ORBMINCO LIMITED — Audit Report / Information 2005

Sep 12, 2005

MONARO MINING NL

ABN: 99 073 155 781

Pro-forma Balance Sheet (post IPO) as at 12 September 2005

	Notes	12 Sept 2005
Current assets		\$
Cash assets		2953946
Total current assets		2953946
Non-current assets
Other Financial Assets		40 000
Total non-current assets		40 000
Total assets		2993946
Current liabilities
Payables		174 187
Borrowings (unsecured)		42967
Total current liabilities		217 154
Total liabilities		217 154
Net assets		2776792
Shareholders equity
Contributed equity		2785186
Accumulated losses		(8394)
Total shareholder equity		2776792

ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS

All financial information disclosed in the pro-forma balance sheet shown above has been prepared in accordance with current generally accepted accounting principles in Australia ('Australian GAAP').

The Company will be required to adopt Australian Equivalents to International Financial Reporting Standards ('AIFRS') from 1 July 2005.

As the company has not yet commenced operations the balance sheet assets immediately prior to ASX listing comprise cash and security bonds. As such the differences between current Australian GAAP and AIFRS presently have no material impact on the financial position and financial performance of the Company.

The principal differences in accounting policies that are expected to arise in the future from the adoption of AIFRS are as follows:

. Income taxes: the Company will be required to use a balance sheet approach, rather than an income statement approach. This method focuses on the tax effect of transactions or other events that affect amounts recognised in the Balance Sheet; and

· Exploration expenditure: under AASB 6 "Exploration for and Evaluation of Mineral Resources", entities recognising exploration and evaluation assets must perform impairment tests on those assets when facts and circumstances suggest that the carrying amount of those assets may be impaired.

The above summary should not be taken as an exhaustive list of all the differences between current Australian GAAP.