annual financial report NiPlats Australia Limited

for the year ended 30 june 2007

ACN 100 714 181 (formerly Colonial Mining Limited)

NIPLAT S AU S TRALIA LI M ITED - ACN 100 714 181 corporate directory

DIRECTORS

Anthony Barton (Non Executive Chairman) Appointed 21 May 2007

Keith Liddell (Non Executive Director) Appointed 28 May 2002

Richard Wolanski (Executive Director) Appointed 21 May 2007

COMPANY SECRETARY

Richard Wolanski Appointed 21 May 2007

REGISTERED OFFICE

Level 22, Allendale Square 77 St Georges Terrace Perth WA 6000

Tel: (08) 9221 8055 Fax: (08) 9221 7866

INternet address

SOLICITORS

Blakiston & Crabb 1202 Hay Street West Perth WA 6005

bankers

ANZ Banking Corporation Level 9 77 St Georges Terrace Perth WA 6000

SHARE REGISTer

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153

AUDITORS

Ernst & Young 11 Mounts Bay Road Perth WA 6000

Table of Con t e n t s

Chairman's Report	3
Operations Report	4
Directors' Report	6
Corporate Governance Statement	14
Auditor's Independence Declaration	21
Directors Declaration	22
Consolidated Income Statement	23
Consolidated Balance Sheet	24
Consolidated Cash Flow Statement	25
Statement of Changes in Equity	26
Notes to the Consolidated Financial Statements	27
AS X Add itional Information	48
Independent Audit Report	50

Cha irm an's Re p o rt

Dear Shareholder,

On behalf of the Board, it is with great pleasure I report the achievements made by NiPlats Australia Limited ("NiPlats" or the "Company") this year at both operational and corporate levels. NiPlats has commenced the process of establishing a reputation as a credible and efficient explorer and emerging project developer in Australia.

I welcome you to the first Annual Report of NiPlats. This reflects the achievement of a critical milestone for the Group through the successful initial public offering. The Directors note the short period of time that has elapsed from the date of the Prospectus (3 July 2007) that resulted in the successful listing of the Company on the Australian Securities Exchange on the 21 September 2007. It should also be noted that the financial report reflects a period before the issue of the prospectus and the listing of the Company.

NiPlats has 100% owned mineral exploration tenements in the East Kimberley region of Western Australia ("Tenements") covering an area of approximately 473 square kilometres. These dolerite and gabbro occurrences resemble the sulphide-poor, vanadium-rich magnetite gabbro zone near the top of the Bushveld Complex in South Africa – and has affinities with other sulphide-poor, platinum-rich mafic intrusions in South Africa, Canada, The United States of America and Greenland.

The Directors believe the Tenements offer excellent potential for the discovery of platinum group elements plus gold ("PGE+Au"), nickel-copper, vanadium, copper-gold and gold-silver in several different geological settings. This has been initially validated through the recent discovery of a PGE+Au reef and vanadium zone.

NiPlat's Tenements also host a fluorite vein system with Indicated and Inferred Resources of 4.4Mt at 23.6% CaF2 ("Fluorite Project").

Vanadium mineralisation is also present within the Tenement area as well as several occurrences of copper mineralisation.

NiPlats work programme involves a primary focus on the opportunity to explore for PGE+Au, nickel-copper, copper-gold and gold. The high grade, high quality Fluorite Project, may also be further investigated to establish the ability to generate an early cashflow via the production of an acid-grade concentrate, if additional resources can be identified and mining is determined to be economically feasible.

Through the continued hard work of your Company's dedicated management and staff, we have seen continued exploration success and corporate success with the ASX listing and capital raisings. Once again, this seamless combination of skills and knowledge has ensured that our technical and corporate goals are met within budgeted time and cost targets.

I am always available and pleased to talk with shareholders whenever you have queries and ideas regarding the operations of our Company and look forward to meeting with you at our Annual General Meeting.

Anthony Barton Chairman 26 October 2007

Op e r a ti ons Re p o rt

Background

NiPlats has established a portfolio of 100% owned tenements covering approximately 473 square kilometres in the East Kimberley region of Western Australia ("Tenements").

Recent discovery of PGE+Au ("Platinum group elements plus gold") mineralisation in the Tenement area has generated the opportunity for additional exploration. Similar geological settings elsewhere in the world have yielded PGE mineralisation.

In addition to this PGE+Au opportunity, the Tenement area has also shown to be prospective for a range of mineralisation including:

• Nickel-copper;
• Vanadium;
• Copper-gold associated with the existing fluorite mineralisation;
• Copper-gold associated with quartz sulphide breccias; and
• Epithermal gold deposits.

The Tenements contain a high grade quality fluorite deposit with Indicated and Inferred Resources of 4.4Mt at 23.6% CaF2 . The value of the Tenements are underpinned by this previously identified fluorite deposit.

Location

The NiPlats tenements are located approximately 110 kilometres southwest of Kununurra and 100 kilometres south of the port of Wyndham in the Kimberley region of Western Australia. The Tenements are accessed via 45 kilometres of unsealed tracks from the sealed Great Northern Highway.

Fluorite was first recorded in the area in 1905 with the first resources defined in the 1970's, with further development of the resource in the intervening years until the current time.

NiPlats Australia Limited Project Location

Figure 1: NiPlats Australia Ltd Tenure Map

Op e r a ti ons Re p o rt

Exploration Programme completed in 2007

In 2006, a reconnaissance drilling programme discovered previously unknown PGE+Au and vanadium mineralisation within the Tenement area. The Tenement area is also prospective for nickel and copper mineralisation.

The prospectivity of the exploration results in 2006, has led to the initial public offer to fund the exploration of the Tenements and the successful listing on the ASX.

The Company commenced a drilling programme in May 2007. The objective of the programme was to:

• Evaluate the distribution and tenor of PGE+Au and vanadiferous titanomagnetite;
• Delineate additional fluorite veins to increase the existing fluorite resource; and
• Assess zone of iron-oxide alteration known to be anomalous in gold and copper.

The field programme comprised:

1. Upgrading station tracks and establishing drill-site access;
1. Geological mapping;
1. RC drilling; and
1. Soil sampling.

The Company has only recently completed the drilling programme in September 2007 with 10,360 metres drilled in 79 holes.

The programme yielded positive results with early assays confirming the discovery of PGE+Au in the Tenement area. Results from two RC drill holes indicated a 5 to 7 metre thick PGE+Au anomalous zone.

Analysis of samples resulted in combined PGE+Au grades of 0.7 grams/tonne within a 0.2 metre interval in each hole.

Further analysis have shown the presence of a vanadium zone in the Tenements.

Mineral Resource

The Tenements have been previously explored and contain a high grade, high quality fluorite vein system with Indicated and Inferred Resources of 4.4Mt at 23.6% CaF2 (at 10% CaF2 cut-off grade).

Exploration Programme For 2008

The early success achieved will result in further assay work on the drill holes that targeted the vanadiferous titanomagnetite gabbro for PGE+Au and vanadium mineralisation. Results will be reported as they become available and will be the basis for a follow up drilling programme in 2008.

Summary

In order to achieve its objectives the Company has developed the following strategies:

• Short Term: Exploration focused on PGE+Au, nickel-copper, vanadium and copper-gold potential of the Tenements. NiPlats will also add value to the Fluorite Project by further drilling of the Tenements for the purposes of increasing the identified fluorite resource;
• Medium Term: Define resources in the Tenements and advance further identified resources and the Fluorite Project to a feasibility stage, and if economically viable, commence mine development; and
• Long Term: Expand the operations by building mineral reserves within the Tenements and create diversified future opportunities through independent assessment of other opportunities in Australia.

The directors submit their report for NiPlats Australia Limited ("NiPlats" or "the Company") and its controlled entities for the year ended 30 June 2007.

Directors

The names and details of the Company's directors in office during the financial year and until the date of this report are as follows. The directors were in office for the entire period unless otherwise stated.

Anthony Barton (Non Executive Chairman) Appointed 21 May 2007 B.Bus (Accountancy)

Mr Barton has been involved in founding and growing a number of successful listed public companies. Mr Barton has extensive experience in capital markets, corporate finance, funds management and venture capital. Mr Barton has had advisory roles in the incorporation and listing of many Australian based resource companies, including Mineral Securities Limited, Sally Malay Mining Ltd and CopperCo Limited.

Mr Barton is the founding Executive Chairman of the boutique investment bank Australian Heritage Group. Mr Barton is a graduate of the Royal Melbourne Institute of Technology with a Bachelor of Business (Accountancy) degree and he has 30 years of commercial experience having also acted in senior executive and director capacities for two leading Australian stockbroking firms.

Keith Liddell (Non Executive Director) BSc (Hons), MSc (Engineering), FAusIMM, CP (Metallurgy), CP (Mgt), FIE Aust, C Eng (UK), Pr Eng (South Africa), FSAIMM, MIMMM

Mr Liddell is an experienced metallurgical engineer and resource company manager, having worked exclusively in the minerals industry since 1980. His technical expertise includes engineering of plant and equipment, process development, project management, and risk planning. He has particular experience with the development of resource projects for platinum group metals, base metals, gold, diamonds, and industrial minerals. He holds a number of patents in his name. Mr Liddell has extensive experience in the management of resource companies, including the formulation and implementation of corporate strategy, managing stakeholder relationships and in arranging corporate and project finance. He is the former Managing Director of Aquarius Platinum Limited, a leading platinum mining company that successfully developed the Kroondal Platinum Mine in South Africa under his direction. During the past three years Mr Liddell has also served as a director of the following listed companies:

• Platmin Limited, *appointed 29 March 2006;
• Mineral Securities Limited, *appointed 18 December 2003;
• CopperCo Limited, * appointed 8 March 2002;
• Herencia Resources Plc, appointed 21 November 2005, resigned 14 June 2006;
• Australian Mines Limited, resigned 13 October 2005;
• Sally Malay Mining Limited, resigned 8 July 2005; and
• Tianshan Goldfields Limited, *appointed 19 September 2003

* denotes current directorship

Mr Liddell is Executive Chairman of Mineral Securities Limited, Non Executive Chairman of CopperCo Limited, Deputy Executive Chairman of Platmin Limited and Chairman of Tianshan Goldfields Limited.

Richard Wolanski (Executive Director) Appointed 21 May 2007

B.Com, ACA

Mr Wolanski has extensive professional experience in both Australia and international finance industries. He has provided corporate, strategic and financial advisory assistance to public companies in Australia, Singapore and the United Kingdom.

Mr Wolanski is a Chartered Accountant and has a Bachelor of Commerce from the University of Western Australia.

Mark Bolton (Director)

Resigned 21 May 2007

Hon John Moore (Director)

Resigned 21 May 2007

Company Secretaries

Richard Wolanski (Appointed 21 May 2007) B.Com, ACA

Mark Bolton

Resigned 21 May 2007

Jamie Armes

Resigned 21 May 2007

Interests in the Shares and Options of the Company and Related Bodies Corporate

As at the date of this report, the interests of the directors in the shares of the Company were:

		Ordinary Shares	Options Over Ordinary Shares3
A Barton	Non Executive Chairman	8,649,3871	2,000,0002
K Liddell	Non Executive Director	-	1,000,000
R Wolanski	Executive Director and Company Secretary	350,000	1,000,000

¹ 3,750,000 of the Shares are held by Mr AP Barton and Mrs CH Barton as trustee for the Barton Family Superannuation Fund of which Mr Barton is a director and a beneficiary. 2,695,637 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the Australian Heritage Trust of which Mr Barton is a director and a beneficiary. 1,951,875 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the New Capital Fund of which Mr Barton is a director and a beneficiary. 251,875 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the Strategic Capital Fund of which Mr Barton is a director and a beneficiary.

² 1,000,000 of the options are held by Australian Heritage Group Pty Ltd as trustee for the Australian Heritage Trust of which Mr Barton is a director and a beneficiary.

³ The options were issued on 2 July 2007.

Mineral Securities Limited, a public company listed on the ASX, of which Mr Liddell is Executive Chairman and a shareholder, holds a direct interest in 30,000,000 shares in NiPlats.

Profit /(Loss) Per Share	2007	2006
Basic earnings/(loss) per share (cents)	0.0	35,134.0
Diluted earnings/(loss) per share (cents)	0.0	35,134.0

Corporate Structure

NiPlats is a company limited by shares that is incorporated and domiciled in Australia. NiPlats has a fully owned subsidiary Speewah Mining Pty Ltd. The Group has prepared a consolidated financial report incorporating the entity that it controlled during the financial year, which is outlined in Note 17 of the consolidated financial statements.

Nature of Operations and Principal Activities

The principal activities of the entities within the Group during the year were focusing on exploration and development of the Tenements in the East Kimberley region of Western Australia.

Operating Review

The consolidated entity's operations are discussed in detail in the Operations Report.

Review of Consolidated financial Condition

The consolidated entity recorded an operating loss after income tax of \$3,600 (2006: \$17,567 profit).

There was no dividend declared or paid during the year.

Capital Structure

As at the date of this report the Company had 68,000,000 fully paid ordinary shares and 5,000,000 options over ordinary shares on issue. Details of the terms of the options are outlined in Note 15 of the consolidated financial statements.

Cash From Operations

The net cash outflow from operations of \$272 is less than the cash outflow in the previous year of \$14,683. The low level of cash activity reflects that operations were primarily funded by Mineral Securities Limited which was the sole shareholder of the parent entity until a seed capital raising completed on 26 April 2007.

The net cash outflow from operations was funded by the seed capital raisings. The cash balance at year end was \$2,320,654.

Significant Changes in the State of Affairs

Contributed Equity

During the year the following significant changes were made to the Company's contributed equity:

• On 24 April 2007, the Company converted debt of Mineral Securities Holdings Pty Ltd of \$668,186 into 29,999,950 ordinary shares. At the time of the conversion Mineral Securities Limited was the sole shareholder of the Company. Mineral Securities Holdings Pty Ltd is a wholly owned subsidiary of Mineral Securities Limited (ASX: MXX);
• On 26 April 2007, the Company issued 15,000,000 fully paid shares as part of a seed capital raising of \$1,500,000 to fund ongoing exploration of the Company's projects; and
• On 24 May 2007, the Company issued 8,000,000 fully paid shares as part of a seed capital raising of \$1,000,000 to further fund ongoing exploration of the Company's projects.

Significant Events After the Balance Date

After the balance date the following significant changes were made to the Company's equity:

• On 2 July 2007, 5,000,000 Class A Options were issued to directors and consultants of the Company;
• On 9 August 2007, the Company issued 15,000,000 fully paid shares as part of the initial public offering of \$3,000,000 to seek admission to the official list of the Australian Securities Exchange; and
• On 21 September 2007, the Company commenced trading on the Australian Securities Exchange.

Likely Developments and Expected Results

The directors foresee that the 2007/2008 financial year will build on the positive results achieved during 2006/2007 and continue the focus on:

• exploration in line with the objectives stated in the prospectus dated 3 July 2007;
• enhancing the value of the Company's tenements in the East Kimberley project area with a view to adding further mineral resources to the existing fluorite resource inventory; and
• identifying and pursuing new investment opportunities.

Environmental Regulation and Performance

The consolidated entity's environmental obligations are regulated under both State and Federal law. All environmental performance obligations are monitored by the Board and subjected from time to time to Government agency audits and site inspections. The consolidated entity has a policy of at least complying with, but in most cases exceeding, it's statutory environmental performance obligations. No environmental breaches have occurred or have been notified by any Government agencies during the year ended 30 June 2007.

Shares Under Option

As at the date of this report, there were 5,000,000 unissued ordinary shares under option.

Date Options Issued	Expiry Date	Issue Price of Shares	Number Under Option
2-July -2007	30-Jun-2012	\$0.20	5,000,000

Shares Issued on Exercise of Options

During or since the end of the financial year, no options to acquire fully paid ordinary shares in NiPlats were exercised. 5,000,000 options were issued on 2 July 2007, with an exercise price of \$0.20. The options vested on 2 July 2007 prior to the lodgement of the prospectus for the initial public offer that led to the listing of the Company on ASX. Refer to Note 15 of the consolidated financial statements for further details of the options outstanding.

Option holders do not have any right, by virtue of the option, to participate in any issue of the Company or any related body corporate.

Indemnification and Insurance of Directors and Officers

The Company has entered into Director and Officer Protection Deeds ("D&O Deed") with each Director and the Company Secretary ("Officers"). Under the D&O Deed, the Company indemnifies the Officers to the maximum extent permitted by law and the Constitution against legal proceedings, damage, loss, liability, cost, charge, expense, outgoing or payment (including legal expenses on a solicitor/client basis) suffered, paid or incurred by the officers in connection with the Officers being an officer of the Company, the employment of the officer with the Company or a breach by the Company of its obligations under the D&O Deed.

Also pursuant to the D&O Deed, the Company must insure the Officers against liability and provide access to all board papers relevant to defending any claim brought against the Officers in their capacity as officers of the Company. The Company has paid insurance premiums of \$7,950 (2006: \$nil) in respect of liability for any current and future directors, company secretary, executives and employees of the Company. This amount is payable in total and no specific amount is included in the directors' remuneration.

Rounding

The amounts contained in this report and in the financial report have been rounded to the nearest dollar.

Remuneration Report (Audited)

This report outlines the remuneration arrangements in place for directors and executives of the Company, in connection with the management of the affairs of the entity and its subsidiaries, during the year to 30 June 2007.

Remuneration Policy

The Company's remuneration policies are reflected in the Charter of the Remuneration Committee. It is the Company's objective to provide maximum stakeholder benefit from the retention of high quality Board and executive team by remunerating directors and key executives fairly and appropriately with reference to relevant employment market conditions.

The Company's remuneration policy is to establish competitive remuneration (including performance incentives) consistent with long term development and success, to ensure remuneration is fair and reasonable (taking into account all relevant factors, and within appropriate controls or limits) that performance and remuneration are appropriately linked, that all remuneration packages are reviewed annually or on an ongoing basis in accordance with management's remuneration packages, and that retirement benefits or termination payments (other than notice periods) will not be provided or agreed other than in exceptional circumstances.

It is the Company's objective that the remuneration policy aligns with achievement of strategic objectives and creation of long term value for shareholders. The Company does not use specific performance hurdles in determining remuneration or short term rewards.

Remuneration Committee

The Remuneration Committee of the Board of Directors of NiPlats is responsible for determining and reviewing compensation arrangements for the directors and executives. The Remuneration Committee assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team. Such officers are given the opportunity to receive their base emolument in a variety of forms including cash and fringe benefits such as motor vehicles and expense payment plans. It is intended that the manner of payment chosen will be optimal for the recipient without creating undue cost for the Company.

Non Executive Director Remuneration

Fixed Remuneration

The aggregate remuneration to non executive directors will not exceed the maximum approved amount of \$150,000. The board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable by shareholders.

The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors is reviewed annually. The board considers fees paid to non executive directors of comparable companies when undertaking the annual review as well as additional time commitment of directors who serve on one or more sub committees and assistance to the Company with new investment opportunities.

Non executive directors are encouraged by the board to hold shares in the Company; these are to be purchased by the director on market. It is considered good corporate governance for directors to have a stake in the company on whose board he or she sits.

The remuneration of non executive directors for the year ended 30 June 2007 is detailed under the remuneration section of this report.

Variable Remuneration – Short Term Incentives

Non executive directors do not receive performance based bonuses. Non executive directors do not receive additional remuneration for their membership of subsidiary boards or committees.

Variable Remuneration – Long Term Incentives

Mr Anthony Barton, Non Executive Chairman, is entitled to 1,000,000 options that are subject to the following conditions:

• 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012.

Australian Heritage Group Pty Ltd, a company of which Mr Anthony Barton is a director and beneficiary, is entitled to 1,000,000 options that are subject to the following conditions:

• 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012.

Mr Keith Liddell, Non Executive Director, is entitled to 1,000,000 options that are subject to the following conditions:

• 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012.

The vesting requirement, which has been fulfilled, linked to these options was the lodgement of the prospectus dated 3 July 2007. There was no other performance conditions related to the grant or vesting of the options. The combination of higher exercise price and long dated options were designed as a longer term incentive. The issue of the options was contingent upon lodgement of the prospectus dated 3 July 2007.

Other than the above, the Company has no contractual obligation to provide long term incentives to non executive directors.

Executive Directors Remuneration

The company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the company and so as to:

• reward executives for company and individual performance;
• align the interests of executives with those of shareholders;
• link reward with the strategic goals and performance of the company; and
• ensure total remuneration is competitive by market standards.

Executive remuneration comprises of:

• base pay and benefits; and
• long term incentives through equity based compensation.

Fixed Remuneration

Base pay and benefits

Base pay is structured as a total employment cost package that may be delivered as combination of cash and salary sacrifice superannuation at the executive's discretion.

Executives are offered a competitive base pay. Reference is made to industry benchmarks to ensure that the base pay is set to reflect the market for a comparable role. Base pay is reviewed annually, or upon promotion, to ensure the executive's pay is competitive with comparable positions of responsibility. There is no guaranteed base pay increases for any executive contract.

Variable Remuneration – Long Term Incentives

Mr Richard Wolanski, Executive Director, is entitled to 1,000,000 options that are subject to the following conditions:

• 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012.

The vesting requirement, which has been fulfilled, linked to these options was the lodgement of the prospectus dated 3 July 2007. The combination of higher exercise price and long dated options were designed as an incentive to perform for the longer term by linking increase in option valuation to increases in shareholder wealth. There were no other performance conditions related to the grant or vesting of the options.

Other than the above, the Company has no contractual obligation to provide long term incentives to executives.

Employment Contract – Richard Wolanski (Executive Director & Company Secretary)

On 21 May 2007 the Company entered into an employment agreement with Mr Richard Wolanski.

Mr Wolanski was appointed as the Executive Director of the Company from 21 May 2007.

Mr Wolanski will receive an annual salary of \$54,500 (inclusive of superannuation) for his services as an Executive Director. Mr Wolanski will be paid at a rate of \$100 per hour (exclusive of GST) for any services provided to the Company which are outside of the scope of his duties as Executive Director.

The employment agreement also provides for the issue of options in the Company to Mr Wolanski. Mr Wolanski has been granted 1,000,000 options for no subscription price which are exercisable at \$0.20 and have an expiry date of 30 June 2012. The vesting requirement, which has been fulfilled, linked to these options was the lodgement of the prospectus dated 3 July 2007. The issue of the options was contingent upon lodgement of the prospectus dated 3 July 2007. Mr Wolanski's salary is to be reviewed every 12 months.

The agreement may be terminated with four weeks notice in writing by either Mr Wolanski or the Company. The Company may also terminate Mr Wolanski's employment for any breach of duty in relation to the Company or if Mr Wolanski commits any act of dishonesty or fraud. If Mr Wolanski's employment is terminated, unless invited by the board of directors, he must resign as a Director of the Company. Mr Wolanski's employment is otherwise on commercial terms and conditions.

Details of Remuneration

Details of the remuneration of each director of NiPlats and each of the executives of the Company and the consolidated entity who received the highest remuneration for the year ended 30 June 2007 are set out in the following tables.

	Short term	Post Employment Share based payments
Directors of NiPlats Australia Limited 30 June 2007	Salary & Fees \$	Superannuation \$	Options \$	Shares \$	Total \$
A Barton (Appointed 21 May 2007) Non Executive Chairman	3,370	303	62,432	-	66,105
K S Liddell (Appointed 28 May 2002) Non Executive Director	3,370	303	62,432	-	66,105
R Wolanski (Appointed 21 May 2007) Executive Director & Company Secretary	20,366	506	62,432	-	83,304
Total1	27,106	1,112	187,296	-	215,514

Premium for Director's liability insurance is not included in remuneration table.

Other than disclosed in the table no director or executive received any compensation in the financial year ended 30 June 2007.

Directors and Executives of NiPlats Australia Limited – 2006

No director or executive received any compensation in the financial year ended 30 June 2006.

Share Based Compensation

During the year there were no equity based payments made to the directors and executives of the Company.

Subsequent to the end of the financial year, on 2 July 2007, the following options were issued to directors of the Company:

• Mr Anthony Barton, Non Executive Chairman is entitled to 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012;
• Australian Heritage Group Pty Ltd atf the Australian Heritage Trust, a company of which Mr Barton is a Director and beneficiary is entitled to 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012;
• Mr Keith Liddell, Non Executive Director is entitled to 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012; and
• Mr Richard Wolanski, Executive Director, is entitled to 1,000,000 unlisted options exercisable at \$0.20 on or before 30 June 2012.

The long dated options were designed as an incentive to perform for the longer term. The vesting requirement, which has been fulfilled, linked to these options was the lodgement of the prospectus dated 3 July 2007.

An expense was recogised for these options in the year to 30 June 2007 as agreement to grant the options, conditional on the issue of the prospectus, was reached on 21 May 2007.

			Fair Value			First
30 June 2007	Granted No.	Grant Date	Grant Date (\$)	Exercise Price (\$)	Expiry Date	Exercise Date	Last Exercise Date	Vested No.
A Barton1	2,000,000	21 May-07	0.067	\$0.20	30-Jun-12	2-Jul-07	30-Jun-12	nil
K Liddell	1,000,000	21 May-07	0.067	\$0.20	30-Jun-12	2-Jul-07	30-Jun-12	nil
R Wolanski	1,000,000	21 May-07	0.067	\$0.20	30-Jun-12	2-Jul-07	30-Jun-12	nil
Total	4,000,000							nil

As at 30 June 2007, there were 4,000,000 unissued ordinary shares under option granted to directors.

1,000,000 of these options are owned by Australian Heritage Group Pty Ltd the Australian Heritage Trust, a company of which Mr Barton is a Director and beneficiary.

There were no alterations to options terms since grant date and no options were forfeited. Further details of the options are contained in Note 15.

Other than as detailed above, no other Directors or executives were granted, issued or had options outstanding as at 30 June 2007.

No Directors or executives were issued options or had options outstanding in the financial year ended 30 June 2006.

Directors' Meetings

The number of meetings of directors (including meetings of committees of directors) held during the year and the number of meetings attended by each director was as follows:

	Directors Meetings	Audit2	Nomination2	Remuneration2
Number of Meetings Held	2	1	1	1
Number of Meetings Attended
Anthony Barton	2	1	1	1
Keith Liddell	2	1	1	1
Richard Wolanski	2	1	1	1
Hon John Moore1	-	-	-	-
Mark Bolton1	-	-	-	-

1. The Hon John Moore and Mr Mark Bolton were not Directors at the date of the meetings.
1. Committee is made up of the full Board. Reference to meeting refers to meeting conducted specifically to deal with the particular business of that Committee.

Committee Membership

The role of the Audit, Remuneration and Nomination Committees is carried out by the full Board in accordance with the appropriate charters. The Board considers that at this stage, no efficiencies or other benefits would be gained by establishing separate committees.

Corporate Governance

In recognising the need for the highest standards of corporate behaviour and accountability, the directors of NiPlats support and have adhered to the principles of corporate governance. The Company's corporate governance statement is contained in the following section of this annual report.

Auditor Independence

Section 370C of the Corporation Act 2001 requires our auditors, Ernst & Young, to provide the directors of the Company with an Independence Declaration in relation to the audit of the consolidated financial report. This Independence Declaration is disclosed on page 21 of this report and forms part of this directors' report for the year ended 30 June 2007.

Non Audit Services

The Company's auditors, Ernst & Young, provided non audit services in the form of an Investigating Accountants Report included in the Prospectus of the Company dated 3 July 2007 during the financial year for which they received a fee of \$20,000. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and scope of the non-audit service provided means that auditor independence was not compromised.

Tax Consolidation

The Group was a member of the Mineral Securities Limited tax consolidated group up until 26 April 2007. Tax losses for the period 1 July 2006 and 26 April 2007 were assumed by Mineral Securities Limited. Subsequently, the temporary difference in respect of deferred exploration and evaluation expenditure has been adjusted as previously this was calculated based on accounting carrying values in Mineral Securities Limited. On exiting tax consolidation this was re-valued using accounting carrying values in NiPlats. It is the intention of the Company and its' subsidiary to form a tax consolidated group.

Signed in accordance with a resolution of the directors.

Anthony Barton Chairman 26 October 2007

1. INTRODUCTION

1.1. Corporate Governance

The Australian Stock Exchange ("ASX") Listing Rules ("Listing Rules") require a listed entity to include in its annual report a statement on corporate governance practices disclosing the extent to which it has followed the "best practice" corporate governance recommendations set by the ASX Corporate Governance Council. If the entity has not followed any of the recommendations, it must identify them and give reasons why. It must state the period during which the recommendations were followed. For this purpose, Listing Rules Guidance Note 9A sets out the 10 essential corporate governance principles and the applicable "best practice recommendations".

1.2. Compliance with ASX Listing Rule 4.10.3

Listing Rule 4.10.3 and Guidance Note 9A reflect ASX policy that it is "appropriate to focus on disclosure of corporate governance practices rather than prescribe adoption of a particular practice". Therefore, an entity's obligation is to highlight areas of departure from the recommendations: the "if not, why not?" approach.

1.3. The Company's Approach

The Board and senior management of NiPlats Australia Limited ("the Company") are committed to acting responsibly, ethically and with high standards of integrity as the Company works to create shareholder value. To achieve this goal, the Board has developed and adopted corporate governance practices and policies that have been implemented throughout management and governance. This Corporate Governance Statement summarises these practices as they have been adopted by the Company.

1.4. Adoption by the Board

The Board of the Company has reviewed and considered this Corporate Governance Statement and has adopted it. A Board resolution to this effect has been passed.

1.5. Summary of Compliance

The Company has complied with 22 of the 28 "best practice recommendations". Non compliance with six recommendations relates to the Board considering it appropriate to not separately constitute Audit, Remuneration and Nomination Committees and there not being a majority of independent Directors on the Board. The full Board deals with matters that would be dealt with by Audit, Remuneration and Nomination Committees and it considers the make up of the Board and its Committee's are appropriate given the Company's size and operations and the current directors' skills and experience. The Company's codes and policies are publicly available on the website.

2. ESSENTIAL PRINCIPLES OF GOOD CORPORATE GOVERNANCE

2.1. Principle 1: Lay Solid Foundations for Management and Oversight

"Recognise and publish the respective roles and responsibilities of the Board and management."

Recommendation 1.1: Formalise and disclose the functions reserved to the Board and those delegated to management.

The Board's primary role is the optimisation of Company performance and protection and enhancement of shareholder value. Its functions and responsibilities includes setting strategic and policy direction, monitoring performance against strategy, identifying principal risks and opportunities and ensuring risk management systems are established and reviewed, approving and monitoring financial reports, capital management, compliance, significant business transactions and investments, appointing senior management and monitoring performance, remuneration, development and succession, adopting procedures to ensure the business of the Company is consistently with Company values, continuous disclosure compliance, ensuring effective shareholder communication, overseeing the Company's commitment to sustainable development and the environment, ensuring the Board remains appropriately skilled, reviewing and approving corporate governance systems and enhancing and protecting the Company's reputation.

The Board is also governed by the Company's Constitution, and on appointment each director is provided with a Director's Information Kit, which forms part of the terms of their appointment and contains guides to directors duties and responsibilities, the role of the Board and committees, the Constitution and the Company's policies.

The Board has delegated the authority and responsibility to manage and administer the Company's general operations to its managing director, and its financial operations to its chief financial officer. The Company has in place formal letters of engagement for its senior management, setting out the responsibilities specifically delegated to them.

2.2. Principle 2: Structure the Board to Add Value

"Have a Board of an effective composition size and commitment to adequately discharge its responsibilities and duties."

Recommendation 2.1: A majority of the Board should be independent directors.

The Board comprises of Mr Anthony Barton, Mr Keith Liddell and Mr Richard Wolanski as directors. Details of the directors are set out in the Director's report. At present, Mr Barton and Mr Liddell are not considered to be independent directors in terms of the ASX Corporate Governance Council's definition of independence. Mr Wolanski is not considered to be independent as he is engaged under a service agreement or employment contract in an executive capacity by the Company. The Board has adopted procedures intended to ensure independent decision making occurs, including the requirement for directors to absent themselves from discussions in which they have a conflict of interest and the functioning of the Remuneration and Audit Committees.

Recommendation 2.2: The chairperson should be an independent director.

The chairperson, Mr Anthony Barton, is not independent, as set out above. The existing structure is considered appropriate given the small scale of the Company's enterprise and the associated economic restrictions this places on the Company. The existing structure is aimed at maximising the financial position of the Company by keeping its operating costs to a minimum.

Recommendation 2.3: The roles of the chairperson and chief executive officer should not be exercised by the same individual.

The role of chairperson is filled by Mr Anthony Barton, and the role of Executive Director is filled by Mr Richard Wolanski.

Recommendation 2.4: The Board should establish a Nomination Committee.

The role of the nomination committee is carried out by the full Board. The Board considers that given its size and that two members of the Board hold non-executive positions in the Company, no efficiencies or other benefits would be gained by establishing a separate nomination committee. The Board assesses the experience, knowledge and expertise of potential directors before any appointment is made.

Recommendation 2.5: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 2.

The Company's non executive directors have the right, at the Company's cost, to seek independent professional advice in carrying out of their duties as directors. The Company has not included on its website information on procedures for the selection and appointment of new directors as these procedures are not formalised.

2.3. Principle 3: Promote Ethical and Responsible Decision Making

"Actively promote ethical and responsible decision making."

Recommendation 3.1:	Establish a code of conduct to guide directors, the chief executive office (or equivalent),
	the chief financial officer (or equivalent) and any other key executives as to:
	3.1.1 – the practices necessary to maintain confidence in the company's integrity.
	3.1.2 – the responsibility and accountability of individuals for reporting and investigating
	reports of unethical practices.

The Company has adopted a Code of Conduct setting the standards expected of officers, employees and contractors and demonstrate the Company's commitment to conducting business in an ethical and accountable manner. In essence, officers, employees and contractors are expected to act in good faith with the utmost honesty, integrity, objectivity and fairness, not to act improperly, misleadingly or deceptively or engage in illegal activity, understand and comply with applicable laws and Company policies, avoid conflicts of interest, be professional, responsible and accountable, respect an individual's rights and deal responsibly with the community.

The Board monitors implementation of the Code. Breaches are reported by employees or contractors to a supervisor and by management or directors to the Board or the chairperson. In addition, the Director's Information Kit provided to each director contains a guide to the duties and responsibilities of directors.

Recommendation 3.2: Disclose the policy concerning trading in company securities by directors, officers and employees.

The Company has in place a trading policy, "A Guide to Dealing in Securities", a copy of which is included in the Director's Information Kit provided to each director. A copy of this policy is also provided to all officers and employees of the Company.

The trading policy imposes certain restrictions to prevent breaches of the insider trading provisions of the Corporations Act 2001 (Cth). The key aspects of it are that:

• trading in Company securities is only permitted on specific approval from the Company's chairman to deal within a specified time period and trading range;
• no trading is permitted where a director, officer or employee is in possession of information which if generally available, a reasonable person would expect to have a material effect on the price or value of the securities, or for a period of two days after a public Company announcement relating to that information; and
• active dealing in the Company's securities to derive income is not permitted.

The trading policy was adopted before the current year and is reviewed annually. The insider trading prohibition is also notified to officers and employees at least annually.

Recommendation 3.3: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 3.

A summary of both the Company's Code of Conduct and its trading policy are included on the Company's website

2.4. Principle 4: Safeguard Integrity in Financial Reporting

"Have a structure to independently verify and safeguard the integrity of the company's financial reporting."

Recommendation 4.1: Require the chief executive officer (or equivalent) and the chief financial officer (or equivalent) to state in writing to the Board that the company's financial reports present a true and fair view, in all material respects, of the Company's financial condition and operational results and are in accordance with relevant accounting standards.

The Company's executive director and chief financial officer provide this statement.

Recommendation 4.2: The Board should establish an audit committee.

The role of audit committee is carried out by the full Board. The Board considers that given its size, no efficiencies or other benefits would be gained by establishing a separate audit committee.

Recommendation 4.3: Structure the audit committee so that it consists of:

• only non executive directors;
• a majority of independent directors;
• an independent chairperson, who is not chairperson of the Board; and
• at least three members.

The role of audit committee is carried out by the full Board. The Board considers that given its size, no efficiencies or other benefits would be gained by establishing a separate audit committee.

Recommendation 4.4: The audit committee should have a formal charter.

The Board has adopted an Audit Committee Charter which sets out the duties of the Committee, which include to be the focal point of the communication between the Board, management and the external auditor, recommend engagement and monitor performance of the external auditor, review external audit reports and ensure prompt remedial action, review the effectiveness of management information and internal control, all areas of significant financial risk and risk management, significant transactions not a normal part of the Company's business, financial information and ASX reporting statements, monitor internal controls and compliance and review the disclosure policy annually.

Recommendation 4.5: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 4.

The Audit Committee's Charter is included on the Company's website. The Company has also included on its website information on procedures for the selection and appointment of the external auditor, or rotation of external engagement partners. The Board reviews these matters on an ongoing basis and implements changes when it considers changes are required.

2.5. Principle 5: Make Timely and Balanced Disclosure

"Promote timely and balanced disclosure of all material matters concerning the Company."

Recommendation 5.1: Establish written policies and procedures designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior management level for that compliance.

The Company has in place a continuous disclosure policy, "A Guide to Disclosure", a copy of which is included in the Director's Information Kit provided to each director upon appointment, and which forms part of the terms of their appointment. A copy of the policy is also provided to all Company officers, employees and agents.

In addition, a list of recent announcements is presented to each Board meeting for discussion, minuting and action, if required. The continuous disclosure policy aims:

• to assess information and coordinate the timely disclosure to the ASX;
• provide an audit trail of decisions regarding disclosure; and
• ensure employees, consultants and agents of the Company understand the obligation to bring relevant information to the attention of the chairperson.

The Company's continuous disclosure policy was adopted before the current year and is reviewed at least annually. The Company's continuous disclosure obligations are brought to the attention of all officers, employees and agents at least once a year.

Recommendation 5.2: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 5.

A summary of the continuous disclosure policy is included on the Company's website.

2.6. Principle 6: Respect the Rights of Shareholders

"Respect the rights of shareholders and facilitate the effective exercise of those rights."

Recommendation 6.1: Design and disclose a communications strategy to promote effective communication with shareholders and encourage effective participation at general meetings.

The Company has in place a communications policy, a copy of which is included in the Director's Information Kit provided to each director upon appointment. The policy reflects the Company's commitment to dealing fairly, transparently and promptly with shareholders, encouraging and facilitating participation at meetings and dealing promptly with enquiries. The key aspects of the policy are:

• diligent compliance with the Company's disclosure and trading policies;
• prompt, transparent compliance with statutory reporting and meeting obligations, including detailed and full disclosure in relation thereto; and
• effective use of the Company's website, electronic communication and its share registry to keep shareholders up to date and to deal with enquiries.

The communications policy was adopted in May 2007 and is reviewed annually.

Recommendation 6.2: Request the external auditor to attend the annual general meeting and be available to answer shareholder questions about the conduct of the audit and the preparation and content of the auditor's report.

The Company requests that its external auditor attends its annual general meeting.

2.7. Principle 7: Recognise and Manage Risk

"Establish a sound system of risk oversight and management and internal control."

Recommendation 7.1: The Board or appropriate committee should establish policies on risk oversight and management.

The Company has in place a risk oversight and management policy, a copy of which is included in the Director's Information Kit provided to directors upon appointment and which sets out systems for risk oversight, management and internal control.

This risk management policy was adopted in May 2007. The key aspects of it are:

• the Board oversees the establishment and implementation of risk management;
• the Audit Committee is delegated the function and responsibility to establish, implement and maintain risk management systems and frameworks; and
• the Company's senior management are delegated the tasks of management of operational risk and the implementation of risk management strategies.

The Board approves risk management systems and reviews them and their implementation annually. The Company's risk profile, assessed and determined on the basis of the Company's businesses in mineral exploration, is reviewed annually. The Board regularly considers risk management at its meetings.

The Company's risk management systems and control frameworks include the Board's ongoing monitoring of management and operational performance, a comprehensive system of budgeting, forecasting and reporting to the Board, regular presentations to the Board by management on the management of risk, approval procedures for significant capital expenditure above threshold levels, the functioning of the Audit Committee, comprehensive written policies on specific activities and corporate governance, regular communication between directors on compliance and risk and consultation and review between the Board and external accountants.

Recommendation 7.2:	The chief executive officer (or equivalent) and the chief financial officer (or equivalent) to
	state to the Board in writing that:
	7.2.1 – the statement given in accordance with best practice recommendation 4.1 (the
	integrity of financial statements) is founded on a sound system of risk management and
	internal compliance and control which implements the policies adopted by the Board.
	7.2.2 – the company's risk management and internal compliance and control system is
	operating efficiently and effectively in all material respects.

The Company's executive director and chief financial officer provide this statement.

Recommendation 7.3: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 7.

A description of the Company's risk oversight and management policy and internal compliance and control system is included on the Company's website.

2.8. Principle 8: Encourage Enhanced Performance

"Fairly review and actively encourage enhanced Board and management effectiveness."

Recommendation 8.1: Disclose the process for performance evaluation of the Board, its committees and individual directors, and key executives.

The Company has adopted self evaluation processes to measure Board performance. The performance of all directors is assessed through analysis and review by, and discussion with, the Chairman on issues relating to individual directors attendance at and involvement in Board meetings, interaction with management, performance of allocated tasks and any other matters identified by the Chairman or other directors. Evaluation of Committees is conducted on a similar basis. Due to the Board's assessment of the effectiveness of these processes, the Board has not formalised qualitative performance indicators to measure directors performance. Evaluation of key executives is carried out by the Chairman by ongoing monitoring of management and Company performance and the functioning of the Remuneration Committee.

The Company aims to facilitate director performance by provision of the Director's Information Kit to directors upon their appointment. New directors are also provided with detailed information relating to Company operations and procedures.

2.9. Principle 9: Remunerate Fairly and Responsibly

"Ensure that the level and composition of remuneration is sufficient and reasonable and that its relationship to corporate and individual performance is defined."

Recommendation 9.1: Provide disclosure in relation to the Company's remuneration policies to enable investors to understand (i) the costs and benefits of those policies and (ii) the link between remuneration paid to directors and key executives and corporate performance.

The Company's remuneration policies are reflected in the Charter of the Remuneration Committee. These policies are to establish competitive remuneration, including performance incentives, consistent with long term development and success, to ensure remuneration is fair and reasonable, taking into account all relevant factors, and within appropriate controls or limits, ensure performance and remuneration are appropriately linked, that all remuneration packages are reviewed annually or on an ongoing basis in accordance with management's remuneration packages and that retirement benefits or termination payments (other than notice periods) will not be provided or agreed other than in exceptional circumstances.

Recommendation 9.2: The Board should establish a Remuneration Committee.

A Remuneration Committee was established by the Board during the current year. The role of the Remuneration Committee is carried out by the full Board. The Board considers that given its size and that two members of the Board hold non-executive positions in the Company, no efficiencies or other benefits would be gained by establishing a separate audit committee.

The Committee is required to be chaired by a non executive director. The Committee's duties include supervising employment and human resources, recommending remuneration for executive directors and senior employees and for non executive director remuneration within approved limits, assisting executive directors develop remuneration arrangements and reviewing executive succession and development.

Recommendation 9.3: Clearly distinguish the structure of non executive directors remuneration from that of executives.

The aggregate remuneration to non executive directors will not exceed the maximum amount approved by the Company's shareholders in annual general meeting.

Recommendation 9.4: Ensure that payment of equity based executive remuneration is made in accordance with thresholds set in plans approved by shareholders.

The payment of equity based executive remuneration has been advised to shareholders prior to the issue of shares as part of the initial public offer.

Recommendation 9.5: Provide the information indicated in the ASX Corporate Governance Council's Guide to Reporting on Principle 9.

The Remuneration Committee's Charter is included on the Company's website. The names and qualifications of the members of the Remuneration Committee, and their attendance at Committee meetings, are set out in the Company's annual report.

2.10. Principle 10: Recognise the Legitimate Interests of Stakeholders

"Recognise legal and other obligations to all legitimate stakeholders."

Recommendation 10.1: Establish and disclose a code of conduct to guide compliance with legal and other obligations to legitimate stakeholders.

As set out in relation to best practice recommendation 3.1, the Company has adopted a Code of Conduct setting standards expected of officers, employees and contractors.

Audit o r 's In d e p e n d e n c e De c l a r a ti o n

Auditor's Independence Declaration to the Directors of NiPlats Australia Limited

In relation to our audit of the financial report of NiPlats Australia Limited for the year ended 30 June 2007, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Ernst & Young

G H Meyerowitz Partner Perth 26 October 2007

Liability limited by a scheme approved under Professional Standards Legislation.

D ir e ct o r s' De c l a r a ti o n

1. In the opinion of the directors:
(a) the consolidated financial statements, notes and the additional disclosures included in the directors' report designated as audited, of the Group are in accordance with the Corporations Act 2001 including:
- (i) giving a true and fair view of the Group's consolidated financial position as at 30 June 2007 and of their performance for the year then ended; and
- (ii) complying with Accounting Standards and Corporations Regulations 2001.
(b) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.
1. This declaration has been made after receiving the declarations required to be made to the directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2007.

The declaration is signed in accordance with a resolution of the Board of Directors.

Anthony Barton Chairman

26 October 2007

C o n s o l id a t e d I n c o m e St a t e m e n t

FOR THE YEAR ENDED 30 JUNE 2007

		Consolidated		Parent
		2007	2006	2007	2006
	Notes	\$	\$	\$	\$

Revenue	4	30,238	2,551	26,895	-
Other income	4	-	28,807	-	-
Employee benefit expenses
- Share based payment		(312,160)	-	(312,160)	-
- Wages & Salary		(12,356)	(2,500)	(12,356)	-
- Superannuation		(1,112)	-	(1,112)	-
Consultants		(24,175)	-	(14,750)	-
Compliance costs		(18,777)	(212)	(18,565)	-
Other expenses		(4,728)	(3,550)	(2,371)	-
Profit/(Loss) before income tax expense		(343,070)	25,096	(334,419)	-
Income tax benefit/(expense)	5	339,470	(7,529)	6,658	-
Net profit/(loss) for the period		(3,600)	17,567	(327,761)	-

Basic earnings per share (cents per share)	7	0.0	35,314.0
Diluted earnings per share (cents per share)	7	0.0	35,314.0

C o n s o l id a t e d B a l a n c e S h e e t

AS AT 30 JUNE 2007

			Consolidated	Parent
		2007	2006	2007	2006
	Notes	\$	\$	\$	\$
Assets
Current Assets
Cash and cash equivalents	8	2,320,654	27,526	2,226,105	10
Trade and other receivables	9	82,441	13,422	62,679	-
Total Current Assets		2,403,095	40,948	2,288,784	10

Non Current Assets
Deferred exploration expenditure	12	1,646,373	1,085,746	-	-
Other financial assets	10	42,500	40,000	-	-
Loan to subsidiary	10	-	-	554,020	5,167
Investment in subsidiary	17	-	-	1	1
Deferred tax asset	5	-	-	372,568	-
Total Non Current Assets		1,688,873	1,125,746	926,589	5,168
Total Assets		4,091,968	1,166,694	3,215,373	5,178

Liabilities
Current Liabilities
Trade and other payables	13	306,355	487,436	162,201	5,166
Total Current Liabilities		306,355	487,436	162,201	5,166
Non Current Liabilities
Deferred tax liability	5	119,796	392,313	-	1,550
Total Non Current Liabilities		119,796	392,313	-	1,550
Total Liabilities		426,151	879,749	162,201	6,716

Net Assets/(Liabilities)		3,665,817	286,945	3,053,172	(1,538)
Equity
Issued capital	14	3,070,321	10	3,070,321	10
Reserves	14	312,160	-	312,160	-
Retained profits/(accumulated losses)		283,336	286,935	(329,309)	(1,548)
Total Equity/(Deficits)		3,665,817	286,945	3,053,172	(1,538)

C o n s o l id a t e d C a s h F l o w St a t e m e n t

FOR THE YEAR ENDED 30 JUNE 2007

		Consolidated		Parent
		2007	2006	2007	2006
	Notes	\$	\$	\$	\$
Cash Flows from Operating Activities
Interest received		12,021	2,551	8,678	-
Payments to suppliers and employees		(12,293)	(17,234)	2,268	-
Net cash provided by/(used in) operating activities	8	(272)	(14,683)	10,946	-

Cash Flows from Investing Activities
Expenditure on mining interests		(437,947)	(203,399)	-	-
Purchase of financial assets		-	-	-	-
Net cash provided by/(used in) investing activities		(437,947)	(203,399)	-	-

Cash Flows form Financing Activities
Proceeds from issue of shares		2,500,000	-	2,500,000	-
Payment of share issue costs		(72,062)	-	(72,062)	-
(Repayment of)/proceeds from borrowings		303,409	243,966	(212,789)	-
Net cash provided by/(used in) financing activities		2,731,347	243,966	2,215,149	-

Net increase/(decrease) in cash and cash equivalents		2,293,128	25,884	2,226,095	-
Cash and cash equivalents at beginning of year		27,526	1,642	10	10
Cash and Cash Equivalents at end of year	8	2,320,654	27,526	2,226,105	10

St a t e m e n t o f C h a n g e s i n E q uity

FOR THE YEAR ENDED 30 JUNE 2007

	Issued Capital	Reserves	Retained Profits / (Accumulated Losses)	Total
Consolidated	\$	\$	\$	\$
At 1 July 2005	10	-	269,368	269,378
Total income and expense for the period recognised directly in equity	-	- -	-	-
Profit for the period	-	-	17,567	17,567
Total income and expense for the period	-	-	17,567	17,567
Balance at 30 June 2006	10	-	286,935	286,945
Total income and expense for the period recognised	-	-	-	-
directly in equity
Profit for the period	-	-	(3,600)	(3,600)
Total income and expense for the period	-	-	(3,600)	(3,600)
Issue of share capital	3,168,186	-	-	3,168,186
Capital raising fees	(97,875)	-	-	(97,875)
Share based payment	-	312,160	-	312,160
Balance at 30 June 2007	3,070,321	312,160	283,335	3,665,817
Parent	\$	\$	\$	\$
At 1 July 2005	10	-	(1,548)	(1,538)
		-
Total income and expense for the period recognised	-	-	-	-
directly in equity
Profit for the period	-	-	-	-
Total income and expense for the period	-	-	-	-
Balance at 30 June 2006	10	-	(1,548)	(1,538)
Total income and expense for the period recognised directly in equity	-	-	-	-
Loss for the period	-	-	(327,761)	(327,761)
Total income and expense for the period	-	-	(327,761)	(327,761)
Issue of share capital	3,168,186	-	-	3,168,186
Capital raising fees	(97,875)	-	-	(97,875)
Share based payment	-	312,160	-	312,160
Balance at 30 June 2007	3,070,321	312,160	(329,309)	3,053,172

CORPORATE INFORMATION

NiPlats Australia Limited ("NiPlats" or "the Company") is a company limited by shares incorporated and domiciled in Australia, whose shares are publicly traded on the Australian Securities Exchange.

These consolidated financial statements are presented in Australian dollars. The consolidated financial report was authorised for issue by the directors on 26 October 2007 in accordance with a resolution of the directors. The nature of the operations and principal activities of the Group are described in the Directors' Report.

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

The consolidated financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and applicable accounting standards.

The consolidated financial report has been prepared on a historical cost basis. The consolidated financial report is presented in Australian dollars.

(b) Statement of Compliance

Australian Accounting Standards that have recently been issued or amended but are not yet effective have not been adopted for the annual reporting period ended 30 June 2007. These are outlined below:

Reference	Title	Summary	Application date of standard*	Impact on Group financial report	Application date for Group*
AASB 2005-10	Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]	Amendments arise from the release in August 2005 of AASB 7 Financial Instruments: Disclosures.	1 January 2007	AASB 7 is a disclosure standard so will have no direct impact on the amounts included in the Group's financial statements. However, the amendments will result in changes to the financial instrument disclosures included in the Group's financial report.	1 July 2007
AASB 2007-1	Amendments to Australian Accounting Standards arising from AASB Interpretation 11 [AASB 2]	Amending standard issued as a consequence of AASB Interpretation 11 Interim Financial Reporting and Impairment.	1 March 2007	This is consistent with the Group's existing accounting policies for share-based payments so will have no impact.	1 July 2007
AASB 2007-2	Amendments to Australian Accounting Standards arising from AASB Interpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139]	Amending standard issued as a consequence of AASB Interpretation 12 Service Concession Arrangements.	1 January 2008	As the Group currently has no service concession arrangements or public private-partnerships (PPP), it is expected that this Interpretation will have no impact on its financial report.	1 July 2008
AASB 2007-3	Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB , AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038]	Amending standard issued as a consequence of AASB 8 Operating Segments.	1 January 2009	AASB 8 is a disclosure standard so will have no direct impact on the amounts included in the Group's financial statements. However the new standard may have an impact on the Group's segment disclosures .	1 July 2009

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(b) Statement of compliance (cont'd)

Reference	Title	Summary	Application date of standard*	Impact on Group financial report	Application date for Group*
AASB 2007-4	Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments	The standard is a result of the AASB decision that, in principle, all accounting policy options currently existing in IFRS should be included in the Australian equivalents to IFRS and the additional Australian disclosures should be eliminated, other than those considered particularly relevant in the Australian reporting environment.	1 July 2007	As the Group does not anticipate changing any of its accounting policy choices as a result of the issue of AASB 2007-4 this standard will have no impact on the amounts included in the Group's financial statements. Changes to disclosure requirements will have no direct impact on the amounts included in the Group's financial statements. However the new standard may have an impact on disclosures included in the Group's financial report.	1 July 2007
AASB 2007-6	Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]	Amending standard issued as a result of AASB 123 (revised) Borrowing Costs.	1 January 2009	As the Group does not currently construct or produce any qualifying assets which are financed by borrowings the revised standard will have no impact.	1 July 2009
AASB 2007-7	Amendments to Australian Accounting Standards [AASB 1, AASB 2, AASB 4, AASB 5, AASB 107 & AASB 128]	Amending standard issued as a consequence of AASB 2007-4.	1 July 2007	Refer to AASB 2007-4 above.	1 July 2007
AASB 7	Financial Instruments: Disclosures	New standard replacing disclosure requirements of AASB 132.	1 January 2007	Refer to AASB 2005-10 above.	1 July 2007
AASB 8	Operating Segments	This new standard will replace AASB 114 Segment Reporting and adopts a management approach to segment reporting.	1 January 2009	Refer to AASB 2007-3 above.	1 July 2009

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(b) Statement of compliance (cont'd)

Reference	Title	Summary	Application date of standard*	Impact on Group financial report	Application date for Group*
AASB 101 (revised Oct 2006)	Presentation of Financial Statements	Many of the disclosures from previous GAAP and all of the guidance from previous GAAP are not carried forward in the October 2006 version of AASB 101. The revised standard includes some text from IAS 1 that is not in the existing AASB 101 and has fewer additional Australian disclosure requirements than the existing AASB 101.	1 January 2007	AASB 101 is a disclosure standard so will have no direct impact on the amounts included in the Group's financial statements. However the revised standard may result in changes to the disclosures included in the Group's financial report.	1 July 2007
AASB 123 (revised June 2007)	Borrowing Costs	AASB 123 previously permitted entities to choose between expensing all borrowing costs and capitalising those that were attributable to acquisition, production or production of a qualifying asset. The revised version of AASB 123 requires borrowing costs to be capitalised if they are directly attributable to the acquisition, construction or production of qualifying assets.	1 January 2009	Refer to AASB 2007-6 above.	1 July 2009
AASB Interpretation 10	Interim Financial Reporting and Impairment	Addresses an inconsistency between AASB 134 Interim Financial Reporting and the impairment requirements relating to goodwill in AASB 136 Impairment of Assets and equity instruments classified as available for sale in AASB 139 Financial Instruments: Recognition and Measurement.	1 November 2006	The prohibitions on reversing impairment losses in AASB 136 and AASB 139 to take precedence over the more general statement in AASB 134 is not expected to have any impact on the Group's financial report.	1 July 2007

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(b) Statement of compliance (cont'd)

Reference	Title	Summary	Application date of standard*	Impact on Group financial report	Application date for Group*
AASB Interpretation 11	Company and Treasury Share Transactions	Specifies that a 1 March 2007 Refer to AASB 2007-1 share-based payment above. transaction in which an entity receives services as consideration for its own equity instruments shall be accounted for as equity-settled.		1 July 2007
AASB Interpretation 12	Service Concession Clarifies how operators 1 January 2008 Arrangements recognise the infrastructure as a financial asset and/or an intangible asset – not as property, plant and equipment.		Refer to AASB 2007-2 above.	1 July 2008
AASB Interpretation 129 (revised June 2007)	Service Concession Arrangements: Disclosures	The revised Interpretation was issued as a result of the issue of Interpretation 12 and requires specific disclosures about service concession arrangements entered into by an entity, whether as a concession provider or as a concession operator.	1 January 2008	Refer to AASB 2007-2 above.	1 July 2008
IFRIC Interpretation 13	Customer Loyalty Programmes	Deals with the accounting for customer loyalty programmes, which are used by companies to provide incentives to their customers to buy their products or use their services.	1 July 2008	The Group does not have any customer loyalty programmes and as such this standard is not expected to have any impact on the Group's financial report.	1 July 2008
IFRIC Interpretation 14	IAS 19 – The Asset Ceiling: Availability of Economic Benefits and Minimum Funding Requirements	Aims to clarify how to determine in normal circumstances the limit on the asset that an employer's balance sheet may contain in respect of its defined benefit pension plan.	1 January 2008	The Group does not have a defined benefit pension plan and as such this standard is not expected to have any impact on the Group's financial report.	1 July 2008

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(b) Statement of compliance (cont'd)

The consolidated financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards ('AIFRS'). The consolidated financial report also complies with International Financial Reporting Standards ('IFRS').

(c) Principles of Consolidation

The consolidated financial report comprises the financial statements of NiPlats Australia Limited and its controlled entities (the "Group" or "consolidated entity"). NiPlats Australia Limited's controlled entity is the wholly owned company Speewah Mining Pty Ltd.

A controlled entity is any entity controlled by NiPlats, whereby NiPlats has the power to control the financial and operating policies of an entity so as to obtain benefits from its activities.

The financial statements of controlled entities are prepared for the same reporting period as the parent company, using consistent accounting policies. Accounting policies of controlled entities have been changed where necessary to ensure consistency with those policies applied by the parent entity.

All inter company balances and transactions between entities in the consolidated entity, including any unrealised profits or losses, have been eliminated on consolidation.

Where controlled entities have entered or left the consolidated entity during the year, their operating results have been included/excluded from the date control was obtained, or until the date control ceased. There are no minority interests in the equity of the controlled entity.

(d) Income Tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.

Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes.

No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding assets acquired and liabilities assumed in a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax liabilities are not recognised when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets are not recognised when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures except when it is probable that the temporary difference will reverse in the foreseeable future and the taxable profit will be available against which the temporary difference can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted at balance date. Deferred tax is charged or credited in the income statement except where it relates to items that may be charged or credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account, or which may be realised in the future, is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future assessable income is expected to be obtained.

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(d) Income Tax (cont'd)

The carrying amount of deferred income tax assets is reviewed at each balance and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred income tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

Tax consolidation legislation

It is the intention of the Company and its' subsidiary to form a tax consolidated group. The consolidated financial statements have been prepared on this basis of the formation of a consolidated group.

The Company and its' subsidiary have implemented the tax consolidation legislation as of 1 July 2004.

The head entity, NiPlats and the subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The group has applied the group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group.

In addition to its own current and deferred tax amounts, NiPlats also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group.

(e) Trade and other receivables

Trade receivables, which generally have 30-90 terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectible amounts.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that the Group will not be able to collect the debt.

(f) Other Financial Assets

Shares in controlled entities

Investments in controlled entities are measured at cost. The Group assesses whether it is necessary to recognise any impairment loss in the investment in subsidiaries following any significant changes in the underlying assets or operations of the relevant subsidiary.

(g) Exploration and Evaluation Expenditure

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that the Group's rights of tenure to that area of interest are current and that the costs are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Recoverability of the carrying amount of the assets is dependent on successful development and commercial exploitation or alternatively sale of the respective areas of interest.

Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(g) Exploration and Evaluation Expenditure (cont'd)

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.

Accordingly the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site.

(h) Cash and Cash Equivalents

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

(i) Trade and Other Payables

Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.

(j) Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted using a pretax rate that reflects the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs.

(k) Interest bearing loans and borrowings

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium on settlement. Gains and losses are recognised in the income statement when the liabilities are derecognised and as well as through the amortisation process.

(l) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue is capable of being reliably measured. Interest revenue is recognised as interest accrues using the effective interest method.

(m) Goods and Services Tax ("GST")

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

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

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(n) Share Based Payment Transactions

Equity settled transactions

The Group provides benefits to directors and employees (including senior executives) of the Group in the form of share based payments, whereby employees render services in exchange for shares or rights over shares (equity settled transactions).

The cost of these equity settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value of shares is determined by the most recent price of capital raising and of options using the Black & Scholes model, further details of which are given in Note 15. In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of NiPlats (market conditions) if applicable.

The cost of equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting period).

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group's best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition.

If the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.

If an equity settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

(o) Employee Benefits

Wages, salaries, annual leave and sick leave

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

Long service leave

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

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(p) Contributed Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

(q) Earnings Per Share

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

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

• costs of servicing equity (other than dividends);
• the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
• other non discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares;

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group's principal financial instruments comprises cash and short term deposits and other payables.

The main purpose of these financial instruments is to raise finance for the Group's operations. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in notes 1, 8, 9 and 13 to the consolidated financial statements.

Interest rate risk

The Group's exposure to the risk of changes in market interest rates relates primarily to the revenue the Group derives from funds on deposit at fixed and floating interest rates. The Group's policy is to forecast cash flow requirements and deposit excess funds in fixed term deposits with higher interest rates maximising the revenue that the Group earns from funds on deposit.

The Group for the year ended 30 June 2007 does not carry interest bearing debt obligations.

Credit risk

The Group's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the consolidated balance sheet. The maximum credit risk exposure does not take into account the value of any collateral or other security held, in the event other entities/parties fail to perform their obligations under the financial instruments in question.

It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures.

The Group has no significant concentrations of credit risk.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

(a) Significant accounting judgements

In the process of applying the Group's accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the consolidated financial statements:

(i) Determination of mineral resources and ore reserves

The Group's policy for estimating its mineral resources and ore reserves requires that the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 (the 'JORC code') be used as a minimum standard. The information on mineral resources and ore reserves were prepared by or under the supervision of Competent Persons as defined in the JORC code. The amounts presented are based on the mineral resources and ore reserves determined under the JORC code.

There are numerous uncertainties inherent in estimating mineral resources and ore reserves and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and may, ultimately, result in the reserves being restated. Such changes in reserves could impact on depreciation and amortisation rates, asset carrying values, and provisions for decommissioning and restoration.

(ii) Capitalisation of exploration and evaluation expenditure

Under AASB 6 Exploration for and Evaluation of Mineral Resources, the Group has the option to either expense exploration and evaluation expenditure as incurred, or to capitalise such expenditure (provided certain conditions are satisfied). The Group has elected, when the conditions in AASB 6 are met, to capitalise these costs.

(b) Significant accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities with the next annual reporting period are:

(i) Share based payment transactions

The Group measures the cost of equity settled transactions with employees and suppliers by reference to the fair value of the equity instrument at the date at which they are granted. The fair value is determined by using a Black and Scholes model, using the assumptions detailed in Note 15.

(ii) Impairment of capitalised exploration and evaluation expenditure

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.

Factors that could impact the future recoverability include the level of reserves and resources, future technological changes, which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits and net assets will be reduced in the period in which this determination is made.

In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage that permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent it is determined in the future that this capitalised expenditure should be written off, profits and net assets will be reduced in the period in which this determination is made.

		Consolidated		Parent
		2007	2006	2007	2006
		\$	\$	\$	\$
4.	REVENUES
	Revenue
	Interest	30,238	2,551	26,895	-
	Other income
	Tenement rent and bond refunds	-	28,807	-	-
5.	INCOME TAX
	The major components of income tax are:
	Income Statement
	Current income tax
	Current year	(446,428)	(128,723)	(12,017)	Nil
	Deferred income tax
	Relating to origination and reversal of temporary differences	106,958	136,252	5,359	-
	Deferred tax assets related to current year timing differences not brought to account as realisation is not regarded probable	-	-	-	-
	Income tax expense/(benefit) reported in the income statement	(339,470)	7,529	(6,658)	Nil
	Reconciliation to Income Tax Expense on Accounting Profit/(Loss) A reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Company's applicable income tax rate is as follows: Accounting profit/(loss) before income tax	(343,070)	25,096	(334,419)	Nil
	Tax payable/(receivable) at the statutory income tax rate 30%	(102,922)	7,529	(100,326)	-
	Non Deductible Expenses
	Tax Uplift on Exploration Expenditure	(330,216)	-	-	-
	Employee share expenses	93,668	-	93,668	-
	Deferred tax assets not brought to account as realisation is not considered probable	-	-	-	-
		(339,470)	7,529	(6,658)	Nil

5. INCOME TAX (Cont'd)

Consolidated	Balance Sheet		Income Statement
	30 June 2007	30 June 2006	Year ended 30 June 2007	Year ended 30 June 2006
	\$	\$	\$	\$
Deferred income tax
Deferred income tax at 30 June relates to the following:
Deferred tax liabilities
Exploration	(493,912)	(392,313)	101,599	136,252
Deferred tax assets
Capital raising costs	43,946	-	10,986	-
Tax losses	324,545	-	-	-
Provisions	5,625	-	(5,627)	-
	(119,796)	(392,313)
Deferred tax (income)/expense			106,958	136,252

Parent	Balance Sheet		Income Statement
	30 June 2007	30 June 2006	Year ended 30 June 2007	Year ended 30 June 2006
	\$	\$	\$	\$
Deferred income tax
Deferred income tax at 30 June relates to the
following:
Deferred tax liabilities
Exploration	(1,550)	(1,550)	-	-
Deferred tax assets
Capital raising costs	43,946	-	10,986	-
Tax losses	324,545	-	-	-
Provisions	5,627	-	(5,627)	-
	372,568	(1,550)
Deferred tax (income)/expense			5,359	-

The Group has tax losses for which no deferred tax asset is recognised on the balance sheet that arose in Australia of \$nil (2006: \$nil) and are available indefinitely for offset against future taxable profits of the Group subject to continuing to meet relevant statutory tests.

The consolidated entity was a member of the Mineral Securities Limited tax consolidated group up until 26 April 2007. Tax losses for the period from 1 July 2006 to 26 April 2007 of \$110,896 were assumed by Mineral Securities Limited, which has been accounted for as a distribution. Subsequent to 26 April 2007 the consolidated entity has not been part of a tax consolidated group.

It is the intention of the Company and its' subsidiary to apply to form a tax consolidated group. The consolidated financial statements have been prepared on this basis of the formation of a consolidated group.

6. SEGMENT REPORTING

During the financial year, the Group operated predominantly in the mineral exploration sector in Australia.

		2007	2006
7.	EARNIN GS/loss PER SHARE
		\$	\$
	Profit/(Loss) used in calculation of basic and diluted earnings per share	(3,600)	17,567

		Number	Number
	Weighted average number of ordinary shares for the purposes of	9,134,287	50
	basic earnings per share
	Effect of dilution:
	share options	-	-
	Weighted average number of ordinary shares adjusted for the effect of dilution	9,134,287	50

There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

		Consolidated		Parent
		2007	2006	2007	2006
		\$	\$	\$	\$
8.	CASH AN D CASH EQUIVALENTS
	Cash at bank and on hand	2,320,654	27,526	2,226,105	10
	Cash at bank earns interest at floating rates
	based on daily bank deposit rates.
(ii)	Reconciliation of Profit/(Loss) for the Year to Net Cash Flows used in Operating
	Activities
	Profit/(Loss) for the year	(3,600)	17,567	(327,761)	-
	Share-based payments	312,160	-	312,160	-
	(Increase)/decrease in assets:
	− deposit refund	-	(28,807)	-	-
	− current receivables	(38,720)	(13,422)	(32,380)	-
	− other financial assets	-	-	-	-
	Increase/(decrease) in liabilities:
	− current payables	69,358	2,450	65,585	-
	− deferred tax	(339,470)	7,529	(6,658)	-
	Net Cash flow from/(used in) Operating Activities	(272)	(14,683)	10,946	-

N o t es t o t h e C o n s o l id at e d Fi nan ci al Stat e m e n t s

FOR THE YEAR ENDED 30 JUNE 2007

		Consolidated		Parent
		2007	2006	2007	2006
		\$	\$	\$	\$
9.	TRA DE AN D OTHER RE CEIVA BLES
	Accrued interest	18,217	-	18,217	-
	GST recoverable	33,925	13,422	14,163	-
	Prepayments	30,299	-	30,299	-
		82,441	13,422	62,679	-

Trade and other receivables are non interest bearing and are generally on 30 day terms.

10. OTHER FINANCIAL ASSETS

Term deposit for bank guarantee for rehabilitation bond	40,000	40,000	-	-
Employee Advance	2,500	-	-	-
Intercompany loan	-	-	554,020	5,167
	42,500	40,000	554,020	5,167

The term deposit is attracting an interest rate of 4.25%. Please refer to Note 17 for terms and conditions of intercompany loan.

11. COMMITMENTS

Exploration Expenditure

In order to maintain the Company's interest in mining tenements, the Company is committed to meet the minimum expenditure conditions under which the tenements were granted.

Within 1 year 433,076 426,800 - -

Storage Facilities

The Company entered an agreement for occupancy and warehouse storage facilities on a monthly basis, the commitments under these agreements are:

within 1 year	68,333	-	68,333	-
1 – 5 years	-	-	-	-
> 5 years	-	-	-	-

			Consolidated		Parent
		Notes	2007	2006	2007	2006
			\$	\$	\$	\$
12.	DEFERRE D EXPLORATION EXPEN DITURE
	Costs carried forward in respect of:
	Explorations and Evaluations Phase – At Cost
	Balance at beginning of the year		1,085,746	853,540	-	-
	Expenditure incurred		560,627	232,206	-	-
	Expenditure written off		-	-	-	-
	Total Exploration Expenditure		1,646,373	1,085,746	-	-

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. Expenditure written of represents tenements relinquished once initial exploration revealed low grade mineralisation thought not to be able to be commercially exploited.

			Consolidated		Parent
		Notes	2007	2006	2007	2006
			\$	\$	\$	\$
13.	TRA DE AN D OTHER PAYA BLES
	Trade payables	1	289,259	610	162,201	-
	Loans payable to Mineral Securities Limited	2	17,096	486,826	-	5,166
			306,355	487,436	162,201	5,166

Trade payables and other creditors are non interest bearing and are normally settled on 30 day terms.
Loan payable to Mineral Securities Limited was non-interest bearing with no set repayment date.

Consolidated and Parent	2007	2006
	\$	\$
14. CONTRI BUTE D EQUITY AN D RESERVES
Issued capital	3,070,321	10
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
	Number	\$
Movement in ordinary shares on issue
At 1 July 2005	50	10
Issue of shares	-	-
At 1 July 2006	50	10
Issued 24 April 2007 (conversion of Mineral Securities Limited loan)	29,999,950	668,186
Issued 26 April 2007 for cash	15,000,000	1,500,000
Issued 24 May 2007 for cash	8,000,000	1,000,000
Transaction costs on share issue (net of deferred tax credit recognised in equity)	-	(97,875)
At 30 June 2007	53,000,000	3,070,321

14. CONTRIBUTED EQUITY AND RESERVES (Cont'd)

Subsequent to the end of the financial year, on 9 August 2007, 15,000,000 shares were issued under an initial public offer prospectus. The Company commenced trading on the Australian Stock Exchange on 21 September 2007.

Terms and conditions of contributed equity

Ordinary shares

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. On a show of hands, every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

As per the Corporations Act 2001 the Company does not have authorised capital and ordinary shares do not have a par value.

5,000,000 options over ordinary shares were granted to directors and consultants of the Company. The unlisted options are exercisable at \$0.20 on or before 30 June 2012. The options were valued at 6.7 cents each at grant date. The vesting requirement, which has been fulfilled, linked to these options was the lodgement of the prospectus dated 3 July 2007.

	Equity Benefits Reserve
Reserves
At 1 July 2005	-
Share-based payments - employee benefits	-
At 30 June 2006	-
Share-based payments - employee benefits related to issue of options	312,160
At 30 June 2007	312,160

Nature and Purpose of Equity Benefits Reserve

This reserve is used to record the value of equity benefits provided to directors, employees and external service providers as part of their fees and remuneration.

		2007	2007 Weighted Average Exercise Price	2006	2006 Weighted Average Exercise Price
		Number	\$	Number	\$
15.	SHARE BASE D PAYMENT PLAN
	Options outstanding at the beginning of the year	-	-	-	-
	Granted during the year	5,000,000	0.20	-	-
	Outstanding at the end of the year	5,000,000	0.20	-	-
	Exercisable at the end of the year	-	-	-	-

There were no options issued or exercisable as at 30 June 2007 or 30 June 2006.

The Company granted 5,000,000 options over ordinary shares with an exercise price of \$0.20 each, exercisable until 30 June 2012. No options were forfeited, exercised or expired during the year ended 30 June 2007. The options vested on 2 July 2007.

15. share based payment plan (Cont'd)

The fair value of the equity settled share options granted is estimated as at the date of grant using a Black & Scholes model taking into account the terms and conditions upon which the options were granted. The following table lists the inputs to the model:

	2007	2006
Volatility (%)	70	n/a
Risk free interest rate (%)	6.41	n/a
Historic share price previous to grant date (cents)	12.5	n/a
Expected life of options (years)	5	n/a
Options exercise price (cents)	20	n/a

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of options granted were incorporated into the measurement of fair value.

16. FAIR VALUE AND INTEREST RATE RISK

Fair value

All assets and liabilities recorded in the balance sheet, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes.

Interest rate risk

The following tables set out the carrying amount, by maturity, of the financial instruments exposed to interest rate risk:

30 June 2007 - Consolidated	<1year \$	Non interest bearing \$	Total \$	Weighted Average Effective Interest Rate %
Financial Assets
Floating rate
Cash assets	2,320,654	-	2,320,654	5.23
Trade and Other Receivables	-	52,142	52,142
Fixed rate
Other Financial Assets	40,000	2,500	42,500	4.41
Total	2,360,654	54,642	2,415,296
Financial Liabilities
Trade and Other Payables	-	306,355	306,355
Total	-	306,355	306,355

	<1year	Non interest bearing	Total	Weighted Average Effective Interest Rate
30 June 2007 - Parent	\$	\$	\$	%
Financial Assets
Floating rate
Cash assets	2,226,105	-	2,226,105	5.25
Trade and Other Receivables	-	32,380	32,380
Loans to subsidiary	-	554,020	554,020
Total	2,226,105	586,400	2,812,505
Financial Liabilities
Trade and Other Payables	-	162,201	162,201
Total	-	162,201	162,201

16. fair value and interest rate risk (Cont'd)

	<1year	Non interest bearing	Total	Weighted Average Effective Interest Rate
30 June 2006 - Consolidated	\$	\$	\$	%
Financial Assets
Floating rate
Cash assets	27,526	-	27,526	4.75
Trade and Other Receivables	-	13,422	13,422
Other Financial Assets	40,000	-	40,000	4.25
Total	67,526	13,422	80,948
Financial Liabilities
Trade and Other Payables	-	487,436	487,436
Total	-	487,436	487,436
30 June 2006 - Parent
Financial Assets
Floating rate
Cash assets	10	-	10	4.75
Loan to subsidiary	-	5,167	5,167
Total	10	5,167	5,177
Financial Liabilities
Trade and Other Payables	-	5,166	5,166
Total	-	5,166	5,166

17. RELATED PARTY DISCLOSURE

The consolidated financial statements include the financial statements of NiPlats and the subsidiary listed in the following table:

	Country of	% Equity Interest		Investment (\$)
	Incorporation	2007	2006	2007	2006
Speewah Mining Pty Ltd	Australia	100	100	1	1

The outstanding loan balance to the subsidiary as at 30 June 2007 is \$554,020 (2006: \$5,167). The loan is non-interest bearing and has no repayment term.

Details relating to key management personnel including remuneration are included in Note 20.

Details relating to Mineral Securities Limited, which has significant influence over the Group are included in Note 20.

18. EVENTS AFTER THE BALANCE SHEET DATE

After the balance date the following significant changes were made to the Company's equity:

• On 2 July 2007, 5,000,000 options were issued to Directors and consultants. The options were exercisable at 20 cents and have an expiry date of 30 June 2012. At the date of the report there had been no changes in the terms of the options and no exercise, forfeiture or lapsing of the options;
• On 9 August 2007, the Company issued 15,000,000 fully paid shares as part of the initial public offering of \$3,000,000 to seek admission to the official list of the Australian Securities Exchange; and
• The Company commenced trading on the ASX on 21 September 2007.

Other than these no matter or circumstance has arisen that has significantly affected, or may significantly affect, the operations of NiPlats, the results of those operations or the state of affairs of NiPlats in subsequent years that is not otherwise disclosed in the consolidated financial statements.

19. AUDITORS' REMUNERATION

The auditors of NiPlats are Ernst & Young.

	Consolidated		Parent
	2007	2006	2007	2006
	\$	\$	\$	\$
Amounts received or due and receivable by Ernst &
Young for:
An audit or review of the financial report of the entity	17,000	-	17,000	-
Other non audit services – Investigating Accountants	20,000	-	20,000	-
Report
	37,000	-	37,000	-

20. DIRECTORS AND EXECUTIVE DISCLOSURES

(a) Details of Key Management Personnel

(i) Directors

A Barton	(Non Executive Chairman)
K Liddell	(Non Executive Director)
R Wolanski	(Executive Director)
M Bolton	(Director) (resigned 21 May 2007)
Hon J Moore	(Director) (resigned 21 May 2007)

(ii) Executives

R Wolanski	Company Secretary
M Bolton	Company Secretary (resigned 21 May 2007)
J Armes	Company Secretary (resigned 21 May 2007)

There were no changes to key management personnel between the reporting date and the date the financial report was authorised for issue.

20. directors and executive disclosures (Cont'd)

(b) Compensation of Key Management Personnel

	Consolidated		Parent
	2007	2006	2007	2006
	\$	\$	\$	\$
Key Management Personnel
Short-term	27,106	-	27,106	-
Post-employment superannuation	1,112	-	1,112	-
Value of Share based payments	187,296	-	187,296	-
	215,514	-	215,514	-

The Group has applied the exemption under Corporations Amendments Regulation 2006 to transfer key management personnel remuneration disclosures required by Accounting Standard AASB 124 Related Party Disclosures paragraphs Aus 25.4 to Aus 25.7.2 to the Remuneration Report section of the Directors' Report. These transferred disclosures have been audited.

(c) Holdings of Directors

The following table sets out the responsibilities and interest of directors in the Group as at 30 June 2007:

	Special Responsibilities	Ordinary Shares	Options Over Ordinary Shares
A Barton	Non Executive Chairman	2,920,000¹	-
K Liddell	Non Executive Director	-	-
R Wolanski	Executive Director and Company Secretary	100,000	-
Hon J Moore	Director (resigned 21 May 2007)	400,000	-
M Bolton	Director (resigned 21 May 2007)	-	-

1,000,000 of the Shares are held by Mr AP Barton and Mrs CH Barton as trustee for the Barton Family Superannuation Fund of which Mr Barton is a director and a beneficiary. 720,000 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the Australian Heritage Trust of which Mr Barton is a director and a beneficiary. 1,200,000 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the New Capital Fund of which Mr Barton is a director and a beneficiary.

Mineral Securities Limited, a public company listed on the ASX, of which Mr Liddell is Executive Chairman and a shareholder, holds a direct interest in 30,000,000 shares in NiPlats.

(d) Option Holdings of Key Management Personnel

	Balance at Beginning of Period	Granted as Remuner ation	Options Exercised	Net Change Other	Balance at End of Period		Vested at 30 June 2007
	1 July				30 June		Not
30 June 2007 Directors	2006				2007	Total	Exercisable Exercisable
A Barton	-	2,000,000	-	-	2,000,000	-	-	-
K Liddell	-	1,000,000	-	-	1,000,000	-	-	-
R Wolanski	-	1,000,000	-	-	1,000,000	-	-	-
Hon J Moore1	-	-	-	-	-	-	-	-
M Bolton1	-	-	-	-	-	-	-	-
Executives	-	-	-	-	-	-	-	-
M Bolton1	-	-	-	-	-	-	-	-
J Armes1	-	-	-	-	-	-	-	-
Total	-	4,000,000	-	-	4,000,000	-	-	-

Resigned prior to 30 June 2007

No director or executive had any option holding in the financial year ended 30 June 2006.

20. directors and executive disclosures (Cont'd)

(e) Shareholdings of Key Management Personnel

30 June 2007	Balance 1 July 2006 Ord	Granted as Remuneration Ord	On Exercise of Options Ord	Net Change Other3 Ord	Balance 30 June 2007 Ord
Directors
A Barton	-	-	-	2,920,0002	2,920,0002
K Liddell	-	-	-	-	-
R Wolanski	-	-	-	100,000	100,000
Hon J Moore1	-	-	-	400,000	400,000
M Bolton1	-	-	-	-	-
Executives
M Bolton1	-	-	-	-	-
J Armes1	-	-	-	-	-
Total	-	-	-	3,420,000	3,420,000

1. Resigned prior to 30 June 2007
1. 1,000,000 of the Shares are held by Mr AP Barton and Mrs CH Barton as trustee for the Barton Family Superannuation Fund of which Mr Barton is a director and a beneficiary. 720,000 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the Australian Heritage Trust of which Mr Barton is a director and a beneficiary. 1,200,000 of the Shares are held by Australian Heritage Group Pty Ltd as trustee for the New Capital Fund of which Mr Barton is a director and a beneficiary.
1. All equity transactions with key management personnel have been entered into under terms no more favourable than those the Group would have adopted if dealing at arm's length.

Directors and Executives of NiPlats Australia Limited – 2006

No director or executive had any share holding in the financial year ended 30 June 2006.

(f) Other Transactions with Key Management Personnel and with Mineral Securities Limited

Working capital loans were provided during the year by Mineral Securities Limited ("Minsec"), a company of which Mr Liddell is a director and has a beneficial interest. The total value of the loans provided by Minsec during the year was \$201,689 (2006: \$486,826). During the year \$668,186 of loans from Minsec were converted into 29,999,950 ordinary shares. All loans from Minsec have been repaid.

Administration, occupancy and technical services were provided during the year by Minsec at a cost of \$5,000 per month commencing 1 May 2007. Also pursuant to this agreement Mr Ken Rogers, an employee of Minsec, will consult to NiPlats as the Company's Chief Geologist. Minsec will charge NiPlats the cost of Mr Rogers base salary plus a markup of 50%. The total value of the administration and occupancy services provided by Minsec during the year was \$23,727 (2006: \$nil).

Australian Heritage Group Pty Ltd ("AHG"), a company of which Mr Anthony Barton is a Director has entered into a corporate advisory agreement with NiPlats in respect of the seed capital raisings completed. AHG was been engaged to provide management services and corporate, strategic and market advice in relation to the seed capital raisings. The total value of the corporate advisory services provided by AHG during the year was \$27,500 (2006: \$nil).

AHG also provided co-ordination and management services with other brokers for a fee of 1% of the total capital raised. NiPlats also paid a capital raising fee of 5% to AHG of the total capital raised, of which 4% of these fees is typically passed on to any AFSL holders who have provided capital raising services. The net value (after deducting payments to AFSL holders of the co-ordination and management services provided by AHG during the year was \$100,760 (2006: \$nil).

All services provided by companies associated with directors were provided on commercial terms.

AS X Additi onal Info rm a ti o n

Additional information required by the Australian Stock Exchange Limited and not shown elsewhere in this report is as follows. The information is current as at 5 October 2007.

(a) Distribution of Equity Securities

The number of shareholders, by size of holding, in each class of share are:

			Listed Ordinary Shares
			Number of Holders	Number of Shares
1	−	1,000	1	65
1,001	−	5,000	27	75,995
5,001	−	10,000	264	2,606,911
10,001	−	100,000	195	7,483,344
100,001	−	and over	71	57,833,685
			558	68,000,000

The number of shareholders holding less than a marketable parcel of shares are: 3 3,065

(b) Twenty Largest Shareholders

The names of the twenty largest holders of quoted shares are:

		Listed Ordinary Shares
		Number of Shares	Percentage of Shares %
1.	Mineral Securities Holdings Pty Ltd	30,000,000	44.12
2.	Mr A P & Mrs C H Barton (AP Barton PSF Account)	2,400,000	3.53
3.	Australian Heritage Group Pty Ltd (New Capital Account)	1,951,875	2.87
4.	Roland Zimet	1,591,000	2.34
5.	Australian Heritage Group Pty Ltd (Australian Heritage Account)	1,422,270	2.09
6.	Mr AP & Mrs C H Barton (Barton Super Fund Account)	1,350,000	1.99
7.	Australian Heritage Group Pty Ltd (Australian Heritage Group Account)	1,273,367	1.87
8.	Celtic Capital Pty Ltd	1,240,000	1.82
9.	L & E Fisher Nominees Pty Ltd	1,000,000	1.47
10.	Mulato Nominess Pty Ltd	1,000,000	1.47
11.	GDM Services Pty Ltd	750,000	1.10
12.	Jarden Custodians Limited	750,000	1.10
13.	Mr J Hondris	731,249	1.08
14.	Gemelli Nominees Pty Ltd	593,499	0.80
15.	Jaspon Holdings Pty Ltd	500,000	0.74
16.	Mr O Ward	500,000	0.74
17.	Mulloway Pty Ltd	468,000	0.69
18.	Belmark Investments Pty Ltd	400,000	0.59
19.	Mr R Wolanski	350,000	0.51
20.	Mr R Warner	325,000	0.48
		48,596,260	71.40

AS X Additi onal Info rm a ti o n

(c) Substantial Shareholders

The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations Act 2001 are:

	Number of Shares	Percentage of Ordinary Shares %
Mineral Securities Holdings Pty Ltd	30,000,000	44.1
Mr A P & Mrs C H Barton	3,750,000	5.5

(d) Voting Rights

All ordinary shares (whether fully paid or not) carry one vote per share without restriction.

(e) Unquoted Securities (and names of holders with more than 20% of equity in securities in each case)

Class	Number of Securities	Number of Holders	Holders with More Than 20%
Class A options over ordinary shares exercisable at \$0.20 on or before	5,000,000	6	n/a
30 June 2012

(f) Stock Exchange Listing

Quotation has been granted for all the ordinary shares of the company on all Member Exchange of the Australian Stock Exchange Limited.

(g) On-Market Buyback

There is no on-market buyback of the shares in the Company.

(h) Schedule of Mining Tenements

Area of Interest	Tenements	Comments
Australia – Western Australia
East Kimberley	M80/267	All of the Tenements are registered in the name
East Kimberley	M80/268	of Speewah Mining Pty Ltd, a wholly owned
East Kimberley	M80/269	subsidiary of NiPlats.
East Kimberley	E80/2863
East Kimberley	E80/3657
East Kimberley	L80/43
East Kimberley	L80/47
Note:
M = Mining Lease
E = Exploration Licence
L = Miscellaneous Licence

I n d e p e n d e n t Audit R e p o rt

Independent auditor's report to the members of NiPlats Australia Limited

We have audited the accompanying financial report of NiPlats Australia Limited, which comprises the balance sheet as at 30 June 2007, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the Directors' Declaration of the consolidated entity comprising the company and the entities it controlled at the year's end or from time to time during the financial year.

The company has disclosed information as required by paragraphs Aus 25.4 to Aus 25.7.2 of Accounting Standard 124 Related Party Disclosures ("remuneration disclosures"), under the heading "Remuneration Report" on pages 10 to 12 of the Directors' Report, as permitted by Corporations Regulation 2M.6.04.

Directors' Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with the Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards. The directors are also responsible for the remuneration disclosures contained in the Directors' Report.

Auditor's Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement and that the remuneration disclosures comply with Accounting Standard AASB 124 Related Party Disclosures.

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

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

Independence

In conducting our audit we have met the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor's Independence Declaration, a copy of which is included in the Directors' Report. In addition to our audit of the financial report and the remuneration disclosures, we were engaged to undertake the services disclosed in the notes to the financial statements. The provision of these services has not impaired our independence.

I n d e p e n d e n t Audit R e p o rt

Auditor's Opinion

In our opinion:

1. the financial report of NiPlats Australia Limited is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of NiPlats Australia Limited and the consolidated entity at 30 June 2007 and of their performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and
1. the financial report also complies with International Financial Reporting Standards as disclosed in Note 1; and
1. the remuneration disclosures that are contained on pages 10 to 12 of the Directors' Report comply with Accounting Standard AASB 124 Related Party Disclosures.

Ernst & Young

G H Meyerowitz Partner Perth

26 October 2007

Liability limited by a scheme approved under Professional Standards Legislation.

AI assistant

KING RIVER RESOURCES LIMITED — Annual Report 2007

65203_rns_2007-10-28_bc5962f4-499f-45c1-a7c4-dca90e0cbe17.pdf

annual financial report NiPlats Australia Limited

NIPLAT S AU S TRALIA LI M ITED - ACN 100 714 181 corporate directory

DIRECTORS

COMPANY SECRETARY

REGISTERED OFFICE

INternet address

SOLICITORS

bankers

SHARE REGISTer

AUDITORS

Table of Con t e n t s

Cha irm an's Re p o rt

Dear Shareholder,

Op e r a ti ons Re p o rt

Background

Location

Op e r a ti ons Re p o rt

Exploration Programme completed in 2007

Mineral Resource

Exploration Programme For 2008

Summary

Directors

Anthony Barton (Non Executive Chairman) Appointed 21 May 2007 B.Bus (Accountancy)

Keith Liddell (Non Executive Director) BSc (Hons), MSc (Engineering), FAusIMM, CP (Metallurgy), CP (Mgt), FIE Aust, C Eng (UK), Pr Eng (South Africa), FSAIMM, MIMMM

Richard Wolanski (Executive Director) Appointed 21 May 2007

B.Com, ACA

Hon John Moore (Director)

Company Secretaries

Mark Bolton

Jamie Armes

Interests in the Shares and Options of the Company and Related Bodies Corporate

Corporate Structure

Nature of Operations and Principal Activities

Operating Review

Review of Consolidated financial Condition

Capital Structure

Cash From Operations

Significant Changes in the State of Affairs

Contributed Equity

Significant Events After the Balance Date

Likely Developments and Expected Results

Environmental Regulation and Performance

Shares Under Option

Shares Issued on Exercise of Options

Indemnification and Insurance of Directors and Officers

Rounding

Remuneration Report (Audited)

Remuneration Policy

Remuneration Committee

Non Executive Director Remuneration

Fixed Remuneration

Variable Remuneration – Short Term Incentives

Variable Remuneration – Long Term Incentives

Executive Directors Remuneration

Fixed Remuneration

Variable Remuneration – Long Term Incentives

Employment Contract – Richard Wolanski (Executive Director & Company Secretary)

Details of Remuneration

Directors and Executives of NiPlats Australia Limited – 2006

Share Based Compensation

Directors' Meetings

Committee Membership

Corporate Governance

Auditor Independence

Non Audit Services

Tax Consolidation

1. INTRODUCTION

1.1. Corporate Governance

1.2. Compliance with ASX Listing Rule 4.10.3

1.3. The Company's Approach

1.4. Adoption by the Board

1.5. Summary of Compliance

2. ESSENTIAL PRINCIPLES OF GOOD CORPORATE GOVERNANCE

2.1. Principle 1: Lay Solid Foundations for Management and Oversight

"Recognise and publish the respective roles and responsibilities of the Board and management."

2.2. Principle 2: Structure the Board to Add Value

"Have a Board of an effective composition size and commitment to adequately discharge its responsibilities and duties."

KING RIVER RESOURCES LIMITED Annual Report 2007