JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2017

Mar 5, 2017

JAMESON RESOURCES LIMITED ACN 126 398 294

Half-Year Financial Report 31 December 2016

JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

Company Directory	1
Directors' Report	2
Auditor’s Independence Declaration	10
Condensed Consolidated Statement of Profit or Loss
and Other Comprehensive Income	11
Condensed Consolidated Statement of Financial Position	12
Condensed Consolidated Statement of Changes in Equity	13
Condensed Consolidated Statement of Cash Flows	14
Notes to the Condensed Consolidated Financial Statements	15
Directors' Declaration	24
Independent Auditor’s Review Report	25

COMPANY DIRECTORY

DIRECTORS

Mr T. Arthur Palm (Chairman and Chief Executive Officer) Mr Steve van Barneveld (Non-Executive Director)

Mr Joel Nicholls (Non-Executive Director)

COMPANY SECRETARY

Ms Suzie Foreman

REGISTERED OFFICE

Jameson Resources Limited Suite 5, 62 Ord Street WEST PERTH WA 6005 Telephone: +61 8 9200 4473 Facsimile: +61 8 9200 4463

AUDITORS

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

SHARE REGISTRAR

Security Transfer Registrars 770 Canning Highway APPLECROSS WA 6153 Telephone: +61 8 9315 2333

SECURITIES 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 For the Period Ended 31 December 2016

Your directors submit the financial report of the consolidated entity for the half-year ended 31 December 2016. In order to comply with the provisions of the Corporations Act 2001, the Directors report 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.

Mr T. Arthur Palm Mr Steve van Barneveld

Mr Joel Nicholls (appointed 15 September 2016) Mr Jeff Bennett (resigned 11 November 2016)

RESULTS

The loss after tax for the period ended 31 December 2016 was $503,755 (2015: $580,429).

BUSINESS OF THE COMPANY

Jameson Resources Ltd (“Jameson” or “the Company”) is focused on exploring for and developing low cost high quality coking coal operations in British Columbia, Canada. Western Canada benefits from world-class railways and deep water ports, which allow the Province of British Columbia to be among one of the leading metallurgical coal suppliers to the seaborne market.

The Company also examines other business opportunities from time-to-time as they arise.

REVIEW OF OPERATIONS

Summary for the Half Year Period

The reporting period saw a surge in coking coal prices, with the benchmark price tripling in value as of the Q1 2017 settlement of US $275/ton.

The price increase refocused investor attention on the coking coal sector. This was reflected in a steep rise in the share price of Jameson, from 3 cents per share at the start of the reporting period to 9 cents per share at period end.

The uptick in coal prices also dramatically altered the economics of Jameson’s flagship Crown Mountain Coking Coal project. Coal prices now substantially exceed those assumed in the 2014 Pre-feasibility Study (“PFS”).

Since the PFS was issued 2 years ago, the Company has been working to identify potential savings in CAPEX and OPEX. With the market’s renewed interest in coking coal, Jameson elected to raise funds and move forward with a PFS update. A share placement netting approximately $1 million was completed in early October, and Norwest Corporation was authorised to commence the PFS update in November.

Jameson continues to advance its flagship Crown Mountain Coking Coal Project (“Crown Mountain”) through the pre-application phase of the Environmental Assessment permitting process. Crown Mountain is located in the prolific Elk Valley coal fields of southeast British Columbia: several key milestones were achieved during the half-year.

In December, the Chief Gold Commissioner of British Columbia granted Jameson’s Application for an additional Coal License at Crown Mountain, reducing project risk.

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

Other than environmental expenses and the in-progress PFS update, the only costs Jameson has incurred on Crown Mountain are those required to maintain the exploration licenses (vendor and governmental rents, etc). The pursuit of an EA certificate for Crown Mountain, and any work towards a Bankable Feasibility Study (“BFS”) will be subject to periodic Board review. At this time the immediate objective is to complete the formal pre-application EA documents and then re-evaluate strategy going forward.

Regarding the Dunlevy property in northeast British Columbia, Jameson has not performed any formal exploration since 2014. Jameson’s strategy has been to retain Dunlevy for future development, subject to the economic environment, as holding costs are minimal.

Figure 1 below depicts the locations of Jameson’s coal projects.

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Figure 1: Project Locations

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

British Columbia

Elk Valley Coal Field - Crown Mountain Project

The Crown Mountain project (“Crown Mountain” or “the Project”) is located within the Elk Valley coal field in south eastern British Columbia (Figures 1 & 2). Along with the Crowsnest coal field, this region is home to five of Canada’s producing coal mines. These five coal mines produce over 23 million tonnes per annum of export quality metallurgical coal, over 75% of Canada’s total coal exports, making the Elk Valley coal fields the most productive in the nation.

Crown Mountain sits in the heart of this area in close proximity to two significant metallurgical coal mines, Line Creek which is 12km to the north, and Elkview which is 8km to the southwest (Figure 2). The Project includes six granted coal licences (418150, 418151, 418152, 418153, 418154, and 418966) covering an area of 3,562 hectares (Table 1). License 418966, which had been applied for in 2013, was granted in December. All licenses are in good standing.

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Figure 2: Crown Mountain Coal Licence Locations

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

Licence Name	License Number	Status	Area (Ha)	Annual Rent
North Block	418150	Granted	334	$2,338
South Block	**418151 **	Granted	1,001	$7,007
West Crown	418153	Granted	251	$1,757
Southern Extension	**418154 **	Granted	835	$5,845
Crown East	**418152 **	Granted	167	$1,169
NorthwestExtension	418966	Granted	974	$6,818
TOTAL			**3,562 **	**$24,934 **

Table 1 – Crown Mountain Coal Licence Summary Table (CAD)

In 2014 Norwest Corporation completed a Pre-feasibility study (PFS) that determined Crown Mountain contained run-of-mine reserves totalling 56 million tonnes as shown in Table 2:

Area	ASTM Group	Run of Mine Coal Reserves	Run of Mine Coal Reserves	Run of Mine Coal Reserves	Run of Mine Coal Reserves
		(Ktonnes)
		Proven		Probable
		COKING	PCI	COKING	PCI
North Pit	Bituminous	7,252	756	4,907	1,192
East Pit		3,563	461	0	0
South Pit		31,784	5,914	0	0
Sub-Total		42,599	**7,131 **	**4,907 **	**1,192 **
Total Proven & Probable		49,730		6,099
Total		55,829

Table 2 – Crown Mountain Reserve Summary Table

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

An update of the PFS commenced in November. Norwest Corporation of Vancouver, Canada is leading the effort, with input from processing and infrastructure expert Sedgman and mining expert Kiewit. Areas of focus include:

• The significant effect on the project from the lower Canadian dollar - US dollar exchange rate.

• Savings attributable to lower fuel costs.

• Blending of the North/East/South pit products to achieve a higher Life of Mine (LOM) average relative sales price while producing a consistent LOM product.

• Use of contract mining to reduce capital costs and allow for the flexibility required to implement a LOM blending strategy.

• Capital cost reductions available through re-examining the PFS capital schedule and applying industry best practices coupled with the lower costs inherent in a current worldwide surplus of mining equipment.

• Operating cost reduction achievable through optimised equipment selection, and industry best practice equipment utilisation.

The anticipated result from the above described items is lower capital and operating cost. Mine life would be extended should the Southern Extension prove viable (the Southern Extension is not included in the PFS due to its “inferred” status).

It should be noted that the primary focus of the PFS update is on reducing CAPEX and OPEX. However, the recent surge in coking coal prices does have an effect on project economics. For example, at the Q1 2017 benchmark of US $275/ton and a CAD:USD exchange rate of 0.76, the effective Canadian coal sales price is CAD $362. This compares to the initial sales price assumed in the 2014 PFS of CAD $185.

Jameson did not conduct additional drilling during 2016, as the 2012-2013 programs provided adequate data to underpin the PFS and on which to commence preparation of an application for an Environmental Assessment (EA) certificate. Further field work will be necessary to complete the EA application, support design engineering, and allow preparation of a BFS.

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

Peace River Coal Field – Dunlevy

Dunlevy overlies the northwest extension of the Peace River coal field district of northeast British Columbia.

The Dunlevy property is located in a well-developed area, approximately 90 km from Fort St. John, a regional commercial centre. All weather roads and good quality secondary roads link the Project to Fort St. John and Chetwynd, where Canadian National Railway’s track is located. The rail provides access to the Ridley, Westshore, and Neptune coal terminals. There is also potential to reduce transportation costs by utilising the large man-made lake (Williston Lake) bordering the property to transport coal by barge to rail access at the industrial town of MacKenzie.

Dunlevy drilling and coal quality results were announced in 2014. No exploration is currently planned on Dunlevy in the short term, as the Company focuses its resources on the flagship Crown Mountain asset. However, as circumstances change with respect to the resurgent coal market, the Company may reassess its plans for the Dunlevy project.

Dunlevy consists of the two issued coal exploration licenses shown below in Table 3:

Project	Licence Number	Status	Area (Ha)	Annual Rent
Dunlevy	418441	Granted	1,146	$8,022
Dunlevy	418442	Granted	1,388	$9,716
TOTAL			**2,534 **	$17,738

Table 3 – Dunlevy Project Coal Licence Summary Table (CAD)

CORPORATE MATTERS

On 4 October 2016 a total of 14.3 million shares were issued at a price of $0.07 per share raising approximately $1 million. In addition, 7.1 million free attaching options, on a 1-for-2 basis, were issued at an exercise price of $0.105, expiring on or before 30 September 2018. The Board deems current cash levels to be adequate to fund ongoing pre-application EA work at Crown Mountain as well as the PFS update.

Jameson continued to reap significant savings in the administrative cost area during the reporting period. The Perth and Vancouver offices are operating in near-virtual status, with no Company employees in either location. The CEO remains Jameson’s only full-time employee.

In the September quarter, Jameson received CAD$127,741 from the Canada Revenue Agency (“CRA”) under the British Columbia Mining Exploration Tax Credit (“BCMETC”) program for expenses related to Dunlevy exploration.

CRA advised Jameson that the BCMETC filings for Crown Mountain would not be accepted in their entirety and proposed a reduction of approximately C$250,000 from the 2014 tax claim. Jameson challenged that decision in December, and awaits the CRA’s response and final assesment, however the Company firmly believes it was correct in claiming the disputed expenses. Jameson has elected to provide for the proposed reclaim amount of C$250,000 in the half yearly report, notwithstanding the fact that this amount is still uncertain and timing of payment unclear.

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

Joel Nicholls joined the Board as a non-executive Director during the reporting period. The addition of Mr Nicholls strengthens the Board in the area of financial analysis and controls, and industry contacts. Cofounding non-executive Director Jeff Bennett retired from the Board in November.

The increase in coking coal prices has resulted in a number of inquiries from parties regarding Jameson’s assets. The Company will continue to engage in conversations with interested parties with the objective of maximizing shareholder value. Jameson will also review available acquisition opportunities as they arise.

EVENTS SUBSEQUENT TO REPORTING DATE

There are no matters or circumstances that 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.

SUMMARY

Jameson Resources is well positioned in coking coal with the Crown Mountain project.

The Company will complete execution of the PFS update and continue certain pre-application EA activities. The Board is continuously assessing the coking coal market with an eye towards further advancing Crown Mountain in a prudent manner as circumstances allow.

COMPETENT PERSONS STATEMENT

Mineral Reserves and Prefeasibility Study Results

The information in this Report relating to the Mineral Reserve Estimate and Pre-Feasibility Study Results of the Company’s Crown Mountain Coal Project are extracted from the ASX Release entitled “Prefeasibility study confirms Crown Mountain coking coal project will enjoy outstanding economics” announced on 11 August 2014 and is available to view on the ASX website (ASX:JAL) and the Company's website. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the reserve estimates and prefeasibility study results in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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JAMESON RESOURCES LIMITED ACN 126 398 294

HALF-YEAR FINANCIAL REPORT For the Period Ended 31 December 2016

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 10 of this report and forms part of this Directors’ Report for the half-year ended 31 December 2016.

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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Art Palm Chief Executive Officer

Dated this 6th day of March 2017

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the consolidated financial report of Jameson Resources Limited for the half-year ended 31 December 2016, 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.

Perth, Western Australia 6 March 2017

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M R W Ohm Partner

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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: 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 worldwide organisation of accounting firms and business advisers.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the Half Year Ended 31 December 2016

Note Revenue 2 Employee benefits expense 2 Corporate and compliance fees Consultancy expense New project expense Administration Depreciation and amortisation Interest and finance expenses Foreign exchange gain Other expenses Writedown of capitalised exploration Writeoff of bad debt Loss before income tax Income tax (expense) / benefit 2 Loss after tax Other comprehensive income/(expense) Items that may be reclassified to profit or loss: Exchange differences on translation of foreign operations Other comprehensive loss for the period, net of tax Total comprehensive loss for period Basic loss per share (cents)	CONSOLIDATED 31 December 2016 $ 31 December 2015 $ 7,257 36,664 (86,087) (92,196) (87,801) (105,104) (1,333) (15,198) (1,395) (8,397) (21,315) (40,539) (3,029) (4,326) (4,796) (4,848) (14,699) (73,721) (37,868) (50,845) (6,109) (676,225) (5,705) - (262,880) (1,034,735) (240,875) 454,306 (503,755) (580,429) (147,719) (816,346) (147,719) (816,346) (651,474) (1,396,775) (0.23) (0.28)	CONSOLIDATED 31 December 2016 $ 31 December 2015 $ 7,257 36,664 (86,087) (92,196) (87,801) (105,104) (1,333) (15,198) (1,395) (8,397) (21,315) (40,539) (3,029) (4,326) (4,796) (4,848) (14,699) (73,721) (37,868) (50,845) (6,109) (676,225) (5,705) - (262,880) (1,034,735) (240,875) 454,306 (503,755) (580,429) (147,719) (816,346) (147,719) (816,346) (651,474) (1,396,775) (0.23) (0.28)
		(1,034,735) 454,306
		(580,429)
		(816,346)
		(816,346)
		(1,396,775)
		(0.28)

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2016

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other receivables Deferred exploration and evaluation expenditure 3 Property, plant and equipment Other assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Provision 4 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 5 Reserves 6 Accumulated losses TOTAL EQUITY	CONSOLIDATED As at 31 December 2016 $ As at 30 June 2016 $ 2,479,344 1,891,057 12,975 141,722 5,129 21,089 2,497,448 2,053,868 92,782 93,957 10,641,701 10,453,580 37,115 40,700 538 5,160 10,772,136 10,593,397 13,269,584 12,647,265 112,951 86,775 256,305 - 369,256 86,775 369,256 86,775 12,900,328 12,560,490 27,685,133 26,738,821 1,855,131 2,002,850 (16,639,936) (16,181,181) 12,900,328 12,560,490	CONSOLIDATED As at 31 December 2016 $ As at 30 June 2016 $ 2,479,344 1,891,057 12,975 141,722 5,129 21,089 2,497,448 2,053,868 92,782 93,957 10,641,701 10,453,580 37,115 40,700 538 5,160 10,772,136 10,593,397 13,269,584 12,647,265 112,951 86,775 256,305 - 369,256 86,775 369,256 86,775 12,900,328 12,560,490 27,685,133 26,738,821 1,855,131 2,002,850 (16,639,936) (16,181,181) 12,900,328 12,560,490
		2,053,868
		93,957 10,453,580 40,700 5,160
		**10,593,397 **
		12,647,265
		86,775 -
		86,775
		86,775
		12,560,490
		26,738,821 2,002,850 (16,181,181)
		12,560,490

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Half-Year Ended 31 December 2016

Balance at 1 July 2016 Loss for the period Exchange differences arising on translation of foreign operations Total comprehensive (loss) for the period Expiry of exchangeable shares Conversion of exchangeable shares Shares issued net of costs Balance at 31 December 2016 Balance at 1 July 2015 Loss for the period Exchange differences arising on translation of foreign operations Total comprehensive (loss) for the period Balance at 31 December 2015	CONSOLIDATED Contributed Equity Accumulated Losses Equity Based Payment Reserve Foreign Currency Translation Reserve Total Equity $ $ $ $ $ 26,738,821 (16,181,181) 1,156,911 845,939 12,560,490 - (503,755) - - (503,755) - - - (147,719) (147,719)
	- (503,755) - (147,719) (651,474) (45,000) 45,000 - - - (67,500) - - - (67,500) 1,058,812 - - - 1,058,812
	27,685,133 (16,639,936) 1,156,911 698,220 12,900,328
	28,426,321 (15,579,366) 1,156,911 1,034,391 15,038,257 - (580,429) - - (580,429) - - - (816,346) (816,346)
	- (580,429) - (816,346) (1,396,775)
	28,426,321 (16,159,795) 1,156,911 218,045 13,641,482

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Half-Year Ended 31 December 2016

Cash flows from operating activities Receipts from other sources Interest received Payments to suppliers and employees Net cash flows used in operating activities Cash Flows from investing activities Payments for exploration and evaluation Receipt of BC Mining Tax Credit Net cash flows (used in)/ provided by investing activities Cash flows from financing activities Proceeds from the issue of shares Payments for share issue costs Net cash flows provided by financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 July Foreign currency translation on cash held Cash and cash equivalents at 31 December	CONSOLIDATED 31 December 2016 $ 31 December 2015 $ 6,267 - 2,523 4,251 (230,652) (291,078) (221,862) (286,827) (298,676) (575,354) 127,984 647,703 (170,692) 72,349 1,000,000 - (4,838) - 995,162 - 602,608 (214,478) 1,891,057 2,432,431 (14,321) (149,999) 2,479,344 2,067,954	CONSOLIDATED 31 December 2016 $ 31 December 2015 $ 6,267 - 2,523 4,251 (230,652) (291,078) (221,862) (286,827) (298,676) (575,354) 127,984 647,703 (170,692) 72,349 1,000,000 - (4,838) - 995,162 - 602,608 (214,478) 1,891,057 2,432,431 (14,321) (149,999) 2,479,344 2,067,954
		(286,827)
		(575,354) 647,703
		72,349
		- -
		-
		(214,478) 2,432,431 (149,999)
		2,067,954

The accompanying notes form part of these financial statements.

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2016

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The half-year consolidated financial statements are general purpose financial statements 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 condensed 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 Group 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 2016 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 2016 except for the following:

In May 2016 the Company was advised that the 2014 and 2015 BC Mineral Tax claims (“BCMETC”) returns were to be audited by the Canadian Revenue Agency (“CRA”). Subsequently the Compay was advised by CRA that certain expenditures would be disallowed.

The basis for disallowing the expenditures is CRA’s belief that NWP has entered into the environmental assessment permitting phase of the development of the Crown Mountain project site and therefore, all of the expenses incurred for environmental assessments, wildlife studies, archeological studies and the like are deemed not to be exploration related as they are not for the purpose of “determining the existence, extent, location or quality of a mineral resource in BC”.

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2016

The Company firmly believes it has followed proper guidelines in claiming these expenses, and presented its challenge to the CRA’s proposal on 20 December, 2016 with a comprehensive response supported by independent consultants and reviewed by its Canadian taxation advisor. Once the response has been considered by the CRA and a final assessment is provided, the Company has the right to appeal any decision and will consider a course of action based upon advice received from its in-country taxation specialist.

No formal response has yet been provided by the CRA on Jameson’s submission as at the date of this report.

As a result, the Company has recogised a provision of CAD$250,000 representing the obligation.

The Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the half-year reporting period and determined that no material change is necessary to Group accounting policies.

The Directors have also determined that there is no material impact of the new and revised Standards and Interpretations in issue not yet adopted on the Company and therefore no material change is necessary to Group accounting policies.

Accounting policies and methods of computation

The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding interim reporting period. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current half-year.

**2. **	LOSS FOR THE PERIOD
		31 December	31 December
		2016	2015
		$	$
	The following items are relevant in explaining the financial
	performance for the half-year:
	Interest revenue	7,257	4,251
	Other revenue	-	32,413
	BC Mining Tax Credit (expense) / benefit	(240,875)	454,306
	Employee benefits expense	(86,087)	(92,196)

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2016

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 Impairment of Dunlevy project Write off of Peace River projects Foreign currency translation As at balance date	Half-year ended 31 December 2016 $ Year ended 30 June 2016 $ 10,641,701 10,453,580
	10,453,580 11,906,867 318,959 747,109 - (1,364,850) - (533,359) (130,685) (302,187)
	10,641,701 10,453,580

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

4. PROVISIONS

BCMETC reclaim

During the half year period and following an audit of its Canadian Taxation Return, the Company received a draft assessment from the Canadian Revenue Agency proposing to disallow CAD$250,000 of the previously reclaimed 2014 BC Mineral Tax Credit. This matter was previously disclosed as a Contingent Liability in the 2016 Annual Financial Report, however the board have considered it prudent to provide for the potential reclaim in the Half Yearly Report.

Once an amended assessment has been received the Company has the right to appeal any decision and will consider this based upon advice received from its in country taxation specialist.

Other than outlined above, there has been no change in contingent liabilities since the last annual reporting date.

5. ISSUED CAPITAL

(a) 223,151,333 (30 June 2016: 208,565,619) issued and fully paid ordinary shares (b) nil (30 June 2016: 500,000) exchangeable shares	31 December 2016 30 June 2016 $ $ 27,685,133 26,626,321 - 112,500
	27,685,133 26,738,821

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2016

5. ISSUED CAPITAL (con’t)

(a) Fully Paid Ordinary Shares Movements in ordinary shares on issue At 1 July 2016 Placement at $0.07 per share Shares issued on conversion of exchangeable shares Share issue costs At 31 December 2016 (b) Exchangeable Shares Movements in exchangeable shares At 1 July 2016 Exchangeable shares converted (i) Exchangeable shares lapsed unconverted (ii) At 31 December 2016	Number $ 208,565,619 26,626,321 14,285,714 1,000,000 300,000 67,500 - (8,688)
	223,151,333 27,685,133
	Number $ 500,000 112,500 (300,000) (67,500) (200,000) (45,000)
	- -

• (i) During the half year, 300,000 (2015: 100,000) exchangeable shares in Jameson’s subsidiary, NWP Coal Canada, were exchanged by the election of the holders, on a “one-for-one” basis, into 300,000 Jameson fully paid ordinary shares. The shares were originally issued pursuant to the Dunlevy acquisition. Refer the Company’s annual financial report 30 June 2016 for details.

• (ii) As at 13 December 2016, the remaining 200,000 exchangeable shares expired, unconverted.

6. RESERVES

Equity Based Payment Reserve (a) Foreign Currency Translation Reserve (b)	31 December 2016 $ 1,156,911 698,220 1,855,131	30 June 2016 $ 1,156,911 845,939
		2,002,850

(a) Equity Based Payment Reserve:

Balance at period end

1,156,911 1,156,911

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2016

6. RESERVES (con’t)

Movements in Options Balance at the beginning of the period Options issued (i) 2,000,000 $0.20 options expired 31 August 2016 14,300,000 $0.16 options expired 30 September 2016 Balance at the end of the period	31 December 2016 Number 16,300,000 7,142,857 (2,000,000) (14,300,000) 7,142,857	30 June 2016 Number 16,300,000 - - -
		16,300,000

• (i) During the period, the Company issued 7,142,857 options exercisable at $0.105 per option, on or before 30 September 2018. These were free attaching options for the Placement completed on 3 October 2016.

(b) Foreign Currency Translation Reserve:

Balance at the beginning of the period Foreign exchange differences Balance at the end of the period LOSS PER SHARE (a) Loss used in the calculation of basic loss per share (b) Weighted average number of ordinary shares outstanding during the reporting period used in calculation of basic loss per share:		31 December 2016 $ 845,939 (147,719) 698,220 31 December 2016 $ (503,755) Number of shares 212,061,406	30 June 2016 $ 1,034,391 (188,452) 845,939 31 December 2015 $ (580,429) Number of shares 208,508,633

7. LOSS PER SHARE

• (a) Loss used in the calculation of basic loss per share

The diluted earnings per share is not disclosed as the Company made a loss for the period.

8. SEGMENT REPORTING

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

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resources.

JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2016

8. SEGMENT REPORTING (cont’)

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 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 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

NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2016

8. SEGMENT REPORTING (cont’)

(i) Segment performance

31 December 2016 Segment revenue Segment results Included within segment result: • Depreciation • Interest Revenue • Writedown of capitalised exploration • BC Mining Tax Credits 31 December 2016 Segment assets Segment liabilities 31 December 2015 Segment revenue Segment results Included within segment result: • Depreciation • Interest Revenue • BC Mining Tax Credits • Project writedown 31 December 2015 Segment assets Segment liabilities	Corporate Coal Exploration Total $ $ $ 4,806 2,451 7,257
	(229,135) (274,620) (503,755)
	(151) (2,878) (3,029) 4,806 2,451 7,257 - 6,109 6,109 - (240,875) (240,875) 1,548,452 11,721,132 13,269,584 (323,435) (45,821) (369,256) Corporate Coal Exploration Total $ $ $ 980 35,684 36,664
	(368,487) (211,942) (580,429)
	(454) (3,872) (4,326) 980 3,271 4,251 - 454,306 454,306 - (676,225) (676,225) 1,159,888 12,535,485 13,695,373 (39,821) (14,070) (53,891)

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2016

8. SEGMENT REPORTING (cont’)

(ii) Revenue by geographical region

There is no revenue attributable to external customers for the half year period ended 31 December 2016 (2015: $32,413).

(iii) Assets by geographical region

Reportable segment assets are located in Canada and Australia.

9. SHARE BASED PAYMENTS

The Company provides benefits to directors and contractors of the Group in the form of share-based payment transactions, whereby options to acquire ordinary shares are issued as an incentive to improve Board and shareholder goal congruence.

No options were issued to the directors as part of their remuneration during the six months ended 31 December 2016.

No share-based payments were made during the reporting period.

10. FINANCIAL INSTRUMENTS

This note provides information about how the Group determines fair values of various financial assets and liabilities.

The Directors consider that the carrying value of the financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values.

FINANCIAL ASSETS Cash & cash equivalents Trade & other receivables FINANCIAL LIABILITIES Trade & other creditors	31 December 2016 30 June 2016 Carrying amount $ Fair value $ Carrying amount $ Fair value $
	2,479,344 2,479,344 1,891,057 1,891,057 23,925 23,925 141,722 141,722 2,503,269 2,503,269 2,032,779 2,032,779 369,256 369,256 86,775 86,775 369,256 369,256 86,775 86,775

11. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Dunlevy Energy Inc. acquisition As a condition for the acquisition of Dunlevy Energy Inc. and the Dunlevy Project, Jameson agreed to pay Mr Ken Murfitt C$250,000 (plus Canadian HST) upon commencement of commercial production from the Dunlevy Project.

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JAMESON RESOURCES LIMITED ACN 126 398 294

NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the Half-Year Ended 31 December 2016

12. EVENTS SUBSEQUENT TO REPORTING DATE

There are no matters or circumstances that 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.

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JAMESON RESOURCES LIMITED ACN 126 398 294

DIRECTORS' DECLARATION

For the Half Year Ended 31 December 2016

In the opinion of the Directors of Jameson Resources Limited (“the Company”):

1. the attached financial statements and notes thereto are in accordance with the Corporations Act 2001 including:

2. a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. b) giving true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year then ended; and

4. 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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Art Palm Chief Executive Officer

Dated this 6th day of March 2017

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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 consolidated statement of financial position as at 31 December 2016, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated 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, for the Group 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 internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and 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 half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group’s financial position as at 31 December 2016 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 the company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

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: 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 worldwide organisation of accounting firms and business advisers.

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Conclusion

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

• (a) giving a true and fair view of the Group’s financial position as at 31 December 2016 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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M R W Ohm Partner

Perth, Western Australia 6 March 2017

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