SUREFIRE RESOURCES NL — Interim / Quarterly Report 2007

Feb 27, 2007

GENESIS FEIOWEDIGATE

ABN 48 083 274 024 Level 1, 248 Hay Street, SUBIACO WA 6008 Telephone 61 8 9381 6922 Facsimile 61 8 9381 6060

Companies Announcements Office Australian Stock Exchange Level 4 20 Bridge Street SYDNEY NSW 2000

28 February 2007

Dear Sir,

Please find attached the Company's interim results for the year 2006/07 year, for immediate release to the market.

Included in this announcement are ASX Appendix 4D and Half Yearly Report for the period 31 December 2006.

Yours faithfully

Semmens

DAVID J SEMMENS Company Secretary Att.

Appendix 4D

Half Year Report Period Ended 31 December 2006 Results for announcement to the Market

Summary	Consolidated
Information	31 Dec 06	31 Dec 05	Inc/Dec	Inc/Dec
	$	Ъ		%
Loss after Tax	(701, 326)	(313, 875)	(387, 451)	$-123%$
from Ordinary
Activities
Loss after Tax	(701, 326)	(313, 875)	(387, 451)	$-123%$
Attributable to
Members
Basic Earnings -	(0.42)	(0.36)	(0.06)	17%
Cent per Share
Net Tangible	1.02	0.87	0.15	17%
Assets – Cents
per Share
Dividends Paid	Nil	Nil	×,	$\epsilon$

GENESIS BIOMEDICAL LTD ACN 083 274 024

And Its Controlled Entities

HALF-YEAR FINANCIAL REPORT 31St DECEMBER 2006

GENESIS BIOMEDICAL LTD ABN 48 083 274 024

Interim Report - 31 December 2006

Contents

Directors' Report
Lead Auditor's Independence Declaration
Directors' Declaration
Interim Financial Report
Consolidated Condensed Income Statement	5
Consolidated Condensed Recognised Income and Expenditure
Consolidated Condensed Income Sheet
Consolidated Condensed Statement of Cash Flows
Notes to the Financial Statements	0
Independent Review Report to the Members	13

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2006 and any public announcements made by Genesis Biomedical Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Your directors submit their report together with the consolidated financial report for the half-year ended 31 December 2006 and the review report thereon.

Directors

The Directors of the company during or since the end of the half-year are:

Name	Period of directorship
Rodger Johnston	Non-Executive Chairman, appointed 7 December 2005
Don Valentino	Managing Director, appointed 25 May 2006
Roger Smith	Non-Executive Director, appointed 21 February 2005
Russell Black	Non-Executive Director, appointed 28 November 2005

Operating and Financial Review

Result of Operations

The consolidated loss from ordinary activities of the Company and its controlled entities for the half year ended 31 December 2006 was $701,326 (31 December 2005 - $313,875)

Review of Operations

Summary

The half year to 31 December 2006 was a period of continuing activity for the company. Review and evaluation of existing commercial activities as well as the identification and assessment of new opportunities for the company has been the focus of half year.

Manawatu Biotechnology Investment Limited (MBIL)

As previously disclosed, MBIL is awaiting the finalization of a capital raising which will raise sufficient funds to repay GBL's outstanding loan as well as to provide ongoing development and working capital.

Commercial Opportunities

The company reviewed a number of opportunities during the half year.

A Confidentiality Agreement signed with a potential provider of topical treatment for a relatively common skin disease was subject to a risk analysis and "market ready" assessment. Subsequently, as a result of the risk analysis and assessment, the Board resolved not to proceed with the proposal.

During the latter half of fiscal 2006 a project was sourced by the company. The basis of the project is well known to be a major contributor to health costs in Australia and indeed worldwide.

A Confidentiality Agreement was signed following an assessment, evaluation and satisfactory early stage negotiations in relation to the sourced science.

We are hopeful that continuing dialogue in conjunction with ongoing investigations will result in an agreement to proceed being concluded during the first quarter of fiscal 2007 or early in the second quarter.

The company continues to seek in additional to specific sectors, broad based investment opportunities that have the potential for enhancing shareholder wealth.

Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

The lead auditor's independence declaration is set out on the next page and forms part of the Directors' Report for the half year ended 31 December 2006.

Signed in accordance with a resolution of the directors

$ol(\mathbb{Z})$

D VALENTINO Managing Director

Dated at Perth this 28th day of February 2007.

$\overline{1}$

K.WESTAWAY & ASSOCIATES

CHARTERED ACCOUNTANTS

AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF GENESIS BIOMEDICAL LIMITED

I declare that, to the best of my knowledge and belief, in relation to the review for the financial period ended 31 December, 2006, there have been:

• no contraventions of the auditor independence requirements as set out in the $(i)$ Corporations Act 2001 in relation to the review; and
• $(ii)$ no contraventions of any applicable code of professional conduct in relation to the review.

Dated at Perth this 28th day of February, 2007

K. WESTAWAY FCA PRINCIPAL K. WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS

Saite 7, 29 Hood Street, Subiaco, WA 6008 | PO Box 1936, Subiaco, WA 6904 Plsone: (08) 6380 2300 ; Fax: (08) 9382 3884 | Email: kelvin_westaway@linq.net.au Kelvin Westaway

The directors of Genesis Biomedical Ltd declare that:

• (a) the financial statements and notes, set out on pages 5 to 12, are in accordance with the Corporations Act 2001, including:
  • giving a true and fair view of the financial position of the consolidated entity as at 31 $(i)$ December 2006 and of its performance, as represented by the results of its operations and cash flows for the half-year ended on that date; and
  • $\langle \hat{n} \rangle$ complying with Australian Accounting Standard AASB 134 "Interim Financial Reporting" and the Corporations Regulations 2001; and
• (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors.

Analest

D VALENTINO Managing Director

Dated at Perth this 28th day of February 2007

	Consolidated
	31December	31December
	2006	2005
	$	$
Other revenues	16,574
Financial income	56,566	19,716
	73,140	19,716
Expenses
Administration expenses	774,466	333,591
Total expenses	774,466	333,591
Loss before income tax expense	(701, 326)	(313, 875)
Income tax expense	$\epsilon$
Net loss for the period	(701, 326)	(313, 875)
Earnings per share
Basic loss per share (cents per share)	(0.42)	(0.36)

The company's potential ordinary shares are not considered dilutive and accordingly basic loss per share is the same as diluted loss per share.

The income statement should be read in conjunction with the accompanying notes.

	Consolidated
	31	31
	December	December
	2006	2005
	$	$
Net income (expense) recognised directly in equity	$\cdots$	$\overline{\phantom{a}}$
Loss for the period	(701,326)	(313, 875)
Total recognised income and expense for the period	(701,326)	(313,875)

Other movements in equity arising from transactions with owners as owners are set out in note 6.

The statement of recognised income and expense should be read in conjunction with the accompanying notes.

	Consolidated
	31December2006	30June2006
Current Assets
Cash and cash equivalents	1,758,125	2,196,313
Receivables	12,541	23,685
Security deposits	41,480	41,480
Total Current Assets	1,812,146	2,261,478
Non-Current Assets
Property, plant & equipment	151,340	37,288
Total Non-Current Assets	151,340	37,288
Total Assets	1,963,486	2,298,766
Current Liabilities
Payables	129,959	116,315
Interest bearing liabilities	23,393
Total Current Liabilities	153,352	116,315
Non-Current Liabilities
Interest bearing liabilities	112,419	$\tilde{\mathcal{L}}$
Total Non-Current Liabilities	112,419
Total Liabilities	265,771	116,315
Net Assets	1,697,715	2,182,451
Equity
Issued capital	15,531,985	15,531,985
Reserves	216,590
Accumulated losses	(14,050,860)	(13,349,534)
Total Equity	1,697,715	2,182,451

The balance sheet should be read in conjunction with the accompanying notes.

	Consolidated
	31December2006$	31December2005$
Cash flows from operating activities
Cash receipts from customers	16,574	7,766
Payments to suppliers and employees	(505,006)	(199, 173)
Cash used in operations	(488, 432)	(191, 407)
Interest received	56,566	19,716
Net cash used in operating activities	(431, 866)	(171, 691)
Cash flows from investing activitiesAcquisitions of property, plant and equipmentLoans made to MBIL	(142, 134)	(305, 403)
Net cash used in investing activities	(142, 134)	(305, 403)
Cash flows from financing activities
Proceeds from issue of equity securities
Proceeds from borrowings	142,261
Repayment of borrowings	(6,449)
Net cash provided by financing activities	135,812
Net increase/(decrease) in cash and cash equivalents	(438, 188)	(477, 094)
Cash and cash equivalents at beginning of half-year	2,196,313	1,063,492
Cash and cash equivalents at end of half year	1,758,125	586,398

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

1. Reporting Entity

Genesis Biomedical Ltd (the "Company"), is a company domiciled in Australia. The consolidated half year financial report of the Company for the six months ended 31 December 2006 comprise the Company and its subsidiaries (together referred to as the "consolidated entity").

2. Statement of Compliance

The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards AASB 134 Interim Financial Reports and the Corporations Act 2001.

The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the consolidated entity for the year ended 30 June 2006.

This consolidated interim financial report was approved by the Board of Directors on the date the directors' report and declaration were signed.

3. Significant Accounting Policies

The accounting policies applied by the consolidated entity in this consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated financial report for the year ended 30 June 2006.

In the prior financial year the consolidated entity adopted AASB 132 Financial Instruments: Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and Measurement in accordance with the transitional rules of AASB 1. This change has been accounted for by adjusting the opening balance of retained earnings and reserves at 1 July 2005, as disclosed in earlier reports.

4. Estimates

The preparation of the interim financial report requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing this consolidated interim financial report, the significant judgments made by management in applying the consolidated entity's accounting policies and key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2006.

5. Financial Risk Management

Aspects of the consolidated entity's financial risk management objectives and policies are consistent with that disclosed in the consolidated financial report for the year ended 30 June 2006.

6. Issued Capital and Reserves

(i) Issued Capital

	Consolidated
	31 December2006$	31 December2005$
Total Issued Capital at beginning of period	15,531,985	13,272,985
Ordinary Shares - Fully Paid
Fully paid ordinary shares at 30 June 2006:166,650,003 (30 June 2005: 86,550,003)	15,531,985	13,272,985
Issuance of ordinary fully paid shares during the period:Nil (2005: Nil)
Transaction costs of issuing shares
166,650,003 fully paid ordinary shares at 31 December2006 (31 December 2005: 86,550,003)	15,531,985	13,272,985
Total Issued Capital at end of period	15,531,985	13,272,985

Notes

Ordinary shares participate in dividends and the proceeds on winding up of the Parent Entity in proportion to the number of shares held and the amounts paid on shares.

At shareholder meetings when a poll is called each ordinary share is entitled to one vote or proportion thereof in respect of partly paid shares, otherwise each shareholder has one vote on a show of hands.

(ii) Share Based Payments Reserve

Share based payments reserve comprises the consideration received for the issue of options over unissued ordinary shares of the Company and the fair value of options over unissued ordinary shares granted as employee remuneration until the options are exercised or expire.

Unlisted Options to take up Ordinary Shares in the Company (exercisable up to expiry date $(a)$ of 31 December 2011 for a price of $0.10 each)

Balance at beginning of period: Nil (2005: Nil)
Issuance of this class of options during the period:10,500,000 (2005: Nil)	202,650
Balance at end of period: Nil (2005: Nil)	202,650

$(b)$ Unlisted Options to take up ordinary shares in the Company (exercisable up to various expiry dates of 31 December 2007 to 31 December 2010 for a price of $0.04 each)

Balance at beginning of period: Nil (2005: Nil)	$\blacksquare$
Issuance of this class of options during the period:$5,100,000$ (2005: Nil)	13.940
Balance at the end of period: 5,100,000 (2005: Nil)	13.940
Total Share Based Payments Reserve at end of period	216,590

Share Based Payments

The terms and conditions of the grants made during the six months ended 31 December 2006 are as follows:

$(a)$ Unlisted Options to take up Ordinary Shares in the Company (exercisable up to expiry date of 31 December 2011 for a price of $0.10 each)

Grant Date	Number of Instruments
Option grant at 19 December 2006	10,500,000

Fair value of share options and assumptions for the six months ended 31 December 2006:

Fair value at grant	$202,650
Share price	$0.037$ cents
Exercise price	$0.10$ cents
Expected volatility (expressed as weighted average volatility used in the modelling
under Black Scholes option pricing model)	109.25%
Option life (expressed as weighted average life used in the modelling under Black
Scholes option pricing model)	5 years
Expected dividends	$0%$
Risk-free interest rate (based on government bonds)	$0%$

The basis of measuring fair value is consistent with that disclosed in the consolidated financial report for the year ended 30 June 2006.

$(b)$ Unlisted Options to take up Ordinary Shares in Company (exercisable up to various expiry dates of 31 December 2007 to 31 December 2010 for a price of $0.04 cents each)

Grant Date	Number of Instruments
Option grant at 19 December 2006	5,100,000

Fair value of share options and assumptions for the six months ended 31 December 2006:

Fair value at grant	$13,940
Share price	$0.037$ cents
Exercise price	$0.04$ cents
Expected volatility (expressed as weighted average volatility used in the modelling
under Black Scholes option pricing model)	109.25%
Option life (expressed as weighted average life used in the modelling under Black
Scholes option pricing model)	$1.03-5$ years
Expected dividends	0%
Risk-free interest rate (based on government bonds)	$6.11 - 5.94%$

The basis of measuring fair value is consistent with that disclosed in the consolidated financial report for the year ended 30 June 2006.

7. Accumulated Losses

Accumulated losses at beginning of half-year	13.349.534	12,204,433
Net losses attributable to members of the parent entity	701.326	313.875
Accumulated losses at the end of the half-year	14.050.860	12,518,308

8. Acquisition and Disposal of Controlled Entities

The consolidated entity did not gain or lose control over any entities during the half-year period or the corresponding prior half-year.

9. Segment Information

The consolidated entity operates in one industry, medical technology, and one geographical segment, Australia.

10. Related Parties

Transactions with key management personnel

Key management personnel receive compensation in the form of short-term employee benefits, post-employment benefits and share-based payments.

11. Contingent Liabilities

The Directors are not aware of any material contingent liability as at the date of these financial statements.

12. Subsequent Events

There has not arisen in the interval between the end of the financial half-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 significantly the operations of the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity, in subsequent financial periods.

K.WESTAWAY & ASSOCIATES

CHARTERED ACCOUNTANTS

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF GENESIS BIOMEDICAL LIMITED

Report on the Half-Year Financial Report

I have reviewed the accompanying half-year financial report of Genesis Biomedical Limited and its controlledentities which comprises the consolidated confensed balance sheet as at 31 December, 2006, and the consolidated condensed income statement, consolidated condensed statement of recognised income and expense and consolidated condensed cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors declaration.

Directors Responsibility for the Half -- Year Financial Report

The directors of the Company are responsible for the preparation and fair presentation of the half-year financial renort in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

My responsibility is to express a conclusion on the half year financial report based my review. I conducted myreview in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, I have become aware of any matter that makes me believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity's financial position as at 31 December, 2006 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Genesis Biomedical Limited and its controlled entities, ASRE 2410 requires that I comply with the ethical requirements relevant to the audit of the financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable me to obtained assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly, I do not express an audit opinion.

Independence

In conducting my review, I have complied with the independence requirements of the Corporations Act 2001. I confirm that the independence declaration required by the Corporations Act 2001, has been provided to the directors of Genesis Biomedical Limited and its controlled entities on 28 February, 2007.

Conclusion

Based on my review, which is not an audit I have not become aware of any matter that makes me believe that the half-year report of Genesis Biomedical Limited and its controlled entities is not in accordance with the Corporations Act 2001 including:

• giving a true and fair view of the consolidated entity's financial position as at 31 December, 2006 ${a}$ and of its performance for the half-year ended on that date; and
• complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporation $(b)$ Regulations 2001.

Dated at Perth this 28th day of February, 2007.

K. WESTAW PRINCIPAL

K. WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS

Suite 7, 29 Hood Street, Subinco, WA 6008 | PO Box 1936, Subiaco, WA 6904 Phone: (08) 6380-2300 · Fax: (08) 9382-3884 | Email: Relvin_westaway@linq.net.au Kelvin Westaway