NEURIZER LTD — Interim / Quarterly Report 2013

Feb 26, 2013

Marathon Resources Limited ACN 107 531 822

Interim Financial Report 31 December 2012

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CONTENTS

DIRECTORS’ REPORT	3
AUDITOR’S INDEPENDENCE DECLARATION	5
FINANCIAL STATEMENTS	6
NOTES `	10
DIRECTORS’ DECLARATION	14
AUDITOR’S STATEMENT	15

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY DIRECTORS’ REPORT

The directors present their report on Marathon Resources Ltd for the half year ended 31 December 2012 and the state of the affairs of the Company at that date.

In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

Persons who have been Directors in the Company during or since the end of the half year are:

Peter Williams BEc FCA Chairman Appointed 21 May 2004

John G. (Shad) Linley BSc (Hons), F Aus IMM Doctorate of Philosophy (Adelaide University) Director (Chief Executive Officer) Appointed 30 June 2008

Chen Zeng BA (Economics), Masters Degree in International Finance Shanghai University of Finance & Economics Director (Non-executive) Appointed 27 December 2006

Christopher Schacht Director (Non-executive) Appointed 23 January 2008

Secretary

Stuart Appleyard LLB Appointed 28 January 2004

Review of Operations

The Directors’ Review of Operations included in the Company’s 2012 Annual Report indicated that extensive assessment of prospects for investment in mineral exploration projects had been undertaken. Approximately 150 prospects have been examined in base and precious metals, energy and related technology areas to determine a suitable investment for the Company.

The Directors continue to assess projects in the period of review and expect to outline an investment for shareholders to consider in the near future The Company continues to receive invitations to review proposals in Australia and overseas. Operating costs and overheads have been curtailed to preserve the Company’s resources.

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY DIRECTORS’ REPORT

MATTERS SUBSEQUENT TO END OF THE HALF YEAR

Since the 31 December 2012 the following events or transactions occurred:

1. The Company advised the Australian Securities Exchange on 4[th] February 2013 that it was requesting a trading halt on its securities to enable it to finalise negotiations and conclude an agreement concerning the future operations of the Company.

2. On 6[th] February 2013 the Company requested a Voluntary Suspension from trading on the Australian Securities Exchange of its fully paid ordinary shares to enable further time to finalise negotiations and conclude an agreement concerning the future operations of the Company. The suspension was lifted on 13[th] February 2013 when the Company advised that it had not been able to reach a binding agreement on terms acceptable to Marathon and that the Company was to proceed with ongoing assessment of other prospects.

AUDITOR’S INDEPENDENCE

The auditor’s independence declaration is included on page 5 of this interim financial report.

Peter Williams Director

Christopher Schacht Director

Dated in Adelaide, South Australia this 26[th] day of February 2013

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2012

Notes	Consolidated Group 31 December 2012 31 December 2011
Revenue - Interest income Other income – court action settlement Supreme Court action costs Depreciation expense Property plant & equipment written off 2 Loss on disposal fixed assets Exploration Expenditure written off - Current period expenses 3 - Impairment of Mt Gee Employee benefit expenses Occupancy expense Share based payment expenses 4 Consulting and legal expenses Travel expenses ASX listing and registry expenses Corporate administration Fair value gain/(loss) on held for trading financial assets Reversal of provision for legal action (Loss) before income tax Income tax (expense)/benefit (Loss) for the period after tax expense Other comprehensive income Changes in fair value of available for sale financial assets Total comprehensive income for the period Earnings per share Basic (cents per share) Diluted (cents per share)	159,156 75,380 - 5,000,000 - (629,679) (10,894) (152,380) (48,129) (152,357) (1,159) (26,629) (27,428) (291,394) - (15,933,546) (448,778) (862,869) (68,705) (82,964) (68,733) (77,410) (316,253) (270,359) (24,027) (29,756) (42,055) (56,426) (168,669) (199,614) (18,400) - - 317,300
	(1,084,074) (13,372,703) - -
	(1,084,074) (13,372,703)
	(22,500) (28,500)
	(22,500) (28,500)
	(1,106,574) (13,401,203))
	(1.2) (14.5) (1.2) (14.5)

The Accompanying notes form part of these financial statements

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012

MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY STATEMENT OF FINANCIAL POSITION ASAT31 DECEMBER 2012
Notes	Consolidated Group 31 December 2012 30 June 2012
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Short term provisions TOTAL CURRENT LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	5,739,685 6,772,294 31,865 47,079 72,600 133,500
	5,844,150 6,932,873
	286,754 360,982
	286,754 360,982
	6,130,904 7,293,855
	101,741 165,218 84,053 145,686
	185,794 310,904
	5,945,110 6,982,951
	44,033,982 44,033,982 551,772 963,539 (38,640,644) (38,014,570)
	5,945,110 6,982,951

The accompanying notes form part of these financial statements

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2012

Balance at 1 July 2012 Fair value of share options issued (net of expired options) Total comprehensive income for the period Balance at 31 December 2012 Balance at 1 July 2011 Fair value of share options issued Total comprehensive income for the period Balance at 31 December 2011	Issued Capital Retained Losses Share Option Reserve Financial Asset Reserve Total
	44,033,982 (38,014,570) 1,123,867 (160,328) 6,982,951 - 458,000 (389,267) - 68,733 - (1,084,074) - (22,500) (1,106,574)
	44,033,982 (38,640,644) 734,600 (182,828) 5,945,110
	44,033,982 (22,849,020) 968,623 (152,828) 22,000,757 - - 77,410 - 77,410 - (13,372,703) - (28,500) (13,401,203)
	44,033,982 (36,221,723) 1,046,033 (181,328) 8,676,964

The accompanying notes form part of these financial statements

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2012

Notes	Consolidated Group 31 December 2012 31 December 2011
Cash flows from operating activities Payments to suppliers and employees Interest and sundry income received Net cash provided by / (used in) operating activities Cash flow from investing activities Proceeds on disposal of plant & equipment Purchase of plant and equipment Payment for operating leasehold improvements Net cash provided by / (used in) investing activities Net cash provided by / (used in) financing activities Net (decrease) / increase in cash held Cash at the beginning of the half year Cash at the end of the half year	(1,192,273) (2,685,809) 159,156 75,381
	(1,033,117) (2,610,428)
	3,300 - (2,792) (130,115) - (22,387)
	508 (152,502)
	- -
	(1,032,609) (2,762,930) 6,772,294 6,344,151
	5,739,685 3,581,221

The accompanying notes form part of these financial statements

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY NOTES TO THE INTERIM FINANCIAL REPORT

NOTE 1 – SUMMARY OF ACCOUNTING POLICIES

Reporting entity

Marathon Resources Limited (the “Company”) is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ended 31 December 2012 comprises the Company and its subsidiary (together referred to as the "consolidated entity" or “group”).

The consolidated annual financial report of the consolidated entity as at and for the year ended 30 June 2012 is available upon request from the Company’s registered office at Unit 8 53-57 Glen Osmond Road Eastwood SA, and can be viewed on the Company’s website www.marathonresources.com.au

Statement of compliance

The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134: Interim Financial Reporting and the Corporations Act 2001.

The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report as at and for the year ended 30 June 2012.

Accounting policies

The accounting policies applied by the consolidated entity in this consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated financial report as at and for the year ended 30 June 2012.

New and revised accounting standards applicable for the first time to the current half-year reporting period

The Group has adopted all new and revised Australian Accounting Standards and Interpretations that became effective for the first time and are relevant to the Group, including:

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income which requires entities to group items presented in Other Comprehensive Income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently, and changes the title of ‘statement of comprehensive income’ to ‘statement of profit or loss and other comprehensive income’.

The adoption of the new and revised Australian Accounting Standards and Interpretations has had no significant impact on the Group’s accounting policies or the amounts reported during the current half-year period. The adoption of AASB 2011-9 has resulted in changes to the Group’s presentation of its half-year financial statements.

The following notes cover only events or transactions that are material to an understanding of the current interim period.

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY NOTES TO THE INTERIM FINANCIAL REPORT

NOTE 2 – PROPERTY, PLANT AND EQUIPMENT WRITTEN OFF Impairment expense Written down value of leasehold improvements at the exploration camp servicing the Arkaroola Mt Gee tenement written off on abandonment of camp pursuant to the withdrawal from the tenement. NOTE 3 – EXPLORATION EXPENDITURE WRITTEN OFF Expenditure incurred preparatory to final approval of drilling programme DEF (Declaration of Environmental Factors) and related camp costs Costs post government ban on mining at Arkaroola including withdrawal from tenement expenditure Exploration unallocated overheads Residual costs following cessation of exploration activities	Dec2012 Dec2011
	48,129 - - 152,357
	48,129 152,357
	- 77,742 - 208,998 - 4,654 27,428 -
	27,428 291,394

NOTE 4 – SHARE BASED PAYMENTS

The following options were granted in the 2010/2011 year as follows:

 2,000,000 options to Chairman of Directors in three tranches on 16 October 2010

Number Exercise Date Expiry Date Value 500,000 1 Nov 2012 1 Nov 2013 114,967 750,000 1 Nov 2013 1 Nov 2014 165,439 750,000 1 Nov 2014 1 Nov 2015 161,966 Total fair value of the options 442,372 ir value recognised as an expense over the vesting period	68,733 77,410 68,733 77,410

Fair value recognised as an expense over the vesting period

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY NOTES TO THE INTERIM FINANCIAL REPORT

NOTE 5 – SEGMENT INFORMATION

Identification of reportable segments

The group identified its operating segments based on the internal reports that were reviewed and used by the board of directors (chief operating decision makers) in determining the allocation of resources.

The group was managed primarily on the basis of cost centres since each cost centre had different cash requirements. Operating segments were therefore determined on the same basis. The group’s operating segments were divided into JORC compliant Resource tenements, investments and unallocated corporate activity.

JORC compliant Resource tenements

This related to tenements of the group which the group had ongoing exploration activities. Qualifying expenditure incurred on JORC compliant Resource tenements were capitalised.

Investment

This segment monitors the performance of the group’s quoted investments.

Unallocated corporate

This relates to all other income and expenses of the group which are not directly attributed to any of the above segments.

While all exploration activities had ceased by 30 June 2012, some residual costs were incurred in the current reporting period. Property, plant & equipment, recognised as impaired, related to exploration continued to be held at balance date.

Segment performance	TENEMENTS	INVESTMENT	UNALLOCATED	TOTAL
	JORC
	COMPLIANT
	RESOURCE
Six months ended 31 December 2012
Income	-		159,156	159,156
Depreciation	-		(10,894)	(10,894)
Exploration expenditure	(27,428)		-	(27,428)
Overheads	-		(1,138,379)	(1,138,379)
Impairment	(13,179)		(34,950)	(48,129)
Movement in fair value of
financial assets	-	(18,400)	-	(18,400)
Net (loss) / profit before tax	(40,607)	(18,400)	(1,025,067)	(1,084,074)
Six months ended 31 December 2011
Income	-	-	5,075,380	5,075,380
Depreciation	(132,694)	-	(19,686)	(152,380)
Exploration expenditure	(443,751)	-	-	(443,751)
Overheads	(311,770)	-	(1,606,636)	(1,918,406)
Impairment	(15,933,546)		-	(15,933,546)
Movement in fair value of
financial assets	-	-	-	-
Net (loss) / profit before tax	(16,821,761)	-	3,449,058	(13,372,703)

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY NOTES TO THE INTERIM FINANCIAL REPORT

NOTE 6 – SEGMENT INFORMATION (con’t)

Segment assets and liabilities

As at 31 December 2012 Total assets Total liabilities As at 30 June 2012 Total assets Total liabilities	TENEMENTS INVESTMENTS UNALLOCATED TOTAL JORC COMPLIANT RESOURCE 247,344 72,600 5,810,960 6,130,904
	- - 185,794 185,794
	258,563 113,500 6,921,792 7,293,855
	- - 310,904 310,904

NOTE 7 – CONTINGENT LIABILITIES

In December 2012 the Company received a formal claim from the lessors at Umberatana Station seeking damages for an alleged breach of the lease. The Directors have sought legal advice and believe the claim is unjustified and will be defended without penalty to the Company.

NOTE 8 – SUBSEQUENT EVENTS

Since the 31 December 2012 the following events or transactions occurred:

1. The Company advised the Australian Securities Exchange on 4[th] February 2013 that it was requesting a trading halt on its securities to enable it to finalise negotiations and conclude an agreement concerning the future operations of the Company.

2. On 6[th] February 2013 the Company requested a Voluntary Suspension from trading on the Australian Securities Exchange of its fully paid ordinary shares to enable further time to finalise negotiations and conclude an agreement concerning the future operations of the Company. The suspension was lifted on 13[th] February 2013 when the Company advised that it had not been able to reach a binding agreement on terms acceptable to Marathon and that the Company was to proceed with ongoing assessment of other prospects.

Marathon Resources Limited ACN 107 531 822 Unit 8 53-57 Glen Osmond Road Eastwood SA 5063 Telephone (08) 8348 3500 Facsimile (08) 7225 6990 enquiries@marathonresources.com.au www.marathonresources.com.au

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MARATHON RESOURCES LIMITED ACN 107 531 822 AND CONTROLLED ENTITY DIRECTORS’ REPORT

The Directors declare that:

In the opinion of the directors of the company:

1. The financial statements and notes, as set out on pages 6 to 13, are in accordance with the Corporations Act 2001 including:

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

3. (b) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and of its performance, as represented by the results of its operations and cash flows for the half-year ended on that date.

4. 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.

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Peter Williams Director

Christopher Schacht Director

Dated in Adelaide, South Australia this 26[th] day of February 2013

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