IONIC RARE EARTHS LIMITED — Interim / Quarterly Report 2011

Aug 30, 2011

Appendix 4E Preliminary final report

APPENDIX 4E

Preliminary final report

EZENET LIMITED

ABN 84 083 646 477

1. Reporting Period

Year ended : 30 June 2011

2. Results for announcement to the market

2.Results for announcement to the market	2.Results for announcement to the market	2.Results for announcement to the market
2.1 Revenues from ordinary activities 2.2 Profit from continuing activities after tax attributable to members 2.3 Net profit for the period attributable to members	Up 1,047% to $634,660 Up NA To $412,292 Up NA to $412,292
2.4 Dividends	Amount per security	Franked amount per security
Final dividend	Nil¢	Nil¢
Previous corresponding year	Nil¢	Nil¢
2.5 Record date for determining entitlements to the dividend Not Applicable 2.6 During the current financial year Ezenet Limited sought additional business opportunities and continued its business of investing in the resources sector either directly or indirectly through the investment in companies active in the resource sector.
	Not Applicable

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Appendix 4E Preliminary final report

3. Consolidated statement of comprehensive income

Notes Continuing operations Interest received Dividends received Depreciation Consultants fees Directors fees Travel expenses Other expenses Gain on subsidiary purchase Profit (Loss) from continuing operations before income tax Income tax credit Profit (Loss) from continuing operations after income tax expense Profit/(Loss) from discontinued operations after income tax 3.1(a) Net Profit (Loss) for the period Other comprehensive income Net fair value gains/(losses) on available-for-sale financial assets, net of tax Exchange differences on translating foreign controlled entities Other comprehensive income net of tax Total comprehensive profit (loss) for the year	2011 $	2010 $
	88,462 546,198 (1,368) (378,699) (170,000) (110,565) (409,417) 328,850	55,316 - (1,144) (165,229) (165,781) (143,621) (121,571) -
	(106,539) 518,831	(542,030) 27,270
	412,292 -	(514,760) (239,441)
	412,292 1,210,604 (15,363)	(754,201) 308,410 -
	1,195,241	308,410
	1,607,533	(445,791)

Earnings per security (EPS)	Cents	Cents
Basic earnings/(loss) per share Diluted earnings/(loss) per share	0.28 0.28	(0.63) (0.63)

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3.1 Notes to the consolidated income statement

3.1(a) Discontinued Operations

Description

On 30 April 2009 Ezenet Limited disposed of its operations segment by the sale of subsidiary Ezestream Pty Limited, which supplied digital movies to the hospitality, mining camps and health care clients.

Financial information relating to the discontinued operations for the period to date of disposal is set out below.

Revenue Cost of sales Gross Profit Other expenses Marketing Expenses Occupancy Expenses Administrative Expenses Other Operating Expenses Finance Profit before income tax Income tax credit/(expense) Profit after income tax of discontinued operation Impairment on retention monies withheld Gain/(Loss) on the sale of the division before income tax Income tax expense Gain/(Loss) on the sale of the division after income tax Profit/(Loss) from discontinued operation	2011 $	2010 $
	- -	- -
	- - - - - -	- - - - - -
	- -	- -
	-	-
	- - -	(225,167) (14,274) -
	-	(239,441)
	-	(239,441)

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4. Consolidated statement of financial position

ASSETS Current assets Cash Receivables Other Total current assets	2011 $	2010 $
	1,519,421 23,056 5,881	2,428,947 17,866 5,711
	1,548,358	2,452,524
Non-current assets Property, plant and equipment Exploration and evaluation expenditure Available-for-sale financial assets Total non-current assets	1,576 900,000 4,257,225	2,944 - 1,038,933
	5,158,801	1,041,877
Total assets	6,707,159	3,494,401
LIABILITIES Current liabilities Payables Provisions Total current liabilities	279,042 7,229	150,157 -
	286,271	150,157
Total liabilities	286,271	150,157
Net assets	6,420,888	3,344,244
Y EQUITY Contributed equity Reserves Accumulated losses	12,081,365 2,453,474 (8,113,951)	10,612,254 1,258,233 (8,526,243)
Total equity	6,420,888	3,344,244

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5. Consolidated statement of cash flows

5. Consolidated statement of cash flows
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Net cash flows from/(used in) operating cash flows	2011 $	2010 $
	- (966,736) 88,463	- (631,856) 55,316
	(878,273)	(576,540)
Cash flows from investing activities Payments for property, plant and equipment Loan to associated company Repayment of loan from associated company Proceeds from subsidiary sale Payments for investments Cash acquired through acquisition of subsidiary Net cash flows from investing activities	- - - - (942,660) 37,060	(998) (351,453) 376,600 252,484 - -
	(905,600)	276,633
Cash flows from financing activities Proceeds from issues of shares Payments for costs of raising equity Net cash flows from/(used in) financing activities	946,500 (56,790)	1,503,058 (60,152)
	889,710	1,442,906
Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of financial year Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of financial year	(894,163) 2,428,947 (15,363)	1,142,999 1,285,948 -
	1,519,421	2,428,947

5.1(a) Reconciliation of cash	2011 $	2010 $
Cash on hand and at bank Short term deposit Total cash at end ofperiod	1,489,421 30,000	2,398,947 30,000
	1,519,421	2,428,947

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5.1(b) Reconciliation of loss from ordinary activities after income tax to net cash from operating activities	2011 $	2010 $
Profit/(Loss) from ordinary activities after income tax Depreciation and amortisation Non cash dividends received Taxation (Gain on subsidiary purchase)/ Loss on subsidiary sale Impairment of debt Miscellaneous non cash revenue Changes in assets and liabilities Trade receivables Other receivables Prepayments Trade and other creditors Employee entitlements Net operating cash flows	412,292 1,368 (546,198) (518,831) (328,850) - 14,885 (4,591) - (170) 84,593 7,229	(754,201) 1,144 - (27,270) 14,274 225,167 - 3,668 - - (39,322) -
	(878,273)	576,540

5.1(c) Borrowing facilities and bank financial Accommodations	2011 $ Available	2011 $ Utilised	2010 $ Available	2010 $ Utilised
Convertible notes Bank loan Insurance finance Other	- - - -	- - - -	- - - -	- - - -
	-	-	-	-

6. Dividends paid or declared

6. Dividends paid or declared
Dividends paid or declared for the year Amount of frankingcredits available	2011 $	2010 $
	Nil	Nil
	Nil	Nil

7. Dividend reinvestment plan

There is no Dividend Reinvestment Plan currently in place .

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8. Movements in retained earnings

8. Movements in retained earnings
Retained losses at beginning of financial year Net operating profit (loss) after income tax for the financial year Adjustment arising from adoption of new and revised accounting standards: Dividends paid orpayable	2011 $	2010 $
	(8,526,243) 412,292 - -	(7,772,042) (754,201) - -
Retained losses at end of financialyear	(8,113,951)	(8,526,243)

9. NTA backing

9. NTA backing
	2011 $	2010
Net tangible asset backing per ordinary security	3.54 cents	2.32cents

10. Control gained or lost over entities having material effect

On 21 March 2011 year Ezenet increased its stake in Ghazal Minerals Limited (“Ghazal”) from 23% to 100% by acquiring all of the outstanding shares and options on issue in Ghazal (apart from those already held by Ezenet) on the basis on 0.697 Ezenet share for each Ghazal share and 0.00465 Ezenet share for each Ghazal option. This resulted in the issue of 13,795,287 shares at a fair value of $0.042 each. Ghazal holds rights to two exploration licences, EL276 (Bir Moghrein) and EL277 (Agouyme) in northern Mauritania, an emerging uranium province. The licences, covering approximately 544km[2] , are highly prospective for uranium.

The fair values of the identifiable assets and liabilities of Ghazal as at the date of acquisition were:

	$
Cash	37,060
Trade receivables	599
Intercompany receivable	14,885
Exploration licences	900,000
Trade payables	(44,292)
	908,252
Fair value of identifiable net assets	908,252
Fair value of previously held interests	(212,258)
Fair value Gain on acquisition	(116,592)
	579,402
Acquisition date fair value of consideration transferred:
Shares issued at fair value	579,402
Cash paid	-
Consideration transferred	579,402
The cash outflow on acquisition is as follows:
Net cash acquired with the subsidiary	37,060
Cash paid	-
Net consolidated cash inflow	37,060

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11. Available-for-sale financial assets

	2011 $	2010 $
Listed shares at fair value
Interestin WeatherlyInternationalplc	2,661,344	925,956
Interestin Allied GoldLimited	**49,331 **	37,000
Interestin Island Gas	57,596	75,977
Interestin DundeePreciousMetalsInc.	**546,294 **	-
Unlisted shares at costs
Holding companyforChuminga project	942,660	-
Total Available for sale Assets	3,314,565	1,038,933

12. Details of associates and joint ventures

12. Details of associates and joint ventures
	Ownership interest held by consolidated entity
Balance Date	2011	2010
Ghazal MineralsLimited 30 June2011	100%	23%

During the year the Company increased its stake in Ghazal from 23% to 100% by acquiring all the outstanding shares and options on issue in Ghazal (apart from those already held by the Ezenet Group) on the basis on 0.697 Ezenet share for each Ghazal share and 0.00465 Ezenet share for each Ghazal option. This resulted in the issue of 13,795,287 Ezenet shares.

13. Other significant information

13.1 Issued and quoted securities at end of current year

	Total number	Number quoted	Issue price per share $	Amount paid up per share $
Ordinary shares Balance on issue at 1 July 2010 Increases during current year - Issue or Ghazal Minerals Ltd - Placement Balance on issue at 30 June 2011 Options	144,111,710	144,111,710
	13,795,287 23,662,500 181,569,497	13,795,287 0 157,906,997	0.04 0.04	0.04 0.04
			Exercise Price$
Balance on issue at 1 July 2010	-	-
Balance on issue at 30 June2011	-	-

13.2 Changes in contingent liability

Not applicable

14. Accounting standards for foreign entities

Not applicable

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15. Commentary on the results for the financial year

During the year equity markets improved which saw the value of our available-for-sale investments increase by 219% to $3,314,565.

Ezenet Limited will continue its business of investing in the resources sector either directly or indirectly through the investment in companies active in the resource sector.

15.1 Segment reporting – reports for business and geographical segments

The Consolidated Entity has based its operating segment on the internal reports that are reviewed and used by the executive management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The Consolidated Entity currently does not have production and is only involved in investment in resource projects either directly through the investment in companies that hold resource projects. As a consequence, activities in the operating segment are identified by management based on the manner in which resources are allocated, the nature of the resources provided and the identity of service line manager and country of expenditure. Discrete financial information about each of these areas is reported to the executive management team on a monthly basis.

Based on these criteria, the Consolidated Entity has only one operating segment, investment in the resource industry, and the segment operations and results are the same as the Consolidated Entity results.

During the year, the Consolidated Entity did not commence production and thus has no revenues from external customers.

16. Basis of preparation

The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) and the Urgent Issues Group that are relevant to its operations and effective for annual reporting periods beginning on 1 July 2010. The adoption of these new and revised Standards and Interpretations did not have any effect on the financial position or performance of the Group.

Certain Australian Accounting Standards and UIG Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Group, for the annual reporting period ended 30 June 2011. The directors have not adopted any of these new or amended standards or interpretations.

17. Compliance statement

This report is based on accounts which are in the process of being audited.

Signed:

==> picture [128 x 34] intentionally omitted <==

Date: 31 August 2011

(Company Secretary)

Name: Brett Dickson

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