RTG Mining Inc. — Interim / Quarterly Report 2017

Nov 13, 2017

==> picture [344 x 182] intentionally omitted <==

Consolidated Interim Financial Statements

For the three and nine month periods ended September 30, 2017

RTG MINING INC. NOTICE OF NO AUDITOR REVIEW OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The consolidated interim financial statements of RTG Mining Inc. (“RTG”, “the Company” or “the Group”) is a general purpose condensed financial report which has been prepared in accordance with the requirements of International Accounting Standard 34 (“IAS 34”) as issued by the International Accounting Standards Board. The consolidated interim financial statements have also been prepared on a historical cost basis and are presented in United States Dollars (US$). These financial statements are the responsibility of management and have not been reviewed by the Company’s auditors. The most significant accounting principles have been set out in the audited financial statements and Annual Information Form dated March 30, 2017 for the year ended December 31, 2016 and the related notes thereto. A precise determination of many assets and liabilities is dependent on future events. Therefore, estimates and approximations have been made using careful judgment. Recognising that the Company is responsible for both the integrity and objectivity of the consolidated interim financial statements, management is satisfied that these consolidated interim financial statements have been fairly presented.

For further information please contact:

Ryan Eadie Financial Controller and Company Secretary

Telephone: +61 8 6489 2900 Fax: +61 8 6489 2920

1

RTG MINING INC. CORPORATE DIRECTORY

Directors Company Secretary Office Bankers Auditors Share Registry Stock Exchange Lawyers Website	Michael J Carrick Justine A Magee Robert N Scott Phillip C Lockyer David A T Cruse Ryan R Eadie Registered Sea Meadow House Blackburne Highway PO Box 116 Road Town Tortola VG1110 British Virgin Islands Westpac Banking Corporation 130 Rokeby Road Subiaco, Western Australia, 6008 Australia BDO Audit (WA) Pty Ltd 38 Station Street Subiaco, Western Australia, 6008 Australia Australian Register Computershare Investor Services Pty Limited Level 11 172 St Georges Terrace Perth, Western Australia, 6000 Australia Telephone: +61 8 9323 2000 Facsimile: +61 8 9323 2033 Australia Australian Securities Exchange Limited Exchange Code: RTG – Chess Depositary Interests (CDI’s) Corrs Chambers Westgarth Level 15 240 St Georges Terrace Perth, Western Australia, 6000 Australia K&L Gates Level 32 44 St Georges Terrace Perth, Western Australia, 6000 Australia www.rtgmining.com	Chairman President and Chief Executive Officer Non-Executive Lead Director Non-Executive Director Non-Executive Director Principal Level 2 338 Barker Road Subiaco, Western Australia, 6008 Australia Telephone: +61 8 6489 2900 Facsimile: +61 8 6489 2920 Canadian Register Computershare Investor Services Inc. 11thFloor 100 University Avenue Toronto, Ontario, M5J2Y1 Canada Telephone: +1 416 263 9449 Facsimile: +1 416 981 9800 Canada Toronto Stock Exchange Inc. Exchange Code: RTG – Fully paid shares Blakes Cassels & Graydon Suite 2600, 3 Bentall Centre 59 Burrard Street Vancouver, BC, V7X 1L3 Canada

2

RTG MINING INC. CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

UNAUDITED - PREPARED BY MANAGEMENT

		3 MONTH PERIOD ENDED	3 MONTH PERIOD ENDED	9 MONTH PERIOD ENDED	9 MONTH PERIOD ENDED
		September 30	September 30	September 30	September 30
		2017	2016	2017	2016
	Note	US$	US$	US$	US$
Continuing operations
Other income	3	67,171	210,262	101,942	246,744
Exploration and evaluation expenditure	4	-	(83,832)	-	(405,133)
Business development expenses	4	(237,334)	(298,573)	(1,047,178)	(787,142)
Share of Associates loss	4	(277,713)	(297,616)	(1,195,672)	(831,640)
Impairment expense	4	(1,859,374)	-	(4,955,264)	-
Foreign exchange gain		31,172	155,818	204,325	129,267
Administrative expenses	4	(655,522)	(871,782)	(2,004,167)	(2,379,802)
Loss before income tax from continuing operations		(2,931,600)	(1,185,723)	(8,896,014)	(4,027,706)
Income tax benefit		-	-	-	-
Loss for the period from continuing operations		(2,931,600)	(1,185,723)	(8,896,014)	(4,027,706)
Discontinued operations
Profit from discontinued operations		-	699,843	-	699,843
Net loss for the year		(2,931,600)	(485,880)	(8,896,014)	(3,327,863)
Other comprehensive income / (loss)
Items that may be reclassified to profit or loss in subsequent periods
Exchange differences on translation of foreign operations		138,402	174,091	277,005	194,085
Net gain on available-for-sale financial assets		250,833	170,921	1,605,056	170,921
Total comprehensive loss for the period		(2,542,365)	(140,868)	(7,013,953)	(2,962,857)
Loss attributable to:
Equity holders of the Company		(2,931,600)	(485,880)	(8,896,014)	(3,327,863)
Total comprehensive loss attributable to:
Equity holders of the Company		(2,542,365)	(140,868)	(7,013,953)	(2,962,857)
Loss per share from continuing operations
Basic loss per share (cents)		(1.75)	(0.31)	(5.31)	(2.09)
Diluted loss per share (cents)		(1.75)	(0.31)	(5.31)	(2.09)
Loss per share attributable to ordinary shareholders
Basic loss per share (cents)		(1.52)	(0.09)	(4.19)	(1.86)
Diluted loss per share (cents)		(1.52)	(0.09)	(4.19)	(1.86)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

3

RTG MINING INC. CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

UNAUDITED - PREPARED BY MANAGEMENT

Note Current assets Cash and cash equivalents 5 Receivables 6 Prepayments Total current assets Non-current assets Receivables 6 Property, plant and equipment Available-for-sale financial assets 7 Investment in Associates 8 Total non-current assets Total assets Current liabilities Trade and other payables Provisions Total current liabilities Total liabilities Net assets Shareholder’s equity Issued capital 9 Reserves 9 Accumulated losses Total shareholder’s equity	September 30 2017 December 31 2016 US$ US$
	4,433,210 11,207,422 2,245,152 1,061,555 20,436 41,515
	6,698,798 12,310,492
	- 2,000,000 169,289 187,311 3,113,811 1,508,755 9,978,540 10,988,032
	13,261,640 14,684,098
	19,960,438 26,994,590
	247,769 295,142 191,759 164,585
	439,528 459,727
	439,528 459,727
	19,520,910 26,534,863
	138,376,685 138,376,685 9,954,762 8,072,701 (128,810,537) (119,914,523)
	19,520,910 26,534,863

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

4

RTG MINING INC. CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

UNAUDITED - PREPARED BY MANAGEMENT

Nine months to September 30, 2017	Issued capital	Acquisition reserve	Asset revaluation reserve	Share based payment reserve	Foreign currency translation	Accumulated losses	Total
					reserve
	US$	US$	US$	US$	US$	US$	US$
Balance at January 1, 2017	138,376,685	-	8,755	7,601,285	462,661	(119,914,523)	26,534,863
Loss for the period	-	-	-	-	-	(8,896,014)	(8,896,014)
Currency translation differences	-	-	-	-	277,005	-	277,005
Netgain on available-for-sale financial assets	-	-	1,605,056	-	-	-	1,605,056
Total comprehensive income / (loss) for the period	-	-	1,605,056	-	277,005	(8,896,014)	(7,013,953)
Shares issued during the period	-	-	-	-	-	-	-
Share issue expenses	-	-	-	-	-	-	-
Balance at September 30, 2017	138,376,685	-	1,613,811	7,601,285	739,666	(128,810,537)	19,520,910
Nine months to September 30, 2016	Issued capital	Acquisition reserve	Asset revaluation reserve	Share based payment reserve	Foreign currency translation	Accumulated losses	Total
					reserve
	US$	US$	US$	US$	US$	US$	US$
Balance at January 1, 2016	124,708,862	(4,300,157)	-	7,601,285	144,443	(35,091,165)	93,063,268
Loss for the period	-	4,300,157	-	-	194,085	(3,327,863)	1,166,379
Currency translation differences	-	-	-	-	-	-	-
Netgain on available-for-sale financial assets	-	-	170,921	-	-	-	170,921
Total comprehensive income / (loss) for the period	-	4,300,157	170,921	-	194,085	(3,327,863)	1,337,300
Shares issued during the period	14,955,390	-	-	-	-	-	14,955,390
Share issue expenses	(1,286,542)	-	-	-	-	-	(1,286,542)
Balance at September 30, 2016	138,377,710	-	170,921	7,601,285	338,528	(38,419,028)	108,069,416

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

5

RTG MINING INC. CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

CONSOLIDATED STATEMENT OF CASH FLOWS

UNAUDITED - PREPARED BY MANAGEMENT

Note Operating activities Payments for exploration and evaluation Payments to suppliers and employees Interest received Other receipts Net cash flows used in operating activities Investing activities Payments for property, plant and equipment Loans to associated entities Proceeds from sale of subsidiary Investment in non-related entities Increase to bank guarantees Net cash flows from / (used in) investing activities Financing activities Proceeds from issue of shares Capital raising costs Net cash flows from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period Net foreign exchange difference Cash and cash equivalents at end of the period 5	3 MONTH PERIOD ENDED 9 MONTH PERIOD ENDED September 30 2017 September 30 2016 September 30 2017 September 30 2016 US$ US$ US$ US$
	- (83,832) - (405,133) (1,026,719) (1,352,163) (3,156,798) (3,116,820) 1,576 2,622 35,832 5,595 65,578 207,640 65,578 241,150
	(959,565) (1,225,733) (3,055,388) (3,275,208)
	- (269) (538) (2,433) (1,741,865) (574,349) (3,949,355) (3,079,070) 1,450,000 - 1,450,000 - (750,000) (50,000) - - - - 136,614
	(1,741,865) 125,382 (3,999,893) (1,494,889)
	- 14,955,390 - 14,955,390 - (1,286,542) - (1,286,542)
	- 13,668,848 - 13,668,848
	(2,701,430) 12,568,497 (7,055,281) 8,898,751 7,083,595 907,910 11,207,422 4,561,717 51,045 218,397 281,069 234,336
	4,433,210 13,694,804 4,433,210 13,694,804

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

6

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

UNAUDITED - PREPARED BY MANAGEMENT

1. CORPORATE INFORMATION

The consolidated interim financial statements of RTG are presented as at September 30, 2017 and for the period January 1, 2017 to September 30, 2017.

RTG was incorporated on December 27, 2012, and is domiciled in the British Virgin Islands. The Company’s registered address is Sea Meadow House, Blackburne Highway (PO Box 116) Road Town, Tortola, British Virgin Islands. Its shares are publicly traded on both the Australian Stock Exchange (“ASX”) and the Toronto Stock Exchange (“TSX”).

Highlights for the three months to September 30, 2017 included:

• RTG has been nominated as the development partner with the joint venture company of the Special Mining Lease Osikaiyang Landowners Association and Central Exploration Pty Ltd (“Central”) in their proposal with respect to the redevelopment of the 1.5B tonne Copper-Gold Panguna Project located in the Central Region of the island of Bougainville, within the Autonomous Region of Bougainville, Papua New Guinea.

• Mt. Labo Exploration and Development Corporation (“Mt. Labo”) is continuing with the arbitration proceedings against Galeo Equipment Corporation (“Galeo”) in the Singapore International Arbitration Centre seeking a number of reliefs, including a declaration that the JVA was validly terminated and the compromise agreement was validly rescinded.

• Improvements in commodity prices from the original feasibility study have led to a 90% increase in the NPV of the Mabilo Project.

• General Cimatu was confirmed in the Philippines as the new Secretary of the Department of Environment and Natural Resources (“DENR”), replacing the previous Secretary Ms Gina Lopez. The mining industry has overwhelmingly supported the appointment of Secretary Cimatu, who has been quoted as supporting “responsible mining” in the Philippines.

• On 25 October 2017, Secretary Cimatu announced, as co-chair of the Mining Industry Co-ordinating Council (“MICC”), that a majority of MICC members voted to recommend a change in the policy of the DENR with regard to the ban on open-pit mining and plan before year end to issue a DENR Administrative Oder restoring open pit mining operations.

• Mt. Labo has been working with the DENR and Mines and Geosciences Bureau to progress and perfect the permitting process for the Mabilo Project.

• An order was received in the Philippine Courts on actions commenced there by Galeo against Mt. Labo and others that the proceedings were to be referred to Singapore for arbitration, so all current matters have been consolidated in Singapore.

• The Company continues to investigate a number of new business development opportunities diversifying its Philippine interests including the abovementioned opportunity in Bougainville, should the landowners be successful in their current efforts.

7

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

The consolidated interim financial statements is a general purpose condensed financial report which has been prepared in accordance with the requirements of International Accounting Standard 34 (“IAS 34”) as issued by the International Accounting Standards Board. The consolidated interim financial statements have also been prepared on a historical cost basis and are presented in United States Dollars (US$).

Significant accounting policies

These consolidated interim financial statements do not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Company as in the annual audited financial statements. It is recommended that these consolidated interim financial statements be read in conjunction with the annual financial report for the year ended December 31, 2016, and any public announcements made by the Company during the period.

3. OTHER INCOME

3. OTHER INCOME
Interest income Research and development tax credit received	3 MONTH PERIOD ENDED 9 MONTH PERIOD ENDED September 30 2017 September 30 2016 September 30 2017 September 30 2016 US$ US$ US$ US$
	1,593 2,622 36,364 5,594 65,578 207,640 65,578 241,150
	67,171 210,262 101,942 246,744

8

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

4. EXPENSES

4. EXPENSES
Exploration and evaluation expenditure Consultants fees Employee fees Travel expenses Other Business development expenses Conferences Employee and director fees Project analysis Travel expenses Other expenses Administrative expenses Accounting, tax services and audit fees Computer support fees Consultants fees Depreciation expenses Employee and directors fees Insurance Legal fees Listing and shareholder reporting costs Occupancy expenses Travel expenses Other expenses Share of Associate loss Share of net losses of Associates Impairment expense Available-for-sale financial asset impairment Loan receivable Loans to Associates	3 MONTH PERIOD ENDED 9 MONTH PERIOD ENDED September 30 2017 September 30 2016 September 30 2017 September 30 2016 US$ US$ US$ US$
	- 3 - 60,757 - 47,384 - 130,462 - 36,445 - 206,222 - - - 7,692
	- 83,832 - 405,133
	6 - 22,379 - 108,724 108,460 319,116 302,084 607 - 44,033 - 75,945 121,939 347,584 279,029 52,052 68,174 314,066 206,029
	237,334 298,573 1,047,178 787,142
	81,746 62,057 136,514 195,847 7,878 6,549 21,077 27,574 33,442 77,462 134,678 253,476 6,439 6,595 18,560 20,396 387,758 308,700 1,155,982 957,655 10,214 15,215 41,107 25,869 1,063 251,780 17,992 533,940 21,122 56,128 99,366 145,451 38,500 23,526 110,934 108,714 40,001 - 191,244 - 27,359 63,770 76,713 110,880
	655,522 871,782 2,004,167 2,379,802
	277,713 297,616 1,195,672 831,640
	277,713 297,616 1,195,672 831,640
	- - 800,000 - 117,510 - 205,909 - 1,741,864 - 3,949,355 -
	1,859,374 - 4,955,264 -

9

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

5. CASH AND CASH EQUIVALENTS

5. CASH AND CASH EQUIVALENTS
Cash on hand Cash at bank	September 30 2017 December 31 2016 US$ US$
	85 72 4,433,125 11,207,350
	4,433,210 11,207,422

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, earning interest at the respective short-term deposit rates.

6. RECEIVABLES

Current assets GST receivable Other receivables Loan receivables (i) Non-current assets Other receivable	21,582 22,454 2,223,570 206,223 - 832,878
	2,245,152 1,061,555
	- 2,000,000
	- 2,000,000

(i) During the period, $800,000 previously advanced to Central, an un-listed Australian proprietary company, was converted into an equity investment.

7. AVAILABLE-FOR-SALE FINANCIAL ASSETS

Non-current Available for sale financial assets Reconciliation of movements in available-for-sale financial assets: Opening balance Additions (i) Gain on fair value measurement Impairment expense (ii) Closing balance	3,113,811 1,508,755
	3,113,811 1,508,755
	1,508,755 - 800,000 1,500,000 1,605,056 8,755 (800,000) -
	3,113,811 1,508,755

(i) During the period, $800,000 previously advanced to Central, an un-listed Australian proprietary company, was converted into an equity investment.

(ii) Impairment of available-for-sale financial assets of $800,000 was recognised during the period relating to the equity investment in Central.

10

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

8. NET INVESTMENT IN ASSOCIATES

The Group has a direct 40% interest in each of Mt. Labo, St Ignatius Exploration and Mineral Resources Corporation, Bunawan Mining Corporation and Oz Metals Exploration and Development Corporation (“Associates”). All of these companies are incorporated in the Philippines. The Group’s interest in the Associates is accounted for using the equity method. The following table illustrates summarised financial information relating to the Group’s Associates:

Investment in Associates Opening balance Impairment Share of Associates net loss Share of foreign currency translation reserve Loans to Associates Opening balance Loans to Associates Impairment Closing balance	September 30 2017 December 31 2016 US$ US$
	10,988,032 80,650,232 - (69,607,950) (1,195,671) (386,275) 186,179 332,025
	9,978,540 10,988,032
	- 7,622,597 3,949,355 3,516,743 (3,949,355) (11,139,340)
	- -
	9,978,540 10,988,032

9. ISSUED CAPITAL AND RESERVES

Issued and paid up share capital
	September 30	December 31	September 30	December 31
	2017	2016	2017	2016
	Number	Number	US$	US$
Issued and paid up capital	167,585,577	167,585,577	138,376,685	138,376,685

Fully paid shares carry one vote per share and the right to dividends. The Company is authorised to issue an unlimited number of shares of no par value of a single class.

11

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

9. ISSUED CAPITAL AND RESERVES – continued

Movements in contributed equity during the period were as follows:

Opening balance at January 1, 2017 Shares issues Shares issue costs Total shares on issue at September 30, 2017 Opening balance at January 1, 2016 Shares issues Shares issue costs Total shares on issue at December 31, 2016 Reserves Asset revaluation reserve Share based payment reserve Foreign currency translation reserve Movements in warrants during the period were as follows: Opening balance at January 1, 2017 Expired during the period Total warrants on issue at September 30, 2017 Opening balance at January 1, 2016 Exercised Total warrants on issue at December 31, 2016	Number	US$
	167,585,577 - -	138,376,685 - -
	167,585,577	138,376,685
	134,252,237 33,333,340 -	124,708,862 14,955,389 (1,287,566)
	167,585,577	138,376,685
	September 30 2017 US$	December 31 2016 US$
	1,613,811 7,601,285 739,666	8,755 7,601,285 462,661
	9,954,762	8,072,701
		Number
		8,784,687 (8,784,687)
		-
		8,784,687 -
		8,784,687

The warrants issued in 2014 (under the Scheme of Arrangement with Sierra Mining Limited) were valued using the Black and Scholes method with the following assumptions:

Number of warrants	8,784,854
Grant date share price	C$1.10
Exercise price	C$1.50
Expected volatility	90%
Option life	3 years
Dividend yield	0.00%
Interest rate	1.2%
Expiry date	June 4, 2017

12

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

10. DIVIDENDS

No dividends have been paid or provided for during the period.

11. FINANCIAL INSTRUMENTS - FAIR VALUE MEASUREMENT

Fair value

The carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their respective net fair values, determined in accordance with the Company’s accounting policies. All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, is described as follows:

• Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

Recognised fair value measurements

The following table presents the Group’s assets measured at fair value at September 30, 2017 and December 31, 2016:

At September 30, 2017 Available-for-sale financial asset Total At December 31, 2016 Available-for-sale financial asset Total	Level 1 Level 2 Level 3 Total US$ US$ US$ US$
	3,113,811 - - 3,113,811
	3,113,811 - - 3,113,811
	Level 1 Level 2 Level 3 Total US$ US$ US$ US$
	1,508,755 - - 1,508,755
	1,508,755 - - 1,508,755

Fair value of other financial instruments not measured at fair value

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

13

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

12. SEGMENT REPORTING NOTE

The Company’s operations are segmented on a regional basis and are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker who is responsible for allocating resources and assessing performance of the operating segments has been defined as the Chief Executive Officer.

The Company operates in a single segment, being mineral exploration and development with its exploration and evaluation assets held in the Philippines.

September 30, 2017

Operating segment Segment assets Corporate assets Total assets Segment liabilities Corporate liabilities December 31, 2016 Operating segment Segment assets Corporate assets Total assets Segment liabilities Corporate liabilities	Philippines Australia Other 2017 2017 2017 US$ US$ US$	Consolidated total 2017 US$
	9,978,540 9,959,708 22,190 - (439,528) - Philippines Australia Other 2016 2016 2016 US$ US$ US$	19,960,438
		19,960,438
		(439,528)
		Consolidated total 2016 US$
	10,988,032 16,001,175 5,383 - (459,727) -	26,994,590
		26,994,590
		(459,727)

14

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

13. COMMITMENT AND CONTINGENCIES

September 30, 2017 Contractual obligations	Payments due by period Total Within one year One year and not later than fiveyears More than 5 years
Lease obligations1 Total contractual obligations	279,533 157,725 121,808 -
	279,533 157,725 121,808 -

1 Corporate office lease payments due.

December 31, 2016 Contractual obligations	Payments due by period Total Within one year One year and not later than five years More than 5 years
Lease obligations1 Total contractual obligations	361,833 140,780 221,053 -
	361,833 140,780 221,053 -

1 Corporate office lease payments due.

Contingent Liabilities

Mt. Labo has estimated contingent liabilities relating to the legal proceedings for both the civil case in the Philippines and arbitration through the Singapore International Arbitration Centre. In the event that Mt. Labo is found to be liable to Galeo’s claims, Mt. Labo’s costs are estimated as PHP1,500,000 for the civil case against Galeo and USD3,500,000 under arbitration. The Directors consider that it is not probable that these cash outflows will occur and have therefore not recorded a liability.

At September 30, 2017 the Company had no other contingent liabilities (December 31, 2016: nil).

14. RELATED PARTY DISCLOSURE

Controlling entity

The ultimate controlling entity in the wholly owned group is RTG Mining Inc.

Other transactions with related parties

Transactions with related parties consist of companies with Directors and officers in common and companies owned in whole or in part by executive officers and Directors as follows for the three months ended September 30, 2017 and 2016:

Name

Nature of transactions

Coverley Management Services Pty Ltd Consulting as Director

The company paid the following fees in the normal course of operation in connection with companies owned by Directors:

Directors fees	3 MONTH PERIOD ENDED 9 MONTH PERIOD ENDED September 30 2017 September 30 2016 September 30 2017 September 30 2016 US$ US$ US$ US$
	10,723 12,623 33,764 38,601
	10,723 12,623 33,764 38,601

15

RTG MINING INC. NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017

14. RELATED PARTY DISCLOSURE – continued

During the nine months ended September 30, 2017 the Group entered into transactions with related parties:

• Loans of $89,213 were advanced on short term inter-company accounts, and

• Loans of $3,949,355 were advanced on to Associates of the Company.

These transactions were undertaken on the following terms and conditions:

• Loans are repayable at call, and

• No interest is payable on the loans at present.

15. EVENTS AFTER REPORTING PERIOD

No significant events have occurred subsequent to the reporting period that would have a material impact on the consolidated interim financial statements.

16