SUREFIRE RESOURCES NL — Interim / Quarterly Report 2014

Mar 16, 2014

BLACK RIDGE MINING NL ABN 48 083 274 024

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

CORPORATE DIRECTORY

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED

31 December 2013

Board of Directors

Mr Peter Elliott - Non-executive Chairman (Appointed 29 January 2014)

Mr Vladimir Nikolaenko - Non-executive Director

Mr Edward Gilfillan - Non-Executive Director

Mr Malcolm Carson (26 July $2013 - 29$ January 2014)

Mr Stuart Third (24 May 2013 - 26 July 2013)

Company Secretary

Mr Graeme Smith (Appointed 11 December $2013)$

Mr Stuart Third (Resigned 26 July 2013)

Mr Vladimir Nikolaenko (26 July - 11 December 2013)

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

Auditors

Somes Cooke Level 2 35 Outram Street WEST PERTH WA 6005

Solicitors

Steinepreis Paganin Level 4 The Read Buildings 16 Milligan Street PERTH WA 6000

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

BLACK RIDGE MINING NL AND CONTROLLED ENTITIES ABN 48 083 274 024

DIRECTORS' REPORT

DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	5
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	6
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	8
CONSOLIDATED STATEMENT OF CASH FLOWS	9
NOTES TO THE FINANCIAL STATEMENTS	10
DIRECTORS' DECLARATION	15
INDEPENDENT AUDITOR'S REPORT	16

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 2013.

DIRECTORS

The names of the directors of the company during the financial half-year and up to the date of this report, unless otherwise stated:

Mr Peter Elliott – Non-executive Chairman (Appointed 29 January 2014)

Mr Vladimir Nikolaenko – Non-executive Director

Mr Edward Gilfillan - Non-Executive Director

Mr Malcolm Carson (26 July $2013 - 29$ January 2014)

Mr Stuart Third (24 May 2013 - 26 July 2013)

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 \$135,731 (2012 \$605,916) for the half year to 31 December 2013.

REVIEW OF OPERATIONS

Black Ridge Mining NL (ASX: BRD or "the company") continued to assess and appraise various projects that come to the attention of the board both locally and overseas. During the period data was acquired for several gold and base metals projects and were reviewed.

At Unaly Hill field reconnaissance was carried out which involved prospect and structural mapping of historic workings and surrounds. The work also included review of the gold and base metal potential at Unaly Hill.

The project covers 13 strike kilometres of the regional scale Youanmi Fault, a structure that forms the boundary between the Murchison Domain and the Southern Cross Domain of the Youanmi Terrane. Gold deposits associated with this structure include the $+1$ Moz gold deposit at Youanmi to the south and is related to gold mineralization further NE at Standstone Mining Centre which includes the +1Moz Bulchina Gold Deposit within the +2Moz duster of deposits at Sandstone.

In the vicinity of Sandstone, at the Two Mile Hill deposit, Troy Resources reported in 2009, intersections of significant mineralization associated with quart stockwork veining within BIF and tonalite lithologies. Drilling by Battle Mountain Gold during the 1990's identified strong gold mineralization at Victory Bore immediately north of Unaly Hill, and also revealed the presence of not just banded iron formations, but intermediate tonalite intrusions. The presence of these lithologies in the vicinity of gold mineralization provide an important model and target for future drilling campaigns for gold which may be concentrated at the contact between the volcanics and BIF units of the greenstone belt and cross cutting tonalite intrusions. At two Mile Hill, and cross cutting tonalite intrusions. At Two Mile Hill, this setting has created a conceptual target for high grade gold shoots and may be applicable at Unaly Hill.

DIRECTORS' REPORT

Following the mapping and renewed interested in the gold potential at the project, a review of the gold geochemistry was undertaken in overlain by Cenozoic colluvial cover, a number of methodologies and sample mediums are being reviewed.

The company has previously announced its maiden Vanadium-Magnetite inferred mineral resource at Unaly Hill. The deposit consists of two separate high grade zones which remain open both long strike and at depth. This project is a major undertaking and the company has continued to investigate opportunities to maximize on its return given the project already hosts substantial tonnages.

CORPORATE

The Company's Annual General Meeting was held on 29 November 2013.

Peter Elliott was appointed Chairman of the Company following the resignation of Malcolm Carson in January 2014.

AUDITOR INDEPENDENCE DECLARATION

The auditor's independence declaration for the period ending 31 December 2013 has been given and is set out on the following page.

SIGNED in accordance with a resolution of the directors

Vladimir Nikolaenko Managing Director

Signed at Perth on the 15^th of March 2014

35 Outram St
West Perth
WA 6005

PO Box 709 West Perth WA 6872

T 08 9426 4500 F 08 9481 5645 W somescooke.com.au E info@somescooke.com.au

Chartered Accountants (Aus) Business Consultants Financial Advisors

AUDITOR'S INDEPENDENCE DECLARATION

To those charged with governance of Black Ridge Mining NL

As auditor for the review of Black Ridge Mining NL for the half-year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been:

• No contraventions of the independence requirements of the Corporations Act 2001 $a)$ in relation to the review; and
• No contraventions of any applicable code of professional conduct in relation to the $b)$ review.

Somes Cooke

Somes Cooke

ichelas Hollans

Nicholas Hollens Perth 15 March 2014

Page 5 of 17

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

	Note	31 Dec 2013	31 Dec 2012
		\$	\$
Continuing operations
Revenue from ordinary activities
Financial income		23	5,231
Other revenues			67,750
Total revenue	$\overline{2}$	23	72,981
Expenses from ordinary activities
Depreciation		(1, 868)	(1,868)
Provision for loan			(198, 239)
Lease rental payment		(10, 132)	(49, 788)
Professional fees		(24,000)	(271, 340)
Exploration expenses		(45, 429)	(143, 979)
Other expense from ordinary activities		(54, 325)	(13, 683)
		(135, 754)	(678, 897)
Loss from ordinary activities before income tax expense		(135, 731)	(605, 916)
Income tax expense
Net Loss for the period		(135, 731)	(605, 916)
Other comprehensive income for the period
Total comprehensive loss for the period		(135, 731)	(605, 916)
Earnings per share
Basic loss per share (cents per share)		0.02	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.

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

BLACK RIDGE MINING NL AND ITS CONTROLLED ENTITIES ABN 48 083 274 024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

	Note	31 Dec 2013	30 Jun 2013
		\$	\$
ASSETS
Current assets
Cash and cash equivalents		2,477	32,122
Trade and other receivable		4,837	6,580
Financial assets		5,555	5,555
Other current asset		9,465	9,467
Total current assets		22,334	53,724
Non-current assets
Property, plant and equipment		5,388	7,257
Exploration expenditure	$\overline{4}$	1,871,068	1,871,068
Total non-current assets		1,876,456	1,878,325
TOTAL ASSETS		1,898,790	1,932,049
LIABILITIES
Current liabilities
Trade & Other payables	$\overline{4}$	2,113,714	2,011,242
Total current liabilities		2,113,714	2,011,242
TOTAL LIABILITIES		2,113,714	2,011,242
NET ASSETS		(214, 924)	(79, 193)
EQUITY
Issued Capital
Reserves		20,563,735	20,340,385
			223,350
Accumulated losses		(20, 778, 659)	(20, 642, 928)
TOTAL EQUITY		(214, 924)	(79, 193)

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 2013

	Note	Contributed Equity	Accumulated Losses	Reserves	Total Equity
		\$	\$	$\mathbb{S}$	$\mathbb{S}$
Balance at 1 July 2013		20,340,385	(20, 642, 928)	223,350	(79, 193)
Shares issued during the year
Net loss recognised directly in equity			(135, 731)		(135, 731)
Movement in reserves		223,350		(223, 350)
Balance at 31 December 2013		20,563,735	(20, 778, 659)		(214, 924)
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
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 2013

	Note	31 Dec 2013	31 Dec 2012
		\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received		23	5,231
Other revenue
Receipts from customer			55,001
Payment to suppliers and employees		(58, 368)	(460, 430)
Net cash used in operating activities		(58, 345)	(400, 198)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Advances to other entities
Acquisition of investments			(50,000)
Net cash provided by investing activities			(50,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of ordinary shares			1,293
Proceeds from Borrowings		28,700
Net cash provided by financing activities		28,700	1,293
Net increase/(decrease) in cash held		(29, 645)	(448,905)
Cash and cash equivalents at the beginning of period		32,122	580,810
Cash and cash equivalents at the end of period		2,477	131,905

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

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

This general purpose financial report for the interim reporting half year ended 31 December 2013 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 2013 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 2013, 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 2013.

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 2013.

Going concern

The financial statements have been prepared on the going concern basis. The Group has incurred a loss of \$135,731 during the half-year ended 31 December 2013 and, as of that date, Black Ridge Mining NL's total liabilities exceeded its total assets by \$214,924.

Whilst the directors have instituted measures to preserve cash and secure additional finance, they recognise that the Group's ability to continue as a going concern is dependent on its ability to raise additional capital to fund its business plans and the continuing support of the directors and other related parties. The Company expects to be able to raise additional capital from the Capital market, and on that basis, the directors believe that the going concern basis of the presentation is appropriate. he Company

Nonetheless, the group's working capital position and other year end financial indicators show a significant uncertainty whether the Group will be able to continue as a going concern.

Should the company be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different from those stated in the financial report.

The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that may be necessary should the Group be unable to continue as a going concern.

	Note	31 Dec 2013	31 Dec 2012
		S	S
NOTE 2: REVENUE FOR THE PERIOD
Finance income			5,231
Other income		23	67,750
Total revenue from ordinary activities		23	72.981

NOTE 3: DIVIDENDS

No dividends were paid or proposed during the half year ended 31 December 2013.

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

$\mathbb{S}$

1,871,068

Balance at 31 December 2013

NOTE 5: OPERATING SEGMENTS

For the half year ended 31 December 2013, 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 2013	Mining & Exploration S	Corporate S	Consolidated \$
REVENUE
Other revenue		23	23
Segment Result	(45, 429)	(90, 302)	(135, 731)
ASSETS / LIABILITIES
Asset
Segment assets	1,871,068	27,722	1,898,790
Liabilities
Segment liabilities		(2,113,714)	(2, 113, 714)
Net Assets	1,871,068	(2,085,992)	(214, 924)
Six months ended 31 December 2012	Mining $\&$
	Exploration S	Corporate S	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	2,084,238
Liabilities
Segment liabilities		(1,838,077)	(1,838,077)
Net Assets	1,871,068	(1,624,907)	246,161

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 Dec 2013	31 Dec 2012
		S	S
- not later than 12 months		110,000	110,000
- between 12 months and 5 years
- greater than 5 years			۰
		110,000	110,000

Exploration expenditure commitments $\mathbf{c}$ .

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	73,020
- between 12 months and 5 years	8.337	8,337
- greater than 5 years	۰
	81,357	81,357

NOTE 7: CONTINGENT LIABILITIES

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

• Upon establishment of an Inferred, Indicated or Measured resource, royalty payments must be $a)$ 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 $U_3O_8$ 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.
• A further royalty equal to 2.25% of gross revenue arising from sale of minerals derived from $b)$ the tenement.

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.

DIRECTORS' DECLARATION

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 pages 6 to 14, 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 2013 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.

. . . . . . . . . . . . . . . . . . . . Vladimir Nikolaenko Managing Director

Dated this 15 day of March 2014

35 Outram St	PO Box 709		08 9426 4500 08 9481 5645 F	Chartered Accountants (Aus)
West Perth	West Perth	W	somescooke.com.au	Business Consultants
WA 6005	WA 6872		E info@somescooke.com.au	Financial Advisors

Independent Auditor's Review Report

To the members of Black Ridge Mining NL

Report on the Half-year Financial Report

We have reviewed the accompanying half-year financial report of Black Ridge Mining NL, which comprises the consolidated statement of financial position as at 31 December 2013, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Directors' Responsibility for the Half-year Financial Report

The directors of Black Ridge Mining NL are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a 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 financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of Black Ridge Mining NL's financial position as at 31 December 2013 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 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 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 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 half-year financial report of Black Ridge Mining NL is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Black Ridge Mining NL's financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and
• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Emphasis of matter - inherent uncertainty regarding continuation as a going concern

Without modifying our conclusion, we draw attention to Note 1 to the financial statements which outlines that the ability of the company to continue as a going concern is dependent on the company raising further capital sufficient to meet the company's debts as and when they fall due.

As at 31 December 2013, the consolidated entity had net current liabilities of \$2,091,380 with available cash and cash equivalents of \$2,477.

As a result, there is a material uncertainty related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern, and therefore whether it will realise its asset and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Our conclusion is not qualified in respect of this matter.

Somes Cooke

Somes Cooke

Jicholas Hollens

Nicholas Hollens 15 March 2014

Perth Western Australia