RUMBLE RESOURCES LIMITED — Interim / Quarterly Report 2014

Mar 13, 2014

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ABN 74 148 214 260

And Controlled Entities

Interim Financial Report For the Half-Year Ended December 2013

RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT For the Half-Year Ended 31 December 2013

Company Directory	1
Directors' Report	2
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	10
Condensed Consolidated Statement of Financial Position	11
Condensed Consolidated Statement of Changes in Equity	12
Condensed Consolidated Statement of Cash Flows	13
Notes to the Condensed Financial Statements	14
Directors' Declaration	21
Auditor’s Independence Declaration	22
Independent Auditor’s Review Report	23

RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

COMPANY DIRECTORY

For the Half-Year Ended 31 December 2013

EXECUTIVE DIRECTOR

Terence Topping

CHIEF EXECUTIVE OFFICER

Shane Sikora

NON-EXECUTIVE DIRECTORS

Michael Smith Matthew Banks Andrew McBain

COMPANY SECRETARY

David Palumbo

REGISTERED OFFICE

Level 11, 216 St Georges Terrace PERTH WA 6000 Telephone: (08) 9481 0389 Facsimile: (08) 9463 6103

AUDITORS

Bentleys Level 1, 12 Kings Park Road WEST PERTH WA 6005

SHARE REGISTRAR

Advanced Share Registry Services

150 Stirling Highway NEDLANDS WA 6009 Telephone: (08) 9389 8033 Facsimile: (08) 9389 7871

STOCK EXCHANGE CODE

RTR

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

Your directors submit the financial report of the Consolidated Group “the Group” for the half-year ended 31 December 2013.

DIRECTORS

The names of Directors who held office during or since the end of the half year are:

Terence Topping Executive Director Michael Smith Non–Executive Director Matthew Banks Non-Executive Director Andrew McBain Non-Executive Director

RESULTS

The loss after tax for the half-year ended 31 December 2013 was $276,319 (2012: $631,912).

REVIEW OF OPERATIONS

Currently Rumble Resources Limited’s (“Rumble”) activities are focussed on the Fraser Range with the Company making a recent acquisition of the Big Red Project and also commencing a Joint Venture with Blackham Resources on the Zanthus Project. The Company also retains a Joint Venture with Canyon in Burkina Faso and other gold and base metal projects in Western Australia.

Fraser Range Project

The Fraser Range Project is prospective for sulphide nickel and copper mineralisation similar to the discovery of the Nova deposit just over 18 months ago by Sirius Resources Ltd (ASX: SIR). The Company has two main project areas, Big Red, to the north and a recent Joint Venture at Zanthus 18km east of the Nova deposit. The Big Red Project has exciting geological factors previously defined, from drilling completed by Teck Australia in 2010 and subsequent study of the drill core by the Geological Survey of Western Australia. This included the intersection of mafic gabbro sills in both Teck Australia drillholes, BRDDH001 & BRDDH002, which is also the host rock unit to the Nova and Bollinger nickel-copper sulphide deposits and interestingly also the host to nickel-copper sulphides intersected at the Mammoth target by Classic Minerals Ltd (ASX:CLZ) announced in December 2013.

The company commenced exploration with a ground electro-magnetic (“EM”) survey programme to determine if conductive bodies which may represent massive sulphide mineralisation are present. This moving-loop electro-magnetic (EM) survey aimed to explore the highly prospective magnetic and gravity targets that were recently identified through reprocessing ground gravity data and 3D inversion modelling of detailed airborne magnetics.

This ground EM survey has identified a significant bedrock conductor which is currently 2.2km long. The bedrock conductor is of moderate conductance levels and has a depth extent of around 250 metres to the top of the body, which is dipping towards the east.

The conductor appears to be parallel to the local geology with the conductance levels increasing and becoming shallower as the EM survey continues moving towards the north.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

REVIEW OF OPERATIONS (CONT.)

Rumbles application for the WA State Government’s Exploration Incentive Scheme (EIS) has been successful. Rumble has been awarded up to $150,000 in co-funding to drill test the highly prospective Fraser Range Project targets.

The EIS scheme is an initiative by the WA Government to encourage innovative drilling by companies in Greenfields regions of Western Australia. Rumble considers the grant of EIS funding, which is subject to a competitive process, to be indicative of the quality of the Fraser Range Project and targets identified to date.

Rumble has acquired the Big Red Project 100% by paying $30,000 in cash and $70,000 in listed shares with one free attaching option for each listed share.

The Company subsequent to 31 December 2013 also announced that it had entered into a Joint Venture with Blackham Resources on the Zanthus project E69/2506 is situated approximately 18km East of the recently discovered Nova Nickel Copper Massive Sulphide discovery by Sirius Resources NL (ASX: SIR).

The transaction has repositioned Rumble as a major player in the Fraser Range nickel province with 796 sq km’s of ground prospective for nickel and copper massive sulphides. Strongly magnetic units can be recognised in the aeromagnetic data, especially in the central region of the project area, and are interpreted as potential mafic and ultramafic units. These magnetic horizons also indicate potentially prospective structural features including dilation zones and fault offsets.

The Zanthus Project has previously been explored for lignite, however very little base and precious metal exploration has been conducted to date, especially into the basement.

Historic drilling by Sabminco NL in 1993 indicated that anomalous Gold and PGE values were identified during an exploration drilling campaign at Zanthus and returned anomalous results of up to 2m @ 150ppb gold, 4.19ppb palladium and 15.4ppb platinum from a depth of 55m down hole. From past drilling the basement is interpreted to be between 20m and 55m below surface.

a) Mineral Rights. Rumble agreed to acquire all the basement mineral rights in the Project which excludes coal and mineral sands/heavy metals within the sedimentary cover sequences. Blackham will keep all rights over Zanthus coal orebody.

b) Acquiring 20% interest. Rumble has acquired an initial 20% initial interest in the Project in consideration for Rumble issuing to Blackham 2,000,000 Rumble Shares. (Stage 1 Earn-in Milestone).

c) Acquiring 50% interest. Rumble will acquire a 50% interest in the Project through spending $1million Australian dollars on exploration over the first 2 years from the date of the Formal Agreement (Stage 2 Earn-in Milestone).

On meeting the 50% interest, Rumble shall make a payment of $250,000 Australian dollars to be apportioned 30% in cash and 70% in Rumble shares.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

REVIEW OF OPERATIONS (CONT.)

Minimum 50% - If Rumble doesn’t satisfy the Stage 2 Earn-in Milestone, Rumble will transfer back its 20% interest in the Project.

d) Acquiring 75% interest. Rumble will acquire a 75% interest in the Project through spending an additional $1.5 million Australian dollars on exploration in years 3 and 4 from the date of the Formal Agreement (Stage 3 Earn-in Milestone).

On meeting the 75% interest, Rumble shall make a payment of $500,000 Australian dollars to be apportioned 30% in cash and 70% in Rumble shares.

e) Free Carry. Blackham will be free carried to completion of a bankable feasibility study in relation to the Project, at which point if Blackham decides not to contribute in proportion to its interest in the Project, its interest will dilute by an industry standard formula, to a minimum 10% before reverting to a 2% net smelter royalty.

Derosa Project, Burkina Faso, West Africa (RTR earning 75%, CAY 25%)

The Derosa Project in the West African country of Burkina Faso covers an area of over 1,300 km² located 125 km Northwest of the capital city of Ouagadougou. The project area is North of the Reo Project operated by Middle Island Resources Ltd (ASX: MDI).

The Derosa Project consists of a joint venture and earn-in agreement with Canyon Resources Ltd (ASX: CAY). Under the terms of the Agreement between Canyon and Rumble, Rumble will earn between a 51% to 75% interest in Canyon Derosa upon the completion of certain payment and expenditure obligations which include issue to Canyon or its nominee of 1,500,000 Rumble shares and payment of USD$50,000, Rumble to comply with the terms of the purchase agreements with the vendors, Rumble to spend US$1.5 million on the Derosa Project by 31 September 2014 to earn a 51% interest in Canyon Derosa and Rumble to acquire a further 24% interest in Canyon Derosa by spending a further US$1,500,000 on the Derosa Project by 31 March 2017.

The project consists of six granted exploration permits which cover areas of greenstone and granite considered prospective for gold mineralisation. Interpretation of airborne magnetics data indicates the presence of large-scale north-south and northeast-southwest trending fault structures which have not been explored previously. Historic and active artisanal gold mining areas have been identified within the Derosa Project including the Bompela gold discovery identified by Rumble in May 2012.

The Bompela Prospect is located along a 30km long regional fault structure on the Bompela Permit which forms part of the Derosa Project. The Bompela Prospect contains 2 major areas of artisanal gold workings which include 3 open pits with the largest approximately 100m long and 50m wide. The 2 artisanal areas are 850m metres apart and occur along the same southwest-northeast trending regional fault.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

REVIEW OF OPERATIONS (CONT.)

The main artisanal open pit is a compelling target as it is a rare sight in West Africa with the artisanals generally following the quartz structures and only removing a minimal amount of dirt to maximise their efforts. The open pit and sampling completed by Rumble, suggests that the gold is not only in the quartz veins but also in the granite host rock which is important when looking for a deposit that could host bulk tonnage as well as suitable grade. Prior exploration by Rumble has included rock chip sampling, mapping, and a ground geophysical survey

A maiden drilling program consisting of 9 Reverse Circulation (RC) drill holes for 1,096 metres was completed in December 2013. The 9 holes were planned as a first phase to assess the artisanal mining areas, establish the depth of weathering and provide details on the geology of the area to aid future exploration. Two sections 100m apart in the Main artisanal site were completed and 2 holes 80m metres apart at the Western artisanal workings were drilled.

Hole ID	EOH Depth	From	To	Width	Aug/t
BRC001	150	14	22	8	3.34
BRC001	150	78	82	4	1.07
BRC001	150	98	102	4	1.95
BRC002	120	44	48	4	1.4
BRC005	120	42	46	4	1.48
BRC006	120	62	66	4	0.075

Table: Bompela RC Assay Results (>1g/t Au)

One section was drilled with an angled “scissor hole” oriented in an opposing direction to better define the shape and distribution of the mineralisation under the main artisanal working.

This drilling showed the following:

• Strong silica-potassic-pyrite alteration of the granite body

• All drill holes intersected gold mineralisation

• Drill results and surface sampling of the mineralisation in the open pit indicate that the continuity of gold mineralisation within the granite is good

• The gold mineralisation is contained within an intensely silicified and quartz veined, pyrite-bearing granite intrusion

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

REVIEW OF OPERATIONS (CONT.)

Beadell Project, Western Australia (RTR 80%, CXU 20%)

The Beadell Project is located 450km east of Newman in the Paterson Orogen of central north Western Australia. The Paterson Orogen is host to significant mineral deposits including the Telfer Gold Mine, Nifty Copper Mine and the Kintyre Uranium Deposit. The Proterozoic-aged Paterson Province is host to several significant operating mines and mineral deposits including the Telfer Gold Mine, Nifty Copper Mine, Maroochydore Copper Deposit and the Kintyre Uranium Deposit. Recent exploration success in the area has been announced by Encounter Resources Ltd (ASX: ENR) with significant copper sulphide intersections at the BM1 and BM7 Prospects and anomalous zinc sulphide intersections at the BM2 Prospect. Encounter Resources Ltd currently have an earn in JV agreement with major copper producer Antofagasta PLC whereby they may earn an initial 51% of the project by expenditure of $20 million over a 5 year period.

Initial interest in the Beadell area was based on the delineation of two airborne EM anomalies (Maxwell & Kaos Prospects) following completion of a Hoist EM survey in 2005 which was confirmed by a Federal Government funded Tempest EM survey in 2007. The southern anomaly (Maxwell) was drilled by Cauldron in 2010 with six RC drill holes completed and intersected significant disseminated base metal mineralisation including 8m @ 0.26% Cu and 28m @ 0.18% Pb & 0.20% Zn. This drilling highlighted the potential for disseminated Cu-Pb-Zn mineralisation in the area.

Maxwell is a large mineralised system with widths up to 80m with 5% to 35% sulphides present. A total of 235 metres of sulphide mineralisation has been intersected across the 996 metres of diamond drilling at the Maxwell prospect. The recent drill program has confirmed the targeted area is a large, tabular, high sulphide, anomalous zinc, lead and copper mineralised body displaying characteristics of a Sedimentary Exhalative (SEDEX) system. The drilling only targeted the upper portion (200m vertical depth) of the larger EM conductive plate which extends to at least a 500m vertical depth and is yet to be fully tested.

Following up on targets identified by downhole EM, dipole-dipole induced polarisation, gradient array induced polarisation and moving loop EM surveying Rumble completed a program of 16 RC drill holes, including 6 holes which had diamond tails. Five of the diamond holes were drilled at the Maxwell prospect and 1 was drilled at the Ninety Nine prospect for a total of 3,416 metres.

A dipole-dipole Induced Polarisation (IP) survey was completed in December 2013 at the Kaos and NinetyNine Prospects completing 4 lines for a total of 11.3 line km surveyed. These two prospects are markedly different targets. The Kaos Prospect is a 2.2 km long x 400m wide airborne EM anomaly whilst the NinetyNine Prospect is an IP chargeability high associated with a folded unit of highly magnetic banded iron formation. A single drill hole at Ninety-Nine in 2012 drilled through banded iron formation and potassic altered tonalities and gneisses but failed to intersect and explain the IP target. The drill hole returned some anomalous gold values, including 1m @ 0.75g/t and 2m @ 0.43g/t, and petrology identified the presence of the uranium mineral uranothorite, copper sulphide mineral chalcopyrite and cerium mineral synchysite

The Company has been awarded a $150,000 drilling grant for testing of the Kaos airborne EM anomaly under the State Government’s Exploration Incentive Scheme.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

REVIEW OF OPERATIONS (CONT.)

Ashburton Project

The Ashburton Project consists of exploration licences at both Paulsens South and at Boolaloo located approximately 150km Northwest of Paraburdoo in Western Australia. The project area is located in the Archaean to Proterozoic-aged Wyloo Dome, Ashburton basin and Boolaloo granite. Known mineralisation within the area includes the Paulsens Gold Mine, Mt Clement gold deposit, Belvedere Gold Prospect and Tombstone Copper Prospect. The Melrose Fault Zone along with a second major northwest trending fault zone, the Highway Fault Zone, both pass through the Paulsens South Project area.

The Paulsens South area consists of five granted exploration licences covering a combined area of 82km[2] . Two of the licences are subject to a joint venture agreement with Venture Minerals Ltd (ASX: VMS) whereby Rumble will earn a 51% interest by the expenditure of $500,000 by 1 July 2014 and a further 19% interest by the expenditure of a further $1 million by 1 July 2016. The other three licences are held 100% by Rumble. The project area is located in close proximity to the Paulsens Gold Mine operated by Northern Star Resources Ltd (ASX: NST).

Rumble completed an RC drilling program at Paulsens South of 17 holes drilled for 1,688 metres in October 2012. This drilling was located at targets on both the Melrose and Highway Fault Zones aimed at testing a combination of geophysical, structural and geochemical targets that are thought to be prospective for Paulsens style quartz-sulphide vein hosted gold mineralisation.

Four metre composite samples (444 samples in total) were submitted to the analytical laboratory in Perth for gold and base metal assay. Results from two holes returned low level base metal mineralisation with hole PSRC004 intersecting 4m @ 0.15% Zn & 0.05% Pb from 84m and hole PSRC006 intersecting 4m @ 0.13% Cu from 20m.

The Boolaloo area is located in close proximity to the Mt Clement Gold Deposit and consists of three granted exploration licences and two exploration licence applications covering a combined area of 514km2. The project overlies rocks of the Proterozoic Ashburton basin and the Boolaloo granite. Historic exploration at Boolaloo has identified several gold and base metal (Cu-Pb-Zn) prospects which the Company is targeting.

Leyland Project (RTR 100%)

Rumble applied for three exploration licences covering 1,305 km² in the Gibson Desert region of Western Australia in March 2013. This large strategic holding is adjacent to Corazon Mining Ltd’s (ASX: CZN) Top Up Rise Project.

Reprocessing of gravity data for the region has indicated that a significant portion of Rumble’s Leyland Project area is underlain by rocks that have an elevated gravity response. The Top Up Rise Project gravity anomaly appears to sit along a northeast – southwest trending gravity ridge which extends into Rumble’s

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

REVIEW OF OPERATIONS (CONT.)

Leyland Project at both the northern and southern ends. The elevated gravity response through the area suggests that underlying rock units may include mafic (amphibolite) and ultramafic rock types. The most significant gravity high on the Leyland Project is a circular feature of nearly 10km in diameter that is a possible intrusive body and is located in the northern project area on tenement E 80/4767.

The magnetics data also highlights a major regional fault structure that is adjacent to the main TUR Project gravity anomaly which is currently being drilled by Corazon. This North-Northeast trending fault structure runs through Rumble’s exploration licence application 80/4780 and has two significant magnetic highs along the fault that are a priority for further exploration.

Rumble is continuing work on the geophysics data and progressing approvals for ground exploration.

Canegrass Project (RTR 90%)

The Canegrass Project consists of one granted exploration licence, E29/783, located 100km North of Kalgoorlie in Western Australia covering a total area of 300km2.

Geologically, the project covers a portion of the Norseman - Wiluna Greenstone Belt in the Archaean Yilgarn Craton of Western Australia. More specifically the area consists of a sequence of mafic - ultramafic rocks, felsic volcanics, sediments and granite. Large fault structures are interpreted to separate the granite from the mafic - ultramafic sequences on the western and eastern sides of the project area. The Canegrass Project has favourable geology and structural settings to host significant gold mineralisation and is also prospective for nickel and base metal mineralisation.

Exploration undertaken at the project during the year consisted of a first pass auger geochemistry program of 652 samples taken along 23 separate east-west sample lines. The program covered approximately 1/3 of the project area and assay results have identified several areas of anomalism. Sample results identified an area of high copper anomalism in the southern project returning a peak assay of 3,080ppm Cu. Sampling in the area is currently on lines 800m apart and the anomaly is currently confined to a single sample line.

Three broad areas of low level gold anomalism (Peak 67ppb Au) have been identified on the western side of the program area. All three of these anomalous areas are striking northwest with the orientation of the stratigraphy and extend for 1.6km, 1.4km and 1.4km in length.

Competent Persons Statement – Fraser Range, Derosa and Beadell Projects

The information in this report that relates to Exploration Results is based on information compiled by Mr Terry Topping, who is a Member of the Australasian Institute of Mining & Metallurgy and the Australian Institute of Geoscientists. Mr Topping is a fulltime employee of Rumble Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Topping consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

INTERIM FINANCIAL REPORT

DIRECTORS' REPORT

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Terry Topping, who is a Member of the Australasian Institute of Mining & Metallurgy and the Australian Institute of Geoscientists. Mr Topping is a fulltime employee of Rumble Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Topping consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

SUBSEQUENT EVENTS

On 13 February 2014, the Group announced that it had entered into an earn in agreement with Blackham Resources Limited to acquire up to 75% of the Zanthus Project, located in the Fraser Range.

The Group has initially acquired a 20% interest through the issue of 2,000,000 ordinary shares. The Group can acquire a 50% interest through spending $1,000,000 on exploration over the first 2 years from the date of formal agreement and making payment of $250,000 to be apportioned 30% in cash and 70% in ordinary shares. The Group can then acquire a 75% interest through spending an additional $1,500,000 on exploration in years 3 and 4 from the date of formal agreement and making payment of $500,000 to be apportioned 30% in cash and 70% in ordinary shares.

On 18 February 2014, the Group announced that it has received a refund of approximately $430,000 from the ATO for the expenditure on research and development in the 2013 financial year.

On 28 February 2014, the Group issued 500,500 ordinary shares and 250,250 options exercisable at $0.08 on or before 30 June 2015 in lieu of cash payment for exploration services received.

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

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor's independence declaration under s307c of the Corporations Act 2001 for the half-year ended 31 December 2013 is set out on page 22.

This report is signed in accordance with a resolution of the Board of Directors.

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_____ Terence Topping Executive Director

Perth Dated: 14[th] March 2014

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the Half-Year Ended 31 December 2013

Note Revenue 2 Administration expenses Compliance and regulatory expenses Employee benefits expense Exploration expenditure written off Occupancy costs Share-based payments Travel and accommodation Net gain/(loss) arising on financial assets held at fair value Loss before income tax expense Income tax expense Loss from continuing operations Other comprehensive income Total comprehensive income attributable to members of the parent entity Basic loss per share (cents per share)	31 December 2013 31 December 2012 $ $ 441,126 214,927 (75,069) (91,465) (163,210) (133,081) (204,870) (138,255) (1,139) (212,242) (58,022) (31,900) (202,413) (178,821) (23,640) (39,323) 10,918 (21,752)
	(276,319) (631,912) - -
	(276,319) (631,912)
	- - (276,319) (631,912)
	(0.42) (1.79)

The accompanying notes form part of this financial report.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2013

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables 3 Other financial assets Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Plant and equipment Exploration and evaluation expenditure 4 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions 5 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 6 Reserves Accumulated losses TOTAL EQUITY	Consolidated Consolidated 31 December 2013 30 June 2013 $ $ 164,651 259,957 470,359 108,565 138,500 139,383 13,843 23,688
	787,353 531,593
	37,350 46,720 4,545,819 3,785,578
	4,583,169 3,832,298
	5,370,522 **4,363,891 **
	393,275 383,449 66,652 -
	459,927 383,449
	459,927 383,449
	4,910,595 3,980,442
	7,429,510 6,429,823 908,862 702,077 (3,427,777) (3,151,458)
	4,910,595 3,980,442

The accompanying notes form part of this financial report.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Half-Year Ended 31 December 2013

	Issued	Reserves	Accumulated	Total
	Capital		Losses
	$	$	$	$
Balance at 1 July 2012	4,054,424	218,460	(944,076)	3,328,808
Comprehensive income
Loss for the period	-	-	(631,912)	(631,912)
Total comprehensive income	-	-	(631,912)	(631,912)
Transactions with owners, in their capacity
as owners, and other transfers
Shares issued during the period	2,016,840	-	-	2,016,840
Transaction costs relating to share issues	(105,275)	-	-	(105,276)
Option reserve on recognition of share based payment	-	237,737	-	237,737
Total transactions with owners and other transfers	1,911,565	237,737	-	2,149,301
Balance at 31 December 2012	5,965,989	456,197	(1,575,988)	4,846,198
Balance at 1 July 2013	6,429,823	702,077	(3,151,458)	3,980,442
Comprehensive income
Loss for the period	-	-	(276,319)	(276,319)
Total comprehensive income	-	-	(276,319)	(276,319)
Transactions with owners, in their capacity
as owners, and other transfers
Shares issued during the period	1,115,408	-	-	1,115,408
Transaction costs relating to share issues	(115,721)	-	-	(115,721)
Option reserve on recognition of share based payment	-	206,785	-	206,785
Total transactions with owners and other transfers	999,687	206,785	-	1,206,472
Balance at 31 December 2013	7,429,510	908,862	(3,427,777)	4,910,595

The accompanying notes form part of this financial report.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Half-Year Ended 31 December 2013

CASH FLOWS FROM OPERATING ACTIVITIES Interest received Other income received Payments to suppliers and employees Exploration and evaluation expenditure Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment Purchase of financial assets Proceeds from sale of financial assets Purchase of exploration assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Proceeds from issue of options Payment of capital raising costs Net cash provided by financing activities Net decrease in cash held Cash and cash equivalents at beginning of period Cash and cash equivalents at end of reporting period	31 December 2013 31 December 2012 $ $ 3,555 13,317 30,000 2,775 (477,601) (554,034) (422,874) (1,436,415)
	(866,920) (1,974,357)
	- (33,009) - (20,000) 17,800 125,669 (61,993) (435,344)
	(44,193) (362,684)
	884,030 1,754,340 - 3,084 (68,223) (105,275)
	815,807 1,652,149
	(95,306) (684,892) 259,957 1,621,773
	164,651 936,881

The accompanying notes form part of this financial report.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

These interim financial statements constitute a general purpose financial report and have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. Compliance with AASB134 ensures compliance with IAS134: Interim Financial Reports. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended 30 June 2013.

These interim financial statements were approved by the Board of Directors on 14 March 2014.

The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company’s 2013 annual financial report for the financial year ended 30 June 2013, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to their operations and effective for the current half year. New and revised Standards and amendments thereof and Interpretations effective for the current half-year that are relevant to the Group include:

• AASB 10 ‘Consolidated Financial Statements’ and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’

• AASB 11 ‘Joint Arrangements’ and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’

• AASB 12 ‘Disclosure of Interests in Other Entities’ and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’

• AASB 127 ‘Separate Financial Statements’ (2011) and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards’

• AASB 128 ‘Investments in Associates and Joint Ventures’ (2011) and AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 13 ‘Fair Value Measurement’ and AASB 2011-8 ‘Amendments to Australian Accounting Standards arising from AASB 13’

• AASB 119 ‘Employee Benefits’ (2011) and AASB 2011-10 ‘Amendments to Australian Accounting Standards arising from AASB 119 (2011)’

• AASB 2012-2 ‘Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities’

• AASB 2012-5 ‘Amendments to Australian Accounting Standards arising from Annual Improvements 2009–2011 Cycle’

• AASB 2012-10 ‘Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments’

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

The above standards have extensive disclosure requirements, however these do not effect this half year financial report other than as disclosed in Note 8: Financial Instruments.

The adoption of the above standards have not had a material impact on this half year financial report.

Going concern

The half-year financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Group incurred a loss for the half-year of $276,319 (31 December 2012: $631,912) and net operating cash outflows of $866,920 (31 December 2012: $1,974,357).

The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds by raising capital from equity markets and managing cashflow in line with available funds. These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Group to continue as a going concern. In the event the above matters are not achieved, the Group will be required to raise funds for working capital from debt or equity sources.

The directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12 month period from the date of signing this financial report.

Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Group's history of raising capital to date, the directors are confident the Group can raise additional funds as and when they are required.

Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

2.	REVENUE
		31	December 2013	31 December 2012
			$	$
	Interest received		4,563		28,817
	Profit on sale of financial assets		6,000		51,335
	Research and development refund		430,563		-
	Grant income		-		133,250
	Other income		-		1,525
			441,126		214,927
3.	TRADE AND OTHER RECEIVABLES
		31	December 2013	30 June	2013
			$	$
	GST Receivable		38,788		39,804
	Grant receivable		-		30,000
	Research and development refund receivable		430,563		-
	Other receivables		1,008		38,761
			470,359		108,565
4.	EXPLORATION AND EVALUATION EXPENDITURE
	Exploration expenditure capitalised		4,545,819	3,785,578
	Movement during the period/year
	Balance at the beginning of the year		3,785,578	1,861,463
	Additions		761,380	3,071,609
	Impairment		(1,139)	(1,147,494)
	Exploration expenditure capitalised		4,545,819	3,785,578
5.	PROVISIONS
	Provision for employee entitlements		66,652		-

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

6. ISSUED CAPITAL

(a) Issued and paid up capital Ordinary shares fully paid of no par value (b) Movement in ordinary shares on issue Balance at 1 July 2013 Issue of shares on 10 July 2013 Issue of shares on 12 August 2013 Issue of shares on 5 September 2013 Issue of shares on 19 September 2013 Issue of shares on 17 December 2013 Issue of shares on 18 December 2013 Transaction costs arising from issue of shares Balance at 31 December 2013	31 December 2013 30 June 2013 $ $ 7,429,510 6,429,823
	Number $ 52,178,361 6,429,823 50,000 1,750 680,000 30,600 20,898,951 940,453 400,000 16,800 1,707,316 76,829 1,088,352 48,976 - (115,721)
	77,002,980 7,429,510

(c) Share options

At the end of the period, the following options over unissued ordinary shares were outstanding:

6,600,000 unlisted options exercisable at $0.25 on or before 31 July 2014 12,258,333 listed options exercisable at $0.25 on or before 31 July 2014 3,600,000 unlisted options exercisable at $0.35 on or before 31 October 2015 6,926,996 listed options exercisable at $0.35 on or before 31 October 2015 4,500,000 unlisted options exercisable at $0.45 on or before 31 October 2015 20,327,852 listed options exercisable at $0.08 on or before 30 June 2015 1,707,316 unlisted options exercisable at $0.041 on or before 17 December 2016

17

RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

7. OPERATING SEGMENTS

(a) Segment performance Period Ended 31 December 2013 Revenue Interest revenue Profit on sale of financial assets Unrealised profit on financial assets Research and development grant Total segment revenue Reconciliation of segment result to net loss before tax Unallocated revenue Total revenue Segment net profit / (loss) before tax Reconciliation of segment result to net loss before tax Unallocated items: - Administration expenses - Compliance and regulatory expenses - Employee Benefits Expense - Share Based Payments - Other expenses Net loss before tax from continuing operations Period Ended 31 December 2012 Revenue Interest revenue Profit on sale of financial assets Other Revenue Total segment revenue Reconciliation of segment result to net loss before tax Unallocated revenue Total revenue Segment net profit / (loss) before tax Reconciliation of segment result to net loss before tax Unallocated items: - Administration expenses - Compliance and regulatory expenses - Employee Benefits Expense - Share Based Payments - Other expenses Net loss before tax from continuing operations	Exploration $ Treasury $ - - - 430,563 4,563 6,000 10,918 -	Total Operations $ 4,563 6,000 10,918 430,563
	430,563 21,481	452,044
	- -	-
	430,563 21,481	452,044
	429,424 **21,481 **	450,905
	- - - 28,817 51,335 134,775	(75,069) (163,210) (204,870) (202,413) (81,662)
		(276,319)
		28,817 51,335 134,775
	- 214,927	214,927
	- -	-
	- 214,927	214,927
	(212,242) 214,927	2,685
		(91,465) (133,081) (138,255) (178,821) (92,975)
		(631,912)

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

7. OPERATING SEGMENTS (CONT.)

(b) Segment assets As at 31 December 2013 Segment assets Reconciliation of segment assets to total assets Unallocated items: - Trade and other receivables - Other assets - Plant and equipment Total assets from continuing operations As at 30 June 2013 Segment assets Reconciliation of segment assets to total assets Unallocated items: - Trade and other receivables - Other assets - Plant and equipment Total assets from continuing operations	Exploration $ Treasury $ 4,545,819 303,151	Total Operations $ 4,848,970
	3,785,578 399,340	470,359 13,843 37,350
		5,370,522
		4,184,918
		108,565 23,688 46,720
		**4,363,891 **

8. FINANCIAL INSTRUMENTS

The Group’s financial instruments consist of trade and other receivables and trade and other payables. These financial instruments are measured at amortised cost, less any provision for non-recovery. The carrying amounts of the financial assets and liabilities approximate their fair value.

The Group also holds held for trading financial assets which are measured at fair value based on the quoted bid price on the ASX and are considered as level 1 in the fair value hierarchy.

9. SHARE BASED PAYMENTS

The following share based payments were issued during the period:

Ordinary Shares
Grant Date	Number Granted Fair Value per Share		Number Vested
10 July 2013	50,000	$0.035	50,000
5 September 2013	1,933,829	$0.045	1,933,829
19 September 2013	400,000	$0.042	400,000
17 December 2013	1,707,316	$0.045	1,707,316
18 December 2013	1,088,352	$0.045	1,088,352

The fair value of ordinary shares issued was determined by reference to market price at grant date.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the Half-Year Ended 31 December 2013

9. SHARE BASED PAYMENTS (CONT.)

Share Options

Share Options
Grant Date	Number	Fair Value	Exercise Price	Expiry Date	Number
	Granted	per Option	Per Option		Vested
15 July 2013	1,000,000	$0.007	$0.08	30 June 2015	1,000,000
19 September 2013	3,024,515	$0.007	$0.08	30 June 2015	3,024,515
21 November 2013	350,000	$0.01	$0.08	30 June 2015	350,000

The fair value of share options issued was determined by reference to market price at grant date.

10. EVENTS SUBSEQUENT TO REPORTING PERIOD

On 13 February 2014, the Group announced that it had entered into an earn in agreement with Blackham Resources Limited to acquire up to 75% of the Zanthus Project, located in the Fraser Range.

The Group has initially acquired a 20% interest through the issue of 2,000,000 ordinary shares. The Group can acquire a 50% interest through spending $1,000,000 on exploration over the first 2 years from the date of formal agreement and making payment of $250,000 to be apportioned 30% in cash and 70% in ordinary shares. The Group can then acquire a 75% interest through spending an additional $1,500,000 on exploration in years 3 and 4 from the date of formal agreement and making payment of $500,000 to be apportioned 30% in cash and 70% in ordinary shares.

On 18 February 2014, the Group announced that it has received a refund of approximately $430,000 from the ATO for the expenditure on research and development in the 2013 financial year.

On 28 February 2014, the Group issued 500,500 ordinary shares and 250,250 options exercisable at $0.08 on or before 30 June 2015 in lieu of cash payment for exploration services received.

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

11. CONTINGENT LIABILITIES

There has been no other change in contingent liabilities since the last annual reporting period.

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RUMBLE RESOURCES LIMITED AND CONTROLLED ENTITIES

DIRECTORS' DECLARATION

For the Half-Year Ended 31 December 2013

The Directors of the Group declare that:

1. The financial statements and notes, as set out on pages 10 to 20 are in accordance with the Corporations Act 2001 and:

2. (a) comply with Accounting Standard AASB 134: Interim Financial Reporting; and

3. (b) give a true and fair view of the Group’s financial position as at 31 December 2013 and its performance for the interim period ended on that date.

4. In the Directors’ opinion there are reasonable grounds to believe that the Group 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.

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________ Terence Topping Executive Director

PERTH Dated this 14[th] March 2014

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To the Board of Directors

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As lead audit director for the review of the financial statements of Rumble Resources Limited 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:

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• the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

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• any applicable code of professional conduct in relation to the review.

Yours faithfully

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BENTLEYS
Chartered Accountants
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DOUG BELL CA
Director
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DATED at PERTH this 14[th] day of March 2014

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We have reviewed the accompanying half-year financial report of Rumble Resources Limited (“the Company”) and its Controlled Entities (“the Consolidated Entity”) which comprises the condensed consolidated statement of financial position as at 31 December 2013, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other selected explanatory information and the directors’ declaration of the Consolidated Entity, comprising the Company and the entities it controlled during the half-year.

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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 gives a true and fair view and is free from material misstatement, whether due to fraud or error.

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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 the Company, 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.

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

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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 Rumble Resources Limited 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 the Corporations Regulations 2001 .

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Without qualifying our conclusion, we draw attention to Note 1 in the half-year financial report which indicates that the Consolidated Entity incurred a net loss of $276,319 during the period ended 31 December 2013. This condition, along with other matters as set forth in Note 1, indicates the existence of a material uncertainty which may cast significant doubt about the ability of the Consolidated Entity to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the half- year financial report.

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BENTLEYS Chartered Accountants

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DOUG BELL CA Director

DATED at PERTH this 14[th] day of March 2014