JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2011

Mar 7, 2011

JAMESON RESOURCES LIMITED ACN 126 398 294

Half-Year Financial Report 31 December 2010

JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2010

Company Directory	1
Directors' Report	2
Auditor’s Independence Declaration	4
Condensed Statement of Comprehensive Income	5
Condensed Statement of Financial Position	6
Condensed Statement of Changes in Equity	7
Condensed Statement of Cash Flows	8
Condensed Notes to the Financial Statements	9
Directors' Declaration	13
Independent Auditor’s Review Report	14

COMPANY DIRECTORY

DIRECTORS

Jeff Bennett (Chairman)

Mr John Holmes (Executive Director)

Mr David Prentice (Non-Executive Director)

Mr Stephen Anastos (Non-Executive Director)

Mr T. Arthur Palm (Non-Executive Director)

COMPANY SECRETARY

Ms Suzie Foreman

REGISTERED OFFICE

Jameson Resources Limited Level 2

79 Hay Street SUBIACO WA 6005 Telephone: (08) 9200 4473 Facsimile: (08) 9200 4463

AUDITORS

HLB Mann Judd Level 4,130 Stirling Street PERTH WA 6000

SHARE REGISTRAR

Security Transfer Registrars 770 Canning Highway APPLECROSS WA 6153 Telephone: (08) 9315 2333

STOCK EXCHANGE LISTING

Australian Securities Exchange (Home Exchange: Perth, Western Australia) Code: JAL

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT

DIRECTORS' REPORT

Your directors submit the financial report of the consolidated entity for the half year ended 31 December 2010. In order to comply with the provisions of the Corporations Act 2001, the directors’ report is as follows:

DIRECTORS

The names of Directors who held office during or since the end of the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated. Directors were in office for this entire period unless otherwise stated.

Mr Jeff Bennett Mr John Holmes Mr David Prentice Mr Stephen Anastos Mr T. Arthur Palm

RESULTS

The loss after tax for the period ended 31 December 2010 was $486,835.

REVIEW OF OPERATIONS

On 6 August 2010 Jameson Resources Limited (“Jameson” or “the Company”) announced that formal documentation to amend and extend the Option to Purchase agreement on the Basin Coal Mine Project (“the Project”) with Project vendors, Compliance Energy Corporation could not be concluded and that Jameson now retains no interest in the Project. Capitalised costs in relation to the project were written off in the year ended 30 June 2010.

The Company has been active in its evaluation on several other metallurgical and thermal coal opportunities in Western Canada.

Corporate

On 9 August 2010 Jameson announced the cancellation of unexpired Director options. The cancelled Director options were as follows:

Jeff Bennett:	200,000 options at $0.35 exercisable on 31 May 2012
	200,000 options at $0.50 exercisable on 31 March 2013
John Holmes:	500,000 options at $0.35 exercisable on 31 May 2012
	500,000 options at $0.50 exercisable on 31 March 2013
David Prentice:	200,000 options at $0.35 exercisable on 31 May 2012
	200,000 options at $0.50 exercisable on 31 March 2013
Stephen Anastos:	200,000 options at $0.35 exercisable on 31 May 2012
	200,000 options at $0.50 exercisable on 31 March 2013
Art Palm:	750,000 options at $0.35 exercisable on 31 May 2012
	750,000 options at $0.50 exercisable on 31 March 2013

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT

DIRECTORS' REPORT

On 19 November 2010 Jameson announced a pro-rata non-renounceable entitlements issue to shareholders to raise $1,437,433 before associated costs. The entitlement issue offered one (1) new fully paid ordinary shares for every two (2) existing ordinary shares held at an issue price $0.045 per share. The entitlement was fully underwritten by Capital Investment Partners Pty Limited (“CIP”). At the close date of the entitlement offer of 16 December 2010, acceptances for 18,881,114 shares were received. The shortfall of 13,061,841 shares was fully subscribed by CIP by 31 December 2010.

On 1 December 2010 Jameson announced that 8,783,334 unlisted options exercisable at $0.20 with an expiry date of 30 November 2010 expired unexercised and had lapsed.

EVENTS SUBSEQUENT TO REPORTING DATE

There are no matters or circumstances have arisen since the end of the half year period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

AUDITOR’S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 4 and forms part of this directors’ report for the half-year ended 31 December 2010.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001.

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John Holmes Executive Director

Dated this 8th day of March 2011

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Jameson Resources Limited for the half-year ended 31 December 2010, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) any applicable code of professional conduct in relation to the review.

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Perth, Western Australia 8 March 2011

N G NEILL

Partner, HLB Mann Judd

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HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4 130 Stirling Street Perth 6000 PO Box 8124 Perth BC 6849 Western Australia. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. 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 world-wide organisation of accounting firms and business advisers

JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED STATEMENT OF COMPREHENSIVE INCOME For the Half Year ended 31 December 2010

Note Revenue 2 Employee Benefits Expense 2 Equity Based Payments Corporate and Compliance Fees Consultancy Expense Exploration Costs Expensed Administration Depreciation and Amortisation Interest and Finance Expenses Loss on sale of tenements Other Expenses Loss before income tax Income tax expense Loss after tax Other comprehensive income Exchange differences on translation of foreign operations Other comprehensive income for the period net of tax Total comprehensive loss for period Basic loss per share (cents)	CONSOLIDATED 31 December 2010 $ 31 December 2009 $ 28,040 42,670 (197,478) (96,090) - (36,075) (92,762) (105,528) (98,386) (134,468) (65,339) (11,648) (4,112) (19,335) (2,972) (2,710) (747) (951) - (52,333) (53,079) (35,054)
	(486,835) (451,522) - -
	(486,835) (451,522) - (3,503) - (31,101)
	(3,503) (31,101)
	(490,338) (482,623)
	(0.76) (0.78)

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED STATEMENT OF FINANCIAL POSITION As at 31 December 2010

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Financial assets Other assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Provision TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 4 Reserves Accumulated losses TOTAL EQUITY	CONSOLIDATED As at 31 December 2010 $ As at 30 June 2010 $ 2,170,501 1,536,996 3,444 67,185 84,688 9,683
	2,258,633 1,613,864
	13,419 16,391 120,000 120,000 16,475 16,475
	149,894 152,866
	2,408,527 1,766,730
	164,508 359,590 6,955 3,846
	171,463 363,436
	171,463 363,436
	2,237,064 1,403,294
	9,256,380 7,932,272 428,892 432,395 (7,448,208) (6,961,373)
	2,237,064 1,403,294

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED STATEMENT OF CHANGES IN EQUITY

For the Half-Year Ended 31 December 2010

Balance at 1 July 2010 Loss for the period Exchange differences arising on translation of foreign operations Total comprehensive loss for the period Share capital net of capital raising costs Balance at 31 December 2010 Balance at 1 July 2009 Loss for the period Exchange differences arising on translation of foreign operations Total comprehensive loss for the period Recognition of equity based payments Foreign exchange translation Share capital net of capital raising costs Balance at 31 December 2009

CONSOLIDATED Issued Capital Accumulated Losses Share Based Payment Reserve Foreign Currency Reserve Total Equity $ $ $ $ $ 7,932,272 (6,961,373) 439,865 (7,470) 1,403,294 - (486,835) - - (486,835) - - - (3,503) (3,503) - (486,835) - (3,503) (490,338) 1,324,108 - - - 1,324,108 9,256,380 (7,448,208) 439,865 (10,973) 2,237,064 7,079,164 (917,991) 363,455 (46,572) 6,478,056 - (451,522) - - (451,522) - (31,101) - - (31,101) - (482,623) - - (482,623) - - 112,503 - 112,503 - - - 46,572 46,572 753,111 - - - 753,111

7,832,275 (1,400,614) 475,958 - 6,907,619

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED CASH FLOW STATEMENTS

For the Half-Year Ended 31 December 2010

CONSOLIDATED

Cash flows from operating activities Payments to suppliers and employees Interest received Payments for new project generation Net cash flows used in operating activities Cash Flows from investing activities Payments for exploration and evaluation Net cash flows used in investing activities Cash flows from financing activities Proceeds from the issue of shares Payments for share issue costs Proceeds from sale of tenements Net cash flows from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 31 December	31 December 2010 $ 31 December 2009 $ (375,883) (282,024) 26,028 41,666 (352,684) -
	(702,539) (240,358)
	- (989,783)
	- (989,783)
	1,437,433 808,367 (101,389) - (111,705) 10,000
	1,336,044 706,662
	633,505 (523,479) 1,536,996 3,169,060
	2,170,501 2,645,581

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2010

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134: Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Company as in the full financial report. It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and any public announcements made by Jameson Resources Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and ASX Listing Rules.

The Accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

Basis of preparation

The half-year report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. For the purpose of preparing the half-year report, the half-year has been treated as a discrete reporting period.

Significant accounting judgements and key estimates

The preparation of interim financial reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

In preparing this interim report, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2010.

Adoption of new and revised Accounting Standards

In the half-year ended 31 December 2010, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2010.

The Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2010. 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 its business and, therefore, no change necessary to Group accounting policies.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2010

2. LOSS BEFORE INCOME TAX EXPENSE

LOSS BEFORE INCOME TAX EXPENSE
	31 December	31 December
	2010	2009
	$	$
The following revenue and expense items are relevant
in explaining the financial performance for the half-year:
Interest revenue	28,040	42,670
Employee benefit expenses	(197,478)	(96,090)

3. DEFERRED EXPLORATION AND EVALUATION EXPENDITURE

Costs carried forward in respect of areas of interest in the following phases Exploration and evaluation phase – at cost Balance at beginning of period Expenditure capitalised Write offs As at balance date	31 December 2010 $ 30 June 2010 $ - -
	- 3,487,777 - 1,310,554 - (4,798,331)
	- -

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

4. ISSUED CAPITAL

SUED CAPITAL
95,828,865 (30 June 2010: 63,385,910) Issued and fully paid ordinary shares Movements in ordinary shares on issue At 1 July 2010 Shares issued - Entitlements Issue Shares issued – Underwritten Shortfall Capital raising costs At 31 December 2010	31 December 2010 30 June 2010 $ $ 9,256,380 7,932,272
	Number $ 63,885,910 7,932,272 18,881,114 849,650 13,061,841 587,783 - (113,325)
	95,828,865 9,256,380

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED NOTES TO THE FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2010

5. SEGMENTAL REPORTING

Jameson Resources Limited operates predominantly in one industry being the mining and exploration industry in Australia and Canada.

Segment Information

Identification of reportable segments

The Company has identified its operating segments based on the internal reports that are reviewed and used by the board of directors in assessing performance and determining the allocation of resources.

The Company is managed primarily on the basis of its coal exploration in Canada and its corporate 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

(i) Coal exploration

Segment assets, including acquisition cost of exploration licences and all expenses related to the tenements in Canada are reported on in this segment.

(ii) Corporate

Corporate, including treasury, corporate and regulatory expenses arising from operating an ASX listed entity. Segment assets, including cash and cash equivalents, and investments in financial assets are 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 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 Company.

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, 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 Company as a whole and are not allocated. Segment liabilities include trade and other payables.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED NOTES TO THE FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2010

5. SEGMENTAL REPORTING (Continued)

(i) Segment performance

31 December 2010 Segment revenue Segment results Included within segment result: • Depreciation • Interest Revenue Segment assets Segment liabilities 31 December 2009 Segment revenue Segment results Included within segment result: • Depreciation • Interest Revenue 30 June 2010 Segment assets Segment liabilities	Corporate Coal Exploration Total $ $ $ 28,040 - 28,040 (166,644) (320,191) (486,835) (2,972) - (2,972) 28,040 - 28,040 2,339,378 69,149 2,408,527 (171,463) - (171,463) 42,670 - 42,670
	(451,522) (31,101) (482,623)
	(2,710) - (2,710) 42,670 - 42,670 1,704,635 62,095 1,766,730 (92,292) (271,144) (363,436)

(ii) Revenue by geographical region

There is no revenue attributable to external customers for the half year periods ended 31 December 2009 and 2010.

(iii) Assets by geographical region

Reportable segment assets are located in Canada and Australia.

6. CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

7. EVENTS SUBSEQUENT TO REPORTING DATE

No matters or circumstances have arisen since the end of the financial year which significantly affects the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

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JAMESON RESOURCES LIMITED ACN 126 398 294

DIRECTORS' DECLARATION

For the Half Year Ended 31 December 2010

The Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 5 to 12 are in accordance with the Corporations Act 2001, including:

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

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

4. 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 signed in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the Corporations Act 2001.

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John Holmes Executive Director

Dated this 8th day of March 2011

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Jameson Resources Limited

Report on the Condensed Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Jameson Resources Limited (“the Company”) which comprises the condensed statement of financial position as at 31 December 2010, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory notes and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

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

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

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HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4 130 Stirling Street Perth 6000 PO Box 8124 Perth BC 6849 Western Australia. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. 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 world-wide organisation of accounting firms and business advisers

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Independence

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

Conclusion

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

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

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

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HLB MANN JUDD

Chartered Accountants

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Perth, Western Australia 8 March 2011

N G NEILL Partner

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