehabilitation provision	(207)
Depreciation and amortisation expense	(7,545)	(3,757)	(68)	(30)
Employee costs	(9,699)	(4,513)	(695)	(253)
Mining and development costs	(12, 735)	(8, 123)
Revenues from ordinary activities	67,223	24.649	10,724	.673
	-2004 \$'000	ECONOMIC ENTITY 2003 \$300	2004. 1300	PARENT EMIDY 2003 \$000

.
- Basic earnings per share (cents per share) 24.48

- Diluted earnings per share (cents per share)

The accompanying notes form part of these financial statements.

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19 de decembro de Carriera

STATEMENTS OF FINANCIAL POSITION

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AS AT 30 JUNE 2004

			ECONOMIC ENTITY		PAsbir Extire
	Nom	2004 \$'000	\$`OO	2004 \$Q00	2003 \$ 000
CURRENT ASSETS
Cash assets		18,370	4,041	9,791	547.
Receivables.	·q	13,677	5,691	98	.68
Inventories	10.	11	41
Other	12.	9,910	14,460
TOTAL CURRENT ASSETS		41,968	24,233	9,889	615
NON-CURRENT ASSETS
Receivables	9	514	1,001	14,116	6,965
Tax assets	11.	657	3,535	657	1,380
Investments	13	564	561	564	561
Property, plant and equipment.	15	8,252	8,608	384	105
Exploration and development expenditure	-16.	14,480	11,590.	2,908	1,215
Mine acquisition and pre-production costs	17.	2,062	2,733
Other	12.
TOTAL NON-CURRENT ASSET		26,529	28,035	18,629	10,226
TOTAL ASSETS		68,497	52,268	28,518	10,841
CURRENT LIABILITIES
Payables -	18.	6,490	4,577.	404	333
Interest bearing liabilities	:19	7,371	4,738
Tax liabilities.	20.	4,414		4,414
Other	21	10,202	14,697	32.	7
TOTAL CURRENT LIABILITIES		28,477	24,012	4,850	340
NON-CURRENT LIABILITIES.
Interest bearing liabilities.	19.	5,289.	12,460
Tax liabilities	20.	3,686	3,520	3,686	365
Other.	21	207.
TOTAL NON-CURRENT LIABILITIES		9,182	15,980	3,686	365
TOTAL LIABILITIES		37,659	39,992	$-8,536$	705
NET ASSETS		30,838	12,276	19,982	10,136
EOUITY.
Contributed equity Accumulated profits/(losses)	22 23:	$-13,777.$ $-17,061$	$-12,549$ (273)	13,777 6,205	12,549 (2, 413)

TOTAL EQUITY		30,838	$-12,276$	19,982	$-10,136$

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A The accompanying notes form part of these financial statements.

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STATEMENTS OF CASH FLOWS

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AS AT 30 JUNE 2004. $\alpha_{\rm{c}}$ .

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		Есовоми: Евляч			Paular Emily
	Note	2004	-2003 .\$700	2004 \$000	2003. 51000

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers		58,954	19,139	600	602
Dividends received from subsidiary				10,000
Payments to suppliers and employees		(29, 947) 456	(12,969) 94	(1,803)	(1,045)
Interest received				102	72
Borrowing costs - GST refunded from ATO		(1, 394)	(1,042) 74.
					$-(2)$
Net cash provided by (used in) operating activities	26а	28,069	5,296	8,899	(373)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(3,319)	(5, 177)	(343)	$(29)$ .
Payments relating to acquisition and investments		3)	(5)	(3)	(5)
Proceeds from sale of exploration property		20		20.
Proceeds from sale of property, plant and equipment		8.
Payments relating to mine development -		(2, 232)	(3,660)
Bonds to acquire property, plant and equipment		490	(980)
Loan to subsidiary					(6,7.16)
Payments for exploration and evaluation expenditure		(5, 394)	(12, 329)	(2,638)	(1,475)
Net cash provided by (used in) investing activities		(10, 430)	(22, 151)	(2,964)	(8,225)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares		1,228	7,009	1.228	7,009
Costs associated with issue of shares			(274)		(274)
Proceeds from borrowings		11,335	13,000
Repayment of borrowings		(15, 873)	(1,249)	2,081
Net cash provided by (used in) financing activities		(3,310)	18,486	3,309	6,735

Net increase/(decrease) in cash held		14,329	1,631	9,244	(1,863)
Cash at beginning of year		4,041	2,410	547	2.410
Cash at end of year		18,370	4,041	9,791	$-547$

Parties
1978 – Alexandr $\sim$ The accompanying notes form part of these financial statements.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2004

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES.

The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report covers the economic entity of Independence Group NL and controlled entities. Independence Group NL is a listed public company, incorporated and domiciled in Australia. The annual states and

The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets...

The following is a summary of the material accounting policies adopted by the Company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Principles of Consolidation

A controlled entity is any entity controlled by Independence Group NL. Control exists where Independence Group NL has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with Independence Group NL to achieve the objectives of Independence Group NL. A list of controlled entities is contained in note 14 to the Financial Statements.

All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation. Where controlled entities have entered or left the economic entity during the year, their operating results have been included from the date control was obtained or until the date control ceased.

Income Tax

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The Company adopts the liability method of tax-effect accounting whereby the income tax expense is based on the profit from ordinary activities adjusted for any permanent differences.

Timing differences which arise due to the different accounting periods in which items of revenue and expense are included in the determination of accounting profit and taxable income are brought to account as either a provision for deferred income tax or as a future income tax benefit at the rate of income tax applicable to the period in which the benefit will be received or the liability will become payable.

Future income tax benefits are not brought to account unless realisation of the asset is assured beyond reasonable doubt. Future income tax benefits in relation to tax losses are not brought to account unless there is virtual certainty of realisation of the benefit. the communication

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Investments

Non-current investments are measured on the cost basis. The carrying amount of non-current investments is reviewed annually by directors to ensure it is not in excess of the recoverable amount of these investments. The recoverable amount is assessed from the quoted market value for listed investments or the underlying net assets for other non-listed investments. The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts.

Investments in associate companies are recognised in the financial statements by applying the equity method of accounting.

Interests in Joint Ventures

The Company's share of the assets, liabilities, revenue and expenses of joint venture operations are included in the appropriate items of the statements of financial performance and financial position. Details of the economic entity's interests, if any, are shown in note 13.

The Company's interests in joint venture entities, if any, are brought to account at cost using the equity method of accounting in the financial statements.

Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value, less, where applicable, any accumulated depreciation.

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 which will be received from the assets' employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Depreciation

The depreciable amount of all fixed assets excluding freehold land, is depreciated on a straight line basis over their useful lives to the Company commencing from the time the asset is held ready for use.

The useful lives for each class of depreciable assets are: .
Class of Fixed Asset.

$\frac{1}{2}$ Class OF FIXED HSSEL $\frac{1}{2}$ , $\cdots$ , $\frac{1}{2}$ , $\cdots$ , $\cdots$ , $\cdots$ , $\cdots$ , $\cdots$ is a comparable than the
the control of the 11 3-5 years in Office furniture and equipment and the control of
$\mathbb{E}$ Mine plant and equipment $\mathbb{E}$ and $\mathbb{E}$ and $\mathbb{E}$ and $\mathbb{E}$ and $\mathbb{E}$ and $\mathbb{E}$

Refer to note 1(g) for the amortisation policy applying to exploration and development costs and note 1(t) for the policy applying to the amortisation of pre-production and acquisition costs.

Recoverable Amount

The recoverable amount of an asset is the net amount expected to be recovered through the net cash inflows arising from its continued use and subsequent disposal. The expected net cash flows included in determining recoverable amounts of noncurrent assets are not discounted to their present values.

Where the carrying amount of a non-current asset is greater than its recoverable amount, the asset is devalued to its recoverable amount. The decrement is recognised as an expense in the statement of financial performance. Where net cash inflows are derived from a group of assets working together, recoverable amount is determined on the basis of the relevant group of assets.

Leased Non-Current Assets

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Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred. Lease incentives under operating leases are recognised as a liability.

Finance leases are capitalised. A lease asset and liability are established at the present value of minimum lease payments. Lease payments are allocated between the principal and the interest component of the payment. The leased asset is depreciated over its useful life.

Exploration and Development Expenditure

Exploration, evaluation and development 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 which 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 areaaccording to the rate of depletion of the economically recoverable reserves.

A review is undertaken of each area of interest on a quarterly basis to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

When further development expenditure is incurred in respect of a mine property after the commencement of production, such expenditure is carried forward as part of development costs only when future economic benefits are established, otherwise such expenditure is classified as part of the cost of production.

Amortisation of costs are provided on the unit-of-production method with separate calculations being made for each mineral resource. The unit-of-production basis results in an amortisation charge proportional to the depletion of the economically recoverable mineral reserves. a la p

The net carrying value of each mine property is reviewed regularly. If this value exceeds its recoverable amount, the excess is either fully provided for or written off in the financial year in which this is determined.

Restoration and Rehabilitation Expenditure

Restoration and rehabilitation costs necessitated by exploration, evaluation and mining activities are charged to costs of production on a gradual basis over the life of the economically recoverable resources. These costs include the cost of revegetation, plant and waste site closure and subsequent monitoring of the environment. Costs are estimated on the basis of current undiscounted costs, current legal requirements and current technology.

Employee Entitlements

Provision is made for the Company's liability for employee entitlements arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those entitlements.

Contributions are made by the economic entity to employee superannuation funds and are charged as expenses when incurred...

Cash

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For the purpose of the statement of cash flows, cash includes cash on hand and at call deposits with banks or financial institutions, net of bank overdrafts.

Comparative Figures

Where reguired by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

Revenue

Sales revenue comprises revenue earned from the provision of products to entities outside the economic entity. Sales revenue is recognised when the product is delivered and risk has been passed to the customer.

Sales revenue represents gross proceeds receivable from the customer. Sales are initially recognised at estimated sales value when the product is delivered. Adjustments are made for variations in metal price, assay, weight and currency between the time of shipment and the time of final settlement of sales proceeds.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

All revenue is stated net of the amount of goods and services tax (GST).

m. Payables

These amounts represent liabilities for goods and services provided to the economic entity prior to the end of the financial. year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Receivables

Receivables represents GST recoverable together with trade debtors and monies held on deposit. All receivables are recognised at the full value of the amount receivable.

Trade debtors represents gross sales revenue proceeds receivable from the customer. A receivable is recognised at estimated sales value when the product is delivered. Adjustments are made for variations in metal price, assay, weight and currency between the time of shipment and the time of final settlement of sales proceeds, which is 120 days following the month of delivery of the product to the customer.

Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision is raised where there is some doubt as to the collectability of a debt.

Earnings per Share

The economic entity has applied AASB 1027 Earnings Per Share.

Basic Earnings per Share

Basic EPS earnings are calculated using net profit or loss after income tax attributable to members of the Company. Diluted earnings per Share

Diluted EPS earnings are calculated by adjusting the basic EPS earnings for the after tax effect of financing costs and the effect of conversion to ordinary shares associated with dilutive potential ordinary shares, rather than the notional earnings on the funds that would have been received by the entity had the potential ordinary shares been converted.

The diluted EPS weighted average number of shares includes the number of ordinary shares assumed to be issued for noconsideration in relation to dilutive potential ordinary shares, rather than the total number of dilutive potential ordinary shares. The number of ordinary shared assumed to be issued for no consideration represents the difference between the number that would have been issued at the exercise price and the number that would have been issued at the average. market price.

The identification of dilutive potential ordinary shares is based on net profit or loss from continuing ordinary operations, and is applied on a cumulative basis, taking into account the incremental earnings and incremental number of shares for each series of potential ordinary share.

Where diluted earnings per share are not dilutive, they are not disclosed.

Foreign Currency Transactions

Foreign currency transactions are initially converted to Australian currency at the rate of exchange ruling at the date of each transaction. At balance date amounts payable and receivable in foreign currencies are translated to Australian currency at rates of exchange current at that date. Resulting exchange differences are recognised in determining the profit or loss for the year in the statement of financial performance.

(i) Specific Commitments

Hedging is undertaken in order to avoid or minimise possible adverse financial effects of movements in exchange rates. Gains or costs arising upon entry into a hedging transaction intended to hedge the purchase or sale of goods or services, together with subsequent exchange gains or losses resulting from those transactions, are deferred to the date of the purchase or sale and included in the measurement of the purchase or sale. In the case of hedges of monetary items, exchange gains or losses are brought to account in the financial year in which the exchange rates change. Gains or costs arising at the time of entering into such hedging transactions are brought to account in the statement of financial performance over the lives of the hedges.

FOR THE YEAR ENDED 30 JUNE 2004.

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

When anticipated purchase or sale transactions have been hedged, actual purchases or sales which occur during the designated hedge period are accounted for as having been hedged until the amounts of those transactions in the designated period are fully allocated against the hedged amounts.

If the hedged transaction is not expected to occur as originally designated, or if the hedge is no longer expected to be effective, any previously deferred gains or losses are recognised as revenue or expense immediately. If the hedging transaction is terminated prior to its maturity date and the hedged transaction is still expected to occur as designated, deferral of any gains or losses which arose prior to termination continues and those gains or losses are included in the measurement of the hedged transaction.

(ii) General Commitments

Exchange gains or losses on other hedge transactions are brought to account in the statement of financial performance in the financial year in which the exchange rates change. Gains or costs arising on entry into hedges of general commitments are recognised as assets or liabilities at the time of entry into the hedges and are amortised over the lives of the hedges.

Derivatives

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The economic entity is exposed to fluctuations in commodity prices and foreign exchange rates resulting from its activities. It is the economic entity's policy to use derivative financial instruments to hedge a proportion of this exposure.

Derivative financial instruments designated as hedges are accounted for on the same basis as the underlying exposure.

Commodity Hedging

Hedging is undertaken in order to avoid or minimise possible adverse financial or cash flow effects of movements in commodity prices. Premiums received or costs arising upon entering into forward sale, option and other derivative contracts intended to hedge specific future production, together with subsequent realised and unrealised gains or losses, are deferred until the hedged production is delivered and included in the measurement of sale.

Where a hedging transaction is terminated prior to maturity because the hedged production is no longer expected to be produced, any gains or losses are recognised in the statement of financial performance on the date of termination. If the hedging transaction is terminated prior to its maturity date and the hedged transaction is still expected to occur, deferral of any gains and losses which arose prior to termination are deferred and brought to account when the hedged transaction OCCUIS.

If a hedge transaction relating to a commitment for the sale of a commodity is redesignated as a hedge of another specific commitment and the original transaction is still expected to occur, the gains and losses that arise on the hedge prior to this redesignation are deferred and included in the measurement of the original purchase or sale when it takes place. If the hedge transaction is no longer expected to occur, the gains and losses that arise on the hedge prior to its redesignation are recognised in the statement of financial performance at the date of the redesignation.

Inventories

Raw materials and stores, work in progress and finished goods are stated at the lower of costs and net realisable value. Costs are assigned to individual items of stock on the basis of weighted average costs.

Mine Pre-production and Acquisition Costs

When an operation is acquired, various costs are incurred prior to operations commencing on the mine property. Acquisition Costs, such as legal expenses, financing arrangement expenses and feasibility costs, are capitalised and included in the statement of financial position (see note 17).

Prior to commencing production at a mine property, various costs are incurred to enable the commencement of mining operations, such as recruitment of staff, repair and maintenance of the site and its related equipment, and mine planning and scheduling. These Pre-production Costs are capitalised and included in the statement of financial position (see note 17). Mine Acquisition Costs and Pre-production Costs are amortised on a unit-of-production basis, based upon the recoverable mineral reserves estimated at the time of acquisition of the mine property.

Rovalties

Royalties are accrued and charged against earnings in the period in which the minerals are extracted.

Rounding of Amounts

The Company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities & Investments Commission, relating to the "rounding off" of amounts in the Financial Statements. Amounts have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

Tax Consolidation Regime

Independence Group NL and its wholly owned subsidiaries have formed an income tax consolidated group under the Tax Consolidation Regime. Independence Group NL is responsible for recognising the current and deferred tax liabilities for the tax consolidated group. The group formed an income tax consolidated group on 1 July 2002.

Mon	2004	Economic Entity 2003	.2004	Parint ENITY 2003.
		1000	\$1000	8300
NOTE 2: REVENUE
Ordinary activities
Sale of goods	66,737.	24,553
Interest received	459	95.	-105.	72
Dividend received from wholly-owned entity			$-10,000$
Management fees			600	600
Other revenue			19
Total Revenue	67,223	-24,649 -	$-10.724$	673
NOTE 3: PROFIT FROM ORDINARY ACTIVITIES
Profit from ordinary activities before income tax has been determined after charging the following items:
Cost of sale of goods.	29,745	15,814
Employee entitlements provision	202	230
Borrowing costs - other entities	1,309.	$-1,043$
Amortisation	3,807	1,635.
Depreciation	3,738	2,122	68.	30
Write-off of capitalised exploration expenditure	1,974	1,286	1,158	1,286
Provision for mine restoration	207
NOTE 4: INCOME TAX EXPENSE
a. The prima facie tax on profit from ordinary activities before tax is reconciled to the income tax as follows:
Prima facie tax benefit/(expense) on profit/ loss from ordinary activities before income tax at 30%	(7.437)	(415)	(2, 354)	527
Add: Tax effect of:
Non-allowable items	$\langle 4 \rangle$	(69)	$\langle 4 \rangle$	(11)
(Under)/over.provision Timing differences not previously brought to account	(16)	.(302)	129	(302)
Tax losses carried forward not previously brought to account		80		801
Impact of the Tax Consolidation System
Initial recognition of deferred tax balance of subsidiary on implementation of tax consolidation system.			(2,805)
Consideration payable by subsidiary in respect of transferred tax balances			2,805
Current and deferred taxes relating to transactions, events and balances of subsidiary in the tax consolidated group. The			(8,054)
Net income tax benefit arising under tax sharing agreement with subsidiary in the tax consolidated group.			8,054
Non-assessable and non-deductible amounts related to transactions within the tax consolidated group			3,000
Income tax (expense)/benefit	1.457)			1.015

Independence Group NL and its wholly owned subsidiaries formed a tax consolidated group effective 1 July 2002. The entitie s have also entered a tax sharing agreement in order to allocate income tax expense to the wholly owned subsidiaries on the same basis as if they were tax-paying entities. In addition, the agreement provides for the allocation of income tax liabilities between the entities should the head company default on its tax payment obligations. The head company of the tax consolidated group is independence. Group NL.

BUNG

NOTES TO THE FINANCIAL STATEMENTS

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1982 - 1982 1982 1982 1982 1982 1982 1982 1982

	NOTE 5: DIRECTORS' AND EXECUTIVES' REMUNERATION
	a. Details of Specified Directors and Specified Executives
	The specified directors who held office during the financial year were:
	Rod Marston (Chairman, Non-executive)
	Christopher Bonwick (Managing Director)
Kelly Ross (Executive)
	John Christie (Non-executive) and all all
	Keith Docking (Non-executive), resigned 20 August 2003
The specified executives during the financial year were:
	Tim Moran (General Manager - Long Nickel Mine)
	The specified executives are the same as the most highly remunerated officers of the consolidated entity. Executives are those directly accountable and responsible for the operational management and strategic direction of the consolidated entity.
	b. Remuneration of Specified Directors and Specified Executives
	The remuneration committee reviews the remuneration packages of all specified executive directors and specified executives on an annual basis and makes recommendations to the Board. Remuneration packages are determined with regard to current market rates and comparable industry salaries, adjusted to reflect the performance of the executives. The remuneration of non-executive directors is determined by the Board within the maximum amount approved by shareholders in general meeting.
The elements of remuneration have been determined on the basis of the cost to the Company or the consolidated entity.
2004	Salasy & Febb	Bows	VINNELE COSSS	*SUPERAGEALATION*	Ornassi	$\mathfrak{J}_{\mathcal{O}}(\mathbb{A}, \mathbb{S})$
Specified directors (v) R Marston (i)	53,955				80.683	134,638
C.Bonwick (ii)	241,076	4,000	25.354		184,738	455,168
K Ross (ii)		3.000	10.014	13,061	95,851	263,834
J Christie (i)	141,908 93,721				-40,341	134,062
K Docking	44,219.			-8.750		52,969

Total	574,879	7,000	35,368	21,811	401.613.	-1,040,671
Specified executives (v)
T Moran (iv)	161,680	2,600		14,551	41,110	219,941
2003.	Salay & Pees	Boxes	Vesta: Cogn	SonBlankladyg	Oriogs	Torai (f
Specified directors (v)
R Marston	16,250					16,250
C Bonwick	191,872		24,359			216,231
K Ross (iii)	110,505.		9,730	8.458	32.580	161,273
J Christie	73,610					73,610
J Schiller	51,301		15,306	5,277		71,884
K Docking	75,836			43,750.		119,586
Total	519,374		49,395	57,485	32,580	658,834
Specified executives (v)
T Moran (iv).	160,000			14,400	91,645	266,045
Financial Statements. Statements.	.(i) R Marston and J Christie were granted options pursuant to resolutions 6 and 7 passed at the 2003 Annual General Meeting. The options were issued on 26 November 2003. Further information relating to these options is contained in note 28 to the (ii) C Bonwick and K Ross were granted options pursuant to resolutions 4 and 5 passed at the 2003 Annual General Meeting. The options were issued on 26 November 2003. Further information relating to these options is contained in note 28 to the Financial (iii) K Ross was issued options pursuant to the Employee Option Plan on 11 September 2002. Further information relating to these	options is contained in note 28 to the Financial Statements.

(c) Remuneration options: Granted and vested during the year

The Company uses the fair value measurement provisions of AASB 1046 "Director and Executive Disclosures for Disclosing Entities". and the pending AASB 2 "Share-based Payments" prospectively for all options granted to directors and relevant executives, which had not vested as at 1 July 2003. The fair value of such grants is being amortised and disclosed as part of director and executive emoluments on a straight-line basis over the vesting period. No adjustments have been or will be made to reverse amounts previously disclosed in relation to options that never vest (ie. forfeitures). The

... The options have the characteristics of American options (not European) in that once vested they can be exercised at any time up until the expiry date; $\sim$ ....
The options are not readily tradeable in that they are not listed on the ASX;
The options cannot be transferred to any other party; and
. If the option holder ceases to be a director of the Company, any unexercised portion of the options will be cancelled.

The fair value of the options affecting remuneration for the year ending 30 June 2004 is shown in the following table:

h Beacann l PRESENT VALLE OF Adriened Opposit DIRECTOR i isaho - Эвсоан) -	Valdė.
CASH PAYMENT Office Valle Orikas I ¹ VALLE
CENIS CGSOS - 结联想常 CQ:TS

29.2 250,000 -39.5. R Marston -10.3	80,683.
375.000 C Bonwick 43.8 43.8	184,738
K Ross. $-187,500$ 43.8 $-43.8$	92,369
J Christie $-125,000$ $-10.3$ . 29.2 39.5 ·	$-40,341$

These fair values are not recognised as expenses in the financial statements....

Options were also issued in a prior year to Kelly Ross and Tim Moran and these options have been revalued on a basis consistent. with the options issued during the 2004 financial year. The remuneration of Kelly Ross and Tim Moran in the current year and the previous year's comparatives include the value of these options allocated according to the independent advice received.

Further information relating to the options issued by the Company during the year is included in note 28 to the Financial Statements.

(d) Option holdings of specified directors and specified executives

	"Balasce at Start"	1 Garbied 114 H		Balance at
$-2004 -$	mis. Jor Yeau	- Durang Year , Operang Exercisio		END OF YEAR .		Vesteo at 30 June 2004
						TOTAL ¹¹ NOT EXPROSABLE ² EXPROSABLE
Specified directors
R Marston		1,000,000.		1,000,000
C Bonwick		,500,000		1,500,000
K Ross.	300.000	750,000		1.050,000	300,000		300,000
J Christie.		500,000		$-500,000$
Specified executives
ा Moran	1.200.000		(250,000) ==	$950.000 -$	950,000		300.000 650.000
Total	$1,500,000$ $\ldots$ 3,750,000 $\ldots$ (250,000) $\ldots$ $\ldots$ 5,000,000 $\ldots$ 1,250,000 $\ldots$ 300,000 $\sim$ 950,000 $\ldots$

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 june 2004.

NOTE 5: DIRECTORS' AND EXECUTIVES' REMUNERATION (continued)

(e) Terms and conditions of employment contracts

的复数人名英格兰人名英格兰人名英格兰人名英格兰人名英格兰人名英格兰人名英格兰人名英格兰

i) Mon-executive directors do not have employment contracts with the Company.
ii) Executive directors are employed under 2 year contracts. These contracts include provision for termination benefits of 12. months' remuneration should their employment be terminated due to a take-over event, and a substitution of the
iii) Executive directors are entitled to receive cash and/or equity based bonuses in addition to the remuneration stated in
their employment contracts. The Company bears any fringe benefits tax cost relating to executive directors' remuneration payments...
iv) Current employment contracts provide for remuneration of \$273,000 (Christopher Bonwick) and \$176,000 (Kelly Ross). me time. M. 정신 사회의 사회 시설이 있으니까? and self the

		kmen joshiy	Marini e	HY.
	-2004	2003	2004	-2003
	\$10,00	\$ 000	\$1000	\$ 000
NOTE 6: AUDITORS' REMUNERATION
Remuneration of the auditor of the economic entity for:
a. auditing or reviewing the financial report.	39	26	39	26
b. other services

	No.	No.
	7000	UC 60
NOTE 7: EARNINGS PER SHARE
a. Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS	70,818	64,739
Weighted average number of options outstanding	24,012	11,859
Weighted average number of issued contributing shares.	2,990	-400
Weighted average number of ordinary shares outstanding during	97,820.	76,998
the year used in the calculation of dilutive EPS
	.2004	2003
	\$1000	I 900
b. Earnings used in the calculation of basic EPS	17,335	1,383.
Options outstanding and contributing shares have been classified C. as potential ordinary shares and have been included in the determination of dilutive EPS.
NOTE 8: CASH ASSETS
Cash on hand
Cash at bank	6,385	56	2,763	4
Deposits at call	11,984	3,984	7,028	543

	18,370	4,041	-9,791	547
NOTE 9: RECEIVABLES
CURRENT
Trade debtors (i) $1(n)$ .	13,231	5,401
Other debtors	51	$-13$
GST receivable	395.	277	97.	68.

	$13,677$ and $-$	5.691		68

- NON-CURRENT
Deposits		$-1,001$		-21
Amounts owing from wholly-owned entities			14.092	- 6,944

	514	. 1,001	$\cdots$ 14,116	. 6.965

(i) Trade debtors consists of payments outstanding from WMC Resources Ltd for nickel delivered prior to the end of the financial period. Proceeds from nickel deliveries are paid in US dollars and are finalised on the average LME nickel price prevailing in the third month after the month of delivery. The economic entity is therefore required to use a "forecast" price when valuing the outstanding payments. The result is that the actual proceeds received in the future may be different to the trade debtor amount shown and may result in an adjustment being required to be made to subsequent financial statements.

	1111 Economy, Entry THE PARENT ENTITY
	2004.	$\sim 2003$	2004.	-2003 .
NOTE 10: INVENTORIES	\$'000.	-\$300	\$1000.	-3300
CURRENT.
Mine spares and stores.

NOTE 11: TAX ASSETS
: Future income tax benefit : .	657	$-3,535$	$-657$	$-1,380$
a. The future income tax benefit is made up of the following
estimated tax benefits:
- tax.losses	427.	3,440	427	$\sim$ 1,371
- timing differences	$-230$ .	- 95.		$-230$ 9
	$-657$	$\sim$ 3,535 $\cdot$	$657 - 1,380$

NOTE 12: OTHER ASSETS
CURRENT
Prepayments	$\cdot$ 148 $\cdot$
Foreign exchange gain (i) :	9,762	$\sim$ 14,460 $\degree$
	9,910	$-14,460$

NON-CURRENT

Prepayments

(i) The foreign exchange gain relates to USD currency hedging contracts held by the economic entity at the end of the financial. year. The contracts give rise to a future foreign exchange gain as at the end of the financial year, based on the excess to be received from closing out the contracts over the spot USD exchange rate applicable at the end of the financial year. The economic entity also held USD nickel commodity contracts at the end of the financial year which are not reflected in the Financial Statements in accordance with AASB 1012. The estimated effect of reflecting the value of these contracts in the Financial Statements is shown in note 29.

NOTE 13: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Interests are held in the following unlisted associated companies:

	Proces August	, PHONOS OF SHARE TIT	Casiyung Almodof t
			of Investment .
			73 Y.S
			-\$1000 - 81000 -

Southstar Diamonds Limited	Diamond exploration	. Ordinary .	564

٠7

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004-

NOTE 13: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)		ECONOMIC ENDITY 1	PARENT EVITY
	2004 S GOO	2003. \$'000	-2004 T \$300.	-2003- \$3000
Movements during the year in equity accounted investment in associated companies
Balance at beginning of the financial year. New investments during the year.	561	555	-561	- 555
Balance at end of the financial year -		564 - 561 - 561	$-564$	- 561
Retained earnings attributable to associate: b.		ลลลากปกกลเลนิดดินเนื้อลิละสากก่อนี้ อารุริ บไทย์หลังโตโตโตโตโตโตโลนิดดินเติมดินกับการ
Share of retained (losses) at end of the financial year $\text{max}$ , $\text{max}$ , $\text{max}$ , $\text{max}$ (52) $\text{max}$			$\mathbb{Z}\left(24\right)$ and $\mathbb{Z}\left(52\right)$ and $\mathbb{Z}\left(52\right)$	(24)
Summarised presentation of aggregate assets, liabilities and performance of associates:
is stabilized by a probability of $\mathcal{T}\mathrm{c}$ is the definition of $\mathcal{T}\mathrm{c}$ Total Assets				. 15
Net (loss) from ordinary activities after income tax of associates processes (56) more (48) man.			$\sim$ (56)	(48)

Independence Group NL fully paid ordinary shares.

Le Due to the immaterial balance of the associated company's retained losses, the economic entity has not reflected its share of the associate's losses in the investment balance.

NOTE 14: CONTROLLED ENTITIES

ومعاني والمتحدث والمتحدث

	¹⁰ Class of H Cousting of the Co	Percibitace Owned	Сокивалион то Рвоги
	ekororator 3ilean
		98. - - - -
			7005.

$\cup$ Controlled Entity: Lightning Nickel Pty Ltd $\cup$	: Australia Ord	'00. -1 UU	$220 -$

		Economic Entry		PARENT ENTITY
	2004	2003	2004	2003
NOTE 15: PROPERTY, PLANT AND EQUIPMENT	\$'000	\$1000	\$1000	\$ 000
Mine plant and equipment - leased	5,900	5,565
Accumulated amortisation	(2,996)	(1, 125)

	2,904	4,440
Mine plant and equipment - other	7,730	5,030
Accumulated depreciation	(2,766)	(967)
	4,964	4,063
Other plant and equipment	491	146.	491	146
Accumulated depreciation	(107)	(41)	(107)	$-(41)$
	384	105	384	105
Total written down value	8,252	8,608	384	105

Reconciliation of the movement for the year.
Carrying amount at the beginning of year	8,608	-106	105	106
Additions	3,382	10,624	347
Disposals
Depreciation/amortisation expense	(3,738)	(2,122,	(68)	$\langle 30 \rangle$
Carrying amount at the end of year	8,252	$-8,608$	384	105
NOTE 16: EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE
Exploration and evaluation expenditure:
Opening balance	11,010	$-1,255$	1,215	$-1,027$ .
Current year's expenditure	5,682	12,328	2,851	1,474
Written off during the year	(1, 974)	(1,286)	(1, 158)	(1,286)
Amortisation expense	(2,457)	(1, 287)
	12,261	$11,010 -$	$2,908$ .	$-1,215$
Development expenditure:
Opening balance.	-580
Current year's expenditure	2,232	580
Amortisation expense	(593)
	-2,219	-580
Carrying amount at end of year	14,480	$-11,590$ .	$-2,908$	$-1,215$

$\sim$ $\sim$ $\sim$ $\sim$

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2004

NOTE 17: MINE ACQUISITION AND PRE-PRODUCTION COSTS
Mine acquisition costs	1,692	$-1,692$
Pre-production costs	1,473	1,389
	3,165	$-3,081$
Accumulated amortisation	(1, 103)	(348)
Carrying amount at end of year	2,062	2,733
Note1(t) describes the policy relating to the carrying value of interests in mine acquisition and pre-production costs.
NOTE 18: PAYABLES
Trade creditors	2,928	2,405	239	253
GST Payable	368	285
Sundry creditors and accrued expenses	3,194	-1,887	163	- 80
	6,490	4,577	404	333
NOTE 19: INTEREST BEARING LIABILITIES
CURRENT
Bank loans (i)	5,500	3,000
Lease liabilities (ii)	1,871	1,738
	7,371	4,738
NON-CURRENT
Bank loans (i)	4,500	10,000
Lease liabilities (ii)	-789.	2,460
	5,289	12,460
Financing Arrangements (iii)
Entities have access to the following financing arrangements at balance date:
Working capital facility.		3,000
Less: drawn down portion Cash advance facility	10,000	(3,000) 10,000
Less: drawn down portion	(10,000)	(10,000)
Guarantee facility.	1,500	2,000
Less: drawn down portion	(1, 389)	(1,389)
	111	-611.

$\pm\omega$ . The bank loans are secured by a fixed and floating charge over the assets of the economic entity. New sec

(ii) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.

(iii) The facilities are denominated in Australian dollars and interest is charged at the BBSY rate plus an applicable margin. The facilities are repayable by 30 June 2006. Provision has been made in the Facility Arrangements to enable early repayment of the facilities at the election of the economic entity. The facilities in place with Bank of Western Australia Ltd at the commencement of the financial year were refinanced with Commonwealth Bank of Australia during the financial year.

	2004. FB00-	Économic Entity -2003 ≮WM		Paseer Exmy 2003 RW
NOTE 20: TAX LIABILITIES
CURRENT.
Income tax payable	.414		4.414

NON-CURRENT- Provision for deferred income tax		$3,686$ $3,520$ $3,686$		365

NOTE 21: OTHER LIABILITIES
CURRENT Foreign exchange gain (i)	$-9.762$	$-14,460$
Employee entitlements	440	- 237
		hs. Hen 14.697 (1111)
	10.202
NON-CURRENT : Provision for restoration (ii)	207
(i) The foreign exchange gain relates to USD currency hedging contracts held by the Company at the end of the financial year.
The contracts give rise to a future foreign exchange gain as at the end of the financial year, based on the excess to be received from closing out the contracts over the spot USD exchange rate applicable at the end of the financial year. The economic entity
also held USD nickel commodity contracts at the end of the financial year which are not reflected in the Financial Statements in accordance with AASB 1012. The estimated effect of reflecting the value of these contracts in the Financial Statements is shown in note 29.
(ii) A provision for restoration is recognised in relation to mining activities for costs such as reclamation, waste site closure, plant closure and other costs associated with the restoration of the mining site. Estimates of the restoration obligations are based on anticinated technology legal requirements and future costs. In determining the restoration provision the entity has assumed no

significant changes will occur in the relevant Federal and State legislation in relation to restoration of such mines in the future.

		' ECONOMIC EMITY	rowan renny
	- 2004	$-2003$	. ZODA	2003 79 Y M

NOTE 22: CONTRIBUTED EQUITY.
75,237,280 (2003: 68,155,750) fully paid ordinary shares (a)	13,485.	$-42,271$	13,485	12,271
7,310,000 (2003: 9,955,000) partly paid contributing shares (b)		10.		10
24,552,720 (2003: 28,739,250) fully paid options for ordinary shares (c)	246	268.	246.	268
375,000 (2003: Nii) partly paid unlisted options (d)
		13,777 12,549 13,777		-12.549
a. Ordinary shares (i)
At the beginning of year		$12,271$ 5,536	$-12,271$	5.536
Shares issued during the year
Issued 1 July 2002 to 30 June 2003		7.009		7.009
4,186,530 listed options exercised (c)	860		860
2,645,000 contributing shares fully paid (b)	267.		267
250,000 unlisted options exercised (v)	-87
Transaction costs relating to share issues				(274)

NOTES TO THE FINANCIAL STATEMENTS. FOR THE YEAR ENDED 30 JUNE 2004

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NOTE 22: CONTRIBUTED EQUITY (continued)

a da 1970.
La dia dia 49.000 metatra 2000 metatra 2000 metatra.

$\sim 100$

. . . . . . . . . . . . . . . . . .

	NO. -3000	No :000	ք0. °000	- 40. .1990
At beginning of the year	68,156	47,506	68,156	47,506
Shares issued during year	7,081	20,650	7,081	20,650
At reporting date	75,237	68,156	75,237	68,156
	2004	2003	2004	2003
b. Ordinary Contributing Shares - Partly Paid (ii)	\$'000	3′00C	\$1000	-\$1000
At beginning of the year.	10 ₁	10	10
Converted to ordinary shares during the year	(3)		(3)
At reporting date		10		10
	No. '000	- No ΩW W	'No. 300	- No. 4000
At beginning of the year.	9,955	10,000	9,955	10,000.
Converted to ordinary shares during the year	(2, 645)	(45)	(2, 645)	(45)
At reporting date	7,310	9,955	7,310	9,955
	2004	2003	2004	2003
c. Options for Ordinary Shares - Listed (iii)	\$'000	\$900	5'000	\$1000
At beginning of the year	268	268	268	268
Converted to ordinary shares during the year	(22)		(22)
At reporting date	246	268	246	$-268$
	Ño '000	, Pika. 900	1000	iNo. 7000
At beginning of the year	28,739	28,744	28,739	28,744
Converted to ordinary shares during the year.	(4, 186)	ි (5)	(4, 186)	(5)
At reporting date	24,553	28,739	24,553	28,739
	$-2004$	2003	-2004	2003
d. Options for Ordinary Shares - Unlisted (iv)	\$1000	\$,000	\$ OO!	\$000
At beginning of the year
Issued during the year	39
At reporting date	39		39
	No. 1000	OR O		000
At beginning of the year.
Issued during the year.	375		375
At reporting date	375		375

. Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares $\langle$ i) held. Each ordinary share is entitled to one vote.

(ii). Contributing shares were issued during the year ended 30 June 2002 paid to 0.1 cent each. Payment of a further 10 cents each can be made at any time to entitle the holder to one ordinary fully paid share. The Company will not make a call on these shares before 31 December 2005.
(iii) On 3 May 2002 the Company issued 28,750,000 1 cent options to subscribe for one ordinary share each, exercisable at 20 cents on or before 31 January 2005. The options are listed on the ASX.
(iv) On 26 November 2003 the Company issued 1,500,000 unlisted options exercisable at \$1.33 to non-executive directors. A cash, payment of 10.3 cents was made on application for the first of four tranches to be issued over 4 years. The 10.3 cents is nonrefundable but will be included in the exercise price should the options be exercised in the future.
(v) These options were issued under the Employee Option Plan and were exercised at 35 cents each during the year.
(vi) At the end of the year there were 9,750,000 (2003: 3,500,000) unissued ordinary shares in respect of which options were outstanding. 2004 2003

2003

Retained (losses) at the beginning of the financial year. Net profit/(loss) attributable to the members of the parent entity		$(273)$ (1,671) $-17.334$ . $-1.398$ .	(2, 413) 8.618	(1,671) $(742)$ .
Retained profits/(losses) at the end of the financial year.		$-17.061$ (273)	6.205	(2.413)
NOTE 24: CAPITAL AND LEASING COMMITMENTS a. Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements Payable inot later than 1 year	58.		58	-22.
later than 1 year but not later than 5 years	188.	230	188.	230.
	246.	ウちファー	-246	252 -

b. Finance Lease Commitments

Finance and hire purchase rentals for plant and equipment are payable

- as follows: not later than 1 year. later than 1 year but not later than 5 years.	2,005 1,995 $-2.607$ . $\sim$ 812 $\sim$ .
minimum lease payments fess: future lease finance charges	$2.817 -$ 4.602 (157) $(404)$ .
Recognised as a liability	2.660 $-4.198$
Finance and hire purchase liabilities provided for in the financial statements Current `Non-curront	1.871 1.738 - 720 ን 460.

c. Exploration Commitments

In order to maintain current rights of tenure to certain exploration tenements, the Company will be required to spend \$2,075,581 in $2004/5$ .

2,660

4,198

d. Capital Commitments

Total liability

The economic entity has ordered a truck for the Long Nickel Mine operations at a cost of \$1,500,000 which is expected to be delivered and for which cash payment is to be made in August 2004.

NOTES TO THE FINANCIAL STATEMENTS

e ser

FOR THE YEAR ENDED 30 JUNE 2004.

NOTE 25: SEGMENT INFORMATION

The economic entity operated in two industrial or Primary segments, which were the mining and mineral exploration industries. The economic entity operated only in one geographical or Secondary segment which was Australia.

	Measo	Eaploration	imie-secrem rement	.Comgoleanid
	\$1000	\$1000	UHALLOCATED \$1000	\$ 000
Primary Industrial Segment Information 2004
Revenue from external customers	66,737			66,737
Inter-segment revenue
Other revenue		$20 -$	466	486
Total segment revenue	66,737	20	466	67,223
Consolidated entity profit/(loss) after income tax	21,766	(4,43.1)		17,335.
Segment assets	38,585	29,912		68,497.
Segment liabilities	36,608	1,051		37,659.
Depreciation and amortisation expense	3,729	3,744	68	-7,541
Other non-cash expenses	384	1,974	-25	2,383
Primary Industrial Segment Information 2003
Revenue from external customers	24,553			24,553
Inter-segment revenue
Other revenue			96	-96
Total segment revenue	24,553		96.	$-24,649$
Consolidated entity profit/(loss) after income tax	2,740	(1, 342)		1,398.
Segment assets	31,712	20,636.		52,348
Segment liabilities	39,287	705		39.992
Depreciation and amortisation expense	2,440.	1,287	30	3,757
Other non-cash expenses	$-230$	928		-1,158
		.Ecombac Entity		Passent Endors
	12004 \$1000	2003 \$1000	$-2004$ - 51000	2003 I 000
NOTE 26: CASH FLOW INFORMATION
a. Reconciliation of Cash Flow from Operations with Profit from ordinary activities after Income Tax
Profit from ordinary activities after income tax	17,335.	1,383	8,618	(1,757)
Non-cash flows in profit from ordinary activities
Depreciation.	3,738	2,122	68	30
Write-off of capitalised expenditure	1,974,	1,286	1,159	1,286
Amortisation	3,807	1,635
Profit on sale of plant and exploration property	(27)		(20)

		. Goosekad Esiliy 1		: Passent Erint;
	2004 - \$1000	2003 $\sim 3000$ .	12004 \$1000	7003 SUM0
Changes in assets and liabilities
(Increase)/decrease in trade debtors	(7,866)	(5, 415)
(Increase)/decrease in other debtors	(226)
Increase in trade creditors and accruals.	1,560	4.091	(143)
(Increase)/decrease in inventory	30	(41)
(Increase)/decrease in other debtors	(122)		(33)
Increase/(decrease) in provisions	7.866	231	(750)
Cash flows from operations	28.069	$-5.296$ .	-8.899	(373)

b. Non-cash Financing and Investing Activities [1000000000000000000000000000000000000 During the year the economic entity acquired leased plant and equipment with an aggregate value of \$335,508 (2003: \$5,447,372).

.
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NOTE 27: EVENTS SUBSEQUENT TO REPORTING DATE...

s.,

No other matter or circumstance has arisen since the end of the financial year which significantly affected or may significantly affect the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity in future financial years.

NOTE 28: RELATED PARTY TRANSACTIONS

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions with related parties:

		: Passint Exter ECONDAIC ENTRY
	2004.	-2003	2004.	2003
	57Y) (1		xma	1990
a. Director-related Entities
-Consulting fees have been paid to Virtual Genius Pty Ltd, a company.
to which director Mr Bonwick is related.
Consulting fees have been paid to BFP Consultants Pty Ltd, a	131	263
company to which a director of a subsidiary is associated
b. Share Transactions of Directors
Directors and director-related entities hold directly, indirectly or
beneficially as at the reporting date the following equity interests in
the parent entity:
Independence Group NL (i).
ordinary shares	4,403,004	5.113,504	4,403,004	5,113,504.
contributing ordinary shares	2,800,000	4,300,000	2,800,000	4,300,000
options over ordinary shares (listed)	2,395,002	3.995,002	2,395,002	3,995,002
options over ordinary shares (unlisted)	4,050,000	300,000	4,050,000	300,000

(i) Prior year interests included 425,000 ordinary shares, 1,500,000 contributing ordinary shares and 1,375,000 listed options held. by former director Keith Docking. As Mr Docking resigned during the year, these interests are not included in the beneficial. interests held by directors at the end of the current year.

NOTE 28: RELATED PARTY TRANSACTIONS (continued)

c. Share Options

Share options have been issued to directors and executives of the Company. Each share option converts into one ordinary share of Independence Group NL on exercise. Share options issued by Independence Group NL to specified directors and specified executives are as follows:

	u Balarkeu	Gaasmo			Historisko II.a, 1948. Angleski atlantar Magnesia (	$\cdot$ Vested and $\cdot$ : . Options Vested .
	START OF YEAR -	THOURING YEAR		TIDOUARIO MEARI (111) TIMERID OF VEARIL	CAT END OF YEAR [ ]	EXERCEMBLE	Durple year
					No		No.
-Specified directors (v)
$\rightarrow$ R Marston (i) $\rightarrow$		1,000,000.		1,000,000
○ C Bonwick (ii) ○		1,500,000		1,500,000
$\in$ K Ross (ii), (iii) $\in$	300.000	750,000		1,050,000	300,000	$-300,000$	150,000
∵J Christie (i)…		500,000		500,000
Specified executives (v)
$\exists$ Moran (iv)	1.200.000		250.000	950,000	650.000	650.000	600.000
		$1,500,000 \sim 3,750,000 \sim 250,000 \sim 5,000,000 \sim 950,000 \sim$				950.000	750.000

The options were issued to non-executive directors pursuant to resolutions 6 and 7 passed at the 2003 Annual General Meeting. ↔ The options were issued on 26 November 2003. The options vest 25% each 12 month period and are exercisable at \$1.33. The options are only exercisable once payment of 10.3 cents each is received by the Company. This cash payment is required to be made within 30 days of the commencement of each vesting period. The cash payment is non-refundable but forms part of the exercise price should the options eventually be exercised. The cash payment for the first tranche of options was paid by the nonexecutive directors in December 2004. Any options that have not vested are cancelled should the director resign or be removed as a director of the Company. The options expire on 30 June 2008. The fair value of the options at their grant date was 29.2 cents each.

(ii) The options were issued to executive directors pursuant to resolutions 4 and 5 passed at the 2003 Annual General Meeting. The options were issued on 26 November 2003. The options vest 25% each 12 month period and are exercisable at \$1.03. Any options that have not vested are cancelled should the director resign or be removed as a director of the Company. The options expire on 30 June 2008. The fair value of the options at their grant date was 43.8 cents each.

(iii) The 300,000 options issued to the director on 11 September 2002 were issued pursuant to the Company's Employee Option Plan. They are exercisable at 34 cents each. The options expire on 10 September 2005. The fair value of the options at their grant date was 12.4 cents each.
(iv) The options were issued to the executive on 1 October 2002 pursuant to the Company's Employee Option Plan. They are exercisable at 35 cents each and vest 25% each 6 month period from 31 July 2002. Any options that have not vested arecancelled should the executive resign or be removed as an employee of the Company. The options expire on 31 July 2007. The fair value of the options at their grant date was 12.5 cents each.

(v) The options do not entitle the holder to voting or dividend rights. Options may be exercised at any time from the date on which they vest to the date of their expiry.

The difference between the total market value of options issued during a financial year, at the date of issue, and the total amount received from directors and executives, is not recognised in the Financial Statements, except for the purposes of determining directors' and executives' remuneration in note 5 to the Financial Statements. The amounts are disclosed in remuneration in respect of the financial years over which the entitlement was earned.

Consideration received from the cash payment in note 28(c)(i) and consideration received on the exercise of options is recognised in contributed equity. During the year \$38,625 was recognised in contributed equity arising from the cash payment by non-executive directors. During the year \$87,500 was recognised in contributed equity arising from the exercise of executives'. options.

d. Other Related Entities

During the financial year a wholly-owned entity paid a dividend of \$10,000,000 to Independence Group NL. This amount has been included in note 2 to the Financial Statements but has been eliminated on consolidation for the purposes of calculating the profit of the economic entity for the financial year.

	2003 2009

NOTE 29: FOREIGN EXCHANGE AND COMMODITY CONTRACTS
Forward foreign exchange contracts -9.762
Futures commodity contracts (46.450)	(R. N4N)
the property of the company of the company of the company of the company of the company of the company of the

The net fair value of forward foreign exchange contracts of \$9,762,244 is recognised in the Consolidated Statement of Financial Position at 30 June 2004. The net fair value of commodity contracts at 30 June 2004 has not been recognised in the Consolidated Statement of Financial Position. The net fair value of forward foreign exchange contracts and commodity contracts are based on the . exchange rate and commodity prices prevailing at 30 June 2004 and have not been discounted. The contracts relate to 3,636 tonnes of nickel. The contracts expire during 2004/5 (1,896 tonnes at AUD12,188/tonne) and 2005/6 (1,740 tonnes at AUD12,158/tonne).

la provincia de la p

NOTE 30: FINANCIAL INSTRUMENTS

a. Interest Rate Risk.

The Company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates, and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows: a la propincia e al Ta

		WEIGHTED AVERAGE		FLOASING INTEREST.		NON-BOTALOT BLANKO - SITE		Total
	Epactive Immersy Ram.
	2004 11 2003		$2004 -$	2003-	$-2004 -$	2003	1.2004 -	$7.2003\pm$
	지 않는 거지 아	Hr. %.	.\$1000 t.	15000.	1000 F	- \$1000	81000 L	$\sim 5000$
Financial Assets:
⊱Cash…………	$5.08 -$	4.44	$-13,774$	3.984	$-4.596$	. 57.	$-18,370$	$-4.041$
Receivables	5.78	- 5.06	$-514$ and $-1$			$1,001$ 13,677 5.691 14,191		.6.692.
, Investments .					$-$ 564 $-$	$561$ 561		ີ 561 .
. Total Financial Assets			$\cdots$ 6,300 $\cdots$ $(14.288)$ $\cdots$ $(4.985)$ $\cdots$ $(18.837)$ $\cdots$ $(6.309)$ $\cdots$ $(33.125)$ $\cdots$ $(11.294)$
Financial Liabilities:
Payables					6,490	$-4,577$	6,490	$-4.577$
Bank Loans	$7.82$ .	$-7.67$	$10,000$ 13,000				10,000	13,000
Lease Liabilities			$8.08$ $8.12$ $2.660$ $4.198$				2,660.	4.198
Total Financial Liabilities						$12,660$ 17,198

b. Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts of those assets, as disclosed in the Statement of Financial Position and notes to the Financial Statements.

c. Net Fair Values

The net fair values of unlisted investments where there is no organised financial market, have been based on a reasonable estimation of the underlying net assets or discounted cash flows of the investment.

The net fair value of assets and liabilities approximates the carrying value.

No financial assets or financial liabilities are readily traded on organised markets.

Financial assets where the carrying amount exceeds net fair values have not been written down as the economic entity intends. to hold these assets to maturity.

FOR THE YEAR ENDED 30 JUNE 2004

NOTE 30: FINANCIAL INSTRUMENTS (continued)

Aggregate net fair values and carrying amounts of financial assets at balance date:

. Rekka Betskal		Wey Pair Value 11 Careyous Asycles' 1	Nor Page Value
	$-1'000$ IVO .		7000
Financial Assets
Security deposit			.001
Unlisted investments .	- 564
_________	________	$\mathcal{L}{\mathcal{M}{\mathcal{M}{\mathcal{M}{\mathcal{M}{\mathcal{M}}}}}}$ and the contract of the properties of $\mathcal{L}{\mathcal{M}{\mathcal{M}{\mathcal{M}}}^{\mathcal{M}{\mathcal{M}{\mathcal{M}}}}}$
$\cdots$ $1.078$	1.078	1.562.	.562

NOTE 31: COMPANY DETAILS

The registered office and principal place of business of the Company is Suite 9, Level 3 PDM House, 72 Melville Parade, South Perth, Western Australia. The Company changed its name from Independence Gold NL to Independence Group NL pursuant to a special resolution passed at the 2003 Annual General Meeting.

NOTE 32: ECONOMIC DEPENDENCY

Independence Group NL depends on WMC Resources Ltd for a significant volume of revenue. During the year ended 30 June 2004 all sales revenue was sourced from this company. The agreement relating to sales revenue contains provision for the Company to seek alternative revenue providers in the event that WMC Resources Ltd is unable to accept supply of the Company's product due to a force majeure event.

NOTE 33: IMPACT OF ADOPTING AASB EQUIVALENTS TO IASB STANDARDS.

Independence Group NL has commenced transitioning its accounting policies and financial reporting from current Australian. Standards to Australian equivalents of International Financial Reporting Standards (IFRS). The Company has isolated key areas that will be impacted by the transition to IFRS. As Independence Group NL has a 30 June year end, priority has been given to considering the preparation of an opening balance sheet in accordance with AASB equivalents to IFRS as at 1 July 2004. This will form the basis of accounting for Australian equivalents of IFRS, and is required when the Company prepares its first fully IFRS compliant financial. report for the year ended 30 June 2006.

Set out below are the key areas where accounting policies will change and may have an impact on the financial report of the Company. At this stage the Company has not been able to reliably quantify the impacts on the financial report.

Classification of Financial Instruments

Under AASB 139 Financial Instruments: Recognition and Measurement, financial instruments will be required to be classified into one of five categories which will, in turn, determine the accounting treatment of the item. The classifications are loans and receivables (measured at amortised cost), held to maturity (measured at amortised cost), held for trading (measured at fair value with fair value changes charged to net profit or loss), available for sale (measured at fair value with fair value changes taken to equity) and non-trading liabilities (measured at amortised cost). This will result in a change in the current accounting policy that does not classify financial instruments. Current measurement is at amortised cost, with certain derivative financial instruments not recognised on the statement of financial position. The future financial effect of this change in accounting policy is not yet known as the classification and measurement process has not yet been completed.

Impairment of Assets

Under the Australian equivalent to IAS 36 Impairment of Assets, the recoverable amount of an asset is determined as the higher of net selling price and value in use. This will result in a change in the economic entity's current accounting policy which determines the recoverable amount of an asset on the basis of undiscounted cash flows. Under the new policy it is possible that impairment of assets will be recognised sooner and that the amount of write-downs will be greater. It is not expected that there will be any material impact as a result of the adoption of this standard.

Share Based Payments

Under AASB 2 Share based Payments, the Company will be required to determine the fair value of options issued to employees as remuneration and recognise an expense in the Statement of Financial Performance. The standard will apply to all share-based payments issued after 7 November 2002 which have not vested as at 1 January 2005. Reliable estimation of the future financial effects of this change in accounting policy is impraticable as the details of future equity based remuneration plans are unknown.

Income Taxes

Under the Australian equivalent to IAS 12 Income Taxes, the Company will be required to use a balance sheet liability method which focuses on the tax effects of transactions and other events that affect amounts recognised in either the Statement of Financial Position or a tax-based balance sheet. It is not expected that there will be any material impact as a result of the adoption of this standard.

Exploration Expenditure

There is not yet an approved IFRS equivalent to AASB 1022 Accounting for Extractive Industries. If a standard is introduced which changes the current standard, this may have an as yet unknown effect on the Company's financial position.

DIRECTORS' DECLARATION

The directors of the company declare that:

1. the financial statements and notes, as set out on pages 48 to 70.
a. : comply with Accounting Standards and the Corporations Act 2001; and -

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b. give a true and fair view of the financial position as at 30 June 2004 and performance for the year ended on that date of the company and economic entity; ...
1. Thi the directors' opinion there are reasonable grounds to believe that the economic entity 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.

låan

R J Marston Chairman Dated this 31st day of August 2004

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF INDEPENDENCE GROUP NL

Chartered Accountants S Advisers.

Level 8, 296 St George's Terrace Perth WA 6000 PO Box 7426 Cloisters Square Perth WA 6850 Tel: (61.8) 9360 4200 [ Fax: (61.8) 9481 2524 - -Email: [email protected] www.bdo.com.as

Scope

The Financial Report and Directors' Responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for both Independence Group NL (the company) and the consolidated entity, for the year ended 30 June 2004. The consolidated entity comprises both the company and the entities it controlled during that year.

The directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Audit Approach

We have conducted an independent audit in order to express an opinion to the members of the company. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgment, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, including compliance with Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the company's and the consolidated entity's financial position, and of their performance as represented by the results of their operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

e litexamining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and

... assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant

accounting estimates made by the directors.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

Audit Opinion

In our opinion, the financial report of Independence Group NL is in accordance with:

a. the Corporations Act 2001, including:
giving a true and fair view of the company's and consolidated entity's financial position as at 30 June 2004 and of its performance for the year ended on that date; and
ii. Tcomplying with Accounting Standards in Australia and the Corporations Regulations 2001; and

b. other mandatory financial reporting requirements in Australia.

BDO

ì.

Chartered Accountants

&F Brayshaw 31 August 2004 Perth, Western Australia

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

The following additional information not shown elsewhere in this report is required by the Australian Stock Exchange Ltd in respect of listed public companies only. This information is current as at 14 September 2004. .
.
Shareholding

.
a. Distribution of shareholders as at 14 September 2004:
CARGORY (SEE OF HOLDING)	Xorary Smaes	usvaa Omiana
$1 - 1,000$	ୀ60
$\sim$ 1,001 $\pm$ 5,000 $\sim$	-904.	140 .
$5,001 - 10,000$	699	-102 -
$10,001 - 100,000$ .		- 229.
$100,001 -$ and over
	$7702 -$

b. The number of shareholders holding less than a marketable parcel of fully paid ordinary shares is 18.

c. There were no substantial shareholders listed in the parent entity's register as at 14 September 2004.

d. Voting Rights A. Martin Martin Martin The voting rights of each class of share are as follows:-

$\mathbf{1}$

Fully Paid Ordinary Shares - one vote per share held. I

Partly Paid Contributing Shares - a fraction of one vote equal to the proportion which the amount paid on each share bears to the total amounts paid and payable on that share.

Options $\pm$ no voting rights are attached to unexercised options.

The name of the company secretary is Mrs Kelly Ross. Mrs Ross holds a Bachelor of Business in Accounting from Curtin University and the designation CPA from the Australian Society of Certified Practising Accountants,
The address of the principal registered office in Australia is Suite 9 PDM House, 72 Melville Parade, South Perth, Western. Australia, Telephone (08) 9367 2755. Child Marshall Press, 2014
The Register of securities is held at Security Transfer Registrars Pty Ltd at 770 Canning Highway, Applecross, Western Australia.
There is no current on-market buy-back of the Company's securities.
Stock Exchange Listing

Quotation has been granted for 77,883,225 ordinary shares and 20,206,775 options of the company on all Member Exchanges of the Australian Stock Exchange Limited. Unquoted securities are detailed in Note 8 below.

[10] 20 Largest Holders of Ordinary Shares as at 14 September 2004 [11]

Nassi	~Niksek of Croslary	yb Hillo of Issaia.
	Fully Paid Shares Held,	Dederary Cafilel
1. ANZ Nominees Limited	3,342,110.	4.29
2. J.P. Morgan Nominees Australia Limited	2,915,135	3.74
3. Equity Trustees Limited	2,884,860	3.70
4. Forbar Custodians Limited	2,692,300	.3.46
5. National Nominees Limited	2,459,200	-3.16
6. Independence Mining Exploration NL	2,000,000	2.57
Jeffrey Christopher Schiller	1,995,002	2.56
8. Virtual Genius Pty Ltd	1,978,504	2.54
9. RBC Global Services Australia Nominees Pty Ltd	1,470,488	$-1.89$
10. Citicorp Nominees Pty Limited	1,126,278	$-1.45$
11. Queensland Investment Corporation	1,112,114	1.43
12. Health Super Pty Ltd	1,018,400	1.31.
13. Westpac Custodian Nominees Limited	$-898,423$	1.15
14. CSFB Fourth Nominees Pty Ltd	-717.709	.92
15. Citicorp Nominees Pty Limited (452 Aust Share A/c)	-702,409	:90
16. Paull Parker	$-685,000$	.88
17. Yarandi Investments Pty Ltd	$-561,500$	.72.
18. Neogold Enterprises Pty Ltd	-550,000
19. Fortis Clearing Nominees Pty Ltd	546,593	70.
20. Cogent Nominees Pty Limited	533,500	.68
	30,189,525	38.76

additional information for LISTED PUBLIC COMPANIES

(ii) 20 Largest Quoted Listed Option Holders as at 14 September 2004

Nage	NUMBER OF OPTIONS HELD	% Help of Listed Opposis.
1. Yarandi Investments Pty Ltd -	1,727,352	$-7.79.$
2. Nattai Ptv Ltd ~	1,010,000	4.55
3. Independence Mining Exploration NL	1,000,000.	:4.51
4. ANZ Nominees Limited	977,000	4.41
5. Bradleys Polaris Pty Ltd	803,000	-3.62
6. Forbar Custodians Limited	660,600	2.98
.7. Goldsearch Limited	500,000	$-2.25$
8. Jayare Nominees Pty Ltd	444,199	-2.00.
9. Ross William Anderson	375,568	1.69
10. Jeffrey Christopher Schiller	372,501	1.68
11. Commodity Traders NZ Limited	330,000	1.49
12. Peto Ptv Ltd	:316,500.	$-1.43$
13. CSFB Fourth Nominees Pty Ltd	$-315,320$ .	$-1.42$
14. Richard Davis	308,000	.39.
15. CRX Investments Pty Limited	300.000	1.35
16. Virtual Genius Pty Ltd	277,502	1.25.
.17. J.P.Morgan Nominees Australia Limited.	266,000	1.20
18 Karen Alana Schiller	257,744	$-1.16$
49. Finance Associates Pty Ltd.	240,679	1.09.
20. Daradine Pty Ltd	225,000	1.01
. Parangan kata kata kata karang pag-akan kata kata kata pasa p	10,706,965	48.27 .

Unquoted Securities

The following securities have been issued and the Company has not requested their quotation by the Australian Stock Exchange:-

(i) Partly Paid Contributing Shares

sko jadiv jeho bida	Altanea of Ascendiec	19% or Securates on Issue	ⁱⁿ Nuvaser of Holders
Virtual Genius Pty Ltd	1.500.000
K Ross
Unrelated parties	4,210,000
********	.010.000

Contributing shares are partly paid ordinary shares paid to 0.1 cent each with 10 cents unpaid.

Since the end of the financial year 300,000 contributing shares were fully paid up and converted to ordinary shares. This transaction has been reflected in the total number of securities shown above.

Contributing shares represent 100% of the total partly paid shares on issue. No call will be made on these shares until 31 December 2005.

(ii) Unlisted Options

(a) On 11 September 2002, 300,000 unlisted options exercisable at 34 cents were issued to a party related to director Kelly Ross.

The options were issued pursuant to the company's Employee Option Plan. The options expire on 10 September 2005.

(b) On 17 September 2002, the Company issued 2,000,000 unlisted options exercisable at 45 cents to Bank of Western Australia Ltd, pursuant to the financing arrangement for the purchase of the Long/Victor Nickel Mine by Lightning Nickel Pty Ltd. The issue was approved at a general meeting held on 23 August 2002. The options were sold by Bank of Western Australia Ltd to unrelated entities in March 2004 and are due to expire on 30 June 2006.

(c) On 1 October 2002, the Company issued 1,200,000 unlisted options exercisable at 35 cents to a party related to Timothy Moran, a director of subsidiary Lightning Nickel Pty Ltd. The options were issued pursuant to the company's Employee Option Plan and the issue was approved at a general meeting held on 23 August 2002. 250,000 of these options were exercised during the year ending 30 June 2004. The remaining 950,000 options expire on 31 July 2007.

(d) On 24 September 2003, the Company issued 1,300,000 unlisted options exercisable at 96 cents to employees. A further 150,000 were issued on 4 February 2004. The options were issued pursuant to the company's Employee Option Plan and expire. on 30 September 2008.

(e) On 26 November 2003, the Company issued 1,000,000 unlisted options to director Rod Marston and 500,000 to director John Christie. The options are exercisable at \$1.33 with 10.3 cents payable on allotment. The options were issued pursuant to resolutions 6 and 7 passed at the 2003 Annual General Meeting. The options expire on 30 June 2008.

(f) On 26 November 2003, the Company issued 1,500,000 unlisted options to director Christopher Bonwick and 750,000 to director Kelly Ross. The options are exercisable at \$1.03. The options were issued pursuant to resolutions 4 and 5 passed at the 2003 Annual General Meeting. The options expire on 30 June 2008. Conservation

(g) On 31 March 2004, the Company issued 550,000 unlisted options exercisable at \$1.16 to employees. The options were issued pursuant to the company's Employee Option Plan and expire on 30 June 2009.

(h) On 31 March 2004, the Company issued 750,000 unlisted options exercisable at \$1.16 to employees. The options expire on 30 June 2009.

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

Following are the details of the tenements comprising the projects of Independence Group NL (IG):
OPERATIONS
Tangen ¹ . L Grant Date Express Date -	Ara	$\sim$ Receppean Fouriek (%) { $\sim$	$\left\langle \mathrm{AG} \right\rangle$ batters ( $\left\langle \mathrm{M} \right\rangle$	12C (S)
Long Complex
M15/158 $G - 01/01/67$ 31/12/08	1.2.	Lightning Nickel Pty Ltd (100,00)	100.00 :	$-12,100$
M15/159 $G - 01/01/67$ 31/12/08	$-1.2$	Lightning Nickel Pty Ltd (100.00)	.100.00	$-12,200$
M15/160 $G - 01/01/67$ 31/12/08	1.2	Eightning Nickel Pty Ltd (100.00)	100.00	12,200
Total – Long Complex	36			\$36,500

³-M15/158, M15/159 and M15/160 were granted pursuant to, and are currently subject to the provisions of, the Nickel Refinery (Western Mining Corporation Limited) Agreement Act 1968 (WA). Caveats have been lodged by St Ives Gold Mining Pty Ltd against withe granted tenements M15/158, M15/159 and M15/160, INCONSTRATING AND CONTROL IN A SERVICE STRATEGY AND $\mathbb{Z}$

Part of the Long Complex is located on East Location 48, one of a number of freehold grants created in the Eastern Goldfields in the 1890's. The nature of these freehold grants confers a number of unique rights upon the owners and/or leaseholders of the property, including mineral ownership rights, and exemptions from rent, EC and royalty payments. Native title has been extinguished on East Location 48. IG has access to an approximate 1.5 square kilometre area within East Location 48, as part of a lease arrangement. IG. has lodged a caveat over the area to protect its interests.

Bungsur J	r Grant or	-Éxpixy Date ,	Assa	Registered Holder og Applicaet (%) -	$IG$ $k$ ggas $\tau$ $(\%)$	EC (S)
	Aprelamen Date		(30 KA)
Dalwallinu Project
E70/2581	A - 22/04/03	⊹n/a	222.0	IG (100.00)	100.00	∶n/al
E70/2582	A-22/04/03	√na	222.0	IG (100.00)	100.00	n/a
E70/2583	A - 22/04/03	n/a	222.0	IG (100.00)	100.00	n/a
E70/2635	$A - 11/11/03$	·n/a	190.2	IG (100.00)	100.00	-n/a
P70/1481	A – 05/07/04	n/a	0.6	IG (100.00)	100.00	n/a
Sub-total			856.8			'n/a
Gabanintha Project
P51/2484	$G - 06/08/04$	n/a	1.8	IG (100.00)	100.00	7,280
P51/2485	$G - 06/08/04$	n/a	1.9	JG (100.00).	100.00	7,640
P51/2486	$G - 06/08/04$	n/a	1.8	IG (100.00)	100.00	7.000
P51/2487	$G - 06/08/04$	n/a	2.0	IG (100.00)	$-100.00$	8,000
P51/2488	$G - 06/08/04$	n/a	1.5	IG (100.00)	100.00	5,960
P51/2489	$G - 06/08/04$	n/a	.1.0	IG (100.00)	100.00	4,120
P51/2490	G-06/08/04	π/a	2.0	IG (100.00).	100,00	8,000
P51/2491	$G - 06/08/04$	'Na	2.0	IG (100.00)	100.00	8.000
P51/2492	$G = 06/08/04$ .	∙n/a	2.0	IG (100.00)	100.00	7,920
ELA51/1077	A - 28/07/04	·π/a	12.7	IG (100.00)	100.00	n/a
Sub-total			28.7			\$63,920
Jeerinah Project ¹
E47/1072	$G - 05/10/01$	04/10/06	,222.3	IG (100.00)	100.00	63,000
E47/1073	$G - 18/09/01$	17/09/06	222.3	IG(100.00)	100.00	63,000
Sub-total			444.6			\$126,000

INDEPENDENCE GROUP 100% PROJECTS

ADDITIONAL INFORMATION FOR LISTED

and the second control of the second control of the second control of the second control of the second control of the second control of the second control of the second control of the second control of the second control o

, and a complete the complete the second complete the second complete the second complete the second complete

Franker F	"Grant of Americation J., Expert Date		Area	Registered Housek on Applement (%)	$(G \text{ hours})$ $(\%)$ .	$EC \langle \$$
Murrin South Project	Assi		(SQ KSA).

P39/4286 P39/4287	A-17/06/03 A-17/06/03	n/a n/a	1,2 -1.2	IG (100.00) IG (100.00)	100.00 100.00	n/a .n/a
P39/4288	A-17/06/03	n/a	2,0	IG (100.00)	100.00	n/a
P39/4289	A-17/06/03	ņ/a	2.0	IG (100.00).	100.00	ņ/a
P39/4290	A-17/06/03	n/a	2.0	IG (100.00)	100.00	n/a
P39/4291	A - 17/06/03	n/a	2.0.	.IG (100.00).	100.00	n/a
P39/4292	A-17/06/03	∙n/a	1.5	IG (100.00)	100.00	n/a
P39/4293	$A - 17/06/03$	ņ/a	2.0	IG (100.00)	100.00	n/a
P39/4301	A-19/08/03	n/a	1.2	IG (100.00)	100.00	n/a
P39/4302	A-19/08/03	ņ/a	1.2	IG (100.00)	100.00	'n/a
P39/4303	A-19/08/03	n/a	1.2	IG (100.00)	100.00	n/a
P39/4304	A-19/08/03	·n/a	1.2	IG (100.00)	100.00	.n/a
P39/4305	A-19/08/03	n/a	1.3	IG (100.00)	100.00	n/a
Sub-total			20.0			n/a
Wackilina Project ¹
E47/1204	$G - 23/07/03$	22/07/08	222.0	IG (100.00)	100.00	63,000
E47/1205	$G - 23/07/03$	22/07/08	222.0,	IG (100.00)	100.00	59,400
ELA47/1245	$G - 03/12/03$	·n/a	222.0	IG (100.00)	100.00	63,000
ELA47/1246	$G - 03/12/03$	·n/a	211.0	IG (100.00)	100.00	60,300
ELA47/1295	A-02/09/03	n/a	222.0	IG (100.00)	100.00	n/a
Sub-total			1,099.0			\$245,700
Brandy Hill South
E59/1156.	$A - 18/03/04$	n/a	98.3	IG (100.00)	100.00	ņ/a
P59/1695	A – 18/06/04	n/a	0.4	IG (100.00)	100.00	n/a
Sub-total			98.7			n/a
Hyden
E70/2689	$A - 20/05/04$	n/a	126.8	IG (100.00)	100.00	n/a
E70/2690	A-20/05/04	n/a	222.0	IG (100.00)	100.00	n/a
Sub-total			348.8			·n/a

Royal North
E38/1626	$A - 22/10/03$	n/a	-53.9	IG (100.00)	100.00	√n/a
Quondong Well
E38/1625	$A - 22/10/03$	n/a	177.5	IG (100,00)	100.00	.n/a

	Total - Independence Group 100% Projects		3,128.0			\$435,620
				Poondano Exploration Pty Ltd has the exclusive rights to explore for and mine iron ore on these tenements.
JOINT VENTURE PROJECTS
Chesterfield Joint Venture
Temment ^{1, 1}	- Graaf ok	Exmer Date	Agea	REQUIRED HOLDER OR APPLICABLE (%)?	KG INTEREST (%	EC.(5)
	Aprication Date		(50 KW)
E51/830	$G - 13/06/00$	12/06/05	42.0	1G(51.00) & St Barbara (49.00)	Diluting to 20.0	20,000
E51/917	$G - 28/05/01$	27/05/06	144.6	1G(51.00) & St Barbara (49.00)	Diluting to 20.0	43,200
E51/1035	$A - 19/12/02$	. n/a	45.0 .	$-1G(100.00)$	Diluting to 20.0	'n/a
M51/270	$G - 16/12/88$	15/12/09		$0.3$ : $1G(51.00)$ & St Barbara (49.00)	Diluting to 20.0	10,000
M51/353	$-6 + 27/03/90$	26/03/11	1.2	IG(51.00) & St Barbara (49.00)	Diluting to 20.0	12,000
M51/451	$G - 11/11/92$	10/11/13		0.2 3G(51.00) & St Barbara (49.00)	Diluting to 20.0	10,000
M51/6504	$A - 30/01/97$	n/a		2.0 IG(51.00) & St Barbara (49.00)	Diluting to 20.0	n/a
P51/1441 ⁴	$G - 10/02/93$	09/02/95		2.0 IG(51.00) & St Barbara (49.00)	Diluting to 20.0	8,000
E51/1069	A-20/05/04	n/a	9.5	IG(51.00) & St Barbara (49.00)	Diluting to 20.0	n/a
Total - Chesterfield Joint Venture			246.8			\$103,200

: Caveats have been lodged by IG against the granted tenements E51/830, E51/917, M51/270, M51/353, M51/451 and P51/1441. Aurex Consolidated Limited has the right to earn up to a 60% interest in the tenements by spending \$400,000 on exploration prior to 30 June 2007, paying IG and St Barbara, \$250,000 each and sole funding exploration to completion of a pre-feasibility study into. mining operations at the tenement.

St Barbara refers to St. Barbara Mines Limited.

M51/650 is a mining lease application for conversion of existing granted tenement P51/1441. Underlying tenements can continue to be explored until such time as M51/650 is granted. As such, only the existing tenement area and EC for P51/1441 have been included in the totals for the Chesterfield Project (to avoid double counting).

Dolphin Joint Venture

Millidie Project^*

$\cdot$

Isustasidi (
	THA WAY ASTON DUTE IN THE RELEASED HIS LOCAL AND INVESTIGATION.

		$\sim$ $\sim$ $G = 23/02/04$ $\sim$ $22/02/09$ $\sim$ $\sim$ 216.8 $\sim$ Dolphin (10.00) & IG (90.00) $\sim$ $\sim$ $\sim$
F52/1530		$G - 21/02/02$ - $20/02/07$ and $216.6$ a Doiphin (10.00) & IG (90.00) and $90.00$
-Total - Dolphin Joint Venture		and support the american support to a member of the contract of the superior of the support of the support

¹ Peak Hill Manganese Pty Ltd has exclusive rights to explore for manganese on the tenement and is responsible for meeting EC and managing all native title issues with respect to the Millidie Project.

Goldsworthy Joint Venture

$\lceil \lg$ (greater $\langle \% \rangle$ ) Resigned Holder or Aprix, an (%) 3 - EXPRY DATE Temaen i ¹ Grant or Arla	$\mathbb{K} \otimes \mathbb{S}$ .
Agricaton Date , (so 102) .
E45/2285 $G - 08/05/02$ 07/05/07 Revesco (100.00) 80.00 39.0-	20.000
E45/2286 Revesco (100.00). G – 08/05/02 $-80.00$ 07/05/07 $-41.0$ .	20.000
E45/2380 $G - 24/10/03$ 23/10/08 IG(100.00) 80.00 225.4	63.000
E45/2381. G – 24/10/03 80.00 23/10/08 -225.4 IG (100.00)	63,000
ELA45/2537 A – 01/09/03 IG (100.00) 192.0 . -80.00- n/a	-n/a
ELA45/2538 A-01/09/03 IG (100.00) 224.0 .80.00 n/a	n/a
ELA45/2539 IG(100.00) A – 01/09/03 80.00 224.0 n/a	n/a
ELA45/2540 A – 01/09/03 IG (100.00) 80.00 -224.0 n/a	n/a
Jotal - Goldsworthy Ioint Venture 1. 304.8 \$166.000.

Revesco refers to Revesco Group Limited.

Independence Group NL has the right to earn up to an 80% interest in the tenement by free carrying Revesco until completion of a pre-feasibility study.

Musgrave Joint Venture

-Teational $^{18}$ .	- Grant cr	EXPIRY DATE	- Assa	Reastered Holder of Applicant (%) i	$\exists G$ hosses $(\%)$	$\sim$ (c) $\langle \text{\$} \rangle$ .
	Aphleandh Dail		(SQ X}A) .
SA tenements
EL2910?	$G - 02/04/02$	01/04/07	.673.0	Goldsearch (100,00)	Earning 51.00	190,000
∘EL3031 ª	$G = 17/10/02$	17/10/07	469.0	Goldsearch (100.00)	Earning 51.00	75,000
ELA198/96	A-16/05/96	.n/a .	714.0.	Goldsearch (100.00) 4	Earning 51.00	∵n/a
ELA260/96	$A - 20/06/96$	n/a	519.0	.Goldsearch (100.00) ⁴	Earning 51.00	n/a
ELA262/96	$A - 20/06/96$	.n/a	463.0	Goldsearch (100.00) ⁴	Earning 51.00	n/a .
ELA336/96	A-02/08/96	n/a		653.0 Miltonpak Pty Limited (100.00)	Earning 51.00	n/a-
ELA337/96	A-02/08/96	n/a		1,854.0 Miltonpak Pty Limited (100.00)	Earning 51.00	'n/a
ELA338/96	A-02/08/96	n/a		620.0 Miltonpak Pty Limited (100.00)	Earning 51.00	.n/a .
ELA339/96	A-02/08/96	n/a		-1,301.0 Miltonpak Pty Limited (100.00)	Earning 51.00	n/a
ELA340/96	A - 02/08/96	n/a		2,198.0 Goldsearch (100.00)	Earning 51.00	n/a
ELA341/96	A-02/08/96	∖n/a .	1,230.0	:Goldsearch (100.00) -	Earning 51.00.	n/a .
ELA342/96	A-02/08/96	n/a -	12,136.0	Goldsearch (100.00)	Earning 51.00	n/a
ELA343/96	A - 02/08/96	∵n/a∴	$1.906.0$	Goldsearch (100.00)	-Earning 51.00	$n/a$ .
ELA534/96	A-05/11/96	n/a -		1,783.0 Caytale Pty Limited (100.00)	Earning 51.00	n/a
ELA35/99	A-22/03/99	∙n/a ⊹	$692.0 -$	Goldsearch (100.00)	Earning 51.00	n/a
Sub-total			18.211.0			\$265,000

ritur.

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES.

$\left\langle \cdot \right\rangle_{\mathcal{O}{\mathcal{O}{\mathcal{O}{\mathcal{O}{\mathcal{O}}}}} \times \mathcal{O}{\mathcal{O}{\mathcal{O}{\mathcal{O}{\mathcal{O}}}}} \times \mathcal{O}{\mathcal{O}{\mathcal{O}{\mathcal{O}{\mathcal{O}}}}} \times 1}$

l eksplor

ra da a

→ Gawantowi + Termen	. EXPIRY DAYS Area	-Redsterro, Holder of Amerikat (%) E	EC (\$) . IG Invested (%).
Amsonton Date NT tenements	(se av)
EL5701	$G - 17/02/04$ 26/02/10 1.559.0	$-$ AL (100.00) $^{\circ}$ .	- Earning 38.25 50,000
∵EL5703 - $G - 17/02/04$	$26/02/10$ 1.559.0	AL (100.00). ⁶	- Earning 38.25 -50,000
EL9407.5 $G - 13/12/01$	12/12/07 - 1,225.0	Chiliill Pty Limited (100.00)	Earning 51.00 35,000
ELA23783 A - 24/08/87	-193 -n/a :	AL (100.00) ⁶ .	– Earning 38.25 . in/a
$ELA23785$ $^{7}$ A - 24/08/87 ·	386.4. 'n/a	AL (100.00) ⁶ .	Earning 38.25 n/a
.ELA23786 ^? A - 24/08/87	$-1.181.7$ n/a n	$\Delta$ L (100.00) $^{\circ}$	Earning 38.25 n/a
Sub-total	5.930.4		\$135,000
Total - Musgrave Joint Venture	24,141.4		\$400,000

$\hat{\gamma}_1$ is an exp

an an B

.
Réferències

ð. Goldsearch refers to Goldsearch Limited; A refers to James Allender, H refers to Anthony Hosking and L refers to Anthony Le Brun (in combinations thereof). the production of the control of the control of the control of the control of the control of the control of th
Section 2012 2022 2022 2022 2022 2022 2022 202

² - Formerly EL2245.

けいけいけいけいけいけい

. . .

³ Formerly EL2435.

$\gamma^4$ Goldsearch now hold a 100% interest in the tenement following confirmation from Primary Industries and Resources SA. ga menggunakan ing Kalifornia
Kanggunakan menggunakan
Kanggunakan menggunakan

erna i la

$\sim$ that Tjuiangnu Pty Ltd has been removed from the application. $\tilde{ }$

5 Caveats have been lodged by IG and AL against granted tenement EL9407.

⁶ : AHL's interests in the tenement are in equal proportions. Goldsearch has entered into a Farm-in and Joint Venture Agreement These tenements are re-pegged partial areas of EL5701 & 5703 and have been vetoed until 02/01/08. with AHL, dated 8 April 1998, to acquire up to a 75% interest in the tenement.

a Independence can earn a 51% interest in the relative interest of Goldsearch by keeping the tenements in good standing for at

least two years and by spending \$2 million on exploration over an unlimited period.

Tropicana East Joint Venture

Teması	GRANCOR -	Expan Oggi	-Begisterio Holder or Applicant (%) ¹ $16 \text{ km}$ and $\left(\frac{6}{6}\right)$ ∙EC (\$). Assa
	Appleanors Dan		(sg na).
E39/951	$G - 21/08/02$	20/08/07	209.5 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 . 63,000
E39/952	$G - 21/08/02$	20/08/07	209.6 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 61,200
E39/954	$G - 21/08/02$	20/08/07	209.9 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 63,000
E39/956	$G - 21/08/02$	20/08/07	225.4 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 63,000
ELA39/1008	$A - 01/05/03$	∶n/a .	209.0 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 n/a
ELA39/1009	$A - 01/05/03$	n/a	209.0 Diluting to 30.0 Southstar (25.00) & IG (75.00) ² n/a
ELA39/1010	$A - 01/05/03$	n/a	209.0 Diluting to 30.0 Southstar (25.00) & IG (75.00) ² :n/a
ELA39/1037	$-A - 28/07/03$	n/a	459.0 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 ∙n/a
ELA39/1038	$-A - 28/07/03$	n/a	210.0 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 n/a
ELA39/1040	$A - 28/07/03$	n/a	210.0 Diluting to 30.0 Southstar (25.00) & IG (75.00) ² n/a
ELA39/1041	$A - 28/07/03$	n/a	210.0 Southstar (25.00) & IG (75.00) ² Diluting to 30.0 √n/a
ELA39/1042	$A - 28/07/03$	n/a	Southstar (25.00) & IG (75.00) ² 129.0 Diluting to 30.0 n/a
ELA39/1043	$A - 28/07/03$	n/a	Southstar (25.00) & IG (75.00) ² Diluting to 30.0 153.0 :n/a
ELA39/1044	$A - 31/07/03$	n/a	Southstar (25.00) & IG (75.00). ² Diluting to 30.0 ·n/a 6.1
ELA28/1354	$A - 04/07/03$	n/a.	206.8 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 n/a
ELA28/1355	$A - 04/07/03$	n/a.	159.3 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 ņ/a
ELA28/1356	$A - 04/07/03$	-n/a	AngloGold Australia Limited (100.00) ³ 206.3 Diluting to 30.0 n/a
ELA28/1357	$A - 04/07/03$	n/a	AngloGold Australia Limited (100.00) ³ Diluting to 30.0 206.1 n/a
ELA28/1358	$A - 04/07/03$	n/a	206.0 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 'n/a
ELA28/1359	$A - 04/07/03$	n/a	205.8 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 .n/a
ELA28/1360	$A - 04/07/03$	n/a.	$205.7 -$ AngloGold Australia Limited (100.00) ³ Diluting to 30.0 n/a
ELA28/1361	$A - 04/07/03$	n/a	AngloGold Australia Limited (100.00) ³ 205.5 Diluting to 30.0 .n/a
ELA28/1362	$A - 04/07/03$	n/a	Diluting to 30.0 187.8 AngloGold Australia Limited (100.00) ³ 'n/a
ELA28/1363 ELA28/1364	$A - 04/07/03$	.n/a	Diluting to 30.0 206.8 AngloGold Australia Limited (100.00) ³ n/a
ELA28/1365	$A - 04/07/03$ $A - 04/07/03$	n/a n/a	206.8 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 - .n/a AngloGold Australia Limited (100.00) ³ Diluting to 30.0 207.4 n/a
ELA28/1366	$A - 04/07/03$	n/a.	207.0 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 n/a
ELA28/1367	$A - 04/07/03$	n/a	207.7 AngloGold Australia Limited (100.00) ³ Diluting to 30.0 ∙n/a
ELA28/1369	$A - 04/07/03$	n/a.	AngloGold Australia Limited (100.00) ³ Diluting to 30.0 207.6 .n/a
ELA28/1370	$A - 04/07/03$	n/a	AngloGold Australia Limited (100.00) ³ Diluting to 30.0 207.4 n/a
ELA28/1371	$A - 04/07/03$	n/a	AngloGold Australia Limited (100.00) ³ Diluting to 30.0 207.1 ņ/a
ELA28/1372	$A - 04/07/03$	n/a	Diluting to 30.0 207.6 AngloGold Australia Limited (100.00) ³ ∙n/a
ELA28/1373.	$A - 04/07/03$	n/a	AngloGold Australia Limited (100.00)? Diluting to 30.0 207.3. n/a

Teagan	Grant or	Expary Daily	Ama	Registrado Holder de Applicado (%) ⁾ - ·	$\sim$ 1G britates (%).	EC. (\$)
	Appelagion Date		(50 KM)
ELA28/1374	A - 04/07/03	n/a	207.1	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	∴n/a
ELA28/1502	A - 13/08/04	n/a	207.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	·n/a
ELA38/1588	$A + 15/05/03$	n/a	209.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	`n/a
E39/1012	$G - 18/05/04$	17/05/09	209.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	.63,000
E39/1013	$G - 18/05/04$	17/05/09	209.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	63,000
ELA39/1016	$A - 16/06/03$	$n/a$ .	$\therefore$ 3.2	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	∴n/a
ELA39/1028	$A - 04/07/03$	n/a	208.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	n/a
ELA39/1029	$A - 04/07/03$	n/a	208.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	n/a
ELA39/1030	$A - 04/07/03$	n/a	89.2	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	∽n∕a
ELA39/1097	A-30/06/04	n/a	207.0	AngloGold Australia Limited (100.00) ³	Diluting to 30.0	n/a
Total - Tropicana East Joint Venture			8,177.0			\$376,200
Mt Ross Joint Venture
E37/785	$A - 26/03/04$ .	:n/a	25.4	IG (100.00)	100.0	n/a
P37/6682	A-29/03/04.	n/a	1.8	IG (100.00)	100.0	n/a
P37/6683	A-29/03/04	n/a	-1.8	IG (100.00)	$-100.0$	n/a
P37/6684	$A - 29/03/04$	n/a	1.8	IG (100.00)	100.0	n/a
Total - Mt Ross			30.8			n/a
Poison Hills Joint Venture 4
E51/1083	$A - 17/08/04$	n/a	142.7	IG (100.00)	100.0	n/a
Total - Poison Hills Joint Venture			142.7			n/a
Mt Tate Joint Venture ⁵
E53/1040	$A - 28/03/02$	n/a	38.0	Cullen (100.00)	Earning 70% Ni	n/a
P53/1154	A -- 28/03/02	n/a	-1.8	Cullen (100.00)	Earning 70% Ni	n/a
E53/1096	$A - 11/07/03$	n/a	60.2	Cullen (100.00)	Earning 70% Ni	n/a
Total - Mt Tate Joint Venture			100.0			n/a
Irwin Bore Joint Venture ⁵
E53/403	$G - 09/11/92$	08/11/07	34.9	Cullen (90.00)& Revesco (10.0)	Earning 65% Ni	20,000
M53/494	$A - 11/07/96$	≅n/a .	10.0	Cullen (90.00)& Revesco (10.0)	Earning 65% Ni	∙n/a
M53/495	$A - 11/07/96$	n/a	-9,8	Cullen (90.00)& Revesco (10.0) :	Earning 65% Ni	n/a
M53/713	$A - 29/10/97$	n/a.	9.2	Cullen (90.00)& Revesco.(10.0)	Earning 65% Ni	n/a
M53/878	A - 17/11/99	.n/a	$-3.1$	Revesco (100.0)	Earning 65% Ni	n/a
E53/981	A-20/04/01	n/a	101.4	Revesco (100.0)	Earning 65% Ni	ņ/a
E53/925	A-02/06/00	n/a	$-22.2$	Revesco (100.0)	Earning 65% Ni	n/a
Total - Irwin Bore Joint Venture		190.6			20,000

$\begin{array}{l} \mathcal{U}{\mathcal{M}{\mathcal{M}{\mathcal{M}}}}(z)\ \mathcal{U}{\mathcal{M}{\mathcal{M}{\mathcal{M}}}}(z)\ \end{array}$ i
Tin

$\sim \epsilon_{\rm cr}^{-1}$ $\mathbb{R}_{\mathbb{Z}_2}$

W. i de estas
Especies estas estas

additional information for listed PUBLIC COMPANIES

Temaan	GRANT OR	Express Date	' Àmà	Весицемо Ноция он Анчислии (%) В	IG knass (%)	$EC$ $\langle \$ \rangle$ .
	Amer, syran, Daye		(se ka)
Duketon Joint Venture ⁵
E38/1043	$G - 30/01/98$	29/01/08	3.2	Wedgetail Exploration NL (100.00)	Earning 70% Ni	ņ/a
E38/1471	$G - 28/07/03$	27/07/08	222.0	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1502	$G - 23/06/04$	22/06/09	$-60.2$	South Boulder (100.00)	Earning 70% Ni	n/a
L38/33	$G - 20/12/89$	19/12/10	0.0	Sub-Sahara Resources NL (100.00)	Earning 70% Ni	n/a
M38/330	$G - 27/11/91$	26/11/12	15	Wedgetail Exploration NL (100,00)	Earning 70% Ni	.n/a .
M38/331	$G + 01/10/91$	30/09/12	9.7	Sub-Sahara Resources NL (100.00)	Earning 70% Ni	√n∕a
P38/3093	$G - 30/05/03$	29/05/07.	$-0.6$	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1485	$A - 28/02/02$	∴ n/a	222.0	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1499.	A-16/05/02	∙n/a	47.6	South Boulder (100.00)	Earning 70% Ni	n/a .
E38/1511	$A - 02/07/02$	n/a	142.7.	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1519	$A - 23/08/02$	n/a.	$-12.7$	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1522	$A - 23/08/02$	.n/a.	79.3	South Boulder (100.00)	Earning 70% Ni	.n/a
E38/1532	$A - 19/11/02$	n/a	222.0	South Boulder (100.00)	Earning 70% Ni	·n/a
E38/1533	A – 19/11/02	n/a	120.5	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1535	$A - 26/11/02$	n/a	145.8	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1537	$A - 03/12/02$	n/a.	177.5	South Boulder (100.00)	Earning 70% Ni	ņ/a
E38/1548	$A - 17/02/03$	n/a.	6.3	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1549.	$A - 04/03/03$	n/a	15.9	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1564	A-04/03/03	n/a.	130.0	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1594	$A - 12/06/03$	n/a.	6.3	Essfor Pty Ltd (100.00)	Earning 70% Ni	n/a
E38/1602	A-30/06/03	n/a-	9.5	South Boulder (100.00)	Earning 70% Ni	n/a
E38/1614	A-08/08/03	.n/a	31.7	South Boulder (100.00)	Earning 70% Ni	·n/a
M38/874	$A - 10/10/00$	n/a	4.2	Wedgetail Exploration NL (100.00).	Earning 70% Ni	.n/a
M38/950	$A - 24/01/03$	n/a	2.6	Wedgetail Exploration NL (100.00)	Earning 70% Ni	n/a
P38/3160.	A - 08/05/03	n/a	.1.2	Essfor Pty Ltd (100.00)	Earning 70% Ni	n/a
P38/3161	A - 08/05/03	n/a	0.9	Essfor Pty Ltd (100.00)	Earning 70% Ni	n/a
P38/3162	A-08/05/03	n/a	1.6	Essfor Pty Ltd (100.00)	Earning 70% Ni	n/a
P38/3163	$A - 08/05/03$	n/a.	0.0	Essfor Pty Ltd (100.00)	Earning 70% Ni	n/a
P38/3164	$A - 08/05/03$	n/a	1.8	Essfor Pty Ltd (100.00)	Earning 70% Ni	∙n/a
P38/3218	$A - 24/03/04$	n/a	2.0	South Boulder (100.00)	Earning 70% Ni	n/a
P38/3219 P38/3220	A-24/03/04 $A - 24/03/04$	n/a	1.3 2.0	South Boulder (100.00)	Earning 70% Ni	n/a
		n/a		South Boulder (100.00)	Earning 70% Ni	n/a
Total – Duketon Joint Venture			1,684.6			n/a

Total - Joint Venture Projects March 2010 11:10:10:10 36,542.1

$\cdot$ 3

医皮肤病医皮肤病医皮肤病医皮肤病医皮肤病医皮肤病医皮肤病医皮肤病

$1.191.400$

Southstar refers to Southstar Diamonds Limited.

an ang Kabupatèn Propinsi Jawa Kabupatèn

ammalini
...

IG and Southstar are dual applicants in the tenements. AngloGold Australia Limited has the right to earn up to a 70% interest in the tenements by spending up to \$2 million from the date the last tenement is granted, subject to certain conditions.

AngloGold Australia Limited is the applicant of the tenement. This tenement is subject to a signed amendment to the $\dot{\cdot}$ Tropicana East Joint Venture Agreement whereby the interest in the tenements is subject to the same conditions as those held in the name of Southstar and IG. All and All and All and All and All and All and $\mathcal{S}_1$ . Then $\mathcal{S}_2$ and $\mathcal{S}_3$ maga Pelakur .
Verenige

This tenement is subject to a signed agreement with De Beers Australia Exploration Ltd ("DBAE"). DBAE is entitled to acquire a 70% interest in a tenement where annual sales of diamonds is likely to be in excess of AU\$50 million or where a deposit of other minerals has an in situ value of over AU\$1 billion. Chinese contract the second contract the continuum contract of

This tenement is subject to a signed agreement with Cullen Resources Limited and IG is earning an interest in the nickel rights. only that's democratic colour. I be called by the Hobbis count te san an Deus tanàna amin'ny fivondronan-kaominina dia Grégory. Io amin'ny

This tenement is subject to a signed agreement with South Boulder Mines Limited and IG is earning an interest in the nickel. rights only.

AI assistant

IGO LIMITED — Annual Report 2004

65111_rns_2004-09-26_ad3af446-31b3-4e0f-ae1a-2dfe82d72b7b.pdf

FINANCIAL REPORT FOR YEAR ENDING 30 JUNE 2004

corporate covernance statement

Board Composition and Functions

Director Independence

Risk Management

Audit Committee

Hedging Committee

Procedure for the Selection of New Directors.

Remuneration of Board Members

CONPORATE GOVERNANCE STATEMENT

Conflicts of Interest

Code of Conduct

Disclosure of Information to ASX and Investors.

DIRECTORS' REPORT

Principal Activities

Operating Results

Dividends Paid or Recommended

Review of Operations

Significant Changes in State of Affairs

Environmental Issues

After Balance Date Events

Future Developments

DIRECTORS' REPORT

Directors' Interest in Shares and Options

Directors' and Executive Officers' Emoluments

Terms and conditions of employment contracts

DIRECTORS' REPORT

Meetings of Directors

Unlisted Options

Unlisted options issued as at the date of this report are as follows:

Employees

Indemnifying Officers or Auditor

Proceedings on Behalf of Company

Rounding of Amounts

STATEMENTS OF FINANCIAL PERFORMANCE

STATEMENTS OF FINANCIAL POSITION

STATEMENTS OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES.

Principles of Consolidation

Income Tax

Investments

Interests in Joint Ventures

Property, Plant and Equipment

Plant and equipment

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Depreciation

Recoverable Amount

Leased Non-Current Assets

Exploration and Development Expenditure

Restoration and Rehabilitation Expenditure

Employee Entitlements

Cash

Comparative Figures

Revenue

m. Payables

Receivables

Earnings per Share

Foreign Currency Transactions

(i) Specific Commitments

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(ii) General Commitments

Derivatives

Commodity Hedging

Inventories

Mine Pre-production and Acquisition Costs

Rovalties

Rounding of Amounts

Tax Consolidation Regime

NOTES TO THE FINANCIAL STATEMENTS

(c) Remuneration options: Granted and vested during the year

(d) Option holdings of specified directors and specified executives

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5: DIRECTORS' AND EXECUTIVES' REMUNERATION (continued)

(e) Terms and conditions of employment contracts

NOTE 13: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004-

IGO LIMITED Annual Report 2004