PRL GLOBAL LTD — Interim / Quarterly Report 2016

Feb 25, 2016

APPENDIX 4D – HALF YEAR REPORT

PERIOD ENDED 31 DECEMBER 2015

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Reporting Period

This information should be read in conjunction with the 30 June 2015 annual financial report.

Current reporting period: 31 December 2015 Previous corresponding period: 31 December 2014

Results for announcement to the market

	31 Dec 2015 $’000’s	31 Dec 2014 $’000’s	% Change
Revenue from continuing operations	106,378	88,158	20.7%
Net profit for the period	22,449	17,159	30.8%
Profit from ordinary activities after tax attributable to members	22,449	10,647	110.8%
Total comprehensive income for the period attributable to members	17,908	12,559	42.6%

Earnings Per Share

	31 Dec 2015	31 Dec 2014
Basic and Diluted	19.42 cents	14.85 cents

Dividends

Dividends totaling 5 cents per share have been paid during the half year ended 31 December 2015. The Directors recommend the payment of an interim dividend of 4 cents per share.

Date the interim dividend is payable 4 April 2016 Record date to determine entitlements to the dividend 15 March 2016 Date interim dividend was declared 26 February 2016

APPENDIX 4D – HALF YEAR REPORT (Continued)

PERIOD ENDED 31 DECEMBER 2015

CI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN 006 788 754

Net Tangible Asset Backing Per Security

	31 Dec 2015	31 Dec 2014
Fully paid ordinary shares on issue at balance date	115,581,107	115,581,107
Net tangible asset backing per issued ordinary share as at balance date	138.31cents	121.23 cents

Additional Appendix 4D disclosure requirements can be found in the directors’ report and the 31 December 2015 half year report and accompanying notes.

Significant changes in the state of affairs of the Company

No significant changes took place during the period in the state of affairs of the consolidated entity.

Compliance Statement

The report is based on financial statements reviewed by the auditor, a copy of which is attached.

For and on behalf of the directors:

David Somerville Director

Dated: 25 February 2016

CI Resources Limited

ACN 006 788 754

Half Year Report For the half-year ended 31 December 2015

Half-year Financial Statements – 31 December 2015

CI Resources Limited ACN 006 788 754

Contents	Page
Directors' report	3
Auditor’s independence declaration	5
Financial report	6
Directors' declaration	19
Independent review report to the members	20

2

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Directors’ report

Your directors present their half year report on the consolidated entity (“Group”) consisting of CI Resources Limited (“CII” or “Company”) and the entities it controlled at the end of, or during, the half-year ended 31 December 2015.

Directors

The following persons were directors of CI Resources Limited for the whole of the half-year and up to the date of this report, unless otherwise stated:

Mr David Somerville Mr Lai Ah Hong Mr Tee Lip Sin Mr Tee Lip Jen Mr Adrian Gurgone Dato’ Sri Kamaruddin bin Mohammed Mr Clive Brown

Dividends

Dividends totaling 5 cents per share have been paid during the half year ended 31 December 2015. The Directors propose paying a fully franked interim dividend of 4 cents per share issued with the record date being set at 15 March 2016 with payment to be made on the 4 April 2016

Review of operations

The Consolidated Entity is reporting a net profit for the period of $22.449M for the half-year ended 31 December 2015 (31 December 2014: $17.159M).

Sales volumes from the Christmas Island operations were similar to the same period in the prior year. However, a further 60,000 tonnes of sales was generated by our Malaysian and Singapore subsidiaries from external trading activities. These activities had not yet commenced in the first half of the prior year. This resulted in the achievement of approximately 440,000 tonnes of sales for the half year.

Sales revenue was further enhanced by the commencement in the current half year of the Commonwealth government contract for the exclusive supply of Diesel fuel to the Christmas Island Power Station and for the provision of diesel fuel for other Commonwealth entities operating out of Christmas Island.

Financial Position

At the end of the financial period the consolidated entity had net cash balances of $51.945M (30 June 2015: $53,967M) and net assets of $167.013M (30 June 2015: $154,884M).

Total liabilities amounted to $53.275M (30 June 2015: $51,474M), being trade and other creditors, provisions, borrowings and taxation liabilities.

Earnings per share Basic earnings per share	December 2015 Cents December 2014 Cents
	19.42 14.85

3

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Directors’ report

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

Rounding

The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the Company under the ASIC Class Order 98/0100 . The Company is an entity to which the Class Order applies.

Auditor

Ernst & Young continues in office in accordance with section 327 of the Corporations Act 2001 .

This report is made in accordance with a resolution of the directors.

D Somerville Chairman Perth, Western Australia

25 February 2016

4

Half-year Financial Statements – 31 December 2015

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

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

Auditor’s independence declaration to the directors of CI Resources Limited

As lead auditor for the review of CI Resources Ltd for the half-year ended 31 December 2015, I declare to the best of my knowledge and belief, there have been:

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

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

This declaration is in respect of CI Resources Ltd and the entities it controlled during the financial period.

Ernst & Young

R Curtin Partner 25 February 2016 Perth

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

RC:KW:CIR:

CI RESOURCES LIMITED

Consolidated Statement of Comprehensive Income For the half-year ended 31 December 2015

Notes	Consolidated 31 December 2015 $’000s 31 December 2014 $’000s
Revenue from continuing operations 3a Cost of sales 3b Gross Profit Other income 3c Finance costs Other expenses 3d Profit before income tax Income tax expense Net profit for the period Other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Total comprehensive income for the period Net profit for the period is attributable to: Non-controlling interest Owners of the parent Total comprehensive income for the period is attributable to: Non-controlling interest Owners of the parent Basic and diluted earnings/(loss) per share	106,378 88,158 (65,329) (60,036)
	41,049 28,122 924 4,760 (299) (402) (8,771) (7,905)
	32,903 24,575 (10,454) (7,416)
	22,449 17,159
	(4,541) 3,081
	17,908 20,240
	- 22,449 6,512 10,647
	22,449 17,159
	- 17,908 7,681 12,559
	17,908 20,240
	Cents 19.42 Cents 14.85

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

6

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Consolidated Statement of Financial Position As at 31 December 2015

Notes	Consolidated 31 December 2015 $’000s 30 June 2015 $’000s	Consolidated 31 December 2015 $’000s 30 June 2015 $’000s
Current assets Cash and cash equivalents 4 Term deposits Trade and other receivables Inventories Prepayments Income tax receivable Total current assets Non-current assets Other financial assets Property, plant & equipment Goodwill Biological assets 7 Deferred tax assets Total non-current assets Total assets Current liabilities Trade and other payables Financial liabilities Borrowings Income tax payable Provisions Total current liabilities Non-current liabilities Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits Total equity	51,945 10,033 37,118 18,403 1,723 580	53,967 8,646 30,171 12,918 2,653 455
	119,802	108,810
	10,243 66,224 7,158 8,614 8,247	10,080 62,611 7,158 9,296 8,403
	100,486	97,548
	220,288	206,358
	9,020 51 382 6,053 7,206	10,908 515 16 2,055 7,796
	22,712	21,290
	10,086 20,477	10,143 20,041
	30,563	30,184
	53,275	51,474
	167,013	154,884
	72,160 6,860 87,993	72,160 11,401 71,323
	167,013	154,884

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

7

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2015

2015 Consolidated	Contributed Equity $’000s Foreign currency translation Reserve $’000s Discount on acquisition of Non- controlling interest Reserve $’000s Retained earnings $’000s Total $’000s
1 July 2015 Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid 31 December 2015	72,160 2,902 8,499 71,323 154,884
	- - - 22,449 22,449 - (4,541) - - (4,541)
	- (4,541) - 22,449 17,908
	- - - (5,779) (5,779)
	72,160 (1,639) 8,499 87,993 167,013

8

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Consolidated Statements of Changes in Equity For the half-year ended 31 December 2015

2014 Consolidated	Contributed Equity $’000s Foreign currency translation Reserve $’000s Discount on acquisition of Non- controlling interest Reserve $’000s Retained earnings $’000s Owners of the Parent $’000s Non-controlling Interest $’000s Total $’000s
1 July 2014 Profit for the period Other comprehensive income Total comprehensive income for the period Transactions with owners in their capacity as owners Dividends paid Acquisition of Non-controlling interest in PRL 31 December 2014	17,970 1,593 8,499 51,894 79,956 47,076 127,032
	- - - 10,647 10,647 6,512 17,159 - 1,912 - - 1,912 1,169 3,081
	- 1,912 - 10,647 12,559 7,681 20,240
	- 54,757 - - - - - - - 54,757 - (54,757) - -
	72,727 3,505 8,499 62,541 147,272 - 147,272

9

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Consolidated Statement of Cash Flows For the half-year ended 31 December 2015

Notes	Consolidated 31 December 2015 $’000s 31 December 2014 $’000s
Cash flows from operating activities Receipts from customers Payments to suppliers and employees (inclusive of goods and services tax) Interest received Interest paid Income taxes paid Net cash inflow from operating activities Cash flows from investing activities (Increase)/ decrease in term deposits Proceeds from sale of property, plant and equipment Purchase of property and equipment Net cash (outflow)/ inflow from investing activities Cash flows from financing activities Proceeds from interest bearing loans and borrowings Dividends paid Net cash (outflow) / inflow from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Impact of foreign exchange Cash and cash equivalents at the end of the period 4	98,944 (83,047) 76,799 (65,230) 487 354 - (102) (6,367) (4,355)
	10,017 7,466
	(1,550) 807 19 14 (6,166) (7,741)
	(7,698) (6,920)
	366 305 (5,779) -
	(5,413) 305
	(3,094) 851 53,967 45,783 1,072 3,404
	51,945 50,038

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

10

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

1 Corporate Information

The interim condensed consolidated financial statements of CI Resources Limited and its subsidiaries (‘Group’) for the six months ended 31 December 2015 were authorised for issue in accordance with a resolution of the directors on 25 February 2016.

CI Resources Limited is a for profit company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.

2 Basis of Preparation and Accounting Policies

Basis of preparation

This interim condensed consolidated financial statements for the half-year ended 31 December 2015 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The half-year financial report does not include all notes of the type normally included within the Annual Financial Report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of CI Resources Limited as at 30 June 2015.

Apart from the adoption of new or revised standards noted below, the accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Changes in accounting policy

The accounting policies adopted in the preparation of the half-year report are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 June 2015, except for the adoption of new standards and interpretation noted below:

• AASB 2015 – 3: Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality

The adoption of the above amendments has had and no material impact on the financial position or performance of the Group.

The Group has not elected to early adopt any new standards or amendments that are not mandatorily effective.

11

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

Notes to the financial statements For the half-year ended 31 December 2015
3 Revenue and Expenses (a) Revenue Phosphate sales Palm oil sales Finance revenue – interest Rendering of services Other sales (b) Cost of sales Cost of production: Production and purchase costs Royalties Environment levy Insurance Shipping costs: Shipping charges Port charges Handling and warehousing costs: Depreciation: Plant and equipment Total cost of sales (c) Other income Foreign exchange gain Other	Consolidated 31 December 2015 $’000s 31 December 2014 $’000s 73,227 59,589 21,210 21,457 487 354 4,157 5,603 7,297 1,155
	106,378 88,158
	47,283 44,394 1,273 1,007 1,145 906 826 1,060
	50,527 47,367
	10,979 9,099 1,440 1,012
	12,419 10,111
	57 370 2,326 2,188
	65,329 60,036
	887 4,754 37 6
	924 4,760

12

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

3 Revenue and Expenses (continued) (d) Other expenses Redundancy expense Depreciation Administration and other 4 Reconciliation of Cash and Cash Equivalents Cash at bank 5 Dividends Paid and Proposed Franked dividends declared and paid during the half-year on ordinary shares to the owners of the parent: $0.05 (June 2015: $0.025) Dividends proposed and not yet recognised as a liability	Consolidated 31 December 2015 $’000s 31 December 2014 $’000s 332 76 28 11 8,411 7,818
	8,771 7,905
	31 December 30 June 2015 2015 $’000s $’000s 51,945 53,967
	(5,779) (2,890) (4,623) -
	(10,402) (2,890)

6 Commitments and Contingencies

As at balance sheet date the consolidated entity had no expenditure commitments.

Since the last annual reporting date, there has been no material change to any contingent liabilities or contingent assets.

13

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

Notes to the financial statements For the half-year ended 31 December 2015
7 Biological Assets Carrying amount at beginning of period Effect of foreign exchange Fair value adjustment Carrying amount at end of period	Consolidated 31 December 2015 $’000s 30 June 2015 $’000s 9,296 10,581 (682) 449 - (1,734)
	8,614 9,296

Biological assets consist of mature oil palm trees.

The Group grows oil palm trees to produce palm oil. The plantation is located in Malaysia.

A valuation was conducted by Jones Lang Wootton, an independent professional valuer, on a subsidiary's oil palm estate development comprising land, ancillary facilities and biological assets, for the purposes of revaluing the biological assets of the subsidiary as at 30 June 2015.

At 31 December 2015, there has been no material change in the fair value of biological assets compared to 30 June 2015.

The Group is exposed to risks in respect of agricultural activity. The agricultural activity of the Group consists of the plantation development and cultivation of palm products.

The primary risk associated with this activity occurs due to the length of time between expending cash on planting and trees reaching production so that cash can be received from the sale of palm oil to third parties. The Group's strategy to manage this risk is to stage the replanting (20-30 year replanting cycle) to reduce the effect on the cash flow.

8 Events after the Balance Sheet Date

No matter or circumstance has arisen since 31 December 2015 that has significantly affected, or may significantly affect, the operations of CI Resources Limited and its controlled entities, or the state of affairs of CI Resources Limited and its controlled entities in subsequent periods.

9 Financial Instruments

The Directors have concluded that the fair value of those assets and liabilities are not materially different to book values. The methods and assumptions used to estimate the fair value of financial instruments were:

• Cash - The carrying amount is fair value due to the liquid nature of these assets.

• Term Deposits – The carrying value is the fair value of these assets.

• Receivables/payables - due to the short term nature of these financial rights and obligations, and/or market interest received/paid, their carrying values are estimated to represent their fair values.

• Derivatives - The fair values of forward currency contracts are calculated by reference to current forward exchange rates for contracts with similar maturity profiles.

• Finance lease liability – The fair value is the present value of minimum lease payments, which is also the approximate carrying value.

• Bank loan – All the bank loans of the Group are interest bearing with floating interest rates which move in accordance with the market interest rates. Therefore the fair value of the bank loans approximates their carrying value.

14

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

9 Financial Instruments (continued)

Forward currency contracts – held for trading

The Group has entered into forward exchange contracts which are economic hedges but do not satisfy the requirements for hedge accounting.

	Notional amounts	Notional amounts	Average	exchange rate
	$AUD
	31 Dec	30 June	31 Dec	30 June 2015
	2015	2015	2015
	$’000s	$’000s
Sell US$/buy Australian $
Consolidated
Sell US$ maturity 0 to 12 months	4,762	19,121	0.7350	0.7845
Sell US$ maturity 12 to 24 months	-	-	-	-

These contracts are fair valued by comparing the contracted rate to the market rates for contracts with the same length of maturity. All movements in fair value are recognised in profit or loss in the period they occur. The net fair value losses on foreign currency derivatives during the half-year were $1.024 million for the Group.

The group uses various methods in estimating the fair value of a financial instrument. The methods comprise:

Level 1: the fair value is calculated using quoted price in active markets;

Level 2: the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (as price) or indirectly (derived from prices); and Level 3 : the fair value is estimated using inputs for the assets or liability that are not based on observable market data.

Forward currency contracts – held for trading	Level 1 ‘000 Level 2 ‘000 Level 3 ‘000 Total ‘000 - (51) - (51)
	- (51) - (51)

Transfer between categories:

There were no transfers between levels during the half-year.

15

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

10 Segment Reporting

Segment Reporting for the half-year ended 31 December 2015

The Group has identified its operating segments based on the internal reports that are reviewed and used by the executive management team (the chief operation decision makers) in assessing performance and in determining the allocation of resource.

The Group has identified its operating segments to be Mining and Farming based on the different operating businesses within the Group. Discrete financial information about each of these operating segments is reported to the chief operation decision makers on a monthly basis.

Mining operating segment primarily involves mining, processing and sale of phosphate rock, phosphate dust and chalk

Farming operating segment primarily involves oil palm cultivation and palm oil processing

Accounting policies and inter-segment transactions

The accounting policy used by the Group in reporting segments internally are the same as those contained in Note 2 to the 30 June 2015 accounts.

Revenue Revenue from external customers Interest income Rendering of services Other sales Total segment revenue Result Segment net operating profit after tax (attributable to parent) Depreciation and amortisation Income tax expense Assets and Liabilities Segment assets Segment liabilities	Half-Year ended 31 December 2015
	Mining Farming Unallocated/ Elimination Total $’000s $’000s $’000s $’000s
	73,227 21,210 - 94,437 266 100 121 487 - - 4,157 4,157 - - 7,297 **7,297 **
	73,493 21,310 11,575 106,378 20,347 1,056 1,046 22,449
	1,363 664 327 2,354 9,438 352 664 10,454 As at 31 December 2015 151,676 53,550 15,062 220,288
	45,023 5,338 2,914 53,275

16

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

10 Segment reporting (continued)

Revenue Revenue from external customers Interest income Rendering of services Other sales Total segment revenue Result Segment net operating profit after tax (attributable to parent) Depreciation and amortisation Income tax expense Assets and Liabilities Segment assets Segment liabilities	Half-Year ended 31 December 2014
	Mining Farming Unallocated/ Elimination Total $’000s $’000s $’000s $’000s
	59,589 21,457 - 81,046 238 26 90 354 - - 5,603 5,603 - - 1,155 424
	59,827 21,483 6,848 88,158 16,045 1,033 81 17,159
	1,335 679 185 2,199 6,530 345 541 7,416 As at 30 June 2015 117,515 63,539 21,948 203,002
	41,393 13,686 651 55,730

Revenue from external customers by geographical locations is detailed below. Revenue is attributed to geographic location based on the location of the customers. The Company does not have external revenues from external customers that are attributable to any foreign country other than as shown:

Australasia Malaysia Indonesia	1 July 2015 to 31 December 2015 1 July 2014 to 31 December 2014 $’000s $’000s 15,689 9,690 73,627 59,067 16,575 19,047
	105,891 87,804

Major customers

The Group has a number of customers to which it provides the products. There are 2 customers of the Group who each account for more than 10% of total external revenue in 2015 and 2014.

17

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Notes to the financial statements For the half-year ended 31 December 2015

10 Segment reporting (continued)

Non-Current Assets by geographical regions: Australia Malaysia Singapore	Consolidated 31 December 2015 $’000s 30 June 2015 $’000s 52,607 49,085 46,616 46,576 1,263 1,887
	100,486 97,548

18

Half-year Financial Statements – 31 December 2015

CI RESOURCES LIMITED

Directors’ declaration For the half-year ended 31 December 2015

In the directors’ opinion:

• (a) The financial statements comprising the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in Equity and accompanying notes are in accordance with the Corporations Act

• 2001, including:

• (i) complying with Accounting Standard AASB 134: Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the company and the consolidated entity’s financial position as at 31 December 2015 and of their performance, for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

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

D Somerville

Chairman

Perth 25 February 2016

19

Half-year Financial Statements – 31 December 2015

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

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

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Report on the Half-Year Financial Report to the members of CI Resources Limited

We have reviewed the accompanying half-year financial report of CI Resources Limited, which comprises the statement of financial position as at 31 December 2015, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at half-year end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the halfyear ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of CI Resources Ltd and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

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

RC:KW:CIR:054

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Conclusion

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

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Ernst & Young

R J Curtin Partner Perth 25 February 2016

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

RC:KW:CIR:054