UNITED OROGEN LIMITED ABN 45 115 593 005

ANNUAL REPORT

30 June 2011

C O R P O R A T E D I R E C T O R Y

Directors

Auditors

David Alan Zohar John Karajas Zhukov Pervan Noel Taylor

Rothsay Chartered Accountants 96 Parry Street Perth Western Australia 6000

Solicitors

Company Secretary

Jacy Leu

Lawton Gillon Level 11 16 St Georges Terrace Perth Western Australia 6000

Registered Office

Share Registry

Level 7, 231 Adelaide Terrace Perth Western Australia 6000 Ph: 08 9225 4936

Computershare 2/45 St Georges Terrace PERTH WA 6000

Head Office

Website address

Level 7, 231 Adelaide Terrace Perth WA 6000 Ph: 08 9225 4936

http://www.uog.com.au

Country of Incorporation

United Orogen Ltd is domiciled and incorporated in Australia

Stock Exchange Listing

United Orogen Ltd is listed on the Australian Securities Exchange. ASX Code UOG, UOGO

C O N T E N T S

Corporate Governance .................................................................................................................................. 1 Directors‟ Report ............................................................................................................................................... 6 Auditor‟s Independence Declaration ........................................................................................................ 23 Statement of Comprehensive Income ....................................................................................................... 24 Statement of Financial Position .................................................................................................................... 25 Statement of Changes in Equity .................................................................................................................. 26 Statement of Cash Flows ............................................................................................................................... 27 Notes to the Financial Statements............................................................................................................... 28 Directors‟ Declaration.................................................................................................................................... 51 Audit Report ..................................................................................................................................................... 52 Shareholder Information ............................................................................................................................... 54 Interest in Mining Tenements ........................................................................................................................ 57

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CORPORATE GOVERNANCE REPORT UNITED OROGEN LIMITED (“THE COMPANY”)

Introduction

The Company has adopted comprehensive systems of control and accountability as the basis for the administration of corporate governance. The Board is committed to administering the policies and procedures with openness and integrity and pursuing the true spirit of corporate governance commensurate with the Company‟s needs. To the extent they are applicable, the Company has adopted the Eight Essential Corporate Governance Principles and Best Practice Recommendations (“Recommendations”) as published by ASX Corporate Governance Council. Where, after due consideration, the Company's corporate governance practices depart from the Recommendations, the Board has offered full disclosure of the nature of, and reason for, the adoption of its own practice.

As the Company‟s activities develop in size, nature and scope, the size of the Board and the implementation of additional corporate governance structures will be given further consideration.

Board Composition

The skills, experience and expertise relevant to the position of each Director who is in office at the date of the financial report and their term of office are detailed in the Directors' Report.

There is no formal policy or procedure regarding the taking of professional advice by the independent directors, however no restrictions are placed on the independent directors to take advice on matters arising from their roles as independent directors of the Company, or the reimbursement of the costs incurred by the Company.

Dr Pervan and Mr Karajas are considered by the Board to be independent directors. The determination by the Board as to whether individual directors are independent is a matter of judgment. In making this determination the Board has followed the guidance in Box 2.1 of the Recommendations and the Guide to Reporting on Principle 2. The Board considers the relationships the independent directors have with the Company do not materially impact on their independence. In determining the materiality of these relationships, the Board has considered both quantitative and qualitative factors. In determining the quantitative factors the Board considers that a relationship is immaterial where it is equal to or less than 5% of the base amount. In applying this level of materiality to the relationship of the independent directors in the case of shareholders and suppliers, the Board considers that the independent directors‟ interest is less than 5% of the base amount. In respect to the qualitative measures the Board has considered the factors affecting the independent directors‟ relationship with the Company and consider these qualitative factors to be immaterial in the assessment of their independence.

Disclosure as to the nature and amount of remuneration paid to the Directors of the Company is included in the Directors report and notes to the financial statements in the Company‟s annual report each year. The structure and objectives of the remuneration policy and its links to the Company‟s performance is disclosed in the annual Directors‟ Report. The only form of retirement benefit to which non-executive directors are entitled, is superannuation.

Trading Policy

The Company‟s policy regarding directors and employees trading in its securities is set by the Board of directors. The policy restricts directors and employees from acting on material information until it has been released to the market and adequate time has been given for this to be reflected in the security‟s prices.

Remuneration Policy

The Company‟s remuneration policy was developed by and approved by the Board. All executives receive a salary and statutory superannuation.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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The Company does not participate in share based remuneration for its executives but can issue share options to Directors, employees and consultants. The terms of the share options to Directors, employees and consultants are based on what similar sized companies in the mining industry are offering. All share options to be issued to Directors require shareholder approval before being issued.

The amounts of remuneration for all Directors, including monetary and non-monetary components, are detailed in the Directors Report under the key management personnel remuneration heading. All remuneration paid to Executives is valued at the cost to the Company and expenses. Shares given to Executives are valued as the difference in the market value of those shares and the amount paid by the Executive. Options given to Executives are valued using the Black-Scholes methodology.

Corporate Reporting

The Directors has made the following certifications to the Board:

that the Company‟s financial reports are complete and present a true and fair view, in all material respects, of the financial condition and operational results of the Company and are in accordance with relevant accounting standards; and
that the above statement is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board and that the Company‟s risk management and internal compliance and control is operating efficiently and effectively in all material respects.

Code of Conduct

The Company has developed a Code of Conduct (the Code) which has been fully endorsed by the Board and applies to all directors and employees. The Code is regularly reviewed and updated as necessary to ensure it reflects the highest standards of behaviour and professionalism and the practices necessary to maintain confidence in the Company‟s integrity.

In summary, the Code requires that at all times all Company personnel act with the utmost integrity, objectivity, in the best interests of the Company and in compliance with the letter and the spirit of the law and Company policies.

Any breaches of the Code are reported to the chairman in the first instance for notification to the Board.

The directors are satisfied that the Company has complied with its policies on ethical standards, including trading in securities.

Continuous disclosure and shareholder communication

The Company has a policy that information concerning the Company that a reasonable person would expect to have a material effect on the price of the Company‟s securities is continuously disclosed as required under the Australian Stock Exchange (ASX) listing rules.

The Company encourages communication with shareholders and the attendance and effective participation by shareholders at general meetings.

The Company Secretary has been nominated as the person responsible for communications with the ASX. This role includes responsibility for ensuring compliance with the continuous disclosure requirements in the ASX Listing Rules and overseeing and co-ordinating information disclosure to the ASX, analysts, brokers, shareholders, the media and the public.

All information disclosed to the ASX is posted on the Company‟s website as soon as it is disclosed to the ASX.

Annual and half yearly reports are made available on the Company‟s website and mailed to those shareholders who request a hard copy.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Explanations for Departures from Best Practice Recommendations

Principle 1 Recommendation 1.1, 1.2, 1.3 Notification of Departure:

The Company has not: (1) formally disclosed the functions reserved to the Board and those delegated to senior executives; (2) formally disclosed the process for evaluating the performance of senior executives, and; (3) whether a performance evaluation for senior executives has taken place in the reporting period and whether it was in accordance with the process which is to be disclosed.

Explanation for Departure:

The Board recognises the importance of distinguishing between the respective roles and responsibilities of the Board and management, and evaluating the performance of senior executives. The Board has established a framework for the management of the Company and the roles and responsibilities of the Board and management. Previously, due to the small size of the Board and of the Company, the Board did not think that it was necessary to formally document the roles of the Board and management as these roles were clearly understood by all members of the Board and management. The Board is responsible for the strategic direction of the Company, establishing goals for management and monitoring the achievement of these goals, monitoring the overall corporate governance of the Company and ensuring that shareholder value is increased.

Principle 2 Recommendation 2.1 Notification of Departure:

The Board does not have a majority of independent Directors.

Explanation for Departure:

The Board has been structured such that its composition and size will enable it to effectively discharge its responsibilities and duties. Each Director has the relevant industry experience and specific expertise relevant to the Company‟s business and level of operations. The Board considers that its structure is, and will continue to be, appropriate in the context of the Company‟s recent history. The Company considers that the non-independent Directors possess the skills and experience suitable for building the Company. Furthermore, the Board considers that in the current phase of the Company‟s growth, the Company‟s shareholders are better served by directors who have a vested interest in the Company. The Board intends to reconsider its composition as the Company‟s operations evolve, and may appoint independent directors as it deems appropriate.

As of the date of this report the Company has 2 non-independent directors (including the Chairman) and 2 independent directors.

Principle 2 Recommendation 2.4 Notification of Departure:

The full Board carries out the role of a nomination committee, and therefore a charter relevant to the specific functions of a nomination committee have not been adopted.

Explanation for Departure:

The Board considers that no efficiencies or other benefits would be gained by establishing a separate nomination committee, in particular at this early stage of the Company‟s operations, where the Company‟s focus is on the retention of directors and senior executives. In the future, as the Company grows and increases in size and level of activity, the Board will reconsider the establishment of a separate nomination committee.

Principle 2 Recommendation 2.5 Notification of Departure:

The Company has not disclosed the process for evaluating the performance of the Board, and individual directors.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Explanation for Departure:

The Board considers that at this time no efficiencies or other benefits would be gained by introducing formal evaluations. In the future, as the Company grows and increases in size and activity, the Board will consider the establishment of formal Board and individual director evaluation processes.

Principle 2 Recommendation 2.6 Notification of Departure:

The Company has not disclosed whether a performance evaluation for the Board and directors has taken place in the reporting period and whether it was in accordance with a disclosed process.

Explanation for Departure:

Principle 3 Recommendation 3.2, 3.3, 3.5 Notification of Departure:

The Company has not established and disclosed a diversity policy.

Explanation for Departure:

The Board considers that at this time no efficiencies or other benefits would be gained by introducing a formal diversity policy. In the future, as the Company grows and increases in size and activity, the Board will consider the establishment of a formal diversity policy.

Currently there is 1 woman in the Company (being the Company Secretary). Other than the Board members, there are no employees within the Company.

Principle 4 Recommendation 4.1, 4.2, 4.3, 4.4 Notification of Departure:

There is no separate Audit Committee.

Explanation for Departure:

The Company‟s financial statements are prepared by the external consultants and reviewed in detail by the Board. The Board also relies on the functions and capabilities of its external auditors to ensure proper audit of financial statements. While the Board considers this process sufficient to ensure integrity in financial reporting in the current circumstances, it will continue to monitor whether any further safeguards are required and make changes as appropriate.

Principle 6 Recommendation 6.1, 6.2 Notification of Departure:

The Company does not have a formal documented Shareholder communication policy.

Explanation for Departure:

The Company strongly encourages more communication between the shareholders and the Company and Board. All general meetings include briefings by Board members to provide a deeper insight into the Company, opportunities for the shareholders to have their questions answered, and following all general meetings, the directors encourage shareholders to chat informally with them. As the Company grows in size, the Board is very keen to develop more formal and expansive communications with shareholders.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Principle 7 Recommendation 7.1, 7.2, 7.4 Notification of Departure:

The Company has not established and disclosed its risk management policies and assessment framework.

Explanation for Departure:

The Board is aware of the various risks that affect the Company and its particular business. As the Company develops, the Board will further develop appropriate procedures to deal with risk oversight and management and internal compliance, taking into account the size of the Company and the stage of development of its projects.

Principle 8 Recommendation 8.1, 8.2, 8.4 Notification for departure:

The Company has not established a separate remuneration committee.

Explanation for Departure:

Due to the early stage of development and small size of the Company, a separate remuneration committee was not considered to add any efficiency to the process of determining the levels of remuneration for the Directors and key executives. The Board considers that it is more appropriate to set aside time at 2 Board meetings each year to specifically address matters that would ordinarily fall to a remuneration committee. In addition, all matters of remuneration will continue to be in accordance with Corporations Act requirements, especially in respect of related party transactions. That is, none of the Directors participate in any deliberations regarding their own remuneration or related issues.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Your directors present their report on United Orogen Limited (the Company) for the year ended 30 June 2011.

DIRECTORS

The following persons were directors of the company during the whole of the financial year and up to the date of this report.

DAVID ALAN ZOHAR BSc DipEd Executive Director

Mr Zohar has undertaken undergraduate studies in Geology and post graduate studies in Accountancy and Commercial Law. He has been active in the exploration industry for over 20 years. He has been a director and/or CEO of a number of exploration companies and has also negotiated numerous agreements with various companies and other participants within the mining industry. He has been involved in the formation and/or listing on the ASX of several public mining companies. Directorships of other listed public companies over the past three years are Red River Resources Limited, Iron Mountain Mining Ltd, Actinogen Ltd, Eagle Nickel Ltd, Terrain Minerals Ltd and Aluminex Resources Ltd.

Mr Zohar holds 21,955,721 ordinary shares and 6,563,774 options in United Orogen Limited.

JOHN KARAJAS BSc (Hons) MAIG MPESA Non Executive Director

Mr Karajas is an exploration geologist with over 30 years of experience in both the mining and oil industries. After graduating from the University of Western Australia with a BSc (Hons) in 1970, he gained his grounding in the mining industry by working for mining companies, Falconbridge, Anaconda and Hanna Mining. This period extended through to 1982 and was predominantly spent in Western Australia but included three years in Mt Isa. Commodities explored for include nickel, copper/lead/zinc, gold, phosphate, taconitic iron ore, tin/tantalite and lignite/oil shale. Between 1982 and 1985 he gained his initial experience in oil exploration by working for Eagle Corporation and IEDC (Australia). This period was spent in working on sedimentary basins in Western Australia and included basin studies, well-site geology, and other duties related to oil and gas exploration. From 1986 onwards, he has worked predominantly as a consultant/contract geologist for a wide range of mining and oil industry clients, both within Australia and abroad. Periods of a more managerial nature have included:

1989 – 1991 Technical Director of King Mining Ltd 1992 – 1995 Technical Director of Omega Oil NL 1996 – 1997 Exploration Vice President of Icelandic Gold Corporation

He is currently a Member of the Australian Institute of Geoscientists.

Mr Karajas has held a directorship over the past three years in the listed public company, Red River Resources Limited.

Mr Karajas holds 5,525,000 ordinary shares in United Orogen Limited.

ZHUKOV (Zeke) PERVAN MB, BS(WA), FRACGP, FAICD Non-Executive Director and Chairman

Dr Pervan is a Doctor of Medicine with over 35 years experience in various capacities in Western Australia. He has consulted to several university and government bodies in many areas. He has conducted original research in collaboration with the University of Western Australia Departments of Microbiology and Human Movement. This research has been published in international journals. In the past Dr Pervan has served as a Director of several public companies involved in exploration and in the general commercial world, including Agforce Limited, Gold Lake Mining Pty Ltd, Innovative Coatings

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Limited and Visionglow Global Limited. Directorships of listed public companies over the past three years are Actinogen Ltd, Eagle Nickel Ltd and Iron Mountain Mining Ltd.

Mr Pervan holds 412,500 ordinary shares and 137,500 options in United Orogen Limited.

WILLIAM EDWIN BANNISTER (resigned 17 December 2010) Msc AWASM Managing Director

Mr Bannister has over 40 years experience in exploration and mining geology. He has extensive experience with uranium exploration in Western Australia as well as experience in precious metals. Mr Bannister worked in Western Mining Corporation in a number of locations and positions, including senior geologist, and then joined the Tenneco group of companies to rise to the position of Australian Exploration Manager – Minerals. For the past 20 years he has been an independent geologist and consultant. Companies consulted to include WMC, Outokompu Mining (Australia) Pty Ltd and numerous participants in the mining industry. Mr Bannister has held a directorship over the past three years in the public company, Terrain Minerals Ltd.

Mr Bannister holds 25,000 ordinary shares in United Orogen Limited.

NOEL TAYLOR (appointed 30 November 2010) Managing Director

Mr Taylor is a Geologist with over 30 years experience in the Mining and Exploration industry, including in Australia, Africa and Europe. He has held senior posts with both junior explorers and major mining companies including MIM, Sons of Gwalia and Rand Mines in South Africa. Mr Taylor was previously Managing Director of Balkans Gold Ltd, an ASX listed junior exploring Europe, and was a Director of Bronzewing Gold NL, an unlisted West Australian junior exploring the goldfields.

Mr Taylor holds nil ordinary shares and 2,000,000 options in United Orogen Limited.

Company Secretaries

Mark Killmier (appointed 20 July 2009) (resigned 13 May 2011) MBA (UWA), GAICD, FCPA, GDCorpGovASXLE, GradDipAppFin, B.Ec.(Adel)

Mr Killmier has over 27 years experience in Business and Finance, working in the mining, manufacturing and engineering sectors, in Australia and the United Kingdom. He was previously the Company Secretary of Millennium Minerals Ltd and until 13 May 2011 was the company secretary of Iron Mountain Mining Ltd, Actinogen Ltd, Eagle Nickel Ltd and Red River Resources Ltd. Mr Killmier has a MBA from the University of Western Australia, is a Fellow member of CPA (Certified Practising Accountants) Australia, and holds a Graduate Diploma in the Corporate Governance of ASX Listed Entities.

Directorships – Nil

Jacy Leu (appointed 13 May 2011)

BSc DipAcc

Ms Leu has over 14 years experience in the accounting and administration profession including 8 years within the mining industry. She previously held positions with Millennium Minerals Ltd, an ASX-listed gold exploration and mining company, where her responsibilities included assisting the Company Secretary. She holds a Bachelor of Science in Mathematical Sciences, and a Diploma in Accounting.

Principal Activities

The principal activity of the Company during the course of the financial year was mineral exploration.

Operating Results

The Company made a loss after tax of $265,613 (2010: $1,004,669) for the year ended 30 June 2011.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Dividends

No dividends were paid or declared during the financial year. No recommendation for payment of dividends has been made.

Review of Operations

Exploration Highlights

In line with the Company‟s exploration policy of targeting the margin of the yilgarn craton for gold and base metals where the company believes it is underexplored; applications have been made for prospective additional exploration properties. These include the Redmond and Tambellup projects north of Albany and the Victoria Desert North Project situated 250km east north east of Kalgoorlie. The Victoria Desert North and Gunnedo applications have recently been granted and exploration work can now be progressed.

Corporate Affairs

Non-renounceable pro rata rights issue

On 18 April 2011 the Company announced a one (1) for two (2) non-renounceable pro rata rights issue of new UOG shares at an issue price of 3 cents for each new share, with one (1) free attaching option (exercisable at 20 cents and expiring on 31 March 2016) for every one (1) new UOG share issued. The Rights Issue closed on 27 May 2011 raising $361,714 (issue of 12,057,147 new UOG shares and 12,057,147 free attaching options). The shortfall offer closed on 27 August 2011 raising $609,878 (issue of 20,329,279 new UOG shares and 20,329,279 free attaching options) resulting in a fully subscribed rights issue.

Sale of 113 Mackie Street, Victoria Park, WA

An agreement was reached with Iron Mountain Mining Limited for the sale of 113 Mackie Street, Victoria Park, Western Australia, for the payment of $85,000, the issue of 10 million fully paid ordinary shares in Iron Mountain Limited and the grant of 15 million options exercisable at 20 cents each on or before 1 May 2016 on the terms set out in the Explanatory Memorandum, in the notice of meeting announced on the 18[th] April 2011. The sale was ratified by shareholders at a general meeting held on Friday 27[th] May 2011.

Sale of Northern Territory Tenements to Iron Mountain Mining Limited (Treasure (EL25346) Florence Creek (EL25894) and Lucky U (EL25329))

An agreement was reached with Iron Mountain Mining Limited for the sale of Northern Territory tenements for the issue of 3.5 million fully paid ordinary shares in Iron Mountain Mining Limited and the grant of 15 million 20 cent options exercisable on or before 1 May 2016 on the terms set out in the Explanatory Memorandum, in the notice of meeting announced on the 18 April 2011. The sale was ratified by shareholders at a general meeting held on Friday 27 May 2011.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Exploration Activities

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Horseshoe Project (100%)

(Horseshoe West E52/2016 & Horseshoe South E52/2569)

Horseshoe West E52/2016 lies between the Horseshoe Lights copper-gold deposit which is 10 km to the east and the Fortnum Gold Mine situated 12 km to the west, while Horseshoe South is situated 3km south of the Horseshoe Lights copper-gold deposit. The main target sought is a copper-gold deposit similar to that of the old Horseshoe Lights mine, which has produced 1.6 million tonnes for 217,500ozs of gold at a grade of 4.29gm/t and 1.7 million tonnes treated for 54,800 tonnes of copper (3.24%); 94,000ozs Gold (1.73gm/t); 2,928,000ozs silver (53.9gm/t) and 52,800kg of mercury (31.3gm/t).

The Horseshoe Lights deposit is hosted by the Narracoota Formation in close proximity to the overlying Ravelstone Formation (Thaduna Greywackes).

The Horseshoe West prospect being explored by United Orogen is occupied by Thaduna Greywackies of the Ravelstone Formation where exposed but much of the ground is covered by sands, clays and gravels. Rock chip sampling has produced up to 52ppb gold and soil sampling has given up to 38 ppb gold.

The Horseshoe South prospect lies 3km south of the old Horseshoe Lights mine. It occupies 3km² and it is known to contain Narracoota Volcanics. This prospect will be targeted for north west trending gold bearing structures.

A Helicopter borne XTEM Electromagnetic Airborne Geophysical survey was completed by GPX Surveys and our consultant geophysical group Newexco Services Pty Ltd analysed the data and determined no deep conductors were detected and therefore no massive sulphides would be present. The survey covered an area of 15 km² at the Horseshoe West tenement in an area of anomalous soil samples produced from the earlier work and a smaller area of 3km² on the Horseshoe South tenement. Regional geophysical and the tenement soil geochemical data are being examined within a structural framework for possible associated gold targets.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Victoria Desert Project (100%)

(Victoria Desert E39/1528 & Victoria Desert North E39/1594)

The Project area is situated 250km ENE of Kalgoorlie and covers an area of approximately 144km² and is prospective for gold, base metals and uranium.

E39/1528 contains a north west trending magnetic high interpreted to be part of a remnant greenstone belt that would be prospective for gold. Previous exploration identified gold and base metals anomalies which were delineated from 900 short vacuum drilling holes varying in depth from 3 to 6 metres. Follow up closer spaced infill surface sampling is planned with the aim of identifying drill targets in the vicinity of the previous Gold and base metals anomalies.

The northern part of the project E39/1594 is underlain by narrow belts of north west trending greenstone within granites interpreted from aeromagnetic surveys. The area is therefore prospective for gold and base metals. A previous explorer identified 6 regional untested gold targets 2 of which fall within the Company‟s tenements and both of which target pressure shadows associated with an interpreted north-west trending ovoid intrusive. Also associated with either side of this structure, are two prospective interpreted north-west trending shear zones. The Company will follow up these targets with surface sampling with an aim of identifying drill targets.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Gunnedo Project (100%)

(EL69/2808)

The exploration licence covers a coincident gravity and magnetic anomaly within the Eucla Basin. The basement is thought to be an Achaean craton. The targets are base metals and gold. Gunnedo is situated 450 km east of Kalgoorlie and lies partly on the Gunnedorah Pastoral Lease; access is along the Transcontinental Railway line. The targets are deep and are based on geophysical responces such as gravity and magnetic. This exploration area is grass roots and new but the potential is for large deposits.

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Redmond Project (100%)

(E70/4073 application)

This project covers approximately 37km² and is centered on the Blue Gum gold prospect which was reported on in newspapers in the late 1890's. The historical workings are reported to be situated approximately 24km south west of Mt Barker in Western Australia and consisted of several vertical shafts and small pits. With the passage of time all surface evidence has since disappeared due to farming activity. The workings pre-date official Mines Department records, therefore besides the noted 1890's newspaper reports lodged at the department there are no official mining lease records.

The project area lies within the Albany-Fraser Proterozoic Mobile Belt and is prospective for gold and base metals.

Exploration within the tenement area has been limited to some soil sampling carried out by Wilga Mines NL in 1995 which did not yield encouraging results and 4 Rotary Air Blast (RAB) holes drilled in 1997 to approximate depths of 20m each by Tramore Bay Pty Ltd. It was reported these holes were drilled to determine the nature of the geology and the magnetic anomaly situated adjacent to and between the Redmond Road and Blue Gum Creek. The results indicated that mafic rocks were present over a wider area than originally interpolated and not enough information had been collected to determine the areas potential and recommended further exploration. The gold reef reportedly mined in the 1890‟s has therefore not been adequately tested.

The Company's exploration will concentrate on sourcing historical maps and records from the late 1890's to determine the exact location of the reported gold reef and using modern day exploration techniques will determine the gold and base metal potential of the project.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

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Tambellup Project (100%)

(Tambellup E70/4173 Application Tambellup East E70/4174 Application)

The Company has applied for two exploration licenses covering approximately 395km² situated 100km north of Albany and approximately 30km south of Katanning.

The project area lies within the Yilgarn Craton South West Terrane with the Albany-Fraser Proterozoic Mobile Belt lying to the south and is prospective for gold and base metals.

The Company is targeting structural targets for gold mineralisation namely the north west trending Darken fault zone which is interpreted from geophysical work to trend from Boddington situated 137km to the north west and the lesser Kojonup fault which lies 5-6km to the south and runs parallel to the Darken fault.

The only recorded historical exploration of the western project area E70/4173 is an exploration license which was held by Goldport Pty Ltd for a year and surrendered due to financial constraints in 2009. They carried out desktop studies to attempt to identify if structural similarities exist with the Blackburn/Badgebup and Boddington gold deposits. No fieldwork was completed.

The eastern project area E70/4174 was held for a year by Falcon Minerals. They were interested in the area after identifying regionally elevated Ni-Cu values located to the east of Tambellup from the CSIRO/CRC LEME regional laterite geochemical database for the Western Yilgarn Craton. They interpreted an analogy to the Voisey‟s Bay Nickel project in Canada and analysed historic water bores for whole rock, rare earth, base metal and trace elements and concluded that the project contained the essential ingredients to form a mafic hosted Nickel sulphide system. Subsequent geochemical soil sampling over the prospective part of the project area defined nine nickel and copper anomalous areas, eight of which fall within the Company‟s tenement area. They concluded that there appeared to be a mafic source generating the anomalism and recommended a moving loop EM survey to be conducted to better define the targets; this survey or any additional work was not carried out and the tenement was surrendered in 2008.

There has been no other reported exploration within the project area and therefore the area is underexplored and is considered “grassroots exploration”.

Other gold deposits and mineralisation in the region besides the world class Boddington mine 137km to the north west include the Badgebup gold mine located 50 km to the north of E70/4174, some recorded gold mining near Wagin 50 km to the north of E70/4173 carried out in the early 1900‟s and there was also exploration success (3m @ 11g/t Au) in drilling at Nanicup 48km to the north east.

The Company‟s exploration will concentrate on sourcing and analysing data and using modern day exploration techniques which will determine the gold and base metal potential of the project.

Joint Ventures

Canning Basin

EP448, in which United Orogen Limited has a 10% interest is in joint venture with Gulliver Productions Pty Ltd and Indigo Oil Pty Ltd. Gulliver Productions Pty Ltd is the operator of a major exploration program for oil and gas in the West Australian Canning Basin of which EP448 is part.

Exploration Tenements Relinquished, Withdrawn and Divested

Western Australia

Wanarary (E69/2475) and Hann Well (E69/2476)

The target sought was a channel iron deposit and internal research of all the drill holes in the vicinity of these exploration licences plus those tenements held by our Joint Venture partners Empire Resources Ltd and Mr A. Jessop concluded the prospects for this ground was poor therefore the Company withdrew from the Joint venture and surrendered it‟s tenements.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ R E P O R T

Victoria Desert North (Lower) (E39/1620) Application Withdrawn

This application was withdrawn after a review of the data, a lower uranium price and a decision to concentrate on gold exploration in the northern part of this project which is more prospective for gold.

Northern Territory

Sale of Northern Territory Tenements to Iron Mountain Mining Limited (Treasure (EL25346) Florence Creek (EL25894) and Lucky U (EL25329))

An agreement was reached with Iron Mountain Mining Limited for the sale of Northern Territory tenements for the issue of 3.5 million fully paid ordinary shares in Iron Mountain Mining Limited and the grant of 15 million 20 cent options exercisable on or before 1 May 2016 on the terms set out in the Explanatory Memorandum, in the notice of meeting announced on the 18[th] April 2011. The sale was ratified by shareholders at a general meeting held on Friday 27[th] May 2011.

The information within this report as it relates to geology and mineral resources was compiled by the Managing Director, Mr Noel Taylor. He has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code”. Mr Taylor consents to the inclusion in the report of matters based on information in the form and context which it appears.

Significant Changes in State of Affairs

During the year ended 30 June 2011, the company sold a property located at Mackie Street, Victoria Park to Iron Mountain Mining Limited in consideration for 10,000,000 shares, 15,000,000 options in Iron Mountain Mining Limited and $85,000 cash.

During the year ended 30 June 2011, the company sold the following Mineral Tenements:

Florence Creek (EL25894)
Lucky U Project (EL25329)
Treasure Project (EL25346)

to Iron Mountain Mining Limited in consideration for 3,500,000 shares, 15,000,000 options in Iron Mountain Mining Limited and $46,750 cash.

During the year ended 30 June 2011, 2,000,000 options have been issued to the company‟s managing director Noel Taylor, with an exercise price of 20 cents and expiring on 1 May 2016.

There were no other significant changes in the state of affairs of the company during the year other than for the loss for the year as noted elsewhere in this report.

Matters subsequent to the end of the financial year

A General Meeting of shareholders was held on 26 August 2011. At this meeting, the shareholders of the company approved Iron Mountain Mining Ltd taking up 20 million shares (at 3 cents) in the company‟s shortfall from its Right Issue offer (total value of this transaction was $600,000).

No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future years.

Likely developments and expected results of operations

Likely developments, future prospects and business strategies of the operations of the company and the expected results of those operations have not been included in this report as the directors believe, on reasonable grounds, that the inclusion of such information would likely result in unreasonable prejudice to the company.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ R E P O R T

Environmental Regulation

The directors believe the company is not regulated by any significant environmental regulation under a law of the Commonwealth or a State or Territory.

Greenhouse Gas and Energy data reporting requirements

The company has assessed its reporting obligations under the National Greenhouse and Energy Reporting Act 2007 and Energy Efficiency Opportunities Act 2006. For the year ended 30 June 2011 the company was below the reported thresholds for both legislative reporting requirements and therefore is not required to register or report. The company will continue to monitor its registration and reporting requirements however it does not expect to have future reporting requirements.

REMUNERATION REPORT (AUDITED)

The information contained in the remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001 .

Principles used to determine the nature and amount of remuneration

The Company‟s policy for determining the nature and amount of emoluments of board members and senior executives are as follows:

Executive Remuneration

The Company‟s remuneration policy for executive directors is designed to promote superior performance and long term commitment to the Company. Executives receive a base salary which is market related. Overall remuneration policies are subject to the discretion of the Board and can be changed to reflect competitive market and business conditions where it is in the best interests of the Company and its shareholders to do so. The Board‟s reward policy reflects its obligation to align executive‟s remuneration with shareholders‟ interests and retain appropriately qualified executive talent for the benefit of the Company. The main principles of the policy are:

Reward reflects the competitive market in which the Company operates
Individual reward should be linked to performance criteria; and
Executives should be rewarded for both financial and non-financial performance.

Refer below for details of Executive Directors‟ remuneration.

Non- Executive Remuneration

Shareholders approve the maximum aggregate remuneration for Non-Executive Directors. The Board recommends the actual payments to Directors. The maximum aggregate remuneration approved for Non-Executive Directors is currently $100,000. All Directors are entitled to have any indemnity insurance paid by the Company (currently nil). Currently each Non-Executive Director is entitled to receive $45,000 per annum (plus statutory superannuation entitlements).

Refer below for details of Non-Executive Directors‟ remuneration.

The Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to attract the highest calibre of Executives and reward them for performance that results in long-term growth in shareholder wealth.

Executives are also entitled to participate in the employee share and option arrangements. Refer to Note 14(b) of the financial report for details of all Directors‟ share and option holdings.

The Executive Directors and Executives receive a superannuation guarantee contribution required by the government, which is currently 9%, and do not receive any other retirement benefits.

All remuneration paid to directors and executives is valued at the cost to the company and expensed. Options are valued using either the Black-Scholes or binomial methodologies.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ R E P O R T

The board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to the Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting (currently $100,000). Fees for Non-Executive Directors are not linked to the performance of the Company. However, to align Directors‟ interests with shareholder interests, the directors are encouraged to hold shares in the Company and are able to participate in an employee option plan (none adopted to date).

Performance based remuneration

The Company currently has no performance based remuneration component built into Director and executive remuneration packages.

The Board believes that as the company is in its start up phase of development it is not feasible to establish meaningful Key Performance Indicators from which to base Director and Executive remuneration packages. Once the company is more fully established the Board will reconsider this policy.

Details of remuneration

Details of the remuneration of the directors and key management personnel of United Orogen Limited are set out below.

The Key Management Personnel of the company are the directors, company secretaries and chief financial officer. The following personnel are also the 5 highest paid as required to be disclosed under the Corporations Act 2001:

Directors:

David Alan Zohar (Executive Director) John Karajas (Non-Executive Director) Zhukov Pervan (Non-Executive Chairman) William Edwin Bannister (Managing Director) (resigned 17 December 2010) Noel Taylor (Managing Director) (appointed 30 November 2010)

Executives:

Mark Killmier (Chief Financial Officer and Company Secretary) (resigned 13 May 2011) Jacy Leu (Company Secretary) (appointed on 13 May 2011)

Key Management Personnel Remuneration:

2011 Name Directors: David Alan Zohar John Karajas Zhukov Pervan William Edwin Bannister Noel Taylor Executives: Mark Killmier1 Jacy Leu2 Total	Short Term Post- employment Share based payments Cash salary and fees $ Cash bonus $ Superannuation $ Options $ Shares $ Total $ 90,000 - 8,100 - - 98,100 21,747 - 23,253 - - 45,000 45,000 - - - - 45,000 75,096 - 6,750 - - 81,846 141,000 - 22,500 28,800 - 192,300 - - - - - - - - - - - -
	372,843 - 60,603 28,800 - 462,246

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ R E P O R T

1 Mark Killmier was employed and remunerated by Iron Mountain Mining Ltd. Iron Mountain Mining Ltd charged for the time spent by Mr Killmier on the company‟s affairs. Mr Killmier‟s remuneration is reported in the Iron Mountain Mining Ltd annual reports. Mr Killmier resigned as company secretary and chief financial officer on 13 May 2011.

2 Jacy Leu was appointed as company secretary on 13 May 2011. Jacy Leu is employed and remunerated by Iron Mountain Mining Ltd. Iron Mountain Mining Ltd charged for the time spent by Ms Leu on the company‟s affairs. An amount of $8,300 (exc GST) was recharged to the company during the year.

2010 Name David Alan Zohar2 John Karajas Zhukov Pervan William Edwin Bannister Mark Killmier1 Noel Taylor Total	Short Term Post- employment Share based payments Cash salary and fees $ Cash bonus $ Superannuation $ Options $ Shares $ Total $ 90,000 - 8,100 - - 98,100 30,148 - 14,852 - - 45,000 45,000 - - - - 45,000 150,000 - 13,500 - - 163,500 - - - - - - 25,000 - 2,250 - - 27,250
	340,148 - 38,702 - - 378,850

2 David Zohar resigned as company secretary on 20 July 2009 but remains an Executive Director.

There are no short term incentive plans in place for Key Management Personnel at any time during the 2010 or 2011 years.

Additional Information

The table below sets out the performance of the company and the consequences on shareholders‟ wealth for the period from listing on the Australian Stock Exchange on 16 October 2006 to the end of the current financial period.

	2011	2010	2009	2008	2007
Quoted price of ordinary shares at period end	1.7	1.1	3.2	10	13.5
(cents)
Quoted price of options at period end (cents)	0.00	0.1	0.5	4.5	4.5
Loss per share (cents)	0.40	1.55	2.57	1.62	0.91
Dividends paid	-	-	-	-	-

Note: Information is not disclosed for 2006 years and prior as the company was not listed and its securities were not widely available for sale.

Service Agreements and remuneration commitments (audited)

There are no service agreements in place as at 30 June 2011.

The managing director, Noel Taylor‟s employment agreement as the exploration manager commenced on 3 May 2010 with a one year term at the rate of $150,000 per annum plus statutory superannuation. This agreement ended on 3 May 2011, however Mr Taylor remains on the same remuneration and no new service agreement has been established.

There are nil outstanding commitments owed to any of the key management personnel as at 30 June 2011.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ R E P O R T

As at 30 June 2010, the outstanding commitments under the agreement to the key management personnel were as follows:

Due within 1 year Total	Mr Taylor $ Total $ 6,250 6,250
	6,250 6,250

Securitisation Policy

United Orogen Limited‟s security trading policy provides guidance on acceptable transactions in dealing in the Company‟s various securities, including shares, debt notes and options. United Orogen Limited‟s security trading policy defines dealing in company securities to include:

(a) Subscribing for, purchasing or selling Company Securities or entering into an agreement to do any of those things;

(b) Advising, procuring or encouraging another person (including a family member, friend, associate, colleague, family company or family trust) to trade in Company Securities; and

(c) Entering into agreements or transactions which operate to limit the economic risk of a person‟s holdings in Company Securities.

The securities trading policy details acceptable and unacceptable times for trading in Company Securities including detailing potential civil and criminal penalties for misuse of “inside information”. The Directors must not deal in Company Securities without providing written notification to the Chairman. The Chairman must not deal in Company Securities without the prior approval of the Chief Executive Officer. The Directors are responsible for disclosure to the market of all transactions or contracts involving the Company‟s shares.

The United Orogen Limited Employee Option Plan rules contain a restriction on removing the „at risk‟ aspect of the options granted to key management personnel and executives. Participants in the United Orogen Limited Employee Option Plan may not enter into derivative transactions with third parties to eliminate the performance element of the options. This rule is enforced via an annual declaration of compliance by all option plan participants.

End of Audited Remuneration Report

Directors’ Meetings

The following table sets out the number of meetings of the Company‟s Directors held while each Director was in office and the number of meetings attended by each Director:

	Board	Meetings
	Number of	Number of
Director	meetings held	meetings
		attended
Zhukov Pervan	7	7
David Alan Zohar	7	7
John Karajas	7	6
Noel Taylor (appointed 30 November 2010)	5	5
William Edwin Bannister (resigned 17 December 2010)	3	3

Shares Under Option

There are no unissued ordinary shares of United Orogen Limited under option at the date of this report.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ R E P O R T

Insurance of officers

The Company has not, during or since the financial year, in respect of any person who is or has been an officer of the company or a related body corporate paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend legal proceedings.

Indemnity of auditors

The Company has not, during or since the financial year, in respect of any person who is or has been an auditor of the company or a related body corporate indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings.

Proceedings on behalf of the company

No person has applied for leave of Court under section 237 of the Corporations Act 2001 to bring proceedings on behalf of the company or intervene in any proceedings to which the company is party for the purpose of taking responsibility on behalf of the company for all or part of these proceedings.

The company was not a party to any such proceedings during the year.

Non-audit services

The board of Directors is satisfied that the provision of non-audit related services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The Directors are satisfied that any non-audit related services provided do not compromise the external auditor‟s independence for the following reasons:

All non-audit services are reviewed and approved by the Directors prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and
The nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

No fees were paid for non-audit services to the external auditors and their associated entities during the year ended 30 June 2011 and 30 June 2010.

Auditor’s Independence Declaration

The auditor‟s independence declaration, as required under section 307C of the Corporations Act 2001 for the year ended 30 June 2011 has been received and is set out on page 23.

This report is made in accordance with a resolution of Directors.

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Zhukov Pervan Chairman Perth, Western Australia

14 September 2011

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D A U D I T O R S I N D E P E N D E N C E D E C L A R A T I O N

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S T A T E M E N T O F C O M P R E H E N S I V E I N C O M E For the year ended 30 June 2011

Note	2011 $ 2010 $
Revenue from continuing operations 4 Other income 4 Administration Exploration costs Occupancy costs Depreciation Employment costs(including directors) Share of net loss of associates accounted for using the equity method Impairment of available for sale financial assets 9 (Loss) Before Income Tax Income tax expense 5 NET (LOSS) FOR THE YEAR Other Comprehensive Income Changes in the fair value of available for sale financial assets Other comprehensive income for the year net of tax Total comprehensive income for the year attributable to members of the company Basic and diluted earnings/(loss) per share (cents) 23	729,293 68,293 551,687 1,800 (154,676) (151,045) (135,953) (146,497) (14,964) (7,810) (10,840) (11,860) (540,660) (501,403) - - (689,500) (256,147)
	(265,613) (1,004,669) - -

	(265,613) (1,004,669)
	386,864 (70,500)
	386,864 (70,500)

	121,251 (1,075,169)
	(0.40) (1.55)

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

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N As at 30 June 2011

Note	2011 $ 2010 $
CURRENT ASSETS Cash and cash equivalents 6 Trade and other receivables 7 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment 8 Available for sale financial assets 9 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 10 Provisions 11 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed Equity 12 Reserves 13 Accumulated losses TOTAL EQUITY	418,154 688,421 13,989 24,526
	432,143 712,947
	7,907 840,311 2,347,713 584,849
	2,355,620 1,425,160
	2,787,763 2,138,107
	280,914 69,117 8,385 22,223
	289,299 91,340
	289,299 91,340
	2,498,464 2,046,767
	6,999,398 6,697,752 499,544 83,880 (5,000,478) (4,734,865)
	2,498,464 2,046,767

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

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y For the year ended 30 June 2011

2010 Balance as at 1.07.2009 Total comprehensive income for the year Loss for the year Other comprehensive income Change in fair value of available for sale financial assets Total other comprehensive income for the year Total comprehensive income for the year Balance as at 30.06.2010 2011 Balance as at 1.07.2010 Total comprehensive income for the year Loss for the year Other comprehensive income Change in fair value of available for sale financial assets Total other comprehensive income for the year Total comprehensive income for the year Shares issued during the year Capital raising costs Options issued during the year Balance as at 30.06.2011	Contributed Equity $ Accumulated Losses $ Option Reserve $ Available-for- sale Investments Revaluation Reserve $ Total $ 6,697,752 (3,730,196) 80,380 74,000 3,121,936 - (1,004,669) - (1,004,669) - - - (70,500) (70,500)
	- - - (70,500) (70,500)
	- (1,004,669) - (70,500) (1,075,169)
	6,697,752 (4,734,865) 80,380 3,500 2,046,767
	6,697,752 (4,734,865) 80,380 3,500 2,046,767 - (265,613) - - (265,613) - - - 386,864 386,864
	- - - 386,864 386,864
	- (265,613) - 386,864 121,251 363,715 - - - 363,715 (62,069) - - - (62,069) - - 28,800 - 28,800
	6,999,398 (5,000,478) 109,180 390,364 2,498,464

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

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S T A T E M E N T O F C A S H F L O W S For the year ended 30 June 2011

Note CASH FLOWS FROM OPERATING ACTIVITIES Other Income Payments for exploration, evaluation and acquisition costs Payments to suppliers and employees Interest received NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES 19 CASH FLOWS FROM INVESTING ACTIVITIES Payment for plant and equipment Payments for available for sale investments Payments for purchase of investment in associate Proceeds from sale of investment in associate Loans to related entities NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issues of shares Payment of capital raising costs NET CASH (OUTFLOW)/INFLOW FROM FINANCING ACTIVITIES NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the financial year CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 19	2011 $ 2010 $ 114,498 31,503 (135,953) (146,497) (560,687) (634,402) 11,877 34,345
	(570,265) (715,051)
	(1,648) (3,395) - - - - - - - -
	(1,648) (3,395)
	363,715 - (62,069) -
	301,646 -
	(270,267) (718,446) 688,421 1,406,867
	418,154 688,421

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

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board (including Australian Interpretations) and the Corporations Act 2001. The financial statements have been prepared on a going concern basis.

Compliance with IFRS

The financial statements of United Orogen Limited also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets.

Critical accounting estimates and significant judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company‟s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

Financial statement presentation

The Company has applied the revised AASB 101 Presentation of Financial Statements which became effective on 1 January 2009. The revised standard requires the separate presentation of a statement of comprehensive income and a statement of changes in equity. All non-owner changes in equity must now be presented in the statement of comprehensive income. As a consequence, the Company had to change the presentation of its financial statements. Comparative information has been re-presented so that it is also in conformity with the revised standard.

(b) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.

Change in accounting policy

The Company has adopted AASB 8 Operating Segments from 1 July 2009. AASB 8 replaces AASB 114 Segment Reporting . The new standard requires a „management approach‟, under which segment information is presented on the same basis as that used for internal reporting purposes. This change in policy has not changed the number or nature of reportable segments.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(c) Exploration and Evaluation Expenditure

Acquisition, exploration and evaluation expenditure incurred is written off as incurred.

When production commences, development costs will be capitalised for the relevant area of interest and then amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. Any costs of site restoration are provided for during the relevant production stages, (where the liabilities exist) and included in the costs of that stage.

(d) Impairment of assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset‟s fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the statement of comprehensive income.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(e) Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less allowance for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables) is used when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the impairment allowance is the difference between the asset‟s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses. When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against other expenses in the statement of comprehensive income.

(f) Property, Plant & Equipment

Each asset of property, plant and equipment is carried at cost less where applicable, any accumulated depreciation and impairment losses.

Property

Freehold land and buildings are shown at cost less subsequent depreciation for buildings.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

Plant & equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

Depreciation

Items of property, plant and equipment are depreciated using the diminishing value method over their estimated useful lives to the Company. The depreciation rates used for each class of asset for the current period are as follows:

	Land & Buildings	2.5%
	Computer Equipment	50%

Assets are depreciated from the date the asset is ready for use.

The assets‟ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset‟s carrying amount is written down immediately to its recoverable amount if the asset‟s carrying amount is greater than its estimated recoverable amount. The recoverable amount is assessed on the basis of expected net cash flows that will be received from the assets continual use or subsequent disposal.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income.

(g) Income Tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the end of the reporting period.

Deferred income tax is accounted for using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax from the initial recognition of an asset or liability, in a transaction other than a business combination is not accounted for if it arises that at the time of the transaction affects neither accounting or taxable profit nor loss.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the asset is realised or liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

(i) Investment allowances

The Company may be entitled to claim special tax deductions for investments in qualifying assets (investment allowances). The Company accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax expense. A deferred tax asset is recognised for unclaimed tax credits that are carried forward as deferred tax assets.

(h) Employee Benefits

Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within12 months of the reporting date are recognised in other creditors in respect of employees‟ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Long service leave

The liability for long service leave expected to be settled within 12 months of the reporting date is recognised in the provision for employee benefits and is in accordance with (i) above. The liability for long service leave expected to be settled more than 12 months from the reporting date is recognised in the provision for employee benefits and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(i)

Share-based payments

The Company provides benefits to employees (including directors) of the Company in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares („equity-settled transactions‟).

The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award („vesting date‟).

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the directors of the Company, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award.

(j) Investments and other Financial Assets

Classification

The Company classifies its financial assets in the following categories: loans and receivables, and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments or other financial assets at initial recognition.

Recognition

Financial instruments are initially measured at fair value on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the reporting period.

Subsequent Measurement

Available for sale financial assets are subsequently measured at fair value. Changes in the fair value of available for sale financial assets are recognised in the statement of comprehensive income. Details on how the fair value of financial investments is determined are disclosed in note 2.

Loans and receivables

Loans and receivables are non-derivative financial assets initially recognised at fair value with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Impairment

The Company assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity and recognised in the statement of comprehensive income. Impairment losses recognised in the statement of comprehensive income on equity instruments classified as available-for-sale are not reversed through the statement of comprehensive income. If there is evidence of impairment for any of the Company‟s financial assets carried at amortised cost, the loss is measured as the difference between the asset‟s carrying amount and the present value of estimated future cash flows, excluding future credit losses that have not been incurred. The cash flows are discounted at the financial asset‟s original effective interest rate. The loss is recognised in the statement of comprehensive income.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(k) Cash and Cash Equivalents

For the purpose of the Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, high liquid investments with original maturities 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 and bank overdrafts. Bank overdrafts are shown with borrowings in current liabilities in the statement of financial position.

(l) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Option fee income is recognised when payment for the option fee is received. Revenue from the sale of investments is recognised when the relevant sale contract is executed.

(m) Contributed Equity

Ordinary issued share capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction in share proceeds received.

(n) Trade and other payables

Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Company. Payables to related parties are carried at the principal amount. Interest, when charged by the lender, is recognised as an expense on an accrual basis.

(o) Joint Venture Operations

Interest in the joint venture operation is brought to account by including in the respective classifications, the share of individual assets employed and share of liabilities and expenses incurred.

(p) Provisions

Provisions for legal claims and make good obligations are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management‟s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(q) 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.

(r) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(s) Going Concern

For the year ended 30 June 2011, the company recorded a loss of $265,613 (2010: $1,004,669). At 30 June 2011, the cash balance was $418,154 (2010: $688,421).

The accounts have been prepared on a going concern basis. The Directors have determined that future capital raisings or asset sales will be required in order to continue the Company‟s exploration and development of its mining tenements to achieve a position where they can prove exploration reserves.

The ability of the company to continue as a going concern is dependent upon the company raising further capital or realising funds from the sale of assets sufficient to meet the company‟s expenditure commitments.

The Directors have prepared a cash flow forecast for the foreseeable future reflecting the above mentioned expectations and their effect upon United Orogen Ltd. The achievement of the forecast is dependent upon the future capital raising and/or sale of assets, the outcome of which is uncertain.

In the event that sufficient capital raising or asset sales at an amount and timing necessary to meet the future budgeted operational and investing activities of the company is unfavourable the Directors believe that they will be able to contain the operating and investment activities sufficiently to ensure that United Orogen Ltd can meet its debts as and when they become due and payable.

In the event that the events referred to above results in a negative outcome, then the going concern basis of accounting may not be appropriate with the result that the company may have to realise its assets and extinguish its liabilities other than in the normal course of business and in amounts different from that stated in the financial report.

The financial report does not include any adjustments relating to the recoverability or classification of recorded amounts or classification of liabilities that might be necessary should United Orogen Ltd not be able to continue as a going concern.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(t) Earnings per Share

Basic earnings per share

Basic earnings per share is determined by dividing net profit after income tax attributable to owners of the Company, excluding any costs of service equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figure used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financial 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 dilutive potential ordinary shares.

(u) Comparatives

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(v) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2011 reporting periods. The Company‟s assessment of the impact of these new standards and interpretations is set out below.

(i) AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 and AASB 2010- 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (effective from 1 January 2013)

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2013 but is available for early adoption. The Company is yet to assess its full impact. However, initial indications are that it will not affect the Company‟s accounting for its available-for-sale financial assets, as AASB 9 appears to continue the current treatment of the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading.

There will be no impact on the Company‟s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Company does not have any such liabilities. The derecognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The Company has not yet decided when to adopt AASB 9.

(ii) Revised AASB 124 Related Party Disclosures and AASB 2009-12 Amendments to Australian Accounting Standards (effective from 1 January 2011)

In December 2009, the AASB issued a revised AASB 124 Related Party Disclosures . It is effective for accounting periods beginning on or after 1 January 2011 and must be applied retrospectively. The amendment clarifies and simplifies the definition of a related party and removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities. The Company will apply the amended standard from 1 July 2011. When the amendments are applied, the Company will need to disclose any transactions between its subsidiaries and its associates. However, there will be no impact on any of the amounts recognised in the financial statements.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(iii) AASB 2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement (effective from 1 January 2011)

In December 2009, the AASB made an amendment to Interpretation 14 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The amendment removes an unintended consequence of the interpretation related to voluntary prepayments when there is a minimum funding requirement in regard to the entity's defined benefit scheme. It permits entities to recognise an asset for a prepayment of contributions made to cover minimum funding requirements. The Company does not make any such prepayments. The amendment is therefore not expected to have any impact on the Company's financial statements. The Company intends to apply the amendment from 1 July 2011.

(iv) AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (effective from 1 July 2013)

On 30 June 2010, the AASB officially introduced a revised differential reporting framework in Australia. Under this framework, a two-tier differential reporting regime applies to all entities that prepare general purpose financial statements. United Orogen Limited is listed on the ASX and is not eligible to adopt the new Australian Accounting Standards – Reduced Disclosure Requirements. The two standards will therefore have no impact on the financial statements of the Company.

(v) AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets (effective for annual reporting periods beginning on or after 1 July 2011)

Amendments made to AASB 7 Financial Instruments: Disclosures in November 2010 introduce additional disclosures in respect of risk exposures arising from transferred financial assets. The amendments will affect particularly entities that sell, factor, securities, lend or otherwise transfer financial assets to other parties. They are not expected to have any significant impact on the Company‟s disclosures. The Company intends to apply the amendment from 1 July 2011.

(vi) AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets ( effective from 1 January 2012)

In December 2010, the AASB amended AASB 112 Income Taxes to provide a practical approach for measuring deferred tax liabilities and deferred tax assets when investment property is measured using the fair value model. AASB 112 requires the measurement of deferred tax assets or liabilities to reflect the tax consequences that would follow from the way management expects to recover or settle the carrying amount of the relevant assets or liabilities, that is through use or through sale. The amendment introduces a rebuttable presumption that investment property which is measured at fair value is recovered entirely by sale. The Company will apply the amendment from 1 July 2012. It is currently evaluating the impact of the amendment.

None of the other standards or amendments released are expected to have an impact on the Company.

2. FINANCIAL RISK MANAGEMENT

The Company‟s activities expose it to a variety of financial risks: market risk (including interest rate risk and price risk), credit risk and liquidity risk.

Risk management is carried out by the Board in their day to day function as the overseers of the business. Where necessary the Board provides principles for overall risk areas, as well as defined policies for specific risks such as foreign exchange and credit risk.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

Currently the Board has not deemed it necessary to issue written principal cover financial risks.

The Company holds the following financial instruments:

Financial Assets Cash and cash equivalents Trade and other receivables Available-for-sale financial assets Financial Liabilities at amortised cost Trade and other payables	2011 2010 $ $ 418,154 688,421 2,325 7,820 2,347,713 584,849
	2,768,192 1,281,090
	280,914 69,117
	280,914 69,117

(a) Market Risk

(i) Foreign Exchange Risk

The company‟s operations are limited to domestic activities within Australia.

(ii) Price risk

The Company is exposed to equity securities price risk. This arises from investments held by the Company and classified on the statement of financial position as available-for-sale. The Company is not exposed to commodity price risk.

The majority of the Company‟s equity investments are publicly traded and listed on the Australian Securities Exchange.

The company manages equity securities price risk by only investing in companies where the Board has a detailed understanding of its financial and operational position.

The table below summarises the impact of the all ordinaries index on the Company's post-tax profit for the year and on equity. The analysis is based on the assumption that the all ordinaries index had increased by 7.84% (2010 – increased by 9.55%) with all other variables held constant and all the Company‟s equity instruments moved according to the historical correlation with the index.

The Company‟s equity investments do not form part of any quoted index. Accordingly the company has adopted the movement in the all ordinaries index for the purpose of assessing the sensitivity of equity securities price risk as this index is the commonly accepted measure of general quoted equity investment price movement. This methodology and assumptions in measuring equity security price risk is consistent with the prior reporting period.

	Impact on Post Tax Profit	Impact on Post Tax Profit	Impact on Equity	Impact on Equity
	2011	2010	2011	2010
	$	$	$	$
All ordinaries index	689,500	256,147	510,422	413,694

Post tax profit and equity would further increase as a result of gains on equity securities classified as available-for-sale.

Given the nature of the financial assets, the Directors believe the all ordinaries index is the most appropriate benchmark to measure the sensitivity of the price risk of the company‟s listed financial investments. However, it should be noted that the maximum negative impact on net loss is $2,347,713.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(iii) Cash flow and fair value interest rate risk

The Company's main interest rate risk arises from funds on interest bearing deposits. Funds on interest bearing deposits at variable rates expose the Company to cash flow interest rate risk. During 2010 and 2011, the Company‟s funds on deposit at variable rate were denominated in Australian Dollars only.

As at the reporting date, the Company had the following variable rate interest bearing deposits:

	30 June	2011	30 June	2010
	Weighted	Balance	Weighted	Balance
	average		average
	interest rate		interest rate
	%	$	%	$
Funds on deposit	3.95	418,154	2.51	688,421

The company has assessed that the impact of movements in interest rates does not have a material impact on the net profit after tax. Accordingly the company‟s funds on deposit are managed according to the cash flow requirements of the company rather than impact of interest rate risk.

Company sensitivity

At 30 June 2011, if interest rates had changed by -100/+70 basis points (2010 -/+ 80 basis points) from the year-end rates with all other variables held constant, post-tax profit for the year would have been $3,005 lower/$2,104 higher (2010 – change of 80 bps: $10,946 lower/higher), mainly as a result of higher/lower interest income from cash and cash equivalents. Equity would have been $3,005 lower/$2,104 higher (2010 - $10,946 lower/higher) mainly as a result of an increase/decrease in the interest income from cash and cash equivalents. The sensitivity disclosed is based on a reasonable estimate using available information of the possible movement in interest rates applicable to the company‟s investments to illustrate the impact on equity and net profit such movements would have.

(b) Credit risk

Credit risk is managed on a Company basis. Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions and receivables from Joint Venture and Farm-In operations.

The Company‟s maximum exposure to credit risk at the reporting date was:

Financial Assets Cash and cash equivalents Other receivables Total	2011 2010 $ $ 418,154 688,421 2,325 7,820
	420,479 696,241

The Directors believe that there is negligible credit risk with the cash and cash equivalents, as funds are held at call with a reputable Australian Banking Institution with a S & P long term credit rating of AA.

At balance date the company has no outstanding trade receivables.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

(c) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Surplus funds are generally only invested at call interest bearing deposits or in bank bills that are highly liquid and with maturities of less than six months.

Financing arrangements

The company does not have any financing arrangements.

Maturities of financial liabilities

The Company‟s only debt relates to trade payables where payments are generally within 30 days.

(d) Fair Value Measurements

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company is the bid price at the end of the financial year.

The fair value of financial instruments that are not traded in an active market (for example, investments in unlisted subsidiaries) is determined using net asset value.

As of 1 July 2009, United Orogen Limited has adopted the amendment to AASB 7 Financial Instruments: Disclosures which requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)

(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2),and

The following tables present the Company‟s assets measured and recognised at fair value at 30 June 2011. Comparative information has not been provided as permitted by the transitional provisions of the new rules.

Company – at 30 June 2011	Level 1			Total
Assets
Available-for-sale financial assets
Equity securities	2,347,713	-	-	2,347,713
Total assets	2,347,713	-	-	2,347,713

The fair value of financial instruments traded in active markets (such as available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company is the current bid prices at the end of the financial year. These instruments are included in Level 1.

The carrying value of trade receivables and trade payables are assumed to approximate their fair value due to their short-term nature.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

3. Critical Accounting Estimates and Judgements

Key estimates

(i) Impairment

The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

During the year ended 30 June 2011, the Company made significant judgement about the impairment of a number of its available-for-sale financial assets.

The Company follows the guidance of AASB 139 Financial Instruments: Recognition and Measurement on determining when an available-for-sale financial asset is impaired. This determination requires significant judgement. In making this judgement, the Company evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost and the financial health of and near term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows.

The decline in fair value below cost for some of these assets has been considered to be significant and/or prolonged. The Company has recorded an impairment loss during the year ended 30 June 2011, being the transfer of the accumulated fair value adjustments recognised in equity on the impaired available-for-sale financial assets to the statement of comprehensive income.

(ii) Exploration & Evaluation Expenditure

The Company‟s accounting policy for exploration & evaluation expenditure results in the expense to the statement of comprehensive income all exploration & evaluation expenditure. Management has taken the judgement that the company‟s projects are in an early stage of development and as such management have the judgement that there is insufficient evidence to justify the capitalisation of exploration & evaluation expenditure incurred.

4. Revenue From Continuing Activities Sales revenue from continuing operations Other Revenue Interest received Other Income Rental Income Profit on disposal of property, plant and equipment	2011 $ 2010 $ 717,416 33,948 11,877 34,345
	729,293 68,293
	900 1,800 550,787 -
	551,687 1,800

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

5. Income Tax Numerical reconciliation of income tax income to prima facie tax payable Net (Loss) before tax Tax benefit at the Australian tax rate of 30% (2010: 30%) Tax effect of amounts that are not deductible / taxable in calculating taxable income Disposal of investments Non-deductible expenses Provisions & accruals Capital raising costs Impairment of available for sale financial assets Impairment of investments in associates Impairment of related party receivables Tax losses and temporary differences not brought to account Income Tax Expense Tax Losses Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit at 30% Unrecognised temporary differences Temporary differences for which deferred tax assets have not been recognised.  Provisions and accruals  Capital raising costs Unrecognised differed tax assets relating to the above temporary differences 6. Cash and Cash Equivalents Cash at bank and in hand The company‟s exposure to interest rate risk is discussed in note 2(a). The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above. 7. Trade and other receivables Trade receivables Goods and services tax refund Prepayment Refer Note 2 for Financial Risk Management.	2011 $ 2010 $ (265,613) (1,004,669) (79,684) (301,400) (120,447) - 8,640 - 15,146 241 (62,110) (58,883) 206,850 76,844 - - - - 31,605 283,198 - - 3,948,777 3,843,271 1,184,633 1,152,981 105,335 207,032 54,848 194,618 312,367 249,466 93,710 74,840 418,154 688,421
	418,154 688,421
	2,325 7,820 - 9,185 11,664 7,521
	13,989 24,526

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

8. Property, Plant and Equipment Computer and sundry plant and equipment, at cost Accumulated depreciation Land and buildings, at cost Accumulated amortisation TOTAL PROPERTY, PLANT AND EQUIPMENT	2011 $ 2010 $ 34,123 35,206 (26,216) (22,835)
	7,907 12,371
	- 845,602 - (17,662)
	- 827,940

	7,907 840,311

Movements during the year

Movement in the carrying amounts for each class of property, plant & equipment between the beginning and the end of the financial year.

Land & Buildings $ Plant & Equipment $ 827,940 12,371 - 1,648 (821,875) (1,337) (6,065) (4,775)	Land & Buildings $ Plant & Equipment $ 827,940 12,371 - 1,648 (821,875) (1,337) (6,065) (4,775)	Total $ 840,311 1,648 (823,212) (10,840)
- 7,907		7,907
Land & Buildings $ Plant & Equipment $ 834,549 14,227 - 3,395 - - (6,609) (5,251)		Total $ 848,776 3,395 - (11,860)
827,940	12,371	840,311
	2011 $	2010 $
	2,347,713	584,849
	2,347,713	584,849

	584,849	911,496
	2,065,500	-
	-	-
	386,864	(70,500)
	(689,500)	(256,147)
	2,347,713	584,849

9. Available for sale financial assets

Fair value of investments in listed corporations is assessed as the bid price on the Australian Securities Exchange at the close of business on balance date.

10. Trade and other payable

Trade Creditors and accruals Refer Note 2 for Financial Risk Management.

280,914	69,117
280,914	69,117

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

11. Provisions Employee entitlements All provisions are expected to be settled within 12 months. 12. Contributed Equity (a) Issued and Paid Up Capital 76,830,000 (2010: 64,762,853) fully paid ordinary shares Capital raising costs	2011 $	2010 $
	8,385	22,223
	8,385	22,223







	8,053,637	7,689,923

	(1,054,239)	(992,171)
	6,999,398	6,697,752

(b) Movement of fully paid ordinary shares during the period were as follows:

Date Details 1 July 2009 Opening Balance 30 June 2010 Balance 1 July 2010 Opening Balance 31 August 2010 Exercise of Options 31 January 2011 Rights issue Less capital raising costs 30 June 2011 Balance	Number of Shares Issue Price (cents) 64,762,853 64,762,853 64,762,853 10,000 20 12,057,147 3 76,830,000	$ 6,697,752
		6,697,752
		6,697,752 2,000 361,715 (62,069)
		6,999,398

(c) Share Options

The Company has 14,057,147 options on issue as at 30 June 2011.

12,057,147 options are exercisable at $0.20 on or before 31 March 2016. 2,000,000 options which were issued to the company‟s managing director Noel Taylor are exercisable at $0.20 on or before 1 May 2016. 38,329,300 options expired on 4 August 2010.

(d) Terms and Conditions of Issued Capital

Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held. At shareholders‟ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has a vote on a show of hands. Ordinary shares have no par value.

(e) Capital Risk Management

The company‟s objectives when managing capital are to safeguard its ability to continue as a going concern so that the company can provide returns to shareholders and benefits for other stakeholders whilst maintaining an optimal capital structure to reduce the cost of capital. The Company considers capital to consist of cash reserves on hand and available for sale financial assets.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

The company monitors its working capital position against expenditure requirements to undertake its planned exploration program and maintain its ongoing operations. Where required the company will sell assets, issue new securities, raise debt or modify its exploration program to ensure the company‟s working capital requirements are met.

13. Reserves

The Option Reserve is used to recognise fair value of options issued. The available-for-sale investment revaluation reserve recognises the change in value of available for sale assets. Details of movements in reserves are shown below.

Option Reserve Balance at the beginning of the year Option expense Balance at end of year Available for sale investments revaluation reserve Balance at the beginning of the year Change in fair value Balance at end of year	2011 $	2010 $


	80,380	80,380
	28,800	-
	109,180	80,380



	3,500	74,000
	386,864	(70,500)
	390,364	3,500

14. Key Management Personnel Disclosures

(a) Key Management Personnel Compensation:

Short-term Post employment Other long-term Termination benefits Share-based payment	The Company The Company 2011 2010 $ $ 372,843 340,148 60,603 38,702 - - - - 28,800 -
	462,246 378,850

The detailed remuneration disclosures are provided in the remuneration report on pages 18 to 20.

(b) Equity Instrument Disclosure relating to key management personnel

At balance date the relevant interest of each Director in ordinary fully paid shares and options of the Company were:

2011 Director / Key Management Personnel David Alan Zohar John Karajas Zhukov Pervan William Bannister Mark Killmier Jacy Leu	Fully Paid Ordinary Shares Balance at beginning of the year Shares issued - Direct Transfers/ Ceasing to be a director1 Balance at the end of the year 15,457,503 6,563,774 (65,556) 21,955,721 5,525,000 - - 5,525,000 275,000 137,500 - 412,500 25,000 - - 25,000 - - - - - - - -
	21,282,503 6,701,274 (65,556) 27,918,221

No shares are held nominally.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

Director / Key Management Personnel David Alan Zohar John Karajas Zhukov Pervan William Bannister Noel Taylor Mark Killmier Jacy Leu 2010 Director / Key Management Personnel David Alan Zohar John Karajas Zhukov Pervan William Bannister Mark Killmier Noel Taylor 2010 Director / Key Management Personnel David Alan Zohar John Karajas Zhukov Pervan William Bannister Mark Killmier Noel Taylor	Share Options Balance at beginning of the year Options issued - Direct Options Expired Balance at the end of the year 11,410,000 6,563,774 (11,410,000) 6,563,774 2,012,500 - (2,012,500) - 2,212,500 137,500 (2,212,500) 137,500 2,012,500 - (2,012,500) - - 2,000,000 - 2,000,000 - - - - - - - -
	17,647,500 8,701,274 17,647,500 8,701,274
	Fully Paid Ordinary Shares Balance at beginning of the year Shares issued - Direct Transfers/ Ceasing to be a director1 Balance at the end of the year 15,239,903 - 217,600 15,457,503 5,525,000 - - 5,525,000 275,000 - - 275,000 25,000 - - 25,000 - - - - - - - -
	21,064,903 - 217,600 21,282,503
	Share Options Balance at beginning of the year Option issued - Direct Transfers/ Ceasing to be a director Balance at the end of the year 11,660,000 - (250,000) 11,410,000 2,012,500 - - 2,012,500 2,212,500 - - 2,212,500 2,012,500 - - 2,012,500 - - - - - - - -
	17,897,500 - (250,000) 17,647,500

Other transactions and balances with key management personnel are disclosed in Note 17 (b).

15. Remuneration of Auditor Amounts paid or payable to BDO Audit (WA) Pty Ltd for: - an audit or review of the financial statements of the entity Amounts paid or payable to Rothsay for: - An audit or review of the financial statements of the entity	2011 $ 2010 $ $ 523 25,998 31,050 - 26,521 31,050

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

16. Segment Information

The Company operates in the mineral exploration industry in Australia only.

Given the nature of the company, its size and current operations, management does not treat any part of the company as a separate operating segment. Internal financial information used by the company‟s decision makers is presented on a “whole of entity” manner without dissemination to any separately identifiable segments.

The Company‟s management operate the business as a whole without any special responsibilities for any separately identifiable segments of the business.

Accordingly the financial information reported elsewhere in this financial report is representative of the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.

17. Related Party Transactions

(a) Key management personnel

Refer to note 14 for disclosures relating to key management personnel.

(b) Transactions with related parties and key management personnel

During the year ended 30 June 2011 secretarial, consulting and associated services were provided by the company to the following related parties:

Iron Mountain Mining Ltd Aluminex Resources Ltd Eagle Nickel Ltd Actinogen Ltd Red River Resources Ltd Total	2011 $ (GST excl.) 2011 Owing $ (GST Incl.) 2010 $ (GST excl.) 2010 Owing $ (GST Incl.) 162,692 1,594 7,605 2,878 - - 12,128 - 10,145 332 13,159 3,840 1,229 - 1,571 386 2,607 399 2,171 716
	176,673 2,325 36,634 7,820

During the year ended 30 June 2011 secretarial, consulting and associated services were provided to the company from the following related parties:

Iron Mountain Mining Ltd Eagle Nickel Ltd Actinogen Ltd Red River Resources Ltd Total	2011 $ (GST excl.) 2011 Owing $ (GST Incl.) 2010 $ (GST excl.) 2010 Owing $ 85,883 34,234 49,979 17,958 30 - 42,211 1,408 824 330 - - 25 - - -
	86,762 34,564 92,190 19,366

During the year ended 30 June 2011, the company reimbursed Black Gold Resources Limited $15,000 (GST excl.) for geological services fees.

During the year ended 30 June 2011, the company received a loan in the amount of $50,000 from Swancove Enterprises Pty Ltd, a director related entity of David Zohar. This loan was repaid prior to 30 June 2011.

During the year ended 30 June 2011, the company sold a property located at Mackie Street, Victoria Park to Iron Mountain Mining Limited in consideration for 10,000,000 shares,

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

15,000,000 options in Iron Mountain Mining Limited and $85,000 cash. Iron Mountain Mining Limited is a director related entity of David Zohar.

During the year ended 30 June 2011, the company sold the following Mineral Tenements:

Florence Creek (EL25894)
Lucky U Project EL25329
Treasure Project (EL25346)

to Iron Mountain Mining Limited in consideration for 3,500,000 shares, 15,000,000 options in Iron Mountain Mining Limited and $46,750 cash. Iron Mountain Mining Limited is a director related entity of David Zohar.

At 30 June 2011, the company holds 23,732,341(2010: 10,232,341) ordinary shares in Iron Mountain Mining Ltd, a director related entity of David Zohar, at a fair value of $2,064,714 (2010: $521,849). The company also holds 30,000,000 attaching options at a fair value of $210,000.

As at 30 June 2011, the company holds 1,000,000 (2010: 1,000,000) ordinary shares in Black Gold Resources Ltd, a director related entity of David Zohar at a fair value of Nil (2010: Nil).

As at 30 June 2011, the company holds 500,000 (2010: 500,000) ordinary shares in Eagle Nickel Ltd, a director related entity of David Zohar, at a fair value of $11,000 (2010: $23,000). The company also holds 250,000 attaching options at a fair value of Nil (2010: Nil).

As at 30 June 2011, the Company holds 2,000,000 (2010: 2,000,000) ordinary shares in Actinogen Ltd, a Director related entity of David Zohar, at a fair value of $62,000 (2010: $40,000).

(c) Joint ventures

Refer to note 22 for related party joint venture disclosures.

18. Commitments

Tenement Commitments

The following expenditure is required to maintain the exploration tenements over which the Company has an interest in:

Tenement Name	Holders	Area Blocks	Grant Date	Expiry Date	Rent ($)	Minimum Expenditure ($)
E69/2825	United Orogen Ltd	49	06/07/2011	05/07/2016	5,562	49,000
E52/2016	United Orogen Ltd	31	19/02/2007	18/02/2012	7,425	46,500
E52/2569	United Orogen Ltd	2	18/06/2010	17/06/2015	227	15,000
E39/1528	United Orogen Ltd	25	29/07/2010	28/07/2015	2,838	25,000
E39/1594	United Orogen Ltd	25	3/05/2011	2/05/2016	2,838	25,000
E70/4073	United Orogen Ltd	15	N/A	N/A	N/A	N/A
E70/4140	United Orogen Ltd	32	N/A	N/A	N/A	N/A
E70/4173	United Orogen Ltd	69	N/A	N/A	N/A	N/A
E70/4174	United Orogen Ltd	60	N/A	N/A	N/A	N/A
EP448	Buru Energy Limited, Gulliver Productions Pty Ltd, Indigo Oil Pty Ltd and United Orogen Limited	16,867.70km2	16/06/2006	15/06/2013	16,800	N/A

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

19. Reconciliation of the operating (loss) after tax to the net cash flows from operating activities Cash Flow Information Operating loss after income tax Non cash items- Depreciation Profit on disposal of property, plant & equipment Non-cash sales Impairment of available for sale financial assets Employee share based payments Impairment of related party receivables Changes in assets and liabilities Increase (Decrease) in payables Increase (Decrease) in provisions Decrease (Increase) in receivables Net cash flow from/(used in) operating activities Reconciliation of Cash Cash balance comprises; Cash at bank	2011 $	2010 $





	(265,613)	(1,004,669)


	10,840	11,860
	(550,787)	-
	(691,500)	-
	689,500	256,147
	28,800	-
	-	-



	211,796	11,348
	(13,838)	20,985
	10,537	(10,722)

	(570,265)	(715,051)



	418,154	688,421

	418,154	688,421

Financing facilities available

As at 30 June 2011 the Company had no financing facilities available.

Non Cash financing and Investing Activities

There were no non-cash financing activities during the year ended 30 June 2011.

20. Share – Based Payments

The following share based payments existed at 30 June 2011:

Outstanding at the beginning of the year Granted Forfeited Exercised Expired Outstanding at year end Exercisable at year end	2011 2010 Number of options Weighted Average exercise price Number of Options Weighted average exercise price 20,750,000 30 cents 20,750,000 30 cents 2,000,000 20 cents - - - - - - - - - - 20,750,000 30 cents - -
	2,000,000 20 cents 20,750,000 30 cents
	2,000,000 20 cents 20,750,000 30 cents

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

2,000,000 options have been issued to company‟s managing director Noel Taylor, with an exercise price of 20 cents and expiring on 1 May 2016. Using the Black Scholes Model the fair value of an option is approximately 1.44 cents based on the following criteria:

Weighted average exercise price	20 cents
Weighted average life of the options	1,798 days
Underlying share prices	3 cents
Expected volatility	100.46
Risk free interest rate	5.03

21. Contingencies

The Directors are not aware of any contingent liabilities or assets as at 30 June 2011 (2010: Nil).

22. Joint Venture Operations

Bralich Holdings Joint Venture

Bralich Holdings Pty Ltd (Bralich) and the company have entered into a Joint Venture on 5 tenements in the Northern Territory whereby the company keeps the tenements in good standing for two years to earn 70% interest in those leases. Good standing means meeting minimum Mines Department commitments plus other ongoing commitments of the Northern Territory Government and Local Governments.

On 24 July 2007 the company issued Bralich one million options for the right to enter into the Joint Venture.

United Orogen Limited has reduced its interest in the 5 tenements down to an interest in 2, EL25329 Lucky U and EL25346 Treasure.

In addition, Bralich and the company have entered into a Joint Venture on another Prospect, EL25894 Florence Creek, but in this instance the company earns 50% interest in the tenement for keeping the lease in good standing.

The Joint Ventures commenced on 23 January 2007.

United Orogen Limited sold its interest in this Joint Venture to Iron Mountain Mining Limited on 3 June 2011.

Treasure Joint Venture

Iron Mountain Mining Limited holds 30% equity over Northern Territory exploration licence EL 25346, after its takeover of Aluminex Resources Limited in December 2009, with the remaining 70% equity held by the company.

The company entered a Heads of Agreement with Mithril Resources Ltd in September 2008. Under the terms of the agreement Mithril Resources Ltd can earn an interest of 60% after spending $1,000,000 after 3 years. Mithril Resources Ltd can earn a further 20% interest by spending a further $1,000,000, taking the total interest to 80%. The company‟s interest will be diluted down to 14% should Mithril complete its expenditure commitments in full.

In June 2010 United Orogen Limited announced that Iron Mountain Mining Limited intended to take over its interests in the Northern Territory Tenements EL25894 (Florence Creek), EL25346 (Treasure) and EL25329 (Lucky U). Diluting United Orogen‟s interest in the tenements to Nil. This is subject to and conditional upon shareholder approval of both United Orogen Limited and Iron Mountain Mining Limited.

United Orogen Limited sold its interest in this Joint Venture to Iron Mountain Mining Limited on 3 June 2011.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 0 J U N E 2 0 1 1

Empire Resources Joint Venture

The company entered a joint venture arrangement with Empire Resources Ltd. Under the terms of the agreement the company will be able to earn a 50% interest in uranium and diamonds and a 70% interest in iron ore across Empire Resources Ltd‟s tenements located within the Earaheedy Basin northeast of Wiluna.

Empire Resources Ltd will also be entitled to earn a 50% interest in uranium and diamonds and a 70% interest for all other minerals including copper, gold and PGM minerals across the company‟s tenements located within the Troy Creek and Miss Fairburn Hills areas.

To earn the interests in each other‟s tenements, the company and Empire Resources Ltd are required but not obligated to spend 50% of the minimum annual expenditure commitment for each individual tenement for a period of 3 years.

United Orogen Limited withdrew from this Joint Venture on 20 July 2010.

Canning Basin

EP448, in which United Orogen Limited has a 10% interest, is in a joint venture with Gulliver Productions Pty Ltd and Indigo Oil Pty Ltd. Gulliver Productions Pty Ltd is the operator of a major exploration program for oil and gas in the Canning Basin of which EP448 is part.

Earnings per share
	2011	2010
Basic and diluted loss per share (cents)	(0.40)	(1.55)
The options are not considered dilutive and therefore no diluted	earnings per share is disclosed.
Weighted average number of ordinary shares used as the	65,696,114	64,762,853
denominator
Net loss used in calculating EPS	(265,613)	(1,004,669)

24. Events occurring after the reporting period

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D D I R E C T O R S ’ D E C L A R A T I O N

In the Directors opinion:

The financial statements comprising the statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and notes set out on pages 24 to 50, are in accordance with the Corporations Act 2001 and:
a. Complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
b. giving a true and fair view of the company‟s financial position as at 30 June 2011 and of its performance for the financial year ended on that date
The company has included in the notes to the financial statements an explicit and unreserved statement of compliance with International Financial Reporting Standards.
There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
The remuneration disclosure included in the audited Remuneration Report in the Director‟s Report comply with Section 300A of the Corporations Act 2001 .
The directors have been given the declaration by the Managing Director, Noel Taylor, as required by section 295A of the Corporations Act 2001 .

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

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Zhukov Pervan Chairman

Perth, Western Australia 14 September 2011

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D A U D I T R E P O R T

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D A U D I T R E P O R T

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United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S H A R E H O L D E R I N F O R M A T I O N

ASX Information

Substantial shareholders

The substantial shareholders as at 9 September 2011 were:

Iron Mountain Mining Limited	20,526,361
Mr David Zohar	7,500,002
Ms Julie Zohar	7,500,002
Swancove Enterprises Pty Ltd	6,500,000
Mr John Karajas	5,525,000

Distribution of shareholders as at 9 September 2011

Range of Holding 1-1,000 1,001-5,000 5,001-10,000 10,001 - 100,000 100,001 - over	Holders Shares 17 4,857 91 372,653 571 5,526,601 956 27,275,497 56 63,979,671
	1,691 97,159,279

Shareholders with less than a marketable parcel

1,083

Distribution of Option Holders as at 9 September 2011

Range of Holding 1-1,000 1,001-5,000 5,001-10,000 10,001 - 100,000 100,000 - over	Holders Options 0 0 179 800,066 58 511,522 112 2,273,264 12 28,801,574
	361 32,386,426

Shareholders with less than a marketable parcel 355

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S H A R E H O L D E R I N F O R M A T I O N

Voting Rights

Each fully paid ordinary share carries voting rights of one vote per share.

Twenty Largest Shareholders as at 9 September 2011 – 59.70%

	Number of Shares	Percentage of capital held
Iron Mountain Mining Limited	20,526,361	21.13
Mr David Alan Zohar	7,500,002	7.72
Ms Julie Zohar	7,500,002	7.72
Swancove Enterprises Pty Ltd	6,500,000	6.69
Mr John Karajas	5,525,000	5.69
Eagle Nickel Ltd	1,904,250	1.96
Shellgrove Pty Ltd	1,000,000	1.03
J & F James Bro Holdings Pty Ltd	937,500	0.96
Mr Timothy Phillip Coleman & Ms Maria Marciniak	761,486	0.78
ACN 139 886 025 Pty Ltd	661,398	0.68
M & K Korkidas Pty Ltd	649,865	0.67
J & F James Brothers Holdings Pty Ltd	627,140	0.65
JP Morgan Nominees Australia Limited	567,569	0.58
Mr Cosimo Coniglio	550,000	0.57
Ms Janice M Roll	550,000	0.57
Tromso Pty Limited	550,000	0.57
Mr Ian Lawrence Turner	535,000	0.55
Mr Miro Lendich	500,000	0.51
Dr Zhukov Pervan	337,500	0.35
Mrs Janice Julie Hopetoun Waddell	322,500	0.33
TOTAL	58,005,573	59.70

Twenty Largest Option Holders as at 9 September 2011 – 90.50%

	Number of Options	Percentage of options issued
Iron Mountain Mining Limited	20,012,775	61.79
Mr David Alan Zohar	2,500,001	7.72
Ms Julie Zohar	2,500,001	7.72
Swancove Enterprises Pty Ltd	1,500,000	4.63
Eagle Nickel Ltd	634,750	1.96
Shellgrove Pty Ltd (RJM Superannuation Fund A/C>	500,000	1.54
J & F James Bro Holdings Pty Ltd	312,500	0.96
Mr Matthew Burford	300,000	0.93
J & F James Brothers Holdings Pty Ltd	209,047	0.65
Dr Zhukov Pervan	112,500	0.35
Dr Adrian Pierce Serone	112,500	0.35
Mrs Janice Julie Hopetoun Waddell	107,500	0.33
Mr Dang Quang Le & Mrs Rachaneeboon Le Family A/C>	100,000	0.31
JP Morgan Nominees Australia Limited	95,870	0.30
Mr David Alan Zohar	63,772	0.20
B Harries Pty Ltd	50,000	0.15
Mr Serge Dann & Mrs Rhonda Dann A/C>	50,000	0.15
Mr Francis Reginald English	50,000	0.15
Sunstrong Pty Ltd	50,000	0.15
Mr John Ellard Tuckey	50,000	0.15
TOTAL	29,311,216	90.50

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D S H A R E H O L D E R I N F O R M A T I O N

Unquoted securities

As at 9 September 2011, the company has on issue 2,000,000 unquoted options. These options were issued to the company‟s managing director, Noel Taylor.

Shares and Options escrowed

There are no shares and options escrowed as at the 9 September 2011.

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

U N I T E D O R O G E N L I M I T E D I N T E R E S T I N M I N I N G T E N E M E N T S

The company has an interest in the following tenements as at 9 September 2011:

Tenement Name	Holders	Area Blocks	Beneficial Interest	Grant Date	Expiry Date
E69/2825	United Orogen Limited	49 Blocks	100%	06/07/2011	05/07/2016
E52/2016	United Orogen Limited	31 Blocks	100%	19/02/2007	18/02/2012
E52/2569	United Orogen Limited	2 Blocks	100%	18/06/2010	17/06/2015
E39/1528	United Orogen Limited	25 Blocks	100%	29/07/2010	28/07/2015
E39/1594	United Orogen Limited	25 Blocks	100%	03/05/2011	02/05/2016
E70/4073	United Orogen Limited	15 Blocks	100%	N/A	N/A
E70/4140	United Orogen Limited	32 Blocks	0%	N/A	N/A
E70/4173	United Orogen Limited	69 Blocks	100%	N/A	N/A
E70/4174	United Orogen Limited	60 Blocks	100%	N/A	N/A
EP448	Buru Engergy Limited, Gulliver Productions Pty Ltd, Indigo Oil Pty Ltd and United Orogen Limited	16,867.70 km2	10%	16/06/2006	15/06/2013

United Orogen Limited Financial Report 2011 ABN: 45 115 593 005

AI assistant

PATERSON RESOURCES LTD — Annual Report 2011

65618_rns_2011-09-13_2dc034bc-8480-4894-80d7-60891ad1e1a7.pdf

UNITED OROGEN LIMITED ABN 45 115 593 005

ANNUAL REPORT

C O R P O R A T E D I R E C T O R Y

Directors

Auditors

Solicitors

Company Secretary

Registered Office

Share Registry

Head Office

Website address

Country of Incorporation

Stock Exchange Listing

C O N T E N T S

CORPORATE GOVERNANCE REPORT UNITED OROGEN LIMITED (“THE COMPANY”)

Introduction

Board Composition

Trading Policy

Remuneration Policy

Corporate Reporting

Code of Conduct

Continuous disclosure and shareholder communication

Explanations for Departures from Best Practice Recommendations

Explanation for Departure:

Principle 2 Recommendation 2.1 Notification of Departure:

Explanation for Departure:

Explanation for Departure:

Principle 2 Recommendation 2.5 Notification of Departure:

DIRECTORS

DAVID ALAN ZOHAR BSc DipEd Executive Director

JOHN KARAJAS BSc (Hons) MAIG MPESA Non Executive Director

ZHUKOV (Zeke) PERVAN MB, BS(WA), FRACGP, FAICD Non-Executive Director and Chairman

WILLIAM EDWIN BANNISTER (resigned 17 December 2010) Msc AWASM Managing Director

NOEL TAYLOR (appointed 30 November 2010) Managing Director

Company Secretaries

Mark Killmier (appointed 20 July 2009) (resigned 13 May 2011) MBA (UWA), GAICD, FCPA, GDCorpGovASXLE, GradDipAppFin, B.Ec.(Adel)

Jacy Leu (appointed 13 May 2011)

BSc DipAcc

Principal Activities

Operating Results

Dividends

Review of Operations

Exploration Highlights

Corporate Affairs

Exploration Activities

Horseshoe Project (100%)

Victoria Desert Project (100%)

Gunnedo Project (100%)

Redmond Project (100%)

Tambellup Project (100%)

Joint Ventures

Canning Basin

Exploration Tenements Relinquished, Withdrawn and Divested

Western Australia

Wanarary (E69/2475) and Hann Well (E69/2476)

Victoria Desert North (Lower) (E39/1620) Application Withdrawn

Northern Territory

Sale of Northern Territory Tenements to Iron Mountain Mining Limited (Treasure (EL25346) Florence Creek (EL25894) and Lucky U (EL25329))

Significant Changes in State of Affairs

Matters subsequent to the end of the financial year

Likely developments and expected results of operations

Environmental Regulation

REMUNERATION REPORT (AUDITED)

Principles used to determine the nature and amount of remuneration

Executive Remuneration

Non- Executive Remuneration

Performance based remuneration

Details of remuneration

Directors:

Executives:

Key Management Personnel Remuneration:

Additional Information

Service Agreements and remuneration commitments (audited)

Securitisation Policy

End of Audited Remuneration Report

Directors’ Meetings

Shares Under Option

PATERSON RESOURCES LTD Annual Report 2011