IGO LIMITED — Interim / Quarterly Report 2011

Feb 21, 2011

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21 February 2011

Australian Stock Exchange Limited Company Announcements NO. OF PAGES : (17) Level 10, 20 Bond Street SYDNEY NSW 2000

HALF YEAR REPORT AND INTERIM DIVIDEND

Half Year Report

Independence Group NL (“IGO”) presents the Company’s financial results for the half year ended 31 December 2010.

The Company’s profit guidance announcement dated 18 January 2011 provided estimated and unaudited revenue and profit before tax results of $75.380 million and $30.229 million respectively. An estimate of net profit after tax was not provided.

The final half year statements have now been subject to an audit review and nickel price and foreign exchange rates have been updated to reflect more recent market prices.

The final half year results are as follows:-

Revenue and other income $77.626 million Profit before income tax $31.785 million Net profit after income tax $22.627 million

Interim Dividend

The directors hereby announce that a fully franked dividend of 4 cents will be paid to shareholders on 18 March 2011. The record date of the dividend will be 9 March 2011.

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CHRISTOPHER BONWICK Managing Director

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

HALF-YEAR INFORMATION – 1 JULY 2010 TO 31 DECEMBER 2010

LODGED WITH THE ASX UNDER LISTING RULE 4.2A

CONTENTS	PAGE
Key Information – Results for Announcement to the Market ………………..	2
Half-year Report
Directors’ Report …………………………………………………………....	3
Auditor’s Independence Declaration ……………………………………….	5
Consolidated Statement of Comprehensive Income …..…………………….	6
Consolidated Statement of Financial Position ...……………………………	7
Consolidated Statement of Cash Flows ……………………………………..	8
Consolidated Statement of Changes in Equity ………………………………	9
Notes to the Financial Statements ……………………………………………	10
Directors’ Declaration ……………………………………………………….	14
Independent Review Report to the Members ………………………………..	15

The interim financial statements do not include all the notes of the type normally included in the annual financial statements. Accordingly, this report is to be read in conjunction with the annual financial statements for the year ended 30 June 2010 and any public announcements made by Independence Group NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

1

INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

HALF-YEAR INFORMATION – 1 JULY 2010 TO 31 DECEMBER 2010 LODGED WITH THE ASX UNDER LISTING RULE 4.2A

Key Information – Results for Announcement to the Market

	$’000	% Increase/(Decrease) over Previous Corresponding Period
Revenue from ordinary activities	77,626	42.9
Profit after tax attributable to members	22,627	78.5
Net profit attributable to members	22,627	78.5

The previous corresponding period is the half-year ended 31 December 2009.

	2010	2009
Basic earnings per share (cents)	19.03	11.15
Diluted earnings per share (cents)	18.99	11.14
Net tangible assets per share (cents)	235.91	129.93

The major factors contributing to the above variances are as follows:-

• Spot nickel prices during the 2010 half year period were approximately 17% higher than in the previous corresponding period, resulting in higher revenue per tonne of nickel produced.

• The production of nickel was approximately 21% higher than in the previous corresponding period, which contributed to significantly higher revenue than in the previous corresponding period.

The Company paid a final 2009/10 fully franked dividend of 3 cents per share in September 2010. The Company will pay an interim dividend of 4 cents per share on 18 March 2011. The record date of the dividend will be 9 March 2011.

The Company did not gain or lose control over any entity during the period.

The accounts have been subject to review by BDO Audit (WA) Pty Ltd and the accounts are not subject to dispute or qualification.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Report

Your directors present their report on the consolidated entity consisting of Independence Group NL and the entities it controlled at the end of, or during, the half-year ended 31 December 2010.

Directors

The following persons were directors of Independence Group NL during the whole of the interim period and up to the date of this report unless otherwise noted:

Name

O Aamodt (Chairman)

C M Bonwick (Managing Director)

K A Ross

J A Christie R J Marston P Bilbe

Review of Operations

A summary of consolidated revenues and results for the half-year by significant industry segments is set out below:

Long nickel mine Tropicana gold project Other regional exploration Unallocated revenue Unallocated revenue less unallocated expenses Profit before income tax expense Income tax expense Profit after income tax expense Net profit attributable to members of Independence Group NL	Segment revenues 2010 2009 $’000 $’000 76,077 53,953 - - - - 1,549 384	Segment results 2010 2009 $’000 $’000 36,563 23,685 - - (2,324) (2,583) -- -
	77,626 54,337	34,239 21,102 (2,454) (3,427)
		31,785 17,675 (9,158) (5,000)
		22,627 12,675
		22,627 12,675

Comments on the operations and the results of those operations are set out below:

• a) Long nickel mine

This division consists of Lightning Nickel Pty Ltd’s Kambalda operation, the Long Nickel Mine.

b) Tropicana gold project

This division consists of the Group’s expenditure on the Tropicana Joint Venture. Development and construction of a gold mine and processing plant has been approved for the project. The project is managed by AngloGold Ashanti Australia Limited (70%) and the Company has a 30% interest in the project.

• c) Other regional exploration

Exploration expenditure is incurred throughout Australia. The exploration activities reflected in this segment relate to exploration expenditure incurred on projects excluding Tropicana and expenditure at the Long Nickel Mine.

Profit before related income tax expense increased by $14,110 thousand (80%) to $31,785 thousand.

The major factors contributing to the increase are as follows:-

• Spot nickel prices during the 2010 half-year period were approximately 17% higher than in the previous corresponding period, resulting in higher revenue per tonne of nickel produced.

• The production of nickel was approximately 21% higher than in the previous corresponding period, which contributed to significantly higher revenue than in the previous corresponding period.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Report (continued)

Events Subsequent to Balance Date

Since the end of the reporting period, the board of directors has resolved to pay fully franked dividends of 4 cents for every ordinary share held (see note 4(b) for details).

Since the end of the reporting period, the Company announced a takeover bid for Jabiru Metals Limited, a copper, zinc and silver producer listed on the ASX (code JML). The takeover offer is 1 share in Independence Group NL for every 8 JML shares held. Prior to announcing the bid, the Company acquired 10.1% of JML’s issued shares via a pre-bid agreement with Metals X Limited, a substantial shareholder. The pre-bid shares were acquired off market at a total cost of $48.1 million and Metals X Limited also agreed to accept the Company’s takeover offer for a further 52.5 million shares. Once these shares have been acquired via the takeover bid, the Company will hold 19.9% of JML’s issued shares.

Auditor independence declaration

The Auditor’s Independence Declaration on page 5 required under S307C of the Corporations Act 2001 forms part of the Director’s Report for the six months ended 31 December 2010.

Rounding of amounts to nearest thousand dollars

The Company is of a kind referred to in Class Order 98/100 issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial statements. Amounts in the directors’ report and financial statements have been rounded off to the nearest thousand dollars in accordance with that Class Order.

This report is made in accordance with a resolution of the directors.

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C M Bonwick Director

Perth 21 February 2011

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38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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21 February 2011

The Directors Independence Group NL PO Box 893 SOUTH PERTH WA 6951

Dear Sirs,

DECLARATION OF INDEPENDENCE BY GLYN O’BRIEN TO THE DIRECTORS OF INDEPENDENCE GROUP NL

As lead auditor for the review of Independence Group NL for the half-year ended 31 December 2010, I declare that to the best of my knowledge and belief, there have been:

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

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

This declaration is in respect of Independence Group NL and the entities it controlled during the period.

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Glyn O’Brien Director

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BDO Audit (WA) Pty Ltd Perth, Western Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Statement of Comprehensive Income For the six months ended 31 December 2010

Revenue from continuing operations Other income Raw materials and consumables used Employee benefits expense Share-based payment expense Fair value movement of listed investments Depreciation and amortisation expenses Exploration costs expensed Capitalised exploration costs impaired Provision for mine rehabilitation Ore tolling costs Royalty expense Other expenses Profit before income tax expense Income tax expense Profit for the period Other Comprehensive Income Effective portion of changes in fair value of cash flow hedges, net of tax Other comprehensive income for the half year, net of tax Total comprehensive income for the period Profit attributable to the members of Independence Group NL Total comprehensive income for the period attributable to the members of Independence Group NL Basic earnings per share Diluted earnings per share	31 December 31 December 2010 2009 $’000 $’000 73,176 52,021 4,450 2,316 (9,862) (9,055) (11,777) (9,638) (10) (43) 1,104 (761) (9,939) (5,669) (1,185) (849) (1,848) (2,258) (30) (14) (4,014) (3,590) (4,042) (2,565) (4,238) (2,220)
	31,785 17,675 (9,158) (5,000)
	22,627 12,675 593 (5,243)
	593 (5,243) 23,220 7,432
	22,627 12,675 23,220 7,432 Cents Cents 19.03 11.15 18.99 11.14

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Statement of Financial Position As at 31 December 2010

Notes Current assets Cash and cash equivalents Current tax receivable Trade and other receivables Inventories Other financial assets 4 Total current assets Non-current assets Trade and other receivables Deferred tax assets Other financial assets 4 Property, plant and equipment Exploration, evaluation and development expenditure Investments accounted for using the equity method Mine acquisition and pre-production costs Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Current tax payable Borrowings Other financial liabilities 4 Total current liabilities Non-current liabilities Deferred tax liabilities Borrowings Other financial liabilities 4 Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves 4 Retained earnings Total equity	31 December 30 June 2010 2010 $‘000 $‘000 300,187 143,957 - - 29,401 21,565 412 257 10,908 3,453
	340,908 169,232
	6 6 16,252 7,267 6,849 3,756 10,662 5,070 100,765 86,366 - 117 436 726 868 1,006
	135,838 104,314
	476,746 273,546
	18,332 17,107 4,728 2,299 480 - 18,689 13,922
	42,229 33,328
	29,165 20,335 937 - 7,718 3,696 1,459 1,407
	39,279 25,438
	81,508 58,766
	395,238 214,780
	190,194 29,552 (1,138) (1,741) 206,182 186,969
	395,238 214,780

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

C onsolidated Statement of Cash Flows For the six months ended 31 December 2010

Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Borrowing costs Income taxes paid Other income Net cash provided by/(used in) operating activities Cash flows from investing activities Proceeds – sale of property, plant and equipment Purchase of property, plant and equipment Payments for exploration and development expenditure Interest received Payments for investments Net cash used in investing activities Cash flows from financing activities Proceeds from issues of share capital, net of costs Dividends paid Net cash provided by/(used in) financing activities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	Half Year 31 Dec 2010 31 Dec 2009 ‘000 $‘000 67,590 61,059 (33,599) (27,105)
	33,991 33,954 - - (5,074) (3,518) 10 8
	28,927 30,444
	11 - (7,240) (380) (24,110) (18,717) 3,877 1,896 (398) -
	(27,860) (17,201)
	158,577 43 (3,414) (3,409)
	155,163 (3,366)
	156,230 9,877 143,957 127,238
	300,187 137,115

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Consolidated Statement of Changes in Equity For the six months ended 31 December 2010

	Contributed Equity Retained Earnings Share Based Payment Reserve Hedging Reserve Total Equity
At 1 July 2009 Total comprehensive income for the period Profit for the period Other comprehensive income Profit on cash flow hedges, net of tax Total comprehensive income for the period Contributions by and distributions to owners Cost of share-based payment Exercise of options Dividends to equity holders At 31 December 2009 At 1 July 2010 Total comprehensive income for the period Profit for the period Other comprehensive income Profit on cash flow hedges, net of tax Total comprehensive income for the period Contributions by and distributions to owners Cost of share-based payment Exercise of options Other issues of shares during the period, net of costs Dividends to equity holders At 31 December 2010	$’000 $’000 $’000 $’000 29,078 163,912 3,954 (1,508) 195,436 - 12,675 - - 12,675 - - - (5,243) (5,243)
	- 12,675 - (5,243) 7,432 - - 43 - 43 44 - - - 44 - (3,409) - - (3,409)
	29,122 173,178 3,997 (6,751) 199,546
	29,552 186,969 4,040 (5,781) 214,780 - 22,627 - - 22,627 - - - 593 593
	- 22,627 - 593 23,220 - - 10 - 10 1,110 - - - 1,110 159,532 - - 159,532 - (3,414) - - (3,414)
	190,194 206,182 4,050 (5,188) 395,238

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the six months ended 31 December 2010

Note 1. Basis of preparation of half-year financial statements

These consolidated half-year financial statements have been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

These half year financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these statements are to be read in conjunction with the annual financial statements for the year ended 30 June 2010, which were prepared based on Australian equivalents to International Financial Reporting Standards ('AIFRS') and any public announcements made by Independence Group NL during the half year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding half-year reporting period.

Note 2. Segment information

(a) Description of segments

Management has determined the operating segments based on the reports reviewed by the board that are used to make strategic decisions. The Group operates in only one geographic segment (ie. Australia) and has identified three operating segments, being the Long Nickel Mine which is disclosed under the Nickel mining segment, the Tropicana Project, and “other exploration” which is disclosed under Regional exploration activities.

The Long Nickel Mine produces nickel and copper from which its revenue is derived. All revenue derived by the Long Nickel Mine is received from one customer being BHP Billiton Nickel West Pty Ltd. The General Manager of the Long Nickel Mine is responsible for the budgets and expenditure of the mine, which includes exploration activities on the mine’s tenure. The Long Nickel Mine and exploration properties are owned by the Group’s subsidiary Lightning Nickel Pty Ltd.

The Tropicana Project represents the Group’s 30% joint venture interest in the Tropicana Gold Project. AngloGold Ashanti Australia is the manager of the project and holds the remaining 70% interest. Programs and budgets are provided by AngloGold Ashanti Australia and are considered for approval by the Independence Group NL board. Construction and development of a gold mine and processing plant has been approved on the joint venture tenure. It is therefore allocated its own segment.

The Group’s Exploration Manager is responsible for budgets and expenditure by the Group’s regional exploration team. The Regional exploration division does not normally derive any income. Should a project generated by the Regional exploration division commence generating income or lead to the construction or acquisition of a mining operation, that operation would then be disaggregated from Regional exploration and become reportable as a separate segment.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the six months ended 31 December 2010

Note 2. Segment information (continued)

(b) Segment information provided to the board

Half-year 2010 External revenue Inter-segment revenue Reportable segment profit before income tax expense Reportable segment assets Half-year 2009 External revenue Inter-segment revenue Reportable segment profit before income tax expense Reportable segment assets	Nickel mining Tropicana project Regional exploration activities Total $’000 $’000 $’000 $’000 76,077 - - 76,077 - - - -
	36,563 - (2,324) 34,239
	229,896 40,666 18,370 288,932
	Nickel mining Tropicana project Regional exploration activities Total $’000 $’000 $’000 $’000 53,953 - - 53,953 - - - -
	23,685 - (2,583) 21,102
	186,404 28,711 13,865 228,980

A reconciliation of reportable segment profit or loss to operating profit before income tax is provided as follows:

Total profit or loss for reportable segments Intersegment eliminations Interest revenue not allocated to reportable segments Unrealised financial instrument gains/(losses) Share based payment expense Other corporate costs Profit before income tax from continuing operations	Consolidated 31 Dec 2010 31 Dec 2009 ‘000 $‘000 34,239 21,102 - - 1,549 384 1,104 (761) (10) (43) (5,097) (3,007)
	31,785 17,675

The amounts provided to the board with respect to total assets are measured in a manner consistent with that of the financial statements. These assets are allocated based on the operations of the segment and the physical location of the asset.

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements For the six months ended 31 December 2010

Note 3. Equity securities issued

Note 3. Equity securities issued
	Half-year		Half-year
	2010	2009	2010	2009
	No. of Shares	No. of Shares
Issues of ordinary shares during the half-year	‘000	‘000	$’000	$’000
Issue of shares under placement & rights issue	24,714	-	164,347	-
Less: Costs	-	-	(4,815)	-
Exercise of options issued under the
Independence Group NL Employee Option Plan	250	37	1,110	44
Note 4. Other information
(a) Reconciliation of retained profits
Balance at the beginning of the half-year			186,969	163,912
Net profit attributable to members of Independence Group NL			22,627	12,675
Total available for appropriation			209,596	176,587
Dividends paid during the half-year			(3,414)	(3,409)
Balance at the end of the half-year			206,182	173,178
(b) Dividends paid on ordinary shares
(i) Dividends paid during the half-year (3 cents (2009: 3 cents) per share fully			3,414	3,409
franked)
(ii) In addition to the above dividends, since the end of the half year		the directors
have recommended the payment of a fully franked interim dividend of 4 cents per
share. The amount of the proposed dividend expected to be paid on 18 March
2011 out of retained profits at 31 December	2010, but not recognised as a
liability at the end of the half year, is $5,551 thousand.
			31 December	30 June
			2010	2010
			$’000	$’000
(c) Other financial assets
Current
Forward foreign exchange contracts			8,669	2,832
Investment in unlisted entities			514	-
Investment in listed entities at fair value			1,725	621
			10,908	3,453
Non-current
Forward foreign exchange contracts			6,849	-
Commodity hedging gain			-	3,756
			6,849	3,756
(d) Other financial liabilities
Current
Commodity hedging loss			18,689	13,922
Non-current
Forward foreign exchange contracts			7,718	3,696
(e) Reserves
Share-based payment reserve			4,050	4,040
Hedged instruments reserve			(5,188)	(5,781)
			(1,138)	(1,741)

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INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Notes to the Consolidated Financial Statements

For the six months ended 31 December 2010

Note 4. Other information (continued)

(f) Property, plant and equipment

During the period the Company purchased mining machinery costing $7,240 thousand (2009: $380 thousand). The Company sold no mining machinery during the period.

(g) Impairment of exploration, evaluation and development expenditure

An assessment is made of the carrying value of capitalised exploration, evaluation and development expenditure. This assessment is done on a quarterly basis and as a result $1,848 thousand has been written off during the 2010 half year period (2009: $2,258 thousand).

Note 5. Contingent assets and liabilities

(a) Contingent assets

There have been no material changes in contingent assets since the last annual reporting date.

(b) Contingent liabilities

Guarantees relating to environmental and rehabilitation bonds have increased to $1,769 thousand (June 2010: $1,607 thousand). There have been no other changes in contingent liabilities since the last annual reporting date.

Note 6. Events subsequent to balance date

After the end of the reporting period, on 21 February 2011 the board of directors resolved to pay fully franked dividends of 4 cents for every ordinary share held (see note 4(b) for details).

Since the end of the reporting period, the Company announced a takeover bid for Jabiru Metals Limited, a copper, zinc and silver producer listed on the ASX (code JML). The takeover offer is 1 share in Independence Group NL for every 8 JML shares held. Prior to announcing the bid, the Company acquired 10.1% of JML’s issued shares via a pre-bid agreement with Metals X Limited, a substantial shareholder. The pre-bid shares were acquired off market at a total cost of $48.1 million and Metals X Limited also agreed to accept the Company’s takeover offer for a further 52.5 million shares. Once these shares have been acquired via the takeover bid, the Company will hold 19.9% of JML’s issued shares.

Note 7. Capital commitments

There have been no capital commitments since the end of the reporting period.

Note 8. Rounding of amounts

The Company is of a kind referred to in Class Order 98/100 issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial statements. Amounts in the directors’ report and financial statements have been rounded off to the nearest thousand dollars in accordance with that Class Order.

13

INDEPENDENCE GROUP NL AND CONTROLLED ENTITIES ABN 46 092 786 304

Directors’ Declaration

1. In the opinion of the directors of Independence Group NL, the financial statements and notes as set out on pages 6 to 13:

2. (a) comply with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001, and

3. (b) give a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date.

4. In the opinion of the directors, there are reasonable grounds to believe that Independence Group NL 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 directors.

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C M Bonwick Director

Perth

21 February 2011

14

Tel: +8 6382 4600 38 Station Street Fax: +8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF INDEPENDENCE GROUP NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Independence Group NL, which comprises the Statement of Financial Position as at 31 December 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the disclosing entity and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Independence Group NL, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

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Conclusion

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

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

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

BDO Audit (WA) Pty Ltd

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Glyn O’Brien Director

Perth, Western Australia. Dated this 21[st] day of February 2011