METEORIC RESOURCES NL — Interim / Quarterly Report 2009

Mar 12, 2009

==> picture [412 x 119] intentionally omitted <==

NL

ABN 64 107 985 651

_____________ HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2008

---

• Page 1 -

==> picture [199 x 58] intentionally omitted <==

==> picture [95 x 8] intentionally omitted <==

----- Start of picture text -----

ABN 64 107 985 651
----- End of picture text -----

CONTENTS HALF-YEAR FINANCIAL REPORT

	Page No.
Directors’ Report	3
Auditor’s Independence Declaration	6
Condensed Income Statement	7
Condensed Balance Sheet	8
Condensed Statement of Changes in Equity	9
Condensed Statement of Cashflows	10
Notes to and forming part of the Financial Statements	11
Directors' Declaration	15
Independent Review Report	16

• Page 2 -

DIRECTORS’ REPORT

==> picture [199 x 58] intentionally omitted <==

Your directors submit the financial report of the Company for the half-year ended 31 December 2008.

DIRECTORS

The following persons were directors of Meteoric Resources NL (“Meteoric”) during the whole of the half-year and up to the date of this report:

Mr Peter Thomas

Mr Roger Thomson Mr George Sakalidis

REVIEW OF OPERATIONS

The net loss for the half-year ended 31 December 2008 was $225,254 (2007 – Net Profit - $77,296).

The Company’s activities during the six month period are summarised as follows, with project locations shown on this Location Map.

==> picture [386 x 211] intentionally omitted <==

==> picture [386 x 211] intentionally omitted <==

Location Map

• Page 3 -

DIRECTORS’ REPORT

==> picture [199 x 58] intentionally omitted <==

ROBINSON RANGE (Meteoric 100%)

The 50sq km Robinson Range iron project covers a folded sequence of Proterozoic iron formations situated 100km north of Meekatharra in the mid west region of Western Australia. Historical oregrade sampling results indicate significant potential for iron ore deposits on these tenements.

Meteoric lodged a revised and updated heritage agreement with the Jidi Jidi Aboriginal Corporation during the period. The heritage agreement forms part of the Indigenous Land Use Agreement affecting this area and paves the way for gaining access to these prospective granted tenements.

WILTHORPE (Meteoric 90%)

Meteoric is re-examining the economics of this 60,000oz gold project (Harrods Central and Harrods South indicated and inferred resources) in view of the recent significant increases in the gold price.

SCORPION WELL (Meteoric 30%, earning up to 70%)

Geological mapping and sampling was carried out on a recently granted exploration licence contiguous with Meteoric’s existing tenement at Scorpion Well. The new tenement covers similar aeromagnetic features to those targeted on Meteoric’s existing tenement where a potential nickel sulphide target has been identified.

MT REMARKABLE (Meteoric 30%, earning up to 70%)

Geological mapping of a gold-in-soil anomaly identified a possible extension of the anomaly. An additional tenement has been applied for to cover this possible extension.

TOP WELL (Meteoric 30%, earning up to 70%)

A review of the whole rock chemistry of the ultramafic rocks intersected in Meteoric’s earlier drilling indicates a general increase in MgO content to the east, suggesting a possible basal contact prospective for komatiite hosted nickel sulphides in this direction. Further drilling will be required to test for the presence of the interpreted intact basal contact.

MERTONDALE (Meteoric 100%)

Geological mapping and sampling of structural targets prospective for gold mineralisation is in progress.

RUBY WELL (Meteoric previously 60%)

This joint venture with Peak Resources has been terminated and the tenement relinquished.

BARKLY (Meteoric 70%)

Meteoric reached the 70% earn in point on this copper-gold project east of Tennant Creek. Discussions with joint venture partner Emmerson Resources are in progress for Emmerson to take over management and for Meteoric to dilute its interest.

WARREGO NORTH (Meteoric 100%)

Meteoric is seeking to farm out this copper-gold project near the Warrego copper-gold mine (91,500t copper and 1.3Mozs gold) north of Tennant Creek.

The information in this report that relates to exploration results is based on information compiled by Roger Thomson BSc, ARSM, MAusIMM, who is a Member of the Australian Institute of Geoscientists. Roger Thomson is a director of Meteoric Resources NL. Roger Thomson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Roger Thomson consents to the inclusion of this information in the form and context in which it appears in this report.

• Page 4 -

DIRECTORS’ REPORT

==> picture [200 x 58] intentionally omitted <==

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 2008.

This report has been signed in accordance with a resolution of directors.

For and on behalf of the Directors

RM Thomson

Managing Director 12 March 2009

• Page 5 -

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

==> picture [95 x 110] intentionally omitted <==

Auditor’s Independence Declaration to the Directors of Meteoric Resources NL

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 NL.

As audit partner for the review of the financial statements Meteoric Resources NL for the period ended 31 December 2008, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

(ii) any applicable code of professional conduct in relation to the review.

SOMES and COOKE

==> picture [118 x 60] intentionally omitted <==

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

Date: 13 March 2009

• Page 6 -

CONDENSED INCOME STATEMENT FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

==> picture [486 x 35] intentionally omitted <==

Notes Revenue from ordinary activities Profit on sale of investments Depreciation expense Exploration and tenement expenses written off Other expenses from ordinary activities Profit/(Loss) from ordinary activities before income tax expense Income tax expense relating to ordinary activities Profit/(Loss) from ordinary activities after related income tax expense Profit/(Loss) from ordinary activities after related income tax expense attributable to members of Meteoric Resources NL Basic profit/(loss) per share (cents per share) Diluted profit/(loss) per share (cents per share) The accompanying notes form part of these financial statements.	Half Year Ended 31 Dec 2008 ($) 32,410 - (4,318) (131,865) (121,481) (225,254) - (225,254) (225,254) (0.5096) (0.5096)	Half Year Ended 31 Dec 2007 ($) 35,032 642,177 (5,177) (420,195) (174,541)
		77,296 -
		77,296
		77,296
		0.0017 0.0017

• Page 7 -

CONDENSED BALANCE SHEET AS AT 31 DECEMBER 2008

==> picture [486 x 37] intentionally omitted <==

Notes Current Assets Cash assets Receivables Prepayments Total Current Assets Non-Current Assets Plant and equipment Other financial assets 2 Total Non-Current Assets TOTAL ASSETS Current Liabilities Payables Total Current Liabilities TOTAL LIABILITIES NET ASSETS Equity Contributed equity 3 Reserves Accumulated losses TOTAL EQUITY	31 Dec 2008 ($) 800,612 54,781 8,271 863,664 38,388 18,720 57,108 920,772 29,217 29,217 29,217 891,555 6,166,549 534,720 (5,809,714) 891,555	30 June 2008 ($) 1,101,172 60,231 22,176
		1,183,579
		42,706 17,500
		60,206
		1,243,785
		126,976
		126,976
		126,976
		1,116,809
		6,166,549 534,720 (5,584,460)
		1,116,809

The accompanying notes form part of these financial statements.

• Page 8 -

CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

==> picture [486 x 35] intentionally omitted <==

	Share Capital ($)	Available for Sale Financial Assets Reserve Capital ($)	Employee Benefit Reserve ($)	Accum Losses ($)	Total ($)
Balance at **1.7.2007 **	6,166,549	792,417	534,720	(5,222,773)	2,270,913
Shares issued during the period
Share based payments
Changes in fair value ofavailable		(807,489)			(807,489)
Loss forperiod				77,296	77,296
Balance at **31.12.2007 **	6,166,549	(15,072)	534,720	(5,145,477)	1,540,720
Balance at 1.7.2008	6,166,549	-	534,720	(5,584,460)	1,116,809
Loss forperiod				(225,254)	(225,254)
Balance at 31.12.2008	6,166,549	-	534,720	(5,809,714)	891,555

The accompanying notes form part of these financial statements.

• Page 9 -

CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 - Page 10 - Half Year Ended 31 Dec 2008 ($) Half Year Ended 31 Dec 2007 ($) CASH FLOWS FROM OPERATING ACTIVITIES GST refunds received 46,053 30,321 Payments to suppliers and contractors (251,239) (202,452) Interest and dividends received 32,410 35,032 Net cash provided by / (used in) operating activities (172,776) (137,099) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment - Payments for exploration and evaluation (126,247) (434,502) Repayment of loan - Purchase of investments - Purchase of new prospects (1,537) (6,669) Proceeds from sale of investments - 793,400 Net cash provided by / (used in) investing activities (127,784) 352,229 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from new issues of shares - - Net cash provided by financing activities - - Net (decrease) / increase in cash held (300,560) 215,130 Cash at the beginning of the financial period 1,101,172 1,318,207 Cash at the end of the financial period 800,612 1,533,337 The accompanying notes form part of these financial statements.			Half Year Ended 31 Dec 2007 ($) 30,321 (202,452) 35,032 (137,099) - (434,502) - - (6,669) 793,400 352,229 - - 215,130 1,318,207 1,533,337
	CONDENSED STATEMENT OF CASH FLOWS
	FOR THE HALF-YEAR ENDED 31 DECEMBER 2008
	CASH FLOWS FROM OPERATING ACTIVITIES GST refunds received Payments to suppliers and contractors Interest and dividends received Net cash provided by / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment Payments for exploration and evaluation Repayment of loan Purchase of investments Purchase of new prospects Proceeds from sale of investments Net cash provided by / (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from new issues of shares Net cash provided by financing activities Net (decrease) / increase in cash held Cash at the beginning of the financial period Cash at the end of the financial period	Half Year Ended 31 Dec 2008 ($) 46,053 (251,239) 32,410 (172,776) (126,247) (1,537) - (127,784) - - (300,560) 1,101,172 800,612

The accompanying notes form part of these financial statements.

• Page 10 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

==> picture [486 x 35] intentionally omitted <==

NOTE 1 BASIS OF PREPARATION

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

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2008 and any public announcements made by Meteoric Resources NL during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied and are consistent with those in the June 2008 financial report.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

Reporting Basis and Conventions

The half-year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Going Concern

The interim financial report has been prepared on the going concern basis that contemplates the continuity of normal business activities and the realisation of assets and extinguishment of liabilities in the ordinary course of business. For the six months ended 31 December 2008, the Company recorded a loss of $225,254 and had a net working capital surplus of $834,447. At 31 December 2008 the Company had a net surplus of equity of $891,555.

The Company expects to be able to maintain sufficient cash reserves to meet day-to-day obligations as and when they fall due for the next 12 month period.

The Company has available to it one or more of the following sources of funding:

• Sale of listed investments;

• Sale of surplus plant and equipment;

• Sale of exploration properties or joint ventures; and

• Further issue of shares.

The Board of Directors is aware of the Company’s working capital requirements to continue its normal business activities and based on the above matters, consider the going concern basis of preparation to be appropriate for this financial report.

In the event that the above matters do not eventuate, there exists uncertainty as to whether the Company will be able to continue as a going concern and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

• Page 11 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008 - Page 12 - NOTE 2 OTHER FINANCIAL ASSETS Half Year Ended 31 Dec 2008 ($) Available for sale assets Balance 1 July 2008 17,500 Purchases – at cost - Sales at carrying value - Increase in fair value 1,220 Balance 31 December 2008 18,720 NOTE 3 CONTRIBUTED EQUITY Number $ Ordinary Fully Paid Shares Balance 1 July 2008 44,198,908 6,120,116 Total Ordinary Fully Paid Shares Issued at 31 December 2008 44,198,908 6,120,116 Contributing Shares Balance 1 July 2008 15,099,727 46,433 Total Contributing Shares Issued at 31 December 2008 15,099,727 46,433 Total Equity 6,166,549 Other Unlisted Options to acquire Contributing Shares Issued to directors, expiring 21 November 2010, $0.06 payable to acquire each contributing share 2,400,000 - Issued to directors, expiring 16 November 2011, $0.06 payable to acquire each contributing share 2,400,000 - Total Options to acquire Contributing Shares at 31 December 2008 4,800,000 - NOTE 4 TENEMENT EXPENDITURE COMMITMENTS The Company has entered into certain obligations to perform minimum exploration work on tenements held or joint ventured into. These obligations vary from time to time in accordance with contracts signed. Tenement rentals and minimum expenditure obligations which may be varied or deferred on application are expected to be met in the normal course of business. The minimum statutory expenditure requirements on the granted tenements for the next twelve months amounts to $252,250. Of this amount, $30,000 is expected to be met by a JV participant as a result of a joint venture entered into. The Company has adopted a strategy to prioritise and significantly rationalise its tenement holdings by June 2009. The tenements are located in Western Australia and Northern Territory and are subject to legislative requirements with respect to the processes for application, grant, conversion and renewal. The tenements are also subject to the payment of annual rent and the meeting of minimum annual expenditure commitments. There is no guarantee that any applications, conversions or renewals for the Company’s tenements will be granted. The inability of the Company to meet rent and expenditure requirements may adversely affect the standing of its tenements.			Half Year Ended 31 Dec 2008 ($) 17,500 - - 1,220 18,720 $ 6,120,116 6,120,116 46,433 46,433 6,166,549 - - -
	NOTES TO THE FINANCIAL STATEMENTS
	FOR THE HALF-YEAR ENDED 31 DECEMBER 2008
	NOTE 2 OTHER FINANCIAL ASSETS Available for sale assets Balance 1 July 2008 Purchases – at cost Sales at carrying value Increase in fair value Balance 31 December 2008 NOTE 3 CONTRIBUTED EQUITY Ordinary Fully Paid Shares Balance 1 July 2008 Total Ordinary Fully Paid Shares Issued at 31 December 2008 Contributing Shares Balance 1 July 2008 Total Contributing Shares Issued at 31 December 2008 Total Equity Other Unlisted Options to acquire Contributing Shares Issued to directors, expiring 21 November 2010, $0.06 payable to acquire each contributing share Issued to directors, expiring 16 November 2011, $0.06 payable to acquire each contributing share Total Options to acquire Contributing Shares at 31 December 2008	Number 44,198,908 44,198,908 15,099,727 15,099,727 2,400,000 2,400,000 4,800,000

NOTE 4 TENEMENT EXPENDITURE COMMITMENTS

The Company has entered into certain obligations to perform minimum exploration work on tenements held or joint ventured into. These obligations vary from time to time in accordance with contracts signed. Tenement rentals and minimum expenditure obligations which may be varied or deferred on application are expected to be met in the normal course of business.

The minimum statutory expenditure requirements on the granted tenements for the next twelve months amounts to $252,250. Of this amount, $30,000 is expected to be met by a JV participant as a result of a joint venture entered into. The Company has adopted a strategy to prioritise and significantly rationalise its tenement holdings by June 2009. The tenements are located in Western Australia and Northern Territory and are subject to legislative requirements with respect to the processes for application, grant, conversion and renewal. The tenements are also subject to the payment of annual rent and the meeting of minimum annual expenditure commitments. There is no guarantee that any applications, conversions or renewals for the Company’s tenements will be granted. The inability of the Company to meet rent and expenditure requirements may adversely affect the standing of its tenements.

• Page 12 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

==> picture [486 x 35] intentionally omitted <==

NOTE 5 SEGMENT INFORMATION

The Company operates one business, that 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 have been no matters or circumstances that have arisen since 31 December 2008 which have 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’s activities in Australia are subject to the Native Title Act and its interpretation.

The Native Title Act legally recognises the title rights of indigenous Australians over areas where those rights have not been lawfully extinguished. State and Commonwealth native title legislation regulates the recognition, application and protection of native title. Native title may affect the status, renewal and conversion of existing tenements and the granting of new tenements. Indigenous land use agreements, including terms of compensation, heritage survey and protection agreements or other agreement types may need to be negotiated with affected parties.

The Native Title Act prescribes procedures applicable to the grant of tenements which apply even in the case of, for instance, a granted exploration licence being “converted” to, say, a mining lease. Compensation may become payable in respect of any impact which the grant of any tenements or other activities have on native title. A tenement holder may be liable for the payment of compensation for the affect of mining and exploration activities on any native title rights and interests that exist in the area covered by a tenement. Compensation may be payable in forms other than money, including the transfer of property and the provision of goods and services.

It is not currently possible to assess whether compensation will be payable by the Company to native title holders in relation to any of the tenements but such compensation could be significant.

There may be sites and objects of significance to indigenous Australians located on the land relating to the Company’s tenements. State and Commonwealth Aboriginal heritage legislation aims to preserve and protect these sites and objects from use in a manner inconsistent with Aboriginal tradition. The Company proposes carrying out ‘clearance surveys’ if it considers this to be appropriate before conducting any exploration work that would disturb the surface of the land. The Company’s tenements may contain some such sites of significance, which would need to be avoided or cause delays. It is possible that areas containing mineralisation or an economic resource may also contain sacred sites, in which case they may remain unexploited. Access agreements will need to be negotiated with affected parties.

Native title, Aboriginal heritage or other indigenous matters are matters of substantial risk (giving rise to the threat that certain tenements may not be granted, access to certain tenements may be denied or delayed in addition to potentially significant cost exposure in respect of things such as negotiations, surveys, incentive payments and compensation to name but a few) as the legislative frame works provide torturous and frequently uncertain routes to the endeavour by both stakeholders (that is explorers/miners and indigenous peoples) to attain certainty.

• Page 13 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

==> picture [486 x 35] intentionally omitted <==

It is not possible to quantify the financial or other impact native title and Aboriginal heritage will have upon the Company as, amongst other things, the processes involved with:

• (a) identifying all and only the indigenous peoples with a relevant interest;

• (b) registering an indigenous land use agreement;

(c) obtaining access to land without infringing the provisions of the Aboriginal Heritage Act; are open ended, can involve substantial delay and cost and there can be no certainty as to the outcome with it being possible for projects to be entirely frustrated. This could be the case, for instance, even in circumstances where:

(a) a native title party consents to the grant of an exploration licence and assists the exploration endeavour thereon (and the discovery of an otherwise economic deposit);

• (b) the Company, in order to exploit that discovery, applies for a mining lease (or other required approval, consent, authority etc.) but such grant, approval, consent or authority is not forthcoming by reason of an objection by the same or another native title party.

Freehold Access

The interests of holders of freehold land encroached by the tenements are given special recognition by the Mining Act (WA). As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting operations on the freehold land. There can be no assurance that the Company will secure rights to access those portions of the tenements encroaching freehold land, either at all or for all purposes, but, importantly, the grant of freehold extinguished native title so wherever the tenements encroach freehold the Company is in the position of not having to abide by the Native Title Act albeit aboriginal heritage matters will still be of concern.

• Page 14 -

DIRECTORS' DECLARATION

==> picture [200 x 58] intentionally omitted <==

The directors of the Company declare that:

1. the accompanying financial statements and notes:

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

3. (b) give a true and fair view of the financial position of the Company as at 31 December 2008 and its performance for the half-year ended on that date.

4. in the directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

Signed at Perth: Roger M Thomson Managing Director

Dated this 12[th ] day of March 2009.

• Page 15 -

==> picture [95 x 110] intentionally omitted <==

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 2008, 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-year 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 2008 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.

Liability Limited by a scheme approved under Professional Standards Legislation

• Page 16 -

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 13 March 2009, 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:

• (a) giving a true and fair view of the Company’s financial position as at 31 December 2008 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

==> picture [117 x 59] intentionally omitted <==

Kevin Clarence Somes Partner Perth

Date: 13 March 2009

Liability Limited by a scheme approved under Professional Standards Legislation

• Page 17 -