SUREFIRE RESOURCES NL — Interim / Quarterly Report 2011

Mar 14, 2011

BLACK RIDGE MINING NL ACN 083 274 024

HALF-YEAR FINANCIAL REPORT 31St DECEMBER 2010

BLACK RIDGE MINING NL ABN 48 083 274 024

Half Year Financial Report - 31 December 2010

Contents

Directors' Report	2
Lead Auditor's Independence Declaration	4
Directors' Declaration	5
Condensed Consolidated Statement of Comprehensive Income	6
Condensed Consolidated Statement of Financial Position	7
Condensed Consolidated Statement of Changes in Equity	8
Condensed Consolidated Statement of Cash Flows	9
Notes to the Condensed Financial Statements	10.
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 2010 and any public announcements made by Black Ridge Mining NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

DIRECTORS' REPORT

Your directors submit their report together with the consolidated financial report for the half-year ended 31 December 2010 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
Roger Smith	Non-Executive Chairman. Appointed as a Director on 21 February 2005.
	Appointed as Chairman on 18 September 2009.
Gordon Hatch	Managing Director. Appointed as a Director on 18 September 2009. Appointed as
	Managing Director on 31 January 2010. Resigned as Managing Director on 28
	February 2011.
Angus Middleton	Appointed as a Director on 1 January 2010.
Vladimir Nikolaenko	Appointed as a Director on 4 February 2011.
Alan Winduss	Appointed as a Director on 4 February 2011.

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 2010 was $624,216 (31 December 2009 - $461,149)

Review of Operations

Western Australia - E57/420 (Unaly Hill) (100%)

The magnetite-vanadium-titanium mineralization at Unaly Hill is associated with a pronounced aeromagnetic anomaly which can be traced for about 11 kms in the exploration licence. This anomaly extends for at least 2 kms south along the strike zone into the neighbouring tenement held by Meteoric Resources NL (Meteoric), with whom the Company hold a Farmin and Joint Venture Agreement.

The Unaly Hill drilling programme comprised 13 Reverse Circulation holes form a total of 2,066 metres. Drilling was designed primarily to test both the continuity and grade of magnetite and vanadium mineralisation present within a major north-south trending magnetic survey. The anomaly was detected from the interpretation and 3D modeling of detailed airborne magnetics. To date, this major anomaly has been traced over a strike length of some 14 kms, of which, at least 11 kms fall within E57/420. Some 7.5 kms of this anomaly still remains to be tested.

Given the encouraging results of the drilling programme, the Company is undertaking desktop modelling to further evaluate the area and is looking to appoint a consultant to design and supervise a drilling programme to allow a mineral resource to be quantified.

Four Corners Well - E57/760

In addition to the Unaly Hill evaluation, the results of the exploratory drilling holes undertaken on the E57/760 tenement owned by Meteoric were most encouraging.

The agreement with Meteoric sets out terms under which the Company could earn up to 60% interest in E57/760 by spending $1,000,000 on exploration over a three year period and if required, an additional 10% by spending a further $500,000 within a further year. The first stage of the option with Meteoric encompassed spending $100,000 within 6 months of signing the agreement, as a preliminary investigation, prior to committing to a Joint Venture.

The initial funding of $100,000 for exploratory investigation was completed within the combined Unaly Hill / Four Corners Well programme and results are being scrutinized with all assays of that programme.

Subsequent to the end of the reporting period, the Company has exercised their option to enter into the Joint Venture with Meteoric and the initial three year term, by joint agreement, has been extended to six years. It is expected that further exploration will be carried out in the latter half of 2011.

DIRECTORS' REPORT

Corporate

On 15 October 2010, the Company completed a Placement to sophisticated investors of 137,000,000 shares at an issue price of $0.0074 cents per share to raise $1,013,800 before costs of the issue 100.000.000 of the shares were issued pursuant to the approval granted by shareholders at the General Meeting of the Company held on 23rd August 2010. The other 37,000,000 shares were issued under the 15% capacity available to the Company in accordance with ASX Listing Rule 7.1 and were subsequently ratified at the AGM held on 22nd November 2010.

The funds raised from the issue will be applied to ongoing exploration and evaluation programmes, evaluation and acquisition of new opportunities, corporate and administrative activities and working capital and the costs of the issue.

101,150,000 listed options exercisable at 3 cents each were not exercised by the due date of 30 November 2010 and therefore lapsed. 1,700,000 unlisted options exercisable at 4 cents each were not exercised by the due date of 31 December 2010 and therefore lapsed.

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 2010.

Signed in accordance with a resolution of the directors.

ff be

Alan Winduss Director

Dated at Perth this 15th day of March 2011.

96 Parry Street, Perth WA 6000 P.O. Box 8716, Perth Business Centre WA 6849 Phone (08) 9227 0552 www.rothsay.com.au

The Directors Black Ridge Mining NL Level 1, 47 Ord St West Perth WA 6005

Dear Sirs

In accordance with Section 307C of the Corporations Act 2001 (the "Act") I hereby declare that to the best of my knowledge and belief there have been:

• no contraventions of the auditor independence requirements of the Act in $i)$ relation to the audit review of the 31 December 2010 interim financial statements; and
• no contraventions of any applicable code of professional conduct in relation $\overline{ii}$ to the review.

Graham R Swan (Lead auditor)

Rothsay Chartered Accountants

Dated $\sqrt{5}$ March 2011

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW).

The directors of Black Ridge Mining NL declare that:

• (a) the financial statements and notes, set out on pages 6 to 12, are in accordance with the Corporations Act 2001, including:
  • giving a true and fair view of the financial position of the economic entity as at 31 $(i)$ December 2010 and of its performance for the half-year ended on that date; and
  • complying with Australian Accounting Standard AASB 134 "Interim Financial $(ii)$ 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.

of be $\overbrace{\hspace{4.5cm}}^{}$

Alan Winduss Director

Dated at Perth this 15th day of March 2011.

		Consolidated
	31December2010$	31December2009$
Other revenuesFinancial income	22,49322,493	34,83834,838
ExpensesAdministrationDepreciationEmployee expenseExploration expenditureFinance costsOccupancy expenses	154,6112,000155,849299,50434,745646,709	207,1822,117139,067131,84115,780495,987
Loss before income tax expense	(624, 216)	(461, 149)
Income tax expense
Net loss for the period	(624,216)	(461, 149)
Earnings per share
Basic loss per share (cents per share)	(0.06)	(0.12)

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 above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2010

Black Ridge Mining NL

		Consolidated
	31 December2010$	30 June2010$
Current AssetsCash and cash equivalentsTrade and other receivablesFinancial assets	895,34436,977	574,790
Other		30,471
Total Current Assets	932,321	605,261
Non-Current AssetsProperty, plant & equipmentExploration expenditure	17,710147,068	19,710147,068
Total Non-Current Assets	164,778	166,778
Total Assets	1,097,099	772,039
Current LiabilitiesTrade and other payablesShort term provisionsTotal Current Liabilities	35,60912.36347,972	43,00512.36355,368
Total Liabilities	47,972	55,368
Net Assets	1,049,127	716,671
EquityIssued capitalReservesAccumulated losses	18,857,432236,750(18,045,055)	17,900,760236,750(17, 420, 839)
Total Equity	1,049,127	716,761

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half-year ended 31 December 2010

Black Ridge Mining NL

Consolidated	ShareCapital	AccumulatedLosses	Reserves	Total
Balance at 1 July 2009	16,568,360	(16, 461, 509)	223,350	330,201
Shares issued during the year	824,200			824,200
Share based payments			13,400	13,400
Net loss recognised directly in equity		(461, 149)		(461, 149)
Share issue costs	(31, 800)			(31, 800)
Balance as at 31 December 2009	17,360,760	(16, 922, 658)	236,750	674,852
Balance at 1 July 2010	17,900,760	(17, 420, 839)	236,750	716,671
Shares issued during the year	1,013,800			1,013,800
Share based payments			--
Net loss recognised directly in equity		(624, 216)		(624, 216)
Share issue costs	(57, 128)			(57, 128)
Balance as at 31 December 2010	18,857,432	(18, 045, 055)	236,750	1,049,127

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the half-year ended 31 December 2010

Black Ridge Mining NL

		Consolidated
	31 December2010$	31 December2009$
Cash flows from operating activitiesCash receipts from customersPayments to suppliers and employeesCash used in operationsFinance costsInterest received	(652, 271)(652, 271)11,163	(374, 488)(374, 488)6,325
Net cash used in operating activities	(641, 108)	(368, 163)
Cash flows from investing activitiesProceeds from sale of held for trading investmentsAcquisition of other non current assetsAcquisition of other current assetsNet cash used in investing activities		43,31343,313
Cash flows from financing activitiesProceeds from issue of equity securitiesShare Issue costsProceeds from borrowingsRepayment of borrowings	1,013,800(57, 128)	824,200(31, 800)
Net cash provided by financing activities	956,672	792,400
Net increase/(decrease) in cash and cashequivalents	320,554	467,550
Cash and cash equivalents at beginning of halfyear	574,790	158,671
Cash and cash equivalents at end of half year	895,344	626,221

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

Note 1: Basis of Preparation of the Half-Year Financial Report

This general purpose condensed financial report for the half year ended 31 December 2010 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

It is recommended that the half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and considered with any public announcements made by Black Ridge Mining NL during the half-year ended 31 December 2010 in accordance with continuous disclosure obligations of the ASX Listing Rules.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

The half-year report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the Company's annual financial report for the financial year ended 30 June 2010.

In the half year ended 31 December 2010, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2010.

It has been determined by the Company that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to the Company's accounting policies.

The half year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected financial assets and financial liabilities for which the fair value basis of accounting has been applied.

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 half year ended 31 December 2010 the consolidated entity incurred a loss of $624,216 and an operating cash outflow of $641,108. If the Company is unable to continue as a going concern, then it may be required to realise its assets and extinguish its liabilities, other than in the normal course of business, and at different amounts from those stated in the financial report. The Directors hold the view that Black Ridge Mining NL has adequate cash reserves, funding opportunities and prospects to allow it to pay its debts as and when they fall due, and thus the Directors believe that it is appropriate to prepare the financial report on a going concern basis

Note 2: Segment Reporting

The Company operates in predominantly in one business and geographical segment, being mineral exploration in Australia

NOTES TO THE CONDENSED FINANCIAL STATEMENTS For the half-year ended 31 December 2010

Black Ridge Mining NL

Note 3: Issued Capitala) Composition			31December2010$	30June2010$
603,578,361 Fully paid ordinary shares(30 June 2010: 461,578,361)			18,857,432	17,900,760
b) Movement in shares on issue	Shares31December2010	Shares30June2010	31December2010S	30June2010S
- Opening balance- Fully paid ordinary shares issued duringthe period	466,578,361137,000,000	277, 158, 361189,420,000	17,900,7601,013,800	16,568,360824,200
- Less expenses of the issue			(57, 128)	(31,800)
Issued capital at the end of the financial period	603,578,361	466,578,361	18,857,432	17,900,760

c) Share Options

On 30 November 2010, 101,150,000 listed options that were exercisable at 3 cents each expired.

On 31 December 2010, 1,700,000 unlisted options that were exercisable at 4 cents each expired.

As at 31 December 2010, there are 13,500,000 (30 June 2010: 116,350,000) unissued ordinary shares in respect of which options were outstanding comprising:

Number of Options		Exercise Price	Expiry Date
	10,500,000	unlisted	0.10	31 December 2011
	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

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.

	31 December2010	30 June2010
d) Option Reserve
Opening balance	236,750	223,350
Share based payments		13,400
Transfer to accumulated losses
	236,750	236,750

On 24 November 2009, 3,000,000 unlisted options were issued to Mr Gordon Hatch, the then Managing Director of the Company. The fair value of the options was measured at grant date using the Binomial Option Pricing Model.

Note 4: Dividends

No dividends were paid or proposed during the half year ended 31 December 2010.

Note 5: Contingent Liabilities and Contingent Assets

The economic entity has the same contingent liabilities and commitments outstanding at 31 December 2010 that it had at 30 June 2010.

Note 6: Events Subsequent to Reporting Date

On 18 January 2011, the Company exercised its option to enter into a Joint Venture with Meteoric Resources NL on the Four Corners Well tenement (E57/760) and the initial three year term, by joint agreement, was extended to six years.

On 4 February 2011, the Company appointed Mr. Vladimir Nikolaenko and Mr. Alan Winduss as Non-Executive Directors.

On 28 February 2011, the Company accepted the resignation of the Managing Director and Chief Executive Officer, Mr. Gordon Hatch.

There have been no other matters or circumstances that have arisen since 31 December 2010 that has significantly affected or may significantly affect:

• (a) the economic entity's operations in future years: or
• (b) the results of those operations in future vears; or
• (c) the economic entity's state of affairs in future years.

96 Parry Street, Perth WA 6000 P.O. Box 8716, Perth Business Centre WA 6849 Phone (08) 9227 0552 www.rothsay.com.au

Independent Review Report to the Members of Black Ridge Mining NL

The financial report and directors' responsibility

The interim consolidated financial report comprises the statement of financial position, statement of comprehensive income, statement of changes in equity, cashflow statement, accompanying notes to the financial statements, and the directors' declaration for Black Ridge Mining NL for the half-year ended 31 December 2010.

The Company's directors are responsible for the preparation and fair presentation of the consolidated financial report in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted our review 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, we have become aware of any matter that makes us believe that the interim consolidated financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated financial position as at 31 December 2010 and the performance for the half year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of Black Ridge Mining NL, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim consolidated financial report of Black Ridge Mining NL is not in accordance with the Corporations Act 2001, including:

• giving a true and fair view of the consolidated financial position as at 31 December 2010 and of the performance for the half-year ended on that date; and
• complying with Australian Accounting Standard AASB134 Interim Financial Reporting and the Corporations Regulations 2001.

Rothsay

Graham R Swan Partner

Liability limited by the Accountants Scheme, approved under the Professional Standards Act 1994 (NSW).