SUREFIRE RESOURCES NL — Interim / Quarterly Report 2015

Mar 12, 2015

INTERIM FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2014

CORPORATE DIRECTORY

Board of Directors

Mr Peter Elliott – Non-executive Chairman

Mr Vladimir Nikolaenko – Non-executive Director

Mr Edward Gilfillan – Non-Executive Director

Company Secretary

Mr Graeme Smith

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

Registered Office

c/ Ground Floor 63 Hay Street SUBIACO WA 6008

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

Securities Exchange Listing

Australian Securities Exchange Black Ridge Mining NL ASX Code: BRD

CONTENTS

DIRECTORS' REPORT	2
AUDITOR'S INDEPENDENCE DECLARATION	5
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE 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	14
INDEPENDENT AUDITOR'S REPORT	15

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 2014.

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 Mr Vladimir Nikolaenko – Non-executive Director

Mr Edward Gilfillan – Non-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 $130,274 (2013: $135,731) for the half year to 31 December 2014.

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.

Unaly Hill Vanadium Nickel Copper Project (E57/420) 100% BRD

During the half year BRD carried out a review of the base metal potential of the Atley Igneous Complex ("AIC"). Historic exploration activities focusing on these particular commodities, particularly for nickel and copper sulphide mineralisation, were reviewed in detail. In the southern portion of E57/420 the AIC is concealed beneath transported material and historic programs exploring, largely for gold, have been unsuccessful. Base metal exploration in this area has also been minimal and the only previous drilling in this area was analysed for gold only.

MMI Geochemical Sampling Program

With focus on the base metal potential, BRD progressed exploration activities with a first pass geochemical field program during December 2014. A 304 sample Mobile Metal Ion ("MMI") geochemical soil program was completed in the southern portion of the project. Samples were taken from 11 east-west oriented sample traverse utilising a nominal 500m by 75m grid spacing. Samples were removed according to the stringent MMI procedures and submitted to SGS Laboratories in Perth for multi element analysis for base metals. Whilst in the field, a consultant geologist visited historic drill sites and outcrop in the vicinity of Unaly Hill identifying ultramafic lithologies and weak sulphide mineralisation within gabbro.

DIRECTORS' REPORT

Extension of Term Granted

On 1 July 2014, approval was granted by the DMP to extend the life of E57/420.

Schedule of Tenements

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

CORPORATE

The Company's Annual General Meeting was held on 28 November 2014. All resolutions put to members were passed unanimously.

Competent Persons Statement

Information in this report relating to exploration results is based on information compiled by consultant geologist, Mr Martin Dormer, who is a member of the Australian Institute of Mining and Metallurgy. Mr Dormer has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the 'Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Dormer operates as Martin Matthew Bruce Dormer and Pennelope Anne Dormer as trustees for the Dormer Family Trust trading as "Unearthed Elements". Mr Dormer consents to the inclusion of such information in this report and the context in which it appears.

DIRECTORS' REPORT

AUDITOR INDEPENDENCE DECLARATION

The auditor's independence declaration for the period ending 31 December 2014 has been given and is set out on the following page.

SIGNED in accordance with a resolution of the directors

Vladimir Nikolaenko Director

Signed at Perth on 13 March 2015

	35 Outram St	PO Box 709	08 9426 450008 9481 5645	Chartered Account
	West Perth	West Perth	somescooke.com.au	Business Consulta
	WA 6005	WA 6872	info@somescooke.com.auΕ.	Financial Advisors
es

Auditor's Independence Declaration

To those charged with the governance of Black Ridge Mining NL

As auditor for the review of Black Ridge Mining NL for the half year ended 31 December 2014, I declare that, to the best of my knowledge and belief, there have been:

i) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the review; and ii) no contraventions of any applicable code of professional conduct in relation to the review.

Somes Cooke

Nicholas Hollens Partner

Perth

13 March 2015

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

	Note	31 Dec 2014	31 Dec 2013
		$	$
Continuing operations
Revenue from ordinary activities
Financial income		-	23
Other revenues		-	-
Total revenue	2	-	23
Expenses from ordinary activities
Depreciation		-	(1,868)
Exploration expenses		(12,054)	(55,561)
Administration expenses		(118,220)	(78,325)
		(130,274)	(135,754)
Loss from ordinary activities before income taxexpense		(130,274)	(135,731)
Income tax expense		-	-
Net Loss for the period		(130,274)	(135,731)
Other comprehensive income for the period		-	-
Total comprehensive loss for the period		(130,274)	(135,731)
Earnings per share
Basic loss per share (cents per share)		0.02	0.02

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 profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

	Note	31 Dec 2014	30 Jun 2014
		$	$
ASSETS
Current assets
Cash and cash equivalents		44,500	8,524
Trade and other receivable		3,806	11,800
Other current asset		-	9,468
Total current assets		48,306	29,792
Non-current assets
Property, plant and equipment		-	-
Exploration expenditure	4	1,871,068	1,871,068
Total non-current assets		1,871,068	1,871,068
TOTAL ASSETS		1,919,374	1,900,860
LIABILITIES
Current liabilities
Trade & Other payables		553,192	463,404
Interest bearing liabilities	5	1,811,050	1,802,050
Total current liabilities		2,364,242	2,265,454
TOTAL LIABILITIES		2,364,242	2,265,454
NET LIABILITIES		(444,868)	(364,594)
EQUITY
Issued Capital		20,390,385	20,340,385
Accumulated losses		(20,835,253)	(20,704,979)
DEFICIT IN SHAREHOLDERS FUNDS		(444,868)	(364,594)

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 2014

	Note	ContributedEquity	AccumulatedLosses	Reserves	Total Equity
		$	$	$	$
Balance at 1 July 2014		20,340,385	(20,704,979)		(364,594)
Shares issued during the year		50,000	-	-	-
Net loss recognised directly inequity		-	(130,274)	-	(130,274)
Balance at 31 December 2014		20,390,385	(20,835,253)	-	(444,868)
Balance at 1 July 2013		20,340,385	(20,642,928)	223,350	(79,193)
Movement in Reserves		223,350	-	(223,350)	-
Net loss recognised directly inequity		-	(135,731)	-	(135,731)
Balance at 31 December 2013		20,563,735	(20,778,659)	-	(214,924)

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 2014

	Note	31 Dec 2014	31 Dec 2013
		$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received		-	23
Other revenue
Receipts from customer		-	-
Payment to suppliers and employees		(23,024)	(58,368)
Net cash used in operating activities		(23,024)	(58,345)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipmentAdvances to other entities		--	--
Acquisition of investments		-	-
Net cash provided by investing activities		-	-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of ordinary shares		50,000	-
Proceeds from Borrowings		9,000	28,700
Net cash provided by financing activities		59,000	28,700
Net increase/(decrease) in cash held		35,976	(29,645)
Cash and cash equivalents at the beginning of period		8,524	32,122
Cash and cash equivalents at the end of period		44,500	2,477

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 2014

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

This general purpose financial report for the interim reporting half year ended 31 December 2014 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 2014 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 2014, 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 2014.

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 2014.

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 2014, the Group incurred an operating loss of $130,274. The Group has recorded net liabilities of $444,868 as at 31 December 2014.

During the half-year, the company has raised $50,000 via issue of share capital.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

Mr Vladimir Nikolaenko has confirmed that he will not call the amounts owed to him or his related parties as at 31 December 2014 by the Group until the Group has ability to pay.

Based upon the Group's ability to modify expenditure outlays if required, a commitment from Mr Nikolaenko not to demand repayments for loans given to the Group for a period of up to 1 year 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 interim reporting half year ended 31 December 2014.

However, the Directors recognise that the ability of the Company to continue as a going concern and to pay its debts as and when they fall due may be dependent on the ability of the Company to secure additional funding through either the issue of further shares and or options, convertible notes or entering into negotiations with third parties regarding the sale and or farm out of assets of the Company or a combination thereof.

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 nor to the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern

	Note	31 Dec 2014	31 Dec 2013
		$	$
NOTE 2: REVENUE FOR THE PERIOD
Finance income		-	23
Total revenue from ordinary activities		-	23

NOTE 3: DIVIDENDS

No dividends were paid or proposed during the half year ended 31 December 2014.

NOTE 4: CAPITALISED EXPLORATION EXPENDITURE

The Company has entered into a standstill agreement with the vendor of the Unaly Hill tenement 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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

Exploration and Evaluation Expenditure	$

Balance at 31 December 2014 1,871,068

NOTE 5: INTEREST BEARING LIABILITIES

	31 Dec 2014	30 June 2014
Loan – Fiji Holdings Pty Ltd	57,700	56,700
Loan – Mutual Holdings Pty Ltd	29,350	21,350
Loan – Plato Mining Pty Ltd	1,724,000	1,724,000
	1,811,050	1,802,050

(i) Loan payable to Fiji Holdings (Company related to Mr Vladimir Nikolaenko) is unsecured. Interest is payable on this loan at 10% per annum.

(ii) Loans payable to Mutual holdings and Plato Mining Pty Ltd (Both companies related to Mr Vladimir Nikolaenko) are unsecured and non interest bearing.

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 had an administration service agreement with Corporate Admin Services Pty Ltd, a company of which Mr. Vladimir Nikolaenko is a director, which has now lapsed asthe option to extend the agreement was not exercised. The contract was for provision of strategic and corporate advisory service. The amount owing to Corporate Admin Services Pty Ltd at 31 December 2014 is $180,780.

c. Short term financing arrangement 1

During the 2014 year, the Company entered into a short term (6 month) financing arrangement with Fiji Holdings Pty Ltd, a company of which Mr Vladimir Nikolaenko is a director. The agreement provides the Company with a facility of up to $100,000 to fund operations whilst alternatives for a capital raising are considered, and provides for payment of interest at 10% per annum on the drawn balance. The facility is unsecured. Balance payable at 31 December 2014 is $57,700.

d. Short term financing arrangement 2

During the 2014 year, company entered into short term financing arrangement with Mutual Holding Pty Ltd, a company of which Mr Vladimir Nikolaenko is a director. This facility is unsecured and non interest bearing. Balance payable at 31 December 2014 is $29,350.

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

e. 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:

	31 Dec 2014	31 Dec 2013
	$	$
- not later than 12 months	73,020	73,020
- between 12 months and 5 years	8,337	8,337
- greater than 5 years	-	-
	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:

• 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.

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 13, 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 2014 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 Director

13 March 2015

35 Outram St
West Perth

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 2014, 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 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 gives a true and fair view and 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 the Black Ridge Mining NL's financial position as at 31 December 2014 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 2014 and of its performance for the half-year ended on that date; and
• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and 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 2014, the consolidated entity had net current liabilities of $444,868 with available cash and cash equivalents of $44,500.

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 assets 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

Nicholas Hollens 13 March 2015

Perth Western Australia