MACH7 TECHNOLOGIES LIMITED - Annual Report 2013

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SAFETY MEDICAL PRODUCTS LIMITED

ABN 26 007 817 192

2013 ANNUAL REPORT

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

The Directors present their report together with the financial report of Safety Medical Products Limited (the Company) for the year ended 30 June 2013 and the auditor’s report thereon.

Contents of Directors’ report	Contents of Directors’ report	Page
1.	Directors	3
2.	Directors’ Meetings	3
3.	Corporate Governance Statement	4
4.	Remuneration report	8
4.1	Principles of compensation	8
4.2	Analysis of bonuses included in remuneration	9
4.3	Options over equity instruments granted as compensation	9
4.4	Directors’ and executive officers’ remuneration	10
5.	Principal activities and review of operations	11
6.	Operating and financial review	17
7.	Dividends	17
8.	Events subsequent to reporting date	17
9.	Likely developments	17
10.	Directors’ interests	17
11.	Indemnification of officers	17
12.	Lead auditor’s independence declaration	18
13.	Proceedings on behalf of the Company	18
14.	Auditor and Non-Audit Fees	18

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

1. Directors

The directors of the Company during or since the end of the financial year are:

Name and qualifications	Experience and special responsibilities
Peter Christie	Director and Chairman appointed 6 October 2010.
Chairman	Mr Christie graduated from Curtin University with a Bachelor of Business
Aged 51	in 1983 and is a qualified Accountant and Tax Agent. He has 20 years
	experience and has developed extensive hospitality and property
	interests.
Simon Lill	Director appointed 6 October 2010.
Director	Mr Lill has a BSc (Pharmacol.) and a Masters of Business Administration,
Aged 51	both from The University of Western Australia. He has a background of
	over 25 years of stockbroking, capital raising, management, business
	development and analysis for a range of small and start-up companies,
	both in the manufacturing and resources industries.
Stephen Hewitt-Dutton	Director appointed 6 October 2010.
Director	Mr. Hewitt-Dutton has over 20 years of experience in accounting,
Aged 43	company secretarial and corporate finance matters. He holds a Bachelor
	of Business from Curtin University and an affiliate of the Institute of
	Chartered Accountants.

Directorships of other listed companies

Directorships of other listed companies held by directors in the 3 years immediately before the end of the financial year are as follows:

Name	Company	Period of directorship
Peter Christie	Carnavale Resources Limited	28 April 2006 – current
	Narhex Life Sciences Limited	13 January 2011–current
Simon Lill	Natural Fuel Limited	18 May 2010 – current
	Narhex Life Sciences Limited	13 January 2011 – current
	First Growth Funds Limited	16 July 2012-current
Stephen Hewitt-Dutton	Reclaim IndustriesLimited	13March 2012 -current

2. Directors’ meetings

The number of directors’ meetings and the number attended by each of the directors of the Company during the financial year are:

			Audit Committee	Audit Committee	Remuneration	Remuneration
	Board	Meetings	Meetings		Committee	Meetings
Director	No.		No.		No.
	Attended	No. Held	Attended	No. Held	Attended	No. Held
Mr P Christie	4	4	-	-	-	-
Mr S Lill	4	4	-	-	-	-
MrSHewittDutton	4	4	-	-	-	-

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

3. Corporate Governance Statement

The Company has adopted comprehensive systems of control and accountability as the basis for the administration of corporate governance. The Board is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company’s needs. To the extent they are applicable, the Company has adopted the Eight Essential Corporate Governance Principles and Best Practice Recommendations (“Recommendations”) as published by ASX Corporate Governance Council.

The Company’s Corporate Governance policy is available on the Company’s website. As the Company’s activities develop in size, nature and scope, the size of the Board and the implementation of additional corporate governance structures will be given further consideration.

Principle 1 – Lay solid foundations for management and oversight

The Board and management have agreed on their respective roles and responsibilities and the functions reserved to the Board and management. The Board has established and adopted a Board Charter for this purpose.

The Board is responsible for oversight of the management and the overall corporate governance of the Company including its strategic direction, establishing goals for management and monitoring the achievement of those goals with a view to optimising company performance and the protection and enhancement of long-term shareholder value.

The Board has also established a Nomination and Remuneration Committee Charter which, amongst other functions, guides the Board in its evaluation of the performance of senior executives and encourages an appropriate mix of skills, experience, expertise and diversity on the Board.

The role of management is the efficient and effective operation of the activities of the Company in accordance with the objectives, strategies and policies determined by the Board. The performance of senior management is reviewed annually in a formal process with the executive’s performance assessed against the company and personal benchmarks. Benchmarks are agreed with the executives and reviews are based upon the degree of achievement against those benchmarks.

Principle 2 – Structure the Board to add value

The Board ultimately takes responsibility for corporate governance, and will be accountable to the Shareholders for the performance of the Company. The functions and responsibilities of the Board are set out in the Company’s Constitution and the Corporations Act.

The Company has adopted a Nomination and Remuneration Committee Charter which encourages a transparent Board selection process in searching for and selecting new directors to the Board and having regard to any gaps in the skills and experience of the directors of the Board and ensuring that a diverse range of candidates is considered. The Board composition is reviewed on an ongoing basis with regard to the activities of the Company and the skills sets required to support those activities.

A separate nomination committee has not been formed. The role of the nomination committee is carried out by the full Board in accordance with the Nomination and Remuneration Committee Charter. The Board considers that at this stage, no efficiencies or other benefits would be gained by establishing a separate committee.

The composition of the Board is determined using the following principles:

A minimum of three directors, with a broad range of expertise
Directors should bring characteristics which allow a mix of qualifications, skills, experience,
expertise and diversity to the Board

The skills, experience, expertise and tenure of each director are disclosed in the Directors’ Report within this Annual Report.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

3. Corporate Governance Statement (continued)

Principle 2 – Structure the Board to add value (continued)

In assessing the independence of directors, the Board follows the ASX guidelines and will consider whether the director:

Is a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a substantial shareholder of the Company
Is employed, or has previously been employed in executive capacity by the Company or another group member, and there has not been a period of at least three years between ceasing such employment and serving the on board
Has within the last three years been a principal of a material professional advisor or a material consultant to the Company or another group member, or an employee materially associated with the service provided
Is a material supplier or customer of the Company or another group member, or an officer of or otherwise associated directly or indirectly with a material supplier or customer
Has a material contractual relationship with the Company or another group member other than as director of the Company

The Board does not currently have a majority of independent directors. It is comprised of one independent director and two non-independent directors. 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.

Where additional skills are considered necessary for specific purposes, access is made to independent professional advice at the expense of the Company.

Principle 3 – Promote ethical and responsible decision making

All Directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the Company. The Board has established a Code of Conduct to guide the Directors, managers, employees and officers of the Company with respect to matters relevant to the Company’s legal and ethical obligations and the expectations of stakeholders.

The Code of Conduct requires officers and employees to avoid or ensure proper management of conflicts of interest, to not use confidential information for personal gain and to act in fair, honest and respectful manner. The Board has procedures in place for reporting any matters that give rise to unethical practices or conflicts between the interests of a director or senior executive and those of the Company.

Diversity Policy

The Board has also established a Diversity Policy which affirms the Company’s commitment to promoting a corporate culture that is supportive of diversity and outlines strategies that the Board can undertake to encourage and promote a diverse working environment.

The Company does not select candidates based on gender or ethnicity, rather the recruitment process chooses candidates from a diverse group after widely canvassing the market and by selecting the most appropriate candidate based on merit and suitability for the role.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

3. Corporate Governance Statement (continued)

Principle 3 – Promote ethical and responsible decision making (continued)

Currently the Company has no employees as the operations are managed by the Board. Operations are carried out through the engagement of independent consultants and the administration is outsourced to a management company. There are currently no women on the Board of the Company or employed by the Company.

Given the Company’s size and that it currently has no employees the Board does not consider it appropriate to set objectives regarding gender diversity at this time. As the operations grow, the Board will give consideration to the setting of such objectives and their achievement through the appointment of appropriate candidates to the Board and senior executive positions as they become available.

Securities Trading Policy

The Board encourages directors and employees to hold shares in the Company to align their interest with the interests of all Shareholders. The Company has adopted a Securities Trading Policy which guides directors, employees or contractors in trading the Company’s securities in accordance with ASX Listing Rules. Trading the Company’s shares is prohibited under certain circumstances and a director, employee or contractor must not deal in the Company’s securities at any time when he or she is in possession of information which, if generally available, may affect the price of the Company’s shares.

The Policy sets out the following information:

(a) closed periods in which directors, employees and contractors of the Company must not deal in the Company’s securities;
(b) trading in the Company’s securities which is not subject to the Company’s Trading Policy; and
(c) the procedures for obtaining written clearance for trading in exceptional circumstances.

Principle 4 – Safeguard integrity in financial reporting

The Directors require the Chief Financial Officer and Chief Executive Officer and external company auditors to state in writing to the Board that the Company’s financial condition and operational results and are in accordance with relevant accounting standards.

A separate audit committee has not been formed. However, the Company has adopted an Audit Committee Charter. The role of the audit committee is carried out by the full Board in accordance with the Audit Committee Charter. The Board considers that given its size, no efficiencies or other benefits would be gained by establishing a separate audit committee.

Principle 5 – Make timely and balanced disclosure

The Directors are committed to keeping the market fully informed of material developments to ensure compliance with the ASX Listing Rules and the Corporations Act. The Directors have established a written policy and procedure to ensure compliance with the disclosure requirements of the ASX Listing Rules. At each meeting of the directors, consideration is given as to whether notice of material information concerning the Company, including its financial position, performance, ownership and governance has been made to all investors.

Under the policy the Company’s employees and contractors must disclose any relevant information which comes to their attention and is believed to potentially be material to the Company Secretary or Executive Director.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

3. Corporate Governance Statement (continued)

Principle 6 – Respect the rights of Shareholders

The Directors have established a communications strategy to promote effective communication with Shareholders and encourage effective participation at general meetings. As well as ensuring timely and appropriate access to information for all investors via announcements to the ASX, the Company will also ensure that all relevant documents are released on the Company’s website.

Communication with Shareholders is achieved through the distribution of the following information:

The Annual Report is distributed to Shareholders;
The Half Yearly Report is available on the Company’s website
Regular reports and announcements are released through the ASX
The Annual General Meeting and other meetings called by the Company to obtain Shareholder approval as appropriate
Investor information released through the Company’s website

Principle 7 – Recognise and manage risk

The Board is responsible for overseeing the risk management function and ensuring that risks and opportunities are identified on a timely basis. The Directors have established a Risk Management Policy regarding the oversight and management of material business risks.

Responsibility for the control and risk management is delegated to the appropriate level of management within the Company, with the Executive Director having ultimate responsibility to the Board for monitoring the risk management and control framework. Risk analysis and evaluation occurs on an ongoing basis in the course of the activities of the Company. Management is responsible for the development of risk mitigation plans and the implementation of risk reduction strategies.

Principle 8 – Remunerate fairly and responsibly

A separate remuneration committee has not been formed. However, the Company has adopted a Nomination and Remuneration Committee Charter. The role of the remuneration committee is carried out by the full Board in accordance with the Nomination and Remuneration Committee charter. The charter details how the Board fulfils its duties in regards to the Company’s remuneration plans, policies and practices, including the compensation of non-executive directors, executive directors and management. The Board considers that at this stage, no efficiencies or other benefits would be gained by establishing a separate committee.

The Board has provided disclosure within this Annual Report in relation to Directors’ remuneration and remuneration policies in accordance with the ASX Listing Rules and the Corporations Act. There are no retirement schemes or retirement benefits other than statutory benefits for non-executive directors.

The Company has a policy to prohibit its directors and employees, who participate in an equity-based incentive plan of the Company, from entering into transactions which would have the effect of hedging or otherwise transferring to any other person the risk of any fluctuation in the value of any unvested entitlement in the Company’s securities. Directors and employees are encouraged to take sufficient professional advice in relation to their individual financial position.

Other information

Further information relating to the Company’s corporate governance practices and policies has been made publicly available on the Company’s web site at www.safetymed.com.au.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

4. Remuneration report – audited

Remuneration is referred to as compensation throughout this report.

4.1 Principles of compensation

This report outlines the remuneration arrangements in place for directors of Safety medical Products Limited in accordance with the requirements of the Corporation Act 2001 and its Regulations. For the purpose of this report, Key Management Personnel (KMP) of the Company are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly, and includes the executives in the Company receiving the highest remuneration.

Details of Key Management Personnel

Mr. Peter Christie Chairman

Mr. Simon Lill Director

Mr. Stephen Hewitt-Dutton Director

Remuneration Policy

The Board is responsible for determining and reviewing compensation arrangements for the Directors. The Board 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. The Company does not link the nature and amount of the emoluments of such officers to the Company’s financial or operational performance. The expected outcome of this remuneration structure is to retain and motivate Directors.

As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal Remuneration Committee Charter. Due to the current size of the Company and number of directors, the Board has elected not to create a separate Remuneration Committee but has instead decided to undertake the function of the Committee as a full Board under the guidance of the formal charter.

The rewards for Directors’ have no set or pre-determined performance conditions or key performance indicators as part of their remuneration due to the current nature of the business operations. The Board determines appropriate levels of performance rewards as and when they consider rewards are warranted. The Company has no policy on executives and directors entering into contracts to hedge their exposure to options or shares granted as part of their remuneration package.

The ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to time by a general meeting. The latest determination was at the Annual General Meeting held on 25 November 2003 when shareholders approved an aggregate remuneration of not more than $300,000 per year.

The table below shows the performance of the Company as measured by loss per share since 2008:

	2013	2012	2011	2010	2009
Net profit/(loss) after tax	(938,813)	(423,674)	$1,367,566	($4,488,342)	($3,874,198)
Basic EPS	(0.1¢)	(0.1¢)	0.7¢	(4.9¢)	(4.2¢)
Share price at year end	$0.02	$0.01	$0.02	$0.04	$0.04
Dividends paid	Nil	Nil	Nil	Nil	Nil

Details of Remuneration

Details of the nature and amount of each element of the emolument of each Director and Executive of the Company, including all key management personnels as required by the Corporations Act 2001, for the financial year are below in note 4.4.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

4. Remuneration report – audited

4.1 Principles of compensation (continued)

Key management personnel and other executives

The overall level of key management personnel’s compensation takes into account the performance of the Company over a number of years and includes both financial and non-financial measures of performance. In the period since the Company listed on ASX it has been in the development and evaluation phase of its operations, as such the directors consider that comparing compensation directly with profitability is not warranted during this stage.

Loans to Directors and Executives

There were no loans to directors and executives during the financial year ending 30 June 2013.

4.2 Analysis of bonuses included in remuneration

There were no short term cash bonuses paid during the reporting period or the prior reporting period.

4.3 Options over equity instruments granted as compensation

There were no options over ordinary shares in the Company granted as compensation to key management personnel during the reporting period or the prior reporting period. No options were granted since the end of the financial year.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

4. Remuneration report – audited (continued)

4.4 Directors’ and executive officers’ remuneration

Details of the nature and amount of each major element of the remuneration for the year ended 30 June 2013 (and the previous period) of each director of the Company receiving the highest remuneration and other key management personnel are:

2013 Directors	Short-term Post employment Superannuation benefits Share-based payments Salary & fees STI Cash bonus Total Options Shares $ $ $ $ $ $	Short-term Post employment Superannuation benefits Share-based payments Salary & fees STI Cash bonus Total Options Shares $ $ $ $ $ $	Short-term Post employment Superannuation benefits Share-based payments Salary & fees STI Cash bonus Total Options Shares $ $ $ $ $ $	Short-term Post employment Superannuation benefits Share-based payments Salary & fees STI Cash bonus Total Options Shares $ $ $ $ $ $	Share-based payments	Share-based payments	Total Proportion of remuneration performance related Value of options and shares as proportion of remuneration $ % %	Total Proportion of remuneration performance related Value of options and shares as proportion of remuneration $ % %	Total Proportion of remuneration performance related Value of options and shares as proportion of remuneration $ % %
Non-executive directors
Mr P Christie (Chairman)	40,000	-	40,000	-	-	-	40,000	-	-
Mr S Lill	36,000 - 36,000 - - -						36,000 - -
MrSHewitt-Dutton	36,000	-	36,000	-	-	-	36,000	-	-
Total compensation: key management personnel 2013
	112,000	-	112,000	-	-	-	112,000	-	-
2012 Directors
Non-executive directors
Mr P Christie (Chairman) Mr S Lill MrSHewitt-Dutton(Company Secretary)	40,000	-	40,000	-	-	-	40,000	-	-
	36,000	-	36,000	-	-	-	36,000	-	-
	36,000	-	36,000	-	-	-	36,000	-	-
Total compensation: key management personnel 2012
	112,000	-	112,000	-	-	-	112,000	-	-

No compensation was paid in 2012 or 2013 in respect to the following classes: Non-Monetary; Other Short-term employee benefits; Pension or other post-employment or long-term benefits; termination benefits.

This is the end of the audited remuneration report.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

5. Principal activities and review of operations

During the year, the Company disposed of all patents except in the key market of Australia and will continue to maintain the current patent associated with the Secure Touch syringe.

On 2 May 2013, the Company entered into a Share Sale and Purchase Agreement to acquire Kisara Gold Pty Ltd (“Kisara”), an Australian unlisted company, and its wholly owned Brazilian subsidiary Mineração Caiçara Ltda (“Caiçara”). The transaction provides the company access to various exploration tenements in the State of Bahia, Brazil. The tenements provide for three separate projects, Silvina Farm, Itapicuru Norte and Cristais. The latter two overlay greenstone belts and are considered prospective for gold due to the existence of gareimperos workings. Details of each of the project areas is provided below. The terms of the Agreement include issue of Ordinary and Performance shares upon the satisfaction of each milestone as detailed below:

		Ordinary Shares
Milestone	Performance Shares

Vendor Equity		120,000,000
Milestone 1- A JORC compliant Inferred Mineral Resource of 1 millionozat1.8g/tAuEq	90,000,000
Milestone 2- A JORC compliant Inferred Mineral Resource of 1.5millionozat1.7g/tAuEq	90,000,000
Milestone 3- A JORC compliant Inferred Mineral Resource of 2 million oz at 1.7g/t Au Eq	60,000,000
Total	240,000,000	120,000,000

NB – The Performance Shares noted above entitle the holder to acquire one share for every performance right held and will be subject to approval by the ASX.

Silvina Gold Project

The Silvina Gold Project, which includes the Silvina Farm lease, 6 adjoining exploration leases and a further 2 exploration lease applications, is located in the region of Rio de Contas, situated in south-central portion of the Chapada Diamantina (see Figures 1 and 2). This part of Chapada Diamantina is known for hosting several types of gold mineralisation.

The Project was acquired through a Government Tender process conducted by CBPM, Companhia Baiana de Pesquisa Mineral. CBPM is an exploration company wholly owned by the state government of Bahia, established in the 1970s to promote mineral development in the state.

Silvina is a prospective gold property located in the southern portion of the São Francisco Craton in Bahia State, Brazil and has seen limited exploration work since the 1970s. The main target at Silvina is an outcropping gold-bearing quartz vein observed to be 370m long and up to 40m wide. The vein is hosted by a diabase dyke which has intruded what appears to be a regional scale shear structure. There is evidence to suggest this structure continues for several kilometres. Caiçara has staked additional claims along the strike of this feature though claim boundaries must be field checked to determine the length of this structure contained within the Caiçara leases. Artisanal mining has won gold from alluvial and eluvial sources close to outcrop and coarse gold has been observed in chip samples from within up to 30m of underground workings on the vein.

A technical review of the project highlighted that the work done by CBPM covered only a small part of the project area. The review also highlighted the existence of the quartz veining and historic mines, noting that the area has the potential to host gold deposits. During the Due Diligence process the Company will be given fuller access to the historical geological information regarding the Silvina Gold Project and will update the market in relation to such information.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

Figure 1 - Location of the Silvina Gold Project

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Figure 2 – Tenement map

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Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

Itapicuru Norte Gold Project

The property is composed of two mostly contiguous groups of claims overlying prospective stratigraphy in the northern portion of the Rio Itapicuru Greenstone Belt (“RIGB”). The RIGB is an economically significant sequence within a paleoproterozoic aged granite-greenstone terrane and comprises part of the Serrhina Block, one of four Achaean-aged crustal segments which collectively make up the basement of the Sao Francisco Craton, north-eastern Brazil.

The belt itself represents a low-grade metamorphic sequence of mafic to intermediate volcanic and sedimentary rocks. The entire belt measures roughly 180km long, 30km wide and has been divided into three general lithostratigraphic units by previous workers, a basal mafic volcanic unit, an intermediate to felsic volcanic unit and a metasedimentary unit.

The Deixaí group of claims includes roughly 16km of strike along greenstones on the western side of the RIGB. Deixai has been subject to a greater amount of historical work than the Tarugao block underlain primarily by metamorphosed mafic volcanics and lesser proportions of metasedimentary rocks.

Gold mineralisation at Deixai is associated with shear hosted quartz veins ranging up to 1.5m wide within carbonate altered wall rocks. Host rocks in the western portion of the Deixai block are often sheared, altered meta-gabbros. Mineralisation is found on the eastern side of Deixai within sheared metasediments including meta-pelites and meta-cherts. Gold grades in old workings are reportedly highest within smoky quartz veins and in silicified wallrock. Reported mineralised widths indicated by RC drilling in the 1990s range up to 32m ( DRC16, approx 24m true width ) of shear hosted quartz veins and veinlets.

Figure 3: Norte Location

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Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

Figure 4 – CBPM Claims and Underlying Geology Deixaí block (West) and Tarugão (East)

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The setting of Itapicuru Norte may be compared to that of Yamana Gold’s Fazenda Brasileiro mine and the C1 Santa Luz mine-in-development, both located within the RIGB. Fazenda Brasileiro is located on the Weber belt, trending east-west at the RIGB’s southern end. First mined in the early 1980s, Fazenda Brasileiro Gold Mine is some 80km south-east of the garimpo workings on Deixai block. The mine has been operating for over 20 years and has produced well over 1 milion ounces of gold to date and has consistently replaced its mineral reserves as they have been mined. As at December 31[st] , 2011, the mine held 359,000 oz Au proven & probable reserves at 2.42 g/t Au and 153,000 oz Au measured & indicated resources at 1.91 g/t Au. In 2011 the mine produced 55,163 oz Au at an average cash cost of $937 per oz as an underground operation. (Source – www.yamana.com)

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

The C1 Santa Luz project is being developed on a series of gold deposits and is scheduled to begin production in early 2013. C1 Santa Luz is composed of a series of structurally controlled deposits within carbonaceous metasediments of the RIGB, associated with small porphyritic dacite intrusions. These deposits are located some 30km south of Deixai. Yamana is planning to produce +100,000oz Au each year over an initial planned mine life of 10 years and currently boasts 1,460,000 oz Au proven & probable reserves at 1.49 g/t Au and 476,000 oz Au measured & indicated resources at 2.53 g/t Au. (source www.yamana.com)

Construction of a second mine within the RIGB reinforces the belt’s mineral potential. Yamana continues to drill aggressively in-mine and near-mine; in 2011 the company completed over 38,000m in diamond drilling at Fazenda Brasileiro, resulting in an increase of the mine’s mineral reserves by 104%.

Safety Medical and Minerãçao Caiçara are currently finalising plans for an exploration programme which will include airborne magnetic and EM survey and surface reconnaissance trenching and soil sampling. A first pass diamond drill programme totalling 2,500m in 16 holes has been programmed for completion during the first phase of work in order to test four of the most promising prospects while reconnaissance fieldwork and target generation activities are underway.

There are numerous active and historically worked garimpos at Norte. It has been lightly explored since 1986 by Companhia Baiana de Pesquisa Mineral (CBPM), then Barrick Mining in Brazil Ltda and subsequently Marubeni Brazil S.A. The combined work of these companies consists of soil sampling, trenching and limited drilling, with the vast majority of the work to date focussed on the Deixai Block.

A list of the Project Claims is in Appendix One to this Announcement.

Figure 5: Norte tenements on the Rio Itapicuru Greenstone Belt

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Notes to Figure 3:

The Norte award to Caiçara is limited to the Deixai and Taurago blocks as identified in blue circles and arrowed. There is a series of tenements identified in yellow to the west of Deixai and Taurago that are owned and controlled by CBPM but are not part of the Norte award.
Caiçara have also pegged ground to the north of Deixai and Taurago on the RIGB. These tenements will ultimately form part of the tenement package controlled by Safety Medical once they have been granted.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

Cristais Project

The Cristais property is located approximately 430km west of Salvador in the State of Bahia, 35km northwest of the regional centre of Paramirim. The property is easily accessed by sealed roads to the claim boundaries and then by well-formed dirt tracks.

Figure 1: Cristais Location

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Cristais property covers roughly 9,840 hectares in fifteen mostly contiguous claim blocks all owned by CBPM.

The property is composed of fifteen mineral exploration claims overlying prospective stratigraphy within the “Cristais” (Crystals) unit, a geological unit within the Archaean aged Boquira complex. This complex occurs as a series of greenstone lenses within high-grade metamorphic rocks of the Paleoproterozoic Paramirim mobile belt located in central São Francisco craton, Bahia.

Rocks within the Cristais unit represent a greenschist-amphibolite facies metamorphosed volcanosedimentary sequence demonstrating considerable hydrothermal alteration, often in the form of tourmaline alteration. The greenstone sequence is elongate, north-south trending and bounded by sheared contacts with high grade metamorphic rocks.

Historical exploration on the belt was undertaken in the early 1980s. Many of the data have been lost although reports compiled by CBPM indicate previous explorers completed a programme of bulldozer and hand trenching, soil sampling and geological mapping as well as completion of diamond drilling. The drilling in the vicinity of the intensive bulldozer trenching still visible today, reportedly returned anomalous gold values from silicified sheared greenstones.

CBPM compilation work to date has identified three multi-element base metal soil anomalies in the northern portion of the property.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

Three Rivers – Western Australia

During the prior year, the Company negotiated and finalised an option agreement to acquire tenements in the Three Rivers Area of north Western Australia from Brutus Constructions Pty Ltd. The option to acquire the project was allowed to lapse on 31st January 2013 as the Company did not wish to proceed with the acquisition.

6. Operating and financial review

The Statement of Profit or Loss and Other Comprehensive Income shows a net loss attributable to members of $938,813 compared with a loss of $423,674 for the previous period.

The Statement of Financial Position shows a decrease in net assets from $1,407,326 to net assets of $468,513.

Refer to table in Note 4 of the Directors’ report for shareholder returns

7. Dividends

No dividends have been paid or declared by the Company to members since the end of the previous financial year.

8. Events subsequent to reporting date

On 11[th] September 2013, the Company had completed a capital raising of $100,000 at 0.2 cents per share to provide funds to assist the Company with its progress toward finalising the acquisition of Kisara Gold Pty Ltd.

There are no other subsequent events.

9. Likely developments

Other than disclosed elsewhere in this report, likely development of the operations of the Company and the expected results of those operations have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.

10. Directors’ interest

The relevant interest of each director in the shares and options over such instruments issued by the Company as notified by the directors to the ASX in accordance with section 205G(1) of the Corporations Act 2001 and the ASX Listing Rules, at the date of this report is as follows:

	Ordinary shares	Options over ordinary	Convertible Notes
		shares	over ordinary shares
Mr Peter Christie	5,500,000	-	-
Mr Stephen Hewitt-Dutton	2,000,000	-	-
MrSimon Lill	3,000,000	-	-

11. Indemnification of officers

The Company has agreed subject to and so far as may be permitted by the Corporations Act 2001 to indemnify each past, current and future director and officers against all liabilities that may arise from their position as directors and officers of the Company or any wholly-owned subsidiary of the Company. The agreement stipulates that the Company will meet the full amount of any such liabilities, including costs and expenses. No indemnification has been paid with respect to the Company’s auditors.

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

12. Lead auditor’s independence declaration

The lead auditor’s independence declaration is set out on page 46 and forms part of the directors’ report for the financial year ended 30 June 2013.

13. Proceedings on behalf of the Company

As at the date of this report, there are no leave applications or proceedings brought on behalf of the Company under section 237 of the Corporations Act 2001 .

14. Auditor and Non-Audit Services

Bentleys Audit & Corporate (WA) Pty Ltd has been appointed by The Directors.

Details of the amounts paid to the auditor of the Company, Bentleys, and its related practices for audit and non-audit services provided during the year are set out in Note 8 of the Notes to the financial statements.

Dated at Perth this 27[th] day of September 2013.

Signed in accordance with a resolution of the directors:

==> picture [82 x 70] intentionally omitted <==

Simon Lill Director

Safety Medical Products Limited Financial Statements For the year ended 30 June 2013

Contents of the Financial Statements	Contents of the Financial Statements	Page
	Statement of profit or loss and other comprehensive income	20
	Statement of financial position	21
	Statement of changes in equity	22
	Statement of cash flows	23
NOTES TO THE FINANCIAL STATEMENTS
Note 1	Reporting entity	24
Note 2	Basis of preparation	24
Note 3	Significant accounting policies	24
Note 4	Determination of fair values	25
Note 5	Segment reporting	32
Note 6	Other income	34
Note 7	Financial income and expense	34
Note 8	Auditors’ remuneration	34
Note 9	Trade and other receivables	34
Note 10	Deferred acquisition costs	34
Note 11	Trade and other payables	34
Note 12	Loans and borrowings	34
Note 13	Income tax expense	35
Note 14	Earnings per share	36
Note 15	Share capital	37
Note 16	Dividends	37
Note 17	Cash and cash equivalents	37
Note 18	Cash flow information	38
Note 19	Financial risk management	38
Note 20	Key management personnel	40
Note 21	Contingent liabilities	41
Note 22	Events subsequent to reporting date	41
Note 23	Directors’ declaration	42
	Independent auditor’s report to the members of Safety Medical Products Limited	43
	Lead auditor’s independence declaration	46
	Additional ASX information	47
	Offices and officers	49

Safety Medical Products Limited Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2013

Note	2013 $ 2012 $
Revenue Cost of sales Gross profit Other income 6 Business development, marketing & intellectual property expenses Accounting and audit fees Directors’ and company secretarial fees Legal fees Consultancy and corporate advisors Administrative expenses Exploration expenses Results from operating activities Financial income 7 Financial expense 7 Profit/(loss) before tax Income tax (expense)/benefit 13 Profit/(loss) after tax from continuing operations Profit/(loss) from discontinued operations Profit/(loss) for the year Other comprehensive income Total comprehensive loss for the year Earnings per share Basic earnings per share (cents) 14	- - - -
	- - 2,492 - (15,522) (11,986) (62,537) (67,967) (160,000) (160,000) (82,325) (11,883) (223,379) (168,718) (53,707) (75,045) (356,836) -
	(951,814) (495,599) 13,448 72,454 (447) (529)
	(938,813) (423,674) - -
	(938,813) (423,674) - -
	(938,813) (423,674) - -
	(938,813) (423,674)
	(0.2) (0.1)

The statement of profit or loss and other comprehensive income should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Statement of Financial Position As at 30 June 2013

Note	2013 $ 2012 $
Assets Cash and cash equivalents 17 Trade and other receivables 9 Total current assets Non-current assets Deferred acquisition cost 10 Total non-current assets Total assets 5 Liabilities Trade and other payables 11 Loans and borrowings 12 Total current liabilities Total liabilities 5 Net assets / (deficiency) Equity Issued capital 15 Reserves Accumulated losses Total equity	26,606 999,423 42,900 155,984
	69,506 1,155,407
	619,400 330,000
	619,400 330,000
	688,906 1,485,407
	195,393 78,081 25,000 -
	220,393 78,081
	220,393 78,081
	468,513 1,407,326
	2,779,628 2,779,628 - - (2,311,115) (1,372,302)
	468,513 1,407,326

The statement of financial position should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Statement of Changes in Equity For the financial year ended 30 June 2013

Note 2013	Note 2013	Note 2013
Balance at 1 July 2012 Loss for the year Total comprehensive income for the year Transactions with owners, in their capacity as owners, Shares Issued Transaction costs Closing balance at 30 June 2013 Amounts are stated net of tax 2012	2,779,628 (1,372,302) - (938,813)
	- (938,813)
	and other transfers
	- - - -
	2,779,628 (2,311,115)

Balance at 1 July 2011 2,779,628 (948,628) Loss for the year - (423,674) Total comprehensive income for the year - (423,674) Transactions with owners, in their capacity as owners, and other transfers Shares Issued - - Transaction costs - - Closing balance at 30 June 2012 2,779,628 (1,372,302) Amounts are stated net of tax	2,779,628 (948,628) - (423,674)	1,831,000 (423,674)
	- (423,674)	(423,674)

	- - - -	- -
	2,779,628 (1,372,302)	1,407,326

The statement of changes in equity should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Statement of Cash Flows For the ear ended 30 June 2013 y

Note	2013 $ 2012 $
Cash flows from operating activities Cash paid to suppliers and employees Interest received Interest paid Net cash used in operating activities 18 Cash flows from investing activities Deferred acquisition costs Net cash from investing activities Cash flows from financing activities Proceeds from borrowings Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June	(993,711) (569,377) 13,447 72,454 (447) (529)
	(980,711) (497,452)
	(17,106) (50,000)
	(17,106) (50,000)
	25,000 -
	25,000 -
	(972,817) (547,452) 999,423 1,546,875
	26,606 999,423

The statement of cash flows should be read in conjunction with the notes to the financial statements.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

1 Reporting entity

Safety Medical Products Limited (the "Company") is a company domiciled in Australia. The financial statements of the Company for the financial year ended 30 June 2013 relates to Safety Medical Products Limited as a single entity following the disposal of all subsidiaries during the previous financial year. The Company is involved in the research and development of medical syringe technology and mineral exploration.

2 Going concern

The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business. The entity incurred an operating loss of $938,813 for the year ended 30 June 2013 (2012: $423,674) and a net cash outflow from operating activities amounting to $980,711 (2012: $497,452).

The ability of the company to continue as a going concern is principally dependent upon the ability of the Company to secure funds by raising capital from equity markets and managing cash flow in line with available funds. These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Company to continue as a going concern.

The Directors have prepared a cash flow forecast which indicates that the company will have sufficient cash flow to meet all commitments and working capital requirements for the 12 months period from the date of signing this financial report. Subsequent to year end the Company raised $100,000 from the issue of 50,000,000 shares at $0.002.

Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the directors are confident of the Company’s ability to raise additional funds as and when they are required.

Should the Company will be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Company be unable to continue as a going concern and meet its debts as and when they fall due.

3 Basis of preparation

(a) Statement of Compliance

The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 . The financial report of the Company also complies with the IFRSs and interpretations adopted by the International Accounting Standards Board.

The financial report was authorised for issue by the directors on 27[th] September 2013.

(b) Basis of measurement

The financial report is prepared on the historical cost basis.

(c) Functional and presentation currency

The financial report is presented in Australian dollars which is the Company’s functional currency and the functional currency of all subsidiaries.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

3 Basis of preparation (continued)

(d) Critical accounting judgements, estimates and assumptions

The preparation of financial statements requires management to make judgements, estimates and assumptions that effect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes:

Environmental Issues

Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation, and the directors understanding thereof. At the current stage of the company’s development and its current environmental impact the directors believe such treatment is reasonable and appropriate.

Taxation

Balances disclosed in the financial statements and the notes thereto, related to taxation, are based on the best estimates of directors. These estimates take into account both the financial performance and position of the Company as they pertain to current income taxation legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors’ best estimate, pending an assessment by the Australian Taxation Office.

4 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in the financial report and have been applied consistently by the Company.

(a) Financial instruments
Recognition and Initial Measurement

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transaction costs where the instrument is not classified as at fair value through profit and loss. Transactions costs related to instruments classified as at fair value through profit and loss are expensed to profit or loss immediately. Financial instruments are classified and measured as set out below.

Derecognition

Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits, associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

Classification and subsequent measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued)

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense item in profit or loss.

The Company does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of Accounting Standards specifically applicable to financial instruments.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, where they are expected to mature within 12 months after the end of the reporting period.

(i) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Held-to-maturity investments are included in non-current assets where they are expected to mature within 12 months after the end of the reporting period. All other investments are classified as current assets.

(iii) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Derecognition

Financial liabilities

Other financial liabilities, including borrowings and trade and other payables are intiailly measured at fair value, net of transaction costs.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued) Financial liabilities

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financisal liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

(b) Leases

Leases in terms of which the Company assumes substantially all the risks and benefits of ownership are classified as finance leases.

Other leases are operating leases and are not recognised on the Company’s balance sheet. Payments made under operating leases are recognised in the statement of profit or loss and other comprehensive income on a straight-line basis over the term of the lease. Lease incentives received are recognised in the statement of profit or loss and other comprehensive income as an integral part of the total lease expense and spread over the lease term.

(c) Impairment

(i) Financial assets

A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flow of that asset.An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in Company’s that share similar credit risk characteristics. All impairment losses are recognised in the statement of profit or loss and other comprehensive income. Any cumulative losses in respect of an available-for-sale financial asset recognised previously in equity are transferred to the statement of profit or loss and other comprehensive income.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost, the reversal is recognised in the statement of profit or loss and other comprehensive income. For available-for-sale financial asset that are equity securities, the reversal is recognised directly in equity.

(ii) Non-financial assets

The carrying amounts of the Company’s assets, other than inventories (see accounting policy g), and deferred tax assets (see accounting policy m), are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill assets that have indefinite lives, recoverable amount is estimated at each reporting date.

An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets or groups. Impairment losses are recognised in the statement of profit or loss and other comprehensive income. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (group of units) and then, to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued)

(ii) Non-financial assets

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised.

(d) Provisions

A provision is recognised in the statement of financial position when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability.

(e) Finance income and expense

Finance income comprises interest revenue on funds invested. Interest revenue is recognised in the statement of profit or loss and other comprehensive income as it accrues, using the effective interest rate method. Finance expenses comprise interest expenses on borrowings. Interest expense is recognised in the statement of profit or loss and other comprehensive income as it accrues, using the effective interest rate method. For the purposes of the statement of cash flows, interest earned is recognised in investing activities and interest paid is recognised in operating activities.

(f)

Income tax

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the statement of profit or loss and other comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, nor differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend.

(g) Goods and Services Tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued)

(h) Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding of the effects of all dilutive potential ordinary shares, which comprise share options.

(i) Segment reporting

A segment is a distinguishable component of the Company that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.

(j) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are reported within short-term borrowings in current liabilities in the statement of financial position.

(k) Exploration and Development Expenditure

Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only capitalised to the extent that they are expected to be recovered 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.

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

Costs of site restoration are provided over the life of the project 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 local laws and regulations and clauses of the 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.

Deferred Acquisition Cost

Deferred acquisition costs relate to costs involved in evaluating the potential assets. The Company capitalised these costs until a decision is made on whether the transaction will proceed. If the Company does not proceed with the acquisition, at that point costs are written off.

During the prior years, the Company paid consideration to acquire tenements in the Three Rivers region of north Western Australia. The payments were considered as deferred acquisition costs as it were costs involved with evaluating the potential of the asset. However, the Company did not wish to proceed with the acquisition and at that point, the costs were written off.

During the prior year and current year, the Company paid considerations to Kisara Gold Pty Ltd for the acquisition of its wholly owned Brazilian subsidiary Mineração Caiçara Ltda. The Company is still in the process of finalising the acquisition and thus, the costs incurred have been capitalised and recognised as deferred acquisition costs.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued)

(l) Comparatives

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Where the Company has retrospectively applied an accounting policy, made a retrospective restatement of items in the financial statements or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.

(m) Issued Capital

Ordinary shares

Incremental costs directly attributable to issue of ordinary shares and share options are recognised as a deduction from equity, net of any related income tax benefit.

(n) New Accounting Standards for Application in Future Periods

At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

Standard/Interpretation	Effective for annual reporting periods beginning on or after	Expected to be initially applied in the financial year ending	Directors’ assessment of potential effect of adoption
AASB 9 ‘Financial Instruments’, and the relevant amending standards	1 January 2015	30 June 2016	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 10 ‘Consolidated Financial Statements’ and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 11 ‘Joint Arrangements’ and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 12 ‘Disclosure of Interests in Other Entities’ and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 127 ‘Separate Financial Statements’ (2011) and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued)

(n) New Accounting Standards for Application in Future Periods (continued)

Standard/Interpretation	Effective for annual reporting periods beginning on or after	Expected to be initially applied in the financial year ending	Directors’ assessment of potential effect of adoption
AASB 128 ‘Investments in Associates and Joint Ventures’ (2011) and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and JointArrangements standards’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 13 ‘Fair Value Measurement’ and AASB 2011-8 ‘Amendments to Australian Accounting Standards arising from AASB 13’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 119 ‘Employee Benefits’ (2011) and AASB 2011-10 ‘Amendments to Australian Accounting Standards arising from AASB 119 (2011)’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 2011-4 ‘Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements’	1 July 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 2012-2 ‘Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’	1 January 2014	30 June 2015	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.
AASB 2012-5 ‘Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

4 Significant accounting policies (continued)

(n) New Accounting Standards for Application in Future Periods (continued)

Standard/Interpretation	Effective for annual reporting periods beginning on or after	Expected to be initially applied in the financial year ending	Directors’ assessment of potential effect of adoption
AASB 2012-10 ‘Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments’	1 January 2013	30 June 2014	The Company does not anticipate a material effect from the adoption of this Australian Accounting Standard.

5 Segment reporting

Identification of reportable segments

Segment information is presented in respect of the Company’s business segments. Business segments are based on the Company’s management and internal reporting structure.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Inter-segment pricing is determined on an arm’s length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

Types of products and services by segment

Medical technology Development, production and commercialisation of a range of medical products, focusing principally on the SecureTouch™ single use manual retractable safety syringe.

Project evaluation Assessment of potential mining tenement acquisitions.

Geographical segments

The Company operates in only one geographical segment, Australia. As such, information is not presented on the basis of geographical segments.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

5 Segment reporting (continued)

	Medical Technology Project Evaluation Eliminations	Medical Technology Project Evaluation Eliminations	Medical Technology Project Evaluation Eliminations	Company	Company	Company
Business segments	2013 $ 2012 $ 2013 $ 2012 $ 2013 $ 2012 $			2013 $ 2012 $
External revenues Inter-segment revenues Total segment revenue Segment result Unallocated expenses Results from operating activities	2,492 - - - - - - -	-	- -		2,492	- -
		-			-
	2,492 - - -	-	-		2,492	-
	(554,539) (471,881) (400,213) (23,718) - - - -	-	- -		(954,751)	(495,599) -
		-			-
	(552,050) (471,881) (400,213) (23,718)	-	-		(952,260)	(495,599)
Net financing revenue /(costs) Impairment Loss/Assets written off Gain on deconsolidation of subsidiaries Profit/(Loss) for the year Profit/(Loss) for the year
	13,447 71,925 - - - - - - - - - -	-	- - -		13,447	71,925 - -
		-			-
		-			-
	(538,600) (399,956) (400,213) (23,718)	-	-		938,813	(423,674)
					938,813	(423,674)

	Medical Technology Project Evaluation	Medical Technology Project Evaluation	Medical Technology Project Evaluation	Medical Technology Project Evaluation	Eliminations	Eliminations	Total	Total
Business segments	2013 $ 2012 $ 2013 $ 2012 $				2013 $ 2012 $		2013 $ 2012 $
Segment assets Unallocated assets	42,996	1,115,814 39,594	619,400	330,000 -	-	- - - -	662,396	1,445,814 39,594
	26,510		-		-		26,510
Total assets Segment liabilities Unallocated liabilities Total liabilities Capital expenditure Depreciation
	69,506	1,155,408	619,400	330,000	-	- -	688,906	1,485,408
		78,081 -		- -		- - - - -		78,081 -
	195,393		-		-		195,393
	25,000		-		-		25,000

	220,393	78,081	-	-	-	- -	220,393	78,081
	- - - -		619,400 330,000 - -		-- - -- -		619,400 330,000 - -
	-		-		-		-

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

Note 6 Other income Miscellaneous refunds Total other income 7 Financial income and expense Interest revenue on bank deposits Financial income Interest expense on financial liabilities measured at amortised cost Net Financial income from continuing operations 8 Auditors’ remuneration Bentleys Audit & Corporate (WA) Pty Ltd Audit and review of the financial reports Taxation services 9 Trade and other receivables *Current* Trade receivables Other receivables 10 Deferred acquisition costs Deferred acquisitions costs – Three Rivers Deferred acquisitions costs – Kisara	2013 $ 2012 $
	2,492 -
	2,492 -
	13,448 72,454
	13,448 72,454 (447) (529)
	13,001 71,925
	31,400 29,159 5,000 3,200
	36,400 32,359
	26,510 38,015 16,390 117,969
	42,900 155,984
	- 330,000 619,400 -
	619,400 330,000

As the Company did not wish to proceed with the acquisition of tenement in the Three Rivers area of Western Australia, the costs previously capitalised, had been written off in the year.

During the year, the Company advanced funds to Kisara Gold Pty Ltd (“Kisara”) and has been treated as deferred acquisition costs. The potential acquisition of Kisara is contingent upon the completion of the Share Sale and Purchase Agreement of Kisara which is ultimately tied into the ability of the Company to complete a capital raising to facilitate the re-compliance with Chapters 1 and 2 of the ASX Listing Rules. There is material uncertainty in relation to the ability of the Company to raise the required capital. As a consequence there is also material uncertainty surrounding the carrying amount of these deferred acquisition costs.

11 Trade and other payables Trade payables and accrued expenses	195,393 78,081
	195,393 78,081

12 Loans and borrowings

As at 30 June 2013, $25,000 is payable to IML Holdings Pty Ltd, repayable within 3 months. This is an interest free loan.

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

Note 13 Income tax expense (a)Income tax expense Current tax Deferred tax Deferred income tax expense included in income tax expense comprises: - (Increase) in deferred tax assets - Increase in deferred tax liabilities (b)Reconciliation of income tax expense to prima facie tax payable The prima facie tax payable on profit from ordinary activities before income tax is reconciled to the income tax expense as follows: Prima facie tax on operating profit at 30% Add / (Less) Tax effect of: Entertainment Fines & penalties Impairment expense Other adjustments Prior year adjustment Deferred tax asset not brought to account Income tax attributable to operating loss The applicable weighted average effective tax rates are as follows: Balance of franking account at year end (c)Deferred tax assets Tax Losses Others Set-off deferred tax liabilities Net deferred tax assets Less deferred tax assets not recognised Net tax assets	2013 $ 2012 $
	- - - -
	- -
	- - - -
	- -
	(281,644) (127,103) - - 15,522 - - - (9,866) 1,609 - 753,144 275,988 (627,650)
	- -
	nil% nil% nil nil 1,626,988 1,324,853 5,400 21,602
	1,632,388 1,346,455 - -
	1,632,388 1,346,455 (1,632,388) (1,346,455)
	- -

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

13 Income tax expense (continued)

13 Income tax exense (continued)
p Note (d)Deferred tax liabilities Exploration expenditure Set-off deferred tax assets Net deferred tax liabilities (e)Tax losses Unused tax losses for which no deferred tax asset has been recognised	2013 $ 2012 $
	- -
	- - -
	- -
	5,423,296 4,416,176

Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought to account at 30 June 2013 because the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if: i. the company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss and exploration expenditure to be realised;

ii. the company continues to comply with conditions for deductibility imposed by law; and

iii. no changes in tax legislation adversely affect the company in realising the benefit from the deductions for the loss and exploration expenditure.

14 Earnings per share

Reconciliation of earnings to profit or loss: Earnings used to calculated basis EPS Profit/(loss) attributable to equity holders Weighted average number of shares Ordinary shares on issue at 1 July 15 Effect of shares issued Weighted average number of ordinary shares at 30 June	(938,813) (423,674)
	No. No. 396,455,466 396,455,466 - -
	396,455,466 396,455,466

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

15 Share capital

Issued and paid-up capital

396,455,466 (2012: 396,455,466) ordinary shares fully paid, net of capital raising cost

raising cost Ordinary shares Balance at 30 June 2012: No share transactions Balance at 30 June 2013:	2,779,628 2,779,628
	No. $ 396,455,466 14,084,763
	- -
	396,455,466 14,084,763

Terms and conditions

Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings. Share have no par value.

In the event of winding up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds of liquidation.

No dividends were paid or proposed during the current or prior financial years.

Capital Management

Safety Medical Products’ working capital, being current assets less current liabilities, has decreased from a surplus of $1,077,326 in 2012 to a surplus of $150,887 in 2013, as during the year, the Company did not proceed with acquiring the Three River tenements. As a result, the expenditure was written off. There are no externally imposed capital requirements.

16 Dividends

No dividends were paid or proposed in the current or prior financial years.

Note 17 Cash and cash equivalents Bank balances	2013 $ 2012 $
	26,606 999,423
	26,606 999,423

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

Note 18 Cash flow information (a) Reconciliation of cash flows from operating activities Profit / (loss) for the year Non-cash flows in profit: Interest Income Assets written off Operating profit before changes in working capital and provisions Change in assets and liabilities, net of the effects from disposal of businesses: (Increase)/decrease in trade and other receivables (Increase)/decrease in tax assets and deferred tax assets Increase/(decrease) in trade and other payables Net cash from operating activities	2013 $ 2012 $
	(938,813) (423,674) - (72,454) 347,106 -
	(591,707) (496,128) (506,317) (114,972) - - 117,313 41,194
	(389,004) (73,778)
	(980,711) (569,906)

19 Financial risk management

Exposure to credit, interest rate and currency risks arises in the normal course of the Company’s business.

(a) Foreign currency risk

The Company is not currently exposed to foreign currency risk.

(b) Credit risk exposures

The Company is not currently exposed to credit risk.

At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Credit risk related to balances with banks and other financial institutions is managed by the Board in accordance with approved board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at least AA-. The following table provides information regarding the credit risk relating to cash and money market securities based on Standard & Poor’s counterparty credit ratings.

Note Cash and cash equivalents: – AA rated 18	Company 2013 2012 $ $ 26,606 999,423
	26,606 999,423

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

19 Financial risk management (continued)

(c) Net fair values of financial assets and liabilities Valuation approach

carrying amounts and net fair values of financial assets and liabilities as at the reporting date are as follows:

Financial assets Cash assets Trade and Other Receivables Total financial assets Financial liabilities Trade and Other Payables Loans and borrowings Total financial liabilities	2013 2012 Carrying amount $ Net fair value $ Carrying amount $ Net fair value $	2013 2012 Carrying amount $ Net fair value $ Carrying amount $ Net fair value $
	26,606 26,606 999,423 43,997 43,997 155,984	999,423 155,984
	70,603 70,603 1,155,407	1,155,407
	195,393 195,393 78,081 25,000 25,000 -	78,081 -
	220,393 220,393 78,081	78,081

(d) Interest rate risk

30 June 2013

The Company’s exposure to interest rate risk and the effective interest rate for classes of financial assets and financial liabilities is set out below:

Financial assets -Within one year Cash and cash equivalents Trade and Other Receivables Total financial assets Weighted average interest rate Financial liabilities -Within one year Trade and Other Payables Loans and borrowings Total financial liabilities	Floating interest rate $ Non- interest bearing $ 2013 total $ Floating interest rate $ Non- interest bearing $	2012 total $
	26,606 - 26,606 999,423 - - 42,900 42,900 - 155,984	999,423 155,984
	26,606 42,900 69,506 999,423 155,984	1,155,407
	3.00% 3.63% - 195,393 195,393 - 78,081 - 25,000 25,000 - -	78,081 -
	- 220,393 220,393 - 78,081	78,081

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

19 Financial risk management (continued)

(d) Interest rate sensitivity analysis

A sensitivity analysis has been determined based on the exposure to interest rates at reporting date with the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents the management's assessment of the possible change in interest rate. These sensitivities assume that the movement in a particular variable is independent of other variables.

	Profit	Equity
Year ended 30 June 2013	$	$
+ 0.5% in interest rates	133	133
-0.5% in interest rates	(133)	(133)
	Profit	Equity
Year ended 30 June 2012	$	$
+ 0.5% in interest rates	4,997	4,997
-0.5% in interest rates	(4,997)	(4,997)

(e) Liquidity risk

Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Company manages this risk through the following mechanisms:

preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities; and
only investing surplus cash with major financial institutions;

The Board will assess the requirements of managing liquidity risk periodically and make amendments to the risk management mechanisms as are appropriate for the Company’s operations.

20 Key management personnel and Related parties

The following were key management personnel of the Company during the entire reporting period, unless otherwise indicated.

Non-executive directors

Mr Peter Christie (Chairman) from 6 October 2010

Mr Simon Lill (Director) from 6 October 2010

Mr Stephen Hewitt-Dutton (Director) from 6 October 2010

Note Key management personnel compensation The key management personnel compensation are as follows: Short-term employee benefits Post-employment benefits	2013 $ 2012 $
	112,000 112,000 - -
	112,000 112,000

No compensation was paid in respect to share-based payments, other long-term benefit, or termination benefits

At the 30 June 2013 executive remuneration paid or payable amounted to:

Mr Simon Lill $36,000 (2012: $36,000)
Mr Stephen Hewitt-Dutton $36,000 (2012: $36,000)
Mr Peter Christie $40,000 (2012: $40,000)

Safety Medical Products Limited Notes to the financial statements 30 June 2013 Annual Financial Report

20 Key management personnel and Related parties (continued)

Individual directors and executives compensation disclosures

Information regarding individual directors and executives’ compensation and some equity instruments disclosures as permitted by the Corporations Regulations 2M.3.03 and 2M.6.04 is provided in the Remuneration Report section of the Directors’ report in Section 4.

Apart from the details disclosed in this note, no director has entered into a material contract with the Company since the end of the previous financial year and there were no material contracts involving directors’ interests existing at year end.

Other key management personnel transactions

A number of key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities.

A number of these entities transacted with the Company in the reporting period. The terms and conditions of the transactions with management persons and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-director related entities on an arm’s length basis.

There are no amounts recognised during the year relating to key management personnel and their related parties.

Movement in shares

The movement during the reporting period in the number of ordinary shares of Safety Medical Products Limited held, directly, indirectly or beneficially, by each key management personnel, including their related parties is as follows:

			Received on
	Held at	Granted as	exercise of	Other net	Held at
	1July 2012	remuneration	options	changes	30 June 2013
Directors
Mr Simon Lill	3,000,000	-	-		3,000,000
Mr Stephen Hewitt-Dutton	2,000,000	-	-		2,000,000
Mr Peter Christie	5,500,000	-	-		5,500,000

			Received on
	Held at	Granted as	exercise of	Other net	Held at
	1July 2011	remuneration	options	changes	30 June 2012
Directors
Mr Simon Lill	3,000,000	-	-		3,000,000
Mr Stephen Hewitt-Dutton	2,000,000	-	-		2,000,000
Mr Peter Christie	5,500,000	-	-		5,500,000

21 Contingent Liabilities

There are no contingent liabilities as at the date of this report.

22 Events Subsequent to Reporting Date

There are no other subsequent events.

Safety Medical Products Limited 30 June 2013 Annual Financial Report

Directors Declaration

The directors of Safety Medical Products Limited (the Company) are declare that:

1) the financial statements and notes thereto are in accordance with the Corporations Act 2001, including:
a) giving a true and fair view of the financial position of the Company as at 30 June 2013 and of their performance, as represented by the results of their operations and cash flows, for the financial year ended on that date; and
b) complying with Accounting Standards in Australia; and
2) the financial report and notes thereto also complies with International Financial Reporting Standards as disclosed in note 3(a);
3) c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

In accordance with s295(a) of the Corporations Act 2001, the Chief Executive Officer and Chief Financial Officer have each declared that:

1) the financial records of the company for the financial year have been properly maintained in accordance with s286 of the Corporations Act 2001;
2) the financial statement and notes for the financial year comply with Accounting Standards; and
3) the financial statement and notes for the year give a true and fair view;

Dated at Perth this 27[th] day of September 2013

This declaration is signed in accordance with a resolution of the directors pursuant to s295(5) of the Corporations Act 2001.

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Simon Lill Director

Independent Auditor's Report

To the Members of Safety Medical Products Limited

We have audited the accompanying financial report of Safety Medical Products Limited (“the Company”), which comprises the statement of financial position as at 30 June 2013, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of accounting policies, other explanatory notes and the directors’ declaration.

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 Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 3(a), the directors also state, in accordance with Accounting Standards AASB 101: Presentation of Financial Statements , that the financial statements comply with International Financial Reporting Standards .

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.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s 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, the auditor considers internal control 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 control. 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.

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Independent Auditor’s Report To the Members of Safety Medical Products Limited (Continued)

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Independence

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

Auditor's Opinion

In our opinion:

a. The financial report of Safety Medical Products Limited is in accordance with the Corporations Act 2001 , including:
i. giving a true and fair view of the Company’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and
ii. complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and
b. The financial report also complies with International Financial Reporting Standards as disclosed in Note 3(a).

Emphasis of Matter on Going Concern

Without qualifying our opinion, we draw attention to Note 2 in the financial report which indicates that the company incurred a net loss of $938,813 during the period ended 30 June 2013. This condition, along with other matters as set forth in Note 2, indicate the existence of a material uncertainty which may cast significant doubt about the ability of the company to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Emphasis of Matter on Carrying Value of Deferred Acquisition Costs

Without qualifying our opinion, we draw attention to Note 10 in the financial report which indicates that the carrying amount of deferred acquisition costs for Kisara Gold Pty Ltd (“Kisara”) of $619,400 does not exceed the recoverable amount of this project. The underlying assumption in supporting the carrying amount of these deferred acquisition costs is the completion of the Share Sale and Purchase Agreement of Kisara which is ultimately tied into the ability of the Company to complete a capital raising to facilitate the re-compliance with Chapters 1 and 2 of the ASX Listing Rules. Given the material uncertainty surrounding the ability of the entity to raise the required capital and/or funding, to complete the transaction, this may cast significant doubt in relation to the carrying amount of this asset.

Report on the Remuneration Report

We have audited the Remuneration Report included in directors’ report for the year ended 30 June 2013. The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Independent Auditor’s Report To the Members of Safety Medical Products Limited (Continued)

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Auditor’s Opinion

In our opinion, the Remuneration Report of Safety Medical Products Limited for the year ended 30 June 2013, complies with section 300A of the Corporations Act 2001 .

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BENTLEYS MARK DELAURENTIS CA Chartered Accountants Director

DATED at PERTH this 27[th] day of September 2013

To The Board of Directors

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As lead audit director for the audit of the financial statements of Safety Medical Products Limited for the financial year ended 30 June 2013, I declare that to the best of my knowledge and belief, there have been no contraventions of:

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the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

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any applicable code of professional conduct in relation to the audit.

Yours faithfully

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BENTLEYS MARK DELAURENTIS CA Chartered Accountants Director

DATED at PERTH this 27[th] day of September 2013

Safety Medical Products Limited 30 June 2013 Annual Financial Report ASX Additional Information

Shareholder Information

Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report is set out below. The information is as at 16 September 2013.

Shareholdings as at 16 September 2013

Substantial shareholders

There are no substantial shareholders.

Distribution of security holders

Category	Number of Holders
1 – 1,000	362
1,001 – 5,000	539
5,001 – 10,000	193
10,001 – 100,000	221
100,001 and over	242
	1,557

Unmarketable parcels

The number of shareholders holding less than a marketable parcel is 1,356 There is only one class of share and all ordinary shareholders have equal voting rights.

On-market buyback

There is no current on-market buy-back

Securities subject to escrow

The Company has no securities that are subject to escrow.

Safety Medical Products Limited 30 June 2013 Annual Financial Report ASX Additional Information

Twenty largest shareholders – Ordinary Shares

Twenty largest shareholders – Ordinary Shares
	Number of	Percentage
	ordinary	of capital
Name	shares held	held
LIVALE PTY LTD	17,600,000	3.94
ANTHONY DE NICOLA & TANYA LOUISE DE NICOLA	17,000,000	3.81
MR PAUL GREGORY BROWN & MRS JESSICA ORIWIA BROWN A/C>	12,000,000	2.69
MR IAN MICHAEL PATERSON PARKER & MRS CATRIONA SYLVIA PARKER	10,944,444	2.45
MILWAL PTY LTD	10,000,000	2.24
FOSTER WEST SECURITIES PTY LTD	10,000,000	2.24
PROFESSIONAL PAYMENT SERVICES PTY LTD	10,000,000	2.24
CODE CAPITAL PTY LTD	10,000,000	2.24
BRUTUS CONSTRUCTIONS PTY LTD	9,000,000	2.02
MR PAUL GREGORY BROWN & MRS JESSICA ORIWIA BROWN A/C>	8,500,000	1.90
IML HOLDINGS PTY LTD	8,000,000	1.79
PRAHA NOMINEES PTY LTD	6,800,000	1.52
EKUL NOMINEES PTY LTD	6,750,000	1.51
HOLDREY PTY LTD	6,000,000	1.34
MR SIMON EDWARD WRIGHT	5,980,211	1.34
MR SIMON CLARKE MONTGOMERY & MRS REBECCA FLER MONTGOMERY SUPER FUND A/C>	5,000,000	1.23
CHASTAIN CORPORATE PTY LTD	5,000,000	1.12
MAGAURITE PTY LTD	5,000,000	1.12
MR STEPHEN JOHN TANGNEY	5,000,000	1.12
MR RYAN LOW	5,000,000	1.12
TOTAL	174,074,655	38.99

Offices and Officers

Company Secretary

Miss Deborah Ho

Principal Registered Office

Safety Medical Products Limited

c/o Trident Management Services Pty Ltd Level 24

44 ST George’s Terrace Perth, WA 6000

Principal Place of Business

Safety Medical Products Limited Level 24

44 ST George’s Terrace Perth, WA 6000

Location of Share Registry

Link Market Services Limited Ground Floor, 178 St Georges Terrace Perth WA 6000 Telephone: (08) 9211 6670

Stock Exchange

The Company is listed on the Australian Securities Exchange. The Home Exchange is Perth.

Other Information

Safety Medical Products Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

AI assistant

MACH7 TECHNOLOGIES LIMITED — Annual Report 2013

65285_rns_2013-09-29_966a0ef8-43e0-4946-8218-5d6e09c9bd23.pdf

SAFETY MEDICAL PRODUCTS LIMITED

ABN 26 007 817 192

2013 ANNUAL REPORT

1. Directors

Directorships of other listed companies

2. Directors’ meetings

3. Corporate Governance Statement

Principle 1 – Lay solid foundations for management and oversight

Principle 2 – Structure the Board to add value

3. Corporate Governance Statement (continued)

Principle 2 – Structure the Board to add value (continued)

Principle 3 – Promote ethical and responsible decision making

Diversity Policy

3. Corporate Governance Statement (continued)

Principle 3 – Promote ethical and responsible decision making (continued)

Securities Trading Policy

Principle 4 – Safeguard integrity in financial reporting

Principle 5 – Make timely and balanced disclosure

3. Corporate Governance Statement (continued)

Principle 6 – Respect the rights of Shareholders

Principle 8 – Remunerate fairly and responsibly

Other information

4. Remuneration report – audited

4.1 Principles of compensation

Details of Key Management Personnel

Remuneration Policy

Details of Remuneration

4. Remuneration report – audited

4.1 Principles of compensation (continued)

Key management personnel and other executives

Loans to Directors and Executives

4.2 Analysis of bonuses included in remuneration

4.3 Options over equity instruments granted as compensation

4. Remuneration report – audited (continued)

4.4 Directors’ and executive officers’ remuneration

5. Principal activities and review of operations

Silvina Gold Project

Itapicuru Norte Gold Project

Safety Medical Products Limited Directors’ report For the year ended 30 June 2013

Cristais Project

Figure 1: Cristais Location

Three Rivers – Western Australia

6. Operating and financial review

7. Dividends

8. Events subsequent to reporting date

9. Likely developments

10. Directors’ interest

11. Indemnification of officers

12. Lead auditor’s independence declaration

13. Proceedings on behalf of the Company

14. Auditor and Non-Audit Services

Safety Medical Products Limited Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2013

1 Reporting entity

2

Going concern

3

Basis of preparation

(a) Statement of Compliance

(b) Basis of measurement

(c) Functional and presentation currency

3 Basis of preparation (continued)

(d) Critical accounting judgements, estimates and assumptions

Environmental Issues

Taxation

4 Significant accounting policies

Derecognition

Classification and subsequent measurement

4 Significant accounting policies (continued)

(i) Held-to-maturity investments

(iii) Financial liabilities

Derecognition

Financial liabilities

4 Significant accounting policies (continued) Financial liabilities

(b) Leases

(c) Impairment

(i) Financial assets

(ii) Non-financial assets

MACH7 TECHNOLOGIES LIMITED Annual Report 2013