SUREFIRE RESOURCES NL — Interim / Quarterly Report 2013

Mar 17, 2013

BLACK RIDGE MINING NL ABN 48 083 274 024

INTERIM FINANCIAL REPORT 31 DECEMBER 2012

This report should be read conjunction with the Annual Report of the Company for the period ended 30 June 2012

CORPORATE DIRECTORY

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2012 1 July 2012 to 31 December 2012

Board of Directors Auditors

Mr Alan Winduss – Non-executive Chairman Mr Vladimir Nikolaenko – Non-executive Director Mr Robert Molkenthin – Executive Director

Company Secretary

Mr Stuart Third (Appointed 12 September 2012) Mr David Semmens (Resigned 12 September 2012)

Registered Office

Level 1, 47 Ord Street WEST PERTH WA 6005 Phone: +61 8 9322 7822 Fax: + 61 8 9322 7823 Email: info@blackridgemining.com www.blackridgemining.com

Banker

National Australia Bank Limited 226 Main Street OSBORNE PARK WA 6017

Rothsay Chartered Accountants Level 18, Central Park Building 152-158 St Georges Terrace PERTH WA 6000 Phone: + 61 8 6364 5076

Solicitors

Steinepreis Paganin Level 4 The Read Buildings 16 Milligan Street PERTH WA 6000 Phone: + 61 8 9321 4000 Fax: + 61 8 9321 4333

Share Registry

Advanced Share Registry 150 Stirling Highway NEDLANDS WA 6009 Phone: +61 8 9389 8033 Fax: + 61 8 9389 7871

Stock Exchange Listing

Australian Securities Exchange Black Ridge Mining NL ASX Code: BRD

CONTENTS

DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	6
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	7
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	8
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	9
CONSOLIDATED STATEMENT OF CASH FLOWS	10
NOTES TO THE FINANCIAL STATEMENTS	11
DIRECTORS' DECLARATION	16
INDEPENDENT AUDITOR'S REPORT	17

DIRECTORS' REPORT

Your directors submit their report for the Company and its controlled entities ("the Consolidated Entity" or "Group") for the half year ended 31 December 2012.

DIRECTORS

Directors of the Company at any time during or since the end of the half year are:

Alan Winduss	Non-Executive Chairman
Vladimir Nikolaenko	Non-Executive Director
Robert Molkenthin	Executive Director

PRINCIPAL ACTIVITIES

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

OPERATING RESULTS

As disclosed in the financial statements, the Company recorded a consolidated loss of \$407,677 (2011 \$576,364) for the half year to 31 December 2012.

REVIEW OF OPERATIONS

Mutnovskaya Gold and Silver project, Far Eastern Russia

In December, the Company announced that it had secured due diligence rights in the Mutnovskaya gold-silver epithermal deposit ("the Project") on the Kamchatka Peninsula of Far Eastern Russia. The Project is favourably situated 90km from the port city of Petropavlovsk-Kamchatsky and 2km from an underutilised geothermal power station

Due diligence and desktop evaluation of geological data has commenced is expected to be completed during the 1st Quarter 2013 upon which formal documentation will be entered into.

The Project is located in the South-eastern tip of the Kamchatka Peninsula only 5km away from the Sea of Okhotsk and is comparatively well served by infrastructure.

The main access for land freight to the project area will be from the port facilities at Petropavlovsk-Kamchatsky (the capital city of Kamchatka) which is located only 60km to the north of the project area. Petropavlovsk-Kamchatsky town and Mutnovskaya are connected by a combined targravel all-season road for a total distance of 90km. The nearest village to the license area is Thermal some 45km to the north and is served by a gravel all-season road.

Figure 1: Location

DIRECTORS' REPORT

Figure 2: All season road Figure 3: Geothermal Power Station

A distinct advantage of the project location is its proximity to the Upper-Mutnovskaya Geothermal Station, which is only 2km to the west. The project already has secured a contract to draw power for running all mining operations, but at present the power output of the station is only 50% of capacity, giving the project potential access to extra power if demand so requires.

The Project has received a State approved TEO (which is broadly the Russian equivalent of a Pre-Feasibility Study) and includes the environmental approvals for the development of an underground, high-grade gold-silver mine with a 9 year mine life.

An existing database of completed exploration sampling includes 4,553 trench samples and 40 diamond drill holes totaling 9,232m has formed part of the due diligence information currently being evaluated..

Unaly Hill (E57/420), Western Australia – Vanadium-Magnetite

The Company has previously announced a Vanadium-Magnetite Inferred Mineral Resource with over 86 million tonnes of 0.42% V2O⁵ at a 0.30% cut-off grade and confirmation of similar mineralization type to Quest Minerals Limited's (ASX:QNL) Victory Bore Deposit. There are two significant highgrade zones and the deposit remains open along strike and depth with the potential to increase the estimated resource.

Following the announcement of the Inferred Mineral Resource in 2011, the Company has been investigating opportunities to maximize on its return before any additional exploration takes place, given that the project tonnages are already substantial. An option under discussion with its consultants is the processing of fine crushings by densimetric beneficiation involving jig and spirals, or heavymedia, rather than conventional fine-grind and magnetic concentration; which enables the transitional oxide zone as well as the primary BIF to be commercialized. The metallurgical validation of the densimetric process route is still under review.

Durminskoe Gold and Silver project, Far Eastern Russia

The Company continues to explore ways in which the returns from this project can be optimized and initiatives are underway to advance the project further. Current prices have added to the attractiveness

DIRECTORS' REPORT

of this project and the Company is reviewing with its consultants a number of options regarding its development.

The Company continues to actively pursue its objective of identifying value adding project opportunities and to create shareholder wealth. Discussions have been ongoing on a number of opportunities but have not yet reached a conclusion.

CORPORATE

Mr Stuart Third was appointed the Company Secretary on 12 September 2012 following the resignation of Mr David Semmens.

The Company's Annual General Meeting was held on 7 November 2012.

150,806,883 listed options (ASX: BRDOA) expired on 31 December 2012. 87,707 options were exercised and shares issued.

AUDITOR INDEPENDENCE DECLARATION

The auditor's independence declaration for the period ending 31 December 2012 has been given and is set out on the following page.

SIGNED in accordance with a resolution of the directors

Alan Winduss Chairman

Signed at Perth on the 15th of March 2013

QUALIFYING STATEMENTS

JORC compliance

The information in this report that relates to the drilling data and geological interpretations is based on information compiled by Mr V Trashliev who is a member of the South African Council for Natural Scientific Professions ("SACNASP"). Mr Trashliev is responsible for the Mineral Resource modelling and reporting and is an employee of Gemcom Pty Ltd. The Competent Person responsible for the Independent Audit of the Mineral Resource is Mr Andrew Bewsher from BM Geological Services Pty Ltd and is a member of the Australian Institute of Geoscientists (MAIG). Both persons have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and do consent to the inclusion in the report of the matters based on information in the form and context in which it appears.

Disclaimer

The initial documents and geological records relating to the Mutnovskaya Project were originally recorded in the Russian language, written in the Cyrillic alphabet and translated to English by Mr Vladislav Trashliev who is a member of the South African Council for Natural Scientific Professions ("SACNASP"). Mr Vladislav Trashliev is an employee of Gemcom Pty Ltd. He has sufficient experience that is relevant to the project under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Vladislav Trashliev has consented to the inclusion of this information in the form and context in which it appears.

The reports from the Russian authorities were prepared by informed individuals, who may or may not be considered qualified persons under the definition of JORC.

Level 18, Central Park Building, 152-158 St Georges Terrace, Perth WA 6000 p.a. Box 8716, Perth Business Centre WA 6849 Phone (08) 63645076 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") hereby declare that to the best of my knowledge and belief there have been:

• i) no contraventions of the auditor independence requirements of the Act in relation to the audit review of the 31 December 2012 interim financial statements; and
• ii) no contraventions of any applicable code of professional conduct in relation to the review.

Graham R Swan (Lead auditor)

Rothsay Chartered Accountants

Dated 15th March 2013

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

	Note	31.12.2012	31.12.2011
		\$	\$
Continuing operations
Revenue from ordinary activities
Financial income		5,231	34,521
Other revenues		67,750	-
Total revenue	2	72,981	34,521
Expenses from ordinary activities
Depreciation		(1,868)	(2,662)
Provision for loan		(198,239)	-
Employee benefit expenses		-	(48,083)
Lease rental payment		(49,788)	(48,758)
Professional fees		(271,340)	(411,589)
Exploration expenses		(143,979)	(79,961)
Other expense from ordinary activities		(13,683)	(19,832)
		(678,897)	(610,885)
Loss from ordinary activities before income tax expense		(605,916)	(576,364)
Income tax expense		-	-
Net Loss for the period		(605,916)	(576,364)
Other comprehensive income for the period		-	-
Total comprehensive loss for the period		(605,916)	(576,364)
Earnings per share
Basic loss per share (cents per share)		0.08	0.08
The company's potential ordinary shares are not considered dilutive and accordingly basic loss per share is the same as diluted loss per share.
Diluted loss per share (cents per share)		0.08	0.08

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012

	Note	31.12.12	30.06.12
		\$	\$
ASSETS
Current assets
Cash and cash equivalents		131,905	580,810
Trade and other receivable		16,390	203,298
Financial assets		50,000	-
Other current asset		5,783	15,385
Total current assets		204,078	799,493
Non-current assets
Property, plant and equipment		9,092	10,960
Exploration expenditure	4	1,871,068	147,068
Total non-current assets		1,880,160	158,028
TOTAL ASSETS		2,084,238	957,521
LIABILITIES
Current liabilities
Trade payables		114,077	106,760
Other payables	4	1,724,000	-
Total current liabilities		1,838,077	106,760
TOTAL LIABILITIES		1,838,077	106,760
NET ASSETS		246,161	850,761
EQUITY
Contributed equity		20,340,385	20,339,069
Reserves		223,350	223,350
Accumulated losses		(20,317,574)	(19,711,658)
TOTAL EQUITY		246,161	850,761

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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2012

	Note	Contributed Equity	Accumulated Losses	Reserves	Total Equity
		\$	\$	\$	\$
Balance at 1 July 2011		20,435,606	(18,586,724)	223,350	2,072,232
Shares issued during the year		-	-	-	-
Share based payments		(6,000)	-	-	(6,000)
Net loss recognised directly in equity		-	(576,364)	-	(576,364)
Share issue costs		(90,537)	-	-	(90,537)
Movement in reserves		-	-	-	-
Balance at 31 December 2011		20,339,069	(19,163,088)	223,350	1,399,331
Balance at 1 July 2012		20,339,069	(19,711,658)	223,350	850,761
Shares issued during the year		1,316	-	-	1,316
Net loss recognised directly in equity		-	(605,916)		(605,916)
Share issue costs		-	-	-	-
Movement in reserves		-	-	-	-
Balance at 31 December 2012		20,340,385	(20,317,574)	223,350	246,161

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

CONSOLIDATED STATEMENT OF CASH FLOW FOR THE HALF YEAR ENDED 31 DECEMBER 2012

	Note	31.12.2012	31.12.2011
		\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received		5,231	34,521
Other revenue			-
Receipts from customer		55,001	(43,586)
Payment to suppliers and employees		(460,430)	(726,281)
Net cash used in operating activities		(400,198)	(735,346)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		-	(3,476)
Advances to other entities		-	(1,414)
Acquisition of investments		(50,000)	-
Net cash provided by investing activities		(50,000)	(4,890)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of ordinary shares		1,293	-
Share issue expenses		-	(90,537)
Net cash provided by financing activities		1,293	(90,537)
Net increase/(decrease) in cash held		(448,905)	(830,773)
Cash and cash equivalents at the beginning of period		580,810	2,010,686
Cash and cash equivalents at the end of period		131,905	1,179,913

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

This general purpose financial report for the interim reporting half year ended 31 December 2012 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting, the Corporations Act 2001 and other authoritative pronouncements of the Australian Accounting Standards Board ('AASB'). Compliance with AASB 134 ensures compliance with IAS 34 Interim Financial Reporting.

The 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 Financial Report for the year ended 30 June 2012 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.

The interim report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

For the purpose of preparing the interim report the half year has been treated as a discrete reporting period.

Significant accounting policies

Apart from the changes in accounting policy noted below, the accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Adoption of new and revised accounting standards

In the half year ended 31 December 2012, the Group 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 2012.

As a result of this review the Directors have determined 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 Group accounting policies.

Basis of Consolidation

The half year consolidated financial statements comprise the financial statements of Black Ridge Mining NL and its subsidiaries at 31 December 2012.

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 2012, the Group incurred an operating loss of \$605,916 (2011: \$576,364) and an operating cash outflow of \$400,198 (2011: \$735,346).

Based upon the Group's 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 financial report.

	Note	31.12.2012	31.12.2011
		\$	\$
NOTE 2: REVENUE FOR THE PERIOD
Finance income		5,231	34,521
Other income		67,750	-
Total revenue from ordinary activities		72,981	34,521

NOTE 3: DIVIDENDS

No dividends were paid or proposed during the half year ended 31 December 2012.

NOTE 4: CAPITALISED EXPLORATION EXPENDITURE

The Company has entered into a standstill agreement with the vendor of the Unaly Hill tenement (refer Note 7) in relation to the amount becoming payable upon the announcement of the Inferred Resource. This amount has been capitalised by the Company as it arises under its obligations associated with the original agreement to acquire the tenement.

Exploration and Evaluation Expenditure	\$
Balance at 1 July 2012	147,068
Payments due under agreement (refer Note 7)	1,724,000
Balance at 31 December 2012	1,871,068

The payments noted above due under the vendor agreement have been recognised in the accounts and the balance outstanding at 31 December 2012 is \$1,724,000.

NOTE 5: OPERATING SEGMENTS

For the half year ended 31 December 2012, the Company's operations were in mineral exploration.

The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and used by the directors (the Chief Operating Decision Makers) in assessing performance and in determining the allocations of resources.

Six months ended 31 December 2012	Mining & Exploration \$	Corporate \$	Consolidated \$
REVENUE
Other revenue	-	72,981	72,981
Segment Result	143,979	461,937	605,916
ASSETS / LIABILITIES
Asset
Segment assets	1,871,068	213,170	360,238
Liabilities
Segment liabilities	-	(1,838,077)	(1,838,077)
Net Assets	1,871,068	(1,624,907)	246,161
Six months ended 31 December 2011	Mining & Exploration \$	Corporate \$	Consolidated \$
REVENUE
Other revenue	-	34,521	34,521
Segment Result	(79,961)	(496,403)	(576,364)
ASSETS / LIABILITIES
Asset
Segment assets	147,068	1,269,095	1,416,163
Liabilities
Segment liabilities	-	(16,832)	(16,832)
Net Assets	147,068	1,252,263	1,399,331

NOTE 6: CONTRACTUAL AND LEASING COMMITMENTS

a. Operating lease commitments

The Company occupies its business premises via a periodic tenancy. There is no future lease commitment as either the Landlord or the Company may terminate the tenancy by providing two months' notice to the other party whilst occupying premises under a periodic tenancy.

b. Administration service agreement

The Company is party to an Administration Services Agreement with Corporate Admin Services Pty Ltd (the "Contractor") 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:

	Note	31.12.2012	31.12.2011
		\$	\$
- not later than 12 months		110,000	220,000
- between 12 months and 5 years		-	110,000
- greater than 5 years		-	-
		110,000	330,000

c. 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 12 months	73,020	93,075
- between 12 months and 5 years	8,337	136,061
- greater than 5 years	-	-
	81,357	229,136

NOTE 7: CONTINGENT LIABILITIES

The Company has a contingent liability in relation to the acquisition of the Unaly Hill mining tenement E57/420:

• a) Upon establishment of an Inferred, Indicated or Measured resource, royalty payments must be made to the vendor based on mineral ore tonnages identified.
• i) 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.
• ii) 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.
• iii) 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.
• b) A further royalty equal to 2.25% of gross revenue arising from sale of minerals derived from the tenement.

A standstill agreement with the vendor was entered into when an Initial Inferred resource was announced deferring the payment of the additional amount identified in (a) above until an alternative agreement is reached. The standstill agreement expires on 17 April 2013.

NOTE 8: EVENTS AFTER THE REPORTING PERIOD

No matters or circumstances have arisen since the end of the half year, that have significantly affected, or may significantly affect the operations of the group, the results of those operations, or the state of affairs of the group in future financial years.

NOTE 9: RELATED PARTY TRANSACTIONS

a) Key management personnel

The names of each person holding the position of director of the Company during the financial year are:

A Winduss V Nikolaenko R Molkenthin

b) Administration service agreement

- Corporate Admin Services Pty Ltd

The Company has an administration service agreement with Corporate Admin Services Pty Ltd, a company of which Mr. Vladimir Nikolaenko is a director. The contract is for provision of strategic and corporate advisory service. The amount paid or accrued to Corporate Admin Services Pty Ltd for the half year 31 December 2012 was \$144,394 (2011: \$238,505), and represents reimbursements for costs incurred in the provision of strategic and corporate advisory services. The amount owing to Corporate Admin Services Pty Ltd at 31 December 2012 is \$62,808 (2011: \$nil).

c) Commercial services agreement

– Winduss & Associates Pty Ltd

The Company receives accounting and bookkeeping services from Winduss & Associates Pty Ltd, an accounting practice of which Mr. Alan Winduss is a director and shareholder. Fees charged are at normal commercial rates and conditions. The amount of fees paid or accrued to 31 December 2012 for accounting and bookkeeping services is \$26,873 (2011: \$24,312). There are no amounts owing to Winduss & Associates Pty Ltd at 31 December 2012 (2011: \$nil).

d) Acquisition of mining tenement

- Plato Mining Pty Ltd

In 2009, the Company acquired the Unaly Hill Tenement (E57/420) from Plato Mining Pty Ltd, a company of which Mr Vladimir Nikolaenko is a director. Upon the establishment of a JORC Code compliant Inferred resource, Indicated resource or Measured resource on the Tenement, the Company is to pay further amounts to Plato Mining Pty Ltd.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012

In accordance with a resolution of the directors of Black Ridge Mining NL, the directors of the company declare that:

• 1. The financial statements and notes, as set out on pages¹ 369 to 388, are in accordance with the Corporations Act 2001, including:
• a. complying with Accounting Standard AASB 134: Interim Financial Reporting; and
• b. giving a true and fair view of the consolidated entity's financial position as at 31 December 2012 and of its performance for the half-year ended on that date.
• 1. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

……………………………….. Alan Winduss Chairman

Dated this 15th day of March 2013

Level 18, Central Park Building, 152-158 St Georges Terrace, Perth WA 6000 p.a. Box 8716, Perth Business Centre WA 6849 Phone (08) 63645076 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 2012.

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 200 I. 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 Pe/formed 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 2012 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 200 I.

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 2012 and ofthe performance for the half-year ended on that date; and
• complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 200 I.

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

Emphasis of Matter regarding Continuation as a Going Concern

Without qualifying our conclusion, we draw attention to Note 1in the financial report which indicates the basis for preparing the accounts on a going concern basis. We note the consolidated entity incurred a loss before income tax of\$605,916 together with an operating cash outflow of \$400, 198.

These results indicate the existence of a material uncertainty which may cast doubt about the consolidated entity's ability to continue as a going concern and therefore the consolidated entity may be unable to realise its assets and extinguish its liabilities in the normal course of business and for the amounts stated in the financial report.

Matters Relating to the Electronic Presentation of the Reviewed Half Year Financial Report

This auditor's review report relates to the half year financial report of Black Ridge Mining NL for the half year ended 31 December 2012 included on Black Ridge NL's website. The company's directors are responsible for the integrity of the website. We have not been engaged to report on the integrity of the website. This auditor's review report refers only to the half year financial report. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the reviewed half year financial report to confirm the information included in the reviewed financial report presented on this website.

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Rothsay

Graham R Swan Partner Dated

15th March 2013

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