REEF CASINO TRUST — Interim / Quarterly Report 2011

Aug 22, 2011

REEF CASINO TRUST ARSN 093 156 293

APPENDIX 4D

Half year information given to the ASX under listing rule 4.2A

This information should be read in conjunction with the most recent annual financial report.

Reef Casino Trust Half year ended 30 June 2011

Reporting period

Half year ended 30 June 2011

Previous corresponding period

Half year ended 30 June 2010

2. RESULTS FOR ANNOUNCEMENT TO THE MARKET

2.1 Revenue from ordinary activities up 16.5% to $9,758,000 2.2 Profit from ordinary activities after income tax attributable to members up 41% to $2,299,000 See below 2.3 Net profit for the period attributable to members up 41% to $2,299,000 Profit from ordinary activities after income tax attributable to members before distributions to unitholders treated as finance up 41% to $4,598,000 costs Net profit for the period attributable to members before up 41% to $4,598,000 distributions to unitholders treated as finance costs

2.4 Distributions

Amount per unit

For the 6 months ended 30 June 2011

9.0 cents

2.5 Record date for determining entitlements

to distribution

30 June 2011

2.6 Explanations

Refer attached 1. Chairman's Review in half year report.

This report is based on the attached accounts that have been audited and are not subject to any dispute or qualification.

3. NET TANGIBLE ASSETS PER UNIT (NTA backing)

Current period	Previous corresponding period
$1.96	$1.98

4. DETAILS OF CONTROLLED ENTITIES – Reef Casino Trust has not gained or lost control over any entity during the period.

Reef Casino Trust Half year ended 30 June 2011

5. DISTRIBUTIONS

Distributions per unit

Distributions per unit
For the six months ending:	Amount per unit	Amount per unit of foreign source
-current period (payable 23/9/11)	9.00 cents	nil cents
-previous corresponding period	9.00 cents	nil cents
Total distribution ($’000)
	Current period	Previous corresponding period
For the six months ending 30 June	4,482	4,482

Total distribution ($’000)

6. DISTRIBUTION REINVESTMENT PLANS – There is no distribution reinvestment plan in operation for Reef Casino Trust.

7. DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES – Reef Casino Trust does not have any equity accounted associates or joint venture entities.

8. NOT APPLICABLE.

9. NOT APPLICABLE.

CONTACT DETAILS

Please contact the Company Secretary for further information.

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Alison Galligan Company Secretary

Reef Corporate Services Limited/Reef Casino Trust

c/- Mercure Hotel Level 1, 85-87 North Quay Brisbane Qld 4000 Ph: 07 3211 3000 Fax: 07 3211 4777

23 August 2011

ARSN 093 156 293

Half Year Report June 2011

REEF CASINO TRUST

Chairman’s review

Dear Unitholders,

On behalf of the Board of Directors of Reef Corporate Services Limited, responsible entity of the Reef Casino Trust (the Trust), I present my review of the Reef Casino Trust for the six months ended 30 June 2011.

Key points

• Profit before finance costs attributable to unitholders was $4.6 million, up 41.4% on the same period last year. Unitholders’ distributions classified as “finance costs” were $2.3 million resulting in a net profit of $2.3 million.

• Unit distribution of 9 cents per unit for the six months from January to June 2011, was all paid from distributable profits for the period. Earnings per unit was 9.2 cents per unit.

• Strong rental growth from the Reef Hotel Casino despite a rather difficult first half year in terms of trading conditions – continuing weak Cairns economy due to the global financial crisis and natural disasters such as Cyclone Yasi, Queensland floods and Japanese earthquake having a negative impact on Cairns’ tourism.

• Operating costs at the Reef Hotel Casino and the Reef Casino Trust were held under tight control with savings made wherever possible.

Trust distributable profit

Trust distributable profit was $4.6 million for the six months ended 30 June 2011. This compares with $3.3 million in 2010 or 41.4% higher.

The extra gaming tax introduced by the Queensland government for electronic gaming machines, came into effect on 1 July 2009 and in the six months from January to June 2011, the Reef Hotel Casino had an extra tax burden of $1.3 million, slightly up on 2010.

Total revenue (comprising mainly of rental income from the Reef Hotel Casino) was 16.5% higher. This increase is due to good growth in revenues in both casino and hotel operations at the Reef Hotel Casino. In addition, a better than “theoretical” win rate on premium casino play assisted in generating revenues growth.

Trust expenses were well controlled and were just 0.7% higher.

	2011	2010
	$’000	$’000
Revenue and other income
Rental revenue	9,654	8,251
Other revenue and income	104	126
Total revenue and other income	9,758	8,377	16.5%
Expenses
Operating	2,799	2,715
Depreciation and amortisation	2,361	2,410
Total expenses	5,160	5,125	-0.7%
Profit before finance costs1 attributable
to unitholders	4,598	3,252	41.4%
Finance costs1attributable to unitholders	2,299	1,626
Profit for the period	2,299	1,626	41.4%

1 “Finance costs” relate to 50% of distributable profit payable to unitholders.

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REEF CASINO TRUST

Chairman’s review (continued)

	2011	2010
	cents per	cents per
	unit	unit
Earnings per unit	9.2	6.5
Distribution per unit	9.0	9.0

Unit distribution

The Trust has declared a distribution of 9 cents per unit or a total of $4.5 million for the six months from 1 January to 30 June 2011. As Trust losses are expected to be used up during the 2011 financial year, a portion of this distribution will be paid on a “tax deferred” basis and the balance may be taxable in the hands of the unitholders. This will depend on the unitholders’ individual tax circumstances.

The Trust has continued to maintain its stated “100% distributable profits” unit distribution policy. Due to rounding, 0.2 cent per unit ($116K) out of the earnings per unit of 9.2 cents ($4.6 million) will be transferred to the undistributed income account which now stands at 10.09 cents per unit or $5.03 million.

Apart from its continuing policy to pay out 100% of distributable profits in each half year, the Trust will consider making an additional distribution payment from out of the undistributed income account at the end of 2011.

Trust balance sheet

The overall position remains strong and healthy. The Trust’s cash flows remain positive and the Trust continues to have adequate working capital. The Trust’s interest only loan facility remains unchanged at $16.5 million. This term loan extends to December 2015. As at 30 June 2011, the Trust has drawn down $11.75 million. The Trust also has an overdraft facility of $2 million which has not been used to date.

Review of strategy and performance at Reef Hotel Casino

With the protection of the Reef Hotel Casino’s operational bottom line a key priority, management’s approach to operating costs remained careful, prudent and conservative. Management continued to look for costs savings wherever possible.

Given the difficult trading conditions in 2010 and in the first half of 2011, management positioned the complex for return to growth in 2011 and hopefully beyond.

Management targeted marketing and promotional activities to known local and regional casino patrons via the Reef Club, the casino’s loyalty club. This worked well in the first half when in-bound tourism was soft.

Our casino consolidated its premium player market during a difficult time by extra focus on the markets closest to us.

Café China, the best Chinese restaurant in Cairns became a tenant of the Reef Hotel Casino in mid 2010. The addition of Café China has assisted our hotel profitability in 2011 besides being an important part of our casino’s China strategy. While we think direct flights from mainland China are about a couple of years away, so far in 2011 we continue to see a slow and steady increase in the number of Chinese visitors to Cairns.

Complex visitations in the first half year were slightly down by 3% because the natural disasters mentioned earlier caused a drop in tourist numbers including mainland Chinese, Japanese and domestic tourists.

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REEF CASINO TRUST

Chairman’s review (continued)

In the casino, grind (main floor) table games revenues were up 8% while electronic machine revenues were up 3.9% reflecting higher spending by patrons. Premium play revenues were up 15.3% in part due to a higher than “theoretical” win rate. Overall, casino rentals paid to the Trust were up 13.6%.

In the hotel, accommodation revenues were up 9.9% due mainly to a better average room rate being achieved. Our Pullman Reef Hotel Casino continues to lead the 5 star market in Cairns in terms of revenue per available room. Food and beverage revenues were also slightly higher with better profit margins being achieved. Overall, hotel rentals paid to the Trust more than doubled.

At the Trust’s annual general meeting held on 25 May 2011, our CEO flagged that he has initiated an “internal” mini project to be run over the next 18 months designed to improve profitability of the Reef Hotel Casino over the next 2 to 3 years. His “mini project” will include various efficiency measures as well as capital works proposals to enhance the attractiveness of the Reef Hotel Casino complex as the premier entertainment venue in Cairns.

Already, a complete refurbishment of the Michaelmas Cay ballroom and conference area has commenced and is expected to be finished by October of this year.

Pre-commitment for gaming machines

A key condition of independent Tasmanian Federal MP Andrew Wilkie’s support for the federal Labour government was for the government to implement a “mandatory pre-commitment” system at all gaming venues in 2014.

This matter is complex in many aspects and is being played out in the political arena. We are unable to say how this matter will pan out in the end.

Outlook for the second half year

The Reef Hotel Casino’s strategy for 2011 is to improve its profitability compared to 2010. So far, this strategy has been successful. Management’s strategy has at its core the achievement of success by ensuring that the Reef Hotel Casino remains the best entertainment venue in Cairns and Far North Queensland.

As the Trust revenues are the rentals paid by the Reef Hotel Casino, its results will reflect the performance of the Reef Hotel Casino. Trust costs remain under control and are expected to remain stable for the rest of this year.

In the first half of this year, rentals paid by the Reef Hotel Casino to the Trust have recorded strong growth compared to the same period last year. Consequently, Trust distributable profits are 41.4% higher.

In July 2011, the Reef Hotel Casino and the Trust reported good profit results. While there is some reason to be optimistic, our view is that the rest of the year will remain challenging for the Reef Hotel Casino.

On one hand there are some positive signs that Cairns’ and the Far North Queensland region are slowly recovering from the global financial crisis and that tourism is generally improving from a sluggish 2010. On the other hand, consumer sentiment in Australia remains very weak whilst there are global headwinds in the form of a weak US economy and the debt crisis in Europe.

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REEF CASINO TRUST

Chairman’s review (continued)

Overall for 2011, the Trust still expects to show an increase in its distributable profits compared to the year before. As for Trust unit distributions, the Trust will consider a payment out of the undistributed income account at the end of the year. If such a payment is paid, then the total unit distribution is likely to exceed last year’s total distribution of 20 cents per unit.

The recent global financial turmoil in early August may affect our results in 2011. The Trust successfully managed the last global financial crisis. The Trust is in a good financial position and remains positive about its future.

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Ben Macdonald Chairman Reef Corporate Services Limited Responsible Entity of Reef Casino Trust

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REEF CASINO TRUST

Directors’ report

The Directors of Reef Corporate Services Limited, ABN 66 057 599 621, the Responsible Entity of Reef Casino Trust present their half year report together with the interim financial report of the Trust for the half year ended 30 June 2011 and the audit report thereon.

Responsible Entity

The Directors of Reef Corporate Services Limited at any time during or since the end of the half year are:

Name	Period of directorship
Mr Benjamin W Macdonald (Chairman)	Director since 20 September 1995
Mr Keith De Lacy	Director since 1 December 1999
Mr Julian Hercus	Director since 31 October 2000
Mr Michael Issenberg	Director since 21 January 2002
Mr Kim Mooney	Director since 21 January 2002
Mr Allan Tan	Director since 28 March 2006
	Alternate director since 10 July 1997
	(alternate for Mr Macdonald)
Mr Simon McGrath	Director since 23 August 2011
Mr Philip Basha	Alternate director since 23 August 2011
	(alternate for Mr Issenberg & Mr Mooney)

Mr Paul Herzfeld was a director until his resignation on 6 June 2011. Mr Josef Leutgeb also resigned as Mr Herzfeld’s alternate on the same date.

Ms Louise Daley was a director and an alternate director for Mr Mooney until her resignation on 23 August 2011. Mr Simon McGrath was appointed as a director on 23 August 2011 and resigned as alternate director for Mr Issenberg on the same date. Mr Philip Basha was appointed as alternate director for both Mr Issenberg and Mr Mooney on 23 August 2011.

Pending Dr Karl Stoss Director subject to the receipt of regulatory approvals Mr Alexander Tucek Alternate director subject to the receipt of regulatory approvals (alternate for Dr Stoss)

Review of operations

The review of operations is contained in the Chairman's Review on pages 1 to 4.

Distribution

The distribution of $5.48 million (11.0 cents per unit tax deferred) in respect of the six month period ended 31 December 2010 as reported in the 2010 annual report was paid on 24 March 2011.

The Directors have declared a distribution of $4.48 million (9.0 cents per unit) in respect of the six month period ended 30 June 2011 to be paid on 23 September 2011 (refer note 9). The distribution in respect of the six month period ended 30 June 2010 was 9.0 cents per unit tax deferred.

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

The lead auditor’s independence declaration is set out on page 19 and forms part of the directors’ report for the half year ended 30 June 2011.

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REEF CASINO TRUST

Directors’ report (continued)

Rounding off

The Trust is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the interim financial report and directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated.

Signed in accordance with a resolution of the directors of Reef Corporate Services Limited.

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Ben Macdonald Director

Keith De Lacy Director

Brisbane 23 August 2011

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REEF CASINO TRUST

Statement of financial position As at 30 June 2011

Note ASSETS Cash and cash equivalents Receivables Total current assets Receivables Property, plant and equipment 6 Intangible assets 7 Total non-current assets Total assets LIABILITIES Payables 8 Total current liabilities Loans and borrowings Deferred income Issued units – liability portion Total non-current liabilities Total liabilities EQUITY Issued units – equity portion Distribution account 9 Undistributed income Accumulated losses Total equity Total equity and liabilities Memorandum note – issued units Issued units – liability portion Issued units – equity portion	30 June 31 Dec 2011 2010 $'000 $'000 2,883 4,640 1,830 1,069
	4,713 5,709
	750 750 105,212 106,033 100 108
	106,062 106,891
	110,775 112,600
	3,478 3,322
	3,478 3,322
	11,750 12,750 78 82 85,051 85,051
	96,879 97,883
	100,357 101,205
	85,051 85,051 2,183 3,276 5,027 4,911 (81,843) (81,843)
	10,418 11,395
	110,775 112,600
	85,051 85,051 85,051 85,051
	170,102 170,102

The statement of financial position is to be read in conjunction with the accompanying notes.

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REEF CASINO TRUST

Statement of comprehensive income For the half year ended 30 June 2011

Note Revenue and other income Revenue 4 Other income 4 Total revenue and other income Expenses Depreciation and amortisation 5 Property outgoings Rates and taxes Responsible Entity fees Repairs and maintenance Insurance Other expenses from ordinary activities Total expenses Results from operating activities Finance costs attributable to unitholders Interest expense on financial liabilities measured at amortised cost Total finance costs Profit for the period Other comprehensive income for the period Total comprehensive income for the period Basic and diluted earnings per unit (cents) 13 Memorandum note Profit before finance costs attributable to unitholders	30 June 30 June 2011 2010 $’000 $’000 9,754 8,373 4 4
	9,758 8,377
	2,361 2,410 551 494 330 333 556 555 406 310 157 157 347 408
	4,708 4,667
	5,050 3,710 2,299 1,626 452 458
	2,751 2,084
	2,299 1,626 - -
	2,299 1,626
	9.2 6.5 4,598 3,252

The statement of comprehensive income is to be read in conjunction with the accompanying notes.

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REEF CASINO TRUST

Statement of changes in equity For the half year ended 30 June 2011

1 January 2010 Total comprehensive income for the period Transfer to distribution account Transfer from undistributed income Distributions paid 30 June 2010 1 January 2011 Total comprehensive income for the period Transfer to distribution account (note 9) Transfer to undistributed income Distributions paid 30 June 2011	Issued units Distribu- tion account Undist- ributed income Accum- ulated losses Total $’000 $’000 $’000 $’000 $’000 85,051 3,348 7,215 (81,843) 13,771 - - - 1,626 1,626 - 1,626 - (1,626) - - 1,230 (1,230) - - - (3,348) - - (3,348)
	85,051 2,856 5,985 (81,843) 12,049
	85,051 3,276 4,911 (81,843) 11,395 - - - 2,299 2,299 - 2,183 - (2,183) - - - 116 (116) - - (3,276) - - (3,276)
	85,051 2,183 5,027 (81,843) 10,418

The statement of changes in equity is to be read in conjunction with the accompanying notes.

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REEF CASINO TRUST

Statement of cash flows For the half year ended 30 June 2011

Cash flows from operating activities Cash receipts in the course of operations Cash payments in the course of operations Interest received Interest and other finance costs paid Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Net cash from investing activities Cash flows from financing activities (Repayment)/redraw of borrowings Distributions paid (equity portion and liability portion) Net cash from financing activities Net increase/(decrease) in cash held Cash and cash equivalents at 1 January Cash and cash equivalents at 30 June	30 June 30 June 2011 2010 $’000 $’000 9,950 9,260 (3,504) (3,290) 85 93 (525) (452)
	6,006 5,611
	(1,285) (1,097) - 2
	(1,285) (1,095)
	(1,000) 1,250 (5,478) (6,474)
	(6,478) (5,224)
	(1,757) (708) 4,640 3,491
	2,883 2,783

The statement of cash flows is to be read in conjunction with the accompanying notes.

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REEF CASINO TRUST

Notes to the financial statements For the half year ended 30 June 2011

1. The Trust

Reef Casino Trust (the Trust) was established by a Trust Constitution dated 2 July 1993 as amended by supplemental deeds dated 30 November 1993, 19 September 1999, 31 May 2000, 8 August 2001, 14 April 2004 and 29 June 2005. Reef Corporate Services Limited, a company domiciled in Australia, is the Responsible Entity of the Trust. The Trust is the owner and lessor of The Reef Hotel Casino complex in Cairns, North Queensland, Australia.

2. Basis of preparation

(a) Statement of compliance

The interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134 Interim Financial Reporting. It does not include all of the information required for full annual financial statements, and should be read in conjunction with the financial statements as at and for the year ended 31 December 2010.

The interim financial report was approved by the directors of the Responsible Entity on 23 August 2011.

(b) Basis of measurement

The financial report is prepared on the historical cost basis.

(c) Functional and presentation currency

The financial report is presented in Australian dollars, which is the Trust’s functional currency.

The Trust is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with the Class Order, amounts in the interim financial report have been rounded off to the nearest thousand dollars, unless otherwise stated.

(d) Use of estimates and judgements

The preparation of interim 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 expenses. Actual results may differ from these estimates.

In preparing this interim financial report, the significant judgements made in applying the Trust’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the financial statements as at and for the year ended 31 December 2010.

3. Significant accounting policies

The accounting policies applied by the Trust in this interim financial report are the same as those applied by the Trust in its financial report as at and for the year ended 31 December 2010.

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REEF CASINO TRUST

Notes to the financial statements

For the half year ended 30 June 2011

4. Revenue and other income Revenue Rental Base rent Contingent rent Interest received and receivable from Other persons Related parties Other revenue Sundry Other income Government grants 5. Expenses Net profit includes the following specific expenses: Depreciation Building Plant and equipment Amortisation Computer software Site lease Net loss on disposal of property, plant and equipment	30 June 30 June 2011 2010 $’000 $’000 493 479 9,161 7,772
	9,654 8,251
	37 56 40 37
	77 93
	23 29
	9,754 8,373
	4 4
	4 4
	867 866 1,117 1,155
	1,984 2,021
	23 35 354 354
	377 389
	2,361 2,410
	2 -

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REEF CASINO TRUST

Notes to the financial statements For the half year ended 30 June 2011

6. Property, plant and equipment Site lease – at cost Less: Accumulated amortisation Building and integral plant – at cost or deemed cost Less: Accumulated depreciation Plant and equipment – at cost Less: Accumulated depreciation Total property, plant and equipment – net carrying amount	30 June 2011 31 Dec 2010 $’000 $’000 53,000 53,000 (12,396) (12,042)
	40,604 40,958
	69,301 69,301 (12,559) (11,692)
	56,742 57,609
	56,656 55,813 (48,790) (48,347)
	7,866 7,466
	105,212 106,033

An independent valuation of the Trust’s interest in The Reef Hotel Casino Complex was carried out by Jones Lang LaSalle Hotels as at 30 June 2009. The Trust’s interest in the complex, which is considered to be a cash generating unit, comprises the building, site lease, casino licence and plant and equipment. The complex was valued at $143 million (with no residual value). The casino licence has an amortised cost of nil (31 December 2010: nil).

Capital expenditure commitments

Contracted but not provided for and payable: Not longer than one year 624 171

Acquisitions and disposals

During the six months ended 30 June 2011, the Trust acquired property, plant and equipment with a cost of $1,518,044 (six months ended 30 June 2010: $940,541). Assets with a net book value of $1,807 were disposed of during the six months ended 30 June 2011 (six months ended 30 June 2010: $4,656), resulting in a net loss on disposal of $1,807 (six months ended 30 June 2010: net loss of $2,155).

7. Intangible assets

Computer software – at cost Less: Accumulated amortisation Total intangible assets – net carrying amount	598 583 (498) (475)
	100 108

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REEF CASINO TRUST

Notes to the financial statements For the half year ended 30 June 2011

8. Payables Current Trade creditors and accruals – unsecured Accrued distributions (note 9)	30 June 2011 31 Dec 2010 $’000 $’000 1,179 1,120 2,299 2,202
	3,478 3,322

9. Distributions

Distributable income

The Trust Constitution requires calculation of distributable income for each half yearly period commencing either on the first day of January or July and the amount transferred to a distribution account on the last day of such period. As the Trust must distribute at least 50% of net income for the period, this 50% is classified as a liability, and transferred from the distribution account to accrued liabilities on the statement of financial position (note 8).

The proposed distribution was declared on 23 August 2011, and accounted for as follows:

Distribution account(refer to statement of changes in equity) Balance relating to issued units – equity portion Accrued distribution(payables – note 8) Balance relating to issued units – liability portion Total of distribution accounts 2011 Total $’000 Cents per unit Distributions paid and payable Half year ended 31 December paid March 5,478 11.00 Half year ended 30 June paid/payable September 4,482 9.00 9,960 20.00		2,183 3,276 2,299 2,202
		4,482 5,478
		2010 Total $’000 Cents per unit 6,474 13.00 4,482 9.00
		10,956 22.00

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REEF CASINO TRUST

Notes to the financial statements For the half year ended 30 June 2011

	30 June	30 June
	2011	2010
	$’000	$’000
10. Segment information
The Trust has a single operating segment. Revenue from external customers is derived		from the
rental of the Reef Hotel Casino complex, which is made up of the following components:
Rental income
Casino operations	8,802	7,746
Hotel and other non casino operations	852	505
	9,654	8,251

Rental income is received from the lessee of the complex, Casinos Austria International (Cairns) Pty Ltd, which is the Trust’s only customer. All revenue received and non-current assets held are located in one geographical area – Australia.

11. Related party information

There has been no change to the nature of related party transactions disclosed in the most recent annual financial report.

12. Contingent liabilities and contingent assets

There were no contingent liabilities or contingent assets.

13. Earnings per unit Basic and diluted earnings per unit (cents) Weighted average number of units at the end of the half year Profit for the period	30 June 2011 30 June 2010 9.2 6.5
	24,900,518 24,900,518 $'000 $'000 2,299 1,626

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REEF CASINO TRUST

Directors’ declaration

In the opinion of the directors of Reef Corporate Services Limited, the Responsible Entity of Reef Casino Trust (the Trust):

• (a) the financial statements and notes that are contained on pages 7 to 15, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the financial position of the Trust as at 30 June 2011 and of its performance for the half year ended on that date; and

• (ii) complying with Australian Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and

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

Signed in accordance with a resolution of the directors of Reef Corporate Services Limited:

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Ben Macdonald Director

Keith De Lacy Director

Brisbane 23 August 2011

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Independent Auditor’s Report To the Unitholders of Reef Casino Trust

Report on the financial report

We have audited the accompanying interim financial report of Reef Casino Trust (the Trust), which comprises the statement of financial position as at 30 June 2011, statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes 1 to 13 comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ responsibility for the financial report

The directors of Reef Corporate Services Limited (the Responsible Entity), are responsible for the preparation of the interim 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 financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

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

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

We performed the procedures to assess whether in all material respects the interim financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standard AASB 134 Interim Financial Reporting, a true and fair view which is consistent with our understanding of the Trust’s financial position, and of its performance.

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

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Independent Auditor’s Report To the Unitholders of Reef Casino Trust (continued)

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion

In our opinion the interim financial report of Reef Casino Trust is in accordance with the Corporations Act 2001, including:

• (a) giving a true and fair view of the Trust’s financial position as at 30 June 2011 and of its performance for the half-year ended on that date; and

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

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KPMG

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Gerry Mier Partner

Cairns

23 August 2011

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Lead Auditor’s Independence Declaration Under Section 307C of the Corporations Act 2001 to the directors of Reef Corporate Services Limited

I declare that, to the best of my knowledge and belief, in relation to the audit for the half year ended 30 June 2011 there have been:

• (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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

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KPMG

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Gerry Mier Partner

Cairns

23 August 2011

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REEF CASINO TRUST

Trust directory

Registered office Reef Corporate Services Limited of the Responsible Entity Level 1 Mercure Hotel 85-87 North Quay BRISBANE QLD 4000 Telephone: (07) 3211 3000 Facsimile: (07) 3211 4777 www.reefcasino.com.au/trust

Directors of the Responsible Entity

Mr Benjamin W Macdonald (Chairman) Hon Keith De Lacy Mr Julian Hercus Mr Michael Issenberg Mr Kim Mooney Mr Allan Tan Mr Simon McGrath Pending: Dr Karl Stoss, subject to the receipt of regulatory approvals

Alternate directors

Mr Allan Tan (alternate for Mr Macdonald) Mr Philip Basha (alternate for Mr Issenberg & Mr Mooney) Pending: Mr Alexander Tucek (alternate for Dr Stoss), subject to the receipt of regulatory approvals

Secretary of the Responsible Entity

Ms Alison Galligan

Compliance, Audit & Hon Keith De Lacy (Chairman) Risk Committee Mr Julian Hercus of the Responsible Entity Mr Kim Mooney Mr Philip Basha (alternate for Mr Mooney)

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REEF CASINO TRUST

Trust directory

Solicitors to the Freehills Responsible Entity Level 38 Central Plaza One 345 Queen Street BRISBANE QLD 4000 Unit registry Computershare Investor Services Pty Ltd 117 Victoria Street WEST END QLD 4101 GPO Box 2975 MELBOURNE VIC 3001 Telephone: 1300 850 505 Bankers Bank of Queensland Limited 259 Queen Street BRISBANE QLD 4000 Auditors of the Trust KPMG Level 13 Cairns Corporate Tower 15 Lake Street CAIRNS QLD 4870 Securities exchange listing Official list of the Australian Securities Exchange Limited Home Exchange: Brisbane Sub-lessee of Reef Hotel Casinos Austria International (Cairns) Pty Ltd Casino Complex Level 1 Mercure Hotel 85-87 North Quay BRISBANE QLD 4000 Telephone: (07) 3211 3000 Facsimile: (07) 3211 4777

Reef Hotel Casino 35-41 Wharf Street CAIRNS QLD 4870 Telephone: (07) 4030 8888 Facsimile: (07) 4030 8777 www.reefcasino.com.au

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