Annual Financial Report 2010

ABN 48 083 274 024

TABLE OF CONTENTS

CORPORATE DIRECTORY	2
DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	18
STATEMENT OF COMPREHENSIVE INCOME	19
STATEMENT OF FINANCIAL POSITION	20
STATEMENT OF CHANGES IN EQUITY	21
STATEMENT OF CASH FLOWS	22
NOTES TO THE FINANCIAL STATEMENTS	23
DIRECTORS' DECLARATION	49
INDEPENDENT AUDITOR'S REPORT	50
CORPORATE GOVERNANCE STATEMENT	52
ASX ADDITIONAL INFORMATION	58

CORPORATE DIRECTORY

BLACK RIDGE MINING NL ABN 48 083 274 024

Directors

Mr Roger Smith (Non-Executive Chairman) Mr Gordon Hatch (Managing Director) Mr Angus Middleton (Non-Executive Director)

Company Secretary

Mr David Semmens

Registered Office

Suite 10, 281 Hay Street SUBIACO Western Australia 6008 Telephone: 08 9381 6922 Facsimile: 08 9381 6060 e-mail: [email protected] Web : www.blackridgemining.com

Share Registry

Advanced Share Registry Ltd 150 Stirling Highway NEDLANDS Western Australia 6009 Telephone: (08) 9389 8033

Auditors

K Westaway & Associates Chartered Accountants Suite 7, 29 Hood Street SUBIACO Western Australia 6008

Solicitors

Steinepreis Paganin Level 4, NEXT Building 16 Milligan Street PERTH Western Australia 6000

Bankers

Westpac 1257 – 1261 Hay Street WEST PERTH Western Australia 6005

Stock Exchange Listing

Australian Securities Exchange Black Ridge Mining NL ASX Code: BRD

DIRECTORS' REPORT

Your directors submit their report for the Company and its controlled entities ("the Consolidated Entity") for the year ended 30 June 2010.

DIRECTORS

The names and details of the Company's directors in office during the financial year and until the date of this report are as follows. Directors were in office for the entire period unless otherwise stated.

Mr Roger Smith Non-executive Chairman

Mr Smith was appointed as a Director on 21 February 2005 and as Chairman on 18 September 2008 and has many years experience in retail trade. He has held a number of proprietary company directorships and has been successful in the operation of a number of wholesale/retail businesses in Australia. Mr Smith is a non-executive director of ASX listed company Multi Channel Solutions Limited.

Mr Gordon Hatch Managing Director Mr Hatch was appointed as a Director on 18 September 2008 and as Managing Director on 31 January 2009. He has in excess of 25 years of practical experience in management, commerce and mining associated with both local and overseas directorships of his own companies. In particular, he has been responsible for negotiating and introducing new systems to various industries with a broad range of clientele including publicly listed national companies and government. He has a proven track record in contract negotiation which will add support to the Board, particularly in its endeavours to source company enhancing projects including resource based opportunities. Mr Angus Middleton Non-executive Director

Mr Middleton was appointed as a Director on 1 January 2009. He is a director of SA Capital Pty Ltd and the Managing Director of SA Capital Funds Management Limited, the manager of the SACFM No. 1 Fund. Prior to becoming a funds manager he was a stockbroker for 25 years and a member of the Adelaide Stock Exchange and then the Australian Stock Exchange. SA Capital provides corporate advisory services to a range of companies in raising equity in the form of venture capital, seed capital, pre-initial public offerings and initial public offerings and also acts as an underwriter for issues of equity. Mr Middleton is a non-executive director of ASX listed companies Magna Mining NL and Rubianna Resources Limited.

Directorships of other listed companies

Directorships of other listed companies held by directors in the last three years immediately before the end of the financial year are as follows:

Name	Company	Period of Directorship
Mr Gordon Hatch	Nil	N/A
Mr Angus Middleton	Magna Mining NL	23/09/08 to current
	Rubianna Resources Limited	30/09/09 to current
Mr Roger Smith	Multi Channel Solutions Limited	June 1988 to current

OTHER OFFICERS

Mr David Semmens Company Secretary

Appointed on 14 July 2006, Mr Semmens has experience in providing company secretarial, financial and corporate and other related services to organisations listed on ASX.

PRINCIPAL ACTIVITIES

The principal activity during the financial year was mineral exploration including the exploration and evaluation of opportunities located domestically and internationally.

OPERATING RESULTS

The Consolidated Entity's operating loss after tax for the year ended 30 June 2010 was $959,330 (2009: loss of $1,014,760).

REVIEW OF OPERATIONS

Having established the new direction into the mineral exploration industry during 2009, the company continued to develop the investigation of its exploration area at Unaly Hill as the main priority, given the early indicators from the work undertaken to that time. The directors believe that this new direction was justified with the results of further work completed during the year.

In support of the aim to broaden the opportunities for shareholders, the company did undertake several project assessments of both coal and gold deposits overseas. To date these have not been fruitful and whilst deemed to be opportune for the company at the time, will not be undertaken at the expense of the more clearly defined project in Western Australia. The Directors hold an open view however, on future opportunities.

With the Unaly Hill acquisition completed prior to 30 June 2009, the company undertook a continuation of the desktop and in-field work commenced with the earlier (brief) RC drilling, mindful of the need to contain expenditure and yet, develop a model forward to get the earliest possible understanding of the potential, that would give confidence to the market for further capital raising.

At the same time, the company was proceeding with the Exclusive Dealing Agreement it held with the Shanxi Donghui Group of China over the Unaly Hill tenement, and continued to provide data for assessment by them, to assist with their determination whether to proceed or not with the venture. As subsequently announced to the market on 12 February 2010, the agreement was terminated by mutual consent between all parties.

By a resolution passed at a General Meeting held on 21 September 2009, the company voted to change its corporate type from a public company limited by shares to a public no liability company. Once approval was ratified by ASIC the company adopted a new constitution and commenced trading as Black Ridge Mining NL.

Western Australia – E57/420 (Unaly Hill)

During the first quarter, further evaluation of the drilling results previously published highlighted that more should be done to expand on the inherent magnetite body contained in the collected data. Various models had been proposed for the future program of works on site including further drilling, 3D imaging and metallurgical analysis.

On 26 November 2009 the Company advised of the commencement of a diamond drilling program targeting ferro-vanadium mineralization at the Unaly Hill tenement. The two hole drilling program of approximately 500 metres, was designed to test the presence of magnetite mineralization modeled from detailed geophysical interpretation of airborne magnetics and, 3D modeling prepared by Southern Geoscience Consultants Pty Ltd.

The previous RC drilling program of 2008, failed to test the most prospective zone of mineralization as interpreted from geophysical modeling, due to inclement weather restricting access. The first hole of that program was planned to test this location.

On 18 December 2009, the Company announced the results of the diamond drilling program to the south of the tenement in which wide intervals of high grade magnetite, vanadium and titanium were identified.

In particular, hole UH4 as identified on plan to the left (schematic cross section below) intersected multiple zones of high grade mineralization through to the down hole depth of 320 metres, at which time, it was decided to complete the hole, even though it was still in mineralization. The widest band of high grade mineralization was 117 metres between 170 and 287 metres down hole which produced an average of 34.56% Fe, 0.66% V2O5 and 9.56% TiO2.

The 26 metres prior to completing the hole, still produced almost identical grades on average and further testing under a separate program, will determine the full depth of the ore body.

Of major importance to the company, was the high grade nature of the material throughout including 42 intervals between 30 - 40% Fe, and more than 70 intervals above 40%, with 19 intervals above 50% Fe.

Significantly, of those high grade zones, there were many in the 1-3 metre intervals, with the following considered to be of special interest to the program.

113.00 – 118.05m	(5.99 metres)	45.93% Fe ave.
170.02 – 176.00m	(5.98 metres)	45.81% Fe ave.
181.33 – 191.00m	(9.70 metres)	46.74% Fe ave.
264.70 – 272.00m	(8.30 metres)	48.30% Fe ave.
279.55 – 286.30m	(6.75 metres)	50.98% Fe ave.
294.04 – 303.00m	(8.60 metres)	48.32% Fe ave.

Cross section of mineralization in diamond hole UH4

The photo below is from the interval at 184 – 185 metres @ 49.70% Fe and is typical of all high grade zones

It was generally agreed that once the drill results were tabled, the clearest way forward was to get an understanding of the metallurgy which would form the basis, of where the priorities should lie for the 2010 development of those results.

Accordingly, after consultation with a process engineering office in Perth, Promet Engineers (ProMet), it was recommended that some Davis Tube Recovery (DTR) test work should be undertaken, which was commissioned in the early part of March. The company advised the market on 1 April 2010 of those results, the key points of which were –

Preliminary Davis Tube Recovery (DTR) test work confirms that a high grade vanadium concentrate can be produced from Unaly Hill mineralisation
Concentrate grades of 59% Fe and 1.25% V2O5 at coarse (150 micron) grind
Favourable comparisons to Windimurra vanadium operations located 30km to west
Scoping study proposal by independent consultants under review

Test work was completed under the supervision of independent consultants ProMet, and involved the crushing and grinding of core samples to a variety of sizes to give different concentrate grades (Table 1).

Size	Weight
(Micron)	Recovery	Fe	SiO2	Al2O3	TiO2	V	V2O5
500	62.19	55.28	3.3	3.13	13.6	0.64	1.14
235	57	57.49	2.18	2.35	13.3	0.68	1.21
152	54.98	59.1	1.55	1.88	13.16	0.70	1.25
76	53.03	60.7	1.05	1.41	12.81	0.72	1.28
44	51.12	61.7	0.72	1.04	12.33	0.74	1.33
34	50.79	61.31	0.64	0.94	12	0.74	1.31
33	50.5	61.71	0.64	0.9	11.9	0.74	1.33
28	50.15	61.61	0.62	0.86	11.7	0.75	1.33

Table 1: Davis Tube Recovery concentrate results

Vanadium Grade in Concentrate

The vanadium grades in concentrate are considered to be particularly encouraging. The criteria for magnetite for a feedstock to a vanadium processing plant – similar to that at Windimurra - is that silica be less than 2% and that the vanadium pentoxide (V2O5) grade be as high as possible. This indicates that a grind of 80% passing 150micron would be suitable when compared with publically available data on the Windimurra plant (Table 2). These initial results indicate that the orebody has the potential to produce a vanadium concentrate by standard metallurgical processes which is suitable as feedstock for a conventional vanadium processing facility, and compares very favorably with the Windimurra operation located 30km to the west.

	Unaly Hill(20% Fe cutoff)	Windimurra(0.275% V2O5 cutoff)
% V2O5 in sample	0.67	0.46
% V2O5 yield to Cons	85-90%	68%
Grade in Concentrateat 80% passing 150micron	1.25%	1.26%

Table 2: Unaly Hill / Windimurra vanadium in concentrate comparison

On 8 April 2010 it was announced that an initial exploration target had been determined for the project indicating the following –

Initial Exploration Target* of 180 to 200 million tonnes @ 30% 44% Fe , 0.6% 0.9% V2O5, 9% -13% TiO2 For the Unaly Hill Project
Exploration Target based on a 3km portion of strike length out of an identified 11km magnetic anomaly
RC drilling program planned to commence in May 2010

Recent exploration programs have been successful in delineating a series of magnetite lenses within a layered metagabbro intrusive. This style of layered intrusive is an important host for vanadium and titanium-bearing magnetite iron deposits such as those at the Speewah Project (NiPlats Australia Ltd) or the Balla-Balla titanomagnetite deposit (Aurox Resources Ltd).

Given the results of the programme to date and to ensure more accurate geophysics to work with in the future, it was decided to commission a new aeromagnetic survey of the target areas including, the northern sections of E57/760 (see separate report below). This work was undertaken and reported to the market on June 1st 2010 confirming that 1,124 line kms had been flown, which when analysed, would assist in the planning of the holes for the follow up RC drilling programme later in the year.

Subsequent to the end of the financial year, the Company announced in July 2010 that drilling had commenced on both E57/420 and E57/760 with the results to be reported in the September quarter.

Additionally, the area is being evaluated for the prospectivity of gold which to date, has been the subject of discontinuous gold exploration activity in the past. It is considered that the tenement is clearly prospective for gold given that it straddles the regional scale Youanmi Shear Zone. To the north and on the flanks, there is a history of gold in past production, current resources and small scale workings. Further desk top studies are continuing on this aspect of the tenement.

Western Australia - Meteoric Resources NL – E57/760

On 19 May 2010 the Company announced it had reached an Agreement in Principle with Meteoric Resources NL (ASX:MEI) on Meteoric's 100%-owned exploration licence (E57/760) situated adjacent, and to the south of the Company's Unaly Hill magnetite-vanadium-titanium project (E57/420). The magnetite-vanadiumtitanium mineralisation at Unaly Hill is associated with a pronounced aeromagnetic anomaly which can be traced for about 11km in exploration licence (E57/420) This magnetic anomaly extends for at least 2km along strike within the Meteoric tenement, as shown on the attached map below.

Under the terms of the agreement, the Company has 6 months to spend a minimum of $100,000 on the ground to evaluate their further interest within the Tenement. If the Company chooses not to proceed further with the agreement, it may withdraw at any time with no right or title to the Tenement; such expenditure to form part of the earn-in expenditure.

Should the Company choose to proceed with the Joint Venture, it must spend within three years a minimum of $1,000,000 (inclusive of the initial $100,000) on the Tenement to earn a 60% interest in the project. At that point the Company may elect to remain at 60% and a contributing JV formed, or it may elect to sole fund a further $500,000 within an additional one year, to earn up to a total of 70% interest in the Tenement after which a contributing JV will be formed.

Western Australia - P57/1268

As detailed on the above Meteoric Resources map, a strip of land separating it and the Unaly Hill tenement to the north was created with the re-aligning of the datum. To ensure that continuity of access between the two tenements was guaranteed for the Company should the option to form the JV with Meteoric Resources was exercised, the Company applied for an Exploration Licence in May 2010. This is anticipated to be granted at some time into the future.

Overseas Opportunities

Throughout the year, the Company has been evaluating varying potential opportunities in both the Philippines and Indonesia for both gold and coal.

The Company reported to the market on 7 December 2009, it had entered into an exclusive Dealing Agreement with PT Inmas Abadi (PIA) in relation to PIA's sub-bituminous coal deposit in Bengkulu Province, Sumatra (Licence No. KP#124.K/2013/DDJP/1996).

Under the Agreement, the Company had the exclusive right for a period of 5 months to conduct further legal and geological inquiries and to determine whether it would participate in the development of the deposit under a joint venture or similar arrangement with PIA.

The licence had a total area of 7,687 hectares of which preliminary investigation and at depth testing has taken place on 1,000 hectares, with early indications of an extensive resource.

As reported in the March Quarterly Report, the legal issues with this agreement were far more challenging than the collection of geological data and ultimately, it was deemed inappropriate for the company to continue whilst these were being addressed by the relevant parties.

The directors have taken a view that unless a stand out opportunity presents itself, the Company will concentrate on the domestic projects on hand.

Information in this report that relates to exploration results reflects information compiled by Mr Paddy Reidy, who is a consultant to Black Ridge Mining and a member of the AusIMM. Mr Reidy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity upon which he is reporting on as a Competent Person as defined in the 2004 Edition of "The Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves." Mr Reidy consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears.

* The term "Exploration Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore those terms have not been used in this context. Exploration Targets are conceptual in nature, and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Information in this report that relates to exploration targets reflects information compiled by Mr Daniel Wholley, who is a Director of CSA Global Pty Ltd, a member of the Australian Institute of Geoscientists and an independent consultant to the Company. Mr Wholley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity upon which he is reporting on 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 Wholley consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears.

Information in this report that relates to metallurgical results reflects information compiled by Mr Brian Povey, who is a Principal Consulting Metallurgist with ProMet Engineers, a fellow of the AusIMM, and an independent consultant to the company. Mr Povey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity upon which he is reporting on 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 Povey consents to the inclusion in this report of the matters based on the information compiled by him, in the form and context in which it appears.

FINANCIAL POSITION

At the end of the financial year, the Consolidated Entity had $574,790 (2009: $158,671) in cash and on deposit.

DIVIDENDS

The directors do not recommend the payment of a dividend for this financial year. No dividends have been paid or declared by the Company since the end of the previous financial year (2009: Nil).

LIKELY DEVELOPMENTS AND FUTURE RESULTS

Other than as referred to in the Review of Operations, further information as to likely developments in the operations of the Consolidated Entity would, in the opinion of the directors, be speculative and may hinder the Consolidated Entity in the achievement of its commercial objectives

SIGNIFICANT CHANGE IN STATE OF AFFAIRS

Issue of Shares

On 23 December 2009 the Company issued 29,420,000 fully paid ordinary shares at $0.01 to raise $294,200 for working capital purposes. This placement of shares was approved by shareholders at a General Meeting of the Company held on 21st September 2009.

On 29 April 2010 the Company issued 60,000,000 fully paid ordinary shares at $0.009 to raise $540,000 to fund ongoing exploration, working capital, corporate and administrative activities and the identification of new opportunities. This placement of shares was issued under the 15% capacity available to the company in accordance with the Listing Rules of the ASX. The placement was subsequently ratified at a General Meeting of the Company held on 23 August 2010.

Other than the above, there were no significant changes in the state of affairs of the Consolidated Entity during the financial year, not otherwise disclosed in this Directors' Report or in the Review of Operations.

SIGNIFICANT EVENTS SUBSEQUENT TO BALANCE DATE

There has not arisen in the interval between the end of the financial year and the date of this report, any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect substantially the operations of the Consolidated Entity, the results of those operations or the state of affairs of the Consolidated Entity in subsequent financial years.

OPTIONS

Share Options

As at 30 June 2010, there are 116,350,000 (2008: 113,350,000) unissued ordinary shares in respect of which options were outstanding comprising:

	Exercise Price	Expiry Date
listed	0.03	30 November 2010
unlisted	0.10	31 December 2011
		31 December 2010
		30 November 2012
		30 November 2012
unlisted	0.10	30 November 2012
	unlistedunlistedunlisted	0.040.040.07

During the year no options were issued and listed on ASX, and at the date of this report the Company had 15,200,000 (2009: 12,200,000) unlisted options on issue.

During, and since the end of the financial year, no (2009: Nil) fully paid ordinary shares were issued by the virtue of the exercise of options.

Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body corporate.

REMUNERATION REPORT (AUDITED)

This remuneration report outlines the remuneration arrangements for the Company's directors.

Remuneration Policy

The performance of the Company depends upon the quality of its Directors and Executives. To prosper the Company must attract competent and experienced directors and executives.

To ensure this the Company has put in place a remuneration structure:

For its Managing Director, that has helped attract a high quality experienced candidate;
Provides a balance of base compensation long term incentive plans;
Providing market based director fees for its non executive directors.

Remuneration Committee

The Board elected that the Company was of the size that a Remuneration Committee was not warranted and that these issues would be continually considered by the Board.

The full Board is responsible for establishing Black Ridge Mining NL's remuneration policies and practices and to ensure they match the group's objectives. The Black Ridge Board proposed the Managing Directors total remuneration package and is responsible for reviewing the non executive remuneration.

Non-Executive Director and Executive Remuneration

The remuneration of non executive directors may not exceed in aggregate in any financial year the amount fixed by the Company. Currently the non executive directors are remunerated by way of directors fees which have been set at $36,000 p.a. for the non executive chairman, and $30,000 for the non executive director, amounts considered reasonable for a company of its size and operational activity.

Details of Executives - Employment Contracts

Mr Gordon Hatch, Managing Director/CEO is employed under contract and is currently the only executive of the Company and has been remunerated for this role as follows:

(i) Base Salary $150,000 pa;
(ii) Statutory Superannuation;
(iii) Motor Vehicle allowance of $2,400 pa;
(iv) Long Term Incentive package comprising: 1,000,000 unlisted options exercisable at 4 cents each on or before 30 November 2012 1,000,000 unlisted options exercisable at 7 cents each on or before 30 November 2012 1,000,000 unlisted options exercisable at 10 cents each on or before 30 November 2012

Reward for Performance

During the year there was no reward for the performance component of any remuneration package.

Key Management Personnel Positions

R Smith Non Executive Chairman: appointed as a Director on 21 February 2005: appointed as Non Executive Chairman on 18 September 2008.
G Hatch Managing Director (executive): appointed as a Director on 18 September 2008: appointed as Managing Director on 31 January 2009.
A Middleton Director (non-executive): appointed 1 January 2009.

DIRECTORS' REPORT (Cont'd) Remuneration Report (cont'd) Remuneration of Directors and named Executives

	Short-term employee benefits			Postemploymentbenefits	Share-based payment
	Salary & Fees	ProfitShare &	Non	Superannuation	Equity-settled					Total	Proportion ofremuneration -	Value ofoptions as
	$	Bonus$	monetary$	$	Shares$	Options$	$	performancerelated (%)	proportion ofremuneration(%)
2010
Gordon Hatch	$137,500	-	-	$12,375	-	$13,400	$163,275	-	8.2%
AngusMiddleton	$30,000	-	-	$2,700			$32,700	-	-
Roger Smith	$30,500	-	-	$2,700	-	-	$33,200	-	-

Total 2010	$198,000		-	$17,775		$13,400	$229,175	-	8.2%
2009
RodgerJohnston	$6,119	-	-	-	-	-	$6,119	-	-
DonaldValentino	$110,630	-	$18,417	$79,192	-	-	$208,239	-	-
Gordon Hatch	$58,904	-	-	$4,136	-	-	$63,040	-	-
AngusMiddleton	$15,000	-	-	-	-	-	$15,000	-	-
Roger Smith	$31,667	-	-	$3,600	-	-	$35,267	-	-

Total 2009	$222,320		$18,417	$86,928		-	$327,665	-	-

Options granted as part of remuneration

During the year, the following options were granted as part of the remuneration of the Managing Director: Value per option at Grant Date

1,000,000 unlisted options exercisable at 4 cents each on or before 30 November 2012	0.0054
1,000,000 unlisted options exercisable at 7 cents each on or before 30 November 2012	0.0043
1,000,000 unlisted options exercisable at 10 cents each on or before 30 November 2012	0.0037

(END OF REMUNERATION REPORT)

DIRECTORS' INTERESTS

As at the date of this report, the interests of the directors in the shares and options of the Company were:

	DIRECT		INDIRECT
	Ordinary Shares	Options	Ordinary Shares	Options
R Smith	-	3,000,000	7,490,523	1,375,000
G Hatch	300,000	-	3,987,000	3,250,000
A Middleton	-	-	41,508,000	6,735,000

Note: Direct holdings are those held in the individuals name, indirect holdings are all other holdings controlled by the individual.

DIRECTORS' MEETINGS

During the year, directors' meetings were held. The number of meetings in which directors were in attendance is as follows:

	Directors' Meetings
	No. of meetings held
	while in office	Meetings attended

R Smith	11	10
G Hatch	11	11
A Middleton	11	11

As at the date of this report, the Consolidated Entity did not have an audit committee, as the directors believe the size of the Consolidated Entity and the size of the Board do not currently warrant its existence.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

During the financial year, the Consolidated Entity paid premiums totalling $9,167 in respect of a contract insuring all the directors of Black Ridge Mining NL against a liability incurred in their role as directors of the consolidated entity, except where:

the liability arises out of conduct involving a wilful breach of duty;

there has been a contravention of the relevant sections of the Corporations Act;

the conduct involves trading whilst insolvent;

the conduct involves an operation carried on outside Australia.

CORPORATE GOVERNANCE

In recognising the need for the highest standards of corporate behaviour and accountability, the directors of the Company support and have adhered to the principles of Corporate Governance. The Corporate Governance Statement is detailed at page 52 of this Annual Report.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The Company's exploration operations are subject to environmental regulations under Commonwealth and State legislation. The Directors believe that the Company has adequate systems in place for the management of the requirements under those regulations, and are not aware of any breach of such requirements as they apply to the Company.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.

The Company was not a party to any such proceedings during the year.

AUDITOR INDEPENDENCE

A copy of the auditor's independence declaration as required under Section 307C of the Corporations Act 2001, is set out on the following page.

NON-AUDIT SERVICES

There were no non-audit services provided by the external auditors during the financial year.

SIGNED in accordance with a resolution of the directors

Gordon S. Hatch Managing Director

17 September 2010

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 30 JUNE 2010

	Notes		Consolidated		Black Ridge Mining NL
CONTINUING OPERATIONS		2010$	2009$	2010$	2010$

REVENUES	2	41,622	95,451	41,622	95,451
Depreciation	3	(7,087)	(15,805)	(7,087)	(15,805)
Finance costs	3	-	(9,009)	-	(9,009)
Share based payment expense	3	(13,400)	-	(13,400)	-
Employee benefits expense		(251,785)	(359,084)	(251,785)	(359,084)
Lease rental payments	3	(27,500)	(41,351)	(27,500)	(41,351)
Professional fees	3	(364,867)	(334,639)	(364,867)	(334,639)
Insurance		(3,973)	(35,696)	(3,973)	(35,696)
Exploration expenses		(305,942)	(114,289)	(305,942)	(114,289)
Writedown listed securities		-	(64,340)	-	(64,340)
Due diligence, travel and
accommodation		(11,686)	(29,347)	(11,686)	(29,347)
Other expenses from ordinary
activities		(14,712)	(106,651)	(14,712)	(106,651)
LOSS BEFORE INCOME TAX		(959,330)	(1,014,760)	(959,330)	(1,014,760)
INCOME TAX EXPENSE	4	-	-	-	-
LOSS ATTRIBUTABLE TOMEMBERS OF BLACK RIDGE
MINING NL		(959,330)	(1,014,760)	(959,330)	(1,014,760)

Basic loss per share (cents)	16	(0.24)	(0.47)	(0.24)	(0.47)
The company's potential ordinary

shares are not considered dilutive and accordingly basic loss per share is the same as diluted loss per share.

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2010

	Notes	2010$	Consolidated2009$	2010$	Black Ridge Mining NL2009$
CURRENT ASSETS
Cash and cash equivalents	14	574,790	158,671	574,790	158,671
Financial assets	6	-	41,660	-	41,660
Other	5	30,471	67,174	30,471	67,174
TOTAL CURRENT ASSETS		605,261	267,505	605,261	267,505
NON-CURRENT ASSETS
Financial assets	6	-	-	2	1
Property, plant and equipment	7	19,710	18,260	19,710	18,260
Exploration expenditure	8	147,068	140,000	147,068	140,000
TOTAL NON-CURRENT ASSETS		166,778	158,260	166,780	158,261
TOTAL ASSETS		772,039	425,765	772,041	425,766
CURRENT LIABILITIES
Trade and other payablesShort term provisions	1011	43,00512,363	90,7744,790	43,00512,363	90,7744,790

TOTAL CURRENT LIABILITIES		55,368	95,564	55,368	95,564
TOTAL LIABILITIES		55,368	95,564	55,368	95,564
NET ASSETS		716,671	330,201	716,673	330,202
EQUITYEquity attributable to equity holders ofthe parent
Issued capital	12	17,900,760	16,568,360	17,900,760	16,568,360
Reserves	12	236,750	223,350	236,750	223,350
Accumulated losses	12	(17,420,839)	(16,461,509)	(17,420,837)	(16,461,508)
TOTAL EQUITY		716,671	330,201	716,673	330,202

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF CHANGES IN EQUITY YEAR ENDED 30 JUNE 2010

		Accumulated
Consolidated	Share Capital	Losses	Reserves	Total
	$	$	$	$
Balance at1.7.2009	16,568,360	(16,461,509)	223,350	330,201
Shares issued during the year	1,332,400	-	-	1,332,400
Share based payments	-	-	13,400	13,400
Net loss recognised directly in equity	-	(959,330)	-	(959,330)
Balance at30.06.2010	17,900,760	(17,420,839)	236,750	716,671

Balance at1.7.2008	16,338,360	(15,458,989)	235,590	1,114,961
Shares issued during the year	230,000	-	-	230,000
Share based payments	-	-	-	-
Net loss recognised directly in equity	-	(1,014,760)	-	(1,014,760)
Transfer from reserves	-	12,240	(12,240)	-
Balance at30.06.2009	16,568,360	(16,461,509)	223,350	330,201

		Accumulated
Black Ridge Mining NL	Share Capital	Losses	Reserves	Total
	$	$	$	$
Balance at1.7.2009	16,568,360	(16,461,508)	223,350	330,202
Shares issued during the year	1,332,400	-	-	1,332,400
Share based payments	-	-	13,400	13,400
Net loss recognised directly in equity	-	(959,330)	-	(959,330)
Balance at30.06.2010	17,900,760	(17,420,837)	236,750	716,673

Balance at1.7.2008	16,338,360	(15,458,988)	235,590	1,114,962
Shares issued during the year	230,000	-	-	230,000
Share based payments	-	-	-	-
Net loss recognised directly in equity	-	(1,014,760)	-	(1,014,760)
Transfer from reserves	-	12,240	(12,240)	-
Balance at30.06.2009	16,568,360	(16,461,508)	223,350	330,202

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF CASH FLOWS YEAR ENDED 30 JUNE 2010

	Notes	2010$	Consolidated2009$		Black Ridge Mining NL2009$
CASH FLOWS FROMOPERATING ACTIVITIES
Income receivedInterest receivedInterest paid		13,71512,314-	73,30929,315(9,009)	13,71512,314-	73,30929,315(9,009)
Payments to suppliers and employees		(1,018,938)	(1,093,050)	(1,018,938)	(1,093,050)
NET CASH FLOWS USED INOPERATING ACTIVITIES	14(c)	(992,909)	(999,435)	(992,909)	(999,435)
CASH FLOWS FROM INVESTINGACTIVITIES
Purchase of property, plant and		(9,390)	(2,269)	(9,390)	(2,269)
equipmentProceeds on disposal of investmentsAcquisition of investments		53,177-	-(50,000)	53,177-	-(50,000)
NET CASH FLOWS USED ININVESTING ACTIVITIES		43,787	(52,269)	43,787	(52,269)
CASH FLOWS FROM FINANCINGACTIVITIES
Release of security depositRepayment of borrowings		32,841-	14,617(18,219)	32,841-	14,617(18,219)
Proceeds from issue of ordinary sharesShare issue expenses		1,364,200(31,800)	90,000-	1,364,200(31,800)	90,000-
NET CASH FLOWS FROM (USED
IN) FINANCING ACTIVITIES		1,365,241	86,398	1,365,241	86,398
NET INCREASE/(DECREASE) INCASH AND CASH EQUIVALENTSOpening cash brought forward		416,119158,671	(965,306)1,123,977	416,119158,671	(965,306)1,123,977
CASH AND CASH EQUIVALENTSAT END OF PERIOD	14(b)	574,790	158,671	574,790	158,671

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report of Black Ridge Mining NL (the Company) for the year ended 30 June 2010 was authorised for issue in accordance with a resolution of the directors on 17 September 2010.

The financial report covers the consolidated group of Black Ridge Mining NL and controlled entities and Black Ridge Mining NL as an individual parent entity. Black Ridge Mining NL is a listed public company, incorporated and domiciled in Australia.

(a) Basis of Preparation

The financial report is a general purpose financial report, which has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report has been prepared on an accrual basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

(b) Statement of Compliance

The financial report complies with Australian Accounting Standards, which include Australian equivalents to the International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

The following is a summary of the material accounting policies adopted by the consolidated group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

(c) Principles of Consolidation

A controlled entity is any entity controlled by Black Ridge Mining NL whereby it has the power to control the financial and operating policies of an entity so as to obtain benefits from its activities.

A list of controlled entities is contained in Note 9 to the financial statements. All controlled entities have a June financial year end.

All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity.

Where controlled entities have entered or left the consolidated group during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased.

Minority equity interests in the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(d) Income Tax

The charge for current income tax expense is based on profit or loss for the year adjusted for any nonassessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the consolidated group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Since the enactment of the Tax Consolidation legislation, the Black Ridge consolidated group has elected not to enter the tax consolidation regime.

(e) Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Impairment

At each reporting date, the group assess whether there is objective evidence that a financial instrument has been impaired. In the case of available-for sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the income statement.

(f)Exploration and Evaluation Expenditure

Exploration and evaluation costs represent intangible assets. Exploration and evaluation costs (other than acquisition costs) are expensed as incurred. Acquisition costs related to an area of interest are capitalised and carried forward to the extent that they are expected to be recouped through the successful development of

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves and active and significant operations in, or in relation to, the areas of interest are continuing.

Accumulated acquisition costs in relation to an abandoned area are written off in full against profit and loss account in the year in which the decision to abandon the area is made.

Costs of site restoration are provided for once identified. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs have been determined on the basis that the restoration will be completed.

(g) Foreign Currency Transactions and Balances

Functional and presentation currency

The functional currency is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity's functional and presentation currency.

Transaction and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Exchange differences arising on the translation of monetary items are recognised in the income statement.

(h) Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will results and that outflow can be reliably measured.

(i) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-borrowings in current liabilities on the balance sheet.

(j) Revenue

Interest revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts though the expected life of the financial instrument) to the net carrying amount of the financial asset.

Rental income is recognised upon receipt of rental monies.

All revenue is stated net of the amount of goods and services tax (GST).

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(k) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(l) Shares

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the company.

(m) Other Current Receivables

Other current receivables are carried at the nominal amounts due. The collectability of debts is assessed continually and specific provision is made for any doubtful debts.

(n) Payables

Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the company or consolidated entity.

(o) Contributed Equity

Issued and paid up capital is recognised at the fair value of the consideration received by the company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.

(p) Employee Benefits

Provision is made for the company's liability for employee entitlement benefits arising from services rendered by employees to balance date. These benefits include wages and salaries and annual leave.

Employee benefits expected to be settled within twelve months of the reporting date are measured at the amounts expected to be paid when the liability is settled plus related on costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

(q) Earnings Per Share

Basic loss per share is calculated as net profit/(loss) attributable to members, adjusted to exclude costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted loss per share is calculated as net profit/(loss) attributable to members, adjusted for:

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares;

divided by the weighted average number of ordinary shares and dilutive potential shares, adjusted for any bonus element.

(r) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset's employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the consolidated group commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are:

Class of Fixed Assets	DepreciationRate
Plant and equipment	7.5-30%
Motor vehicles	18.75%
Computer equipment	37.5%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by company proceeds with the carrying amount. These gains and losses are included in the income statement.

(s) Leases

Operating lease payments are recognised as an expense in the income statement on a straight line basis over the lease term.

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(t) Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group.

Key Estimates – Impairment

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairments of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

(u) Investments and Other Financial Assets

Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial assets at fair value through profit and loss, loans and receivables, held-to-maturity investments, or available-for-sale investments, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transactions costs. The Group determines the classification of its financial assets after initial recognition and, when allowed and appropriate, re-evaluates this designation at each financial year-end.

All regular way purchases and sales of financial assets are recognised on the trade date, i.e. the date that the Group commits to purchase the asset. Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery of the assets within the period established generally by regulation or convention in the marketplace.

(i) Financial Assets at Fair Value through Profit or Loss

Financial assets classified as held for trading are included in the category 'financial assets at fair value through profit or loss'. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on investments held for trading are recognised in profit or loss.

(ii) Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as heldto-maturity when the Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification. Investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost. This cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initially recognised amount and the maturity amount. This calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums and discounts. For investments carried at amortised cost, gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the amortisation process.

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(iii) Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed and determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

(iv) Available-for-Sale Investments

Available-for-sale investments are those non-derivative financial assets that are designated as available-for-sale or are not classified as any of the three preceding categories. After initial recognition available-for-sale investments are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in profit or loss.

The fair value of investments that are actively traded in organised financial markets is determined by reference to quoted market bid prices at the close of business on the balance sheet date. For investments with no active market, fair value is determined using valuation techniques. Such techniques include using recent arm's length market transactions; reference to the current market value of another instrument that is substantially the same; discounted cash flow analysis and option pricing models.

(v) Impairment of Assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cashgenerating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at re-valued amount (in which case the impairment loss is treated as a re-valuation decrease).

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at re-valued amount, in which case the reversal is treated as a re-valuation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(w) Share Based Payments

Equity Settled Transactions:

The Group provides benefits to employees (including senior executives) of the Group in the form of share-based payments, whereby employees render services in exchange for shares or rights over shares (equity-settled transactions)

The cost of these equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an external valuer using a pricing model which incorporates all market vesting conditions.

In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Black Ridge Mining NL (market conditions) if applicable.

The cost of equity-based transactions is recognised, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (the vesting period).

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the Group's best estimate of the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The income statement charge or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only conditional upon a market condition.

If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any modification that increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee, as measured at the date of modification.

If any equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expenses not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

(x) New Accounting Standards and Interpretations

The following standards, amendment to standards and interpretations have been identified as those which may impact the entity in the period of initial application. They are available for early adoption at 30 June 2010, but have not been applied in preparing this financial report.

AASB 9 Financial Instruments includes requirements for the classification and measurement of financial assets resulting from the first part of Phase 1 of the project to replace AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 will become mandatory for the Company's 30 June 2014 financial statements. Retrospective application is generally required, although there are exceptions, particularly if the entity adopts the standard for the year ended 30 June 2012 or earlier. The Company has not yet determined the potential effect of the standard.
AASB 124 Related Party Disclosures (revised December 2009) simplifies and clarifies the intended meaning of the definition of a related party and provides a partial exemption from the disclosure requirements for government related entities. The amendments, which will become mandatory for the Company's 30 June 2012 financial statements, are not expected to have any impact on the financial statements.

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

AASB 2009-5 Further amendments to Australian Accounting Standards arising from the Annual Improvement Process affect various AASB's resulting in minor changes for presentation, disclosure, recognition and measurement purposes. The amendments, which become mandatory for the Company's 30 June 2011 financial statements, are not expected to have a significant impact on the financial statements.
AASB 2009-8 Amendments to Australian Accounting Standards Group Cash settled Share based Payment Transactions resolves diversity in practice regarding the attribution of cash settled share-based payments between different entities within a group. Asa result of the amendments AI 8 Scope of AASB 2 and AI 11 AASB 2 – Group and Treasury share transactions will be withdrawn from the application date. The amendments, which become mandatory for the Company's 30 June 2011 financial statements, are not expected to have a significant impact on the financial statements.
AASB 2009-10 Amendments to Australian Accounting Standards Classification of Rights Issue [AASB 132] (October 2010) clarify that rights, options or warrants to acquire a fixed number of an entity's own equity instruments for a fixed amount in any currency are equity instruments if the entity offers the rights, options or warrants pro rata to all existing owners of the same class of its own non derivative equity instruments. The amendments, which become mandatory for the Company's 30 June 2011 financial statements, are not expected to have any impact on the financial statements.
AASB 2009-14 Amendments to Australian Interpretation Prepayments of a Minimum Funding Requirement – AASB 14 make amendments to Interpretation 14 AASB 119 – The Limit on a Defined Benefit Asset Minimum Funding Requirements removing an unintended consequence arising from the treatment of the prepayments of future contributions in some circumstances when there is a minimum funding requirement. The amendments will become mandatory for the Company's 30 June 2012 financial statements, with retrospective application required. The amendments are not expected to have any impact on the financial statements.
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments addresses the accounting by an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor of the entity to extinguish all or part of the financial liability. IFRIC 19 will become mandatory for the Company's 30 June 2011 financial statements, with retrospective application required. The Company has not yet determined the potential effect of the interpretation.

(y) Going Concern

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

For the year ended 30 June 2010 the Company incurred an operating loss of $959,330 (2009:$ 1,014,760) and an operating cash outflow of $992,909 (2009:$999,435).

Based upon the Company's existing cash resources, the ability to modify expenditure outlays if required, and the Directors' confidence of sourcing additional funds, the Directors consider there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable, and therefore the going concern basis of preparation to be appropriate for the preparation of the Company's 2010 financial report.

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

In the event that the Company is not able to continue as a going concern, it may be required to realise assets and extinguish liabilities other than in the normal course of business and at amounts different to those stated in its financial report.

NOTE 2. REVENUE

	Consolidated		Black Ridge Mining NL
	2010	2009	2010	2009
	$	$	$	$
Revenues
Research fees refunded	-	60,000	-	60,000
Finance income	12,314	29,315	12,314	29,315
Profit on disposal of equityinvestments	16,841	-	16,841	-
Other	12,467	6,136	12,467	6,136
Total revenues	41,622	95,451	41,622	95,451

NOTE 3. LOSS FOR THE YEAR

Professional Fees
- Audit fees	15,680	15,000	15,680	15,000
- Company secretarial fees	49,000	49,832	49,000	49,832
- Consulting fees	202,300	216,784	202,300	216,784
- Legal fees	18,420	22,051	18,420	22,051
- Accounting fees	1,097	4,908	1,097	4,908
- ASX/share registry fees	36,928	25,973	36,928	25,973
	364,867	334,639	364,867	334,639
Rental expense on operating leases
- Minimum lease payments	27,500	41,351	27,500	41,351
Finance costs
- External	-	9,009	-	9,009
Depreciation	7,087	15,805	7,087	15,805
Share based payment expense	13,400	-	13,400	-

	2010$	Consolidated2009$		Black Ridge Mining NL2009$
NOTE 4. INCOME TAX EXPENSE			$
(a)The prima facie tax on the loss fromordinary activities before income tax isreconciled to the income tax provided inthe financial statements as follows:
Prima facie tax payable on the loss fromordinary activities before income tax at30% (2009:30%)	(287,799)	(304,428)	(287,799)	(304,428)
Tax effect of:Non deductible depreciationWrite down to recoverable amountOther non deductible itemsSection 40-880 deductionUnused tax losses and temporarydifferences not recognised asdeferred tax assets	--4,200(4,932)288,531	1,86819,302(2,801)(3,024)289,083	--4,200(4,932)288,531	1,86819,302(2,801)(3,024)289,083
Income tax expense attributable toordinary activities	-	-	-	-
(b)Unrecognised temporarydifferences.
Deferred Tax Assets (at 30%)
Section 40-880 deductionsLosses available for offset against	13,680	6,048	13,680	6,048
future taxable income	3,937,794	3,036,006	3,937,794	3,036,006
Accrued expenses and provisions	3,7083,955,182	1,4373,043,491	3,7083,955,182	1,4373,043,491
Deferred Tax Liabilities (at 30%)Prepayments	3,195	10,300	3,195	10,300
	3,195	10,300	3,195	10,300

Net deferred tax assets have not been brought to account, as it is not probable within the immediate future that tax profits will be available against which deductable temporary differences and tax losses can be utilised.

	Consolidated			Black Ridge Mining NL
	2010$	2009$	2010$	2009$
NOTE 5. OTHER CURRENT ASSETSPrepaymentsSecurity deposit in respect of operating leaseOther	10,650-19,821	34,33332,841-	10,650-19,821	34,33332,841-
	30,471	67,174	30,471	67,174
NOTE 6. FINANCIAL ASSETSCURRENTAvailable for sale financial assetsHeld for trading – Australian listed shares	-	41,660	-	41,660
	-	41,660	-	41,660
NON CURRENT
Investment in controlled entities(Refer to note 9)	-	-	2	1
	-	-	2	1

	Consolidated			Black Ridge Mining NL
	2010	2009	2010	2009
	$	$	$	$
NOTE 7. PROPERTY PLANT ANDEQUIPMENT
Plant and equipment:
At cost	26,297	27,684	26,297	27,684
Accumulated depreciation	(16,613)	(13,893)	(16,613)	(13,893)
	9,684	13,791	9,684	13,791
Computer equipment:
At cost	18,144	15,328	18,144	15,328
Accumulated depreciation	(8,118)	(10,859)	(8,118)	(10,859)
	10,026	4,469	10,026	4,469
	19,710	18,260	19,710	18,260
Movement in carrying amounts:Movement in the carrying amounts for each classof plant and equipment between the beginning andthe end of the financial year
Plant and equipment:
Balance at the beginning of the year	13,791	14,773	13,791	14,773
Additions	-	2,063	-	2,063
Disposal	(1,003)	-	(1,003)	-
Depreciation expense	(3,104)	(3,045)	(3,104)	(3,045)
Carrying amount at the end of the year	9,684	13,791	9,684	13,791
Motor vehicle:
Balance at the beginning of the year	-	96,551	-	96,551
Additions	-	-	-	-
Disposal	-	(85,991)	-	(85,991)
Depreciation expense	-	(10,560)	-	(10,560)
Carrying amount at the end of the year	-	-	-	-
Computer equipment:
Balance at the beginning of the year	4,469	6,669	4,469	6,669
Additions	9,539	-	9,539	-
Disposal	(1,175)	-	(1,175)	-
Depreciation expense	(2,807)	(2,200)	(2,807)	(2,200)
Carrying amount at the end of the year	10,026	4,469	10,026	4,469
	19,710	18,260	19,710	18,260

NOTE 8. EXPLORATION AND DEVELOPMENT EXPENDITURE

	Consolidated		Black Ridge Mining NL
	2010	2009		2010	2009
	$	$	$	$
Balance at beginning of year	140,000	-	140,000	-
Mining tenement acquired	-	140,000	-	140,000
Exploration expenditure incurred	313,010	114,288		114,288
Exploration expenditure expensed to incomestatement	(305,942)	(114,288)	(305,942)	(114,288)
	147,068	140,000	147,068	140,000

Recoverability of the carrying amount of exploration assets is dependent upon the successful development or sale of the mining tenement to which it relates.

NOTE 9. INTERESTS IN CONTROLLED ENTITIES

Name	Country ofIncorporation	Percentage of equityinterest held by theconsolidated entity
		2010	2009	2010	2009
Direct				$	$
Unaly Hill Pty Ltd	Australia	100	0	1	-
Sandstone Holdings Pty Ltd	Australia	100	0	-	-
Genovations Pty Ltd*	Australia	100	100	1	1
West Perth Clinic 1 Pty Ltd*	Australia	100	100	-	-
Indirect
Smart Chair Systems Pty Ltd*	Australia	50	50	-	-
DBC Australia Pty Ltd*	Australia	75	75	-	-
				2	1

For the year ended 30 June 2010, the entities marked with an * were dormant and held no assets or liabilities. Applications for voluntary deregistration of these entities has been received and approved by ASIC.

Unaly Hill Pty Ltd was incorporated on 6th January 2010 as a wholly owned subsidiary of Black Ridge Mining NL.

Sandstone Holdings Pty Ltd was incorporated on 30th June 2010 as a wholly owned subsidiary of Unaly Hill Pty Ltd.

	Consolidated		Black Ridge Mining NL
	2010	2009	2010	2009
NOTE 10. PAYABLES	$	$	$	$
Trade payables (i)	17,228	66,656	17,228	66,656
Sundry payables and accrued expenses	25,777	24,118	25,777	24,118
	43,005	90,774	43,005	90,774

(i) Trade payables are non-interest bearing and normally settled in 30 days.

NOTE 11. PROVISIONS

Current
Employee leave entitlement	12,363	4,790	12,363	4,790
	12,363	4,790	12,363	4,790

NOTE 12. CAPITAL AND RESERVES	Shares2010	Shares2009	$2010	$2009
a) Issued and paid up capital
Fully paid ordinary shares	461,578,361	272,158,361	17,900,760	16,568,360
Movement in shares on issue
-Issued capital at beginning of financialyear	272,158,361	207,158,361	16,568,360	16,338,360
-Shares issued on 31 March 2009pursuant to a placement at $0.003 each	-	30,000,000	-	90,000
-Shares issued on 8 June 2009 at adeemed price of $0.004 each for theacquisition of Exploration Licence(E57/420)	-	35,000,000	-	140,000
-Shares issued on 1 July 2009 pursuantto a placement at $0.0053 each	100,000,000	-	530,000	-
-Less expenses of the issue	-	-	(31,800)	-
-Shares issued on 23 December 2009pursuant to a placement at $0.01 each	29,420,000	-	294,200	-
-Shares issued on 29 April 2010pursuant to a placement at $0.009 each	60,000,000	-	540,000	-
Issued capital at the end of the financial year	461,578,361	272,158,361	17,900,760	16,568,360

Share Options

As at 30 June 2009, there are 116,350,000 (2009: 113,350,000) unissued ordinary shares in respect of which options were outstanding comprising:

	Number of Options	Exercise Price	Expiry Date
101,150,000	listed	0.03	30 November 2010
10,500,000	unlisted	0.10	31 December 2011
1,700,000	unlisted	0.04	31 December 2010
1,000,000	unlisted	0.04	30 November 2012
1,000,000	unlisted	0.07	30 November 2012
1,000,000	unlisted	0.10	30 November 2012

Terms and conditions of contributed equity Ordinary shares

	Consolidated		Black Ridge Mining NL
	2010	2009	2010	2009
	$	$	$	$
b) Option Premium Reserve
Opening balance	223,350	235,590	223,350	235,590
Employee share based payments	13,400	-	13,400	-
Transfer to accumulated losses	-	(12,240)	-	(12,240)
	236,750	223,350	236,750	223,350

2010

During the year ended 30 June 2010, the following (unlisted) options were issued:

1,000,000 unlisted options exercisable at 4 cents each on or before 30 November 2012 1,000,000 unlisted options exercisable at 7 cents each on or before 30 November 2012 1,000,000 unlisted options exercisable at 10 cents each on or before 30 November 2012

2009

During the year ended 30 June 2009, no options were issued.

c) Accumulated Losses

	Consolidated		Black Ridge Mining NL
	2010$	2009$	2010$	2009$
Accumulated losses at the beginning of thefinancial year	16,461,509	15,458,989	16,461,509	15,458,989
Net loss attributable to the members of the ParentEntity	959,330	1,014,760	959,330	1,014,760
Transfer to accumulated losses	-	(12,240)	-	(12,240)
Accumulated losses at the end of the financial year	17,420,839	16,461,509	17,420,839	16,461,509

NOTE 13. CASH AND CASHEQUIVALENTS			Consolidated		Black Ridge Mining NL
		2010$	2009$	2010$	2009$
	(a) Cash at bank	574,790	158,671	574,790	158,671
		574,790	158,671	574,790	158,671
(b)	Reconciliation of cashCash at end of financial year as shown inthe cash flow statement is reconciled toitems in the balance sheet as follows:Cash and cash equivalents	574,790574,790	158,671158,671	574,790574,790	158,671158,671
	(c) Reconciliation of cash flows from operationswith operating loss after income tax
	Operating loss after income tax	(959,330)	(1,014,760)	(959,330)	(1,014,760)
	Non cash flow items
	Depreciation expense	7,087	15,805	7,087	15,805
	Write down to recoverable amount	-	64,340	-	64,340
	Profit on disposal of equity investments	(16,841)	-	(16,841)	-
	Share based payment expense	13,400	-	13,400	-
	Other	(891)	-	(891)	-
	Changes in assets and liabilities
	(Increase) decrease in other assets	(19,821)	(26,871)	(19,821)	(26,871)
	(Increase) decrease in prepayments anddeposits	23,683	30,886	23,683	30,886
	Increase (decrease) in creditors andaccruals	(47,769)	(34,838)	(47,769)	(34,838)
	Increase (decrease) in provisions	7,573	(33,997)	7,573	(33,997)
	Net cash flows used in operatingactivities	(992,909)	(999,435)	(992,909)	(999,435)

Non cash financing and investing activities: Nil

	Consolidated		Black Ridge Mining NL
	2010$	2009$	2010$	2009$
NOTE 14. COMMITMENTS ANDCONTINGENCIES

(a) The Company is party to an Administration Services Agreement from 1 July 2010 for a fee of $55,000 (excl GST) per quarter payable in advance. The term of the agreement is for a period of three years, with an option by the contractor to extend the term for a further two years. Subject to terms included in the Agreement, should the Company terminate the Agreement without prior notice, it will be liable to pay the contractor the full amount of fees payable for the then remainder of the contract term. These obligations are not provided for in the financial report and are payable:

Not later than one year	220,000	-	220,000	-
Later than one year and not later thanfive years	440,000	-	440,000	-
Total	660,000	-	660,000	-

(b) Exploration Expenditure Commitments

In order to maintain current rights of tenure to exploration tenements, the Company is required to outlay tenement lease rentals and perform minimum exploration work to meet minimum expenditure requirements specified by various government authorities. These obligations are subject to renegotiation when application for a mining lease is made and at various other times. These obligations are not provided for in the financial report and are payable:

Not later than one year	30,000	31,000	30,000	31,000
Later than one year but not later than five years	-	62,000	-	62,000
Total	30,000	93,000	30,000	93,000

(c) The Company has a contingent liability in relation to additional consideration for the acquisition of the Unaly Hill mining tenement (refer note 8):

Upon establishment of an inferred, indicated or measured resource, further payments must be made to the vendor based on mineral ore tonnages identified.
1. Where the resource relates to iron ore, vanadium or phosphate inferred resource $0.02 per tonne of ore, indicated resource $0.04 per tonne of ore and measured resource $0.06 per tonne of ore.
1. Where the resource relates to U3O8 or any base metal inferred resource $0.05 per tonne of ore, indicated resource $0.08 per tonne of ore and measured resource $0.10 per tonne of ore.
1. Where the resource relates to gold or any other precious metal inferred resource $0.20 per tonne of ore, indicated resource $0.30 per tonne of ore and measured resource $0.50 per tonne of ore.
A royalty equal to 2.25% of gross revenue arising from sale of minerals derived from the tenement.

NOTE 15. SEGMENT INFORMATION

2010 Segment Analysis

For the year ended 30 June 2010, the Company's operations were predominantly in the mining exploration sector in Australia.

2010 Segment Analysis		Mining &Exploration	Corporate	Consolidated
		$	$	$
REVENUEOther Revenue		-	41,622	41,622
SEGMENT RESULT		(305,942)	(653,388)	(959,330)
ASSETS/ LIABILITIESAssetsSegment assets		147,068	624,971	772,039

LiabilitiesSegment liabilities		(15,610)	(39,758)	(55,368)
Net Assets		131,459	585,213	716,671

2009 Segment Analysis	Biomedical	Mining &Exploration	Corporate	Consolidated
REVENUEOther Revenue	60,000	-	35,451	95,451
SEGMENT RESULT	60,000	(114,289)	(960,471)	(1,014,760)
ASSETS/LIABILITIESAssetsSegment assets	-	140,000	285,765	425,765

LiabilitiesSegment liabilities	-	-	(95,564)	(95,564)
Net Assets	-	140,000	190,201	330,201

During the year ended 30 June 2009, the Company moved from the biomedical research field to dedicated mineral exploration.

NOTE 16. EARNINGS PER SHARE

The following reflects the income andshare data used in the calculations of basicand diluted loss per share:
	2010$	2009$
Earnings used to calculate loss per share	(959,330)	(1,014,760)
	Number ofShares	Number ofShares
Weighted average number of ordinaryshares outstanding during the year used incalculation of basic loss per share	397,829,045	216,747,402

There are options outstanding at the end of the financial year however they have not been included in the loss per share as they are not considered dilutive in nature.

NOTE 17. KEY MANAGEMENT PERSONNEL

(a) Details of Key Management Personnel

R Smith	Non Executive Chairman: appointed as a Director on 21 February 2005: appointed as Non
	Executive Chairman on 18 September 2008.
G Hatch	Managing Director (executive): appointed as a Director on 18 September 2008: appointed as
	Managing Director on 31 January 2009.
A Middleton	Director (non-executive): appointed 1 January 2009.

(b) Share and Option holdings of Key Management Personnel

	DIRECT		INDIRECT
	Ordinary Shares	Options	Ordinary Shares	Options
R Smith	-	3,000,000	7,490,523	1,375,000
G Hatch	300,000	-	3,987,000	3,250,000
A Middleton	-	-	41,508,000	6,735,000

Note: Direct holdings are those held in the individuals name, indirect holdings are all other holdings controlled by the individual.

(c) Key Management Personnel Compensation

Short term employee benefits	$198,000
Post employment benefits	$ 17,775
Share based benefits	$ 13,400
	$229,175

Detailed remuneration disclosures are provided in the Remuneration Report on pages 13 – 16.

	Consolidated		Black Ridge Mining NL
	2010	2009	2010	2009
	$	$	$	$
NOTE 18. AUDITOR'S REMUNERATION
Amounts received or due and receivable
-Audit and review of the financial report of
the entity and any other entity in the	15,680	15,000	15,680	15,000
consolidated entity
- Non audit services	-	-	-	-
	15,680	15,000	15,680	15,000

NOTE 19. SUBSEQUENT EVENTS

There has not arisen in the interval between the end of the financial year and the date of this report, any other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect substantially the operations of the Consolidated Entity, the results of those operations or the state of affairs of the Consolidated Entity in subsequent financial years.

NOTE 20. FINANCIAL RISK MANAGEMENT

Overview

This note presents information about the Group's exposure to credit, liquidity and market risks, its objectives, policies and processes for measuring and managing risk and the management of capital.

The Group does not use any form of derivatives as it is not at a level of exposure that requires the use of derivatives to hedge its exposure. Exposure limits are reviewed by management on a continuous basis. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The Board of Directors of the Company has overall responsibility for the establishment and oversight of the risk management framework. Management monitors and manages the financial risks relating to the operations of the Company and the Group through regular reviews of the risks.

NOTE 20. FINANCIAL RISK MANAGEMENT (Cont'd)

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group's receivables from customers and investment securities.

Cash and cash equivalents

The Company limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have an acceptable credit rating.

Trade and other receivables

As the Company operates primarily in investment and exploration activities, it does not have trade receivables and therefore is not exposed to credit risk in relation to trade receivables.

The Company where necessary establishes an allowance for impairment that represents its estimate of incurred losses in respect of other receivables and investments. Management does not expect any counterparty to fail to meet its obligations.

Exposure to credit risk

The carrying amount of the Company's financial assets represents the maximum credit exposure. The Company's maximum exposure to credit risk at the reporting date was:

	Company Carrying amount
	2010	2009
Available-for-sale financial assets	-	41,660
Receivables	19,821	32,841

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by continuously monitoring forecast and actual flows. The Company does not have any external borrowings.

The Company anticipates a need to raise additional capital in the next 12 months to meet forecast operational activities. The decision on how the Company will raise future capital will depend on market conditions existing at that time.

NOTE 20. FINANCIAL RISK MANAGEMENT (Cont'd)

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

Group and Company 30 June 2010

	Carryingamount	Contractualcash flow	6 mths orless	6-12 mths	1-2 years	2-5 years
Trade and other payables	43,005	43,005	43,005	-	-	-

Group and Company 30 June 2009

	Carryingamount	Contractualcash flow	6 mths orless	6-12 mths	1-2 years	2-5 years
Trade and other payables	90,774	90,774	90,774	-	-	-

Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the return.

Currency Risk

The Group does not have any exposure to foreign currency risk.

Interest Rate Risk

The Group is exposed to interest rate risk (primarily on its cash and cash equivalents), which is the risk that a financial instrument's value will fluctuate as a result of changes in the market interest rates on interest-bearing financial instruments. The Group does not use derivatives to mitigate these exposures.

NOTE 20. FINANCIAL RISK MANAGEMENT (Cont'd)

The Company adopts a policy of ensuring that as far as possible it maintains excess cash and cash equivalents on short term deposit at best available market interest rates.

Profile

At the reporting date the interest rate profile of the Company's interest-bearing financial instruments was:

	Consolidated and CompanyCarrying amount
	2010	2009
Variable rate instruments
Financial assets – cash and cash equivalents	574,790	158,671

Fair value sensitivity analysis for variable rate instruments

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss or through equity, therefore a change in interest rates at the reporting date would not affect profit or loss or equity.

Cash flow sensitivity analysis for variable rate instruments

The group has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2009.

	Profit or loss			Equity
	100bpincrease	100bpdecrease	100bpincrease	100bpdecrease
30 June 2010Variable rate instruments	4,117	(4,117)	4,117	(4,117)
30 June 2009Variable rate instruments	1,586	(1,586)	1,586	(1,586)

NOTE 20. FINANCIAL RISK MANAGEMENT (Cont'd)

Fair Values

Fair Values versus carrying amounts

The carrying amounts of financial assets and liabilities as described in the balance sheet equate to their estimated net fair value.

Other Market Price Risk

Other Equity price risk is the risk that the value of the instrument will fluctuate as a result of changes in market prices (other than those arising from rate risk or currency), whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market.

Investments are managed on an individual basis and material buy and sell decisions are approved by the Board of Directors. The primary goal of the Group's investment strategy is to maximise investment returns.

The Group's investments are solely in equity instruments. These instruments are classified as available-forsale with fair value changes recognised directly in equity until derecognised.

The following table details the breakdown of the investment assets held by the Group:

	Note	30 June 2010	30 June 2009
Listed equities – Available-for-sale	6	-	41,660

Capital Management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain or adjust the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt. The Group's focus has been to raise sufficient funds through equity to fund the Company's activities. The Group monitors capital on the basis of the gearing ratio, however there are no external borrowings as at balance date.

There were no changes in the Group's approach to capital management during the year. Risk management policies and procedures are established with regular monitoring and reporting.

The Group is not subject to externally imposed capital requirements.

DIRECTORS' DECLARATION

In accordance with a resolution of the directors of Black Ridge Mining NL, I state that:

In the opinion of the Directors;

(a) the financial statements and notes set out in this report (and the remuneration disclosures which are the subject of audit and are contained in the Remuneration Report section of the Directors' Report), are in accordance with the Corporations Act 2001, including:
- (i) giving a true and fair view of the financial position of the Company and Consolidated Entity as at 30 June 2010 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date; and
- (ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and
(b) the remuneration disclosures which are the subject of audit and are contained in the Remuneration Report section of the Director's Report comply with Australian Accounting Standard AASB Related Party Disclosures.
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

The Directors have been given the Declaration by the Managing Director and Chief Financial Officer required by section 295A of the Corporations Act 2001 for the financial year ended 30 June 2010.

Signed in accordance with a resolution of the Directors made pursuant to the section 295(5) of the Corporations Act 2001.

On behalf of the Board

Gordon S. Hatch Managing Director

17 September 2010

CORPORATE GOVERNANCE STATEMENT

Introduction

Since the introduction of the ASX Corporate Governance Council's Principles of Good Corporate Governance and Best Practice Recommendations ("ASX Guidelines" or "the Recommendations"), Black Ridge Mining NL ("Company") has made it a priority to adopt systems of control and accountability as the basis for the administration of corporate governance. Some of these policies and procedures are summarised in this report. Commensurate with the spirit of the ASX Guidelines, the Company has followed each Recommendation where the Board has considered the Recommendation to be an appropriate benchmark for corporate governance practices, taking into account factors such as the size of the Company, the Board, resources available and activities of the Company. Where, after due consideration, the Company's corporate governance practices depart from the Recommendations, the Board has offered full disclosure of the nature of, and reason for, the adoption of its own practice.

The Company has adopted systems of control and accountability as the basis for the administration of corporate governance. The Board of the Company is committed to administering the policies and procedures with openness and integrity, pursuing the true spirit of corporate governance commensurate with the Company's needs.

Further information about the Company's corporate governance policies can be found on the Company's website.

Taking into account the size of the Company, the Company endeavours to comply with the Corporate Governance Principles and the corresponding Best Practice Recommendations as published by the ASX Corporate Governance Council ("Corporate Governance Principles and Recommendations")i and has adopted the revised Principles and Recommendations. Significant policies and details of any significant deviations from the principles are specified below.

Corporate Governance Council Recommendation 1 Lay Solid Foundations for Management and Oversight

Role of the Board of Directors

The Board has responsibility for protecting the rights and interests of Shareholders and is responsible for the overall direction, monitoring and governance of the Company. Responsibility for managing the business on a day-to-day basis has been delegated to the Managing Director and the management team.

The Board is responsible for the overall corporate governance of the Company and its subsidiaries. Responsibilities and Functions of the Board are set out under the Board Charter and include:

i. setting the strategic direction of the Company, establishing goals to ensure that these strategic objectives are met and monitoring the performance of management against these goals and objectives;
ii. ensuring that there are adequate resources available to meet the Company's objectives;
iii. appointing the Managing Director, evaluating the performance and determining the remuneration of senior executives, and ensuring that appropriate policies and procedures are in place for recruitment, training, remuneration and succession planning;
iv. evaluating the performance of the Board and its Directors on an annual basis;
v. determining remuneration levels of Directors;
vi. approving and monitoring financial reporting and capital management;
vii. approving and monitoring the progress of business objectives;
viii. ensuring that any necessary statutory licences are held and compliance measures are maintained to ensure compliance with the law and licence(s);
ix. ensuring that adequate risk management procedures exist and are being used;

x. ensuring that the Company has appropriate corporate governance structures in place, including standards of ethical behaviour and a culture of corporate and social responsibility;
xi. ensuring that the Board is and remains appropriately skilled to meet the changing needs of the Company;
xii. ensuring procedures are in place for ensuring the Company's compliance with the law; and financial and audit responsibilities, including the appointment of an external auditor and reviewing the financial statements, accounting policies and management processes.

In complying with Recommendation 1.1 of the Corporate Governance Council, the Company has adopted a Board Charter which clarifies the respective roles of the Board and senior management and assists in decision making processes. A copy of the Board Charter can be found on the Company's website.

Board Processes

An agenda for the meetings has been determined to ensure certain standing information is addressed and other items which are relevant to reporting deadlines and or regular review are scheduled when appropriate. The agenda is regularly reviewed by the Chairman, the Managing Director and the Company Secretary.

Corporate Governance Council Recommendation 2 Structure the Board to Add Value

Board Composition

The relevant provisions in the Constitution and the Corporations Act determine the terms and conditions relating to the appointment and termination of Directors. All Directors, other than the Managing Director, are subject to re-election by rotation every three years.

The Board does not have a separate Nomination Committee comprising of a majority of Independent Directors and as such does not comply with Recommendation 2.4 of the Corporate Governance Council. The Board believes that given the size of the company and the stage of its development a separate nomination committee is not warranted at this time. Any changes to Directorships will, for the foreseeable future, be considered by the full Board subject to any applicable laws. Identification of potential Board candidates includes consideration of the skills, experience, personal attributes and capability to devote the necessary time and commitment to the role.

The Board consists of Mr Roger Smith, Non-executive Chairman, Mr Gordon Hatch, Managing Director, and Mr Angus Middleton, Non-executive Director.

The Constitution requires a minimum number of three Directors. The maximum number of Directors is fixed by the Board but may not be more than 9, unless the members of the Company, in general meeting, resolve otherwise. The skills, experience and expertise of all Directors is set out in the Directors' section of the Annual Report.

Although Directors are expected to bring independent views and judgement to the Board's deliberations, it has been determined that none of the Company's Directors satisfy the criteria for independence as outlined in recommendation 2.1 of the ASX Corporate Governance Principles.

The Board considers, however, that given the size and scope of the Company's operations at present, it has the relevant experience in the exploration and mining industry and is appropriately structured to discharge its duties in a manner that is in the best interests of the Company and its Shareholders from both a long-term strategic and operational perspective.

Independent Chairman

The Chairman is not considered to be an independent director and as such Recommendation 2.2 of the Corporate Governance Council has not been complied with. However, the Board believes that Mr Smith is an appropriate person for the position as Chairman because of his experience and proven track record as a public company director.

Roles of Chairman and Managing Director

The roles of Chairman and Managing Director are exercised by different individuals, and as such the Company complies with Recommendation 2.3 of the Corporate Governance Council.

Evaluation of Board Performance

The Company does not have a formal process for the evaluation of the performance of the Board and as such does not comply with Recommendation 2.5 of the Corporate Governance Council. The Board is of the opinion that the competitive environment in which the Company operates will effectively provide a measure of the performance of the Directors, in addition the Chairman assesses the performance of the Board, individual directors and key executives on an informal basis.

Education

All Directors are encouraged to attend professional education courses relevant to their roles.

Independent Professional Advice and Access to Information

Each Director has the right to access all relevant information in respect of the Company and to make appropriate enquiries of senior management. Each Director has the right to seek independent professional advice at the Company's expense, subject to the prior approval of the Chairman, which shall not be unreasonably withheld.

Corporate Governance Council Recommendation 3 Promote Ethical and Responsible Decision Making

The Board actively promotes ethical and responsible decision making.

Code of Conduct

The Board has adopted a Code of Conduct that applies to all employees, executives and Directors of the Company, and as such complies with Recommendation 3.1 of the Corporate Governance Council. This Code addresses expectations for conduct in accordance with legal requirements and agreed ethical standards. A copy of the Code is available on the Company's website.

Security Trading Policy

The Board has committed to ensuring that the Company, its Directors and executives comply with their legal obligations as well as conducting their business in a transparent and ethical manner. The Board has adopted a policy and procedure on dealing in the Company's securities by directors, officers and employees which prohibits dealing in the Company's securities when those persons possess inside information, and as such complies with Recommendation 3.2 of the Corporate Governance Council.

The Company's Securities Trading Policy is available on the Company's website.

Corporate Governance Council Recommendation 4 Safeguarding Integrity in Financial Reporting

Audit Committee

The Board does not have a separate Audit Committee with a composition as suggested by Recommendations 4.1, 4.2 and 4.3 of the Corporate Governance Council. The full Board carries out the function of an audit committee. The Board believes that the Company is not of a sufficient size to warrant a separate committee and that the full Board is able to meet objectives of the best practice recommendations and discharge its duties in this area. The relevant experience of Board members is detailed in the Directors' section of the Directors' Report.

Financial Reporting

The Board relies on senior executives to monitor the internal controls within the Company. Financial performance is monitored on a regular basis by the Managing Director who reports to the Board at the scheduled Board meetings.

Corporate Governance Council Recommendation 5 Make timely and balanced disclosure

The Board reviews the performance of the external auditors on an annual basis and meets with them during the year to review findings and assist with Board recommendations.

In the absence of a formal audit committee the Directors of the Company are available for correspondence with the auditors of the Company.

Continuous Disclosure

The Board places a high priority on communication with Shareholders and is aware of the obligations it has, under the Corporations Act and ASX Listing Rules, to keep the market fully informed of information which is not generally available and which may have a material effect on the price or value of the Company's securities.

The Company has adopted policies which establish procedures to ensure that Directors and management are aware of and fulfill their obligations in relation to the timely disclosure of material price sensitive information. A copy of the Company's Disclosure Policy can be found on the Company's website.

Continuous disclosure is discussed at all regular Board meetings and on an ongoing basis the Board ensures that all activities are reviewed with a view to the necessity for disclosure to security holders.

In accordance with ASX Listing Rules the Company Secretary has been appointed as the Company's disclosure officer.

Corporate Governance Council Recommendation 6 Respect the Rights of Shareholders

Communications

The Board fully supports security holder participation at general meetings as well as ensuring that communications with security holders are effective and clear. This has been incorporated into a formal shareholder communication strategy, in accordance with Recommendation 6.1 of the Corporate Governance Council. A copy of the Company's Shareholder Communication Policy is available on the Company's website.

In addition to electronic communication via the ASX web site, the Company publishes all significant announcements together with all quarterly reports. These documents are available in both hardcopy on request and on the Company web site at www.blackridgemining.com

Shareholders are able to pose questions on the audit process and the financial statements directly to the independent auditor who attends the Company Annual General Meeting for that purpose.

Corporate Governance Council Recommendation 7 Recognise and manage risk

Risk Management Policy

The Board has adopted a risk management policy that sets out a framework for a system of risk management and internal compliance and control, whereby the Board delegates day-to-day management of risk to the Managing Director, therefore complying with Recommendation 7.1 of the Corporate Governance Council. The Board is responsible for supervising management's framework of control and accountability systems to enable risk to be assessed and managed. A copy of the Company's Risk Management Policy can be found on the Company's website.

The Company is committed to ensuring that sound environmental management and safety practices are maintained for its exploration activities. A copy of the Company's Environmental Policy is available on the Company's website. A copy of the Company's Occupational Health and Safety Policy is available on the Company's website.

The Company's risk management strategy is evolving and will be an ongoing process and it is recognised that the level and extent of the strategy will develop with the growth and change in the Company's activities.

Risk Reporting

As the Board has responsibility for the monitoring of risk management it has not required a formal report regarding the material risks and whether those risks are managed effectively therefore not complying with Recommendation 7.2 of the Corporate Governance Council. The Board believes that the Company is currently effectively communicating its significant and material risks to the Board and its affairs are not of sufficient complexity to justify the implementation of a more formal system for identifying, assessing monitoring and managing risk in the Company.

The Company does not have an internal audit function.

Managing Director and Company Secretary Written Statement

The Board requires that the Managing Director and the Company Secretary provide a written statement that the financial statements of the Company present a true and fair view, in all material aspects, of the financial position and operational results and have been prepared in accordance with Australian Accounting Standards and the Corporation Act. The Board also requires that the Managing Director and Company Secretary provide sufficient assurance that the declaration is founded on a sound system of risk management and internal control, and that the system is working effectively.

The declarations have been received by the Board, in accordance with Recommendation 7.3 of the Corporate Governance Council.

Corporate Governance Council Recommendation 8 Remunerate Fairly and Responsibly

Remuneration Committee

The Board has not created a separate Remuneration Committee and as such does not comply with Recommendation 8.1 of the Corporate Governance Council. The Board considers that the Company is not currently of a size, nor are its affairs of such complexity to justify a separate Remuneration Committee.

The executive director and senior executives receive salary packages which may include performance based components designed to reward and motivate. Non executive Directors receive fees agreed on an annual basis by the Board.

The full Board determines all compensation arrangements for Directors. It is also responsible for setting performance criteria, performance monitors, share option schemes, incentive performance schemes, superannuation entitlements, retirement and termination entitlements and professional indemnity and liability insurance cover.

The Board ensures that all matters of remuneration will continue to be in accordance with the Corporations Act requirements.

ASX ADDITIONAL INFORMATION

The following additional information is required by the Australian Securities Exchange Limited and was the status on 11 October 2010.

Shareholding

(a) Distribution of ordinary shareholders:

Category (size of Holdings)	Number ofOrdinaryShareholders	Number of Shares
1 - 1,000	22	11,611
1,001 - 5,000	133	439,643
5,001 - 10,000	190	1,727,732
10,001 - 100,000	514	24,913,037
100,001 - 9,999,999,999	485	439,486,338
Total	1,344	466,578,361

(b) The number of shareholders holding less than marketable parcels is 695.
(c) 20 largest shareholders at 11 October 2010 fully paid ordinary share capital.

Rank	Name	Units Heldat end ofperiod	% of IssuedCapital
1	MALACCA CAPITAL LIMITED	35,000,000	7.50
2	SA CAPITAL FUNDS MANAGEMENT LIMITED <sacfm 1="" a="" c="" fund="" no="">	30,000,000	6.43
3	NATWEST SECURITIES LIMITED	20,000,000	4.28
4	MR SHIZHEN LI	11,000,000	2.35
5	METROTEK NOMINEES PTY LTD	8,160,300	1.74
6	MALACCA CAPITAL LIMITED	7,000,000	1.50
7	MR TREVOR JOHN HODSHON	6,140,152	1.31
8	JAYVEE INVESTMENTS PTY LTD	6,000,000	1.28
9	MR STEPHEN CLARKE JONES	6,000,000	1.28
10	ROD PEARCE	5,000,000	1.07
11	MARKSAM PTY LTD	5,000,000	1.07
12	CARRINGTON ST INVESTMENTS PTY LTD	4,100,000	0.87
13	BIOMED TRUST LIMITED	3,900,000	0.83
14	AQUARIUS FUND MANAGERS PTY LTD	3,773,500	0.80
15	MR GORDON SINCLAIR HATCH & MRS REBEKAH JANE WILSON & MRBRUCE WILSON	3,750,000	0.80
16	MONACAN NOMINEES PTY LTD	3,696,802	0.79
17	JAYVEE INVESTMENTS PTY LTD	3,034,634	0.65
18	MR MATTHEW DERBYSHIRE	3,000,000	0.64
19	MR CHRIS CARR & MRS BETSY CARR	3,000,000	0.64
20	ROGON NOMINEES PTY LTD	3,000,000	0.64
	Top 20 holders of ORDINARY FULLY PAID SHARES at 11 October 2010	170,555,388	36.55

Option holding

(a) Distribution of option holders:

Range	Total Holders	Units
1 - 1,000	0	0
1,001 - 5,000	0	0
5,001 - 10,000	0	0
10,001 - 100,000	24	1,786,639
100,001 - 9,999,999,999	132	99,363,361
Total	171	101,150,000

(b) The number of option holders holding less than marketable parcels is 100.

Rank	Name	Units Heldat end ofperiod	% ofIssuedCapital
1	DR COLIN FREDERICK RAYNER	8,000,000	7.90
2	JAYVEE INVESTMENTS PTY LTD <jayvee a="" c="" pen="" sp="" –="">	5,798,267	5.73
3	VARGAS HOLDINGS PTY LTD	5,470,000	5.40
4	MR JOHN PHILLIP RAMONDINO	4,000,000	3.95
5	CS FOURTH NOMINEES PTY LTD	3,200,000	3.16
6	MR SERGIO CAVAIUOLO	3,000,000	2.96
7	MR TED MARCHESE	2,919,000	2.88
8	SA CAPITAL PTY LTD	2,410,000	2.38
9	UNICORN BAY PTY LTD	2,100,000	2.07
10	JACOBS CORPORATION PTY LTD	2,046,234	2.02
11	GREEN DRILLING PTY LTD	2,000,000	1.97
12	MR MICHAIL NIKOLAENKO	1,900,000	1.87
13	TORNADO NOMINEES PTY LTD	1,800,000	1.78
14	MRS CHRISTINE ANNE MIDDLETON	1,700 ,000	1.68
15	MRS KELLI SIMONE HUGO	1,650,000	1.63
16	OPTIMAL SYSTEMS AUSTRALIA PTY LTD	1,600,000	1.58
17	MR EDWARD COUTTS	1,538,000	1.52
18	KIAMA GROVE PTY LTD	1,450,000	1.43
19	MR MARIO SKALECKI & MRS CAROL ANNE SKALECKI	1,300,000	1.28
20	BOND STREET CUSTODIANS LIMITED	1,300,000	1.28
	Top 20 holders of OPTIONS EXP 30/11/2010 at 11 October 2010	55,181,501	54.55

(d) The names of the substantial shareholders listed in the Black Ridge Mining NL register as at 11 October 2010 were:

Shareholder	Ordinary Shares	% Held
SA Capital Funds Management Limited<sacfm 1="" a="" c="" fund="" no="">	30,000,000	6.43%

(e) Restricted securities

There are no restricted securities on issue by the company.

(f) Voting rights

No restrictions. On a show of hands every member or proxy present shall be entitled to one vote unless a poll is called in which case every share shall have one vote.

(g) On market buy back

There has been no on market buy back of the Company's shares during the financial year.

(h) Securities Exchange Listing

Quotation has been granted for all the ordinary shares, of the consolidated entity on all Member Exchanges of the Australian Securities Exchange Limited.

(i) Director's Interest in Equity

The interests of each director in the share capital of Black Ridge Mining NL as disclosed by the register of director's shareholdings.

	DIRECTOrdinaryShares	INDIRECTOptions	OrdinaryShares	Options
R Smith	-	3,000,000	7,490,523	1,375,000
G Hatch	300,000	-	3,987,000	3,250,000
A Middleton	-	-	41,508,000	6,735,000

Note: Direct holdings are those held in the individuals name, indirect holdings are all other holdings controlled by the individual.

(j) Schedule of Tenements:

Project	Tenement Details	Interest %
Western Australia
Unaly Hill	E57/420	100
Unaly Hill	E57/817	100

AI assistant

SUREFIRE RESOURCES NL — Annual Report 2010

65857_rns_2010-10-21_0a43ee46-0ea9-4c44-9dc1-70aa8b05f029.pdf

Annual Financial Report 2010

CORPORATE DIRECTORY

BLACK RIDGE MINING NL ABN 48 083 274 024

Directors

Company Secretary

Registered Office

Share Registry

Auditors

Solicitors

Bankers

Stock Exchange Listing

DIRECTORS' REPORT

DIRECTORS

Directorships of other listed companies

OTHER OFFICERS

PRINCIPAL ACTIVITIES

OPERATING RESULTS

REVIEW OF OPERATIONS

Western Australia – E57/420 (Unaly Hill)

Cross section of mineralization in diamond hole UH4

Table 1: Davis Tube Recovery concentrate results

Vanadium Grade in Concentrate

Table 2: Unaly Hill / Windimurra vanadium in concentrate comparison

Western Australia - Meteoric Resources NL – E57/760

Western Australia - P57/1268

Overseas Opportunities

FINANCIAL POSITION

DIVIDENDS

LIKELY DEVELOPMENTS AND FUTURE RESULTS

SIGNIFICANT CHANGE IN STATE OF AFFAIRS

Issue of Shares

SIGNIFICANT EVENTS SUBSEQUENT TO BALANCE DATE

OPTIONS

REMUNERATION REPORT (AUDITED)

Remuneration Policy

Remuneration Committee

Non-Executive Director and Executive Remuneration

Details of Executives - Employment Contracts

Reward for Performance

Key Management Personnel Positions

Options granted as part of remuneration

(END OF REMUNERATION REPORT)

DIRECTORS' INTERESTS

DIRECTORS' MEETINGS

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

CORPORATE GOVERNANCE

ENVIRONMENTAL REGULATION AND PERFORMANCE

PROCEEDINGS ON BEHALF OF THE COMPANY

AUDITOR INDEPENDENCE

NON-AUDIT SERVICES

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 30 JUNE 2010

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2010

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF CHANGES IN EQUITY YEAR ENDED 30 JUNE 2010

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES STATEMENT OF CASH FLOWS YEAR ENDED 30 JUNE 2010

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2010

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

(b) Statement of Compliance

(c) Principles of Consolidation

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(d) Income Tax

(e) Financial Instruments

Recognition

Loans and receivables

Impairment

(f)Exploration and Evaluation Expenditure

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(g) Foreign Currency Transactions and Balances

Functional and presentation currency

Transaction and balances

(h) Provisions

(i) Cash and Cash Equivalents

(j) Revenue

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)

(k) Goods and Services Tax (GST)

(l) Shares

(m) Other Current Receivables

SUREFIRE RESOURCES NL Annual Report 2010