PRODIGY GOLD NL — Interim / Quarterly Report 2014

Feb 18, 2014

ABM RESOURCES NL AND CONTROLLED ENTITIES

ABN 58 009 127 020

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

Corporate Directory

==> picture [163 x 89] intentionally omitted <==

ABN 58 009 127 020 ACN 009 127 020

Directors Dr Michael Etheridge (Chairman) Mr Darren Holden (Managing Director) Mr Imants Kins Mr Graeme Sloan Mr Andrew Ferguson Secretary Ms Jutta Zimmermann Auditors BDO Audit (WA) Pty Ltd 38 Station Street SUBIACO WA 6008 Bankers ANZ Banking Group Limited Level 10, 77 St Georges Terrace PERTH WA 6000 Share Registry Security Transfer Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153 Telephone: +61 8 9315 2333 Solicitors Steinepreis Paganin Level 4, Next Building 16 Milligan Street PERTH WA 6000 Piper Alderman Level 16, 70 Franklin Street ADELAIDE SA 5000 Stock Exchange Australian Securities Exchange Limited ASX Code: ABU Registered Office Level 1, 141 Broadway NEDLANDS WA 6009 Principal Office Level 1, 141 Broadway NEDLANDS WA 6009 Telephone: +61 8 9423 9777 Fax: + 61 8 9423 9733 Website: www.abmresources.com.au Email: admin@abmresources.com.au Postal Address Level 1, 141 Broadway NEDLANDS WA 6009

Contents

	Page
Directors’ Report	3
Auditor’s Independence Declaration	5
Interim Financial Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Cash Flows	8
Consolidated Statement of Changes in Equity	9
Notes to the Consolidated Financial Statements	10
Directors’ Declaration	16
Independent Auditor’s Report to the Members	17

DIRECTORS’ REPORT

The Directors of ABM Resources NL present their report on the consolidated entity (Group), consisting of ABM Resources NL and the entities it controlled at the end of, and during, the half-year ended 31 December 2013.

Directors

Dr Michael Etheridge	Non-Executive Chairman
Mr Darren Holden	Managing Director
Mr Imants Kins	Non-Executive Director
Mr Graeme Sloan	Non-Executive Director
Mr Andrew Ferguson	Non-Executive Director

The Directors have been appointed for the whole period unless otherwise disclosed.

Operating Results

The consolidated loss of the Group for the half-year ended 31 December 2013 after providing for income tax amounted to $1,286,661 (2012: loss of $9,146,656).

Review of Operations

Achievements accomplished since the start of the 2013/2014 financial year:

• ABM installed and commissioned a pilot plant at the Old Pirate project.

• Trial mining of 9,844 tonnes of material was completed under an exploration licence.

• Target of 3,000 ounces of gold from Trial Mining achieved in December with mill cleanout pending as at 31 December 2013.

• ABM signed a mining agreement with the Central Land Council on behalf of the Traditional Owners for the Old Pirate Mineral Lease application area.

• Lodgement of an Environmental Impact Statement with the NT EPA for the Mineral Lease application area.

• Secured a funding facility with ANZ for Stage Two Mining.

• The Company entered into a multi-phase exploration agreement with Independence Group NL (IGO) for the Lake Mackay Regional Project. IGO commenced exploration immediately.

• ABM entered into an agreement with Clancy Exploration Limited whereby Clancy has the option to acquire 100% interest in the North Arunta Regional Projects.

• Cash in bank at 31 December 2013 $5 million and no debt, non-cash-backed performance bond facility in place.

Events Subsequent to the Reporting Date

Clancy has advised ABM of the exercise of their option, for an exercise fee of $150,000, under an agreement with ABM, whereby Clancy will acquire 100% of ABM’s interests in the North Arunta regional projects. The completion of the agreement remains subject to various conditions including regulatory and shareholder approval.

10 Million unlisted options have been exercised at an option exercise price of $0.01 per share.

Mr Imants Kins resigned from his position as Non-Executive Director of ABM effective 18 February 2014.

Page | 3

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.

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

==> picture [125 x 52] intentionally omitted <==

MIKE ETHERIDGE Non-Executive Chairman

==> picture [112 x 52] intentionally omitted <==

DARREN HOLDEN Managing Director

Dated this 19[th] day of February 2014 Perth, Western Australia

Page | 4

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

==> picture [78 x 31] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY BRAD MCVEIGH TO ABM RESOURCES NL

As lead auditor for the review of ABM Resources NL for the half-year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been:

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

• No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of ABM Resources NL and the entities it controlled during the period.

==> picture [69 x 46] intentionally omitted <==

Brad McVeigh

Director

BDO Audit (WA) Pty Ltd

Perth, 19 February 2014

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms.

Page | 5

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

	Consolidated
	31 December 2013 $ 31 December 2012 $
Revenue 3 Other income Employee and Directors benefits expenses Lease expenses Depreciation expenses Write-down of property, plant and equipment Consultancy expenses Exploration and trial mining expenses Legal fees Other expenses Loss before income tax expense Income tax (expense)/benefit Loss for the half-year Loss attributable to members of ABM Resources NL Other comprehensive income Items that will be classified to profit or loss Net change in fair value of available-for-sale financial assets Total other comprehensive income for the half-year Total comprehensive income for the half-year Total comprehensive income for the half-year attributable to members of ABM Resources NL Basic loss per share attributable to the ordinary equity holders of the Company Basic loss per share (cents per share) Diluted earnings per share	4,313,040 473,482 166,281 358,877 (1,671,549) (2,196,862) (34,636) (34,951) (352,399) (429,609) - (30,796) (50,837) (77,795) (3,335,824) (6,744,164) (59,390) (21,483) (261,347) (443,355)
	(1,286,661) (9,146,656) - -
	(1,286,661) (9,146,656)
	(1,286,661) (9,146,656)
	- (13,750)
	- (13,750)
	(1,286,661) (9,160,406)
	(1,286,661) (9,160,406)
	(0.04) (0.28) n/a n/a

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Page | 6

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013

	Consolidated
	31 December 2013 $ 30 June 2013 $
Notes
ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories 5 Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables Other financial assets Property, plant and equipment 4 Exploration, evaluation and development expenditure 8 TOTAL NON CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other liabilities Provisions Other current liabilities 10 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 6 Reserves Accumulated losses TOTAL EQUITY	5,094,194 8,344,284 70,897 135,905 1,319,674 122,466 378,087 173,952
	6,862,852 8,776,607
	536,086 1,830,899 - 40,000 5,446,425 3,292,593 17,617,075 17,617,075
	23,599,586 22,780,567
	30,462,438 31,557,174
	2,378,408 2,410,023 58,796 44,118 250,000 -
	2,687,204 2,454,141
	1,437,234 1,511,252
	1,437,234 1,511,252
	4,124,438 3,965,393
	26,338,000 27,591,781
	131,448,413 131,415,533 8,505,206 8,555,017 (113,615,619) (112,378,769)
	26,338,000 27,591,781

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

Page | 7

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

	Consolidated
	31 December 2013 $ 31 December 2012 $
CASH FLOWS FROM OPERATING ACTIVITIES Receipt from bullion sales Payments to suppliers and employees Interest received Payments for security deposit Payments for exploration and trial mining Net cash outflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Proceeds from/(payments for) bond deposit Proceeds from sale of other financial assets Proceeds from sale of exploration interest Net cash outflow from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Share issue costs Net cash inflow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of reporting period Cash and cash equivalents at end of reporting period	4,229,351 - (883,184) (505,409) 126,460 817,945 - (1,840) (5,488,671) (9,640,078)
	(2,016,044) (9,329,382)
	(2,824,609) (440,103) 1,294,813 (82,950) 45,750 - 250,000 300,000
	(1,234,046) (223,053)
	- 626,250 - (3,516)
	- 622,734
	(3,250,090) (8,929,701) 8,344,284 23,035,004
	5,094,194 14,105,303

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

Page | 8

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

	Contributed Equity $ Available- for-Sale Financial Asset Reserve $ Share-based Payment Reserve $ Employee Options Reserve $ Retained Earnings $ Total $
Notes
Balance at 1 July 2012 Comprehensive income for the half-year Loss for the half-year Other comprehensive income Movement in available-for-sale financial assets Total comprehensive income for the half-year Transaction with owners in their capacity as owners: Shares issued 6 Transaction costs 6 Transfer of reserve on expired options Movement in employee options reserve 7 Total transactions with owners Balance at 31 December 2012 Balance at 1 July 2013 Comprehensive income for the half-year Loss for the half-year Other comprehensive income Movement in available-for-sale financial assets Total comprehensive income for the half-year Transaction with owners in their capacity as owners: Recognition of treasury shares 6 Transfer of reserve on sale of available-for-sale financial assets Transfer of reserve on vested shares issued to employee Total transactions with owners Balance at 31 December 2013	130,637,999 43,750 8,085,701 941,381 (97,917,203) 41,791,628 - - - - (9,146,656) (9,146,656) - (13,750) - - - (13,750)
	- (13,750) - - (9,146,656) (9,160,406)
	626,250 - - - - 626,250 (3,516) - - - - (3,516) - - (498,323) - 498,323 - - - - 63,894 - 63,894
	622,734 - (498,323) 63,894 498,323 686,628
	131,260,733 30,000 7,587,378 1,005,275 (106,565,536) 33,317,850
	131,415,533 30,000 7,587,378 937,639 (112,378,769) 27,591,781 - - - - (1,286,661) (1,286,661) - - - - - -
	- - - - (1,286,661) (1,286,661)
	32,880 - - - - 32,880 - (30,000) - - 30,000 - - - - (19,811) 19,811 -
	32,880 (30,000) - (19,811) 49,811 32,880
	131,448,413 - 7,587,378 917,828 (113,615,619) 26,338,000

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Page | 9

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

This general purpose interim financial report for the half-year reporting period ended 31 December 2013 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2013 and any public announcements made by ABM Resources NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period except for: AASB 10 Consolidated Financial Statements – There is no impact on transactions and balances recognised in the financial statements as the Group does not have any special purpose entity; AASB 11 Joint Arrangement – There is no impact on the transactions and balance recognised in the financial statements as the Group has not entered into any joint arrangements; AASB 12 Disclosure of Interest in Other Entities – There is no impact on amounts recognised in the financial statements; AASB 13 Fair Value Measurement – The additional disclosures were included for items measured at fair value in the statement of financial position, as well as items merely disclosed at fair value in the notes to the financial statements.

(b) Estimates

The preparation of the half-year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these consolidated half-year financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty are the same as those that applied to the consolidated financial statements as at and for the year ended 30 June 2013.

NOTE 2: SEGMENT INFORMATION

The full Board of Directors, who are the chief operating decision makers, has identified two reportable segments from a geographical prospective with the mineral exploration segments being, the Northern Territory and Other segments.

Management assesses the performance of the operating segments based on a measure of exploration and evaluation expenditure for each geographical area. The measure excludes items such as the effects of share based payments expenses, interest income and corporate expenses as these activities are centralised.

	Northern Territory $ Other $ Total $
Half-year ended 31 December 2013 Segment revenue Segment other income Segment loss Total segment loss Inter-segment loss Net segment loss Total segment assets 31 December 2013	4,229,351 - 4,229,351
	160,531 - 160,531
	(602,020) (8,417) (610,437) - - -
	(602,020) (8,417) (610,437)
	24,738,302 81,000 24,819,302

Page | 10

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 2: SEGMENT INFORMATION cont’d

	Northern Territory $ Other $ Total $
Half-year ended 31 December 2012 Segment revenue Segment other income Segment loss Total segment loss Inter-segment loss Net segment loss Total segment assets 30 June 2013	- - -
	58,877 300,000 358,877
	(8,777,398) (69,494) (8,846,892) - - -
	(8,777,398) (69,494) (8,846,892)
	22,742,890 81,000 22,823,890

Reconciliation of segment result to Group net profit/(loss) before tax is provided as follows:

	Consolidated
	31 December 2013 $ 31 December 2012 $
Net segment loss Corporate items: Interest revenue Other revenue Employee and Directors’ benefits expense Other expenses Net loss before tax from continuing operations	(610,437) (8,846,892) 83,689 473,482 5,750 - (576,470) (696,534) (189,193) (76,712)
	(1,286,661) (9,146,656)

Segment assets reconcile to total assets as follows:

	Consolidated
	31 December 2013 $ 30 June 2013 $
Segment assets Cash and cash equivalents Trade and other receivables Other current assets Trade and other receivables – non-current Other financial assets Property, plant and equipment Total assets per statement of financial position	24,819,302 22,823,890 5,094,194 8,344,284 70,897 135,905 342,505 65,585 105,086 105,086 - 40,000 30,454 42,424
	30,462,438 31,557,174

Page | 11

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 2: SEGMENT INFORMATION cont’d

Segment revenue reconciles to total revenue from continuing operations as follows:

	Consolidated
	31 December 2013 $ 31 December 2012 $
Segment revenue Interest received Total revenue from continuing operations	4,229,351 - 83,689 473,482
	4,313,040 473,482

NOTE 3: REVENUE

	Consolidated
	31 December 2013 $ 31 December 2012 $
Bullion sales Interest received	4,229,351 - 83,689 473,482
	4,313,040 473,482

NOTE 4: PROPERTY, PLANT AND EQUIPMENT

	Infrastructure $ Leasehold Improvements $ Plant and Equipment $ Construction in Progress $ Total $
At 30 June 2013 Cost Accumulated depreciation Net book amount Half-year ended 31 December 2013 Opening net book amount Additions Disposals Transfers Depreciation expense Closing net book amount At 31 December 2013 Cost Accumulated depreciation Net book amount	188,949 42,043 2,352,516 1,908,107 4,491,615 (13,563) (42,043) (1,143,416) - (1,199,022)
	175,386 - 1,209,100 1,908,107 3,292,593
	175,386 - 1,209,100 1,908,107 3,292,593 - - 2,506,231 - 2,506,231 - - - - - - - 1,908,107 (1,908,107) - (9,448) - (342,951) - (352,399)
	165,938 - 5,280,487 - 5,446,425
	188,949 42,043 6,766,854 - 6,997,846 (23,011) (42,043) (1,486,367) - (1,551,421)
	165,938 - 5,280,487 - 5,446,425

Page | 12

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 5: INVENTORIES

	Consolidated
	31 December 2013 $ 30 June 2013 $
Gold in circuit Gold and silver metal account Diesel fuel	1,088,540 - 117,062 - 114,072 122,466
	1,319,674 122,466

NOTE 6: CONTRIBUTED EQUITY

	Number of Shares Issue Price $	Value $
Details Date
Opening balance at the beginning of reporting period 1 July 2012 Options exercised 12 November 2012 Transaction costs relating to share issues Closing balance 31 December 2012 Opening balance at the beginning of reporting period 1 July 2013 Recognition of treasury shares Closing balance 31 December 2013	3,241,175,631 41,750,000 0.015 3,282,925,631 3,282,925,631 3,282,925,631	130,637,999 626,250 (3,516)
		131,260,733
		131,415,533 32,880
		131,448,413

Shares issued under the Company’s Employee Loan Scheme are deemed to be treasury shares until such time as the loans for these shares have been repaid by the respective employee. As at 31 December 2013 there were 63,470,600 shares with a value of $1,523,294 (31 December 2012: 71,290,600 shares and $1,710,974) deemed as treasury shares. No additional shares have been issues under this scheme during the period.

NOTE 7: SHARE-BASED PAYMENTS

Total expenses arising from share-based payment transactions recognised during the year were as follows:

	Consolidated
	31 December 2013 $ 31 December 2012 $
Put options (employee and Director benefits expenses): Valuation of embedded put options within employee and Director loans Total share-based payment expenses	- 63,894
	- 63,894

Page | 13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 8: EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE

	Consolidated
	31 December 2013 $ 30 June 2013 $
Carrying amount at the beginning of financial period Less: Impairment Carrying amount at the end of financial period	17,617,075 17,985,795 - (368,720)
	17,617,075 17,617,075

NOTE 9: DIVIDENDS

No dividends were paid or declared during the half-year.

NOTE 10: OTHER CURRENT LIABILITIES

		Consolidated	Consolidated
	31	December	30 June
		2013	2013
		$	$
Option signing fee – Clancy Exploration Ltd		250,000		-

ABM has reached an agreement with Clancy Exploration Ltd (ASX: CLY) (“Clancy”) whereby Clancy has the option to acquire 100% of ABM’s interests in the North Arunta Regional Projects (“Projects”). As at 31 December 2013 Clancy has paid a $250,000 option fee for the exclusive option to undertake due-diligence. Details of the transaction are in the ASX announcement released on 29 November 2013. The completion of the agreement remains subject to various conditions including regulatory and shareholder approval.

NOTE 11: FAIR VALUES OF FINANCIAL INSTRUMENTS

(a) Recurring fair value measurements

The Group does not have any financial instruments that are subject to recurring or non-recurring fair value measurements.

(b) Fair values of financial instruments not measured at fair value

The following instruments are not measured at fair value in the statement of financial position. These had the following fair values at 31 December 2013:

	Carrying Amount $ Fair Value $
Current Assets Trade and other receivables Current Liabilities Trade and other payables	70,897 70,897
	2,378,408 2,378,408

Due to their short-term nature, the carrying amounts of current receivables and current trade and other payables is assumed to equal their fair value.

Page | 14

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

NOTE 12: CONTINGENCIES

(a) Environmental

The Group provides for all known environmental liabilities. While the Directors believe that, based upon current information, its current provisions for the environmental rehabilitation are adequate, there can be no assurance that material new provisions will not be required as a result of new information or regulatory requirements with respect to known sites or identification of new remedial obligations at other sites. Bank guarantees totalling $1,637,190 (2012: $783,216) have been provided. Term deposits of $431,000 (2012: $783,216) secure these guarantees. The remaining $1,206,190 are non-cash backed performance bonds under a performance bond facility with ANZ Banking Group Limited, which under certain circumstances may require cash-backing.

(b) Bank Guarantee

Estimates of the potential financial effect of contingent liabilities that may become payable:

	Consolidated	Consolidated
	31 December	31 December
	2013	2012
	$	$
The Parent Entity has provided a bank guarantee to a third party in relation to the
Business Card facility. A term deposit of the same amount secures this guarantee.	70,000	70,000
The Parent Entity has provided a bank guarantee to the lessor of the Nedlands
premises. A term deposit of the same amount secures this guarantee.	35,086	35,086

NOTE 13: RELATED PARTY TRANSACTIONS

Transactions between related parties occur on normal commercial terms and conditions and are no more favourable than those available to other parties unless otherwise stated. During the year loan transactions occurred between the Parent Entity and its wholly owned subsidiaries.

The terms and conditions of the transactions with Directors, other key management personnel and their related parties and entities were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions with non-Director related parties and entities on an arm’s length basis.

NOTE 14: EVENTS OCCURRING AFTER THE REPORTING PERIOD

Clancy has advised ABM of the exercise of their option, for an exercise fee of $150,000, under an agreement with ABM, whereby Clancy will acquire 100% of ABM’s interests in the North Arunta regional projects. The completion of the agreement remains subject to various conditions including regulatory and shareholder approval.

10 Million unlisted options have been exercised at an option exercise price of $0.01 per share.

Mr Imants Kins resigned from his position as Non-Executive Director of ABM effective 18 February 2014.

Page | 15

DIRECTORS’ DECLARATION

The Directors of the Group declare that:

• (a) the financial statements and notes set out on pages 6 to 15 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standard AASB 134 Interim Financial Reporting , the Corporations Regulations 2001; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

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

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

Dated this 19[th] day of February 2014

==> picture [125 x 51] intentionally omitted <==

MIKE ETHERIDGE Non-Executive Chairman

==> picture [112 x 52] intentionally omitted <==

DARREN HOLDEN Managing Director

Page | 16

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

==> picture [78 x 31] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of ABM Resources NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of ABM Resources NL, which comprises the consolidated statement of financial position as at 31 December 2013, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year’s 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 control as the directors determine is 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 half-year 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 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of ABM Resources NL, 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of ABM Resources NL, would be in the same terms if given to the directors as at the time of this auditor’s review report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms.

Page | 17

==> picture [78 x 30] intentionally omitted <==

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 ABM Resources NL 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 2013 and of its performance for the half-year ended on that date; and

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

BDO Audit (WA) Pty Ltd

==> picture [70 x 58] intentionally omitted <==

Brad McVeigh Director

Perth, 19 February 2014

Page | 18