ION VIDEO LTD - Annual Report 2014

ANNUAL REPORT YEAR ENDED 30 JUNE 2014

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

CONTENTS PAGE

CORPORATE DIRECTORY…………………………………………………………………….……………………….……………….…..…2 CHAIRMAN'S LETTER TO SHAREHOLDERS ………………………………………….……………………………………….…..…3 DIRECTORS' REPORT………………………………………………………………………………………………………………….…..4-21 CORPORATE GOVERNANCE STATEMENT..…………………………………………………………………………………… ..22-29 AUDITOR'S INDEPENDENCE DECLARATION……………………………………………………………………………..……….…30 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME……………………………………………………………….31 CONSOLIDATED STATEMENT OF FINANCIAL POSITION…………………………….…………………………………… …....32 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY………………………………………………………………… …..…33 CONSOLIDATED STATEMENT OF CASH FLOWS………………………………………………………………………… ……..…34 NOTES TO THE FINANCIAL REPORT……………………………………………………………………………………… ……..35--61 DIRECTORS' DECLARATION…………………………………………………………………………………………………………….…62 INDEPENDENT AUDITOR'S REPORT……………………………………………………………………………………………...63-64 ADDITIONAL INFORMATION FOR LISTED COMPANIES………………………………………………………… …….…..65-68

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

CORPORATE DIRECTORY

This annual report covers Firestrike Resources Limited and its controlled entity (“the Consolidated Group” or “Group”) during the year ended 30 June 2014. The functional and presentation currency of the Consolidated Group is Australian dollars.

OFFICERS	Roger Steinepreis	(Non-Executive Chairman)
	David Holden	(Managing Director)
	Paul Lloyd	(Non-Executive
		Director/Company Secretary)
REGISTERED OFFICE	Suite 1, Ground floor, 437 Roberts	Road
	SUBIACO WA 6008
SOLICITORS	Steinepreis Paganin
	Lawyers and Consultants
	Level 4, The Read Buildings
	16 Milligan Street
	PERTH WA 6000
AUDITORS	HLB Mann Judd
	Level 4, 130 Stirling Street
	PERTH WA 6000
SHARE REGISTRY	Advanced Share Registry Ltd
	110 Stirling Highway
	NEDLANDS WA 6009
	Telephone: (08) 9389 8033
	Facsimile: (08) 9389 7871
PRINCIPAL PLACE OF BUSINESS	Suite 1, Ground floor, 437 Roberts	Road
	SUBIACO WA 6008
	Telephone: (08) 9476 9203
	Facsimile: (08) 9382 1122
WEBSITE	www.firestrike.com.au
ASX CODE	FIE and FIEOA

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

CHAIRMAN’S LETTER TO SHAREHOLDERS

Dear Shareholders,

I have pleasure in presenting to you the Annual Report for Firestrike Resources Limited after what has been yet another testing year for the Company.

Since 2013, Firestrike Resources Limited has had to endure prolonged financial turbulence in the capital markets which continues even today. The effects of this have unfortunately had a significant impact upon both the share price and the Company’s ability to grow.

Despite this the Directors continue to remain both positive and active. In late 2013 the Company secured a robust copper project for very low entry cost and under the right market conditions consider the project will be able to offer a clear path towards developing resources and subsequent production. The project located near Moab, Utah in the USA is close to infrastructure and easily accessible by road on the margin of a broad valley known as Copper Ridge.

This project is without ongoing commitments other than statutory requirements and is 100% owned and operated by the Company. Owning the project outright offers flexibility and freedom in decision making for exploration activities going forward and the technical team is confident that progress can be maintained paralleling market conditions. Currently the technical team is evaluating all the exploration data generated over the past 6 months so as to give a clear exploration strategy and assessment of associated funding requirements going forward.

It is important to realise that many junior resources companies including Firestrike Resources still operate in a depressed capital environment and as a market sector, remains largely undercapitalised. In response to this the Directors have further reduced administration expenditure by cutting salaries and other nonessential obligations whilst diligently looking at new opportunities to secure continued funding along with ways to advance the existing copper project. These opportunities will be carefully evaluated to ensure they respect the long term support demonstrated by existing shareholders over the past 12 months. It is anticipated that such opportunities will be assessed not only for their ability to provide funding for the company but their ability to seek growth and expansion.

Certainly your Directors feel confident that despite market conditions there is a bright future for Firestrike Resources on the horizon.

It is on behalf of your Directors I would like to sincerely thank all shareholders that have supported us through this difficult financial time and hope you will continue to support us as we look to continue to guide the company forward into 2015 and beyond.

I present to you the report on the Company and its controlled entity for the financial year ended 30 June 2014.

Roger Steinepreis

CHAIRMAN

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

Directors

The Directors in office during the year were:

Roger Steinepreis (Non-Executive Chairman) David Holden (Managing Director) Paul Lloyd (Non-Executive Director)

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

Company Secretary

Paul Lloyd was appointed Company Secretary on 17 May 2013. Philip Re resigned from the position of joint Company Secretary on 6 May 2014.

Principal Activities

The Company was incorporated on 10 March 2011.

The Company (“Firestrike” ASX: FIE) successfully listed on the ASX on 26 July 2011 after completing a capital raising under a prospectus by issuing 15,500,000 shares at $0.20 to raise $3,100,000.

Firestrike is a gold and base metal exploration company. The Company’s vision is to maximise shareholder wealth through successful exploration, namely the discovery and subsequent definition of economic resources.

The Company has exploration activities currently operating in the USA and Australia.

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

REVIEW OF OPERATIONS

In operational matters during the year Firestrike Resources Limited acquired a 100% interest in a copper project in Utah USA. This property is a robust disseminated copper project located close to road, rail, power and the town of Moab, Utah USA. The Company completed a substantial surface sampling programme over three phases including an initial due diligence site investigation prior to acquisition, and in late June 2014 commenced shallow diamond core drilling to explore sub surface .

The Company also acquired two exploration licence applications (one now granted) covering part of the Scorpion and Salvation Faults in the Nabberu Basin Western Australia. The area is prospective for massive disseminated base metals deposition, and is following up on data indicating lead and zinc mineralising from previous exploration efforts. This project is also 100% owned by the Company.

On existing properties in Australia, Firestrike has completed airborne magnetic and radiometric studies over the Kimberley gold projects in an effort to resolve structural complexities at both properties. Future exploration will require drilling. This remains subject to finalising agreement with the Kimberley Land Council and Indigenous communities in the area in regards to access and on ground activities.

Copper Ridge Project – Utah USA.

(100% Firestrike Resources Limited)

The Company has acquired the Copper Ridge Project, Salt Valley, Utah. This project is 100% owned by the Company and field work has already commenced.

Copper Ridge has:

Significant visible copper mineralisation at surface at a number of the already identified prospect locations in an area over 7 kilometres by 1 kilometre.
Proven readily leachable copper species with associated high grade silver and lead.
Numerous historical small scale copper mines on the property and adjacent to the project area indicating high grade material is present.
A successful producing copper mine (80 miles to the southeast) in similar rocks and of similar tenor of grade.

In October 2013, the Company completed due diligence which included collecting a number of surface samples with anomalous copper greater than 1% detected in 4 of the 13 samples collected. Full results are available in the ASX announcement dated 26[th] November 2013 “Firestrike secures exciting Copper Ridge Project, USA”.

Following on from this initial confirmation of widespread copper, first pass regional rock sampling during November 2013 was undertaken. This exploration work identified 3 specific prospects within the property worthy of further investigations as well as numerous anomalous copper results outside the area of the prospects identified.

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

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LOCATION MAP OF THE COPPER RIDGE PROJECT

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

This work is summarised below with full results detailed in the ASX release dated 6 February 2014 “Firestrike confirms copper discovery in Utah”. Continuous chip or channel samples collected across a number of outcrops at surface returned:

26m @ 1.10% copper (including 2m @1.91%, 2m @ 1.08%, 2m @ 1.37%, 2m @ 3.5%, 2m @ 1.34%)
5.5m @ 0.58% copper (including 0.5m @ 2.34%)
3m @ 0.96% copper
4m @ 0.59% copper (including 1m @ 1.79%)
3m @ 0.42% copper
11m @ 0.37% copper
16m @ 0.38% copper
42m @ 0.36% copper
24m @ 0.14% copper
16m @ 0.25% copper

Of the 135 samples collected:

15 exceeded 1% copper
115 were above 0.1% copper
0.67% copper average grade across all samples above a 0.1% cut off grade.

A follow up second phase of exploration work in February 2014 focused on areas between the already identified prospects of the Harrison, Xaz and Mealey. Results of the second phase are summarised as follows:

Outcrop grab sample of 17.0% copper with 2.9% lead
10 metres(m) channel sample at Tibbets prospect averaging 0.6% copper including
1m @ 4.8% lead,
1m @ 4.5% lead
1m @ 7.7% lead
4.7% copper with 36.3% lead in grab sample
2m @ 3.4% copper and 2.2% lead
4m @ 4.9% copper and 4.6% lead
10,950 ppm uranium from old mine workings

Of the numerous outcrop sites visited where mineralisation was identified 83 sites were sampled and 55 of these returned copper greater than 0.1% copper with 33 greater than 0.5% copper. The maximum result was 17.01% copper as a single grab sample with a median of all copper samples of 0.54% copper, and an average of 0.76% copper (excluding the very high copper grab sample above).

I n March 2014, preliminary metallurgical investigations and acid digestion analytical work confirmed that the copper is very readily soluble which has positive implications for any potential heap leach processing.

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

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LOCATION MAP SHOWING PROSPECTS. Outline of claims. Geology is fawn = Morrison formation; yellow is Summerville formation, blue is entrada sandstone. Red dots show recent drilling locations.

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

Sample No: (composite samples) (1)	TotCu ppm (Cu %)	SolCu ppm (Cu %)	Acid Cu ppm	CNCu ppm	SolCu / TotCu Ratio	CNCu / TotCu ratio	% total Soluble Copper
3103-3115 (13 samples)	10,400 (1.04)	8,740 (0.87)	100	134	0.84	0.01	85%
3143-3146 (4 samples)	6,850 (0.69%)	6,030 (0.60)	Nil	93	0.88	0.01	89%
3201	121,000 (12.1)	98,600 (9.86)	400	514	0.81	0.00	82%
3208	19,800 (1.98)	16,000 (1.60)	200	70	0.81	0.00	81%
3123 -3128 (6 samples)	5,230 (0.52)	4,780 (0.47)	Nil	35	0.91	0.01	92%
3215-3220 (6 samples)	3,500 (0.35)	2,980 (0.30)	Nil	32	0.85	0.01	86%
3222 -3229 (8 samples)	3,760 (0.38)	3,350 (0.33)	Nil	27	0.89	0.01	90%
3188	14,900 (1.49)	11,900 (1.19)	300	97	0.80	0.01	81%
3117 – 3120 (4 samples)	6,860 (0.69)	5,790 (0.58)	100	48	0.84	0.01	85%
3210 (2)	5,550 (0.56)	430 (<0.1)	480	158	0.08	0.03	11%

NOTE: (1) For details on the sample locations, descriptions and sample criteria table, please refer to announcements by the company February 2014 and March 2014.

(2) Sample 3210 results inconsistent and requires further investigation. TotCu is total copper

SolCu is the sulphate soluble copper

AcidCu is the acid soluble copper

CNCu is the cyanide soluble copper

For the samples containing easily soluble copper (i.e. excluding sample 3210). The average results are:

Sample Number	TotCu ppm (Cu %)	SolCu ppm (Cu %)	CNCu ppm	SolCu / TotCu ratio	CN Cu / TotCu Ratio	% total Soluble Copper
45	20,740 (2.07)	17,027 (1.70)	115	0.82	0.01	83%

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

The analytical work was completed by SGS in Perth, Western Australia as a 5 stage sequential copper digest comprising analytical codes AAS73F, CSC65D, DIG72Q/AAS72Q, DIG23B/ASS23B and DIG43B/AAS43B.

The digest comprises a hydrofluoric/mixed acid digest and AAS analysis to determine the concentration of total copper in the sample. Then four analytical digestions are sequentially completed:

sulphate soluble digest - using a weakly acidified ferric sulphate solution
acid soluble copper - sulphuric acid digest with 5% sulphuric acid solution at low temperature
acid soluble copper - 3 acid digest using high temperature for more complex matrices and
cyanide digest for the more silicate bound copper

All assays following the digestions are completed with AAS for copper determinations.

In late May shallow core drilling using a light weight man portable rig commenced on the three main prospects; Harrison, Xaz and Mealey. The drilling is to test copper below surface and on 26 June the company announced first results in “Extensive copper below surface at Copper Ridge”.

The Drilling concluded in late August 2014. All drilling intervals are reported in feet as the drilling equipment measurements are in feet. For conversion to metric 1 foot equals 0.3014 metres.

Results from the ASX release on June 26[th] included:

12 feet @ 0.56% Copper including 3 feet @ 0.76% Copper
5 feet @ 0.46% Copper including 1 feet @ 0.84% Copper
4.5 feet @ 0.68% Copper
4 feet @ 0.51% Copper
7 feet @ 0.31% Copper
16 feet @ 0.23% Copper including 2 feet @ 0.77% Copper
10.5 feet @ 0.28% Copper including 1 foot @ 0.67% Copper
12 feet @ 0.25% Copper including 2 feet @ 0.42% Copper
High grade silver of 466 g/t over 3 feet

Of the 18 holes drilled and assayed 9 have confirmed the presence of copper in assays from surface to an average depth of 20 feet. 10 holes have terminated in copper mineralisation.

The weighted average copper at the Harrison is 0.40% copper and at Xaz 0.30% which is consistent with the type of project the Company is exploring. Of the total feet assayed to date 26% has returned copper mineralisation.

Geology

The geology of the Copper Ridge is fundamentally a faulted and partially collapsed anticlinal structure with the residual sedimentary beds of the Paradox formation exposed at surface. The resulting valley is over 40 kilometres long and 1 kilometre wide. The sedimentary sequence comprises sandstones, siltstones, limestones and shales formed from Paleozoic to Mesozoic times. Faults parallel both sides of the axis of the fold. This partial

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

breaching of the anticline along these faults is a response to the dissolution of salt from beneath the sediments and subsequent basin deformation. The anticline plunges gently to the north.

Mineralisation is the result of two fluid movements. The initial fluid as a result of the de-watering and dissolution of the salt dome within red bed sandstones bleaching along the fault structures and reducing the beds with trace bitumen and other organic fragments becoming receptive to a second stage fluid migration possibly as late as Tertiary Age which introduced the copper and other metals. This mineralisation has pervasively flooded into the respective hosts resulting in both narrow high grade fractures and vein fills and broad areas of low grade disseminated copper. There is a strong correlation between the mappable major faults and splays associated with the southern flank of the valley and the main valley controlling structure.

Several small copper and copper/silver mines were active in the Salt Valley anticline on the south western limb. These deposits were worked intermittently from the early 1900s to 1930s and are now abandoned. The Hoosier Mine (within in the SITLA lease) is inferred to be on a fault splay on the southwest flank of the anticline in close proximity to the main north striking fault and is reported to have produced 100,000 ounces of silver from within the copper ore mined which was at a grade quoted in the Utah Geological and Mineral Survey Report 1979[1] of 8% copper.

The Utah Geological and Mineral Survey Report 1979[2] also refers to a second significant mining operation (Harrison Prospect as shown on accompanying map) where copper was acid leached from disseminated ore. The mining was active in the 1970’s but was discontinued due to operational inefficiencies.

Active mining is present today 80 kilometres to the southeast of Salt Valley at the Lisbon Valley Copper mine (a private company operation) which is reported to be producing between 20 – 30 million pounds (8,000-10,000 tonnes) of copper per year. Their total resource to date is approximately 256 million pounds (110,000 tonnes) of copper[3] . The copper is also within predominantly sandstone and is also processed using simple acid heap leach with SX/EW treatment and is a strong parallel to the exploration and development focus for Copper ridge.

The Company now owns 184 mining claims in its own right and is in negotiation for the metalliferous mineral rights over the SITLA leases with the SITLA administration.

1 Public domain data: Report of Investigation. Utah Geological and Mineral Survey No 143 Mineral Resource Inventory of the Paradox Salt Basin, Utah and Colorado by Harvey W Merrell and staff of the Utah Geological and Mineral Survey October 1979 . Prepared for Battelle Project Management Division. Office of Nuclear Waste isolation. Page 54

2 Public domain data: Report of Investigation. Utah Geological and Mineral Survey No 143 Mineral Resource Inventory of the Paradox Salt Basin, Utah and Colorado by Harvey W Merrell and staff of the Utah Geological and Mineral Survey October 1979 . Prepared for Battelle Project Management Division. Office of Nuclear Waste isolation page 55 and page 60

3 http://www.lisbonvalley.com/about-us/operations-overview/

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

STYLISED MODEL FOR MINERALISATION

Nabberu lead and zinc Project EL 69/3225 and ELA 69/3226

(100% Firestrike Resources Limited)

The Company has applied for over 240,000 hectares of ground in the Nabberu Basin, Western Australia. It is anticipated that a focused programme of remote sensing, continued data collation and field sampling will add substantial value to the property in the short term with a view to having drill ready targets identified for testing in early in 2015. The Company sees this as a very positive low cost entry into an area that is considered highly prospective for base metals, silver and gold.

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

Grants Creek Project P80/1576, 1577, 1578, 1579, 1580, 1582, 1760.

(100% Firestrike Resources Limited)

Angelo Project, Halls Creek E80/2707

(100% Firestrike Resources Limited)

The Company has completed a detailed aeromagnetic survey over the tenement area in conjunction with the survey completed at Angelo Project. Both projects remain prospective for high grade gold in vein systems and work to identify prospects whilst waiting for access from the Kimberley Land Council.

Other activities

The board has been actively involved in reviewing and appraising other global resource projects presented to the Company that were considered to offer the opportunity to grow shareholder wealth.

Competent Persons Statement

The information in this announcement to which this statement is attached relates to Exploration Results, Mineral Resources or Ore Reserves compiled by Mr D. J. Holden, who is the Managing Director of the Company and is a Member of The Australian Institute of Mining and Metallurgy, with over 25 years’ experience in the mining and resource exploration industry. Mr Holden has sufficient experience, to qualify as a Competent Person as defined in the 2012 edition of the “Australian Code for Reporting of Mineral Resources and Ore reserves”. Mr Holden consents to the inclusion in the report of the matters based on information in the form and context in which it appears.

Operating Results

The loss for the year ended 30 June 2014 after income tax expense amounted to $1,267,497 (2013 year $1,736,142).

Dividends Paid or Recommended

No dividends were paid or declared for payment.

Financial Position

The net assets of the Group at 30 June 2014 are $531,270.

The Directors believe the Company is in a stable financial position to allow it to continue to explore and develop the current exploration properties.

REMUNERATION REPORT - AUDITED

The information provided in the audited remuneration report includes remuneration disclosures that are required under Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been audited.

Principles used to determine the nature and amount of remuneration

The Board determines the appropriate nature and amount of remuneration. The Board ensures that the executive reward satisfies the following criteria for good reward governance practice:

competitiveness and reasonableness;
acceptability to shareholders;
alignment of executive remuneration to performance;
transparency; and
capital management.

The framework provides for a mix of fixed and variable remuneration.

Non-executive Directors and executive Director

Fees and payments to non-executive Directors and the executive Directors reflect the demands, which are made on, and the responsibilities of, the Directors. Non-executive Directors’ fees and payments are reviewed annually by the Board.

Directors’ fees

Non-executive directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically recommended for approval by shareholders. The maximum pool limit currently stands at $300,000 per annum.

Key Management Personnel Remuneration Policy

The Board’s policy for determining the nature and amount of remuneration of key management for the Consolidated Group is as follows:

The remuneration structure for key management personnel is based on a number of factors, including length of service, particular experience of the individual concerned, and overall performance of the Consolidated Group. The contracts for service between the Consolidated Group and key management personnel are on a continuing basis, the terms of which are not expected to change in the immediate future.

The employment conditions of the managing director, David Holden were formalised in a Consulting agreement with Shackleton Capital Pty Ltd on 18 May 2011. The engagement was for a term of two years and for the amount of $12,500 per month. The Consultancy Agreement terminated on 18 May 2013. Mr Holden has agreed to step down as Managing Director effective 31 October 2014. Mr Holden will remain a Director of the Company in a Non-Executive role and all Directors have agreed to reduce their Director’s fees to $2,000 per month effective 1 September 2014.

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

Key Management Personnel Remuneration
2014
Key Management Personnel
	Directors’ &	Total	Performance
	consultancy		Related
	fees
	$	$	%
Roger Steinepreis	39,2401	39,240	-
David Holden	151,5002	151,500	-
Paul Lloyd	99,2403	99,240	-
	289,980	289,980	-
2013
Key Management Personnel
	Directors’ &	Total	Performance
	consultancy		Related
	fees
	$	$	%
Roger Steinepreis	39,2401	39,240	-
David Holden	189,0002	189,000	-
Paul Lloyd	65,2403	65,240	-
	293,480	293,480	-

Consultancy fees were paid to Steinepreis Paganin, a related party of Roger Steinepreis.
Consultancy fees were paid to Shackleton Capital Pty Ltd, a related party of David Holden.
Consultancy fees were paid to Coral Brook Pty Ltd, a related party of Paul Lloyd.

Performance income as a proportion of total remuneration

Executive directors and executives were not paid performance based bonuses.

Options issued as part of remuneration for the period ended 30 June 2014

No options were issued to the Directors or executives as part of their remuneration during the year.

Number of Options held by Key Management Personnel

	Balance	Movements	Total Vested and Exercisable	Total Unexercisable
	1.7.2013	30.6.2014	30.6.2014	30.6.2014
Roger Steinepreis	-	1,475,000	1,475,000	-
David Holden	-	1,292,500	1,292,500	-
Paul Lloyd	-	1,250,000	1,250,000	-
Total	-	4,017,500	4,017,500	-

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

Number of Shares held by Key Management Personnel

	Balance	Received as	Options	Acquired during	Balance
	1.7.2013	Compensation	Exercised	the year	30.6.2014
Roger Steinepreis	2,950,000	-	-	3,826,300	6,776,300
David Holden	2,585,000	-	-	500,000	3,085,000
Paul Lloyd	2,500,000	-	-	1,250,000	3,750,000
Total	8,035,000	-	-	5,576,300	13,611,300

Related Party Transactions
	Consolidated Group
	2014	2013
	$	$
Transactions with related parties:
Legal fees paid to Steinepreis Paganin, a legal firm in which
Roger Steinepreis has an interest	19,868	27,666

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

END OF REMUNERATION REPORT

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

Meetings of Directors

During the financial year, eleven meetings of Directors were held. Attendance by each director was as follows:

	Directors’ Meetings
	Number eligible to attend	Number attended
Roger Steinepreis	11	11
David Holden	11	11
Paul Lloyd	11	11

Indemnification and insurance of Directors and Officers

The Company has agreed to indemnify all the directors of the Company for any liabilities to another person (other than the Company or related body corporate) that may arise from their position as directors of the Company, and its controlled entities, except where the liability arises out of conduct involving a lack of good faith.

The Company has paid premiums to insure each of the 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, other than conduct involving a wilful breach of duty in relation to the Consolidated Group. The amount of the premium was $8,880 for all Directors.

Options

At the date of this report, the unissued ordinary shares of Firestrike Resources Limited under option are as follows;

Date of Expiry		Exercise Price	Number Under Option
31/12/2016	listed	4 cents	16,300,000

During the year ended 30 June 2014, no ordinary shares of Firestrike Resources Limited were issued on the exercise of options granted under any Firestrike Resources Limited Employee Option Plan.

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

Proceedings on Behalf of the 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 period.

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

Future Developments

Other than as referred to in this report, further information as to likely developments in the operations of the Consolidated Group and expected results of those operations would, in the opinion of the Directors, be speculative and prejudicial to the interests of the Consolidated Group and its shareholders.

Auditor’s Independence Declaration

The Auditor’s independence declaration for the year ended 30 June 2014 has been received and can be found on page 30 of the Directors’ report.

Non-Audit Services

No amounts were paid to the auditor for non-audit services during the year.

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

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David Holden Managing Director

30 September 2014

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FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

CORPORATE GOVERNANCE STATEMENT

The Board of Directors is responsible for the corporate governance of the Consolidated Group. The Board guides and monitors business activities and affairs of the Consolidated Group on behalf of the shareholders by whom they are elected and to whom they are accountable. The Consolidated Group has adopted systems of control and accountability as the basis for the administration of corporate governance. The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Consolidated Group’s needs. The Corporate Governance Statement has been structured with reference to ASX Corporate Governance Council’s (“council”) “Principles of Good Corporate Governance and Best Practise Recommendations” to the extent that they are applicable to the Consolidated Group.

Information about the Consolidated Group’s corporate governance practises are set out below.

BOARD OF DIRECTORS

Role of the Board

The Board’s primary role is the protection and enhancement of long-term shareholder value.

To fulfil this role, the Board is responsible for the overall corporate governance of the Consolidated Group including formulating its strategic direction, approving and monitoring capital expenditure, setting remuneration, appointing, removing and creating succession policies for directors and senior executives, establishing and monitoring the achievement of management’s goals and ensuring the integrity of internal control and management information systems. It is also responsible for approving and monitoring financial and other reporting.

Board Processes

The Board has established a framework for the management of the Consolidated Group including a system of internal control, a business risk management process and appropriate ethical standards.

The full Board schedules meetings, including strategy meetings and any extraordinary meetings, as necessary to address any specific significant matters that may arise. The agenda for meetings is prepared in conjunction with the Chairman and Company Secretaries. Standing items include the management report, financial reports, strategic matters, governance and compliance. Submissions are circulated in advance.

The Company is not currently considered to be of a size, nor is its affairs of such complexity to justify the establishment of separate Board committees, including a Nomination Committee, Remuneration Committee or an Audit Committee. Accordingly, all matters that may be considered by such committees are dealt with by the full Board. Details of the Board’s procedures in respect to each of these areas are further outlined within the Corporate Governance Statement below - see Nomination Committee, Remuneration Committee and Audit Committee sections respectively.

Director Education

The Consolidated Group has a formal process to educate new directors about the nature of the business, current issues, the corporate strategy and the expectations of the Consolidated Group concerning performance of directors. Directors also have the opportunity to visit Consolidated Group facilities and meet with management

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CORPORATE GOVERNANCE STATEMENT

to gain a better understanding of business operations. Directors are given access to continuing education opportunities to update and enhance their skills and knowledge.

Independent Professional Advice and Access to Company Information

Each Director has the right of access to all relevant Company information and to the Consolidated Group’s executives and, subject to prior consultation with the Chairman, may seek independent professional advice from a suitably qualified adviser at the Consolidated Group’s expense. The Director must consult with an adviser suitably qualified in the relevant field, and obtain the Chairman’s approval of the fee payable for the advice before proceeding with the consultation. A copy of the advice received by the Director is made available to all other members of the Board.

Composition of the Board

The names of the Directors of the Company in office at the date of this report are set out in the Directors’ Report on page 4.

The composition of the Board is determined using the following principles:

• A minimum of three directors, with a broad range of expertise both nationally and internationally.

• Directors having extensive knowledge of the Consolidated Group’s industries, and those which do not, have extensive expertise in significant aspects of auditing and financial reporting, or risk management and financing of public companies.

The roles of Chairman and Managing Director are not to be exercised by the same individual.

Board members have experience in the management of public companies. The Board currently does not have any independent directors as recommended by the ASX Corporate Governance Council.

The Managing Director is David Holden and the Chairman is Roger Steinepreis.

The Consolidated Group has not appointed a Chief Executive Officer. The role will be filled by the Managing Director, and the directors consider that, given the current size and stage of development of the Consolidated Group, the current structure is appropriate for the effective execution of the Board’s responsibilities. The directors periodically monitor the need to appoint additional independent directors.

Chairman

The Consolidated Group is not currently considered to be of a size, nor is its affairs of such complexity to justify the need for an independent chairman. The chairman has been selected to bring specific skills and industry experience relevant to the Consolidated Group.

NOMINATION COMMITTEE

The Board considers that a formally constituted Nomination Committee is not appropriate as the Board, as part of its usual role, oversees the appointment and induction process for directors, and the selection, appointment and succession planning process of the Consolidated Group’s executive officers. The Board considers the appropriate skill mix, personal qualities, expertise and diversity of each position. When a vacancy exists or there

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CORPORATE GOVERNANCE STATEMENT

is a need for particular skills, the Board determines the selection criteria based on the skills deemed necessary. The Board identifies potential candidates and may take advice from an external consultant. The Board then appoints the most suitable candidate. Board candidates must stand for election at the next general meeting of shareholders.

The chairman of the Board continually reviews the effectiveness of the Board, individual directors, and senior executives. The other Directors have an opportunity to contribute to the review process. The reviews generate recommendations to the Board, which votes on them. Directors displaying unsatisfactory performance are required to retire.

REMUNERATION COMMITTEE

The Board considers that a formally constituted Remuneration Committee is not appropriate as the Board, as part of its usual role, oversees the appointment and remuneration of Directors and the Consolidated Group’s executive officers. Remuneration levels are competitively set to attract and retain appropriately qualified and experienced directors and senior executives. The Board may seek independent advice on the appropriateness of remuneration packages, given trends in comparative companies both locally and internationally. Remuneration packages include a mix of fixed remuneration, performance-based remuneration, and equity-based remuneration.

The remuneration structures explained below are designed to attract suitably qualified candidates, and to affect the broader outcome of maximising the Consolidated Group’s profitability. The remuneration structures take into account:

Overall level of remuneration for each director and executive;
The executive’s ability to control the performance of the relevant area; and
The amount of incentives within each executive’s remuneration.

Non-executive Directors may receive a base fee and can be remunerated by way of share and option issues approved under a resolution at a general meeting of shareholders.

The Board has no established retirement or redundancy schemes.

AUDIT COMMITTEE

The Consolidated Group is not currently considered to be of a size, nor is its affairs of such complexity to justify the establishment of a separate Audit Committee. Whilst the Consolidated Group does not have a formally constituted Audit Committee, the Board, as part of its usual role, undertakes audit related responsibilities including:

• Reviewing the annual and interim financial reports and other financial information distributed externally. This includes approving new accounting policies to ensure compliance with Australian Accounting Standards and generally accepted accounting principles, and assessing whether the financial information is adequate for shareholders’ needs;

• Assessing corporate risk assessment processes;

• Assessing whether non-audit services provided by the external auditor are consistent with maintaining the external auditor’s independence. The external auditor provides an annual declaration of independence which is

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consistent with Code of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board;

• Addressing any matters outstanding with the auditors, the Australian Taxation Office, the Australian Securities and the Investments Commission, Australian Securities Exchange and financial institutions;

• Reviewing the nomination and performance of the external auditor. The external audit engagement partner will be rotated every five years;

• Assessing the adequacy of the internal control framework and the Consolidated Group’s code of ethical standards;

• Monitoring the procedures to ensure compliance with the Corporations Act 2001 and the ASX Listing Rules and all other regulatory requirements.

The directors review the performance of the external auditors on an annual basis and normally meet with them during the year to:

• Discuss the external audit plans, identify any significant changes in structure, operations, internal controls or accounting policies likely to impact the financial report and to review the fees proposed for the audit work to be performed;

• Review the annual and half-year reports prior to lodgement with the ASX, and any significant adjustments required as a result of the auditor’s findings, prior to announcement of the result.

The Board monitors the need to form an Audit Committee on a periodic basis.

RISK MANAGEMENT

Overview of the Risk Management System

The Board adopts practices designed to identify significant areas of business risk and to effectively manage those risks in accordance with the Consolidated Group’s risk profile. This includes assessing, monitoring and managing operational, financial reporting and compliance risks for the Consolidated Group. The Consolidated Group is not of a size nor is its affairs of such complexity to justify the establishment of a formal system for reporting risk management and associated compliance and controls. Instead, a director, in accordance with Consolidated Group policy, approves all expenditure, is intimately acquainted with all operations and reports all relevant issues to the other Directors at the directors’ meetings. The Company Secretary has declared to the Board, that the aforementioned system is working efficiently and effectively. The operational and other compliance risk management have also been assessed and found to be operating efficiently and effectively. All risk assessments covered the entire part of the financial period that the Consolidated Group operated and the period up to the signing of the annual financial report for all material operations in the Consolidated Group.

Risk Profile

The Consolidated Group is not currently considered to be of a size, nor is its affairs of such complexity to justify the establishment of a separate Risk Management Committee. Instead, the Board, as part of its usual role and through direct involvement in the management of the Consolidated Group’s operations ensures risks are

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CORPORATE GOVERNANCE STATEMENT

identified, assessed and appropriately managed. Where necessary, the Board draws on the expertise of appropriate external consultants to assist in dealing with or mitigating risk.

Major risks arise from such matters as actions by competitors, government policy changes, difficulties in sourcing raw materials, the robustness of the technologies being used or proposed to be used, environment, occupational health and safety, financial reporting and the purchase, development and use of information systems.

Risk Management, Compliance and Control

The Board acknowledges that it is responsible for the overall internal control framework, but recognises that no cost effective internal control system will preclude all errors and irregularities.

Practices have been established to ensure:

Capital expenditure and revenue commitments above a certain size obtain prior Board approval;
Financial exposures are controlled, including the potential use of derivatives;
Occupational health & safety standards and management systems are monitored and reviewed to achieve high
standards of performance and compliance with regulations;
Business transactions are properly authorised and executed;
The quality and integrity of personnel (see below);
Financial reporting accuracy and compliance with the financial reporting regulatory framework (see below); and
Environmental regulation compliance (see below).

Quality and Integrity of Personnel

The Consolidated Group conducts a comprehensive review of the ability and experience of potential employees prior to appointment. Informal appraisals will be conducted regularly with continuous feedback and on the job monitoring and training for all employees. Formal appraisals will be conducted at least annually for all employees. Training and development and appropriate remuneration and incentives with regular performance reviews will create an environment of co-operation and constructive dialogue with employees and senior management.

Financial Reporting

The Company Secretary has declared to the Board that the Consolidated Group’s financial reports are founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board.

Following the reporting year, monthly actual results are reported against budgets approved by the Directors and revised forecasts for the year are prepared regularly.

Environmental Regulation

The Consolidated Group’s operations are subject to significant environmental regulation in relation to its operational activities. The Consolidated Group is committed to achieving a high standard of environmental performance. The Board is responsible for the regular monitoring of environmental exposures and compliance with environmental regulations.

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Internal Audit

The Consolidated Group does not have a formally established internal audit function. The Board ensures compliance with the internal controls and risk management procedures previously mentioned.

ETHICAL STANDARDS

All Directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Consolidated Group.

Conflict of Interest

Directors must keep the Board advised, on an ongoing basis, of any interest that could potentially conflict with those of the Consolidated Group. The Board has developed procedures to assist Directors to disclose potential conflicts of interest.

Where the Board believes that a significant conflict exists for a Director on a Board matter, the Director concerned is not present at the meeting whilst the item is considered.

Code of conduct

The Consolidated Group has established a Code of Conduct (Code), which aims to develop a consistent understanding of, and approach to, the desired standards of conduct and behaviour of the Directors, officers, employees and contractors (collectively, the employees) in carrying out their roles for the Consolidated Group. Through this Code, the Consolidated Group seeks to encourage and develop a culture of professionalism, honesty and responsibility in order to maintain and enhance our reputation as a valued employer, business operator and "corporate citizen". The Code is designed to broadly outline the ways in which the Consolidated Group wishes to conduct its business. The Code does not cover every possible situation that employees may face, but is intended to provide employees with a guide to taking a common sense approach to any given situation, within an overall framework.

Trading in the Consolidated Group’s securities by Directors and employees

The Consolidated Group has established a Security Trading Policy that is provided to all Directors and employees on commencement.

The constitution permits Directors to acquire shares in the Company. Consolidated Group policy prohibits Directors from dealing in shares whilst in possession of price sensitive information. Directors must notify the Company Secretary once they have bought or sold shares in the Company or exercised options over ordinary shares.

The Trading Policy also covers a “Block Out Period” of two weeks prior and 24 hours after the release of the following:

Consolidated Group’s Annual Financial Report
Consolidated Group’s Interim Financial Report
Consolidated Group’s Quarterly Report

The full Securities Trading Policy can be viewed on the Company’s website.

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CORPORATE GOVERNANCE STATEMENT

In accordance with the provisions of the Corporations Act 2001 and the Listing Rules of the Australian Securities Exchange, the Company on behalf of the Directors must advise the Australian Securities Exchange of any transactions conducted by them in shares and/or options in the Company.

Diversity

The Consolidated Group believes that the promotion of diversity on Boards, in senior management and within the organisation generally:

broadens the pool for recruitment of high quality Directors and employees;
is likely to support employee retention;
through the inclusion of different perspectives, is likely to encourage greater innovation; and
is socially and economically responsible governance practice.

Currently, Firestrike has no females in senior positions. There are no female Directors. Given the present size of the Consolidated Group, there are no plans to establish measurable objectives for achieving further gender diversity at this time. The need for establishing and assessing measurable objectives for achieving gender diversity will be re-assessed as the size of the Consolidated Group increases.

COMMUNICATION WITH SHAREHOLDERS

The Board has formally documented the Consolidated Group’s continuous disclosure procedures and established a Compliance policy. The Board, as part of its usual role, will provide shareholders with information using comprehensive continuous disclosure processes which includes identifying matters that may have a material effect on the price of the Company’s securities, notifying them to the ASX and issuing media releases.

In summary, the continuous disclosure processes will operate as follows:

• The Chairman and the Company Secretary are responsible for all communications with the ASX. Matters that may have an effect on the price of the Company’s securities are advised to the ASX on the day they are discovered. Senior executives monitor all areas of the Consolidated Group’s internal and external environment;

The full annual financial report is made available to all shareholders, and includes relevant information about
the operations of the Consolidated Group during the year, changes in the state of affairs and details of future developments;
The half-yearly financial report contains summarised financial information and a review of the operations of the
Consolidated Group during the period. The half-year reviewed financial report is lodged with the ASX, and sent to any shareholder who requests it;
Proposed major changes in the Consolidated Group which may impact on share ownership rights are submitted
to a vote of shareholders;
All announcements made to the market, and related information (including information provided to analysts
and the media), will be released to the ASX; and
The external auditor attends the Annual General Meeting to answer any questions concerning the audit and the
content of the Auditor’s Report.

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CORPORATE GOVERNANCE STATEMENT

The Board encourages full participation of shareholders at the Annual General Meeting, to ensure a high level of accountability and identification with the Consolidated Group’s strategy and goals. Important issues are presented to the shareholders as single resolutions.

The shareholders are requested to vote on the appointment and aggregate remuneration of Directors, the granting of options and shares to Directors and changes to the constitution. Copies of the constitution are available to any shareholder on request.

Other Information

Further information relating to the Consolidated Group’s corporate governance practices and policies are publicly available on the Company’s web site at www.firestrike.com.au.

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the consolidated financial report of Firestrike Resources Limited for the year ended 30 June 2014, I declare that to the best of my knowledge and belief, there have been no contraventions of:

a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b) any applicable code of professional conduct in relation to the audit.

==> picture [169 x 57] intentionally omitted <==

Perth, Western Australia 30 September 2014

L Di Giallonardo Partner

==> picture [16 x 14] intentionally omitted <==

HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: [email protected]. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of

International, a worldwide organisation of accounting firms and business advisers.

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014

	Note	Consolidated	Group
		2014	2013
		$	$
Revenue	2	27,743	145,981
Administrative expenses		(246,632)	(262,492)
Impairment of exploration expenditure and project
acquisition costs		(818,441)	(425,981)
Financial and compliance expenses		(149,027)	(130,947)
Legal expenses		(4,990)	(27,666)
Travel and accommodation expenses		(11,094)	(6,953)
Other expenses		(65,056)	(53,972)
Loss before income tax	3	(1,267,497)	(762,030)
Income tax expense	4	-	-
Loss from continuing operations		(1,267,497)	(762,030)
Discontinued operations
Loss after tax from discontinued operations	10	-	(974,112)
Loss for the year		(1,267,497)	(1,736,142)
Other comprehensive income/loss
Items that may be classified to profit or loss:
Exchange differences on translation of foreign
operations		29,351	(108,357)
Total comprehensive loss for the year		(1,238,146)	(1,844,499)

Basic loss per share (cents per share)	7	(3.9)	(5.4)
Basic loss per share from continuing operations		(3.9)	(2.4)
(cents per share)

The accompanying notes form part of the financial report

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

	Note	Consolidated Group	Consolidated Group
		2014	2013
		$	$
CURRENT ASSETS
Cash and cash equivalents	8	327,084	784,591
Other receivables	9	17,702	27,011
TOTAL CURRENT ASSETS		344,786	811,602
NON-CURRENT ASSETS
Exploration and evaluation expenditure	10	253,840	704,655
Property, plant and equipment		1,888	3,778
TOTAL NON-CURRENT ASSETS		255,728	708,433
TOTAL ASSETS		600,514	1,520,035
CURRENT LIABILITIES
Trade and other payables	11	69,244	82,341
TOTAL CURRENT LIABILITIES		69,244	82,341
TOTAL LIABILITIES		69,244	82,341
NET ASSETS		531,270	1,437,694
EQUITY
Issued capital	12	4,160,284	3,851,523
Option premium reserve	12	22,961	-
Accumulated losses		(3,572,969)	(2,305,472)
Foreign currency translation reserve	12	(79,006)	(108,357)
TOTAL EQUITY		531,270	1,437,694

The accompanying notes form part of the financial report

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FIRESTRIKE RESOURCES LIMITED ANNUAL REPORT 2014

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

Consolidated Group	Issued	Option	Accumulated	Foreign	Total
	Capital	Premium	Losses	Currency
		Reserve		translation
				reserve
	$	$	$	$	$
Balance 1 July 2012	3,851,523	-	(569,330)	-	3,282,193
Loss for the year		-	(1,736,142)	-	(1,736,142)
Other comprehensive loss		-	-	(108,357)	(108,357)
Total comprehensive loss		-	(1,736,142)	(108,357)	(1,844,499)
Balance at 30 June 2013	3,851,523	-	(2,305,472)	(108,357)	1,437,694
Balance 1 July 2013	3,851,523	-	(2,305,472)	(108,357)	1,437,694
Loss for the year		-	(1,267,497)	-	(1,267,497)
Other comprehensive income		-	-	29,351	29,351
Total comprehensive loss		-	(1,267,497)	29,351	(1,238,146)
Shares and options issued during	308,761	22,961	-	-	331,722
the year
(net of capital raising costs)
Balance at 30 June 2014	4,160,284	22,961	(3,572,969)	(79,006)	531,270

The accompanying notes form part of the financial report

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FIRESTRIKE RESOURCES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014

	Note	Consolidated	Group
		2014	2013
			$
		$
CASH FLOWS FROM OPERATING ACTIVITIES
Loan recovered		16,740	-
Payments to suppliers		(453,913)	(487,331)
Interest received		15,570	53,094
Net cash used in operating activities	13	(421,603)	(434,237)
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration expenditure		(367,626)	(1,090,426)
Net cash used in investing activities		(367,626)	(1,090,426)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares and options		346,600	-
Capital raising costs paid		(14,878)	-
Net cash inflows from financing activities		331,722	-

Net decrease in cash held		(457,507)	(1,524,663)
Cash at beginning of financial year		784,591	2,309,254
Cash at end of financial year	8	327,084	784,591

The accompanying notes form part of the financial report

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ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

These general purpose financial statements comprise the financial report and notes of Firestrike Resources Limited, a listed Australian company incorporated and domiciled in Western Australia. The Company was listed on the ASX on 26 July 2011.

Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting (AIFRS), Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with AIFRS ensures that the financial report and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

The financial report was authorised for issue on 30 September 2014.

The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Going Concern

The Consolidated Group has incurred a net loss after tax of $1,267,497 for the year ended 30 June 2014 (after booking an impairment expense of $818,441 in relation to exploration expenditure and project acquisition costs). The Consolidated Group experienced cash outflows from operating and investing activities of $457,507 for the year and at balance date had cash assets of $327,084 and net current assets of $275,542.

The ability of the Consolidated Group to continue as a going concern is principally dependent upon the management of expenditure and the raising of sufficient additional capital to fund exploration expenditure, other principal activities and working capital. The directors believe that the Consolidated Group will be able to manage its expenditure in the 12 months from the date this financial report is signed, or if required, will be successful in raising sufficient capital in that period such that the Consolidated Group will continue to be a going concern. Should the Consolidated Group not be able to manage its expenditure or raise sufficient capital in that period, there is a material uncertainty that may cast significant doubt on the ability of the Consolidated Group to continue as a going concern and, therefore, whether it will be able to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

a. Income Tax

The income tax expense/(benefit) for the year comprises current income tax expense/(benefit) and deferred tax expense/(benefit).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities/(assets) are therefore measured at the amounts expected to be paid to/(recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the period as well unused tax losses.

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NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

a. Income Tax (continued)

Current and deferred income tax expense/(benefit) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial report. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

b. Financial Instruments

Recognition and Initial Measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the Consolidated Group becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of noncash assets or liabilities assumed, is recognised in profit or loss.

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NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Classification and Subsequent Measurement

i. Financial assets at fair value through profit or loss

Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changes in fair value are included in profit or loss in the period in which they arise.

ii. Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method.

iii. Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Consolidated Group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.

iv. Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that are not classified in any of the other categories. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

v. Financial Liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method.

c. Impairment of Assets

At each reporting date, the Directors review the carrying values of the Consolidated Group’s tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where it is not possible to estimate the recoverable amount of an individual asset, the Directors estimate the recoverable amount of the cash-generating unit to which the asset belongs.

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NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

d. Provisions

Provisions are recognised when the Consolidated Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

e. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of 12 months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities in the statement of financial position.

f. Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.

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

g. Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Consolidated Group during the reporting period, which remains unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability.

h. Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

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FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

i. Comparative Figures

Where required by Accounting standards, comparative figures have been adjusted to conform to changes in the presentation for the current financial year.

j. Critical Accounting Estimates and Judgments The Directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Consolidated Group.

Key Estimates — Impairment

The Directors assess impairment at each reporting date by evaluating conditions specific to the Consolidated Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

Key Estimates – Income tax

Balances disclosed in the financial report and the notes thereto related to taxation are based on the best estimates of Directors. These estimates take into account both the financial performance and position of the Consolidated Group as they pertain to current income taxation legislation, and the Directors’ understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents that Directors’ best estimate, pending an assessment by the Australian Taxation Office.

Key Judgement – Environmental issues

Balances disclosed in the financial report and notes thereto are not adjusted for any pending or enacted environmental legislation, and the Directors’ understanding thereof. At the current stage of the Consolidated Group’s development and its current environmental impact the Directors believe such treatment is reasonable and appropriate.

k. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of Firestrike Resources Limited.

l. Trade and other receivables

Trade receivables are measured on initial recognition at fair value and are subsequently measured at amortised cost using the effective interest rate method, less any allowance for impairment. Trade receivables are generally due for settlement within periods ranging from 15 days to 30 days.

PAGE 39

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

l. Trade and other receivables (continued)

Impairment of trade receivables is continually reviewed and those that are considered to be uncollectible are written off by reducing the carrying amount directly. An allowance account is used when there is objective evidence that the Consolidated Group will not be able to collect all amounts due according to the original contractual terms. Factors considered by the Consolidated Group in making this determination include known significant financial difficulties of the debtor, review of financial information and significant delinquency in making contractual payments to the Consolidated Group. The impairment allowance is set equal to the difference between the carrying amount of the receivable and the present value of estimated future cash flows, discounted at the original effective interest rate. Where receivables are short-term discounting is not applied in determining the allowance.

The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the statement of comprehensive income.

m. Employee leave benefits

Wages, salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the balance date are recognised in other payables in respect of employees’ services up to the balance date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the balance date. Consideration is given to expected future wage and salary levels, experience of employee departures, and period of service. Expected future payments are discounted using market yields at the balance date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

n. Issued capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a new business are not included in the cost of acquisition as part of the purchase consideration.

PAGE 40

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

o. Earnings per share

Basic earnings per share is calculated as net profit/loss attributable to members of the Company, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted earnings per share is calculated as net profit/loss attributable to members of the Company, adjusted for:

costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been
recognised as expenses;
and other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares;
divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for
any bonus element.

p. Exploration and evaluation expenditure

Exploration and evaluation expenditure in relation to each separate area of interest is recognised as an exploration and evaluation asset in the year in which it is incurred where the following conditions are satisfied:

(i) the rights to tenure of the area of interest are current; and

(ii) at least one of the following conditions is also met:

(a) the exploration and evaluation expenditure is expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

PAGE 41

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

p. Exploration and evaluation expenditure (continued)

Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development.

q. Adoption of new and revised standards

Changes in accounting policies on initial application of Accounting Standards

In the year ended 30 June 2014, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group’s operations and effective for the current annual reporting period.

It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group’s business and, therefore, no change is necessary to Consolidated Group accounting policies.

The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year ended 30 June 2014. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group’s business and, therefore, no change necessary to Consolidated Group accounting policies.

r. Foreign currency translation

Both the functional and presentation currency of Firestrike Resources Limited is Australian dollars. Each entity in the Consolidated Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance date.

All exchange differences in the consolidated financial report are taken to profit or loss with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These are taken directly to equity until the disposal of the net investment, at which time they are recognised in profit or loss.

Tax charges and credits attributable to exchange differences on those borrowings are also recognised in equity. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

The functional currency of Firestrike Resources Incorporated is United States dollars.

PAGE 42

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

r. Foreign currency translation (continued)

As at the balance date the assets and liabilities of this subsidiary is translated into the presentation currency of Firestrike Resources Limited at the rate of exchange ruling at the balance date and income and expense items are translated at the average exchange rate for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used.

The exchange differences arising on the translation are taken directly to a separate component of equity, being recognised in the foreign currency translation reserve.

On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular foreign operation is recognised in profit or loss.

In addition, in relation to the partial disposal of a subsidiary that does not result in the Consolidated Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to noncontrolling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or jointly controlled entities that do not result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.

s. Share based payments

The Company has issued shares to third parties for the acquisition of tenements and for entering into joint venture arrangements. The cost of these equity-settled transactions has been measured by reference to the fair value of the equity instruments granted, namely the market value of Firestrike’s shares on the dates when agreements were reached to issue those shares.

t. Parent entity financial information

The financial information for the parent entity, Firestrike Resources Limited, disclosed in note 23 has been prepared on the same basis as the consolidated financial statements, except as set out below.

(i) Investments in subsidiaries, associates and joint venture entities

Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s financial statements. Dividends received from associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying amount of these investments.

(ii) Share-based payments

The grant by the company of options over its equity instruments to the employees of subsidiary undertakings in the group is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services received, measured by reference to the grant date fair value, is recognised over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity.

PAGE 43

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 2: REVENUE

NOTE 2: REVENUE
	Consolidated Group
	2014	2013
	$	$
Other revenue:
Interest received	11,003	51,585
Foreign exchange gain	-	94,396
Other	16,740	-
Total revenue	27,743	145,981

NOTE 3: LOSS FOR THE YEAR

NOTE 3: LOSS FOR THE YEAR
	Consolidated Group
	2014	2013
	$	$
Significant expenses:
Accounting & secretarial	74,410	73,328
Auditor’s remuneration	30,000	28,850
Consultant fees	39,475	34,075
Directors’ fees	117,480	117,480
Due diligence	27,994	53,972
Exploration expenditure impairment	818,441	974,112
General administrative	22,209	31,368
Legal	4,990	27,666
Promotions & advertising	1,281	17,970
Rent	67,187	61,600
Share registry fees	22,971	6,870
Travel	11,094	6,953
Write off project acquisition costs	-	425,981

PAGE 44

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 4: INCOME TAX EXPENSE

NOTE 4: INCOME TAX EXPENSE
	Consolidated	Group
	2014	2013
	$	$
(a) Income tax expense
Current tax	-	-
Deferred tax	-	-
(b) Reconciliation of income tax expense to prima facie tax payable
The prima facie tax payable on profit/loss from ordinary activities
before income tax is reconciled to the income tax expense as
follows:
Prima facie tax on operating loss at 30%	(380,249)	(520,843)
Add / (Less)
Tax effect of:
Other non-allowable items	6,981	10,499
Other non assessable income	-	(1,370)
Other deductible items	(4,050)	(4,800)
Capitalised exploration expenditure	(76,152)	(211,397)
Unused tax losses not recognised as deferred assets	453,470	727,911
Income tax attributable to operating loss	-	-
Balance of franking account at year end
(c) Unrecognised deferred tax assets	-	-
Unused Australian tax losses for which no deferred tax asset has been recognised	1,259,717	806,247

Potential deferred tax assets attributable to tax losses carried forward have not been brought to account at 30 June 2014 because the Directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this current point in time. These benefits will only be obtained if:

i. The Consolidated Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss to be realised;

ii. The Consolidated Group continues to comply with conditions for deductibility imposed by law; and

PAGE 45

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 4: INCOME TAX EXPENSE (CONTINUED)

iii. No changes in tax legislation adversely affect the Consolidated Group in realising the benefit from the deductions for the losses.

(d) Unrecognised deferred tax liabilities

Deferred tax liabilities have not been recognised in respect of the following items:

	Consolidated Group
	2014	2013
	$	$
Capitalised exploration expenditure	76,152	211,397

NOTE 5 : KEY MANAGEMENT PERSONNEL

Names and positions held of Consolidated Group key management personnel (KMP) in office at any time during the financial year are:

Key Management Person Position

Roger Steinepreis	Non Executive Chairman
David Holden (*)	Managing Director
Paul Lloyd	Non Executive Director

The total of remuneration paid to KMP of the Consolidated Group during the period are as follows:

Consolidated Group

	2014	2013
	$	$
Short-term employee benefits	289,980	293,480
	289,980	293,480

(*)The Managing Director’s remuneration is outlined in a formal Consultancy Agreement with Shackleton Capital Pty Ltd

PAGE 46

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 6: AUDITOR’S REMUNERATION

NOTE 6: AUDITOR’S REMUNERATION
	Consolidated Group
	2014	2013
		$
	$
Remuneration of the auditor for:
— auditing or reviewing the financial report	27,500	28,850
— other services	-	-
	27,500	28,850

NOTE 7: EARNINGS/LOSS PER SHARE

NOTE	7: EARNINGS/LOSS PER SHARE
		Consolidated	Group
		2014	2013
		$	$
a.	Reconciliation of earnings to profit or loss
	Loss used to calculate basic EPS	(1,267,497)	(1,736,142)
		No.	No.
b.	Weighted average number of ordinary shares outstanding	32,421,835	32,000,000
	during the period used in calculating basic EPS
		32,421,835	32,000,000
NOTE	8: CASH AND CASH EQUIVALENTS

NOTE 8: CASH AND CASH EQUIVALENTS
	Consolidated Group
	2014	2013
	$	$
Cash at bank and in hand	327,084	27,157
Short-term bank deposits	-	757,434
	327,084	784,591
The effective interest rate on short-term bank deposits was varying
between 2.88% to 4.45%.
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement
of financial position as follows:
Cash and cash equivalents	327,084	784,591
	327,084	784,591

PAGE 47

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 9: OTHER RECEIVABLES

NOTE 9: OTHER RECEIVABLES
	Consolidated Group
	2014	2013
	$	$
CURRENT
Interest receivable	-	4,567
GST receivable	10,398	14,692
Prepaid insurance	7,304	7,752
	17,702	27,011
NOTE 10: EXPLORATION AND EVALUATION EXPENDITURE
	Consolidated Group
	2014	2013
	$	$
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at 1 July	704,655	1,014,322
Exploration expenditure	367,626	1,090,426
Impairment of project acquisition costs	-	(425,981)
Impairment of exploration expenditure(i)	(818,441)	(974,112)
	253,840	704,655

(i) The Board assessed the carrying value of the Nabberu, Grants Creek and Angelo projects and resolved that due to the limited funds available to commit to exploration on these projects, this expenditure be fully impaired at balance date. (2013: relates to the withdrawal from the Elephant Canyon Joint Venture In Utah USA – disclosed below as a discontinued operation).

The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on the successful development and commercial exploration or sale of the respective areas.

Discontinued Operation

On 2 July 2013, the Company announced that it had withdrawn from the Elephant Canyon Joint Venture. Exploration expenditure carried forward in respect of this project was fully impaired at 30 June 2013. However, this did not constitute a discontinued operation until 2 July 2013. As a result, the comparative amount relating to the impairment of this project ($974,112) has been reclassified as a discontinued operation, in the financial report for the year ended 30 June 2014.

The cash flows relating to the discontinued operation for the year ended 30 June 2013 are as follows:

Net cash used in investing activities (exploration expenditure) $856,753

PAGE 48

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 11: TRADE AND OTHER PAYABLES

NOTE 11: TRADE AND OTHER PAYABLES
	Consolidated Group
	2014	2013
	$	$
CURRENT
Trade payables*	45,919	47,346
Sundry payables and accrued expenses	23,325	34,995
	69,244	82,341

*Terms of trade are in line with normal commercial terms (usually 30 to 60 days)

NOTE 12: ISSUED CAPITAL AND RESERVES

NOTE 12: ISSUED CAPITAL AND RESERVES
	Consolidated Group
	2014	2013
	$	$
Issued Capital
Opening balance	3,851,523	3,851,523
15,999,985 fully paid ordinary shares – Rights issue	320,000	-
Capital raising costs	(11,239)	-
At reporting date	4,160,284	3,851,523
The Company has issued share capital amounting to 47,999,985 ordinary shares of no par value.
	Consolidated Group
	2014	2013
	No.	No.
Ordinary shares
Opening balance	32,000,000	32,000,000
Fully paid shares issued during the period
— 5 June 2014 (Rights issue at $0.02)	5,998,685	-
— 30 June 2014 (Rights issue shortfall at $0.02)	10,001,300	-
At reporting date	47,999,985	32,000,000
At shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each
shareholder has one vote on a show of hands.
	Consolidated Group
	2014	2013
	$	$
Option Premium Reserve
Opening balance	-	-
Options issued during the period (Rights issue at $0.002)	26,600	-
Capital raising costs	(3,639)	-
At reporting date	22,961	-

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ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 12: ISSUED CAPITAL AND RESERVES (CONTINUED)

	Consolidated	Group
	2014	2013
	No.	No.
Options
Opening balance	-	19,000,000
Options issued during period (Rights issue at $0.002)	13,300,000	-
Options over ordinary shares cancelled during the period	-	(19,000,000)
At reporting date	13,300,000	-
	Consolidated	Group
	2014	2013
	$	$
Foreign Currency Translation Reserve
Opening balance	(108,357)	-
Effect of translation of foreign operations	29,351	(108,357)
At reporting date	(79,006)	(108,357)

NATURE AND PURPOSE OF RESERVES

Option Premium Reserve

This reserve records the proceeds from option rights issues net of capital raising costs.

Foreign Currency Translation Reserve

This reserve is used to record exchange differences arising from translation of the financial statements of foreign subsidiaries.

PAGE 50

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 12: ISSUED CAPITAL AND RESERVES (CONTINUED)

Capital risk management

The Consolidated Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders.

Due to the nature of the Consolidated Group’s activities, being mineral exploration, the Consolidated Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Consolidated Group’s capital risk management is the current working capital position against the requirements of the Consolidated Group to meet exploration programmes and corporate overheads. The Consolidated Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required. The working capital position of the Consolidated Group at 30 June 2014 is as follows:

2014 is as follows:
	Consolidated	Group
	2014	2013
	$	$
Cash and cash equivalents	327,084	784,591
Trade and other receivables	17,702	27,011
Trade and other payables and other liabilities	(69,244)	(82,341)
Working capital position	275,542	729,261
NOTE 13: CASH FLOW INFORMATION
Loss after income tax	(1,267,497)	(1,736,142)
Cash flows excluded from loss attributable to operating activities
Non cash items
- Depreciation	1,890	3,780
- Foreign exchange translation	29,351	(108,357)
- Exploration expenditure impairment	818,441	974,112
- Write off project acquisition costs	-	425,981
Changes in assets and liabilities
- Increase/(decrease) in debtor and income accrual	8,861	1,509
- Increase/(decrease) in trade payables and accruals	(13,097)	6,167
- (Increase)/decrease in trade receivables and prepayments	448	(1,287)
Cash flows used in operating activities	(421,603)	(434,237)

PAGE 51

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 14: RELATED PARTY TRANSACTIONS

NOTE 14: RELATED PARTY TRANSACTIONS
	Consolidated Group
	2014	2013
	$	$
Transactions with related parties:
Legal fees paid to Steinepreis Paganin, a legal firm in which
Roger Steinepreis has an interest	19,868	27,666
Amounts owing to related parties (included in trade and other payables)	11,180	35,162

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

NOTE 15: INTEREST IN CONTROLLED ENTITY

The parent had the following controlled	entity:		% Held
Name of the subsidiary	Place of incorporation	Class of shares	2014	2013
Firestrike Resources Incorporated	USA	Ordinary	100%	100%

The controlled entity was incorporated in 2012 with a nominal share capital of US$10.

NOTE 16: JOINT VENTURE

During the previous year, a controlled entity, Firestrike Resources Incorporated, had a 51% interest in the Firestar LLC Joint Venture, whose principal activity is exploring for gold and base minerals in Utah, USA. The Joint Venture Operating Agreement was signed on 28 May 2012 with an initial capital contribution from Firestrike Resources Incorporated of US$100,000 and the issue of 1 million ordinary shares in Firestrike Resources Limited.

A first phase drilling program was completed during the 2013 year. After evaluation of the drilling results and additional exploration activities, a decision was made by the Directors to formally withdraw from the Elephant Canyon Joint Venture and that decision was communicated to shareholders on 2 July 2013. All carried forward expenditure relating to this joint venture was impaired in the 2013 year.

PAGE 52

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 17: OPERATING SEGMENTS

Segment Information

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

The Group is managed primarily on the basis of mining exploration and treasury activities. Operating segments are therefore determined on the same basis.

Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar economic characteristics.

Types of reportable segments

1) Tenement exploration and evaluation

The exploration of current projects and the evaluation of new ones are reported in this segment. Segment assets, including acquisition costs of exploration licences and all expenses related to the tenements are reported in this segment.

2) Treasury

The reporting relating to income from cash holdings is reported in this segment.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision maker with respect to operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.

Segment assets

Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.

Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets and intangible assets have not been allocated to operating segments.

Segment liabilities

Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group as a whole and are not allocated.

PAGE 53

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 17: OPERATING SEGMENTS (CONTINUED)

Unallocated items

The following items of revenue, expense, assets and liabilities are not allocated to operating segments, as they are not considered part of the core operations of any segment:

•net gains on disposal of available-for-sale investments;
•impairment of assets excluding exploration assets and other non-recurring items of revenue or expense;
•income tax expense;
•deferred tax assets and liabilities;
•trade payable and other payables;
•intangible assets.

•intangible assets.
(i) Segment performance
Year ended 30 June 2014
	Exploration and	Treasury	Total
	Evaluation
	$	$	$
Interest revenue	-	11,003	11,003
Other	16,740	-	16,740
Total segment revenue	16,740	11,003	27,743
Segment netprofit/(loss)before tax	(866,757)	11,003	(855,754)
Reconciliation of segment result to group net profit ( loss) before tax:
Foreign exchange gain			-
Administration expenses			(246,632)
Financial administration and compliance expenses			(149,027)
Legal expenses			(4,990)
Travel and accommodation expenses			(11,094)
Grouploss before tax			(1,267,497)
Year ended 30 June 2013
	Exploration and	Treasury	Total
	Evaluation
	$	$	$
Interest revenue	-	51,585	51,585
Total segment revenue	-	51,585	51,585
Segment netprofit/(loss)before tax	(1,454,065)	51,585	(1,402,480)
Reconciliation of segment result to group net profit ( loss) before tax:
Foreign exchange gain			94,396
Administration expenses			(262,492)
Financial administration and compliance expenses			(130,947)
Legal expenses			(27,666)
Travel and accommodation expenses			(6,953)
Grouploss before tax			(1,736,142)

PAGE 54

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 17: OPERATING SEGMENTS (CONTINUED)

(ii) Segment assets
30 June 2014
	Exploration and	Treasury	Total
	Evaluation
	$	$	$
Segments assets	253,840	344,786	598,626
Reconciliation of segment assets to group assets:
Property, plant & equipment	-	-	1,888
Total group assets from continuing operations	-	-	600,514
30 June 2013
	Exploration and	Treasury	Total
	Evaluation
	$	$	$
Segments assets	704,655	811,602	1,516,257
Reconciliation of segment assets to group assets:
Property, plant & equipment	-	-	3,778
Total group assets from continuing operations	-	-	1,520,035
(iii) Segment liabilities
30 June 2014
	Exploration and	Treasury	Total
	Evaluation
	$	$	$
Segments liabilities	-	-	-
Trade and other payables	-	-	69,244
Total group liabilities from continuing operations	-	-	69,244
30 June 2013
	Exploration and	Treasury	Total
	Evaluation
	$	$	$
Segments liabilities	-	-	-
Trade and other payables	-	-	82,341
Total group liabilities from continuing operations	-	-	82,341

PAGE 55

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 17: OPERATING SEGMENTS (CONTINUED)

(iv) Revenue by geographical region

Revenue attributable to external customers is disclosed below, based on the location of the external customer:

	30 June 2014	30 June 2013
	$	$
Australia	10,999	51,584
United States of America	16,744	1
Total revenue	27,743	51,585

(v) Assets by geographical region

The location of segment assets is disclosed below by geographical location of the assets:

	30 June 2014	30 June 2013
	$	$
Australia	339,123	1,514,373
United States of America	261,391	5,662
Total assets	600,514	1,520,035

PAGE 56

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 18: COMMITMENTS
Grants Creek Project(P80/1576, P80/1577, P80/1578,	P80/1579, P80/1580, P80/1582,	P80/1673)
	2014	2013
	$	$
Rent payable
- not later than 12 months	2,711	2,711
- between 12 months and 5 years	2,757	5,469
	5,468	8,180
Program of work expenditure	2014	2013
	$	$
- not later than 12 months	48,360	48,360
- between 12 months and 5 years	50,360	98,720
	98,720	147,080
Angelo Project (E80/2707)
	2014	2013
	$	$
Rent payable
- not later than 12 months	2,853	2,853
- between 12 months and 5 years	-	2,853
	2,853	5,706
Program of work expenditure	2014	2013
	$	$
- not later than 12 months	70,000	70,000
- between 12 months and 5 years	-	70,000
	70,000	140,000
Nabberu Project (EL/3225)
	2014	2013
	$	$
Rent payable
- not later than 12 months	8,547	2,853
- between 12 months and 5 years	34,188	2,853
	42,735	5,706
Program of work expenditure	2014	2013
	$	$
- not later than 12 months	70,000	70,000
- between 12 months and 5 years	280,000	70,000
	350,000	140,000

PAGE 57

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 19: CONTINGENCIES

There are no contingent assets or liabilities as at balance date.

NOTE 20: SHARE BASED PAYMENTS

There were no share based payments during the year.

NOTE 21: FINANCIAL RISK MANAGEMENT

a. Financial Risk Management Policies

The Consolidated Group’s financial instruments consist mainly of deposits with banks.

The main purpose of non-derivative financial instruments is to raise finance for Consolidated Group operations.

The Consolidated Group does not speculate in the trading of derivative instruments.

i. Treasury Risk Management

The Board meets on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

The Board’s overall risk management strategy seeks to assist the Consolidated Group in meeting its financial targets, whilst minimising potential adverse effects on financial performance.

Risk management policies are approved and reviewed by the Board on a regular basis.

PAGE 58

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 21: FINANCIAL RISK MANAGEMENT (CONTINUED)

ii. Financial Risk Exposures and Management

Interest rate risk

The Consolidated Group exposure to financial risk is limited to interest rate risk arising from assets and liabilities bearing variable interest rates. The weighted average interest rate on cash holdings is 3.85% at 30 June 2014. All other assets and liabilities are non interest bearing.

The Consolidated Group holds cash deposits with Australian banking financial institutions, namely the ANZ Bank. The ANZ Bank has an AA rating with Standard & Poors.

Liquidity risk

Liquidity risk arises from the possibility that the Consolidated Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Consolidated Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash and marketable securities are available to meet the current and future commitments of the Consolidated Group. Due to the nature of the Consolidated Group’s activities, being mineral exploration, the Consolidated Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. The Board of Directors constantly monitors the state of equity markets in conjunction with the Consolidated Group’s current and future funding requirements, with a view to initiating appropriate capital raisings as required. The financial liabilities of the Consolidated Group are confined to trade and other payables as disclosed in the Statement of Financial Position. All trade and other payables are non-interest bearing and due within 12 months of the reporting date. The Board manages liquidity risk by monitoring forecast cash flows against actual liquidity level on a regular basis

There are no unused borrowing facilities from any financial institution.

Credit risk

There no material amounts of collateral held as security at balance date.

Credit risk is reviewed regularly by the Board. It arises through deposits with financial institutions.

The Board monitors credit risk by actively assessing the rating quality and liquidity of counter parties. Only banks and financial institutions with an ‘A’ rating are utilised.

The Consolidated Group only invests in listed available-for-sale financial assets that have a minimum ‘A’ credit rating. Unlisted available-for-sale financial assets are not rated by external credit agencies. These are reviewed regularly by the Consolidated Group to ensure that credit exposure is minimised.

The credit risk for counterparties included in trade and other receivables at balance date is nil.

The Consolidated Group holds cash deposits with Australian banking financial institutions, namely the ANZ Bank. The ANZ Bank has an AA rating with Standard & Poors.

Price risk

The Consolidated Group is not exposed to commodity price risk as it is still operating at the exploration level.

b. Financial Instruments
i. Derivative Financial Instruments

Derivative financial instruments are not used by the Consolidated Group.

The Consolidated Group does not enter into swap contracts.

PAGE 59

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 21: FINANCIAL RISK MANAGEMENT (CONTINUED)

ii. Financial instrument composition and maturity analysis:

The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity. The financial instruments are all classified as current.

		Weighted	Floating Interest	Rate
		Average
	Effective Interest Rate
	2014	2013	2014	2013
	%	%	$	$
Financial Assets:
Cash and cash equivalents	3.85	3.95	327,084	784,591
Total Financial Assets			327,084	784,591
Financial Liabilities:
Trade payables	-	-	69,244	82,341
Total Financial Liabilities			69,244	82,341

iii. Net Fair Values

The net fair values of all financial assets and financial liabilities approximate their carrying value.

NOTE 22: EVENTS AFTER THE REPORTING PERIOD

There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Group, the results of these operations, or the state of affairs of the Group in future financial periods, other than the following:

NOTE 23: PARENT ENTITY DISCLOSURES

NOTE 23: PARENT ENTITY DISCLOSURES
Financial position	2014	2013
	$	$
Assets
Current assets	337,235	805,940
Non-current assets	274,309	728,117
Total assets	611,544	1,534,057
Liabilities
Current liabilities	69,189	82,341
Total liabilities	69,189	82,341

PAGE 60

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014

NOTE 23: PARENT ENTITY DISCLOSURES (CONTINUED)

	2014	2013
	$	$
Equity
Issued Capital	4,160,284	3,851,523
Option premium reserve	22,961	-
Accumulated losses	(3,640,890)	(2,399,807)
Total equity	542,355	1,451,716
Financial performance	2014	2013
	$	$
Loss for the year	(1,241,082)	(1,830,477)
Total comprehensive loss	(1,241,082)	(1,830,477)

For details on commitments, see Note 18.

PAGE 61

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ DECLARATION

The Directors of Firestrike Resources Limited declare that:

The financial report and notes, as set out on pages 31-56 are in accordance with the Corporations Act 2001 and:
a. comply with Accounting Standards and the Corporations Regulations 2001;
b. are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board, as stated in note 1 to the financial report; and
c. give a true and fair view of the Consolidated Group’s financial position as at 30 June 2014 and of its performance for the year ended on that date;
The Chief Executive Officer and Chief Finance Officer have each declared that:
a. the financial records of the Consolidated Group for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001;
b. the financial report and notes for the financial year comply with the Accounting Standards; and
c. the financial report and notes for the financial year give a true and fair view;
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

Director:

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David Holden Managing Director 30 September 2014

PAGE 62

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INDEPENDENT AUDITOR’S REPORT

To the members of Firestrike Resources Limited

Report on the Financial Report

We have audited the accompanying financial report of Firestrike Resources Limited (“the company”), which comprises the consolidated statement of financial position as at 30 June 2014, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration for the Consolidated Group. The Consolidated Group comprises the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

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

In Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements , that the financial report complies with International Financial Reporting Standards.

Auditor’s responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

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

Independence

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

HLB Mann Judd (WA Partnership) is a member of International, a worldwide organisation of accounting firms and business advisers.

PAGE 63

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Auditor’s opinion

In our opinion:

(a) the financial report of Firestrike Resources Limited is in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the Consolidated Group’s financial position as at 30 June 2014 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Emphasis of matter

Without qualifying our opinion, we draw attention to Note 1 in the financial report which indicates that the ability of the Consolidated Group to continue as a going concern is principally dependent upon the management of expenditure and the raising of sufficient additional capital to fund exploration expenditure, other principal activities and working capital in the 12 months from the date the financial report is signed. Should the Consolidated Group not be able to manage its expenditure or raise sufficient additional capital in that period, there is a material uncertainty that may cast significant doubt on the ability of the Consolidated Group to continue as a going concern and, therefore, whether it will be able to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Report on the Remuneration Report

We have audited the remuneration report included in the directors’ report for the year ended 30 June 2014. The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor’s opinion

In our opinion the remuneration report of Firestrike Resources Limited for the year ended 30 June 2014 complies with section 300A of the Corporations Act 2001 .

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HLB Mann Judd Chartered Accountants

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L Di Giallonardo Partner

Perth, Western Australia 30 September 2014

PAGE 64

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

ADDITIONAL INFORMATION FOR LISTED COMPANIES

1. Shareholding as at 24 September 2014 a. Distribution of Shareholders Category (size of holding) 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 Above 100,001	Number Numbe Holders Ordinary 6 1,746 5 17,147 69 683,267 257 9,381,331 70 37,916,494
	407 47,999,985

b. The number of shareholdings held in less than marketable parcels is 131.
c. The names of the substantial shareholders listed in the holding Consolidated Group’s register as at 24 September 2014 are:

	as at 24 September 2014 are:
		Number
	Shareholder	Ordinary	%
1	Ranchland Holdings Pty Ltd	6,776,300	14.12
2	Shackleton Capital Pty Ltd	3,085,000	6.43
3	Coral Brook Pty Ltd	3,750,000	7.81
4	David Paganin (DA Paganin Family Trust No. 2)	2,600,000	5.41

d. Voting Rights

The voting rights attached to each class of equity security are as follows:

Ordinary shares

Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.

PAGE 65

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

ADDITIONAL INFORMATION FOR LISTED COMPANIES (CONTINUED)

	20 Largest Shareholders — Ordinary Shares
	Name	Number of	% Held of
		Ordinary Fully	Issued
		Paid Shares	Ordinary
		Held	Capital
1	Coral Brook Pty Ltd	3,750,000	7.81
2	Ranchland Holdings Pty Ltd	3,750,000	7.81
3	David Arthur Paganin	3,750,000	5.81
4	Shackleton Capital Pty Ltd	2,787,500	5.21
5	Pacrim Energy Limited	2,000,000	4.17
6	Gurney Capital Nominees Pty Ltd	1,860,008	3.87
7	Pheakes Pty Ltd	1,750,000	3.65
8	Ranchland Holdings Pty Ltd	1,350,000	2.81
9	Bradley John Dilkes and Lewis John Dilkes	1,050,000	2.19
10	Ranchland Holdings Pty Ltd	1,001,300	2.09
11	Peter Tsegas	990,000	2.06
12	Minico Pty Ltd	800,000	1.67
13	Mr Peter Hamilton Hayes & Ms Megan Jane Armitage	648,990	1.35

14	Corvus Super Fund	585,000	1.22
15	ACNS Capital Markets Pty Ltd	543,000	1.13
16	Melissa Jane Ahern	500,000	1.04
17	Shane Hoehock Wee	425,000	0.88
18	Paranoid Enterprises Pty Ltd	425,000	0.88
19	Shane Hoemock and Sandra Wee	400,005	0.83
20	Songlake Pty Ltd	398,333	0.83
		27,514,136	57.32

Distribution of Option holders (ASX code FIEOA)	Number	Number
	of	of
Category (size of holding)	Holders	Options
1 – 1,000	0	0
1,001 – 5,000	19	92,250
5,001 – 10,000	9	73,334
10,001 – 100,000	73	2,734,290
Above 100,001	18	13,400,126
	119	16,300,000

PAGE 66

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

g. 20 Largest Option holders — FIEOA Options at 4 cents expiry 31 December 2016

		Number of	% Held of
	Name	Options Held	Options
1	Gurney Capital Nominees Pty Ltd	2,500,000	15.34
2	Beer & Co Pty Ltd	2,000,000	12.27
3	Cipater Pty Ltd	1,500,000	9.20
4	Coral Brook Pty Ltd	1,250,000	7.67
5	Shackleton Capital Pty Ltd	1,250,000	7.67
6	Ranchland Holdings Pty Ltd	1,250,000	7.67
7	Pacrim Energy Limited	1,000,000	6.14
8	Traditional Securities Group Pty Ltd	570,908	3.50
9	Minico Pty Ltd	450,000	2.76
10	Gavin Ray Harrison	300,000	1.84
11	ACNS Capital Markets Pty Ltd	225,000	1.38
12	Mr Peter Hamilton Hayes & Ms Megan Jane Armitage	216,330	1.33

13	Amanda Lee Ellen	212,500	1.30
14	Minico Pty Ltd	200,000	1.23
15	Shane Hoemock and Sandra Wee	133,335	0.82
16	Megan Jane Armitage	122,500	0.75
17	Michael John Gorey	110,000	0.68
18	Epigene Pty Ltd	109,553	0.67
19	Pheakes Pty Ltd	100,000	0.61
20	Shane Hoehock Wee	100,000	0.61
		13,600,126	83.44

PAGE 67

ANNUAL REPORT 2014

FIRESTRIKE RESOURCES LIMITED

ADDITIONAL INFORMATION FOR LISTED COMPANIES (CONTINUED)

The name of the Company Secretary is Mr Paul Lloyd.
The address of the principal registered office in Australia is:

Suite 1, Ground floor, 437 Roberts Road SUBIACO WA 6008 Telephone 08 9476 9209

Registers of securities are held at the following addresses:

Advance Share Registry 110 Stirling Hwy NEDLANDS WA 6009 Australia

Securities Exchange Listing
Quotation has been granted for all the ordinary shares of the Consolidated Group on all Member Exchanges of the Australian Securities Exchange Limited.
Exploration Permit for Minerals – Grant Creek Gold Project, Nabberu and Angelo Gold Project in the Kimberley region of Western Australia.

Permit number	Location	Mineral	Ownership
P80/1576	Western Australia	Gold	100 % FIE
P80/1577	Western Australia	Gold	100 % FIE
P80/1578	Western Australia	Gold	100 % FIE
P80/1579	Western Australia	Gold	100 % FIE
P80/1580	Western Australia	Gold	100 % FIE
P80/1582	Western Australia	Gold	100 % FIE
P80/1760	Western Australia	Gold	100 % FIE
P80/1673	Western Australia	Gold	100 % FIE
E80/2707	Western Australia	Gold	100 % FIE
E69/3225	Western Australia	Lead and Zinc	100 % FIE
CR #001 to CR #184	Utah, USA	Copper	100 % FIE

In accordance with ASX Listing Rule 4.10.19, the Consolidated Group advises that, since listing on 26 July 2011, it has used its cash in a way consistent with its business objectives.

PAGE 68

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ION VIDEO LTD — Annual Report 2014

65133_rns_2014-09-29_45e48cb1-5655-4fee-b86b-3190db451b12.pdf

FIRESTRIKE RESOURCES LIMITED

CONTENTS PAGE

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

CORPORATE DIRECTORY

FIRESTRIKE RESOURCES LIMITED

CHAIRMAN’S LETTER TO SHAREHOLDERS

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

Directors

Company Secretary

Principal Activities

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

REVIEW OF OPERATIONS

Copper Ridge Project – Utah USA.

(100% Firestrike Resources Limited)

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

Geology

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REVIEW OF OPERATIONS (CONTINUED)

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

STYLISED MODEL FOR MINERALISATION

(100% Firestrike Resources Limited)

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

(100% Firestrike Resources Limited)

(100% Firestrike Resources Limited)

Other activities

Competent Persons Statement

Operating Results

Dividends Paid or Recommended

Financial Position

Significant Changes in State of Affairs

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

After Balance Date Events

Environmental Issues

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

REMUNERATION REPORT - AUDITED

Principles used to determine the nature and amount of remuneration

Non-executive Directors and executive Director

Directors’ fees

Key Management Personnel Remuneration Policy

FIRESTRIKE RESOURCES LIMITED

ANNUAL REPORT 2014

DIRECTORS’ REPORT

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

FIRESTRIKE RESOURCES LIMITED

DIRECTORS’ REPORT

Meetings of Directors

Indemnification and insurance of Directors and Officers

Options

ION VIDEO LTD Annual Report 2014