METEORIC RESOURCES NL — Interim / Quarterly Report 2007

Mar 15, 2007

ABN 64 107 985 651

HALF-YEAR FINANCIAL REPORT

31 DECEMBER 2006

ABN 64 107 985 651

CONTENTS

HALF-YEAR FINANCIAL REPORT

Page No.

Directors' Report	3
Auditor's Independence Declaration	6
Income Statement	7
Balance Sheet	8
Statement of Changes in Equity	9
Statement of Cashflows	10
Notes to and forming part of the Financial Statements	11
Directors' Declaration	16
Independent Review Report	17

ABN 64 107 985 651

DIRECTORS REPORT

Your directors submit the financial report of the company for the half-year ended 31 December 2006.

DIRECTORS

The following persons were directors of Meteoric Resources NL ("Meteoric") during the whole of the halfyear and up to the date of this report:

Mr Peter Thomas Mr Roger Thomson Mr George Sakalidis

REVIEW OF OPERATIONS

The loss for the half-year ended 31 December 2006 was \$717,991 (2005 - \$954,590).

The company's activities during the six month period are summarised as follows:

Wilthorpe (Meteoric 90%)

Computer modeling was carried out on two areas of close-spaced drilling at the Harrods Central prospect. Two 50m x 50m test panels, termed Areas A and B, were drilled on 12.5m centres to provide information on vein geometry and gold distribution within the Harrods sheeted vein system.

Following the modeling of Areas A and B a 52-hole, 3280m RC drilling programme was completed at Harrods Central, on $25m \times 20m$ spacing over a $250m \times 200m$ area. The drilling was limited to the weathered zone, generally to a vertical depth of 50m, in order to assess the oxide potential at Harrods Central.

The drilling confirmed the presence of numerous quartz veins and stringers within the target area, often associated with broad zones of pervasive alteration. The mineralisation appears to be closed off to the west and north but looks to remain open to the east and south. Geological consultants have been engaged to model the mineralisation at various cut-offs with a view to estimating the near surface resource.

Barkly JV (Meteoric earning 70%)

A 36-hole, 2215m RAB drilling was completed to test a 600m-long geochemical anomaly outlined by Meteoric's previous sampling and to follow up a previous RAB intercept of 8m at 1.0% Cu and 0.3g/t Au from 72m at end of hole. The geochemical anomaly coincides with a gravity ridge indicating the presence of hematite ironstone or hematite alterations.

The drilling, on 100m line spacings, intersected hematite ironstone and/or hematite chlorite over the 600m strike length tested. The steep-dipping ironstone unit ranges from 10m to 50m in thickness and remains open to the east. Anomalous Cu, Au and Bi values were intersected an four drill lines over a 100m strike length with values over various 4m intervals ranging up to $0.2\%$ Cu, $1.1g/t$ Au and $0.13\%$ Bi. These anomalous values suggest that the mineralised ironstone previously intersected extends at least 100m along strike to the east.

A second anomalous Cu-Au zone was intersected at the eastern end of the ironstone horizon where two 100m-spaced lines intersected values up to 0.1% Cu, 0.25g/t Au and 189ppm Bi over various 4m intervals in or adjacent to hematite alteration. This anomalous zone was not adequately tested by the easternmost drill line and remains open in that direction and coincident with a discrete magnetic anomaly.

Meteoric confirmed its 51% interest in the Barkly JV and elected to continue to earn up to a 70% interest by expenditure of \$200,000 by November 2009.

DIRECTORS REPORT

Bullfinch (Meteoric 90%)

Preparations are in hand to carry out further RC drilling at Rutherfords Find where Meteoric previously announced drill intersections over a 250m strike length with a best intercept of 4m at 10.5g/t Au from 71m.

Jarbora Hill (Meteoric 100%)

RAB and aircore drilling carried out in the June 2006 quarter indicates an area of intense sericite alteration and quartz stringers some 30m in width and 500m in length. Some of the stringers are mineralised (best intercept 4m at 0.9g/t Au from 44m) which coupled with the observation that the drill intersections show evidence of extreme leaching, suggests potential for improved gold grades at depth.

Ularring (Meteoric 100%)

Geological reconnaissance of a 40km-long poorly exposed and under-explored greenstone belt has shown potential for gold with surface rock samples returning values up to 1.4g/t Au.

Junction Lake (Meteoric 100%)

Modeling of ground magnetic data has identified a drilling target with potential for nickel. Drilling of this target is currently being considered.

Ruby Well (Meteoric 60%)

Wide-spaced soil sampling over interpreted structured targets prospective for gold did not return significant values. Extensive transported alluvial cover indicates that surface geochemistry may not be effective in this area and reconnaissance RAB drilling is now being considered.

New Joint Venture (Meteoric earning up to $70\%$ )

Meteoric has reached agreement to earn a majority interest in three projects totaling 244sq km held 100% by Image Resources in the Eastern Goldfields of WA. Under the terms of the IV Meteoric may earn a 30% interest in granted tenements at Scorpion Well, Top Well and Mt Remarkable by expenditure of \$300,000 within two years. Meteoric may then elect to earn a further 21% interest by expenditure of \$200,000 within an additional two years. Meteoric ay make a further election to earn an additional 19% interest by expenditure of another \$200,000 within a further two years, i.e. up to a 70% interest by expenditure of \$700,000 within six years. Meteoric is required to spend a minimum of \$150,000 before having the right of withdrawal.

DIREGTORS' REPORT

Project Location

INDEPENDENCE DECLARATION BY AUDITOR

The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 6 for the half-year ended 31 December 2006.

This report has been signed in accordance with a resolution of directors. For and on behalf of the Directors

G SAKALIDIS Director 15th March 2007

ABN 64 107 985 651

AUDITOR INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF METEORIC RESOURCES NL

Auditor's Independence Declaration to the Directors of Meteoric Resources Limited

In accordance with section 307C of the Corporations Act 2001. I am pleased to provide the following declaration of independence to the directors of Meteoric Resources Limited.

As audit partner for the review of the financial statements of Meteoric Resources Limited for the period ended 31 December 2006, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the $(i)$ review: and
• $(ii)$ any applicable code of professional conduct in relation to the review.

SOMES and COOKE

K.C. Somes Partner 1304 Hay Street West Perth WA 6005

16 March 2007

INCOME STATEMENT 1999 - Andrew FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

	Notes	Half Year Ended 31 Dec 2006 (5)	Half Year Ended 31 Dec 2005 (3)
Revenue from ordinary activities		60,161	82,244
Depreciation expense		(6,848)	(821)
Exploration and tenement expenses written off		(438, 481)	(793, 758)
Other expenses from ordinary activities		(230, 823)	(234,033)
Share based payments	$\overline{2}$	(102,000)	(8,222)
Loss from ordinary activities before income tax expense		(717,991)	(954, 590)
Income tax expense relating to ordinary activities
Loss from ordinary activities after related income tax expense		(717, 991)	(954, 590)
Loss from ordinary activities after related income tax expense attributable to members of Meteoric Resources NL		(717,991)	(954, 590)
Basic loss per share (cents per share)		(1.6396)	(2.3151)
Diluted loss per share (cents per share)		(1.6396)	(2.3151)

BALANCE SHEET AS AT 31 DECEMBER 2006 AND RESIDENCE

	Notes	31 Dec 2006 $(\$)$	30 June 2006 $($ \$)
Current Assets
Cash assets		1,507,293	2,109,559
Receivables		32,950	33,774
Prepayments		8,461	1,813
Total Current Assets		1,548,704	2,145,146
Non-Current Assets
Plant and equipment		58,590	63,864
Other financial assets	3	812,748	310,090
Total Non-Current Assets		871,338	373,954
TOTAL ASSETS		2,420,042	2,519,100
Current Liabilities
Payables		88,745	127,554
Provisions		14,479
Total Current Liabilities		103,224	127,554
TOTAL LIABILITIES		103,224	127,554
NET ASSETS		2,316,818	2,391,546
Equity
Contributed equity	$\overline{4}$	6,084,712	6,083,106
Reserves		1,150,065	508,407
Accumulated losses		(4,917,959)	(4,199,967)
TOTAL EQUITY		2,316,818	2,391,546

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

	Notes	Share Capital	Available for Sale	Employee Benefit	Accumulated Losses	Total
		(5)	Financial	Reserve	(3)	(3)
			Assets	$(\mathbb{S})$
			Reserve
			Capital
			(3)
Balance at 1.7.2005		5,126,650			(2,085,566)	3,041,084
Shares issued during
the period		26,128				26,128
Share based payments		8,222				8,222
Loss for period					(954, 590)	(954, 590)
Balance at 31.12.2005		5,161,000			(3,040,156)	2,120,844
Balance at 1.7.2006		6,083,106	75,687	432,720	(4,199,967)	2,391,546
Shares issued during
the period		1,606				1,606
Share based payments				102,000		102,000
Changes in fair value
of available for sale
assets			539,658			539,658
Loss for period					(717, 992)	(717, 992)
Balance at 31.12.2006		6,084,712	615,345	534,720	(4,917,959)	2,316,818

STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

	Half Year	Half Year
	Ended	Ended
	31 Dec 2006	31 Dec 2005
	(5)	( \$)
CASH FLOWS FROM OPERATING ACTIVITIES
GST refunds received	45,907	88,132
Payments to suppliers and contractors	(197, 584)	(164, 630)
Interest and dividends received	58,871	82,244
Net cash provided by / (used in) operating activities	(92, 806)	5,746
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant and equipment	(1,574)	(756)
Payments for exploration and evaluation	(571, 441)	(914, 616)
Repayment of loan	33,204	(45, 247)
Purchase of investments	(15,000)	(163, 323)
Purchase of new prospects	(9,545)	(2,480)
Proceeds from sale of investments	53,291
Net cash provided by / (used in) investing
activities	(511,065)	(1,126,422)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from new issues of shares	1,605	26,129
Share issue expenses
Net cash provided by financing activities	1,605	26,129
Net (decrease) / increase in cash held	(602, 266)	(1,094,547)
Cash at the beginning of the financial period	2,109,559	3,145,016
Cash at the end of the financial period	1,507,293	2,050,469

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

NOTE₁ SUMMARY OF ACCOUNTING POLICIES

Basis Of Preparation

The half-year financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134 - Interim Financial Reporting, Urgent Issues Group Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

The interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2006 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

(a) Revenue

Interest revenue is recognised on a proportional basis taking into account interest rates applicable to the financial asset.

(b) Employee Entitlements

Wages and Salaries and Annual Leave - Liabilities for wages and salaries and annual leave are recognised, and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. There is no liability to Long Service Leave entitlements.

(c) Exploration and Evaluation Expenditure

All exploration and evaluation expenditure is expensed to profit and loss as incurred. The effect of this write-off is to increase the loss incurred from ordinary activities as disclosed in the Income Statement by \$438,481 and to decrease the carrying values in the Balance Sheet to \$Nil.

(d) Acquisition of Assets

The cost method is used for all acquisitions of assets regardless of whether shares or other assets are acquired. Cost is determined as the fair value of assets given up at the date of acquisition plus costs incidental to the acquisition.

Costs relating to the acquisition of new areas of interest are classified as either exploration and evaluation expenditure or mine properties based on the stage of development reached at the date of acquisition.

ABN 64 107 985 651

NOTES TO THE HNANCIAL STATEMENTS FOR THE HALL-YEAR ENDED 31 DECEMBER 2006

NOTE₁ SUMMARY OF ACCOUNTING POLICIES (Continued)

(e) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except:

• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
• receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Statement of Cash Flow on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.

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

$(f)$ Income Tax

The change for current income tax expenses is based on the profit for the year adjusted for any nonassessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

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

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

$(g)$ Cash

For the purpose of the statement of cash flows, cash includes:

• cash on hand and at call deposits with banks or financial institutions, net of bank overdrafts; and $(i)$
• (ii) investments in money market instruments with less than 30 days to maturity.

ABN 64 107 985 651

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

SUMMARY OF ACCOUNTING POLICIES (Continued) NOTE₁

(h) Impairment of Assets

At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement.

(i) Earnings Per Share

• (i) Basic Earnings Per Share Basic earnings per share is determined by dividing the profit from ordinary activities after related income tax expense by the weighted average number of ordinary shares outstanding during the financial year.
• (ii) Diluted Earnings Per Share Diluted EPS is calculated as net profit attributable to members, adiusted for:
• costs of servicing equity (other than dividends);
• the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
• other discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares.

(i) Non-current Assets

Items of plant and equipment are recorded at cost, being the fair value of consideration provided plus incidental costs. This cost is written off over its expected economic life, adjusted for any salvage value, if applicable. Estimates of remaining useful lives range between 4 and 5 years.

(k) Recoverable Amount

Non-current assets are not carried at an amount greater than their recoverable amount, and where carrying values exceed this recoverable amount, assets are written down. In determining recoverable amount the expected net cash flows have not been discounted.

$(1)$ Financial Instruments

Financial Assets: Security deposits are recognised at their fair value. Other receivables are carried at nominal amount due less any provision for doubtful debts. An estimate of doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. Sundry debtors and other receivables are non-interest bearing and have repayment terms between 30 and 90 days.

Financial Liabilities: Liabilities for trade creditors and other accruals are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Company. Trade creditors are normally settled on 30 day terms.

Available-for-sale Financial Assets: Available-for-sale financial assets include any financial assets not included in the above categories and are initially measured at cost being the fair value of the consideration and including acquisition charges associated with the investment. Unrealised gains and losses arising from changes in the fair value of the investment are taken directly to equity.

NOTES TO THE FINANCIAL STATIMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

NOTE₁ SUMMARY OF ACCOUNTING POLICIES (Continued)

(m) Contributed Equity

Ordinary share capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.

(n) Share-based Payments

Share-based compensation benefits are provided to directors as approved in general meeting by members.

No expense is recognised in respect of share options granted prior to 1 January 2005. The shares will be recognised when the options are exercised and the proceeds are received and allocated to share capital.

In respect of share options granted after 1 January 2005, the fair value is recognised as an employee benefit expense with a corresponding increase in equity. The fair value of the options are calculated at the date of grant using either Black-Scholes or Geske option pricing models and expensed directly to profit and loss. The resultant values used in the models have been adjusted, based on management's best estimates, for the effects of non-transferability, exercise restrictions and behavioural considerations. Upon the exercise of options, the balance of the share-based payments reserve relating to those options is transferred to share capital.

(o) Joint Ventures

Interest in joint venture operations are brought to account by including in the respective classifications, the share of individual assets employed, liabilities and expenses incurred and revenue from the sale of joint venture output. Interest in joint venture operations are brought to account by including assets and liabilities in their respective classifications.

(p) Comparative Figures

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

NOTE 2 SHARE BASED PAYMENTS Options issued to directors pursuant to approval granted at the Company's 2006 Annual General Meeting	Half Year Ended 31.12.2006 (3)
Expensed fully at the independent valuation obtained	102,000 102,000
NOTE 3 OTHER FINANCIAL ASSETS Available for sale assets
Balance 1 July 2006	310,090
Purchases - at cost	15,000
Sales at carrying value	(52,000)
Increase in fair value	539,658
Balance 31 December 206	812,748

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALE-YEAR ENDED 31 DECEMBER 2006

NOTE 4 CONTRIBUTED EQUITY

	Number	\$
Ordinary Fully Paid Shares
Balance 1 July 2006	43,781,701	6,083,106
Contributing shares paid during the period	8,025	1,606
Total Ordinary Fully Paid Shares Issued at 31 December 2006	43,789,726	6,084,712
Contributing Shares
Balance 1 July 2006	15,516,934
Contributing shares paid up	(8,025)
Options expired and unexercised
Total Contributing Shares Issued at 31 December 2006	15,508,909
Other Unlisted Options to acquire Contributing Shares
Issued to directors 21 November 2010, \$0.06 payable to acquire
each contributing share	2,400,000
Issued to directors 16 November 2011, \$0.06 payable to acquire
each contributing share	2,400,000
Total Options to acquire Contributing Shares at 31 December
2006	4,800,000

NOTE 5 SEGMENT INFORMATION

The Company operates only in one business, being the exploration for and development of minerals. Geographically, the company's activities are conducted mainly within Western Australia and Northern Territory.

NOTE 6 EVENTS SUBSEQUENT TO REPORTING DATE

There has been no matters or circumstances that have arisen since 31 December 2006 that has significantly affected or may significantly affect:

• (a) the Company's operations in future years; or
• (b) the results of those operations in future years; or
• $(c)$ the Company's state of affairs in future years.

NOTE 7 CONTINGENT LIABILITIES

Native Title

The Company has been notified of a number of native title claims under the Commonwealth Native Title Act 1993, covering areas in Western Australia.

The Company is not in a position to assess the likely effect, if any, of any claim on the Company.

METEORIC RESOURCES NL ACN 063 977 579

DIRECTORS DECLARATION

The directors of the company declare that:

• $\mathbf{1}$ . the accompanying financial statements and notes:
• (a) comply with Accounting Standard AASB 134 : Interim Financial Reporting and the Corporations Regulations 2001; and
• (b) give a true and fair view of the financial position of the company as at 31 December 2006 and its performance for the half-year ended on that date.
• $2.$ in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors:

Signed at Perth:

George Sakalidis Director

Dated this 15^th day of March 2007.

1304 Bay Street West Parth WA 6005 PO Box 209 West Perth, WA 6822 Tel: (08) 9428 4500 Fox: (08) 948) 5645 admin@somesandcooke.cam.au www.somesandc.coke.com.au

Independent review report to the members of METEORIC RESOURCES NL

Scope

We have reviewed the accompanying half-year financial report of Meteoric Resources NL (the Company), which comprises the condensed balance sheet as at 31 December 2006, and the condensed income statement, condensed statement of changes in equity and condensed cash flow statement for the half-year ended on that date, a statement or description of accounting policies, other selected explanatory notes and the directors' declaration.

Directors' Responsibility for the Half-Year Financial Report

The directors of the Company are responsible for the preparation and fair presentation of the half-vear financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and, maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor' of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Company's financial position as at 31 December 2006 and its performance for the half-year ended on that date: and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Company, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

Partners Kevén Somes FCA John Cooke FCA ACIS

Associates Suite Aums CA Rochelle Rose CA CEP⁸

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF METHORIC RESOURCES NL Manasan Manasa Manasa Manasa Ma

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

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of the Company on 15 March 2007, would be in the same terms if provided to the directors as at the date of this auditor's review report.

Conclusion

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

• giving a true and fair view of the Company's financial position as at 31 December 2006 $(a)$ and of its performance for the half-year ended on that date; and
• $(b)$ complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

Somes & Cooke Chartered Accountants

Kevin Clarence Somes Partner Perth

Date: 16 March 2007