SUREFIRE RESOURCES NL — Annual Report 2007

Sep 2, 2007

Appendix 4E

Preliminary final report

1. Company details

GENESIS BIOMEDICAL LIMITED

ABN	Financial year ended ('current period')	Financial year ended ('previous period')
48 083 274 024	30 JUNE 2007	30 JUNE 2006

2. For announcement to the market

.

2.1 Revenues from operations	DOWN	10%	to	$103,708
2.2 Loss from operations after taxattributable to members	UP	2%	to	($1,168,047)
2.3 Net loss for the period attributable tomembers	UP	2%	to	($1,168,047)
2.4 Dividends	Amount per security		Franked amount persecurity
Final dividend	N/AN/A
Interim dividend	N/A			N/A
2.5 Record date for determining entitlements to thedividend	N/A
2.6 Brief explanation of any of the figures reported above necessary to enable the figures to be understood.
Refer Review of Operations 14.2

	Current period - $A	Previous corresponding
		period - $A
Revenues from operations	103,708	115,261
Expenses from operations	(1,271,755)	(1,260,362)
Loss from operations before tax	(1,168,047)	(1,145,101)
Income tax	0	0
Loss from operations after tax	(1,168,047)	(1,145,101)
Net loss	(1,168,047)	(1,145,101)
Net loss attributable to outside equity interests	0	0
Net loss for the period attributable to members	(1,168,047)	(1,145,101)

3. Condensed consolidated Income Statements

Notes to condensed consolidated Income Statement

3.1 Revenue and expenses from continuing operations

	Current period - $A	Previouscorresponding period -$A
Revenue :
Interest revenue	103,708	82,257
Other income:
Rental Income – sub leased premises	0	33,003
Details of relevant expenses:
Employee benefits	425,241	124,656
Consultants	230,543	291,686
Administration	34,860	32,822
Insurance	53,093	51,173
Professional Services	101,492	187,453
Other expenses	167,929	105,031
Travel	12,581	81,666

3.3 Extraordinary Items

N/A

3.4 Other Disclosures in accordance with AASB 101

	Current period - $A	Previouscorresponding period -$A
Net gain/(loss) on disposal of non-currentassets	0	0
Netincrement/(decrement)arisingfromrevaluation of non-current assets	0	0
Net revenue/(expense) since the beginning ofthe reporting period resulting from deductionsfrom the carrying amounts of assets:-depreciation of non-current assets-doubtful and bad debts	33,7420	00

4. Condensed consolidated Balance Sheets

	At end of current	As shown in last annual
	period $A	report $A
Current assets
Cash and cash equivalents	1,195,136	2,196,303
Trade and other receivables	0	23,685
Prepayments	60,372	0
Other	43,374	41,480
Total current assets	1,298,882	2,261,478
Non-current assets
Property, plant and equipment	145,681	37,228
Total non-current assets	145,681	37,228
Total assets	1,444,563	2,298,766
Current liabilities
Trade and other payables	186,287	116,315
Provisions	27,281	0
Total current liabilities	213,568	116,315
Non current liabilities	0	0
Total liabilities	213,568	116,315
Net assets	1,230,995	2,182,451
Equity
Capital/contributed equity	15,531,985	15,531,985
Share based payment reserve	216,590	0
Accumulated losses	(14,517,581)	(13,349,534)
Equity attributable to members of the	1,230,995	2,182,451
parent entity
Total equity	1,230,995	2,182,451

5. Condensed consolidated Cash Flow statements

	Current period $A	Previous
		corresponding period
		$A
Cash flows related to operating activities
Receipts from customers	16,573	9,318
Payments to suppliers and employees	(1,090,827)	(827,945)
Interest received	103,708	82,257
Interest and other costs of finance paid	(13,371)	0
Net operating cash flows	(983,917)	(736,370)
Cash flows related to investing activities
Purchase of fixed assets	(881)	(37,288)
Net investing cash flows	(881)	(37,288)
Cash flows related to financing activities
Loans made to third party	0	(352,521)
Repayment of borrowings	(16,379)	0
Proceeds from issue of ordinary shares	0	2,259,000
Net financing cash flows	(16,379)	1,906,479
Net increase (decrease) in cash held	(1,001,177)	1,132,821
Cash at beginning of period	2,196,313	1,063,492
Cash at end of period	1,195,136	2,196,313

5.1 Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows.

N/A

5.2 Reconciliation of cash and cash equivalents

Reconciliation of cash at the end of the period (as	Current period $A	Previous
shown in the consolidated statement of cash flows) to		corresponding
the related items in the accounts is as follows.		Period - $A
Cash on hand and at bank	1,195,136	2,196,313
Total cash at end of period
	1,195,136	2,196,313

5.3. Reconciliation of profit from ordinary activities after income tax to net cash inflow from operating activities

Reconciliation of cash flows from operations with	Current period $A	Previouscorresponding period$A
operating loss after income tax
Operating (loss) after income tax	(1,168,047)	(1,145,101)
Non cash flows in loss
Depreciation expense	33,742	0
Employee benefit expense	216,590	0
Changes in assets and liabilities(Increase) decrease in receivablesIncrease (decrease) in allowance for nonrecovery of receivables(Increase) decrease in other assets(Increase) decrease in prepayments and depositsIncrease (decrease) in creditors and accrualsIncrease (decrease) in provisions	13,8790(1,894)(60,372)(40,965)23,150	(10,536)352,521093,30145,783(72,338)
Net cash inflow from operating activities	983,917	736,370

6. Dividends

6.1 Amount per security

	Amount persecurity	Frankedamount persecurity at30% tax	Amount persecurity offoreign sourcedividend
Final dividend:Current year	- ¢	- ¢	-¢
Previous year	-¢	- ¢	-¢
Interim dividend: Current year	- ¢	- ¢	-¢
Previous year	- ¢	- ¢	-¢

6.2 Total dividend per security (interim plus final)

	Current year	Previous year
Ordinary securities	- ¢	- ¢

7. Dividend Reinvestment Plans

At 30 June 2007 there was no dividend reinvestment plan in operation for Genesis Biomedical Limited.

Any other disclosures in relation to dividends. N/A

8. Consolidated retained profits

	Current period - $A	Previous corresponding
		period - $A
Retained profits (accumulated losses) at the
beginning of the financial period	(13,349,534)	(12,204,433)
Net profit (loss) attributable to members	(1,168,047)	(1,145,101)
Dividends and other equity distributions paid	0	0
Retained profits (accumulated losses) at end of
financial period	(14,517,581)	(13,349,534)

9. NTA backing per ordinary security

Current period	Previous correspondingPeriod
$0.007	$0.016

10. Control gained over entities having material effect

Name of entity (or group ofentities)	N/A
Consolidated profit (loss) from ordinary activities andextraordinary items after tax of the controlled entity (orgroup of entities) since the date in the current period onwhich control was +acquired		$
Date from which such profit has been calculated
Profit (loss) from ordinary activities and extraordinaryitems after tax of the controlled entity (or group of entities)for the whole of the previous corresponding period		$

10.1 Loss of control of entities having material effect

Name of entity (or group of entities)

Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control

N/A

Date to which the profit (loss) in item 14.2 has been calculated

Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period

Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

11. Details of associates and joint venture entities

N/A

12. Other significant information

N/A

13. Accounting standards used in foreign entities

N/A

$
$
$

14. Commentary on results for the period

14.1 Earnings per security (EPS)

	Current period	PreviouscorrespondingPeriod
Basic EPS	($0.70)	($0.67)
Diluted EPS	($0.70)	($0.67)

14.2 Review of Operations

The year ended 30 June 2007 was a year of continuing activity for the Company. Review and evaluation of existing commercial activities as well as the identification and assessment of new opportunities for the Company have been the focus of the year.

Manuwatu Biotechnology Investment Limited (MBIL)

As previously disclosed, MBIL is awaiting the finalization of a capital raising. During the course of MBIL's proposed capital raising, Genesis has negotiated a withdrawal from it's investment in MBIL at the agreed amount of 85% of funds invested plus interest on those funds from July 2006 to settlement date of 31 August 2007, being an amount of A$ 325,481.25.

Exclusive Agreement to Licence and develop drug for Sepsis

On 16th March, the Company announced that they had signed a term sheet with The University of Western Australia (UWA) to exclusively license-in and develop a novel drug for sepsis.

Sepsis is caused by an over reaction to infection that can result in organ failure and death. Severe sepsis is one of the most significant challenges in critical care. Each year, more than 750,000 people in the U.S. will develop severe sepsis, and more than 215,000 will die from the condition. Treating patients with severe sepsis costs U.S. hospitals nearly $17 billion a year.

Genesis will fund research at UWA undertaken at the School of Medicine and Pharmacology in pneumonia and infectious diseases. The research program is based on an established drug that has been shown by UWA researchers to have new promise in sepsis treatment. The research will involve a proof-of-concept study in established animal models of sepsis and if successful will move to clinical trials. Genesis will pay UWA milestone payments and 10% royalties on income arising from license or sale of the resulting drugs.

The agreement contains immediate down payment of $60,000. Should the project continue to meet with success, as determined by Genesis, the budget for the Preclinical and Phase 1 stages is approximately $270,000 and there is an additional milestone payment of $25,000 payable upon the commencement of Phase I. A further milestone payment of $50,000 is to be paid upon commencement of Phase II and a further investment of $2.5 million is estimated for completion of this stage.

If the project continues beyond the proof of concept stage, a consultancy agreement will be executed with two specialists working on the project. The consultancy agreements will include $15,000 per annum and 500,000 Genesis options with an exercise price of AUD $0.03 and an expiry date of November 2010. The options will be granted as follows: 100,000 upon successful completion of preclinical development; 150,000 upon successful completion of Phase I development; and 250,000 upon successful completion of Phase II development.

The company will continue to seek in addition to specific sectors, broad based investment opportunities that have the potential for enhanced shareholder wealth.

15. This report is based on + accounts to which one of the following applies. accounts have been

+The
The +

+Theaccountshavebeenaudited.	+Theaccountshavebeensubject to review.
The +accounts are in theprocess of being audited orsubject to review.	accounts have notThe +yetbeen audited or reviewed.

16. If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, details are described below

N/A

17. If the accounts have been audited or subject to review and are subject to dispute or qualification, details are described below

N/A

............................................……... Company Secretary – David J. Semmens