ORA BANDA MINING LTD — Annual Report 2015

Mar 20, 2016

EASTERN GOLDFIELDS LIMITED

(Formerly known as SWAN GOLD MINING LIMITED) ABN 69 100 038 266

ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2015

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES (Formerly known as Swan Gold Mining Limited) FOR THE YEAR ENDED 30 JUNE 2015

ABN 69 100 038 266

CORPORATE DIRECTORY AND CONTENTS

BOARD OF DIRECTORS

Michael Fotios Executive chairman Alan Still Non- Executive director Craig Readhead Non- Executive director

COMPANY SECRETARY

Shannon Coates

REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS

24 Mumford Place BALCATTA WA 6021

Telephone: (61-8) 6241 1802 Facsimile: (61-8) 6241 1811 admin@easterngoldfields.com.au Web-site: www.easterngoldfields.com.au

SHARE REGISTRY

Computershare Investor Services Pty Ltd Level 11, 172 St. George’s Terrace Perth WA 6000

Telephone: (61-8) 9323 2000 Facsimile: (61-8) 9323 2033 E-mail: perth.services@computershare.com.au Web-site: www.computershare.com.au

Corporate directory ........................................... 1 Directors’ report ................................................ 2 Auditor’s independence declaration ................ 20 Consolidated statement of comprehensive income …………………………………………..21 Consolidated statement of financial position...22 Consolidated statement of changes in equity.23 Consolidated statement of cash flows……….24 Notes to the consolidated financial statements ……………………………………...25 Directors’ declaration ………………………….57 Independent auditor’s report ………………….58 Tenement Schedule…………………………....61 Annual Mineral Resource Statement………...65 Additional ASX Information……………………67

AUDITORS

Ernst & Young

SOLICITORS

Squires Patton Boggs

BANKERS

National Australia Bank Limited

STOCK EXCHANGE LISTING

Shares in Eastern Goldfields Limited are listed on the Australian Stock Exchange under the trading code EGS

This financial report covers the consolidated financial statements for the Group, consisting of Eastern Goldfields Limited and its subsidiaries. The annual financial report is presented in Australian dollars.

Eastern Goldfields Limited is a company limited by shares, incorporated and domiciled in Australia.

1

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

The directors of Eastern Goldfields Limited (previously named Swan Gold Mining Limited) (“Eastern Goldfields” or “Company”) present their report on the results and state of affairs of the consolidated entity, being the Company and its controlled entities (“Group”) for the financial year ended 30 June 2015.

The Company changed its name to Eastern Goldfields Limited on 11 November 2015.

DIRECTORS

The names of the directors of Eastern Goldfields in office during the course of the financial year and up to the date of this report are as follows:

Michael Fotios Craig Readhead Alan Still (Appointed – 31 March 2015)

John Poynton (Resigned – 31 March 2015) Wayne Zekulich (Resigned – 22 December 2014)

Unless otherwise indicated, all directors held their position as a director throughout the entire financial year and up to the date of this report.

INFORMATION ON DIRECTORS

Director Qualifications, experience and special responsibilities Michael Fotios BSc (Hons) MAusIMM Non-Executive A director since September 2012, Mr Fotios is a Geologist specialising in Economic Geology with 27 years extensive experience in exploration throughout Australia for gold, base metals, tantalum, tin and nickel and taking projects from exploration to feasibility. He previously held positions with Homestake Australia Limited and Sons of Gwalia Limited. He was Managing Director and a Director with Tantalum Australia NL (now ABM Resources Ltd) from September 1999 to October 2005. His last position was as Managing Director of Galaxy Resources Limited. Michael Fotios is founder and current Executive Chairman of Investmet and regarded as having control of Investmet for the purposes of the Corporations Act 2001. Other current directorships: Pegasus Metals Limited (from December 2009), Horseshoe Metals Limited (from May 2012), General Mining Corporation Limited (from June 2012) and Redbank Copper Limited (from September 2012). Former directorships in the last three years: Northern Star Resources Limited (from September 2009 to October 2013), Galaxy Resources Limited (from December 2006 to December 2008) and Stirling Resources Limited (from September 2012 to November 2012). Alan Still Alan Still is a Metallurgist with over 40 years’ experience in a variety of commodities. Non-Executive Director Alan is currently a director of ASX Listed, Horseshoe Metals Limited and Pegasus Metals Limited. (Appointed 31 March 2015)

Craig Readhead	B Juris Lib
Non-Executive	Mr Readhead is one of WA’s leading mining and resource lawyers with over 33 years legal and
Director	corporate advisory experience specialising in the resources sector, including the implementation
	of large scale mining projects both in Australia and overseas. In 2009, Craig was identified as
	one of the top ten Best Mining Lawyers in Australia published by the Australian Financial
	Review. Craig is a Partner of law firm, Allion Legal.
	Current directorships: Heron Resources Limited, Beadell Resources Limited, General Mining
	Corporation Limited, Western Areas Limited and Redbank Copper Limited.
	Former directorships in the last three years: Galaxy Resources Limited to November 2013, Mt.
	Gibson Iron Limited to December 2012 and Frankland River Olive Company Limited to
	December 2012.

2

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Director

Qualifications, experience and special responsibilities

John Poynton Non-Executive Director (Resigned 31 March 2015)

AM Cit WA

John is the Chairman of Azure Capital Limited.

He is a Director of the Future Fund Board of Guardians and Crown Perth. In the not-for-profit arena, John is the Chairman of Council of Christ Church Grammar School, Giving West and Celebrate WA. He is also a member of Social Ventures Australia.

Previously, John was a Chairman of ASX Perth, Fleetwood, Alinta and the West Australian Museum Foundation – Deputy Chairman of Austal Limited – Director of Multiplex; Member of the Higher Education Endowment Fund Advisory Board, Payments System Board of the Reserve Bank of Australia, EFIC and of the Business School at the University of Western Australia.

John is a Life Member and Senior Fellow of the Financial Services Institute of Australasia (FINSIA), a Fellow of the Australian Institute of Company Directors (AICD) and of the Australian Institute of Management (AIM).

John is a Member in the General Division of the Order of Australia and is a past recipient of a WA Citizen of the Year award in the industry and commerce category.

John holds a Bachelor of Commerce and an honorary Doctor of Commerce from the University of Western Australia.

Wayne Zekulich BBus, FCA Non-Executive Wayne is a Consultant and non-executive Director. He has a broad range of experience Director covering advice on mergers and acquisitions, arranging and underwriting project financings, privatisations, and debt and equity capital markets. Most recently Wayne was the Chief (Resigned 22 Financial Officer of Gindalbie Metals Ltd and prior to that the Chief Development Officer of December 2014) Oakajee Port and Rail. Wayne holds a Bachelor of Business Degree and is a Fellow of the Institute of Chartered Accountants.

Currently, Wayne is Head of Perth for Deutsche Bank, Chairman of Tesla Corporation, a Director of Swan Gold Mining Limited, Director of Jaxon Construction. In the Not-for-Profit sector Wayne Chairman of Celebrate WA, a committee member of the Committee for Economic Development of Australia (WA Branch), a member of the Curtin Business School of Accounting Advisory Board and Greater Curtin Project Control Group and a member of the University of Western Australia Audit Committee.

3

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

OPERATING AND FINANCIAL REVIEW

This review provides to shareholders an overview of Eastern Goldfields’ 2015 operations, financial position, business strategies and prospects.

The review also provides contextual information, including the impact of key events that have occurred during 2015 and material business risks faced by the business so that shareholders can make an informed assessment of the results and prospects of the Group. The review compliments the financial report and has been prepared in accordance with recently released guidance set out in ASIC Regulatory Guide 247 (“RG 247”).

1. Eastern Goldfields Operations

Core Business

Eastern Goldfields, via its subsidiaries, is the 100% owner of the Davyhurst Gold Project 120km north-west of Kalgoorlie, and the Mt Ida Gold Project located 200km north-west of Kalgoorlie. Processing infrastructure includes a 1.2Mtpa processing plant, two camps (Davyhurst Central and Mt Ida), mains power and working bore fields.

The Group also holds a substantial tenement position (1,420 square kilometres, 150km strike length), surrounding the existing infrastructure.

Principal Activities and Significant Changes in those Activities

The principal activity of the Group during the financial year was mineral exploration and evaluation, and care and maintenance of its historically producing gold mines being the Davyhurst Gold Project and the Mt Ida Gold Project.

Davyhurst Project Area (SWA 100%)

On ground exploration activity increased during the period with the undertaking of both reverse circulation (RC) and diamond drilling (DD) operations. The RC drilling programs predominantly focussed on high priority exploration prospects. The DD programs remained focussed on resource definition and near term mining opportunity.

The Company continues to progress the broader Davyhurst Project with mine evaluation work ongoing on additional deposits which are being examined for their potential to add to the proposed mine life. Exploration reviews continue on the extensive list of potential exploration targets. The completed work for the period included;

• Golden Eagle drilling was completed, work now shifts to evaluating underground mining opportunities

• Detailed modelling of Lights of Israel identified the potential for additional underground mining opportunities

• Detailed modelling of Callion Deposit identified the potential for high grade / low tonnage underground mining opportunities

• Siberia regional mapping commenced aiming to produce a contiguous and internally consistent outcrop and solid geology maps at scales suitable for integration into a camp-scale 3D geology model

• Diamond drilling at the Bombay Prospect (Mt Ida) insected Quartz veining and pyrite alteration

• The detailed Processing Plant Refurbishment evaluation work and an initial costing’s was complete.

• Exploration reviews continue on the extensive list of potential exploration targets

• A total of 4,475 metres of diamond drilling was completed

• A total of 3,038 metres of reverse circulation drilling was completed

• A total of 1,338 surface geochemistry auger samples were taken

• A total of 49 surface rock chip samples were taken

• A total of 823 XRF readings were taken

4

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Golden Eagle Project Area (SWA 100%)

The Company continued to evaluate the mining potential of the Golden Eagle (GE) Deposit. Initial assessment of the down plunge extensions to the open pit resource demonstrates the potential for an economically viable short lived underground mining operation.

Resource definition and extensional diamond drilling continued with a total of 12 holes for 2,601 metres of diamond drilling completed for the full year. The drilling confirmed the importance of the Quartz-Felspar-Lode (QFL) in relation to high gold grades. A refined geological model combined with recent drilling was used to inform an updated resource model.

Significant Intersections returned to date include;

 7.1m @ 7.2g/t from 157m o Inc 3.0m @ 11.1g/t o Inc 1.7m @ 9.43g/t  2.7m @ 13.7g/t from 112.8m o Inc 0.7m @ 36.6g/t  5.0m @ 5.0g/t from 119.0m  3.0m @ 6.3g/t from 134.0m  4.0m @ 3.9g/t from 157.9m

In preparation for the submission of the mining approval documents a geotechnical engineer was engaged to review of the Golden Eagle deposit. The geotechnical outcomes will be used to inform underground mine design parameters. Drilling has now been completed in a 25m by 20m grid up to 180m from the pit. Four additional holes step out a further 100m to the north and also targeting depth extensions have been completed and await results.

==> picture [452 x 265] intentionally omitted <==

Figure 1 - Long Section looking east, March 2015 Resource model with Recent drill holes

Surface geological mapping and rockchip sampling was carried out 400m to the north of the current drilling area at the Jeddah prospect. This prospect is interpreted to be the northern extension of the Golden Eagle structure. Encouraging structural and alteration patterns were mapped. No effective drilling has been carried out in this area. A program of reverse circulation (RC) and diamond drilling (DD) has been planned to test this prospect. The Company plans to investigate the possibility of converting the GE pit into in in-pit tailings deposition site upon completion of the underground mining event. In pit tailings deposition will potentially result in better rehabilitation outcomes for the project coupled with significant construction cost savings in relation to tailings management.

5

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Lights of Israel Complex (SWA 100%)

The development of a geological model for the LOI Mine Complex was progressed significantly during the period with geologic and resource interpretation of the entire LOI mine, including fault zones, biotite schist and quartz-feldsparlodes (QFL). The modelling has been expanded to include the main LOI mineralisation, combined with Maki shoot to the east and the Great Ophir shoot to the west. This work, in conjunction with a significant compilation of historical data enabled an updated Resource estimation of the existing LOI mine that encompassed and built on the high grade Makai Resource completed in the December 2014 quarter.

The focus during the period was the Great Ophir Deposit, located approximately 200m west of the LOI UG mine. A preliminary Resource model has been developed identifying significant mineralisation with potential for extraction through underground mining methods. This Resource has been added to the LOI and Makai Resources for economic evaluation.

A diamond drilling program commenced with four holes for 745 metres being completed. The program has been designed with the aim of confirming the main zones of mineralisation within the Makai and Great Ophir lodes while also providing adequate material for metallurgical test work.

Waihi Project Area (SWA 100%)

A geological review was initiated on the Waihi Complex, which comprised the main Waihi line of lode, the Homeward bound structure and the high grade Golden Pole historic underground mine. Although only a short distance from the LOI mining complex, the mineralisation style at Waihi is substantially different to that defined at LOI Complex with mineralisation located within tremolite shear zones within a broad amphibolite unit.

High grade mineralisation appears to be controlled by tight isoclinal folds within this shear and forms the initial focus of the review; identification of the controls on the high grade plunge of the mineralisation is of high importance, while defining the potential for continuation of these high grade zones which will direct any further drilling.

This review continued in the September quarter with possible drilling planned for the December quarter.

Mulline Project Area (SWA 100%)

Foxtrot Prospect

The Foxtrot prospect is defined by three 200m spaced RAB lines with the best results returned of 8m @ 2g/t and 5m @ 3.25g/t. No infill or follow up drilling has been completed. Gold mineralisation was intercepted in upper saprolite zone after Komatitic Basalt within quartz veining and associated alteration halos. Mineralisation is interpreted to be shallowly dipping (~30o) to the east and terminated to the south by the bounding NE structure, similar to other areas of significant mineralised, namely Peachtree and Lady Gladys.

A total of 8 holes for 549 metres has been completed with assays pending.

Lady Gladys Offset Prospect

The Offset prospect is a geochemical anomaly defined by a +20ppb soil anomaly. This anomaly is coincident with an aeromagnetic anomaly which suggests an east west striking structure. Historical drilling in the area also suggests east west striking quartz veining.

A close spaced RC program was conducted on a north south trending line to test this conceptual target. A total of six holes were drilled for 466 metres with assay results now pending.

Callion/Glasson Project Area (SWA 100%)

General Project Work

A review of the laterite deposits at Tuatara and Chamelion was completed during the period, with the aim of identifying low grade oxide ore sources to supplement existing planned mill feed.

Tuatara deposit was discovered by Delta Gold subsequently mined by Croesus the deposit but a significant portion of the resource remains.

Chamelion supergene/laterite deposit overlies a sequence of Banded Iron Formation (BIF) units and was also mined by Croesus in the early 2000’s. A remnant resource remains at the deposit and there is potential to define a primary resource within the BIF units. Previous wide spaced drilling has defined a number of ore grade intercepts worthy of follow up drilling.

6

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Callion Project

Callion deposit is located 14 km south of Eastern Goldfield’s Davyhurst processing plant.

A resource estimation was completed at Callion to determine the underground mining potential. Callion has previously operated as an open pit and underground mine. Previous resource estimates were open pit focussed and based on drilling results only. The historical underground resource was estimated from underground face and stope sampling and some resource drilling. Hardcopy underground geology and assay plans by WMC were scanned and registered in 3-dimensional space. On lode drives, stopes and the decline were digitised to establish a 3-dimensional model of historical underground mining. Sample assay and lode width data was also digitally captured from the registered drive plans and long sections.

==> picture [448 x 290] intentionally omitted <==

Figure 2. Long Section (looking west)

Underground observations show quartz veining is often drag folded and can reach up to 10m in width. The plunge of fold axes is dominantly to the south and varies from 20[o] to 70[o] , averaging 42[o] . There is a strong shoot control on the mineralisation, the shoot plunging at 35[o] to 45[o ] towards the south. The structural controls on the shoot development are thought to be related to the plunge of drag and isoclinal fold axes.

A new resource estimate was completed during the period. The underground resource extends from near surface to just below 6 level. Beneath this level is a conceptual resource was is defined by sparse drilling.

A significant underground resource has been defined at Callion and the next stage is targeted diamond and RC drilling to obtain additional structural, lithological and assay data. An extensive RC and diamond drill program is planned for Callion underground. The objective is to define a sizeable JORC 2012 resource that will be mined once a small open pit cutback is completed to re-establish the portal and decline refurbishment.

Glasson North Prospect

The Glasson North prospect consists of a series of drill holes adjacent to old workings approximately 700m north of the Glasson pit. A historical report reports intercepts of 1m @ 7.5g/t and 1m @ 6.48g/t. This area is interpreted to be the northern extension of Glasson structure which has been offset to the east.

A total of 6 RC holes for 397 metres were drilled across two lines to test beneath the old workings. Results are still pending.

7

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Gila Prospect

The prospect was first defined by 200m by 100m spaced vacuum drilling carried out by Croesus Mining in 2001. A peak value of 296ppb Au was returned. This work was followed up by 100m by 50m spaced RAB drilling across the anomaly which returned a best result of 2m @ 7.7g/t. Further RAB drilling carried out in 2005 intercepted 13m @ 8.6g/t in Upper Saprolite after Ultramafic. A program of RC holes was designed to test the extent and primary source of this mineralisation.

A total of eight RC holes for 769 metres were drilled across three lines. Drilling intercepted predominately Basalt with minor felsic bodies. Quartz veining and pyrite alteration was observed at the Basalt/Felsic contact. The results for the first three holes GARC001 to 003 were received with a best result of 1m @ 4.01g/t from GARC003, 50-51m and 2m @ 1.4g/t from GARC001, 34-36m.

The remainder of the results are pending.

Siberia Project Area (SWA 100%)

Regional Project Work

The Company engaged a professional consultancy to complete a program or 1:5,000 and 1:10,000 scale mapping over the Siberia and Black Rabbit tenements in the Davyhurst region. Previous mapping in the area is limited to 1:100,000 scale by the GSWA. The aim is produce a contiguous and internally consistent outcrop and solid geology maps at scales suitable for integration into a camp-scale 3D geology model.

The bulk of the field mapping component was completed during the period with the focus now shifting to 3D geological modelling. The Company is pleased with the results to date and believe additional technical value will continue to flow from this project.

Sandking and Missouri Project Area

Work continued at Sandking and Missouri with the aim of progressing the two deposits towards eventual mining. Entech Engineering Consultants continued to work on both deposits, culminating in the completion of open pit designs. Open pit physicals from both deposits were incorporated into a detailed cost model.

Technical detail relating to the structural architecture of these deposits is expected to flow from the above mentioned mapping and 3D modelling exercise. This detail will be incorporated into the deposit scale geological model which is intimately linked to the resource model. Ultimately this will result in a more robust, reliable and predictable mining model.

In addition, during the period resource definition and extensional RC and diamond drilling was planned at Missouri and Sandking. The aim of the drilling is to:

• Provide resource definition, infilling the existing drilling to confirm geometry, ore grades and widths modelled within the proposed open pit

• confirm the current mineralisation interpretation and resource estimate

• validate historic drilling to allow classification of the resources under the JORC 2012 code

Camperdown Project Area

Camperdown project are lies just to the north of Sandking deposit on tenements M24/633 and M24/352. The project area consists of two deposits, Palmerston/Camperdown and Berwick Moering.

Updated and corrected drilling data has been used to re-interpret the mineralisation and produce new resource models for both deposits. The resource estimates were then subjected to preliminary open pit optimisation studies. Physical and cost inputs are now well established and both deposits have potential to produce a small surplus at $1500/ounce gold price.

There is also underground mining potential at Palmerston. A steep northerly plunge to the high grade core is apparent and requires further investigation. Maximum drill depth is only approximately 150m below the surface so there is potential to expand the resource potential at depth with further drilling. Fourteen diamond holes for 1,525m have been planned at Palmerston and seven holes for 630m planned at Berwick Moering.

8

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Black Rabbit Deposit

The Black Rabbit Resource is situated within the Siberia South Project Area. The deposit was extensively RC drilled by Siberia Mining Corporation (SMC) and a resource of 496,020t @ 3.32 g/t Au for 53,012 oz (1g/t cut-off) was estimated. A subsequent resource estimate by Monarch Gold gave 434,000t @ 3.5g/t for ~49,000oz.

Diamond drilling was proposed to increase geological knowledge of the deposit and potentially better define the orientations of structures controlling mineralisation.

A total of four holes for 645 metres was completed during the period. All holes were geologically logged before selected zones were cut as half core and sampled. All samples were sent to assay laboratory for gold analysis by Fire assay with results now pending.

Pole Prospect

The Pole Prospects is situated approximately 10km south west of and within the same stratigraphic position as the Missouri/Sand King group of deposits. Mineralisation is dipping moderately to the south east. Pole has been historically mined by underground methods to a depth of 60 metres with ore extracted from multiple stopes. Previous drilling was generally targeting the zones of mineralisation known to have been mined with a best assay of 7.4g/t in Ri15. Follow up drilling was planned to better understand the deposit.

A total of six RC holes for 432 metres were drilled during the period. Two holes tested the northern extent of mineralisation intercepted in Ri15, north east of the main Pole old workings. A further four holes were drilled to test an anomalous 7m @ 2g/t RAB intercept (PORB063) drilled by Monarch in 2008. This hole lies ~970m along strike from Pole and may be related to minor old workings.

Results are pending.

South Pole Prospect

Four short east-west RAB lines have been drilled in this area to test beneath old workings (orientated northeast/southwest) at the contact between Peridotite and Komatite units of the Walter Williams Formation. A single line intercepted 21m @ 1.06g/t and 12m @ 1.06g/t in adjacent holes.

It is theorised that a number of these workings are actually strike orientated northwest/southeast, which is also supported by potential structural trends seen in the aeromagnetic imagery. This structural orientation are known to be the focus for gold mineralisation at the Basalt/Ultramafic contact and are therefore of interest to the exploration effort.

During the period two RC holes for 123 metres were completed over the prospect designed to test the northwest/southeast strike theory with assay results pending.

Mount Ida Project Area (SWA 100%)

Bombay Prospect

The Bombay prospect is situated 7km north west of the Mt Ida minesite, within the same stratigraphical and structural setting. All drilling to date has been by RC on a rough 100m spaced grid, over a 700m strike length. The best result returned was 10m @ 3.3g/t from IDRC011 from 36m. The controls on mineralisation and also on the tenor and size of primary gold mineralisation is poorly understood.

A three diamond hole program (including one scissor hole) was designed to increase the understanding of the mineralisation control and test mineralisation at depth.

A total of three holes for 484 metres were completed during the period with assays pending. Quartz veining and pyrite alteration was commonly observed over significant intervals within the target zones.

Regional Geochemistry Auger Sampling (SWA 100%)

A regional program of 1,338 auger drill holes across 12 tenements was completed by Eastern Goldfields in July 2015. A total of 1,008 holes were drilled at Davyhurst Central, 197 at Siberia and 133 at the Riverina/Mulline project.

This work was designed to infill existing Auger and Vacuum geochemistry sample coverage and drilled on a 400m by 80m spaced grid. Holes were drilled to an average depth of 1.5m targeting the most reactive interval to carbonate. All sample intervals were sieved to -2mm with a nominal sample size of 250g.

Samples were sent to Genalysis for gold and multi-element analysis with results now pending.

9

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

General Project Work (SWA 100%)

A regional program of XRF surveys was commenced over the entire project area - Mulline, Riverina, Davyhurst, Mt Ida and Lady Ida areas. A trial survey was also carried out on a number of RC drill holes from the Gila prospect in the Callion area.

The objective of this study is twofold, firstly to determine the presence of Scheelite (Tungsten), and secondly to determine if gold pathfinder minerals can be detected over known surface gold anomalies. Tungsten is being examined as it has been encountered at economic levels within some existing gold deposits. The fluorescence of scheelite is sometimes associated with native gold and it may therefore be possible to use it as an additional exploration tool. Supporting rockchip sampling and mapping was conducted at the same time. A total of 49 rockchip samples were sent to assay laboratory for analysis. This work is ongoing.

A number of prospect scale mapping projects were completed. This mapping focused on areas of known mineralisation and old mine working areas and will be used in future drill targeting.

Surface Mining M24/846

A field inspection of the third party surface mining activities on M24/846 was conducted. The purpose was to ensure the boundaries of the approved areas were being adhered to. Methods of mining and rehabilitation plan were discussed and progress photographs were taken.

Surface Mining M24/51

A pre disturbance field inspection of the proposed third party surface mining activities on M24/51 was undertaken. The purpose was to peg the boundaries with a DGPS, inspect equipment to be used and discuss methods of mining and the rehabilitation plan were discussed. The areas were traversed by the Company’s Environmental Representative. Pre disturbance photographs were taken over the area to be kept on file for comparison with rehabilitation progress.

Environmental Works

Annual Environmental Reports (AERs)

Annual Environmental Reports (AERs) for Siberia, Davyhurst and Riverina were submitted during the period. The new AERs included a review of disturbance mapping and a compliance audit. The mapping was significant with 48 new tenement disturbance maps created. The reported disturbance data saw significant positive change in the classification of disturbances which was verified from information gathered from field visits, differential global positioning surveys (DPGS), better quality higher resolution and more recent imagery.

Groundwater Licence (GWL)

• a) A renewal application for the Battery Borefield and Papertalk Borefield was submitted to the Department of Water. This was to securing the 1.2 Giga Litre annualised water allocation for the project.

• b) An application to Take Groundwater was submitted to the Department for the dewatering of the Golden Eagle Pit (M30/5) for future mining and the transfer and subsequent dewatering of the Lights of Israel (M30/72, M30/132) for processing purposes. This was advertised in the West Australian and Kalgoorlie Miner during March 2015.

• c) Siberia Pit water volumes were calculated from DGPS survey pickups in February. Water samples from prospective pits were taken on during March 2015 and sent for multi-element analysis. The results are to be used to support future approval documents and applications.

Verification of Survey Data

During the month of February a number of differential global positioning surveys (DGPS) were completed across infrastructure to confirm the validity of historical survey data. The project involved picking up roads, waste landforms, pits, tailings storage facilities, topsoil stockpiles and other key infrastructure. The data was then sent for review by the Company’s consulting GIS specialist to verify the existing database.

10

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Mine Closure Plan

Mine Closure Plan(s) (MCP) for the Siberia Project, Riverina Project and the Mt Ida Project were finalised and submitted during the period. In the lead up the following works were undertaken

• a) A series of stakeholder meetings was undertaken to discuss the post closure land uses and the development of the company’s 5 outstanding closure plans, details of these meetings have been provided below.

• b) An internal risk assessment was undertaken during January 2015 involving a cross section of the workforce to identify risks to be included in the plan, which then enabled the development of a closure and rehabilitation risk register.

• c) The development of a GIS database from historical data and government data that included environmental elements needed for the closure plans and future approvals was established. This included sourcing data relating to vegetation mapping, land tenure, hydrogeology, topography, and profiles of landforms.

Stakeholder Meetings

• Siberia - DMP site inspection February 2015, 3 representatives of the DMP’s Environmental Branch.

• Davyhurst - DPAW site visit February 2015, 2 representatives of DPAW’s Kalgoorlie Branch attended.

• Davyhurst site visit with Menzies Shire, February 2015, Manager of Works Department

• Meeting with Coolgardie Shire, February 2015, held at the shires regional office with the Manager of Works Department and CEO.

• Meeting with Kalgoorlie Shire, February 2015, at the shires regional office with the Manager of the Works Department and Manager of Strategic Planning.

• Site meeting with Mt Burgess Station (Pastoral Lease Holder) representatives February 2015, the key stakeholder/landholder for the Siberia Project.

• Site meeting with Riverina Station owner (Pastoral Lease Holder), the key stakeholder/landholder for the Riverina Project.

• GIS data of Mining Infrastructure provided to all stakeholders to determine if they would like to retain the features at mine relinquishment stage.

CSIRO TERN Site

Site meeting was held in March 2015 on M30/268 regarding CSIRO’s Terrestrial Ecosystem Research Network (TERN) site, a long term environmental monitoring station and related infrastructure establish on the tenement. The Company is working with the CSIRO to reduce / remove undesirable effects that may occur from on the ground activities.

Rehabilitation

In anticipation of future rehabilitation works Eastern Goldfield’s identified that it requires a supply of native seeds for revegetation work. It was assess that the works should be conducted internally from local species to ensure genetic compatibility in the region and to facilitate this process it has obtained a letter of support from the land manager of Credo Station to undertake seed collection activities. For the company to commence these activities it intends to submit an Application for a Scientific or Other Prescribed Purposes Licence to take native flora from Crown land for non-commercial purposes.

2. Operating Financial Results

The Company’s financial performance and result is attributable to its ongoing exploration, evaluation and development costs, project care and maintenance costs and corporate administration costs.

The Groups net loss after tax for the year was $7,701,667 (2014: $6,469,017).

Financial Position

At 30 June 2015 total Group assets were $3,325,037 (2014: $4,052,618) and net shareholders’ deficits was $40,896,509 (2014: $33,269,842).

11

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Liquidity and Capital Resources

The table below sets out summary information about the Group’s earnings and movement in shareholder wealth for the five years to 30 June 2015.

Performance Measures	FY 2015	FY 2014	FY 2013	FY 2012	FY 2011
	$	$	$	$	$
Net liabilities	(40,896,509)	(33,269,842)	(27,098,722)	(5,214,181)	(802,000)
Current assets	260,877	988,458	5,836,151	467,444	455,107
Cash	52,366	215,699	235,603	259,169	159,450
Contributed equity	168,040,331	167,965,331	167,665,331	164,665,331	164,665,331
Accumulated losses	(214,229,454)	(206,527,787)	(200,101,070)	(175,214,426)	(170,802,000)
EBITDA (1)	(7,700,103)	(6,487,547)	(19,657,117)	(3,809,317)	(4,712,846)
Net loss before tax	(7,701,667)	(6,469,017)	(24,887,000)	(4,413,000)	(4,563,000)
Share price at start of year	0.15*	0.15*	0.15*	0.15*	0.15*
Share price at end of year	0.15*	0.15*	0.15*	0.15*	0.15*
Return on capital	(0.08)	(0.007)	(0.027)	(0.005)	(0.006)

*The share price of the company remained unchanged since its suspension from the ASX in 2008.

(1) EBITDA represents earnings before interest, tax, depreciation and amortisation and is calculated as follows:

EBITDA	FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 $ $ $ $ $
Loss for the year Add back: Interest received Depreciation Amortisation EBITDA	(7,701,667) (6,469,017) (24,887,000) (4,413,000) (4,563,000) (2,434) (43,793) (74,117) (124,317) (149,846) - - 81,000 728,000 - 3,998 25,263 5,223,000 - -
	(7,700,103) (6,487,547) (19,657,117) (3,809,317) (4,712,846)

3. Key Developments

Significant Changes in the State of Affairs

Share based payments as Compensation

On the 8 July 2014, the Company’s 2013 AGM was held and shareholders approved the Employee Option Plan and the issue of a total 25,800,000 options to Messrs Fotios, Poynton, Zekulich and Readhead. These options were never issued, as approved and authorised by the Board.

Share Placement to Eastern Goldfields Directors’

On 11 July 2014 the Company issued 5,000,000 ordinary fully paid shares to Mr Craig Readhead and Mr John Poynton at a fair value price of 1.5 cents per share raising $75,000. The placement was approved by an ordinary resolution of shareholders at the Company’s Annual General Meeting held on 8 July 2014.

1 for 10 Share Consolidation

On 15 July 2014 the Company completed a share consolidation achieved through the conversion of ten fully paid ordinary shares into one fully paid ordinary share.

12

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

The below table summarises the Eastern Goldfields capital structure pre and post the share consolidation:

Class Name Pre- consolidation Post- consolidation E36 Escrowed shares 666,668 66,668 ORD Ordinary fully paid shares 917,820,993 91,783,555 Total issued capital 918,487,661 91,850,223

As a result of the share consolidation all references in this Annual Report relating to the number and value of shares allotted during and since the end of the financial year are stated on a post consolidation basis unless otherwise stated.

Lodgement of Prospectus

On 11 August 2014 the Company lodged with the Australian Securities and Investment Commission (‘ASIC’) a prospectus which is seeking to raise a minimum of $13,500,000 by the issue of up to 67,500,000 Shares at $0.20 per share and a maximum of $20,000,000 by the issue of up to 100,000,000 shares at $0.20 per Share with the ability to accept over subscriptions to raise an additional $5 million, in each case, before costs.

Board Changes

On 22 December 2014, Mr Wayne Zekulich has resigned as Director and Company Secretary of the Company. Mr Michael Fotios replaced Mr Zekulich as Company Secretary. Ms Shannon Coates was appointed as Company Secretary effective 26 November 2015.

Mr Alan Still was appointed as Non-Executive Director, replacing Mr John Poynton on 31 March 2015.

Significant Events after Reporting Date

Change of Company Name

The Company confirms that, further to shareholder approval at the 2013 Annual General Meeting held on 8 July 2014, the name of the Company has been changed from Swan Gold Mining Limited to Eastern Goldfields Limited.

The Australian Securities and Investments Commission recorded the change of name on 11 November 2015. The ASX ticker code changed to EGS on 3 December 2015.

Placement raises $1.6 million

Further to the Appendix 3B lodged on 27 November 2015, Eastern Goldfields is also pleased to announce it has completed a placement to sophisticated investors, issuing 10,666,667 fully paid ordinary shares at an issue price of $0.15 to raise $1.6 million.

The funds raised will be applied towards the development of the Davyhurst Gold Project, the funding of anticipated relist costs and general working capital.

Corporate Activities

The Company further advises that, Ms Shannon Coates has been appointed as Company Secretary effective 26 November 2015.

In December 2015, Eastern Goldfields has lodged two key documents (Notice of General Meeting and Prospectus) with the ASX, both of which are critical to an anticipated reinstatement of the Company’s securities on the ASX on or before the end of January 2016.

Prospectus

On 29 December 2015, Eastern Goldfields lodged a Prospectus to raise a minimum of $6m and a maximum of $10m of new equity in Eastern Goldfields Limited at $0.15 per shares with the ability to accept over subscriptions to raise an additional $5m.

General Meeting

A Notice of General Meeting was dispatched to shareholders on 1 December 2015. The meeting was held on 30 December 2015 and shareholders have approved the following resolutions:

• i) Placement of up to 66,666,667 shares at $0.15 each to sophisticated and professional investors. ii) Conversion of related parties debt – issue up to 90,390,313 shares at a deemed price of $0.15 to Investmet, Delta, Fotios Family Trust and other lenders nominee.

• iii) Conversion of unrelated parties debt – issue up to 47,371,287 shares at deemed price of $0.15 to other lenders nominee.

13

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

• iv) Conversion of DCM debt – issue up to 28,000,000 shares at deemed price of $0.15 to Investmet. v) Conversion of interest component of the debt and DCM debt of related parties – issue up to 19,795,701 at a deemed price of $0.15 to Investmet, Delta, Fotios Family Trust and other lenders nominee.

• vi) Conversion of interest component of debt of unrelated parties – issue up to 7,920,813 at deemed price of $0.15 to other lenders nominee.

• vii) Conversion of Investmet loan – issue up to 15,487,592 at an issue price of $0.15. viii) Conversion of interest component of Investmet loan – issue up to 2,053,061 at a price of $0. ix) Issue of 15,000,000 Options Mr Michael Fotios under the Company’s Option Plan. x) Issue of 3,600,000 Options Mr Alan Still under the Company’s Option Plan. xi) Issue of 3,600,000 Options Mr Craig Redhead under the Company’s Option Plan.

• xii) Issue of 87,717 shares at a deemed price of $0.15 to Investmet in lieu of fees. xiii) Issue of 2,493,333 shares at a deemed price of $0.15 to Mr Michael Fotios in lieu of fees. xiv) Issue of 7,851,997 shares at a deemed price of $0.15 to Whitestone in lieu of fees. xv) Issue of 3,973,109 shares at a deemed price of $0.15 to Delta in lieu of fees.

• xvi) Issue of 27,500,000 options to a financier of the Company. xvii) Selective buy back and cancel 8,892,922 shares currently held by Stirling Gold. xviii) Approval for Investment and Mr Michael Fotios to increase their relevant interest in the Company. xix) Conversion of loan agreements up to an aggregate of $10,000,000 and the issue of up to 66,666,667 Shares at a deemed price of $0.15 each upon conversion of the principal and interest of such loans to the 2015 lenders.

• xx) Ratification of the issue of 10,666,667 shares at an issue price of $0.15 each, a placement completed in November 2015.

On 30 December 2015, the Company announced a revised settlement arrangement with Stirling Resources Pty Ltd. Eastern Goldfields has entered into a Settlement Deed with Stirling which provides for the following:

• Payment of the remainder of $529,000 pursuant to the previous settlement arrangement to occur in two tranches of $150,000 on 31 December 2015 and $379,000 plus accrued interest on the diminishing balance of the previous settlement amount since 1 July 2015 at a rate of 6 per cent per annum to occur on 8 January 2016;

• Upon payment of the settlement amounts, all amounts owing to Stirling under the loan facility agreement with the Company and other parties, and all related security, will be released;

• Acknowledgement of the amount of $1,000,000 already paid by Eastern Goldfields under the previous settlement arrangement;

• Agreement to the share buy-back of all of the shares held by Stirling in Eastern Goldfields;

• A further payment of $150,000 by Eastern Goldfields to be made on the earlier of the date which is 3 months after commencement of gold production at the Davyhurst gold operation and 30 September 2016; and

• Subject to commencement of gold production at the Davyhurst gold operation, an issue of 4.5 million ordinary shares by Eastern Goldfields in two equal tranches on the date of payment of the further $150,000 referred to above and the earlier of the date which is within 6 months of commencement of gold production and 31 December 2016.

On 4 January 2016, the Company announced that the ASX has granted the Company an extension within which to obtain reinstatement to trading of the Company’s securities on the ASX to 24 March 2016.

If Eastern Goldfields’ securities are not reinstated to trading by 24 March 2016, the Company will be automatically removed from the official list of the ASX.

The Company also advises that it has invested significant Board and management time in 2015 into securing a Project Loan sufficient to re-commission the Davyhurst mine and re-commence gold production at the Davyhurst Gold Project in 2016, and a successful conclusion to those discussions is anticipated in the coming weeks.

DIVIDENDS

No amounts were paid or declared by way of dividend since the end of the previous financial year. The directors do not recommend the payment of a dividend in respect of the current financial year.

14

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Director’s Interests in the shares and options of Eastern Goldfields

Details of directors’ interests in the securities of Eastern Goldfields as at the date of this report are as follows, which are on a post share consolidation basis:

Director	Fully paid shares	Unlisted options
Michael Fotios1	41,238,671	-
Alan Still	-	-
Craig Readhead	166,667	-

1 The shares are held by Investmet Limited, a Company of which Mr Fotios is a substantial shareholder and Chairman.

COMPANY SECRETARIES

Shannon Coates (appointed 26 November 2015)

Michael Fotios, BSc (Hons) MAusIMM (appointed 22 December 2014, resigned 26 November 2015) Wayne Zekulich BBus, FCA, FFTP (resigned 22 December 2014)

MEETINGS OF DIRECTORS

The number of meetings of the Board of Directors held during the year and the number of meetings attended by each director was as follows:

each director was as follows:
Michael Fotios Craig Readhead Alan Still John Poynton Wayne Zekulich	Number held whilst in office 1 1 - 1 1	Number attended
		1 1 - 1 1

15

EASTERN GOLFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

REMUNERATION REPORT (audited)

This Remuneration Report outlines the director and executive remuneration arrangements of the Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report Key Management Personnel are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the parent company. Unless otherwise indicated, all key management personnel held their position as a throughout the entire financial year and up to the date of this report.

Details of key management personnel during the year up to the date of this report:

Directors Michael Fotios[1] Executive Chairman and Company Secretary Alan Still[2] Non-executive Director John Poynton[3] Non-executive Director Craig Readhead Non-executive Director Wayne Zekulich[4] Non-executive Director and Company Secretary

1 Mr Fotios was appointed Company Secretary on the 22 December 2014 2 Mr Still was appointed on 31 March 2015

3 Mr Poynton resigned as Director on 31 March 2015 4

• Mr Zekulich resigned as Director and Company Secretary on 22 December 2014

Principles used to determine the nature and amount of remuneration

Directors and executives remuneration

Overall remuneration policies are determined by the Board of Directors and are adapted to reflect competitive market and business conditions. Within this framework, the board considers remuneration policies and practices generally, and determines specific remuneration packages and other terms of employment for executive directors and senior management. Executives may be provided with longer-term incentives through participation in option schemes, which serve to align the interests of the executives with those of shareholders. Executive remuneration and other terms of employment are reviewed annually by the Board having regard to performance and relevant comparative information.

Non-executive directors’ remuneration

The Company’s Policy is to remunerate non- executive directors (NED’s) at market rates (for comparable companies) for time commitment and responsibilities. Fee’s for non-executive directors are not linked to the performance of the company, however to align directors interest with shareholders interest directors are encouraged to hold shares in the Company. The amount of aggregate remuneration sought to be approved by shareholders and the fee structure is reviewed annually against fees paid to NED’s of comparable companies.

Payments to non- executive directors reflect the demands that are made on, and the responsibilities of the NED’s. Non-executive director’s fee and payments are reviewed annually by the Board. The Company’s constitution and the ASX listing rules specify that the NED fee pool shall be determined from time to time by a general meeting.

In accordance with current corporate governance practices, the structure for the remuneration of non-executive directors and senior executives is separate and distinct. Shareholders approve the maximum aggregate remuneration for non-executive directors, with the current approved limit being $500,000. The Board determines the actual payments to directors. The Board approves any consultancy arrangements for non-executive directors who provide services outside of and in addition to their duties as non-executive directors.

At the date of this report, the Company has yet to hold the 2014 AGM to approve the remuneration report for the year ending 30 June 2014. The Board acknowledge the non-compliance with the Corporations Act 2001 of holding an AGM in each calendar year. The Company is in the process of organising the 2014 and 2015 AGM.

Share based payments as Compensation

On the 8 July 2014, the Company’s 2013 AGM was held and shareholders approved the Employee Option Plan and the issue of a total 25,800,000 options to Messrs Fotios, Poynton, Zekulich and Readhead. These options were never issued, as approved and authorised by the Board.

Remuneration Strategy

The Company has yet to adopt any remuneration strategy and will review this strategy at the appropriate time.

16

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

REMUNERATION REPORT (audited)

Details of remuneration

The following table discloses details of the nature and amount of each element of the emoluments of each director of Eastern Goldfields and each of the officers receiving the highest emoluments for the year ended 30 June 2015.

30 June 2015 Name	Primary (short-term)	Primary (short-term)	Primary (short-term)	Post-employment	Equity (share- based payments)
	Salary and directors fees	Consulting fees	Non- monetary benefits	Superannuation		Total
Directors Michael Fotios Craig Readhead Alan Still1 John Poynton2 Wayne Zekulich3	$ 60,000 40,000 10,000 26,667 20,000	$ - - - - -	$ - - - - -	$ - - - - -	$ - - - - -	$ 60,000 40,000 10,000 26,667 20,000
	156,667	-	-	-	-	156,667

1 Appointed on 31 March 2015 2 Resigned on 31 March 2015 3 Resigned on 22 December 2014

30 June 2014 Name	Primary (short-term)	Primary (short-term)	Primary (short-term)	Post-employment	Equity (share- based payments)
	Salary and directors fees	Consulting fees	Non- monetary benefits	Superannuation		Total
Directors Michael Fotios John Poynton Craig Readhead Wayne Zekulich Executives LindaPaini1	$ 60,000 40,000 40,000 40,000 38,370	$ - - - - -	$ - - - - -	$ - - - - 3,549	$ - - - - -	$ 60,000 40,000 40,000 40,000 41,919
	218,370	-	-	3,549	-	221,919
1Resigned on 15 January 2014 There were no proportions of any elements of Key Management Personnel remuneration that related to performance. Other than directors of Eastern Goldfields, there were no other executive officers of the Group during the year. There were no options held or granted to key management personnel during the years ended 2015 and 2014. Shareholdings of key management personnel (consolidated) 30 June 2015 Balance at 1 July 2014 On the exercise of options Net change other Balance at 30 June 2015 Directors Michael Fotios1 412,386,710 - (371,148,039)5 41,238,671 Alan Still2 - - - - John Poynton3 10,000,000 - (8,666,666)5, 6 1,333,334 Craig Readhead - - 166,6675,6 166,667 Wayne Zekulich4 - - - - 422,386,710 - (379,648,038) 42,738,672

1Shares were acquired by Investmet Ltd, a company Mr Fotios is a director of and substantial shareholder of

2 Appointed on 31 March 2015

3 Resigned on 31 March 2015

• 4 Resigned on 22 December 2014

5Consolidation of 1 for 10 shares on 15 July 2014

6Participation in share placement

17

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

Shareholdings of key management personnel (consolidated)

30 June 2014	Balance at	On the		Balance at
	1 July 2013	exercise of options	Net change other	30 June 2014
Directors
Michael Fotios1	412,386,710	-	-	412,386,710
John Poynton	10,000,000	-	-	10,000,000
Craig Readhead	-	-	-	-
Wayne Zekulich	-	-	-	-
Executives
LindaPaini	-	-	-	-
	422,386,710	-	-	422,386,710

1Shares were acquired by Investmet Ltd, a company Mr Fotios is a director of and substantial shareholder of:

150,000,000 – 18 April 2013 39,849,657 – 21 June 2013 222,537,053 – 7 May 2013 412,386,710

No shares were issued during the year as a result of the exercise of options granted as part of remuneration. There were no alterations to the terms and conditions of options granted as remuneration since their grant date. There were no forfeitures during the period.

All equity transactions with key management personnel have been entered into under terms and conditions no more favourable than those the Group would have adopted if dealing at arm’s length.

Loans to key management personnel

There were no loans to key management personnel during the financial year.

Other transactions with directors

Transactions during the year between the Group and directors or their director-related entities :

• Delta Resources Management Pty Ltd, a Company which Mr Michael Fotios is a substantial shareholder in, and Chairman of, provided technical and administrative support to the Company and was paid $204,800 (30 June 2014: $506,409). A total of $509,592 remains due and payable as at the year end.

• Whitestone Drilling Pty Ltd, a Company which is 100% owned by Investmet Ltd, a company which Mr Michael Fotios is a substantial shareholder in, and Chairman of provided consulting services to the Company and was paid $43,609 (30 June 2014: $411,879). A total of $211,976 remains due and payable as at the year end.

• Allion Legal, a firm which Mr Craig Readhead is a Partner, received $210,207 (30 June 2014: $376,681) for legal advice provided to the Company. These fees have not been included in directors’ remuneration as they were not paid to Mr Readhead in relation to the management of the affairs of the Company. A total of $162,898 remains due and payable as at the year end.

Service agreements

The terms of employment for executive directors and specified executives were not formalised in service agreements during the year ended 30 June 2015.

Company performance

The table below shows the performance of the Group as measured by its earnings per share. In the past five years the Group has incurred losses and no dividends have been paid. Any improvement to earnings is viewed as a long term position that is not yet fully determinable.

Loss per share	30 June 2015 30 June 2014 30 June 2013 30 June 2012 30 June 2011 Cents Cents Cents Cents Cents (0.08) (0.07) (0.30) (0.59) (0.61)

End of Remuneration Report (audited)

18

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES 30 JUNE 2015 FULL YEAR REPORT DIRECTORS’ REPORT

ENVIRONMENTAL REGULATIONS

The Group is subject to significant environmental regulation in respect to its mineral exploration activities. These obligations are regulated under relevant government authorities within Australia. The Group is a party to exploration and mine development licences. Generally, these licences specify the environmental regulations applicable to exploration and mining operations in the respective jurisdictions. The Group aims to ensure that it complies with the identified regulatory requirements in each jurisdiction in which it operates.

Compliance with environmental obligations is monitored by the Board of Directors. No environmental breaches have been notified to the Group by any government agency during the year ended 30 June 2015.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of court or to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company, for all or any part of those proceedings.

NON-AUDIT SERVICES

Non-audit services provided by Ernst & Young during their period as external auditors for taxation consulting advice was $nil (2014: $32,500). Further details of remuneration of the auditors are set out at Note 15.

AUDITOR INDEPENDENCE

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included immediately following the Directors’ Report and forms part of this Directors’ Report.

INDEMNIFICATION OF AUDITORS

To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

The Company has entered into indemnity agreements with each of the directors and officers of the Company. Under the agreements, the Company will indemnify those officers against certain claims or for any expenses or costs which may arise as a result of work performed in their respective capacities as officers of the Company or any related entities.

The Company has taken out an insurance policy insuring Directors and Officers of the Company against any liability arising from a claim bought by a third party against the Company or its Directors or Officers, and against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in their capacity as a Director or Officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company.

During the year, the Company paid premiums in respect of the above insurance policy. The contract prohibits the disclosure of the nature of the liabilities and/or the amount of the premium.

Signed in accordance with a resolution of the directors.

==> picture [94 x 61] intentionally omitted <==

Michael Fotios Executive Chairman

Perth, Western Australia 8 February 2016

19

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

==> picture [71 x 81] intentionally omitted <==

Auditor’s independence declaration to the Directors of Eastern Goldfields Limited

As lead auditor for the audit of Eastern Goldfields Limited for the financial year ended 30 June 2015, I declare to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit

• b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Eastern Goldfields Limited and the entities it controlled during the financial year.

==> picture [150 x 51] intentionally omitted <==

Ernst & Young

==> picture [132 x 46] intentionally omitted <==

G H Meyerowitz Partner 8 February 2016

20

GHM:JT:EASTERNGOLDFIELDS:006

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

NOTES Revenue 5(a) Other income 5(b) Employee and directors – remuneration expense 5(c) Site care and maintenance costs Corporate and administrative expenses 5(d) Other expenses Finance costs 5(e) Impairment of property, plant and equipment 8 Exploration expenditure Loss before income tax expense Income tax expense 6 Loss for the year Other comprehensive income for the year Total comprehensive loss for the year Attributable to: - Members of Eastern Goldfields - Non-controlling interest Basic and diluted loss per share (cents per share) 24	CONSOLIDATED 2015 2014 $ $ 2,434 43,793 63,082 2,152,525 (539,088) (438,194) (39,806) (88,807) (655,351) (1,044,157) (52,038) (36,061) (2,349,578) (1,923,206) (3,998) (25,263) (4,127,324) (5,109,647) (7,701,667) (6,469,017) - - (7,701,667) (6,469,017) - - (7,701,667) (6,469,017) (7,701,667) (6,426,717) - (42,300) (7,701,667) (6,469,017) 0.08 0.07	CONSOLIDATED 2015 2014 $ $ 2,434 43,793 63,082 2,152,525 (539,088) (438,194) (39,806) (88,807) (655,351) (1,044,157) (52,038) (36,061) (2,349,578) (1,923,206) (3,998) (25,263) (4,127,324) (5,109,647) (7,701,667) (6,469,017) - - (7,701,667) (6,469,017) - - (7,701,667) (6,469,017) (7,701,667) (6,426,717) - (42,300) (7,701,667) (6,469,017) 0.08 0.07
		(6,469,017)
		-
		(6,469,017)
		-
		(6,469,017)
		(6,426,717) (42,300)
		(6,469,017)
		0.07

The above statement should be read in conjunction with the accompanying notes.

21

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES AS AT 30 JUNE 2015 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

NOTES ASSETS CURRENT ASSETS Cash and cash equivalents 23 Trade and other receivables 7 Inventory TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables 7 Property, plant and equipment 8 TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables 9 Loans and borrowings 10 Provisions 11 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions 11 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET LIABILITIES SHAREHOLDERS’ DEFICIT Contributed equity 12 Accumulated losses Reserves 13 Parent entity interest TOTAL SHAREHOLDERS’ DEFICIT	CONSOLIDATED 2015 2014 $ $ 52,366 215,699 197,600 772,759 10,911 - 260,877 988,458 64,160 64,160 3,000,000 3,000,000 3,064,160 3,064,160 3,325,037 4,052,618 4,939,837 1,409,917 35,081,218 31,706,201 52,391 58,242 40,073,446 33,174,360 4,148,100 4,148,100 4,148,100 4,148,100 44,221,546 37,322,460 (40,896,509) (33,269,842) 168,040,331 167,965,331 (214,229,454) (206,527,787) 5,292,614 5,292,614 (40,896,509) (33,269,842) (40,896,509) (33,269,842)	CONSOLIDATED 2015 2014 $ $ 52,366 215,699 197,600 772,759 10,911 - 260,877 988,458 64,160 64,160 3,000,000 3,000,000 3,064,160 3,064,160 3,325,037 4,052,618 4,939,837 1,409,917 35,081,218 31,706,201 52,391 58,242 40,073,446 33,174,360 4,148,100 4,148,100 4,148,100 4,148,100 44,221,546 37,322,460 (40,896,509) (33,269,842) 168,040,331 167,965,331 (214,229,454) (206,527,787) 5,292,614 5,292,614 (40,896,509) (33,269,842) (40,896,509) (33,269,842)
		988,458
		64,160 3,000,000
		3,064,160
		4,052,618
		1,409,917 31,706,201 58,242
		33,174,360
		4,148,100
		4,148,100
		37,322,460
		(33,269,842)
		167,965,331 (206,527,787) 5,292,614
		(33,269,842)
		(33,269,842)

The above statement should be read in conjunction with the accompanying notes.

22

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of the parent entity

	Attributable to equity holders of the parent entity
Consolidated	Contributed equity Accumulated losses Reserves Total Non- controlling interests Total deficit $ $ $ $ $ $
At 1 July 2013 Loss for the year Total comprehensive loss for the year Issued of ordinary shares (note 12) At 30 June 2014 Loss for the year Total comprehensive loss for the year Issued of ordinary shares (note 12) At 30 June 2015	167,665,331 (200,101,070) 5,292,614 (27,143,125) 42,300 (27,100,825)
	- (6,426,717) - (6,426,717) (42,300) (6,469,017)
	- (6,426,717) - (6,426,717) (42,300) (6,469,017) 300,000 - - 300,000 - 300,000 167,965,331 (206,527,787) 5,292,614 (33,269,842) - (33,269,842)
	- (7,701,667) - (7,701,667) - (7,701,667)
	- (7,701,667) - (7,701,667) - (7,701,667) 75,000 - - 75,000 - 75,000 168,040,331 (214,229,454) 5,292,614 (40,896,509) - (40,896,509)

The above statement should be read in conjunction with the accompanying notes.

23

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 CONSOLIDATED STATEMENT OF CASH FLOWS

		CONSOLIDATED	CONSOLIDATED
	NOTES	2015	2014
		$	$
Cash flows from operating activities
Receipts from customers		-	56,764
Payments to suppliers and employees		(2,930,662)	(6,671,471)
Interest received	5a	2,434	43,793
Finance costs paid	5e	(353,928)	-
Interest paid		-	(6,268)
Research and development rebate		788,703	-
Net cash flows used in operating activities	23	(2,493,453)	(6,577,182)
Cash flows from investing activities
Payments for purchase of property, plant and equipment	8	(3,998)	(25,263)
Proceeds from sale of tenement		-	1,400,000
Proceeds from return of security bonds		-	5,196,701
Cash reclassified from security bond	7	-	(64,160)
Net cash flows (used in) from investing activities		(3,998)	6,507,278
Cash flows from financing activities
Proceeds from share issue	12	75,000	300,000
Proceeds from share application	9	879,750	-
Proceeds from loan advances	10	1,379,368	85,000
Repayment of loans		-	(335,000)
Net cash flows from financing activities		2,334,118	50,000
Net increase / (decrease) in cash and cash equivalents		(163,333)	(19,904)
Cash and cash equivalents at the beginning of the financial year		215,699	235,603
Cash and cash equivalents at the end of the financial year	23	52,366	215,699

The above statement should be read in conjunction with the accompanying notes.

24

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

The financial report of Eastern Goldfields for the year ended 30 June 2015 was authorised for issue in accordance with a resolution of the Directors on the date of signing of the Directors’ Report. Eastern Goldfields is a for-profit company limited by shares that is incorporated and domiciled in Australia.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The financial report is a general-purpose financial report which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has been prepared on a historical cost basis. The financial report is presented in Australian dollars.

(b) Statement of compliance

• The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

All new and amended Accounting Standards and Interpretations effective from 1 July 2014 have been applied for the first time. There was no material impact on the financial report on adoption of these Standards and Interpretations which included:

Reference	Title
AASB 2012-3	Amendments to Australian Accounting Standards-Offsetting Financial Assets and Financial Liabilities AASB 2012-3 adds application guidance to AASB 132_Financial Instruments: Presentation_to address inconsistencies identified in applying some of the offsetting criteria of AASB 132, including clarifying the meaning of "currently has a legally enforceable right of set-off" and that some gross settlement systems may be considered equivalent to net settlement.
Interpretation 21	Levies This Interpretation confirms that a liability to pay a levy is only recognised when the activity that triggers the payment occurs. Applying the going concern assumption does not create a constructive obligation.
AASB 2013-3	Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets AASB 2013-3 amends the disclosure requirements in AASB 136_Impairment of Assets_. The amendments include the requirement to disclose additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal.
AASB 1031	Materiality The revised AASB 1031 is an interim standard that cross-references to other Standards and the F_ramework (_issued December 2013) that contain guidance on materiality. AASB 1031 will be withdrawn when references to AASB 1031 in all Standards and Interpretations have been removed. AASB 2014-1 Part C issued in June 2014 makes amendments to eight Australian Accounting Standards to delete their references to AASB 1031. The amendments are effective from 1 July 2014*.
AASB 2013-9	Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments The Standard contains three main parts and makes amendments to a number of Standards and Interpretations. Part A of AASB 2013-9 makes consequential amendments arising from the issuance of AASB CF 2013-1. Part B makes amendments to particular Australian Accounting Standards to delete references to AASB 1031 and also makes minor editorial amendments to various other standards. Part C makes amendments to a number of Australian Accounting Standards, including incorporating Chapter 6 Hedge Accounting_into AASB 9_Financial Instruments.
AASB 2014-1 Part A -Annual Improvements 2010–2012 Cycle	AASB 2014-1 Part A: This standard sets out amendments to Australian Accounting Standards arising from the issuance by the International Accounting Standards Board (IASB) of International Financial Reporting Standards (IFRSs)Annual Improvements to IFRSs 2010–2012 Cycle_and_Annual Improvements to IFRSs 2011–2013 Cycle. Annual Improvements to IFRSs 2010–2012 Cycle addresses the following items: ► AASB 2 - Clarifies the definition of 'vesting conditions' and 'market condition' and introduces the definition of 'performance condition' and 'service condition'. ► AASB 3 - Clarifies the classification requirements for contingent consideration in a business combination by

25

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reference	Title
	removing all references to AASB 137. ► AASB 8 - Requires entities to disclose factors used to identify the entity's reportable segments when operating segments have been aggregated. An entity is also required to provide a reconciliation of total reportable segment assets to the entity's total assets. ► AASB 116 & AASB 138 - Clarifies that the determination of accumulated depreciation does not depend on the selection of the valuation technique and that it is calculated as the difference between the gross and net carrying amounts. ► AASB 124 - Defines a management entity providing KMP services as a related party of the reporting entity. The amendments added an exemption from the detailed disclosure requirements in paragraph 17 of AASB 124 _Related Party Disclosures_for KMP services provided by a management entity. Payments made to a management entity in respect of KMP services should be separately disclosed.
AASB 2014-1 Part A -Annual Improvements 2011–2013 Cycle	Annual Improvements to IFRSs 2011–2013 Cycle addresses the following items: ► AASB 13 - Clarifies that the portfolio exception in paragraph 52 of AASB 13 applies to all contracts within the scope of AASB 139 or AASB 9, regardless of whether they meet the definitions of financial assets or financial liabilities as defined in AASB 132. ► AASB 140 - Clarifies that judgment is needed to determine whether an acquisition of investment property is solely the acquisition of an investment property or whether it is the acquisition of a group of assets or a business combination in the scope of AASB 3 that includes an investment property. That judgment is based on guidance in AASB 3.

The following Accounting Standards and Interpretations have been issued by the AASB but are not yet effective for the year ending 30 June 2015. The Group has not yet early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. The impact of the new and amended standards still needs to be determined.

Reference	Title	Summary	Application	Application date for Group
			date of standard
AASB 9	Financial Instruments	AASB 9 (December 2014) is a new standard which replaces AASB 139. This new version supersedes AASB 9 issued in December 2009 (as amended) and AASB 9 (issued in December 2010) and includes a model for classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantially-reformed approach to hedge accounting. AASB 9 is effective for annual periods beginning on or after 1 January 2018. However, the Standard is available for early adoption. The own credit changes can be early adopted in isolation without otherwise changing the accounting for financial instruments. Classification and measurement AASB 9 includes requirements for a simpler approach for classification and measurement of financial assets compared with the requirements of AASB 139. There are also some changes made in relation to financial liabilities. The main changes are described below. Financial assets a. Financial assets that are debt instruments will be classified based on (1) the objective of the entity's business model for managing the financial assets; (2) the characteristics of the contractual cash flows. b. Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument. c. Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases. Financial liabilities	1 January 2018	1 July 2018

26

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reference	Title	Summary	Application	Application date for Group
			date of
			standard
		Changes introduced by AASB 9 in respect of financial liabilities are limited to the measurement of liabilities designated atfair value through profit or loss (FVPL)using the fair value option. Where the fair value option is used for financial liabilities, the change in fair value is to be accounted for as follows: ► The change attributable to changes in credit risk are presented in other comprehensive income (OCI) ► The remaining change is presented in profit or loss AASB 9 also removes the volatility in profit or loss that was caused by changes in the credit risk of liabilities elected to be measured at fair value. This change in accounting means that gains or losses attributable to changes in the entity’s own credit risk would be recognised in OCI. These amounts recognised in OCI are not recycled to profit or loss if the liability is ever repurchased at a discount. Impairment The final version of AASB 9 introduces a new expected- loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new Standard requires entities to account for expected credit losses from when financial instruments are first recognised and to recognise full lifetime expected losses on a more timely basis. Hedge accounting Amendments to AASB 9 (December 2009 & 2010 editions and AASB 2013-9) issued in December 2013 included the new hedge accounting requirements, including changes to hedge effectiveness testing, treatment of hedging costs, risk components that can be hedged and disclosures. Consequential amendments were also made to other standards as a result of AASB 9, introduced by AASB 2009-11 and superseded by AASB 2010-7, AASB 2010-10 and AASB 2014-1 – Part E. AASB 2014-7 incorporates the consequential amendments arising from the issuance of AASB 9 in Dec 2014. AASB 2014-8 limits the application of the existing versions of AASB 9 (AASB 9 (December 2009) and AASB 9 (December 2010)) from 1 February 2015 and applies to annual reporting periods beginning on after1January 2015.
AASB 2014- 3	Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & AASB 11]	AASB 2014-3 amends AASB 11_Joint Arrangements_to provide guidance on the accounting for acquisitions of interests in joint operations in which the activity constitutes a business. The amendments require: (a) the acquirer of an interest in a joint operation in which the activity constitutes a business, as defined in AASB 3_Business Combinations_, to apply all of the principles on business combinations accounting in AASB 3 and other Australian Accounting Standards except for those principles that conflict with the guidance in AASB 11; and (b) the acquirer to disclose the information required by AASB 3 and other Australian Accounting Standards for business combinations.	1 January 2016	1 July 2016
		This Standard also makes an editorial correction to AASB 11
AASB 2014- 4	Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to AASB 116 and AASB 138)	AASB 116 Property Plant and Equipment and AASB 138 Intangible	1 January 2016	1 July 2016
		Assets both establish the principle for the basis of depreciation and
		amortisation as being theexpectedpattern of consumption of the future
		economic benefits of an asset.
		The IASB has clarified that the use of revenue-based methods to
		calculate the depreciation of an asset is not appropriate because
		revenue generated by an activity that includes the use of an asset
		generally reflects factors other than the consumption of the economic
		benefits embodied in the asset.
		The amendment also clarified that revenue is generally presumed to be
		an inappropriate basis for measuring the consumption of the economic
		benefits embodied in an intangible asset. This presumption, however,
		can be rebutted in certain limited circumstances.

27

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reference	Title	Summary	Application	Application
			date of	date for
			standard	Group
AASB 15	Revenue from Contracts with Customers	AASB 15_Revenue from Contracts with Customers_replaces the existing revenue recognition standards AASB 111_Construction_ Contracts, AASB 118_Revenue_and related Interpretations (Interpretation13 Customer Loyalty Programmes, Interpretation 15_Agreements for the Construction of Real Estate,_Interpretation 18Transfers of Assets from Customers, Interpretation 131 _Revenue—Barter Transactions Involving Advertising Services_and Interpretation 1042Subscriber Acquisition Costs in the Telecommunications Industry).AASB 15 incorporates the requirements of IFRS 15_Revenue from Contracts with Customers_ issued by the International Accounting Standards Board (IASB) and developed jointly with the US Financial Accounting Standards Board (FASB). AASB 15 specifies the accounting treatment for revenue arising from contracts with customers (except for contracts within the scope of other accounting standards such as leases or financial instruments).The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps: (a) Step 1: Identify the contract(s) with a customer (b) Step 2: Identify the performance obligations in the contract (c) Step 3: Determine the transaction price (d) Step 4: Allocate the transaction price to the performance obligations in the contract (e) Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation	1 January 2018	1 July 2018
		Currently, AASB 15 is effective for annual reporting periods
		commencing on or after 1 January 2017. Early application is
		permitted. (Note A)
		AASB 2014-5 incorporates the consequential amendments to a number
		Australian Accounting Standards (including Interpretations) arising
		from the issuance of AASB 15.
AASB 2014- 9	Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements	AASB 2014-9 amends AASB 127_Separate Financial Statements_, and consequentially amends AASB 1_First-time Adoption of Australian_ Accounting Standards_and AASB 128_Investments in Associates and Joint Ventures, to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements. AASB 2014-9 also makes editorial corrections to AASB 127. AASB 2014-9 applies to annual reporting periods beginning on or after 1 January 2016. Early adoption permitted.	1 January 2016	1 July 2016
AASB 2014- 10	Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	AASB 2014-10 amends AASB 10 C_onsolidated Financial Statements_ and AASB 128 to address an inconsistency between the requirements in AASB 10 and those in AASB 128 (August 2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require: (a) a full gain or loss to be recognised when a transaction involves a business (whether it is housed in a subsidiary or not); and (b) a partial gain or loss to be recognised when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. AASB 2014-10 also makes an editorial correction to AASB 10. AASB 2014-10 applies to annual reporting periods beginning on or after 1 January 2016. Early adoption permitted.	1 January 2016	1 July 2016
AASB 2015- 1	Amendments to Australian Accounting Standards – Annual Improvements to Australian	The subjects of the principal amendments to the Standards are set out below:	1 January 2016	1 July 2016

28

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reference	Title	Summary	Application	Application
			date of	date for
			standard	Group
	Accounting Standards 2012–2014 Cycle	AASB 5_Non-current Assets Held for Sale and Discontinued_ Operations: • Changes in methods of disposal – where an entity reclassifies an asset (or disposal group) directly from being held for distribution to being held for sale (or visa versa), an entity shall not follow the guidance in paragraphs 27–29 to account for this change. AASB 7_Financial Instruments: Disclosures: • Servicing contracts - clarifies how an entity should apply the guidance in paragraph 42C of AASB 7 to a servicing contract to decide whether a servicing contract is ‘continuing involvement’ for the purposes of applying the disclosure requirements in paragraphs 42E–42H of AASB 7. • Applicability of the amendments to AASB 7 to condensed interim financial statements - clarify that the additional disclosure required by the amendments to AASB 7 _Disclosure–Offsetting Financial Assets and Financial Liabilities_is not specifically required for all interim periods. However, the additional disclosure is required to be given in condensed interim financial statements that are prepared in accordance with AASB 134_Interim Financial Reporting_when its inclusion would be required by the requirements of AASB 134. AASB 119_Employee Benefits: • Discount rate: regional market issue - clarifies that the high quality corporate bonds used to estimate the discount rate for post-employment benefit obligations should be denominated in the same currency as the liability. Further it clarifies that the depth of the market for high quality corporate bonds should be assessed at the currency level. AASB 134_Interim Financial Reporting:_ • Disclosure of information ‘elsewhere in the interim financial report’ - amends AASB 134 to clarify the meaning of disclosure of information ‘elsewhere in the interim financial report’ and to require the inclusion of a cross- reference from the interim financial statements to the location of this information.
AASB 2015- 2	Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101	The Standard makes amendments to AASB 101_Presentation of_ _Financial Statements_arising from the IASB’s Disclosure Initiative project. The amendments are designed to further encourage companies to apply professional judgment in determining what information to disclose in the financial statements. For example, the amendments make clear that materiality applies to the whole of financial statements and that the inclusion of immaterial information can inhibit the usefulness of financial disclosures. The amendments also clarify that companies should use professional judgment in determining where and in what order information is presented in the financial disclosures.	1 January 2016	1 July 2016
AASB 2015- 3	Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality	The Standard completes the AASB’s project to remove Australian guidance on materiality from Australian Accounting Standards.	1 July 2015	1 July 2015
AASB 2015- 4	Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent	The amendment aligns the relief available in AASB 10_Consolidated_ Financial Statements_and AASB 128_Investments in Associates and _Joint Ventures_in respect of the financial reporting requirements for Australian groups with a foreign parent	1 July 2015	1 July 2015
AASB 2015- 5	Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception	This makes amendments to AASB 10, AASB 12_Disclosure of_ _Interests in Other Entities_and AASB 128 arising from the IASB’s narrow scope amendments associated with Investment Entities.	1 July 2015	1 July 2015

29

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Reference	Title	Summary	Application	Application date for Group
			date of standard
AASB 2015- 6	Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not- for-Profit Public Sector Entities [AASB 10, AASB 124 & AASB 1049]	This Standard makes amendments to AASB 124_Related Party_ _Disclosures_to extend the scope of that Standard to include not-for- profit public sector entities.	1 July 2016	1 July 2016

(c) Going concern

As at 30 June 2015, the Group’s current liabilities exceeded its current assets by $39,812,569 and the Group’s Shareholders’ deficit totalled $40,896,509. The Group recorded a loss of $7,701,667 for the year ended 30 June 2015.

The Company is working towards the re-admission of its ordinary shares to official quotation on the ASX. As part of the re-admission process, the Company intends to raise circa $6-$10 million via a placement to institutional sophisticated investors. Whilst there is strong appetite for the placement at this stage no binding term sheet exists nor is there any certainty that the placement will occur. In November 2015, Eastern Goldfields completed a placement to sophisticated investors, issuing 10,666,667 fully paid ordinary shares at an issue price of $0.15 to raise $1.6 million.

The funds raised will be applied towards the development of the Davyhurst Gold Project, the funding of anticipated re-list costs and general working capital.

The ability of the Group to operate as a going concern and meet its debts as and when they fall due is primarily dependent upon the Directors meeting the terms and conditions under the Loan Facility Agreement and successfully recapitalising the Group. Failure to do so may result in the Group being unable to meet its debts as and when they fall due and realise its assets and settle its liabilities in the ordinary course of business. On 30 December 2015, the Company held a general meeting to approve various resolutions in relation to the conversion of debt and announced a revised settlement agreement with Stirling Resources Pty Ltd (refer to note 25).

The financial report has been prepared on the basis that the Group will continue to meet their commitments and can therefore continue normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The directors believe that at the date of signing the financial report there are reasonable grounds to believe that having regard to the matters set out above, the Group will be able meet the terms and conditions under the Investmet transaction and successfully recapitalise the Group.

Should the Group not achieve the matters set out above, there is significant uncertainty whether the Group will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements.

The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not be able to continue as a going concern.

(d) Principles of consolidation

The consolidated financial statements comprise the financial statements of Eastern Goldfields and its subsidiaries (as outlined in Note 20) (the Group) as at and for the period ended 30 June each year.

Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from the its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends have been eliminated in full.

30

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Subsidiaries are fully consolidated from the date on which control is obtained by the Group and cease to be consolidated from the date on which control is transferred out of the Group.

Investments in subsidiaries held by Eastern Goldfields are accounted for at cost in the separate financial statements of the parent entity less any impairment charges. Dividends received from subsidiaries are recorded as a component of other revenues in the separate income statement of the parent entity, and do not impact the recorded cost of the investment. Upon receipt of dividend payments from subsidiaries, the parent will assess whether any indicators of impairment of the carrying value of the investment in the subsidiary exist. Where such indicators exist, to the extent that the carrying value of the investment exceeds its recoverable amount, an impairment loss is recognised.

The acquisition of subsidiaries which are businesses is accounted for using the acquisition method of accounting. The acquisition method of accounting involves recognising at acquisition date, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. The identifiable assets acquired and the liabilities assumed are measured at their acquisition date fair values.

The difference between the above items and the fair value of the consideration (including the fair value of any pre-existing investment in the acquiree) is goodwill or a discount on acquisition.

Non-controlling interests are allocated their share of net profit after tax in the statement of comprehensive income and are presented within equity in the consolidated statement of financial position, separately from the equity of the owners of the parent. Losses are attributed to the non-controlling interest even if that results in a deficit balance.

A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it:

• Derecognises the assets (including goodwill) and liabilities of the subsidiary

• Derecognises the carrying amount of any non-controlling interest

• Derecognises the cumulative translation differences, recorded in equity

• Recognises the fair value of the consideration received

• Recognises the fair value of any investment retained

• Recognises any surplus or deficit in profit or loss

• Reclassifies the parent's share of components previously recognised in other comprehensive income to profit or loss, or retained earnings, as appropriate

(e)

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivables taking into account contractually defined terms of payment and excluding taxes or duty. The following specific recognition criteria must also be met before revenue is recognised.

Interest

Revenue is recognised as the interest accrues using the effective interest rate method (which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).

(f) Property, plant and equipment

All assets acquired, including property, plant and equipment are initially recorded at their cost of acquisition being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition.

Property, plant and equipment located on a mine site is included at cost less provision for depreciation and any impairment in value. All such assets are depreciated over the estimated remaining economic life of the mine, using a unit of production basis.

All other property, plant and equipment is included at cost less provision for depreciation and any impairment in value and depreciated on a straight-line basis commencing from the time the asset is held ready for use. All other repairs and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Refer to significant accounting judgments, estimate and assumptions (Note 4) and provisions for further information about the recognised decommissioning provision.

31

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is including the statement of profit or loss when the asset is derecognised.

(g) Other financial assets

Financial assets in the scope of AASB 139 “Financial Instruments – Recognition and Measurement” are classified as either financial assets at fair value through profit or loss, loans and receivables, held to maturity investments or available for sale investments as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its financial assets at initial recognition.

All regular way purchases and sales of financial assets are recognised on the trade date (the date that the Group commits to purchase the asset). Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery of the assets within the period established generally by regulation or convention in the market place.

Loans, receivables and security deposits

Loans, receivables and security deposits are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired as well as through the amortisation process.

(h) Deferred exploration and evaluation expenditure

Once the legal right to explore has been acquired, exploration and evaluation costs are expensed to the Statement of Comprehensive Income as incurred unless the Directors conclude that a future economic benefit is more likely than not to be realised. Costs incurred during this phase are expensed in the Statement of Comprehensive Income as ‘exploration and evaluation expenditure’. In evaluating if expenditures meet the criteria to be capitalised, several different sources of information are utilised. The information that is used to determine the probability of future economic benefits depends on the extent of exploration and evaluation that has been performed.

Impairment

The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment whenever facts and circumstances suggest that the carrying amount of the asset may exceed its recoverable amount.

The recoverable amount of capitalised exploration and evaluation expenditure is the higher of fair value less costs to sell and value in use.

An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. Any impairment losses are recognised in profit or loss.

(i) Impairment of non-financial assets

At each reporting date, the consolidated entity assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-generating unit to which the asset belongs. The estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

32

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(j)

Joint operation

The Group has an interest in a joint arrangement that is a joint operation. A joint arrangement is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint control is the contractual agreed sharing of control of the arrangement which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising from the joint arrangement, the arrangement is classified as a joint operation and as such the Group recognises its:

• assets, including its share of any assets held jointly;

• liabilities, including its share of any assets held jointly;

• revenue from the sale of its share of the output arising from the joint operation

• share of revenue from the sale of the output by the joint operation; and

• expenses, including its share of any expenses incurred jointly.

• (k)

Income tax

• Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

• When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

• In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

• In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that is has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

• (l)

• Trade and other receivables

Trade receivables, which generally have 30 to 90 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method less an allowance for impairment.

33

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off when identified.

Collectability of trade receivables is reviewed on an ongoing basis. Financial difficulties of the debtor, default payments or debts more than 180 days overdue are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at the original effective interest rate.

(m) Trade and other payables

Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services.

(n)

Loans and borrowings

All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any issue costs, and any discount or premium on settlement. Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised as well as through the amortisation process.

(o) Contributed equity

Ordinary share capital is recognised at the fair value of the consideration received.

(p) Earnings per share

Basic earnings per share is determined by dividing net operating results after income tax attributable to members of the parent entity, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to potential ordinary shares.

(q)

Goods and services tax

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

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

(r) Provisions - Employee benefits

Provision for employee benefits represents the amount which the Group has a present obligation to pay resulting from employees’ service provided up to the balance date.

Liabilities arising in respect of employee benefits expected to be settled within twelve months of the balance date are measured at their nominal amounts based on remuneration rates which are due to be paid when the liability is settled. All other employee benefit liabilities are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to the balance date.

• (s) Provisions-Rehabilitation costs

Full provision for rehabilitation costs is made based on the net present value of the estimated cost of restoring the environmental disturbance that has occurred up to the balance date. Increases due to additional environmental disturbances are capitalised and amortised over the remaining lives of the operations. These increases are accounted for on a net present value basis.

34

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Rehabilitation provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a financing cost. The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other circumstances.

(t)

Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership.

Operating leases

The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased item, are recognised as an expense on a straight-line basis.

(u)

Inventories

Ore and gold stocks are valued at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure relating to mining activities, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

(v) Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at bank and short-term deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

For the purposes of the statement of cash flows, cash includes cheque account, trust account, credit card accounts and deposits at call which are readily convertible to cash on hand and which are used in the cash management function on a day to day basis, net of outstanding bank overdrafts.

(w)

Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and released to profit or loss over the expected useful life of the asset based on the pattern of consumption of the benefits of the underlying asset by equal annual instalments.

3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Refer to Note 19 for details.

4. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(a) Significant accounting judgements

In the process of applying the Group’s accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements:

Capitalisation of exploration expenditure

The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement in determining whether it is likely that future economic benefits are likely either from future exploitation.

The determination of Joint Ore Reserves Committee (JORC) resource is in itself an estimation process that requires varying degrees of uncertainty depending on sub-classification and these estimates directly impact the point of deferral of exploration and evaluation expenditure.

35

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The deferral policy requires management to make certain estimates and assumptions about future events or circumstances, in particular whether an economically viable extraction operation can be established. Estimates and assumptions made may change if new information becomes available. If, after expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is unlikely, the amount capitalised is written off in the statement of comprehensive income in the period when the new information becomes available.

(b) Significant accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

Impairment

Assets, including property, plant and equipment and receivables, are reviewed for impairment if there is any indication that the carrying amount may not be recoverable. Where a review for impairment is conducted, the recoverable amount is assessed by reference to the higher of “value in use” (being the net present value of expected future cash flows of the relevant cash generating unit) and “fair value less costs to sell”.

Impairment of deferred exploration expenditure

The future recoverability of deferred exploration expenditure is dependent on a number of factors, including whether the Group decides to exploit the related tenement itself or, if not, whether it successfully recovers the related exploration asset through sale.

To the extent that deferred exploration expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made.

Provision for decommissioning and restoration costs

Decommissioning and restoration costs are a normal consequence of mining and the majority of this expenditure is incurred as the end of a mine’s life. In determining an appropriate level of provision, consideration is given to the expected future costs to be incurred, the timing of these expected future costs (largely dependent on the life of the mine) and the estimated future level of inflation.

The ultimate cost of decommissioning and restoration is uncertain and costs can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other mine sites. The expected timing of expenditure can also change, for example in response to changes in reserves or to production rates.

Changes to any of the estimates could result in significant changes to the level of provisioning required, which would in turn impact future financial results.

Deferred tax assets

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based on the likely timing and the level of future taxable profits together with future tax planning strategies.

Deferred tax assets have not been recognised because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom.

36

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. REVENUE AND EXPENSES (a) Revenue - Interest (b) Other income - Management fees - Research and development tax claim - Profit on sale of tenement (c) Employee and directors’ benefits expenses - Wages and salaries (d) Corporate and administration expenses - Accounting and tax fees - Consulting and accounting fees - Legal fees - Travel and accommodation expenses - Regulatory fees - Insurance expenses (e) Finance costs - Bank fees - Interest expense - Interest expense – capitalised against loan (note10) - Cost associated with the capital raising	CONSOLIDATED 2015 2014 $ $ 2,434 43,793 - 23,243 63,082 725,622 - 1,403,660 63,082 2,152,525 539,088 438,194 120,899 277,778 289,851 291,261 92,144 342,525 66,395 30,438 49,861 71,747 36,201 30,408 655,351 1,044,157 5,511 8,220 20,042 6,268 1,995,650 1,841,961 328,375 66,757 2,349,578 1,923,206	CONSOLIDATED 2015 2014 $ $ 2,434 43,793 - 23,243 63,082 725,622 - 1,403,660 63,082 2,152,525 539,088 438,194 120,899 277,778 289,851 291,261 92,144 342,525 66,395 30,438 49,861 71,747 36,201 30,408 655,351 1,044,157 5,511 8,220 20,042 6,268 1,995,650 1,841,961 328,375 66,757 2,349,578 1,923,206
		2014
		$
		43,793
		23,243 725,622 1,403,660
		2,152,525
		438,194
		277,778 291,261 342,525 30,438 71,747 30,408
		1,044,157
		8,220 6,268 1,841,961 66,757
		1,923,206

37

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6. INCOME TAX EXPENSE The components of tax expense comprise: Current tax Deferred tax Income tax expense reported in statement of comprehensive income The prima facie tax benefit on loss from ordinary activities before income tax is reconciled to the income tax as follows: Accounting loss Prima facie tax benefit on loss from ordinary activities before income tax at 30% (2014: 30%) Add/(less) tax effect of: - Losses and other deferred tax balances not recognised - Non-allowable items - Non-assessable items Income tax expense reported in Statement of Comprehensive Income Deferred tax recognised: Deferred tax liabilities: Prepayments Deferred tax assets: Carry forward revenue losses Net deferred tax	CONSOLIDATED 2015 $ 2014 $ - - - -
	- -
	(7,701,667) (6,469,017) (2,310,500) (1,940,705) 2,189,754 2,158,007 79,720 - 41,026 (217,302)
	- -
	- - - - - -

38

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6. INCOME TAX EXPENSE (continued)

The tax benefits of the above deferred tax assets will only be obtained if:

• the Group derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised;

• the Group continues to comply with the conditions for deductibility imposed by law; and

• no changes in income tax legislation adversely affect the Group in utilising the benefits.

The deductible tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom.

Tax consolidation:

Eastern Goldfields Limited and its wholly owned Australian resident subsidiary have formed a tax consolidated group. Eastern Goldfields Limited is the head entity of the tax consolidated group.

For the purposes of income taxation, Eastern Goldfields and its 100% owned subsidiaries have formed a consolidated group. Eastern Goldfields is the head entity of the tax consolidated group.

• (i) Members of the tax consolidated group and the tax sharing agreement Eastern Goldfields and its 100% owned Australian resident subsidiaries formed a tax consolidated group with effect from 1 July 2002. Eastern Goldfields is the head entity of the tax consolidated group. Members of the Group have entered into a tax sharing agreement that provides for the allocation of income tax liabilities between the entities should the head entity default on its tax payment obligations. No amounts have been recognised in the financial statements in respect of this agreement on the basis that the possibility of default is remote.

• (ii) Tax effect accounting by members of the tax consolidated group.

• The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The Group has applied The Group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group. The current and deferred tax amounts are measured in a systematic manner that is consistent with the broad principles in AASB 112 Income Taxes.

39

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

7. TRADE AND OTHER RECEIVABLES CURRENT Trade receivables R&D tax incentive Other debtors (1)	CONSOLIDATED 2015 2014 $ $ 2,483 12,869 - 725,622 195,117 34,268 197,600 772,759	CONSOLIDATED 2015 2014 $ $ 2,483 12,869 - 725,622 195,117 34,268 197,600 772,759
		772,759

• (1) Other debtors relates to GST receivable balances.

At 30 June, the ageing analysis of trade and other receivables is as follows:

		Total	0-180 Days	+ 181 Days **PDNI ***	+ 181 Days CI **
2015	Consolidated	197,600	197,600	-	-
2014	Consolidated	772,759	772,759	-	-

• Past due not impaired (PDNI)

• ** Considered impaired (CI)

There were no receivables past due and considered impaired (2014: nil).

NON-CURRENT Security deposits (1) Sundry receivables – Joint operator (2) Allowance for non-recovery (2)	64,160 6,534,637 (6,534,637) 64,160	64,160 6,534,637 (6,534,637) 64,160

• (1) Security deposits are held in a 90 day and 1 year term deposit that are rolled over at each maturity date. The deposits are comprised of a $30,000 security deposit of the Eastern Goldfields Credit cards and a bank guarantee for $34,160 that is not available for use until the Group has been released from any rehabilitation obligations in regard to tenements to which the security deposit relates.

Reconciliation of security deposits: Opening balance Reclassified from cash Closing written down value	64,160 - 64,160	- 64,160
		64,160

• (2) Represents monies owed to the Company from its joint operator. Refer to Note 21.

40

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

8. PROPERTY, PLANT AND EQUIPMENT

Plant and equipment At cost Less accumulated depreciation and impairment Total property, plant and equipment Reconciliation of property, plant and equipment: Carrying amount at beginning of period Additions Impairment Closing written down value	CONSOLIDATED 2015 $ 2014 $ 14,145,438 14,141,440 (11,145,438) (11,141,440) 3,000,000 3,000,000 3,000,000 3,000,000 3,998 25,263 (3,998) (25,263)	CONSOLIDATED 2015 $ 2014 $ 14,145,438 14,141,440 (11,145,438) (11,141,440) 3,000,000 3,000,000 3,000,000 3,000,000 3,998 25,263 (3,998) (25,263)
		3,000,000
		3,000,000 25,263 (25,263)
	3,000,000	3,000,000

Impairment of Property, Plant and Equipment

The processing plant is currently held in care and maintenance. During the prior period the Company obtained a market valuation report from an independent third party. The report contained an upper, preferred and lower valuation based on a trade sale. The carrying value of the property, plant and equipment was impaired to the lower valuation contained in the report to ensure the carrying value reflects the risk of pricing uncertainty due to current second hand market conditions and to cover costs to sell.

The recoverable amount has been determined using fair value less costs to sell using the market comparable method (level 3 in the hierarchy). This means that valuations performed by the valuer are based on active market prices, significantly adjusted for differences in the nature, location or condition of the specific plant. As at the date of valuation on 6 December 2013, the property, plant and equipment fair values were based on valuations performed by MSP Engineering Pty Ltd.

9. TRADE AND OTHER PAYABLES

Trade payables (1) Accruals Share application funds received (2) Other payables	3,439,526 35,000 879,750 585,561 4,939,837	1,213,420 20,000 - 176,497
		1,409,917

(1) Trade creditors and accruals are non-interest bearing and generally settled on 60 day terms.

(2) Share application funds received during the year ended 30 June 2015. Shares were subsequently issued at a price of $0.15 per share on 27 November 2015.

10. LOANS AND BORROWINGS

Investmet Ltd – Secured Investmet Ltd – Unsecured Stirling Resources Pty Ltd – Unsecured Other – Unsecured	20,387,319 8,642,029 5,635,799 416,071 35,081,218	19,189,020 7,208,792 5,308,389 -
		31,706,201

41

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10. LOANS AND BORROWINGS (continued)

Loan Facility Agreement

On 14 April 2014, the Company, Investmet, Stirling, the Security Trustee, the Nominee and certain subsidiaries of the Company who have provided security in relation to the debts, entered into a loan facility agreement to set out the terms and conditions for the Debt, DCM Debt and Stirling Debt (Facility Agreement). The Nominee entered into the Facility Agreement on behalf of the Other Lenders in accordance with certain nominee deeds. As at the date of this report, nominee deeds have been signed by Other Lenders holding more than 80% of the Other Lenders Debt Portion and the Company understands it is the intention of the Nominee to arrange for the remaining Other Lenders to sign their respective nominee deeds before the Closing Date of 15 January 2016.

Debt names and values

es and values
Name	2015	2014
DCM debt (assigned to Investmet Ltd) Stirling debt Syndicated debt (assigned to Investmet Ltd) Other	$4,737,502 $5,635,799 $24,291,846 $416,071	$4,459,047 $5,308,389 $21,938,765 -
Total	$35,081,218	$31,706,201

Under the Facility Agreement, Investmet, Stirling and the Other Lenders agreed to continue to make available the loan facility (consisting of the Debt, DCM Debt and Stirling Debt) to the Company. The Facility Agreement sets out the terms and conditions for the loan facility.

The proposed transactions under the Facility Agreement can be summarised as follows:

• (a) (Debt conversion) Investmet may elect to convert the Debt (in whole or in part) to Shares. If Investmet elects to do so, Stirling will be entitled to convert an amount of the Stirling Debt proportionate to the amount of the Debt that Investmet elects to convert.

If the Company does not have enough unallocated funds upon repayment of the debts and conversion of the Debt (and Stirling Debt) in order to meet reinstatement requirements of the ASX, Stirling may convert such amount of the Stirling Debt as would result in the Company being able to meet ASX’s reinstatement requirements.

Investmet may also elect to convert the DCM Debt (in whole or in part) to Shares.

• (b) (Repayment on Equity Raising) Upon the completion of an equity raising by the Company to raise funds to ensure that the Company has sufficient funds to satisfy any financial condition imposed by the ASX in connection with the re-quotation of the Company’s securities (Equity Raising):

• I. Investmet must elect to convert part or all of the Debt outstanding at the completion of the Equity Raising, provided that no more than $5,000,000 of the Debt is subsisting immediately after;

• II. Stirling may elect to convert part or all of the Stirling Debt outstanding at the completion of the Equity Raising, provided that no more than $2,500,000 of the Stirling Debt is subsisting immediately after. If Stirling does not convert any or all of the Stirling Debt up to $2,500,000 in accordance with the its right of conversion, Stirling has agreed to act in good faith and convert any such amount of the Stirling Debt up to $2,500,000 that would result in the Company being able to meet ASX’s reinstatement requirements; and

• III. Investmet may elect to have the DCM Debt repaid (whole or in part) in cash from the proceeds of the Equity Raising, or by the issue of Shares, or elect to have all or part of the DCM Debt subsisting following the Equity Raising.

• (c) (Repayment and conversion on Maturity Date) On the maturity date of the loan facility, which was on 1 July 2014 (Maturity Date), the Company was required to repay the Debt and the Stirling Debt (plus interest) outstanding on the Maturity Date by, at the election of the Company, the issue of Shares or in cash, provided that:

• I. Investmet had the option to elect for no more than $5,000,000 of the Debt to subsist immediately after the Maturity Date; and

• II. Stirling had the option to elect for no more than $5,000,000 of the Stirling Debt to subsist immediately after the Maturity Date.

42

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10. LOANS AND BORROWINGS (continued)

In addition, Investmet had the option to elect for the DCM Debt (and interest) outstanding on the Maturity Date to be repaid by, at the election of Investmet, the issue of Shares or in cash. Investmet may also elect that all or part of the DCM Debt subsists immediately after the Maturity Date.

• (a) (Loan Syndicate Arrangements) The balance of the Debt, Stirling Debt and DCM Debt subsisting and owing following the partial conversion of the Debt will be held under loan syndicate arrangements which will include:

• I. general security interests over the Company (and its subsidiaries (if applicable)) and their respective assets;

• II. a two-year moratorium on principal repayments; and

• III. a minimum interest rate of 6% or a rate to be agreed between the Company, Investmet, Stirling and the Other Lenders.

Upon completion of the moratorium period, the Company may choose to repay the outstanding principal in cash or convert it into Shares at a price no less than $0.75 per Share or as otherwise agreed by the parties.

Security Trust Deed

On 27 March 2013 the Company, the Security Trustee, Investmet, Stirling and various subsidiaries of the Company entered into an agreement, pursuant to which MGMC assigned the security held by MGMC (as trustee for the Group Trust, Territory Trust and Mt Ida Trust) in relation to the secured debt owed by the Company, to the Security Trustee (Security Trust Deed).

The arrangements under the Security Trust Deed can be summarised as follows:

• (a) (Trust) The Security Trustee will hold, among other things, all its right, title and interest in, to and under the security on trust for Investmet, Stirling, and any other person who becomes a beneficiary under the Security Trust Deed (including the Other Lenders).

• (b) (Security) The security assigned to the Security Trustee includes: I. all the shares held by the Company in Mt Ida, Carnegie and Siberia; and

• II. all present and future property, assets and undertakings of Mt Ida, Carnegie and Siberia (excluding certain assets).

• (c) (Payment) If, before the date that the Security Trustee enforces a security, a beneficiary under the Security Trust Deed directs the Security Trustee to demand payment of secured moneys that are due and payable to the beneficiary, the Security Trustee must make the demand and the person who has granted a security must immediately pay the amount demanded to the Security Trustee.

• (d) (Powers of Security Trustee) The powers of the Security Trustee include:

• I. the power to exercise all rights and discretions and do all other things which a party which is not a trustee would have were it to have entered into the security in place of the Security Trustee;

• II. to make demands and give notices under the security;

• III. to commence and pursue legal proceedings and take action to enforce the security or to protect any property or its interest in any property subject to the security;

• IV. to sell any property in accordance with the security;

• V. to appoint and instruct a receiver or receiver and manager under the security; and

• VI. to exercise all other rights under the security exercisable by the party named in that security as grantee, mortgagee or charge.

These powers are in addition to any powers the Security Trustee may have under any legislation or the general law or equity.

The Security Trustee must exercise its powers as directed by a majority of the lenders of the secured moneys whose lender proportions aggregate more than 60% of the total amount of the secured moneys.

43

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10. LOANS AND BORROWINGS (continued)

		Investmet Stirling Other Total Secured Unsecured Unsecured Unsecured	Investmet Stirling Other Total Secured Unsecured Unsecured Unsecured	Investmet Stirling Other Total Secured Unsecured Unsecured Unsecured
	$ $ $ $ $ Reconciliation of loans and borrowings: Carrying amount at beginning of year 19,189,020 7,208,792 5,308,389 - 31,706,201 Advanced - 975,399 - 403,969 1,379,368 Capitalised interest 1,198,300 457,838 327,410 12,102 1,995,650 Closing written down value 20,387,320 8,642,029 5,635,799 416,071 35,081,219 CONSOLIDATED 2015 2014 $ $ 11. PROVISIONS CURRENT Employee benefits 52,391 58,242 NON-CURRENT Rehabilitation 4,148,100 4,148,100 Reconciliation of provision for rehabilitation: Carrying amount at beginning of period 4,148,100 4,148,100 Closing written down value 4,148,100 4,148,100	$ $ $ $ $ 19,189,020 7,208,792 5,308,389 - 31,706,201 - 975,399 - 403,969 1,379,368 1,198,300 457,838 327,410 12,102 1,995,650
		20,387,320 8,642,029 5,635,799 416,071 35,081,219
			CONSOLIDATED 2015 2014 $ $ 52,391 58,242 4,148,100 4,148,100 4,148,100 4,148,100 4,148,100 4,148,100
				58,242
				4,148,100
				4,148,100
				4,148,100

The Group makes full provision for the future cost of rehabilitating mine sites and related production facilities on a discounted basis on the development of mines or installation of those facilities.

The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites. These provisions have been created based on Eastern Goldfields internal estimates. Assumptions, based on the current economic environment, have been made which management believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual rehabilitation costs will ultimately depend upon future market prices for necessary decommissioning works required which will reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation is likely to depend on when the mines cease to produce at economically viable rates. This, in turn, will depend upon future gold prices, which are inherently uncertain.

Management is undertaking a detailed review of the Group’s future rehabilitation obligations in relation to the mine. The review, involves ground trothing the entire tenement portfolio to confirm exactly what areas have been disturbed. This review is expected to be completed during 2016.

12.CONTRIBUTED EQUITY (a)Share capital 91,850,223* (2014: 913,487,661) ordinary fully paid shares	CONSOLIDATED 2015 2014 $ $ 168,040,331 167,965,331	CONSOLIDATED 2015 2014 $ $ 168,040,331 167,965,331
		167,965,331

44

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12. CONTRIBUTED EQUITY (continued)

*Consolidation of 1 for 10 shares was completed on 15 July 2014.

Ordinary shares entitle the holder to participate in dividends in proportion to the number of and amounts paid on the shares held. On a show of hands, every holder of ordinary shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to one vote.

(b) Movements in ordinary share capital Balance 30 June 2013 -Shares issued (1) Balance 30 June 2014 -Shares issued (2) -Consolidation 1 for 10-15 July 2014 (3) Balance 30 June 2015	Shares $ 892,820,993 167,665,331 20,666,668 300,000 913,487,661 167,965,331 5,000,000 75,000 (826,637,438) -
	91,850,223 168,040,331

• (1) On 26 June 2014 the Company placed 20,666,668 fully paid ordinary shares at a price of $0.015 per share to a sophisticated investor raising $300,000.

(2) On 11 July 2014, the Company placed 5,000,000 fully paid ordinary shares at a price of $0.015 per share to Directors raising $75,000. These shares were issued at fair value.

(3) On 15 July 2014, a share consolidation of 1 for 10 shares held was completed.

Capital Management

When managing capital, management’s objective is to safeguard the entity’s ability to continue as a going concern as well as to maintain optimum returns to shareholders and benefits to other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of capital available to the entity. In order to sustain these objectives the Company executed a Loan Facility Agreement with Investmet Ltd and Stirling Resources Ltd. The agreement allows Eastern Goldfields to extinguish a large majority of its debt through the issue of equity rather than a cash settlement. Refer to note 10 for key terms of the agreement.

Capital is comprised of shareholders’ equity as disclosed in the statement of financial position.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Management has no current plans to reduce the capital structure through a share buy-back.

The Group is not subject to any externally imposed capital restrictions.

13. RESERVES Option premium and share-based payments reserve	CONSOLIDATED 2015 2014 $ $ 5,292,614 5,292,614	CONSOLIDATED 2015 2014 $ $ 5,292,614 5,292,614
		5,292,614

45

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

MANAGEMENT PERSONNEL Aggregate Remuneration - Short-term - Post-employment	CONSOLIDATED 2015 2014 $ $ 156,667 218,370 - 3,549
	156,667 221,919

14. KEY MANAGEMENT PERSONNEL

15. REMUNERATION OF AUDITORS

Amounts paid or due and payable to the auditors for:

- Auditing and reviewing the financial reports Current year Prior year (due and payable) - Taxation advisory services	36,000 30,000 25,196 - - 32,500
	61,196 62,500

16. EXPENDITURE COMMITMENTS

Under the terms of mineral tenement licences held by the Group, minimum annual expenditure obligations of $4,183,710 (2014: $4,511,774) may be required to be expended during the forthcoming financial year in order for the tenements to maintain a status of good standing. This expenditure may be incurred by the Group and may be subject to variation from time to time in accordance with Department of Industry and Resources regulations.

17. SEGMENT INFORMATION

The Group has identified its segments based on the internal management reporting that is used by the executive management team in assessing performance and allocating resources. Segments have been identified as the ongoing care and maintenance and mine development work segment and exploration segment. The Group operates in one geographical segment – Australia.

The accounting policies used by the Group in reporting segment information internally, is the same as those contained in Note 2 to the financial statements.

The following items and associated assets and liabilities are not allocated to operating segments as management do not consider these to be part of the core operations of both segments:

• (i) Impairment of assets

• (ii) Corporate assets and liabilities

• (iii) Administrative expenses

46

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18. SEGMENT INFORMATION (continued)

Segments Year ended 30 June 2015 Segment revenue Interest revenue Other income Total segment revenue Unallocated revenue Total revenue Segment expense Exploration expenditure Site care and maintenance costs Other Total segment expense Unallocated expense Total expense Segment loss Unallocated loss Total loss Segment assets Unallocated assets Total assets Segment liabilities Unallocated liabilities Total liabilities Additions to non-current assets	Mine Under Care and Maintenance Exploration $ $ 1,002 - 4,250 -	Consolidated $ 1,002 4,250
	5,252 -	5,252
	2,736,828 1,390,496 39,806 - 3,992 1,799	60,264
		65,516
		4,127,324 39,806 5,791
	2,780,626 1,392,295	4,172,921
	2,775,373 1,392,295 - - 3,102,367 11,326 - - 6,277,210 1,128,661 - -	3,594,262
		7,767,183
		4,167,668 3,533,999
		**7,701,667 **
		3,113,693 211,344
		3,325,037
		7,405,871 36,815,675
		44,221,546
	- -	-

47

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18. SEGMENT INFORMATION (continued)

Segments Year ended 30 June 2014 Segment revenue Interest revenue Other income Total segment revenue Unallocated revenue Total revenue Segment expense Impairment of property, plant and equipment Exploration expenditure Site care and maintenance costs Other Total segment expenses Unallocated expenses Total expenses Segment loss Unallocated loss Total loss Segment assets Unallocated assets Total assets Segment liabilities Other unallocated liabilities Total liabilities Additions to non-current assets	Mine Under Care and Maintenance Exploration $ $ 32,184 11,578 1,403,660 -	Consolidated $ 43,762 1,403,660
	1,435,844 11,578	1,447,422
	5,674,287 - 3,301,351 1,808,296 88,807 - 5,583 4,517	748,896
		2,196,318
		5,674,287 5,109,647 88,807 10,100
	9,070,028 1,812,813	10,882,841
	1,960,396 1,801,235 - - 3,041,060 8,786 - - 4,359,469 185,170 - -	3,456,282
		14,339,123
		3,761,631 2,707,386
		6,469,017
		3,049,846 1,002,772
		4,052,618
		4,544,639 32,777,821
		37,322,460
	- -	-

48

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18. RELATED PARTY TRANSACTIONS

• (a) Subsidiaries of the Company can be found at note 20.

• (b) Directors who held office for any time during the period are disclosed in the directors’ report.

• (c) Terms and conditions of transactions with related parties:

Transactions with related parties are made at terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year- end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended June 2015, the Group has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(d) Transactions with related parties:

• Delta Resources Management Pty Ltd, a Company which Mr Michael Fotios is a substantial shareholder in, and Chairman of, provided technical and administrative support to the Company and was paid $204,800 (30 June 2014: $506,409). A total of $509,592 remains due and payable as at the year end.

• Whitestone Drilling Pty Ltd, a Company which is 100% owned by Investmet Ltd, a company which Mr Michael Fotios is a substantial shareholder in, and Chairman of provided consulting services to the Company and was paid $43,609 (30 June 2014: $411,879). A total of $211,976 remains due and payable as at the year end.

• Allion Legal, a firm which Mr Craig Readhead is a Partner, received $210,207 (30 June 2014: $376,681) for legal advice provided to the Company. These fees have not been included in directors’ remuneration as they were not paid to Mr Readhead in relation to the management of the affairs of the Company. A total of $162,898 remains due and payable as at the year end.

19. FINANCIAL INSTRUMENTS

• (a) Financial Risk Management Policies and Objectives

The Group’s principal financial instruments are cash and short term deposits and loans. The main purpose of these financial instruments is to provide working capital and raise finance for the Group’s operations. The Group has various other financial assets and liabilities such as receivables and trade payables, which arise directly from its operations. The main risks arising from the Group’s financial instruments are interest rate risk and credit risk. The Board reviews and agrees policies for managing each of these risks.

The Group’s activities expose it to a variety of financial risks: market risk, credit risk, liquidity risk, and interest rate risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on financial performance without limiting the Group’s potential upside.

The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to gold price risk and assessments of market forecasts for gold prices. Liquidity risk is measured through the development of rolling future cash flow forecasts at various gold prices.

Risk management is carried out by executive management with guidance from the Audit Committee under policies approved by the Board. The Board also monitors risk regularly at Board meetings and provides guidance where necessary for overall risk management, including guidance on specific areas, such as mitigating commodity price, interest rate and credit risks where applicable.

Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and agrees policies for managing each of the risks identified below, including the setting of limits for any hedging coverage of gold, credit allowances, and future cash flow forecast projections.

49

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

19. FINANCIAL INSTRUMENTS (continued)

• (b) Credit Risk

Credit risk relates to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group. The exposure of the Group to credit risk at balance date in relation to each class of recognised financial asset is the carrying amount of the assets as indicated in the statement of financial position.

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The Group’s maximum exposure to credit risk at reporting date in relation to each class of financial asset is the carrying amount of those assets as indicated in the Statement of Financial Position.

In relation to managing potential credit risk exposures, the Group has in place policies that aim to ensure that cash transactions are limited to high credit quality financial institutions and that the amount of credit exposure to any one financial institution is limited as far as is considered commercially appropriate.

• (c) Interest Rate Risk

The Group’s exposure to the risk of changes in market interest rates is minimal and relates primarily to cash and security deposits held with the Company’s bankers.

Interest rate risk represents the risk that the value of a financial instrument will fluctuate as a result of changes in market interest rates. The exposure of the Group to interest rate risk and the effective weighted average interest rate for classes of financial assets and liabilities is set out below.

Financial assets Floating rate Cash Fixed rate Security deposits – current (Note 7) Security deposits – non- current (Note 7) Financial liabilities Fixed rate Loans and borrowings	CONSOLIDATED 2015 2014 $ $
	52,366 215,699 - - 64,160 64,160 35,081,218 31,706,201

The Group’s policy is to manage its exposure to interest rate risk by holding cash on short term, fixed rate deposits and variable rate deposits with reputable high credit quality financial institutions. The Group constantly analyses its interest rate exposure. Consideration is given to potential renewals of existing positions, alternative financing and the mix of fixed and variable interest rates.

(d) Sensitivity Analysis

The following tables summaries the sensitivity of the Group’s financial assets and liabilities to interest rate risk. Had the interest rates moved, with all other variables held constant, post- tax profit and equity would have been affected as shown.

50

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

19. FINANCIAL INSTRUMENTS (continued)

Sensitivity Analysis Financial assets Cash Total increase/(decrease)	30 June Interest rate risk -1% (1) Profit Equity $ $ (524) -	2015 Interest rate risk +1% (1) Profit Equity $ $ 524 -	2015 Interest rate risk +1% (1) Profit Equity $ $ 524 -	30 June 2014 Interest rate risk Interest rate risk -1% (1) +1% (1) Profit Equity Profit Equity $ $ $ $ (2,157) - 2,157 -	30 June 2014 Interest rate risk Interest rate risk -1% (1) +1% (1) Profit Equity Profit Equity $ $ $ $ (2,157) - 2,157 -
	(524) -	524	-	(2,157)	2,157 -

(1) The rate of 1% applied in the above analysis and is based on management’s expected movement for the interest rate over the next financial year.

(e) Liquidity risk

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of loans and other available lines of credit. The Group manages liquidity risk by monitoring forecast cash flows. The table below reflects all contractually fixed pay-offs and receivables for settlement, repayments and interest resulting from recognised financial assets and liabilities as of 30 June 2015. Cash flows for financial assets and liabilities without fixed amount or timing are based on the conditions existing at 30 June 2015.

Subsequent to 30 June 2015, the Group continued to meet their commitments with funds provided by Investmet Limited (Investmet) whereby Investmet plans to recapitalise Eastern Goldfields to fund a review into the recommencement of operations at the Carnegie and Mt Ida gold projects.

Maturity analysis of financial assets and liabilities based on management’s expectations:

Trade payables and other financial liabilities mainly originate from the financing of assets used in our ongoing operations. These assets are considered in the Group’s overall liquidity risk. To monitor existing financial liabilities as well as to enable an effective controlling of future risks, the Company has established comprehensive risk reporting covering its business that reflects expectations of management of expected settlement of financial assets and liabilities.

Maturity Analysis 30 June 2015 Financial liabilities Trade and other payables Loans and borrowings Net Maturity	< 6 months 6 - 12 months 1 - 5 years >5 years Total $ $ $ $ $ (4,939,837) - - - (4,939,837) (35,081,218) - - - (35,081,218)
	(40,021,055) - - - (40,021,055)

51

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

19. FINANCIAL INSTRUMENTS (continued)

Maturity Analysis 30 June 2014 Financial liabilities Trade and other payables Loans and borrowings Net Maturity	< 6 months 6 - 12 months 1 - 5 years >5 years Total $ $ $ $ $ (1,409,917) - - - (1,409,917) (31,706,201) - - - (31,706,201)
	(33,116,118) - - - (33,116,118)

20. INVESTMENTS IN CONTROLLED ENTITIES

	Country of	Class	Equity	holding
Name of entity	incorporation	of shares	2015	2014
Monarch Nickel Pty Ltd	Australia	Ordinary	0	100
Monarch Gold Pty Ltd	Australia	Ordinary	0	80
Carnegie Gold Pty Ltd	Australia	Ordinary	100	100
Siberia Mining Corporation Pty Ltd	Australia	Ordinary	100	100
Mt Ida Gold Pty Ltd	Australia	Ordinary	100	100
Mt Ida Gold Operations Pty Ltd	Australia	Ordinary	100	100
Controlled entities of Siberia Mining Corporation Pty Ltd
Ida Gold Operations Pty Ltd	Australia	Ordinary	100	100
Pilbara Metals Pty Ltd	Australia	Ordinary	100	100
Siberia Gold Operations Pty Ltd	Australia	Ordinary	100	100

21. INTERESTS IN JOINTLY CONTROLLED OPERATIONS

The Group entered into a joint arrangement with Kingsday Holdings Pty Ltd for the operation of the Mt Ida Excluded Area joint operation. Under the agreement Eastern Goldfields retains a 70% interest in the asset. The Group contributes 100% of the funding of the joint operation with the other participant’s share repayable from the gold production of the asset. Eastern Goldfields will be paid interest on the funds used and in relation to the other participant’s share of costs at a rate of 30% per annum during periods where mining operations are accruing on the Mt Ida Excluded Area. The face value of the amount receivable as at 30 June 2015 is $6,534,000 with an applicable notional interest rate of 30%, subject to an interest free period of 20 months when Eastern Goldfields had yet to recommence mining operations. This balance continues to be fully impaired as at 30 June 2015 as the recovery of this balance is dependent on gold production and remains uncertain. There are no assets employed by the joint operation and the Group’s expenditure in respect of the joint operation is brought to account initially as exploration and evaluation through profit and loss.

The joint operation has no contingent liabilities or capital commitments.

22. CONTINGENT LIABILITIES

There were no contingent liabilities identified as at 30 June 2015 or 30 June 2014.

52

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

23.CASH FLOW STATEMENT a) Reconciliation of cash and cash equivalents Cash balances comprise: Cash and cash equivalents For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. b) Reconciliation of net cash outflow from operating activities to loss after income tax Loss after income tax Adjusted for non- cash items: Impairment of property, plant and equipment Capitalised interest expense Reclass proceeds from sale of investment to investing Changes in operating assets and liabilities: (Increase)/decrease in receivables Increase/(decrease) in payables (Increase)/decrease of prepayments Increase/(decrease) of provisions (Increase)/decrease of inventory Net cash outflow from operating activities	CONSOLIDATED 2015 2014 $ $ 52,366 215,699 (7,701,667) (6,469,017) 3,998 25,263 1,995,650 1,841,961 - (1,400,000) 575,158 (444,120) 2,650,170 (237,955) - 11,746 (5,851) 31,481 (10,911) 63,459 (2,493,453) (6,577,182)	CONSOLIDATED 2015 2014 $ $ 52,366 215,699 (7,701,667) (6,469,017) 3,998 25,263 1,995,650 1,841,961 - (1,400,000) 575,158 (444,120) 2,650,170 (237,955) - 11,746 (5,851) 31,481 (10,911) 63,459 (2,493,453) (6,577,182)
		215,699
		(6,469,017) 25,263 1,841,961 (1,400,000) (444,120) (237,955) 11,746 31,481 63,459
		(6,577,182)

53

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24.LOSS PER SHARE Loss used in the calculation of basic loss per share Weighted average number of ordinary shares on issue used in the calculation of basic earnings per share Effect of dilution: Weighted average number of ordinary shares on issue adjusted for the effect of dilution There were no options on issue at balance date.	CONSOLIDATED 2015 2014 $ $ 7,701,667 6,469,017 Number Number (1) 91,833,698 86,850,223 - -
	91,833,698 86,850,223

There were no other movements in ordinary shares and options which occurred subsequent to reporting date.

(1) On 15 July 2014 the Company completed a share consolidation which was achieved through the conversion of ten fully paid ordinary shares into one fully paid ordinary share, was approved by an ordinary resolution of shareholders passed at the Company’s Annual General Meeting held on 8 July 2014.

25. SUBSEQUENT EVENTS

Change of Company Name

The Company confirms that, further to shareholder approval at the 2013 Annual General Meeting held on 8 July 2014, the name of the Company has been changed from Swan Gold Mining Limited to Eastern Goldfields Limited.

The Australian Securities and Investments Commission recorded the change of name on 11 November 2015. The ASX ticker code will change to EGS on or around 3 December 2015.

Placement raises $1.6 million

Further to the Appendix 3B lodged on 27 November 2015, Eastern Goldfields is also pleased to announce it has completed a placement to sophisticated investors, issuing 10,666,667 fully paid ordinary shares at an issue price of $0.15 to raise $1.6 million.

The funds raised will be applied towards the development of the Davyhurst Gold Project, the funding of anticipated re-list costs and general working capital.

Corporate Activities

The Company further advises that, Ms Shannon Coates has been appointed as Company Secretary effective 26 November 2015.

In December 2015, Eastern Goldfields has lodged two key documents (Notice of General Meeting and Prospectus) with the ASX, both of which are critical to an anticipated reinstatement of the Company’s securities on the ASX on or before the end of January 2016.

Prospectus

On 29 December 2015, Eastern Goldfields lodged a Prospectus to raise a minimum of $6m and a maximum of $10m of new equity in Eastern Goldfields Limited at $0.15 per shares with the ability to accept over subscriptions to raise an additional $5m.

54

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. SUBSEQUENT EVENTS (continued)

General Meeting

A Notice of General Meeting was dispatched to shareholders on 1 December 2015. The meeting was held on 30 December 2015 and shareholders have approved the following resolutions:

• i) Placement of up to 66,666,667 shares at $0.15 each to sophisticated and professional investors. ii) Conversion of related parties debt – issue up to 90,390,313 shares at a deemed price of $0.15 to Investmet, Delta, Fotios Family Trust and other lenders nominee.

• iii) Conversion of unrelated parties debt – issue up to 47,371,287 shares at deemed price of $0.15 to other lenders nominee.

• iv) Conversion of DCM debt – issue up to 28,000,000 shares at deemed price of $0.15 to Investmet. v) Conversion of interest component of the debt and DCM debt of related parties – issue up to 19,795,701 at a deemed price of $0.15 to Investmet, Delta, Fotios Family Trust and other lenders nominee.

• vi) Conversion of interest component of debt of unrelated parties – issue up to 7,920,813 at deemed price of $0.15 to other lenders nominee.

• vii) Conversion of Investmet loan – issue up to 15,487,592 at an issue price of $0.15. viii) Conversion of interest component of Investmet loan – issue up to 2,053,061 at a price of $0. ix) Issue of 15,000,000 Options Mr Michael Fotios under the Company’s Option Plan. x) Issue of 3,600,000 Options Mr Alan Still under the Company’s Option Plan. xi) Issue of 3,600,000 Options Mr Craig Redhead under the Company’s Option Plan. xii) Issue of 87,717 shares at a deemed price of $0.15 to Investmet in lieu of fees. xiii) Issue of 2,493,333 shares at a deemed price of $0.15 to Mr Michael Fotios in lieu of fees. xiv) Issue of 7,851,997 shares at a deemed price of $0.15 to Whitestone in lieu of fees. xv) Issue of 3,973,109 shares at a deemed price of $0.15 to Delta in lieu of fees. xvi) Issue of 27,500,000 options to a financier of the Company. xvii) Selective buy back and cancel 8,892,922 shares currently held by Stirling Gold. xviii) Approval for Investment and Mr Michael Fotios to increase their relevant interest in the Company. xix) Conversion of loan agreements up to an aggregate of $10,000,000 and the issue of up to 66,666,667 Shares at a deemed price of $0.15 each upon conversion of the principal and interest of such loans to the 2015 lenders.

• xx) Ratification of the issue of 10,666,667 shares at an issue price of $0.15 each, a placement completed in November 2015.

On 30 December 2015, the Company announced a revised settlement arrangement with Stirling Resources Pty Ltd. Eastern Goldfields has entered into a Settlement Deed with Stirling which provides for the following:

• Payment of the remainder of $529,000 pursuant to the previous settlement arrangement to occur in two tranches of $150,000 on 31 December 2015 and $379,000 plus accrued interest on the diminishing balance of the previous settlement amount since 1 July 2015 at a rate of 6 per cent per annum to occur on 8 January 2016;

• Upon payment of the settlement amounts, all amounts owing to Stirling under the loan facility agreement with the Company and other parties, and all related security, will be released;

• Acknowledgement of the amount of $1,000,000 already paid by Eastern Goldfields under the previous settlement arrangement;

• Agreement to the share buy-back of all of the shares held by Stirling in Eastern Goldfields;

• A further payment of $150,000 by Eastern Goldfields to be made on the earlier of the date which is 3 months after commencement of gold production at the Davyhurst gold operation and 30 September 2016; and

• Subject to commencement of gold production at the Davyhurst gold operation, an issue of 4.5 million ordinary shares by Eastern Goldfields in two equal tranches on the date of payment of the further $150,000 referred to above and the earlier of the date which is within 6 months of commencement of gold production and 31 December 2016.

On 4 January 2016, the Company announced that the ASX has granted the Company an extension within which to obtain reinstatement to trading of the Company’s securities on the ASX to 24 March 2016.

If Eastern Goldfields’ securities are not reinstated to trading by 24 March 2016, the Company will be automatically removed from the official list of the ASX.

The Company also advises that it has invested significant Board and management time in 2015 into securing a Project Loan sufficient to re-commission the Davyhurst mine and re-commence gold production at the Davyhurst Gold Project in 2016, and a successful conclusion to those discussions is anticipated in the coming weeks.

55

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

25. SUBSEQUENT EVENTS (continued)

In the opinion of the directors there is no additional information available as at the date of this report on any likely developments which may materially affect the operations of the Group and the expected results of those operations in subsequent years.

26. PARENT ENTITY INFORMATION

(a) Financial Position

Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non- current liabilities Total liabilities Equity/(Deficit) Contributed equity Accumulated losses Reserves Total (deficit)/equity (b) Financial performance Loss for the year Other comprehensive income Total loss for the year	2015 $ 147,185 28,430,105 28,577,290 37,874,815 - 37,874,815 168,040,331 (182,630,470) 5,292,614 (9,297,525) (3,534,000) - (3,534,000)	2014 $ 1,002,772 25,936,525
		26,939,297
		32,777,821 -
		32,777,821
		167,965,331 (179,096,469) 5,292,614
		(5,838,524)
		(2,707,386) -
		(2,707,386)

Guarantees

Eastern Goldfields and its subsidiaries have entered into a Deed of Cross Guarantee. The effect of the deed is that Eastern Goldfields has guaranteed to pay any deficiency in the event of winding up of any controlled entity or if they do not meet their obligations under the terms of loans, leases or other liabilities subject to the guarantee. The controlled entities have also given a similar guarantee in the event that Eastern Goldfields is wound up or if it does not meet its obligations under the terms of loans, leases or other liabilities subject to the guarantee.

Contingent Liabilities and Commitments

There were no contingent liabilities or commitments identified as at 30 June 2015 or 30 June 2014.

56

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Eastern Goldfields Limited, I state that:

1. In the opinion of the directors:

a. The financial statements, notes and the additional disclosures included in the directors’ report designed as audited, of the Group are in accordance with the Corporations Act 2001, including:

i. Giving a true and fair view of the Group’s financial position as at 30 June 2015 and of its performance for the year ended on that date.

ii. Complying with Accounting Standards (including the Australian Accounting Interpretations) and Corporations Regulations 2001.

b. The financial statements and notes also comply with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’) as disclosed in Note 2(b).

c. Subject to the matters disclosed in Note 2(d), there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

d. The remuneration disclosures included in pages 15 to 16 of the director’s report (as part of the audited Remuneration Report), for the year ended 30 June 2015, comply with section 300A of the Corporations Act 2001.

1. This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2015.

On behalf of the board

==> picture [89 x 58] intentionally omitted <==

Michael Fotios

Executive Chairman

Perth, Western Australia 8 February 2016

57

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

==> picture [71 x 81] intentionally omitted <==

Independent auditor’s report to the members of Eastern Goldfields Limited

Report on the financial report

We have audited the accompanying financial report of Eastern Goldfields Limited, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the year's end or from time to time during the financial year.

Directors’ responsibility for the financial report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements , that the financial statements comply with International Financial Reporting Standards .

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 . We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the directors’ report.

58

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GHM:JT:EASTERNGOLDFIELDS:005

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

Basis for qualified opinion

Carrying value of property, plant and equipment

Included in the 30 June 2015 property, plant and equipment balance is an amount of $3,000,000 relating to the Davyhurst processing plant, which is currently under care and maintenance.

A valuation of the Davyhurst processing plant was last undertaken in December 2013 and no further valuations have been undertaken since that time.

As at the date of our audit, we have been unable to obtain sufficient appropriate audit evidence to support the recoverability of the Davyhurst processing plant. Consequently, we are unable to determine whether any adjustment to the carrying value of the Davyhurst processing plant is necessary.

Carrying value of the rehabilitation provision

Included in the 2015 non-current provision balance is an amount of $4,148,100 for the future rehabilitation obligations for the Davyhurst mine. Management is currently undertaking a detailed review of the consolidated entity’s future rehabilitation obligations in relation to the mine.

As at the date of our audit, we have been unable to obtain sufficient appropriate audit evidence to support the carrying value of the rehabilitation provision. Consequently, we are unable to determine whether any adjustment to the carrying value of the rehabilitation provision is necessary.

Carrying value of the Stirling Resources Pty Ltd loan

Included in the 30 June 2015 current loans and borrowings balance is an amount due to Stirling Resources Pty Ltd of $5,635,799.

As at the date of our audit, we have been unable to obtain sufficient appropriate audit evidence to support the completeness of the carrying value of this loan. Consequently, we are unable to determine whether any adjustment to the carrying value of this loan is necessary.

Qualified opinion

In our opinion, except for the possible effects of the matters described in the Basis for qualified opinion paragraph:

• a. the financial report of Eastern Goldfields Limited is in accordance with the Corporations Act 2001 , including:

• i giving a true and fair view of the consolidated entity's financial position as at 30 June 2015 and of its performance for the year ended on that date

• ii complying with Australian Accounting Standards and the Corporations Regulations 2001

• b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2.

59

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

==> picture [71 x 81] intentionally omitted <==

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Emphasis of matter

Without further qualification to our conclusion, we draw attention to Note 1 in the financial report which describes the principal conditions that raise doubt about the consolidated entity’s ability to continue as a going concern. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

Report on the remuneration report

We have audited the remuneration report included in the directors' report for the year ended 30 June 2015. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the remuneration report of Eastern Goldfields Limited for the year ended 30 June 2015, complies with section 300A of the Corporations Act 2001 .

==> picture [150 x 51] intentionally omitted <==

Ernst & Young

==> picture [132 x 46] intentionally omitted <==

G H Meyerowitz Partner Perth 8 February 2016

60

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 TENEMENT SCHEDULE

TENEMENT	STATUS	REGISTERED HOLDER	REGISTERED INTEREST	APPLICATION DATE	GRANT DATE	EXPIRY DATE /RENEWAL DUE
E 16/332	GRANTED	CARNEGIE GOLD PTY LTD	100/100	19/07/2006	28/05/2007	27/05/2017
E 16/337	GRANTED	CARNEGIE GOLD PTY LTD	100/100	7/12/2006	9/04/2008	8/04/2018
E 16/344	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	2/02/2007	29/04/2008	28/04/2018
E 16/347	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	29/03/2007	12/03/2008	11/03/2018
E 16/456	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	12/12/2013	11/07/2014	10/07/2019
E 16/473	GRANTED	CARNEGIE GOLD PTY LTD	100/100	3/02/2015	5/10/2015	4/10/2020
E 16/474	PENDING	CARNEGIE GOLD PTY LTD	100/100	3/02/2015
E 16/475	GRANTED	CARNEGIE GOLD PTY LTD	100/100	3/02/2015	5/10/2015	4/10/2020
E 29/640	GRANTED	MT IDA GOLD PTY LTD	100/100	19/12/2006	24/06/2008	23/06/2018
E 29/641	GRANTED	MT IDA GOLD PTY LTD	100/100	19/12/2006	24/06/2008	23/06/2018
E 29/895	GRANTED	MT IDA GOLD PTY LTD	100/100	17/09/2013	7/04/2014	6/04/2019
E 29/955	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	25/06/2015	13/01/2016	12/01/2021
E 30/332	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2018
E 30/333	GRANTED	BARRA RESOURCES LTD	100/100	31/01/2007	2/09/2008	1/09/2018
E 30/334	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	21/04/2008	20/04/2018
E 30/335	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	19/12/2008	18/12/2018
E 30/336	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	2/07/2008	1/07/2018
E 30/338	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	20/05/2008	19/05/2018
E 30/449	GRANTED	DELTA RESOURCE MANAGEMENT PTY LTD	100/100	14/09/2012	2/04/2013	1/04/2018
E 30/454	GRANTED	CARNEGIE GOLD PTY LTD	100/100	28/11/2013	10/07/2014	9/07/2019
E 30/464	PENDING	CARNEGIE GOLD PTY LTD	100/100	30/06/2014
E 30/468	PENDING	CARNEGIE GOLD PTY LTD	100/100	8/12/2014
L 15/224	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	15/07/1999	10/01/2000	9/01/2021
L 16/58	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	22/04/1999	13/12/1999	12/12/2020
L 16/62	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	7/07/1999	13/12/1999	12/12/2020
L 16/72	GRANTED	CARNEGIE GOLD PTY LTD	100/100	23/08/2001	13/06/2002	12/06/2023
L 16/73	GRANTED	CARNEGIE GOLD PTY LTD	100/100	23/08/2001	13/06/2002	12/06/2023
L 16/77	GRANTED	IDA GOLD OPERATIONS PTY LTD(SIBERIA)	100/100	23/12/2004	28/03/2006	27/03/2027
L 16/103	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	11/09/2012
L 24/85	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	16/06/1987	27/10/1987	26/10/2017
L 24/101	GRANTED	CARNEGIE GOLD PTY LTD	96/96	4/03/1988	29/08/1988	28/08/2018
L 24/115	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	4/08/1988	25/10/1988	24/10/2018
L 24/123	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	24/02/1989	1/08/1989	31/07/2019
L 24/124	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	24/02/1989	1/08/1989	31/07/2019
L 24/170	GRANTED	CARNEGIE GOLD PTY LTD	100/100	14/11/1996	14/05/1997	13/05/2017
L 24/174	GRANTED	CARNEGIE GOLD PTY LTD	100/100	1/07/1997	22/12/1997	21/12/2017
L 24/188	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	2/09/2003	4/11/2004	3/11/2025
L 24/189	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	19/03/2004	1/03/2006	28/02/2027
L 24/224	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	13/01/2016
L 29/34	GRANTED	CARNEGIE GOLD PTY LTD	96/96	24/02/1988	7/04/1988	6/04/2018
L 29/38	GRANTED	CARNEGIE GOLD PTY LTD	96/96	2/05/1988	11/04/1989	10/04/2019
L 29/40	GRANTED	CARNEGIE GOLD PTY LTD	96/96	8/07/1988	6/04/1989	5/04/2019
L 29/74	GRANTED	MT IDA GOLD PTY LTD	100/100	14/11/2007	4/09/2008	3/09/2029
L 30/35	GRANTED	CARNEGIE GOLD PTY LTD	96/96	1/07/1992	6/11/1992	5/11/2017
L 30/37	GRANTED	CARNEGIE GOLD PTY LTD	100/100	6/12/1996	14/05/1997	13/05/2017
L 30/43	GRANTED	CARNEGIE GOLD PTY LTD	100/100	21/08/2001	19/03/2002	18/03/2023
M 16/220	GRANTED	CARNEGIE GOLD PTY LTD	100/100	22/09/1994	27/03/2001	26/03/2022
M 16/262	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	10/11/1995	12/03/1999	11/03/2020
M 16/263	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	10/11/1995	12/03/1999	11/03/2020
M 16/264	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	10/11/1995	12/03/1999	11/03/2020
M 16/268	GRANTED	CARNEGIE GOLD PTY LTD	100/100	18/12/1995	10/08/2001	9/08/2022
M 16/470	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/09/2002	9/12/2003	8/12/2024
M 24/39	GRANTED	CHARLES ROBERT GARDNER	96/96	29/12/1983	16/01/1985	15/01/2027

61

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 TENEMENT SCHEDULE

TENEMENT	STATUS	REGISTERED HOLDER	REGISTERED INTEREST	APPLICATION DATE	GRANT DATE	EXPIRY DATE /RENEWAL DUE
M 24/51	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	28/05/1984	5/10/1984	4/10/2026
M 24/115	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	17/10/1986	11/06/1987	10/06/2029
M 24/159	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	15/06/1987	9/02/1988	8/02/2030
M 24/208	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	3/11/1987	18/05/1988	17/05/2030
M 24/290	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	30/09/1988	15/06/1989	14/06/2031
M 24/352	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	7/09/1989	13/06/1990	12/06/2032
M 24/376	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	15/06/1990	19/02/1991	18/02/2033
M 24/427	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	20/10/1993	14/12/1993	13/12/2035
M 24/633	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	28/02/1997	20/04/2004	19/04/2025
M 24/754	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	6/10/1998	11/01/1999	10/01/2020
M 24/755	GRANTED	SIBERIA MINING CORPORATION PTY LTD	96/96	16/10/1998	28/11/2007	27/11/2028
M 24/830	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	27/03/2000	30/08/2012	29/08/2033
M 24/845	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	22/09/2000	25/03/2004	24/03/2025
M 24/846	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	22/09/2000	25/03/2004	24/03/2025
M 24/847	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	22/09/2000	25/03/2004	24/03/2025
M 24/848	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	22/09/2000	25/03/2004	24/03/2025
M 24/960	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	16/02/2016
M 29/2	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	16/04/1982	22/12/1982	21/12/2024
M 29/165	GRANTED	CAPE LAMBERT RESOURCES LTD & STUART LESLIE HOOPER	95/100 5/100	20/06/1994	21/12/1994	20/12/2036
M 29/422	GRANTED	MT IDA GOLD PTY LTD	100/100	4/04/2013	22/11/2013	21/11/2034
M 30/1	GRANTED	CARNEGIE GOLD PTY LTD	96/96	7/09/1982	9/05/1984	8/05/2026
M 30/5	GRANTED	CARNEGIE GOLD PTY LTD	96/96	20/12/1983	22/10/1985	21/10/2027
M 30/7	GRANTED	CARNEGIE GOLD PTY LTD	96/96	22/12/1983	27/06/1984	26/06/2026
M 30/16	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/05/1985	16/12/1986	15/12/2028
M 30/21	GRANTED	CARNEGIE GOLD PTY LTD	100/100	14/08/1985	17/03/1986	16/03/2028
M 30/34	GRANTED	CARNEGIE GOLD PTY LTD	100/100	10/11/1986	12/06/1987	11/06/2029
M 30/39	GRANTED	CARNEGIE GOLD PTY LTD	100/100	18/12/1986	18/05/1988	17/05/2030
M 30/42	GRANTED	CARNEGIE GOLD PTY LTD	96/96	25/02/1987	2/12/1987	1/12/2029
M 30/43	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/03/1987	3/11/1987	2/11/2029
M 30/44	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/04/1987	30/10/1987	29/10/2029
M 30/48	GRANTED	CARNEGIE GOLD PTY LTD	100/100	18/05/1987	18/05/1988	17/05/2030
M 30/59	GRANTED	CARNEGIE GOLD PTY LTD	100/100	27/08/1987	29/03/1988	28/03/2030
M 30/60	GRANTED	CARNEGIE GOLD PTY LTD	100/100	28/08/1987	22/01/1988	21/01/2030
M 30/63	GRANTED	CARNEGIE GOLD PTY LTD	100/100	12/10/1987	22/04/1988	21/04/2030
M 30/72	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/03/1988	4/11/1988	3/11/2030
M 30/73	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/03/1988	4/11/1988	3/11/2030
M 30/74	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/03/1988	4/11/1988	3/11/2030
M 30/75	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/03/1988	8/09/1988	7/09/2030
M 30/80	GRANTED	CARNEGIE GOLD PTY LTD	100/100	19/07/1988	4/11/1988	3/11/2030
M 30/84	GRANTED	CARNEGIE GOLD PTY LTD	100/100	30/08/1988	12/01/1989	11/01/2031
M 30/97	GRANTED	CARNEGIE GOLD PTY LTD	100/100	24/04/1990	3/08/1990	2/08/2032
M 30/98	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/06/1990	15/11/1990	14/11/2032
M 30/100	GRANTED	CARNEGIE GOLD PTY LTD	100/100	15/04/1991	1/08/1991	31/07/2033
M 30/102	GRANTED	CARNEGIE GOLD PTY LTD	100/100	7/01/1992	11/12/1992	10/12/2034
M 30/103	GRANTED	CARNEGIE GOLD PTY LTD	100/100	7/01/1992	27/01/1993	26/01/2035
M 30/106	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/05/1993	25/10/1993	24/10/2035
M 30/107	GRANTED	CARNEGIE GOLD PTY LTD	100/100	17/05/1993	25/10/1993	24/10/2035
M 30/108	GRANTED	CARNEGIE GOLD PTY LTD	100/100	14/06/1993	12/10/1993	11/10/2035
M 30/109	GRANTED	CARNEGIE GOLD PTY LTD	100/100	22/07/1993	1/11/1993	31/10/2035
M 30/111	GRANTED	CARNEGIE GOLD PTY LTD	100/100	22/09/1993	22/02/1994	21/02/2036
M 30/122	GRANTED	CARNEGIE GOLD PTY LTD	100/100	2/12/1994	29/09/2004	28/09/2025
M 30/123	GRANTED	CARNEGIE GOLD PTY LTD	100/100	2/12/1994	29/09/2004	28/09/2025

62

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 TENEMENT SCHEDULE

TENEMENT	STATUS	REGISTERED HOLDER	REGISTERED INTEREST	APPLICATION DATE	GRANT DATE	EXPIRY DATE /RENEWAL DUE
M 30/126	GRANTED	CARNEGIE GOLD PTY LTD	100/100	27/11/1995	13/10/2009	12/10/2030
M 30/127	GRANTED	CARNEGIE GOLD PTY LTD	96/96	8/12/1995	12/06/2007	11/06/2028
M 30/129	GRANTED	CARNEGIE GOLD PTY LTD	100/100	20/05/1996	28/11/2007	27/11/2028
M 30/131	GRANTED	CARNEGIE GOLD PTY LTD	96/96	21/10/1996	4/12/1996	3/12/2017
M 30/132	GRANTED	CARNEGIE GOLD PTY LTD	96/96	21/10/1996	4/12/1996	3/12/2017
M 30/133	GRANTED	CARNEGIE GOLD PTY LTD	100/100	6/12/1996	9/07/1999	8/07/2020
M 30/135	GRANTED	CARNEGIE GOLD PTY LTD	100/100	26/03/1997	6/11/2007	5/11/2028
M 30/137	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/04/1997	18/03/1998	17/03/2019
M 30/148	GRANTED	CARNEGIE GOLD PTY LTD	100/100	27/01/1999	17/11/1999	16/11/2020
M 30/150	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2000	4/04/2001	3/04/2022
M 30/157	GRANTED	CARNEGIE GOLD PTY LTD	96/96	26/04/2000	19/12/2002	18/12/2023
M 30/159	GRANTED	CARNEGIE GOLD PTY LTD	100/100	4/10/2000	26/11/2001	25/11/2022
M 30/178	GRANTED	CARNEGIE GOLD PTY LTD	100/100	5/02/2001	18/12/2002	17/12/2023
M 30/182	GRANTED	CARNEGIE GOLD PTY LTD	100/100	9/04/2001	27/06/2003	26/06/2024
M 30/187	GRANTED	CARNEGIE GOLD PTY LTD	100/100	24/08/2001	2/10/2002	1/10/2023
M 30/253	PENDING	CARNEGIE GOLD PTY LTD	100/100	7/08/2014
P 16/2514	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	19/12/2008	18/12/2016
P 16/2774	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	29/06/2012	17/01/2013	16/01/2017
P 16/2775	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	29/06/2012	17/01/2013	16/01/2017
P 24/4182	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	2/02/2007	20/02/2008	19/02/2016
P 24/4750	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	12/06/2013	20/01/2014	19/01/2018
P 24/4751	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	12/06/2013	20/01/2014	19/01/2018
P 24/4752	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	15/07/2013	11/02/2014	10/02/2018
P 24/4753	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	15/07/2013	11/02/2014	10/02/2018
P 24/4754	GRANTED	SIBERIA MINING CORPORATION PTY LTD	100/100	15/07/2013	11/02/2014	10/02/2018
P 24/5073	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	29/02/2016
P 24/5074	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	29/02/2016
P 24/5075	PENDING	SIBERIA MINING CORPORATION PTY LTD	100/100	29/02/2016
P 29/1938	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	17/09/2008	16/09/2016
P 29/1939	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	17/09/2008	16/09/2016
P 29/1940	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	17/09/2008	16/09/2016
P 29/1941	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1942	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1943	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1944	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1945	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1946	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1947	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1948	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1949	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/1950	GRANTED	MT IDA GOLD PTY LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 29/2310	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2311	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2312	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2313	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2314	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2315	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2316	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2317	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2318	GRANTED	MT IDA GOLD PTY LTD	100/100	18/03/2013	7/10/2013	6/10/2017
P 29/2319	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	4/11/2013	3/11/2017
P 29/2320	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	4/11/2013	3/11/2017
P 29/2321	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	4/11/2013	3/11/2017

63

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 TENEMENT SCHEDULE

TENEMENT	STATUS	REGISTERED HOLDER	REGISTERED INTEREST	APPLICATION DATE	GRANT DATE	EXPIRY DATE /RENEWAL DUE
P 29/2322	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	4/11/2013	3/11/2017
P 29/2323	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	5/11/2013	4/11/2017
P 29/2324	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	1/11/2013	31/10/2017
P 29/2325	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	1/11/2013	31/10/2017
P 29/2326	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	4/11/2013	3/11/2017
P 29/2327	GRANTED	MT IDA GOLD PTY LTD	100/100	27/03/2013	4/11/2013	3/11/2017
P 29/2328	GRANTED	MT IDA GOLD PTY LTD	100/100	28/03/2013	1/11/2013	31/10/2017
P 30/1012	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 30/1013	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 30/1014	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 30/1015	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 30/1016	GRANTED	INTERNATIONAL PETROLEUM LTD	100/100	29/01/2007	11/09/2008	10/09/2016
P 30/1017	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1018	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1020	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1021	GRANTED	BARRA RESOURCES LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1023	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1024	GRANTED	BARRA RESOURCES LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1025	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1026	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1027	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1033	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1034	GRANTED	CARNEGIE GOLD PTY LTD	100/100	31/01/2007	2/09/2008	1/09/2016
P 30/1038	GRANTED	CARNEGIE GOLD PTY LTD	100/100	5/02/2007	2/09/2008	1/09/2016
P 30/1040	GRANTED	CARNEGIE GOLD PTY LTD	100/100	5/02/2007	2/09/2008	1/09/2016
P 30/1042	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	1/04/2008	31/03/2016
P 30/1043	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	1/04/2008	31/03/2016
P 30/1051	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	22/09/2008	21/09/2016
P 30/1056	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	20/05/2008	19/05/2016
P 30/1060	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/02/2007	21/04/2008	20/04/2016
P 30/1074	GRANTED	CARNEGIE GOLD PTY LTD	100/100	22/10/2007	6/01/2010	5/01/2018
P 30/1107	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/04/2013	4/12/2013	3/12/2017
P 30/1108	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/04/2013	4/12/2013	3/12/2017
P 30/1109	GRANTED	CARNEGIE GOLD PTY LTD	100/100	8/04/2013	4/12/2013	3/12/2017
P 30/1110	GRANTED	CARNEGIE GOLD PTY LTD	100/100	18/04/2013	4/12/2013	3/12/2017
P 30/1111	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1112	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1113	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1114	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1115	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1116	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1117	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1118	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1119	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1120	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1121	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017
P 30/1122	GRANTED	CARNEGIE GOLD PTY LTD	100/100	29/04/2013	4/12/2013	3/12/2017

64

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 ANNUAL MINERAL RESOURCE STATEMENT

In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources at least annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance date. If there are any material changes to its Mineral Resources over the course of the year, the Company is required to promptly report these changes.

The Company has previously reported the following Mineral Resources pursuant to the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code) 2004 Edition:

JORC Category	Tonnes (‘000)	Au (g/t)
Inferred	8,759	2.6
Indicated	9,962	2.4
Measured	236	2.8
Total	18,957	2.5

The Mineral Resource was first reported to the ASX on June 30 2008 and subsequently in the Company’s Prospectus dated 11 July 2014. There has been no change to the Resource Statement reported in the Company’s Prospectus to the review date of 30 June 2015, or to the date of this Annual Report.

In completing the annual review for the year ended 30 June 2015, the historical resource factors were reviewed and found to be relevant and current. No project area has been converted to an active operation yet and hence no resource depletion has occurred for the review period.

The Mineral Resource Statement

The current Mineral Resource Statement for the Swan Gold Mining Ltd project areas is shown in Table 1 below.

PIT / PROJECT	MEASURED	MEASURED	INDICATED	INDICATED	INFERRED	INFERRED	TOTAL MATERIAL	TOTAL MATERIAL	TOTAL MATERIAL
	('000t)	(g/t Au)	('000t)	(g/t Au)	('000t)	(g/t Au)	('000t)	(g/t Au)	('000oz.)
CALLION	0	0.0	86	2.8	83	2.3	169	2.6	14
FEDERAL FLAG	32	2.0	112	1.8	238	2.5	382	2.3	28
GOLDEN EAGLE	0	0.0	345	2.5	311	2.6	656	2.5	54
LADY GLADYS	0	0.0	1,858	1.9	190	2.4	2,048	1.9	128
LIGHTS OF ISRAEL UNDERGROUND	0	0.0	74	4.3	180	4.2	254	4.2	35
MAKAI SHOOT	0	0.0	1,985	2.0	153	1.7	2,138	2.0	136
SALMON GUMS	0	0.0	199	2.8	108	2.9	307	2.8	28
WAIHI	0	0.0	805	2.4	109	2.4	914	2.4	71
WALHALLA	0	0.0	448	1.8	216	1.4	664	1.7	36
WALHALLA NORTH	0	0.0	94	2.4	13	3.0	107	2.5	9
MT BANJO	0	0.0	109	2.3	126	1.4	235	1.8	14
MACEDON	0	0.0	0	0.0	186	1.8	186	1.8	11
SAND KING	0	0.0	516	3.1	935	3.0	1,451	3.0	142
MISSOURI	98	1.7	831	2.0	909	2.2	1,838	2.1	123
PALMERSTON / CAMPERDOWN	0	0.0	118	2.3	174	2.4	292	2.4	22
BERWICK MOREING	0	0.0	0	0.0	50	2.3	50	2.3	4
BLACK RABBIT	0	0.0	0	0.0	434	3.5	434	3.5	49
THIEL WELL	0	0.0	0	0.0	18	6.0	18	6.0	3
IGUANA	0	0.0	690	2.1	2,032	2.0	2,722	2.0	177
LIZARD	106	4.0	75	3.7	13	2.8	194	3.8	24
RIVERINA AREA	0	0.0	941	2.4	1,644	2.5	2,585	2.5	205
FOREHAND	0	0.0	386	1.7	436	1.9	822	1.8	48

65

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 ANNUAL MINERAL RESOURCE STATEMENT

SILVER TONGUE	0	0.0	155	2.7	19	1.3	174	2.5	14
SUB-TOTAL DAVYHURST	236	2.8	9,827	2.2	8,577	2.4	18,640	2.3	1,372
BALDOCK	0	0	135	18.6	0	0	135	18.6	81
METEOR	0	0	0	0	143	9.3	143	9.3	43
WHINNEN	0	0	0	0	39	13.3	39	13.3	17
SUB-TOTAL MOUNT IDA	0	0.0	135	18.6	182	10.2	317	13.8	140
GRAND TOTAL	236	2.8	9,962	2.4	8,759	2.6	18,957	2.5	1,512

Material Changes and Resource Statement Comparison

There have been no material changes to the Mineral Resource during the review period from 1 July 2014 to 30 June 2015, and to and including the date of this report.

Governance Arrangements and Internal Controls

Eastern Goldfields has ensured that the Mineral Resources quoted are subject to good governance arrangements and internal controls. The Mineral Resources reported have been generated by internal Company geologists’, who are experienced in best practices in modelling and estimation methods. The competent person has also undertaken reviews of the quality and suitability of the underlying information used to generate the resource estimation. In addition, Eastern Goldfields management carry out regular reviews and audits of internal processes and external contractors that have been engaged by the Company.

Competent Person Statement

The information in this Annual Report that relates to Mineral Resources was prepared and first disclosed under the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”) 2004 Edition and has not been updated since to comply with the JORC Code 2012 Edition on the basis that the information has not materially changed since it was last reported. It was first reported to the ASX on 30 June 2008 and subsequently in the Company’s Prospectus dated 11 July 2014. The Company is not aware of any new information or data that materially affects the information as previously released on 11 July 2014 and all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Mineral Resource released on 11 July 2014 was compiled by Mr Ross Whittle-Herbert, who is a member of the Australian Institute of Geoscientists (“AIG”). Mr Whittle-Herbert is a full-time employee of Eastern Goldfields Limited. Mr WhittleHerbert has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the JORC Code 2004. Mr Whittle-Herbert has consented to the inclusion in the Annual Report of the matters based on his information in the form and context in which it appears . The Annual Mineral Resource Statement is based on and fairly represents information and supporting documentation prepared by competent persons. The Annual Mineral Resource Statement as a whole has been approved by Mr Whittle-Herbert.

The information in this Annual Report that relates to exploration results is based on information compiled by Mr James Guy who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the various styles of mineralisation under consideration to qualify as a Competent Person as defined in the 2004 and 2012 Editions of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Guy is a consultant to the Company. The Company confirms that the form and context in which the information is presented has not been materially modified and it is not aware of any new information or data that materially affects the information included in the relevant market announcements, as detailed in the body of this announcement.

66

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 ASX ADDITIONAL INFORMATION

Additional information required by the Australian Securities Exchange Listing Rules and not disclosed elsewhere in this report is set out below, current as at 29 February 2016:

SHAREHOLDINGS (as at 29 February 2016)

Substantial shareholders

The number of shares held by substantial shareholders and their associates are set out below:

**Shareholder **	Number of ordinary shares	**% of issue capital **
Investmet Limited	41,238,671	39.27
Stirling Gold Pty Ltd	8,623,822	8.21

Voting Rights

Each shareholder is entitled to receive notice of and attend and vote at general meetings of the Company. At a general meeting every shareholder present in person or by proxy, representative or attorney will have one vote on a show of hands and on a poll, one vote for each share held.

Distribution of equity security holders

Category	Number of Holders	Shares
1-1,000	2,979	1,265,176
1,001-5,000	1,331	3,027,965
5,001-10,000	225	1,729,064
10,001-100,000	258	8,584,757
100,001-9,999,999,999	47	90,409,928
	4,840	105,016,890

On market buy-back

There is not currently any on market buyback.

Securities on issue

Securities on issue
Category	**Number **
Ordinary Shares	104,950,222
Escrowed (indefinitely)	66,668
	105,016,890

Unmarketable parcels

There were 4,031 holders of less than a marketable parcel of ordinary shares, which as at 29 February 2016 was 3,333 based on a price of $0.15 per share.

Corporate Governance Statement

The Company’s Corporate Governance Statement for the 2015 financial year can be accessed at: http://easterngoldfields.com.au/corporate-governance-2/

67

EASTERN GOLDFIELDS LIMITED AND CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2015 ASX ADDITIONAL INFORMATION

Twenty largest shareholders as at 29 February 2016

	Twenty largest shareholders as	at 29 February 2016
Rank	Holder	Address	Number of Shares	% Interest
1	INVESTMET LIMITED	LEVEL 1 24 MUMFORD PLACE BALCATTA WA 6021	41,238,671	39.27%
2	STIRLING GOLD PTY LTD	PO BOX 870 WEST PERTH WA 6872	8,623,822	8.21%
3	BOTSIS HOLDINGS PTY LTD	POBOX 463WEMBLEY WA6913	5,333,333	5.08%
4	MGMC PTY LTD	C/- PITCHER PARTNERS PO BOX 7191 CLOISTERS SQUARE WA 6850	4,372,339	4.16%
5	MRS ELIZABETH RACHEL KIERNAN	131 STONER ROAD, MARGARET RIVER, WA 6285	4,000,000	3.81%
6	RALMANA PTY LTD	4 KIRKE STREET, BALCATTA WA 6021	3,333,334	3.17%
7	REDIMA PTY LTD	21 COLONIAL GARDENS, MOSMAN PARK WA 6012	3,333,333	3.17%
8	MGMC PTY LTD	C/- PITCHER PARTNERS PO BOX 7191 CLOISTERS SQUARE WA 6850	3,062,539	2.92%
9	HSBC CUSTODY NOMINEES	(AUSTRALIA) LIMITED - A/C 3 GPO BOX 5302 SYDNEY NSW 2001	2,789,019	2.66%
10	J P MORGAN NOMINEES AUSTRALIA	LIMITED LOCKED BAG 20049 MELBOURNE VIC 3001	1,736,365	1.65%
11	HSBC CUSTODY NOMINEES	(AUSTRALIA) LIMITED GPO BOX 5302 SYDNEY NSW 2001	858,150	0.84%
12	MR MARTIN DEPISCH	SEEUFERSTRASSE 18/7 A-9210 POERTSCHACH AUSTRIA	749,959	0.71%
13	ORANGE CORPORATION PTY LTD	39 OCEANIC DRIVE FLOREAT WA 6014	700,000	0.67%
14	BOTSIS HOLDING PTY LTD	PO BOX 463 WEMBLEY WA 6913	666,667	0.63%
15	LITTLE BRETON NOMINEES PTY LTD	PO BOX 896 COTTESLOE WA 6911	666,667	0.63%
16	MULLOWAY PTY LTD	PO BOX Z5153 PERTH WA 6831	666,667	0.63%
17	AMP LIFE LIMITED	PO BOX R209 ROYAL EXCHANGE NSW 1225	662,558	0.63%
18	WESTNET HOLDINGS PTY LTD	PO BOX Z5153 PERTH WA 6861	600,000	0.57%
19	JP MORGAN NOMINEES AUSTRALIA	LIMITED LOCKED BAG 20049 MELBOURNE VIC 3001	500,564	0.48%
20	MINERAL RESOURCES LIMITED	25 WELLARD STREET BIBRA LAKE WA 6163	500,000	0.48%

68