SPARC TECHNOLOGIES LIMITED — Interim / Quarterly Report 2003

Mar 5, 2003

Newland Resources Ltd $ACN$ 009 092 068

Half-Year Accounts

for the

Half-Year ended 31 December 2002

ACN 009 092 068

Directors' Report

The Directors present their report on the consolidated entity consisting of Newland Resources Ltd and the entities it controlled at the end of or during the half-year ended 31 December 2002.

	The names and particulars of directors of the company in office on the day this report is made out are:
Name	Particulars
Kevan L Ashworth	Consultant geologist with wide experience in Europe, Middle East, Malaysiaand Latin America. Non-executive director
Lindsay A Colless	Chartered Accountant with many years experience in the minerals and oilindustry. Director and/or secretary of a number of listed explorationcompanies. Non-executive director.
Peter L Munachen	Chartered Accountant with many years experience in the resources industryin Australia. Non-executive director.

Review Of Operations

The review of the company's operations during the half-year is as follows:

	Segment Revenue	Segment result
Agriculture Eastern Europe
Other	305,913	(418,884)
	305,913	(418, 884)
Unallocated expenses
Abnormal item
Operating profit (loss)		(418, 884)
Income Tax
Operating profit (loss) for half-year		(418.884)

Exploration activities

The company disposed of its interest in agricultural development in Eastern Europe prior to 30 June 2002. The Company has a significant investment in a financial services business in UK listed on the AIM Board of London Stock Exchange and a further significant investment in the management company of a resource investment trust listed on the full board of London Stock Exchange. There remains a residual interest in a mining operation in Oueensland.

Changes In State Of Affairs

During the half year there was no significant change in the company's state of affairs other than that referred to in the half-year accounts or notes thereto.

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

L A Colless Director

Dated this 28th day of February 2003.

Independent Review Report To The Members

Scope

We have reviewed the financial statements of Newland Resources Ltd for the half-year ended 31 December 2002 as set out on pages 4 to 8. The company's directors are responsible for the preparation of the financial report, which includes the consolidated financial statements of the consolidated entity comprising the company and the entities it controlled at the end of or during the half-year.

We have performed an independent review of the half-year financial report in order for the company to lodge the half-year financial report with the Australian Securities and Investments Commission.

Our review has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the half-year financial report is free of material misstatement. The review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data.

These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. This review was performed in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB1029:Interim Financial Reporting, and other mandatory professional reporting requirements and the Corporations Act, 2001, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of the company 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 2002 $(i)$ and of its performance for the half-year ended on that date; and
  • $(ii)$ comply with Accounting Standard AASB1029: Interim Financial Reporting and the Corporations Regulations; and
• $(b)$ other mandatory professional reporting requirements.

Rothsay Chartered Accountants

Graham R Swan Partner Dated this 3rd day of March 2003

The liability of Rothsay Chartered Accountants is limited by, and to the extent of, the Accountants' Scheme under the Professional Standards Act 1994 (NSW).

Directors' Declaration For The Half-Year Ended 31 December 2002

The directors declare that:

• The attached financial statements and notes thereto comply with Accounting Standards; $(a)$
• $(b)$ The attached financial statements and notes thereto give a true and fair view of the financial position and performance of the consolidated entity;
• $(c)$ In the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act. 2001: and
• In the directors' opinion there are reasonable grounds to believe that Newland Resources Ltd will $(d)$ be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors pursuant to $s$ 303(5) of the Corporations Act, 2001.

On behalf of the Directors

L A Colless Director

PERTH, 28th day of February 2003

Newland Resources Ltd Condensed Consolidated Performance

Consolidated

Statement of Financial

Consolidated

For The Half-Year Ended 31 December 2002

	Half-year		Half-year
	ended		ended
	31 Dec 2002		31 Dec 2001
	Ŝ		S
Revenue from ordinary activities	305,913		914,531
Expenses from ordinary activities	(724, 797)		(2,079,053)
Loss from ordinary activities before income taxIncome tax	(418, 884)		(1, 164, 522)
Loss from ordinary activities for half-yearMinority interests	(418, 884)		(1, 164, 522)
	(418, 884)		(1, 164, 522)
Accumulated losses brought forward	(7,635,116)		(6,880,486)
Accumulated losses at end of half-year	(8,054,000)		(8,045,008)
Earnings per share - basic	( $0.005)ConsolidatedHalf-yearended31 Dec 2002S	AnnualReport30 Jun 2002$	($0.018)ConsolidatedHalf-yearended31 Dec 2001S
Consolidated Statement of
Financial Position
As at 31 December 2002
Current Assets
Cash	304,322	95,143	18,330
Receivables	383,453	781,379	354,316
Inventories			778,073
Total Current Assets	687,775	876,522	1,150,719
Non-Current Assets
Investments	6,823,198	7,135,146	7,259,438
Property, plant & equipment			533,141
Total Non-Current Assets	6,823,198	7,135,146	7,792,579
Total Assets	7,510,973	8,011,668	8,943,298
Current Liabilities
Accounts payableBorrowings	75,052	157,018	350,0061,478,859
Total current liabilities	75,052	157,018	1,828,865
Total Liabilities	75,052	157,018	1,828,865
		7,854,650	7,114,433
Net Assets	7,435,921
Shareholders' Equity
Share capital	15,471,352	15,471,197	15,140,872
Reserves	11,000	11,000	11,000
Share applications in advance	7,569	7,569	7,569
Accumulated losses	(8,054,000)	(7,635,116)	(8,045,008)
	7,435,921	7,854,650	7,114,433
Minority interests
Total Shareholders' Equity	7,435,921	7,854,650	7,114,433

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

Consolidated Statement of Cash Flows

For The Half-Year Ended 31 December 2002

	Current	Corresponding
	Half Year	Half-year
	S	S
Cash Flows Related To Operating Activities
Revenue from customers	697,316	913,819
Payments to suppliers	(289, 493)	(999, 404)
Interest and other items of a similar nature received	2,301	712
Net Operating Cash Flows	410,124	(84, 873)
Cash Flows Related To Investing Activities
Expenditure on investments	(201, 100)	(155, 110)
Net Investing Cash Flows	(201, 100)	(155, 110)
Cash Flows Related To Financing Activities
Repayment of borrowings		(139, 824)
Proceeds from share issues	155	251,100
Net Financing Cash Flows	155	111,276
Net Increase (Decrease) In Cash Held	209,179	(128, 707)
Cash at beginning of half year	95,143	146,984
Foreign exchange adjustment		53.
Cash At End Of Half Year	304,322	18,330

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

Notes to and Forming Part of the Financial Statements

For the Half-Year ended 31 December 2002

1. Basis of Preparation of Half-Year Financial Statements

These general purpose consolidated financial statements for the half-year ended 31 December 2002 have been prepared in accordance with Accounting Standard AASB 1029:Interim Financial Reporting, and other mandatory professional reporting requirements. It is recommended that this report should be read in conjunction with the Annual Report for the year ended 30 June 2002 and any public announcements made by Newland Resources Ltd during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act, 2001.

The accounting policies have been consistently applied with those of the previous financial year and corresponding half-year.

For the purpose of preparing the half-year financial statements, the half-year has been treated as a discrete reporting period.

Notes to and Forming Part of the Financial StatementsFor the Half-Year ended 31 December 2002

2. Revenue and Expense

Operating profit before income tax is arrived at after:

	Currenthalf-year	PreviousCorrespondinghalf-yearS
crediting interest as revenue	2,301	712
b) charging interest as expense		97,125
depreciation		103,385
3. Reconciliation of cashFor the purposes of this statement of cash flows, cash includesCash at the end of the half-year as shown in the statement of cash flowsis reconciled to the related items in the accounts as follows:
Cash on hand and at bank	304,322	18,330
	304.322	18.330

4. Issued and quoted securities at end of current half-year

Category of Securities	NumberIssued	NumberQuoted	UncalledAmountCents	Paid-UpValueCents
Ordinary Shares:	78,777,571	78,777,571
				۰
Of which issued during half-year	775	775	۰.	3
Options:			ExercisePrice	ExpiryDate
	14,082,333	Nil	$0.50	31/07/03
	1,550,000	Nil	$0.30	31/08/03
	20,000	Nil	$0.50	30/09/04
	1,000,000	Nil	0.50	09/12/04
	500,000	Nil	0.50	12/12/04
	1,350,000	Nil	0.50	16/12/04
	350,000	Nil	0.80	01/02/05
	100,000	Nil	0.80	06/02/05
	500,000	Nil	$0.80	31/05/04
	500,000	Nil	$1.00	31/05/05
Of which exercised during half-year	775	775	$0.20	31/10/02
Expired during half-year	19,914,743	19,914,743	$0.20	31/10/02

Notes to and Forming Part of the Financial StatementsFor the Half-Year ended 31 December 2002

5. Earnings per share

		Previous
	Current	Corresponding
	half-year	half-year
Basic earnings per share	(0.005)	(0.02)
The weighted average number of ordinary shares outstanding during the
year used in the calculation of basic earnings per share	78,777,054	64,371,058
Diluted earnings per share are not materially different from basic
earnings per share and has therefore not been disclosed.