IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2004

Mar 15, 2004

INTERNATIONAL GOLDFIELDS LIMITED

ABN 71 095 047 920 (Formerly Hamill Resources Limited)

AND CONTROLLED ENTITIES

Half-Year Consolidated Financial Report 31 December 2003

HALF-YEAR FINANCIAL REPORT For the Half Year Ended 31 December 2003

Company Directory
Directors' Report	2
Statement of Financial Performance	5
Statement of Financial Position	6
Statement of Cashflows	7
Notes to the Financial Statements	8
Directors' Declaration	12
Independent Review Report	13

COMPANY DIRECTORY

DIRECTORS

Antony WP Sage (Executive Chairman)

Robert W Annett (Technical Director)

Kent M Hunter (Non-Executive Director)

COMPANY SECRETARY

Kent M. Hunter

REGISTERED OFFICE

Ground Floor, 18 Oxford Close LEEDERVILLE WA 6007 Telephone: (08) 9388 0744 Facsimile: (08) 9382 1411

AUDITORS

Ord Partners Level 2, 47 Colin Street WEST PERTH WA 6005

SHARE REGISTRAR

Advanced Share Registry Services Level 7, Adelaide Terrace PERTH WA 6000 Telephone: (08) 9221 7288 Facsimile: (08) 9221 7869

STOCK EXCHANGE LISTING

Australian Stock Exchange (Home Exchange: Perth, Western Australia) Code: IGL, IGLOA

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

Your directors submit the financial report of the consolidated entity for the half-year ended 31 December 2003.

DIRECTORS

The names of Directors who held office during or since the end of the half year:

Antony William Paul Sage resigned 15^th August 2003 Nathan Bruce McMahon resigned $19^th$ December 2003 Clive Bruce Iones Kent Michael Hunter appointed 19^th December 2003 Robert Anneft

REVIEW OF OPERATIONS

The Company focused its exploration activities on the Mt Ida and Evanston gold projects in Western Australia, and the Sacu copper-gold project in Romania. Mining of the Whinnen Lode at Mt Ida, by way of a tribute arrangement with a mining contractor continued throughout the period. Approval to mine the nearby Baldock Lode, on a stand alone basis, was given by the Board, and de-watering of the Timoni Mine shaft commenced in late December 2003. Gold production from Baldock is scheduled for early in the third quarter of 2004.

Mt Ida

At Mt Ida regional exploration focused on broad spaced Rotary Air Blast (RAB) drilling of a number of prospects. RAB drilling totalled some 500 drill holes for approximately 19,600 metres of drilling and over 5.800 assays. The drilling was mostly confined to the top 50m where intense weathering of the rocks and 'gold depletion' has occurred. Drilling intersected substantial widths of alteration and follow-up Reverse Circulation (RC) drilling is planned to test a number of these targets at depth. Near mine site exploration was undertaken at the Barrassi and Delta Prospects. These are located some 4-600 metres to the south and north of the Baldock Lode respectively. Twenty-four RC holes were drilled for over 4,600 metres of drilling and some 1600 assays. Best results $(>1 \frac{g}{t})$ are summarized in the table below:

Hole ID	Interval (m)	Metres	$g/t$ Au
TIC210	24 to 26m	$2m$ $\omega$	$1.33$ g/t
TIC211	83 to 85m 118 to 127m	$2m$ $\omega$ 9m $\omega$	$9.39$ g/t 4.43g/t (-including 124 to 126m 2m $\omega$ 15.25g/t)
TIC213	8 to 12m	$4m$ $\langle \hat{a} \rangle$	1.36g/t

(Extract from ASX Announcement 13 January 2004)

The results clearly indicate that further work is warranted.

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

Evanston

At the Evanston Project exploration activities included geological mapping, soil and rock chip sampling, RAB drilling and RC resource definition drilling. Considerable progress was made towards gaining a better understanding of the factors governing gold mineralisation at our Boondine. Golden Orb. Python and King Brown prospects and/or resources. Drilling completed in the period included 139 RAB drill holes for 7366 metres and 1903 samples at the Boondine prospect, and 22 RC drill holes for 1347m and 1042 assays at the Golden Orb, Python and King Brown resources. Very best intercepts $(>\frac{3g}{t})$ are detailed in the table below. It is noteworthy that considerable progress was made in the determination of Native Title issues and it is hoped that a substantial number of tenements will be granted in early 2004.

King Brown

Hole ID	Interval (m)	Metres	$g/t$ Au
KBC002	25 to 29m	$4m$ $@$	10.88g/t
KBC003	42 to 59m	$17m$ $\omega$	3.56g/t
KBC005	44 to 55m	$1 \ln \omega$	$2m$ (a) 17.22 $g/t$ ) (including $49$ to $51m$ ) 4.25g/t
KBC007	27 to 49m	$22m$ $\omega$	$3m$ (a) $30.97g/t$ ) $8.64g/t$ (including 38 to 41m)
KBC011	$112 \text{ to } 113 \text{m}$	Ø) l m	28.3g/t
KBC028	25 to 30m	5m. (a)	$7.21$ g/t
KBC029	76 to 83m	7m (a)	3.76g/t
KBC034	14 to 19m	$\langle a \rangle$ 5m.	3.49g/t
Python
PYR002	13 to 47m	$34m$ $\omega$	$3.07$ g/t

Sacu

At the Sacu Project in Romania ground exploration activities were confined to soil and rock chip sampling and an Induced Polarisation (IP) geophysical program. Elevated base metal and gold soil anomalism is associated with substantial alteration of the schist country rock. A single IP line indicated a shallow chargeable horizon which appears to be coincident with the recent discovery of old mine workings.

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

CORPORATE

On 18 February 2003 the directors of the Company and the directors of International Goldfields Limited (now International Goldfields (Romania) Limited) agreed to merge the two companies. On 11 July 2003 the merger was implemented by way of scheme of arrangement (Scheme). Under the terms of the Scheme. International Goldfields Limited shareholders received six Hamill Resources Limited shares for every seven International Goldfields Limited shares held and all shares in International Goldfields Limited were transferred to Hamill Resources Limited

On 15 July 2003 the Company changed its name to International Goldfields Limited.

On 25 July 2003 the Company issued 5,070,000 new ordinary fully paid shares at 30 cents per share to selected European investors.

On 14 October 2003 the Company issued 7,797,405 new ordinary fully paid shares at 37 cents per share to selected European institutional investors.

On 27 October 2003 the Company issued 1,621,000 new ordinary fully paid shares at 37 cents per share to selected European investors.

On 10 December 2003 the Company issued 127,471 new ordinary fully paid shares at 39.2 cents per share for the acquisition of exploration assets.

On 31 December 2003 the Company issued 85,714 new ordinary fully paid shares on conversion of 25 cent options, raising \$21,428.

On 31 December 2003 the Company issued 17,211,396 new ordinary fully paid shares on conversion of 20 cent options, raising \$3,442,280.

Sale of Non-Core Assets

On 31 October 2003, the Company by virtue of an Option Agreement dated July 2003 with Cazaly Resources Limited received \$165,000 cash and 750,000 fully paid shares in Cazaly Resources Limited (escrowed for 12 months), for the sale of several non-core tenements and projects. International Goldfields also retains a \$1.00 per dry tonne royalty on any mined and milled production from the tenements subject to the agreement.

This report is signed in accordance with a resolution of the Board of Directors.

Kent Hunter Director / Company Secretary

Perth Dated: 15 March 2004

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

For the Half-Year Ended 31 December 2003

	Economic Entity
	Note	31 December 2003 \$	31 December 2002 \$
Revenue from ordinary activities		467,743	117,231
Employee and contractors' benefits expense Depreciation expense Borrowing costs expense Write down of investment to recoverable amounts Write back of provision Administration expenses Consultancy costs Corporate and other expenses from ordinary activities Operating profit/(loss) from ordinary activities after income tax expense/benefit attributable to members of the parent entity	$\overline{2}$	(133, 615) (20, 844) (6, 440) 120,000 (118,013) (183, 475) (88, 614) 36,742	(12,605) (15, 644) (572) (128, 125) (82, 842) (38, 335) (31, 833) (192, 725)
Income tax expense/benefit relating to ordinary activities Operating profit/(loss) from ordinary activities after income tax expense/benefit attributable to members of the parent entity		36,742	(192, 725)
Basic earnings/(loss) per share (cents per share)		0.04	(0.48)
Diluted earnings/(loss) per share (cents per share)		0.03	(0.30)

The accompanying notes form part of this financial report.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2003

		Economic Entity
		31 December 2003	30 June 2003
	Note	\$	\$
CURRENT ASSETS
Cash assets		7,722,291	335,856
Receivables and prepayments		505,662	223,111
Other assets			3,300
TOTAL CURRENT ASSETS		8,227,953	562,267
NON-CURRENT ASSETS
Deposits		136,000
Other financial assets		1,218,384	849,625
Property, plant and equipment		141,674	85,948
Exploration and evaluation expenditure		20,515,740	5,175,115
TOTAL NON-CURRENT ASSETS		22,011,798	6,110,688
TOTAL ASSETS		30,239,751	6,672,955
CURRENT LIABILITIES
Payables		894,577	194,881
Provisions		13,989	9,091
TOTAL CURRENT LIABILITIES		908,566	203,972
TOTAL LIABILITIES		908,566	203,972
NET ASSETS		29,331,185	6,468,983
EQUITY
Contributed equity	3	29,094,051	6,268,593
Retained earnings		237,134	200,390
TOTAL EQUITY		29,331,185	6,468,983

The accompanying notes form part of this financial report.

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Half-Year Ended 31 December 2003

	Economic Entity
	31 December 2003 \$	31 December 2002 \$
FROM CASHFLOWS OPERATING ACTIVITIES
Payments to suppliers and employees Interest and bill discounts received Interest paid	(357,212) 65,410	(186,085) 52,371 (572)
Payments for exploration and evaluation Receipts-other Payments for guarantees	(1,669,033) 10,658 (136,000)	(888, 585) 23,350
Net cash used in operating activities	(2,086,176)	(999, 521)
CASHFLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment Proceeds from sale of tenements	(59, 428) 165,000	(65,116)
Purchase of exploration assets	(126, 931)	(182, 033)
Proceeds from sale of equity investments	47,401	50,985
Payment for equity investments Cash acquired in acquisition of subsidiary	(10,000) 1,224,401	(25,625)
Net cash used in investing activities	1,240,443	(221,789)
CASHFLOWS FINANCING FROM ACTIVITIES
Proceeds from issue of shares	8,370,768
Proceeds from borrowing Payments for costs of issue of shares	(138,600)	59,057
Repayment of borrowings		(5,390)
Net cash provided by financing activities	8,232,168	53,667
Net decrease in cash held Cash at 1 July 2003	7,386,435 335,856	(1,167,643) 2,826,016
Cash at 31 December 2003	7.722.291	1.658.373

The accompanying notes form part of this financial report.

NOTES TO THE FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2003

$\mathbf{1}$ . BASIS OF PREPARATION

The half-year condensed financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2003 and any public announcements made by International Goldfields Limited and its controlled entity during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies, have been consistently applied by the entities in the economic entity and are consistent with those applied in the 30 June 2003 annual report.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

LOSS FROM ORDINARY ACTIVITIES $2.$

	Economic Entity
	31 December 2003	31 December 2002
	S	S
The following revenue and expense items are relevant in explaining the financial performance for the interim period:
Interest revenue	78,389	53,026
Write back of diminution in value -of
investments	177,984
Write off the value of investments		(128, 125)
Proceeds from sale of exploration assets	315,000
Depreciation of plant and equipment	(20, 844)	(15, 644)

Note: The consideration on disposal of exploration assets consisted of \$165,000 and 750,000 ordinary shares issued by the purchaser Cazaly Resources Limited. Pursuant to ASX requirements the shares are subject to escrow until 23 October 2004. The shares have been recognised in the statement of financial position at the issue cost of \$0.20 each.

Revision of Accounting Estimate

At the year ended 30 June 2003 a provision of \$120,000 was raised for a potential state payroll tax liability in International Goldfields (Romania) Limited (formerly International Goldfields Limited), Following an audit performed by the WA State Revenue Department during the half year, the Company was deemed to be below the current threshold for payroll tax and therefore the provision has been reversed during the current period.

NOTES TO THE FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2003

$3.$ CONTRIBUTED EQUITY

		Economic Entity
			31 December 2003	30 June 2003
	130,440,212 (30 June 2003: 40,135,002)
	Fully paid ordinary shares	(a)	29,094,051	6,095,453
	Nil (30 June 2003: 17,450,005)
	31 December 2003 Options	(i)		173,140
			29,094,051	6,268,593
(a)	Ordinary Shares
	At the beginning of the reporting period Shares issued during the period		6,095,453	6,095,453
	58,392,224 on 11 July 2003		14,598,056
	5,070,000 on 25 July 2003		1,521,000
	7,797,405 on 14 October 2003 $\qquad \qquad \blacksquare$		2,885,040
	1,621,000 on 27 November 2003		599,770
	127,471 on 10 December 2003 $\overline{\phantom{a}}$		50,000
	17,211,396 on 31 December 2003		3,442,280
	85,714 on 31 December 2003		21,428
	Total issued during the period		23,117,574
	Transaction costs relating to share issues		(292, 116)
	Options issue transferred on conversion	(i)	173,140
	At reporting date		29,094,051	6,095,453

ACQUISITION OF CONTROLLED ENTITIES $\overline{4}$ .

The following controlled entities were acquired during the half-year:

2003

Name	Date Acquired	Consolidated Entity's Interest	Consideration	Contribution to Consolidated Net Profit/ (Loss)
			S
International Goldfields (Romania) Limited	11 July 2003	100%	14,598,056 (i)	(35,207)
Evanston Resources NL	11 July 2003	100%	(i)	(121)

NOTES TO THE FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2003

$\overline{4}$ . ACQUISITION OF CONTROLLED ENTITIES (Cont.)

On 18 February 2003 the directors of the Company and the directors of International $(i)$ Goldfields Limited (now International Goldfields (Romania) Limited) agreed to merge the two companies.

On 11 July 2003 the merger was implemented by way of scheme of arrangement (Scheme). Under the terms of the Scheme, International Goldfields Limited shareholders received six Hamill Resources Limited shares for every seven International Goldfields shares held. A total of 58,392,224 ordinary fully paid shares were issued at a market value of \$0.25, representing a net investment in International Goldfields of \$14.598.056.

Evanston Resources NL is a wholly owned subsidiary of International Goldfields (Romania) Limited.

2002

The consolidated entity did not gain control over any entities during the prior corresponding period.

SEGMENT INFORMATION $\overline{\mathbf{S}}$ .

Geographical Segments

Although the consolidated entity's divisions are managed on a global basis they operate in two main geographical areas:

Australia

The home country of the parent entity which is also the main operating entity. Comprises operations in Mineral Exploration only.

Romania

Comprises operations in Mineral Exploration only.

Business Segments

The consolidated entity is organised on a global basis into the one division by product and service type, Mineral Exploration. The Company explores the Sacu Project in Romania and the Mt Ida and Evanston Projects in Western Australia with the object of identifying a commercial resource.

Primary Reporting –	S	S	Т
Geographical Segments	Romania	Australia	Consolidated
31 December 2003 Revenues from ordinary
activities	$\overline{\phantom{0}}$	317,743	317,743
Segment result (loss)	$\blacksquare$	(113,258)	(113,258)

NOTES TO THE FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2003

$\mathbf{S}_{\mathbf{r}}$ SEGMENT INFORMATION (Cont.)

Primary Reporting -	S	S	S
Geographical Segments 31 December 2002	Romania	Australia	Consolidated
Revenues from ordinary activities		117,231	117,231
Segment result (loss)		(192, 725)	(192,725)

$6.$ EVENTS SUBSEQUENT TO REPORTING DATE

On 15 January 2004 the Company issued 238.607 new ordinary fully paid shares in accordance with the underwriting agreement dated 29 November 2003 for the exercise of the 31 December 2003, 20 cent options.

On 28 October 2003 International Goldfields Limited ("International Goldfields") entered into an Option Agreement with unlisted public company Republic Gold Ltd (ACN 106 399 311) ("Republic") for Republic to acquire a 75% interest in International Goldfields Limited's and Jackson Gold Limited's jointly held Northcote Project in far north Oueensland.

In January 2004, International Goldfields received a cash payment of $$10,000$ and was issued one (1) million ordinary fully paid shares in Republic upon Republic's successful listing on ASX. International Goldfields retains a 5% free carried interest in the Northcote Project.

On 26 February 2004, the Company by virtue of an Option Agreement dated October 2003 with Great Australian Resources Limited received 125,000 fully paid shares in Great Australian Resources Limited (escrowed for 12 months), for the sale of several non-core tenements and projects.

Other than the matter disclosed above, since 31 December 2003, no event has arisen that would be likely to materially affect the operations of the company, or the state of affairs of the company not otherwise disclosed in the company's financial report.

$\overline{7}$ . CONTINGENT LIABILITIES

As part of the Company's exploration asset portfolio, the Company has acquired tenements requiring Environmental Bonds (to be lodged with the Department of Industry and Resources) in the amount of \$136,000.

In the opinion of the directors, other than the matter disclosed above, there were no contingent liabilities as at 31 December 2003 and in the interval between 31 December 2003 and the date of this report.

DIRECTORS' DECLARATION

For the Half Year Ended 31 December 2003

The Directors of the Company declare that:

$\mathbf{1}$ The financial statements and notes, as set out on pages 5 to 11:

(a) comply with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations; and

(b) give a true and fair view of the Consolidated entity's financial position as at 31 December 2003 and its performance for the half-year ended on that date.

$\overline{2}$ . 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.

Kent Hunter Director / Company Secretary

PERTH Dated this 15th day of March 2004

To the members of International Goldfields Limited (formerly known as Hamill Resources Limited)

Scope

The financial report and directors' responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements and the directors' declaration set out on pages 5 to 12 for International Goldfields Limited (formerly known as Hamill Resources Limited) for the half-vear ended 31 December 2003. The Consolidated Entity comprises International Goldfields Limited ("the Company") and the entities it controlled during that half year.

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

Review Approach

We conducted an independent review in order for the Company to lodge the financial report with the Australian Securities and Investments Commission. Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements.

We performed procedures in order to state whether on the basis of the procedures described anything has come to our attention that would indicate the financial report does not present fairly, in accordance with Corporations Act 2001, Australian Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Consolidated entity's financial position, and of its performance as represented by the results of its operations and its cash flows.

We formed our statement on the basis of the review procedures performed, which were limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.

The procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit, and accordingly, we do not express an audit opinion.

A review cannot guarantee that all misstatements have been detected.

Independence

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

PARTNER S CHARTERED

Ian K Macpherson cл

Robert W Parker $CA$

Craig A Vivian CA

a katalog atau dan masa sa masa na masa na masa na masa na masa na masa na masa na masa na masa na masa na mas

Level 2, 47 Colin Street West Perth WA 6005

PO Box 359 West Perth WA 6872

雪+61893213514

Statement

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

• (a) the Corporations Act 2001, including:
• giving a true and fair view of the Consolidated entity's financial position at 31 December 2003 and of $(i)$ its performance for the half-year ended on that date; and
• (ii) complying with Australian Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and
• $(b)$ other mandatory professional reporting requirements in Australia.

ORD PARTNERS Chartered Accountants

fluhak

Robert W Parker Partner

Dated this 15^th day of March, 2004. Perth, Western Australia