MINERAL COMMODITIES LTD

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ABN 39 008 478 653

Half-Year Financial Report 30 June 2010

This 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 31 December 2009 and any public announcements made by Mineral Commodities Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Directors’ Report

The Directors present their report on the Consolidated Entity, consisting of Mineral Commodities Ltd and the entities it controlled at the end of or during the half-year ended 30 June 2010.

Directors

The following persons were Directors of the Company in office during the half-year, and up to the date of this report:

Joseph Anthony Caruso Non-Executive Chairman Mark Victor Caruso Executive Director Gregory Hugh Steemson Managing Director (resigned 31 March 2010) Peter Patrick Torre Non-Executive Director (appointed 1 April 2010)

Results

The loss of the consolidated entity after income tax attributable to members of the parent entity was $1,624,889 (2009 loss $275,332).

Review of Operations

Highlights of the Company’s operations for the period under review are as follows.

South African Projects

Xolobeni Mineral Sands Project, (MRC 56% owned)

As noted in ASX announcements, the Company was awaiting the outcome of an appeal lodged with the Minister of the Department of Minerals and Energy (DME) against the grant of the Mining Right over the Kwanyana block. This appeal was lodged in September 2008.

The appeal was scheduled to be heard in February 2010, however the Company was then informed that the hearing was deferred. Subsequent to this the Company has become aware that the task team established to advise the Minerals Resource Minister has submitted its report and recommendations to the Director General without a public hearing as was initially anticipated.

The DME has advised the Company in meetings that consultation with various Government departments is required prior to handing down a final decision. This process is expected to take approximately six months.

Tormin Mineral Sands Project (MRC 50% owned)

In 2009 the Company commissioned a definitive feasibility study of the project. This study produced several options for the development of the project and a decision has been made to proceed to develop the Project.

Perth based MSP Engineering Pty Ltd were engaged to prepare a preliminary conceptual design of a beach concentrator for the Tormin Project. The Company also initiated discussions to assess various funding options which include discussions with potential off-take partners.

Meetings have been held with the DME to ensure all stakeholders are fully consulted and informed as development progresses.

Investments

Africa Uranium Ltd (AUL)

The Company holds an approximate 12% interest in Africa Uranium Limited.

Cape Lambert Resources Limited (CLR) subsequently obtained at 10% beneficial interest in AUL and in late 2009 undertook two drilling programmes on AUL’s Hoasib Uranium Project. In its ASX release on 20 January 2010, CLR advised that the results from the programme were promising and in line with expectations.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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In March 2010, Oklo Uranium Limited (OUL) announced that it had entered into a transaction with AUL to acquire its 70% interest in the Hoasib Project for an estimated value of $20 million.

On 31 May 2010 OUL announced that following due diligence it had formed the view that, whilst the project remained prospective for uranium mineralisation, it was unable to support the key commercial terms of the acquisition and consequently terminated the transaction with AUL. OUL noted that it was in discussion with AUL on the basis that it recognises the potential in the project and these discussions may or may not result in a new agreement with AUL.

Petro Ventures International Limited

The Company holds a 9.31% interest in Petro Ventures International Limited (PVIL). PVIL has interests in two project areas which are located in offshore Romania and onshore Hungary. Petro Ventures’ working interest in the projects is 20% and 10% respectively.

PVIL and its partners continue to develop these projects. Based on results to date, the Romanian project is likely to be commercial. The project in Hungary is in the early stages of exploration.

In an update to its shareholders in May 2010 PVIL advised that it had engaged First Energy Capital LLP to assist with a US $30 million capital raising as well as development and formalisation of a schedule leading to a listing on the Alternative Investment market (AIM) in London.

In addition PVIL requested First Energy to create a secondary liquidity event by way of a pre IPO offer to acquire the interests of the Australian investors. The Board of PVIL is seeking to obtain a fair and reasonable offer to those investors who wish to dispose of their holdings prior to admission to the AIM.

Investment in Allied Gold Limited (ALD)

MRC currently holds approximately 8.5 million shares of ALD’s issued fully paid ordinary shares.

Allied Gold has commenced the re-development of the Gold Ridge Project in the Solomon Islands following its successful takeover of Australian Solomons Gold in the last quarter of 2009. Allied has also appointed consultants to proceed with the expansion of its oxide processing facilities on Simberi Island PNG.

The market value of MRC’s shareholding at 30[th] June 2010 was $3.1 million, during the half year, 2 million shares were divested to assist with working capital funding

Events Subsequent to Balance Date

Other than disclosed under the review of operations above, no other matters or circumstances have arisen since the end of the halfyear which significantly affected or may significantly affect the economic entity’s operations, the results of those operations or the economic entity’s state of affairs in future financial years.

Auditor’s Independence Declaration

A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 15.

Signed in accordance with a resolution of the Directors.

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Mark Caruso Managing Director Perth, Western Australia 13[th] September 2010

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Consolidated Statement of Comprehensive Income

Note Revenues from continuing operations 2 Administration expenses Employees and consultants remuneration Depreciation Exploration and evaluation costs Finance costs Impairment of Investment in Unlisted Company (Loss)/Profit before income tax Income tax expense Loss for the half-year from continuing operations Loss for the half-year from discontinued operations 4 (Loss) for the half-year Other comprehensive income Changes in the fair value of available-for-sale financial assets Exchange differences on translation of foreign operations Other comprehensive income for the half-year net of tax Total comprehensive income/(loss) for the half-year Loss is attributable to: Owners of Mineral Commodities Ltd Non-controlling interest Total comprehensive income for the half-year is attributable to Owners of Mineral Commodities Ltd Non-controlling interest Earnings/(Loss) per share from continuing operations attributable to the ordinary equity holders of the company: Basic Loss per share From continuing operations attributable to the ordinary shareholders of the company (cents per share) From discontinued operations (cents per share) Total basic loss per share for profit attributable to the ordinary equity holders of the company: (cents per share)	Half - year 2010 $ 2009 $ 234,859 418,802 (240,269) (266,645) (108,360) (115,851) (8,306) (5,841) (10,309) (10,939) (3,860) (3,020) (1,488,644) -
	(1,624,889) 16,506 - -
	(1,624,889) 16,506 - (291,838)
	(1,624,889) (275,332) 210,822 (424,147) 118,296 331,685
	329,118 (92,462)

	(1,295,771) (367,794)
	(1,624,889) (275,332) - -

	(1,295,771) (367,794) - -
	(1,295,771) (367,794)
	cents cents (1.13) 0.01 - (0.20) (1.13) (0.19)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Consolidated Statement of Financial Position

as at 30 June 2010

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Available for sale Financial Assets 3 Other current assets Non current asset held for sale Total Current Assets NON-CURRENT ASSETS Property, plant and equipment Exploration & development expenditure Other Financial assets Total Non-current Assets Total Assets CURRENT LIABILITIES Trade and other payables Provisions Total Current Liabilities Total Liabilities NET ASSETS EQUITY Contributed equity 5 Reserves Accumulated losses Parent entity interest Non Controlling interest TOTAL EQUITY	30 June 2010 31 December 2009 $ $ 367,825 153,566 473,541 539,358 4,335,029 6,070,777 31,080 13,351 97,182 165,639
	5,304,657 6,942,691
	14,868 26,515 13,622,615 13,159,249 - 6
	13,637,483 13,185,770
	18,942,140 20,128,461
	359,649 251,699 34,006 32,506
	393,655 284,205
	393,655 284,205
	18,548,485 19,844,256
	40,004,350 40,004,350 4,002,095 3,672,977 (25,636,809) (24,011,920)
	18,369,636 19,665,407 178,849 178,849
	18,548,485 19,844,256

The above Consolidated Statement of Financial position should be read in conjunction with the accompanying notes.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Consolidated Statement of Cash Flows

for the half-year ended 30 June 2010

Note CASH FLOWS FROM OPERATING ACTIVITIES Exploration and evaluation expenditure Interest received Payments to suppliers and employees Interest paid Promet settlement, net of costs Net cash inflow/(outflow) from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payment for plant and equipment Purchase of investments Proceeds from sales of investments Proceeds from sale of Non current asset held for sale Deposit of bond Net cash (outflow)/inflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issue of shares and options Net cash inflow from financing activities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the half-year Effects of exchange rate changes on cash and cash eqivalents Cash and cash equivalents at the end of the half-year	2010 2009 $ $ (231,438) (932,544) 13,697 33,705 (315,024) (800,528) (3,861) - - 1,905,902
	(536,626) 206,535
	3,341 (7,000) - (839,181) 679,087 728,476 68,457 - - (422,713)
	750,885 (540,418)
	- -
	- -
	214,259 (333,883) 153,566 797,328 - 13,721
	367,825 477,166

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Consolidated Statement of Changes in Equity

Balance at 1 January 2010 Loss for the year Exchange differences on translation of foreign currencies Transfer to profit and loss on shares sold Changes in the fair value of available for sale financial assets Total comprehensive income for the year Contributions of equity net of transaction costs Balance at the end of the year Balance at 1 January 2009 Loss for the year Exchange differences on translation of foreign currencies Transfer to profit and loss on shares sold Changes in the fair value of available for sale financial assets Changes in fair value of other assets Total comprehensive income for the year Contributions of equity net of transaction costs Increase in non controlling interest Balance at the end of the year	Contributed equity Listed Options Reserve Accumulated Losses General Reserve Currency Translation Reserve Financial Asset Revaluation Reserve Total Non- controlling interest Total Equity $ $ $ $ $ $ $ $ $ 40,004,350 286,578 (24,011,920) 2,437,582 (758,112) 1,706,929 19,665,407 178,849 19,844,256 - - (1,624,889) - - - (1,624,889) - (1,624,889)) - - - - 118,296 118,296 - 118,296 - - - - - (182,104) (182,104) - (182,104) - - - - - 392,926 392,926 - 392,926
	- - (1,624,889) - 118,286 210,822 (1,295,771) - (1,295,771) - - - - - - - - -
	40,004,350 286,578 (25,636,809) 2,437,582 (639,816) 1,917,751 18,369,636 178,849 18,548,485
	Contributed equity Share based payments Reserve Accumulated Losses General Reserve Currency Translation Reserve Financial Asset Revaluation Reserve Total Non- controlling interest Total Equity $ $ $ $ $ $ $ 39,804,350 78,500 (23,516,439) 2,551,100 (584,211) 2,872,076 21,205,376 134,340 21,339,716 - - (275,332) - - - (275,332) - (275,332) - - - - 331,685 - 331,685 - 331,685 - - - - - (366,574) (366,574) - (366,574) - - - - - (57,573) (57,573) - (57,573) - - - - - 728,428 728,428 - 728,428
	- - (275,332) - 331,685 304,281 360,634 - 360,634 200,000 - - - - - 200,000 - 200,000 - - - - - - - - -
	40,004,350 78,500 (23,791,771) 2,551,100 (252,526) 3,176,357 21,766,010 134,340 21,900,350

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Consolidated Financial Statements

for the half-year ended 30 June 2010

1. Basis of Preparation

These general purpose financial statements for the interim half-year reporting period ended 30 June 2010 have been prepared in accordance with Australian Accounting Standard 134 "Interim Financial Reporting" and the Corporations Act 2001.

It is recommended that these financial statements be read in conjunction with the annual financial statements for the year ended 31 December 2009 and any public announcements made by Mineral Commodities Limited during the half year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

These interim financial statements do not include all the notes of the type normally included in annual financial statements.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

2. Segment Information

Operating segments are now reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Directors that make strategic decisions.

There is no goodwill attaching to any of the segments. There has been no impact on the measurement of the assets and liabilities reported for each segment.

Half- Year 2010 Revenue from operations Gain from sales of investments in listed companies Interest earned from unrelated entities Management fees from controlled entity Inter segment revenue Total segment revenue Segment results (Loss) before income tax	Africa Australia Discontinued operations Totals
	Tormin Xolobeni Investing Corporate
	$ $ $ $ $ - - 221,162 - - 221,162 8,286 921 4,490 - - 13,697 - - - 48,940 - 48,940 - - - (48,940) - (48,940)
	8,286 921 225,652 - - 234,859

	3 1 1,262,992 361,893 - (1,624,889)

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Half-Year 2009 Revenue from operations Gain from sales of investments in listed companies Interest earned from unrelated entities Interest earned from controlled entity Management fees from controlled entity Inter segment revenue Total segment revenue Segment results	Africa Australia Discontinued operations Totals
	Tormin Xolobeni Investing Corporate
	$ $ $ $ $ - - 385,097 - - 385,097 15,450 1,717 16,538 - - 33,705 - - - 265,440 - 265,440 - - - 51,068 - 51,068 - - - (316,508) - (316,508)
	15,450 1,717 401,635 - - 418,802

Profit / (Loss) before income tax	193 22 - 16,290 (291,837) (275,332)
Total segment assets 30 June 2010 31 December 2009	4,272,453 9,826,820 4,335,029 410,656 97,182 18,942,140 3,953,063 9,722,704 6,070,777 216,278 165,639 20,128,461

3. Available for Sale Financial Assets

Listed equity securities Allied Gold Ltd Other listed shares Total listed equity securities Unlisted equity securities Balance at 1 January 2010 Less Impairment at 30 June 2010¹ Balance at 30 June 2010 Total available for sale securities	30 June 2010 $ 3,157,720 72,659	31 December 2009 $ 3,423,673 53,810
	3,230,379	3,477,483

	2,593,294 (1,488,644) 1,104,650 4,335,029	2,593,294 -
		2,593,294

		6,070,777

¹ Due to the uncertainty as to the recoverability of the investment in Africa Uranium Ltd an impairment of $1,488,644 has been made at 30 June 2010.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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4. Discontinued Operations Sierra Leone

(a) Description

During the previous year the Company retrieved some of the plant and mobile equipment and relocated items to Australia or South Africa for sale. Some of these items have now been sold.

Financial Information relating to the discontinued operation for the period is set out below.

(b) Financial Performance and Cash Flow Information

The financial performance and cash flow information presented are for the half-year ended 30 June 2010

Revenue Expenses (Loss) before income tax Income Tax Expense (Loss) after income tax of discontinued operations Net cash outflow from operating activities Net cash inflow /(outflow) from investing activities Net cash outflow from financing activities Net Cash used by discontinued operations (c) Carrying amounts of assets and liabilities The carrying amount of assets and liabilities as at 30 June 2010 were: Cash and cash equivalents Property Plant and Equipment Receivables & prepayments Total Assets Trade Creditors (disputed) Total Liabilities Net Assets	Half-Year 2010 $ 2009 $ - - - (291,838)
	- (291,838)
	- -
	- (291,838)
	- (291,838) - - - -
	- (291,838)
	30 June 2010 30 June 2009 $ $ - 1,905 - 316,990 - 76,290
	- 395,185 (46,024) (46,637)
	(46,024) (46,637)
	(46,024) 348,548

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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5. Issued capital

Ordinary Shares Fully Paid Balance at beginning of period Issued to Africa Uranium Ltd ¹ Balance at the end of the period	30 June 2010 31 December 2009 30 June 2010 31 December 2009 Number of Shares $ $ 143,393,385 141,393,385 40,004,350 39,804,350 - 2,000,000 - 200,000
	143,393,385 143,393,385 40,004,350 40,004,350

¹ Africa Uranium Ltd (AUL)

On 27 April 2009 MRC announced that it had entered into a letter of agreement (Agreement) with AUL which provides for MRC to have exclusive rights to fund AUL’s mineral exploration activities in return for equity in AUL and the issue to AUL of 2 million shares in MRC. Following satisfactory completion of the due diligence exploration on the Hoasib Project (EL3446) commenced in May 2009.

Options

The following are the balances of options over fully paid ordinary shares at balance date:

		Exercise Price
Category	No of Options	Cents per Share	Expiry Date
Listed Options	57,357,208	20	31 December 2012

In July 2009 the Company announced a pro rata non-renounceable entitlement on the basis of 2 New Options for every 5 shares held by shareholders at an issue price of $0.005 per New Option. The New Options entitle the holder to acquire a fully paid ordinary share for $0.20 and are listed on the ASX and will expire on 31 December 2012.

6. Contingent liabilities

Bank Guarantees

The Company has provided bank guarantees with a total value of $408,537 (2009 - $422,713) to the Department of Minerals & Energy South Africa as security on tenements

7. Subsidiaries

8. Related party transactions

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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There were no transactions with directors or director related entities during the financial period other than the payment of directors’ remuneration and the sale of an excavator retrieved from Sierra Leone to Zurich Bay holdings a company associated with Mark & Joseph Caruso for $115,000.

Mineral Commodities Ltd is a shareholder in Allied Gold Ltd owning 8,534,379 shares of the issued share capital at balance date. Mark Caruso and Peter Torre are both officers of Allied Gold Limited.

Wholly owned group

The group consists of Mineral Commodities Limited and its wholly owned subsidiaries.

Transactions between Mineral Commodities Limited and other entities in the group during the half-years ended 30 June 2010 and 30 June 2009 consisted of loans advanced and payments received and made on inter company accounts. These transactions were made on normal commercial terms and conditions and at market rates.

During the financial period, the Company provided management, accounting and administration services to other entities in the wholly-owned group.

9. Subsequent Events

Other than disclosed elsewhere in this financial report, no other matters or circumstances have arisen since the end of the half-year which significantly affected or may significantly affect the economic entity’s operations, the results of those operations or the economic entity’s state of affairs in future financial years.

Mineral Commodities Ltd Half-Year Financial Report – 30 June 2010

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Directors’ Declaration

Declaration by Directors

The directors of the company declare that:

The consolidated financial statements, comprising the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flow, Statement of Changes in Equity and accompanying 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 entity's financial position as at 30 June 2010 and of its performance for the half-year ended on that date.
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 and is signed for and behalf of the directors by:

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Mark Caruso Managing Director Perth, Western Australia 13th September 2010

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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13 September 2010

Mineral Commodities Limited Unit 15, Level 1 51 -‐ 53 Kewdale Road WELSHPOOL WA 6106

Dear Sirs

DECLARATION OF INDEPENDENCE BY PETER TOLL TO THE DIRECTORS OF MINERAL COMMODITIES LIMITED

As lead auditor of Mineral Commodities Limited for the half-‐year 30 June 2010, I declare that to the best of my knowledge and belief, there have been:

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No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Mineral Commodities Limited and the entities it controlled during the period.

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Peter Toll Director

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BDO Audit (WA) Pty Ltd

Perth, Western Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of separate entities which are all members of BDO (Australia) Limited ACN 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Limited are members of BDO International Limited, a UK company limited by guarantee, and form a part of the international BDO network of independent member firms. Liability limited by scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

Tel: +8 6382 4600 38 Station Street Fax: +8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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�� TO THE MEMBERS OF MINERAL COMMODITIES LIMITED

Report on the Half-‐Year Financial Report

We have reviewed the accompanying half-‐year financial report of Mineral Commodities Limited, which comprises the statement of financial position as at 30 June 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-‐ year ended on that date, notes comprising a statement of accounting policies and other explanatory information, �� of the consolidated entity comprising the Company and the entities it controlled at the half-‐year�� end or from time to time during the half-‐year.

��-‐Year Financial Report

The directors of the Company are responsible for the preparation of the half-‐year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-‐year financial report that is free from material misstatement, whether due to fraud or error.

��

Our responsibility is to express a conclusion on the half-‐year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated ��30 June 2010 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 Mineral Commodities Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Mineral Commodities Limited, would be in the same terms if given to the directors as at the time of ��report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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Conclusion

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

(a) �� 30 June 2010 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 .

Emphasis of Matter

Without qualification to the conclusion expressed above, attention is drawn to Note 7 in the financial statements where there remains an uncertainty regarding the granting of the mining right over the Xolobini area of interest. Currently, a Notice of Appeal has been filed against the granting of the Mining Right which remains unresolved at the period end. As a result, the issue of the mining right has been deferred, pending the outcome of the appeal.

No impairment in respect of this area has been recognised, and expenditure has been minimised during the period. If the appeal by third parties is successful, the capitalised expenditure in relation to the Xolobini area of interest may not be recoverable at the amount stated in the financial statements.

BDO Audit (WA) Pty Ltd

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Peter Toll

Director

Perth, Western Australia

Dated this 13th day of September 2010

AI assistant

MINERAL COMMODITIES LTD — Interim / Quarterly Report 2010

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