TALIUS GROUP LIMITED - Interim / Quarterly Report 2011

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A D VANCE E N ER G Y LI M ITE D an d its C ontr o lled Entities ACN 1 1 1 823 762

A d ix 4D p pen

Half-Ye a r En d ed 30 JUN E 2011

The inf o rmation co n tained in thi s document s hould be read in conjunction with Advan c e Energy Lt d ’s annual report f or the year e nded 31 De c ember 201 0 and any public a nnouncem e nts made b y the comp a ny in accor d ance with t h e continuous disclosure o bligations arising f rom the Co r porations A c t 2001 and t h e ASX Listing R ules.

Results for announcement to the market

Results for announcement to the market
	Half-year	Half-year	Change from
	30 June	30 June	previous
	2011	2010	period
Financial Results	A$’000	A$’000	%
Revenues from ordinary activities	-	1,605	(100)%
Loss from ordinary activities after tax attributable to
members	(837)	(1,417)	(41)%
Net Tangible Assets Per Ordinary Share	Cents	Cents
Net tangible assets per ordinary share (half year
report-audit reviewed)	(3.0)	2.60	(215)%

Dividends

No dividends were paid or are proposed for the period or the previous corresponding period.

Commentary

Revenues decreased as a result of the divestments of producing wells which were concluded prior to the end of last year. Mother Lode III continues to be developed as a producer.

Further information on this and other matters relating to Advance Energy Ltd’s results is available in the half year report which accompanies this announcement.

Details of Entities over which Control has been Gained or Lost

None.

Details of Associates and Joint Venture Entities

The Group has a joint venture through a company called Blaze Asset Pty Ltd. The Group has a 50% participating interest in this joint venture entity and is entitled to 50% of its output. The interest in Blaze Asset Pty Ltd is accounted for in the consolidated financial statements using the equity method of accounting and is carried at cost by the parent entity. Information relating to the joint venture is set out below.

Share of the associate’s profit/(loss) accounted for using the equity method: Profit/(Loss) before income tax Income tax expense Profit/(Loss) after income tax	2011 $’000	2010 $’000
	- 1 - -
	- 1

As at 30 June 2011 the Company’s share of losses exceeds its interest in the associate.

Compliance Statement

This report is based on accounts complying with Australian Accounting Standard AASB 134 Interim Financial Reporting which have been subject to review.

For further information please contact:

Lloyd Flint Company Secretary 29 August 2011

ADVANCE ENERGY LIMITED Appendix 4d for period ended – 30 June 2010 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 2

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ADVANCE ENERGY LIMITE A C N 111 823 7 62

H ALF Y EAR R EPO R T 3 0 JUNE 2011

T h e information contained in this docu m ent s h ould be rea d in conjunc t ion with A d vance Ene r gy Ltd’s an n ual report for the y e ar ended 3 1 December 2010 and a n y p u blic annou n cements m a de by the c o mpany in accordance w ith the c o ntinuous disclosure obli g ations arisin g fr o m the Corporations Act 2001 and th e A S X Listing rul e s.

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

CONTENTS
	Page
	No.
DIRECTORS REPORT	2
AUDITOR’S INDEPENDENCE DECLARATION	4
CONSOLIDATED STATEMENT OF COMPREHANSIVE INCOME	5
CONSOLIDATED STATEMENT OF FINANICAL POSITION	6
CONSOLIDATED STATEMENT OF CASHFLOWS	7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	8
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT	9
DIRECTORS’ DECLARATION	16
INDEPENDENT AUDITOR’S REVIEW REPORT	17

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 1

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

DIRECTORS REPORT

Your directors present their report as the consolidated entity consisting of Advance Energy Ltd and the entities it controls as at the end of, or during, the half year ended 30 June 2011.

DIRECTORS

The following persons were directors of Advance Energy Ltd during the half-year and until the date of this report:

Anthony Short Managing Director Gordon Sklenka Non-Executive Director Kip Plankinton Non-Executive Director

PRINCIPAL ACTIVITIES

The principal continuing activities of the Group and Company during the financial period were the acquisition, production and exploration of petroleum and gas producing properties in Texas, United States of America.

There were no changes in the nature of the activities of the Group during the period.

OPERATING RESULTS

The net operating loss of the Group for the six months ended 30 June 2011 after income tax amounted to $837,076 (same period 2010: loss $1,416,535). Further details are supplied in the Review of Operations section below.

DIVIDENDS PAID OR RECOMMENDED

No dividends were paid or declared during the period and the Directors do not recommend the payment of a dividend.

REVIEW OF OPERATIONS

Operations have been scaled back subsequent to the divestments at the end of 2010. The development program on Mother Lode III project continues. New projects are continuously being reviewed for possible investment therein or potential acquisition.

OPERATIONS

Motherlode Phase III Project, Martin County

AEPI has a 50% working interest (38% NRI) in the Mother Lode III project which includes 48,000 acres (75 square miles) of 3D seismic. The Operator is Endeavour Energy Partners. Limited drilling has been undertaken on the Greene Prospect during the half year period pursuant to the Authorisation for Expenditure (AFE) submitted to Advance during 2010.

CORPORATE

There was minimal corporate activity during the period. 20 options were exercised during the period.

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 2

ADVANCE ENERGY LI M ITED - HALF YEAR REPO R T – 30 JUNE 2 011

SUBSEQUENT EVENTS

There w e re no ev e nts subse q uent to h a lf year end that aff e ct the gr o up as at the date of this report or for the foreseeable fut u re.

AUDITOR’S INDEPENDENCE DECLARATION

A copy o f the auditor’s inde p endenc e declarati o n as required unde r section 3 0 7C of the Cor p orations A ct 2001 is set out on page 4.

This rep o rt is made in accordance with a resoluti o n of dire c tors.

Signed in accordan c e with a r e solution of t he Board o f Directors.

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A. Short

Managin g Director

West Per t h, W.A. 29[th] Aug u st 2011

ADVANCE E N ERGY LIMITED Half Year Re p ort for period e nded 30 June 2011 ASX CODE: A VD www.ad v anceenergylt d .com.au

pg . 3

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

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29 August 2011

Board of Directors Advance Energy Ltd PO Box 1779 WEST PERTH WA 6872

Dear Sirs,

DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF ADVANCE ENERGY LIMITED

As lead auditor of Advance Energy Limited for the period ended 30 June 2011, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
any applicable code of professional conduct in relation to the review.

This declaration is in respect of Advance Energy Limited and the entities it controlled during the period.

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Phillip Murdoch Director

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BDO Audit (WA) Pty Ltd Perth, Western Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2011

Notes Revenue Other income Direct costs attributed to revenues Depreciation Depletion of oil and gas properties Employee benefits expense Administrative expenses Finance costs Loss before income tax Income tax expense Loss for the half year Other comprehensive income Exchange differences on translation of foreign operations Other comprehensive income for the half year, net of tax Total comprehensive income for the half year Loss is attributable to Owners of Advance Energy Ltd Total comprehensive income for the half year is attributable to: Owners of Advance Energy Ltd Loss per share Basic (cents per share) 11 Diluted (cents per share)	Half Year Half Year 2011 2010 $ $
	- 1,604,899 41,832 7,987 - (624,804) (3,161) (202,220) - (564,111) - (123,057) (535,566) (845,128) (340,181) (670,101)
	(837,076) (1,416,535) - -
	(837,076) (1,416,535) (57,878) 1,275,027
	(57,878) 1,275,027
	(894,954) (141,508)
	(837,076) (1,416,535)
	(837,076) (1,416,535)
	(57,878) (141,508)
	(57,878) (141,508)
	(0.39) (0.9) - -

The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes to the consolidated interim financial report.

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 5

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011

Notes Assets Current assets Cash and cash equivalents Trade and other receivables Total current assets Non current assets Property, plant and equipment Exploration and evaluation expenses 9 Other financial assets Total non current assets Total assets Current liabilities Trade and other payables Interest bearing liabilities 14 Total current liabilities Non current liabilities Interest bearing liabilities 14 Total non current liabilities Total liabilities Net liabilities Equity Issued share capital 12 Reserves Accumulated losses Total equity	30 June 2011 31 December 2010
	$ $
	1,079,183 2,545,539 36,563 71,454
	1,115,746 2,616,993
	7,420 11,054 667,050 699,262 12,045 44,746
	686,515 755,062

	1,802,261 3,372,055
	553,740 763,123 354,045 784,991
	907,785 1,548,114
	6,675,500 6,675,500
	6,675,500 6,675,500

	7,583,285 8,223,614

	(5,781,024) (4,851,559)
	16,109,747 16,144,258 (679,266) (621,388) (21,211,505) (20,374,429)
	(5,781,024) (4,851,559)

The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes to the consolidated interim financial report

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 6

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 JUNE 2011

Cash flows from operating activities Receipts from customers Payments to suppliers & employees Interest paid Interest received Net cash (used in)/ provided by operating activities Cash flows from investing activities Purchase of oil and gas properties Loans to other entities repaid Net cash (used in) investing activities Cash flows from financing activities Proceeds from borrowings Proceeds from issue of shares Capital raising costs Repayments of borrowings Net cash (used in)/ provided by financing activities Net (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the financial period	Half year 2011 $ Half year 2010 $
	- 1,667,238 (671,734) (1,580,994) (345,026) (670,101) 41,832 4,841
	(974,928) (579,016)
	(2,562) (520,696) - 281,000
	(2,562) (239,696)
	- 25,000 - 229,986 (34,511) - (441,854) (307,211)
	(476,365) (52,225)
	(1,453,855) 2,545,539 (870,937) 1,254,791 (12,501) (32,591)
	1,079,183 351,263

The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes to the consolidated interim financial report .

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 7

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2011

Period ended 30 June 2011 $ Balance at beginning of period Loss for the period Currency translation on foreign operations Total comprehensive income for half year Transactions with equity holders in their capacity as equity holders Issues of share capital, net of transaction costs Balance at 30 June 2011 Period ended 30 June 2010 $ Balance at beginning of period Loss for the period Currency translation on foreign operations Total comprehensive income for half year Transactions with equity holders in their capacity as equity holders Issues of share capital, net of transaction costs Balance at 30 June 2010	Issued Capital Equity Reserve Option Reserve Foreign Currency Translation Reserve Accumulated losses TOTAL 16,144,258 151,072 2,025,845 (2,798,305) (20,374,429) (4,851,559) - - - - (837,076) (837,076) - - - (57,878) - (57,878)
	- - - (57,878) (837,076) (894,954) (34,511) - - - - (34,511)
	16,109,747 151,072 2,025,845 (2,856,183) (21,211,505) (5,781,024)
	Issued Capital Equity Reserve Option Reserve Foreign Currency Translation Reserve Accumulated losses TOTAL 15,546,888 151,072 1,821,455 (1,638,814) (11,386,074) 4,494,527 - - - - (1,416,535) (1,416,535) - - - 1,275,027 - 1,275,027
	- - - 1,275,027 (1,416,535) (141,508) 229,961 - - - - 229,961
	15,776,849 151,072 1,821,455 (363,787) (12,802,609) 4,582,980

The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes to the consolidated interim financial report

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 8

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

CONDENSED NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT

1. REPORTING ENTITY

Advance Energy Limited (“Advance”) is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ending 30 June 2011 comprises Advance and its subsidiaries (together referred to as the “consolidated entity”) and the consolidated entities interests in associated and jointly controlled entities.

The consolidated annual financial report of the consolidated entity as at and for the year ended 31 December 2010 is available upon request from Advance’s website www .advanceenergyltd.com.au , the ASX website or the companies registered office at Suite 2 , 16 Ord Street, WEST PERTH, Western Australia 6872.

2. STATEMENT OF COMPLIANCE

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

The consolidated interim financial report does not include all of the notes and information normally included in an annual financial report. Accordingly this report should be read in conjunction with the consolidated annual financial report for the year ended 31 December 2010 and any public announcements made by Advance Energy Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules .

This consolidated interim financial report was approved by the Board of Directors on 29[th] August 2011.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied by the consolidated entity in this consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated financial report for the year ended 31 December 2010.

 Impact of standards issued but not applied by the entity

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2013 but is available for early adoption. When adopted, the standard will affect in particular the group’s accounting for its available-for sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading. Fair value gains and losses on available-for-sale debt investments will therefore have to be recognised directly in profit or loss. In current reporting period, the group has not recognised such gains or loss.

There will be no impact on the group’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the group does not have any such liabilities. The derecognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 9

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

changed. The group has not yet decided to adopt AASB 9.

4. ESTIMATES

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

In preparing this consolidated interim financial report the significant judgements made by management in applying the consolidated entity’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial report for the year ending 31 December 2010.

5. GOING CONCERN

These financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

As at 30 June 2011, the Group had net current assets of A$207,961 (31 December 2010 : A$1.069 million) and net asset deficiency of A$5.781 million (31 December 2010 : A$4.851 million). The Group has incurred a net loss after tax for the half year ended 30 June 2011 of A$837,076 (30 June 2010 : A$1,416,535).

Net cash outflow from operating activities of A$1,457,932 (2010 : A$870,937) were recorded for the six month period.

The Directors believe that there are sufficient funding strategies and alternatives to meet the Group’s working capital requirements which include, but not limited to, the issue of additional shares or convertible notes and/or financial support from its related parties and on this basis, the Group will be able to continue as a going concern. The company has a solid track record in this regard.

The Company has retained its 50% interest in the Mother Lode 3 development and production asset on which there are proven, probable and possible reserves. In June 2009, the Company released an unrisked PV10 valuation of this asset, based upon an independent assessment of the reserves, which was in excess of the current carrying cost of US$732,154. Subsequent to this and during the current financial year the first well (Roman 27-1) was drilled and completed as a producer. The Company will consider participation in the further drilling programmes on this project in the current financial year.

The Company is also currently reviewing energy projects internationally and will make market announcements as and when appropriate. It envisages that any new project acquisition will also see a recapitalisation to raise the necessary funds both for future exploration and development of any acquisition, and possibly to participate in the Mother Lode 3 drilling programme.

However, the Directors recognise that the ability of the Group to continue as a going concern and to pay its debts as and when they fall due is dependent on its ability to develop cash flow from its current assets, acquire new projects and to secure additional funding through the raising of further equity capital and/or support from its financiers.

Based on the above, the Group is confident that it will successfully meet its financial obligations into the foreseeable future.

Should the Group be unable to continue as a going concern, it may be required

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 10

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

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.

6. SEGMENT INFORMATION

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors as it makes the strategic decisions.

The Group has adopted a ‘management approach’, under which segment information is presented on the same basis as that used for internal reporting purposes. This has not resulted in change in the number of reportable segments presented. The segments are reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker.

The chief operating decision maker has determined the reporting segments as detailed below:

2011 Revenues Segment result (loss) Segment assets Segment liabilities Acquisition of plant & equipment, exploration & evaluation and other non- current assets Depreciation and amortisation	USA $ Australia $ Consolidated $
	111 206,867 206,978
	(179,730) (993,213) (1,172,943)
	(802,096) (1,515,284) (2,317,380)
	7,459,735 7,562,474 15,022,209
	(2,562) - (2,562)
	(3,161) - (3,161)

2010 Revenues Segment result (loss) Segment assets Segment liabilities Acquisition of plant & equipment, exploration & evaluation and other non- current assets Depreciation and amortisation	USA $ Australia $ Consolidated $
	1,604,899 325,559 1,930,458
	(492,824) (195,098) (297,725)
	(1,020,880) (3,024,610) (4,045,490)
	7,837,439 8,044,077 15,881,516
	1,247,425 - 1,247,425
	(766,331) - (766,331)

Segment revenue

Segment revenue reconciles to total revenue from the continuing operations as follow:

Total segment revenue Intersegment eliminations Total revenue from continuingoperations	Consolidated Half Year 30 June 2011 $ Half Year 30 June 2010 $
	206,978 1,930,458 (165,146) (317,572)
	41,832 1,612,886

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 11

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

Segment results

Segment result reconciles to total comprehensive income as follows:

	Consolidated	Consolidated
	Half Year		Half Year
	30 June 2011		30 June 2010
	$			$
Total segment result	(1,172,943)		(297,725)
Intersegment eliminations	393,745		(2,393,837)
(Profit)/ loss from discontinued operations	(57,878)		1,275,027
Foreign exchange elimination
Loss before tax	(837,076)		(1,416,535)
7.REVENUE FROM CONTINUING OPERATIONS
			Half year	Half year
		30	June 2011	30 June 2010
			$	$
Oil and gas sales			-	1,604,899
			Half year	Half year
8.LOSS FOR THE HALF YEAR		30 June 2011		30 June 2010
			$	$
Loss before income tax has been determined
after
Depreciation of plant and equipment			3,161	202,220
Depletion of oil and gas properties			-	564,111
Interest on borrowings			340,181	670,101
9. Exploration and evaluation expenses	30	Half year June 2011 $		Full year 31 December 2010 $
Oil & Gas assets as at 31 December		699,262		680,312
Purchase of Oil & Gas assets			2,562	18,501
Disposal/Sale of Oil & Gas Assets			-	-
Depletion			-	-
Foreign exchange difference		(34,774)		449
Oil & Gas Assets at 30 June		667,050		699,262
10. CONTINGENT ASSETS AND LIABILITIES

Since the last annual reporting date, there has been no change in any contingent liabilities or contingent assets.

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

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ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

11. LOSS PER SHARE

11. LOSS PER SHARE
	Half year	Half year
	30 June 2011	30 June 2010
	$	$
Reconciliation of earnings to net loss
Net loss	(837,076)	(1,416,535)
Earnings/(loss) used in the calculation of basic
EPS	(837,076)	(1,416,535)
	Number	Number
Weighted average number of ordinary shares
outstanding during the period used in	214,469,117	157,892,584
calculation of basic EPS
Diluted EPS is not reflected as it would result in the reduction of the loss per share.

12. EQUITY SECURITIES ISSUED

During the period, 20 options expiring on 31 August 2012 at $0.03 were converted to 20 fully paid ordinary shares (2010: 23,000,000 ordinary fully paid shares were issued at $0.01 per share).

13. INTERESTS IN JOINT VENTURES

As at 30 June 2011, the investment in the associate is not brought to account as the Company’s share of losses exceeds its interest in the associate and as such these further losses are not recognised.

14. INTEREST BEARING LIABILITIES

Current Short term loans Unsecured Accrued interest Non Current Convertible Notes – unsecured(1) Face value of the note Interest Accrued	Half year 30 June 2011 $ Full year 31 December 2010 $ 343,137 566,439 10,908 218,552
	354,045 784,991 6,675,500 6,675,500 - -
	6,675,500 6,675,500

(1) The terms of these notes are sixty (60) months with a coupon rate of 9.5% per annum, and a redemption date of 31 December 2014.

15. SUBSEQUENT EVENTS

There were no events subsequent to half year end that affect the group as at the date of this report or for the foreseeable future.

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 13

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

16. RELATED PARTY TRANSACTIONS

During the period there were changes to related party transactions to those contained in the Annual Report for the year ended 31 December 2010. These are listed below.

At the end of the period the following loans amounts were owed to related parties:	At the end of the period the following loans amounts were owed to related parties:	At the end of the period the following loans amounts were owed to related parties:
Entity	Amount (Owing)/Receivable $A	Relationship
AAG Management Pty Ltd GBU Capital Pty Ltd GBU Securities Pty Ltd	-	AAG Management Pty Ltd is a management company which provides facilities, human resources, and other administration and consulting services. AAG Management Pty Ltd is a fully owned subsidiary of GBU Capital Pty Ltd. GBU Capital Pty Ltd is a related party because Anthony Short and Gordon Sklenka are directors of GBU Capital. During the period, outstanding receivables from AAG and GBU of $28,155 are provided for. During the period GBU Capital has charged $100,000 for facility/administrative services. GBU Security Pty Ltd is a fully owned subsidiary for GBU Capital Pty Ltd. During the period, GBU Security has charged $13,800 for capital raising.
Greencode Pty Ltd Interest payable	(175,000) (65,787)	Greencode Pty Limited is a related party because it is a subsidiary company of AXG Mining Limited of which Gordon Sklenka is a directors of. The loan facility accrues 6.25% interest per annum. During the period $325,000 has been paid.
Pure Dawn Pty Ltd /Vector Resources Ltd	-	Pure Dawn Pty Ltd is a related party because it is a fully owned subsidiary of Vector Resources Ltd a company of which Gordon Sklenka and Anthony Short were previously directors. During the period, outstanding balance of $100,000has beenpaid.
Palace Resources Limited Interest Payable	- (18,659)	Palace Resources Limited is a related party because Anthony Short was previously a director. During the period $26,853 loan balance was paid off.
Odin Energy Ltd Interest Payable	(179,045) (18,739)	Odin Energy is a related party because Anthony Short was previously a director of Odin Energy Ltd and David Ballantyne is a director of Odin Energy Ltd and company secretary of both companies. The outstanding interest of $18,739 is included in trade payables. During the year$90,000has

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 14

ADVANCE ENERGY LIMITED - HALF YEAR REPORT – 30 JUNE 2011

been repaid out of which $10,908 was interest repayment. Kilgore Exploration Inc (KEI) is fully owned subsidiary of Odin Energy Ltd. The receivables from KEI of $6,263 are included in trade creditors. Glory Run Pty Ltd is a fully owned subsidiary of Odin Energy Ltd. During the period, $12,176 has been charged for capital raising.

Director’s consulting

Formaine Pty Ltd is a consulting company of Gordon Sklenka. During the year $23,837 has been charged for their consulting. The outstanding director’s fee of $93,449 is included in trade payables.
Cumberland Pty Ltd and Fay Holdings Pty Ltd are consulting companies of Anthony Short. During the year $14,821 has been charged for director’s consulting.

ADVANCE ENERGY LIMITED Half Year Report for period ended 30 June 2011 ASX CODE: AVD www.advanceenergyltd.com.au

pg. 15

ADVANCE ENERGY LI M ITED - HALF YEAR REPO R T – 30 JUNE 2 011

DIRECTORS DECLARATION FOR THE HALF YEAR ENDED 30 JUNE 2011

In the o p inion of t h e director s of Adva n ce Energ y Limited ( “ the Com p any”):

the fina n cial state m ent and notes set o ut on pa g es 5 to 15 , are in accord a nce with t he Corpo r ations Ac t 2001 incl u ding:
(a) g i ving a tru e and fair v iew of th e financial position o f the cons o lidated e n tity as at 3 0 June 2 0 11 and of its perfor m ance, as r epresent e d by t h e results of its opera t ions and c ash flows for the ha l f-year en d ed on t h at date; a nd
(b) c o mplying w ith Austr a lian Accounting Standard AA S B 134 Interim Financial R e porting a n d the Co r poration R egulation s 2001; an d
1. there ar e reasona b le groun d s to belie v e that th e Compan y will be a b le to pay its debts as a n d when t h ey beco m e due an d payabl e .

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Anthon y Short Managi n g Directo r Dated at PERTH this 29[th] day of August 2 011.

ADVANCE E N ERGY LIMITED Half Year Re p ort for period e nded 30 June 2011 ASX CODE: A VD www.ad v anceenergylt d .com.au

pg. 16

Tel: +8 6382 4600 38 Station Street Fax: +8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ADVANCE ENERGY LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Advance Energy Limited, which comprises the statement of financial position as at 30 June 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the halfyear ended on that date, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the disclosing entity and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the consolidated entity are responsible for the preparation of the half-year financial report in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the halfyear 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 the disclosing entity’s financial position as at 30 June 2011 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 Advance Energy Limited, 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 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Advance Energy Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited 17 by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards

Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

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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 Advance Energy Limited is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2011 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

Without qualifying our conclusion, we draw attention to Note 5 in the half-year financial report, which indicates that the consolidated entity incurred a net loss of $837,076 during the half-year ended 30 June 2011 and, as of that date the consolidated entity’s liabilities exceeded its total assets by $5,781,024. The consolidated entity will be required to seek additional funding through debt, equity or other means to continue its activities. These conditions, along with other matters as set forth in Note 5, indicate the existence of a material uncertainty which may cast significant 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 discharge its liabilities in the normal course of business.

BDO Audit (WA) Pty Ltd

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Phillip Murdoch Director

Signed in Perth, Western Australia Dated this 29[th] day August 2011

AI assistant

TALIUS GROUP LIMITED — Interim / Quarterly Report 2011

65893_rns_2011-08-29_4de631aa-f8c9-4c22-a128-cd9ca679925b.pdf

A D VANCE E N ER G Y LI M ITE D an d its C ontr o lled Entities ACN 1 1 1 823 762

A d ix 4D p pen

Half-Ye a r En d ed 30 JUN E 2011

Results for announcement to the market

Dividends

Commentary

Details of Entities over which Control has been Gained or Lost

Details of Associates and Joint Venture Entities

Compliance Statement

H ALF Y EAR R EPO R T 3 0 JUNE 2011

DIRECTORS REPORT

DIRECTORS

PRINCIPAL ACTIVITIES

OPERATING RESULTS

DIVIDENDS PAID OR RECOMMENDED

REVIEW OF OPERATIONS

OPERATIONS

Motherlode Phase III Project, Martin County

CORPORATE

SUBSEQUENT EVENTS

AUDITOR’S INDEPENDENCE DECLARATION

A. Short

DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF ADVANCE ENERGY LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2011

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 30 JUNE 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 JUNE 2011

CONDENSED NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT

1. REPORTING ENTITY

2. STATEMENT OF COMPLIANCE

3. SIGNIFICANT ACCOUNTING POLICIES

 Impact of standards issued but not applied by the entity

4. ESTIMATES

5. GOING CONCERN

6. SEGMENT INFORMATION

Segment revenue

Segment results

11. LOSS PER SHARE

12. EQUITY SECURITIES ISSUED

13. INTERESTS IN JOINT VENTURES

14. INTEREST BEARING LIABILITIES

15. SUBSEQUENT EVENTS

16. RELATED PARTY TRANSACTIONS

Director’s consulting

DIRECTORS DECLARATION FOR THE HALF YEAR ENDED 30 JUNE 2011

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ADVANCE ENERGY LIMITED

Report on the Half-Year Financial Report

Directors’ Responsibility for the Half-Year Financial Report

Auditor’s Responsibility

Independence

Conclusion

Emphasis of Matter

BDO Audit (WA) Pty Ltd

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TALIUS GROUP LIMITED Interim / Quarterly Report 2011