TASMAN RESOURCES LTD — Annual Report 2014

Sep 25, 2014

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for the Year Ended 30 June 2014

Tasman Resources Ltd & Controlled Entities ABN: 85 009 253 187

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R E S O U R C E S LTD

Table of Contents

Table of Contents
Highlights for the Year to 30 June 2014	3
Corporate Directory	4
Review of Operations	5
Corporate Governance Statement	11
Directors’ Report	15
Auditor’s Independence Declaration	20
Consolidated Statement of Profit or Loss and Other Comprehensive Income	21
Consolidated Statement of Financial Position	22
Consolidated Statement of Changes in Equity	23
Consolidated Statement of Cash Flows	24
Notes to the Financial Statements	25
Directors’ Declaration	45
Independent Auditor’s Report	46
Additional Information for Listed Public Companies	48
Tenement Schedule	49
JORC Table 1	50

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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HIGHLIGHTS FOR THE YEAR TO 30 JUNE 2014

Vulcan IOCGU* Project (EL 4322), South Australia

• During the year a further two diamond drill holes were completed under the Tasman/Rio Tinto Exploration (RTX) Farm-in Agreement. Subsequently, RTX informed Tasman of its decision not to elect to proceed to the next stage and the Agreement was terminated. Tasman continues as the owner of 100% of the Vulcan Project, which is part of Tasman’s Lake Torrens Project.

• All nine holes completed during the term of the Tasman/RTX Farm-in Agreement intersected variable strength iron-oxide copper-gold-uranium (IOCGU*) style alteration and mineralisation. Although no zones of strong mineralisation were intersected, a number of thick zones of low grade IOCGU mineralisation were intersected. The most encouraging result was obtained for drill hole VUD 15, which intersected (down hole) 145m at 0.49% Cu and 0.26g/t Au from 1191m, including 52m at 0.87% Cu and 0.46g/t Au.

• Following the RTX withdrawal Tasman aims to advance exploration at the Lake Torrens Project through either a new joint venture with an appropriate partner or in Tasman’s own right. Preliminary expressions of interest in further exploration were received from a number of larger mining houses, some of which are still currently evaluating the exploration data.

(*IOCGU Iron-oxide copper-gold-uranium)

Parkinson Dam Epithermal Gold-Silver Project (EL4475), South Australia

• At Tasman’s epithermal gold-silver project (Tasman 100%) a new target of approximately 18 km[2] has been identified. The target builds on recent epithermal discoveries (eg. Investigator Resources Limited’s 20Moz Paris silver discovery) and developments in regional geological understanding.

• Tasman plans to follow up the target with soil/ RAB geochemical sampling programs once all necessary approvals are in place.

Other Prospects

• No further work was conducted during the year at Tasman’s Lucas Hill prospect or in the central Gawler Craton in South Australia. During the year Tasman was granted a new exploration licence (EL 5363) at Mt Boothby in South Australia, however to date no field work has been conducted.

• Tasman has a 19% interest in Conico Ltd (formerly Fission Energy Ltd). Conico owns 50% of the Mt Thirsty nickel-cobalt-manganese oxide deposit in Western Australia.

• Tasman has a 46% interest in diversified clean energy company Eden Energy Ltd. Eden has interests in carbon nanotube & carbon fibre production, Optiblend[TM] dual fuel technology, hydrogen production, storage & transport fuel systems, including the low emission Hythane[TM] hydrogen-methane blend, coal bed methane and shale gas in the UK.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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CORPORATE DIRECTORY

DIRECTORS:

Gregory H Solomon LLB (Executive Chairman) Douglas H Solomon BJuris LLB (Hons) (Non-Executive) Guy T Le Page B.A., B.Sc. (Hons).,M.B.A., F.FIN., MAusIMM (Non-Executive)

COMPANY SECRETARY:

Aaron P Gates BCom CA ACSA

REGISTERED OFFICE:

Level 15 197 St Georges Terrace Perth Western Australia 6000 Tel +61 8 9282 5889 Fax +61 8 9282 5866 Email: mailroom@tasmanresources.com.au Website: www.tasmanresources.com.au

SOLICITORS:

Solomon Brothers Level 15 197 St Georges Terrace Perth WA 6000

Minter Ellison 1 King William Street Adelaide SA 5000

AUDITORS:

Nexia Perth Audit Services Pty Ltd Level 3 88 William Street Perth WA 6000

SHARE REGISTRY:

Advance Share Registry Services 150 Stirling Highway Nedlands WA 6009

STOCK EXCHANGE LISTING:

ASX Code: TAS (ordinary shares)

Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Securities Exchange Limited.

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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REVIEW OF OPERATIONS

The Company has Exploration Licences located in South Australia covering a range of commodities – gold, silver, copper and uranium, for which the company’s tenements are considered prospective.

Tasman Resources Ltd holds a 100% interest in the following exploration projects:

• The Lake Torrens IOCGU Project comprising Exploration Licences 4300, 4322, 4857 and 5366.

• The Lucas Hill IOCGU Project (EL 4770).

• The Parkinson Dam Epithermal Gold - Silver Project (EL 4475).

• The Central Gawler Gold Project (EL 5151).

• The Mt Boothby Gold-Base Metal Project (EL 5363).

EXPLORATION RESULTS

During the year, the Company spent $1.35 million on various exploration activities. Details of the results of the exploration are outlined below.

Lake Torrens Iron-oxide, Copper-Gold Uranium (IOCGU) Project (100% Tasman)

Vulcan Project

During the year a further two diamond drill holes were completed under the Tasman/Rio Tinto Exploration (RTX) Farm-in Agreement. Subsequently, RTX informed Tasman of its decision not to elect to proceed with earning the Stage 1 Participating Share under the Agreement, and withdrew from the Agreement. Tasman continues as the owner of 100% of the Vulcan Project, which is part of Tasman’s Lake Torrens Project.

All nine holes completed during the term of the Tasman/RTX Farm-in Agreement intersected variable strength iron-oxide copper-gold-uranium (IOCGU) style alteration and mineralisation (see Figures 1 and 2). Although no zones of strong mineralisation were intersected, some thick zones of low grade IOCGU mineralisation was intersected in a number of drill holes. The most encouraging result was obtained for drill hole VUD 15, which intersected (down hole) 145m at 0.49% Cu and 0.26g/t Au from 1191m, including 52m at 0.87% Cu and 0.46g/t Au (further details are included in Table 2 below).

Following the RTX withdrawal Tasman aims to advance exploration at the Lake Torrens Project through either a new joint venture with an appropriate partner or in Tasman’s own right. Preliminary expressions of interest in further exploration were received from a number of larger mining houses, some of which are still currently evaluating the exploration data.

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EL 4322
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Figure 1: Location Plan showing certain of Tasman’s Lake Torrens tenements, the Vulcan IOCGU Project, located within EL 4322 and nearby IOCGU deposits/systems.

ASX Code: TAS

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Footprint of Carrapateena
deposit
at same scale
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Figure 2. Residual gravity image (coloured) showing the surface projection of existing holes (numbered) as linear traces, with the basement intersection in each shown in aqua (drill hole SHD 1 was drilled in 1981 by WMC). Also shown are the currently defined exploration targets – the larger, high priority targets are shown as green ellipses and secondary targets in yellow. Also shown at the same scale (as a superimposed white ellipse) is the area occupied by the Carrapateena deposit based on 2011 Inferred Resource (located approximately 120km to the south southeast). (Datum GDA 94; MGA Zone 53)

Drilling Results

For all nine drill holes completed under the Tasman/RTX Farm-In, collar locations and drill hole details are included in Table 1 on page 10, and a summary of significant assay results are included in Table 2 on page 10.

Background to Vulcan Discovery

Tasman identified Vulcan, within the Lake Torrens project area, as a prime IOCGU target in 2009, based on the presence of a very large gravity anomaly, supporting magnetic and seismic anomalies and Vulcan’s location close to key tectonic (structural) lineaments, which had previously been used in the original targeting of Olympic Dam by WMC in the mid-1970s. Tasman’s initial discovery drill hole, VUD 001, intersected the Vulcan IOCGU system late in 2009.

Eight diamond drill holes had been completed by Tasman at Vulcan between 2009 and early 2011. All exhibit IOCGU-style alteration and/or mineralisation, including copper, gold, uranium, silver, molybdenum and rare earth elements. Age dating of the mineralisation at about 1,590 million years confirms that Vulcan belongs to the same “family” of deposits as Olympic Dam, Prominent Hill and Carrapateena.

Tasman entered a Farm In/ Joint Venture with Rio Tinto Exploration (RTX) covering the whole of EL 4322, including the Vulcan discovery. Under the Farm In, RTX paid to Tasman $10 million and Tasman managed an exploration programme consisting of 12,000m of drilling. RTX withdrew from the Farm In in early 2014.

Parkinson Dam Epithermal Gold-Silver Project, South Australia (Tasman 100%)

Tasman Resources has recently reassessed the potential of its Parkinson Dam epithermal gold – silver project in the light of recent discoveries and developments in the region. For example, in October 2013 Investigator Resources Ltd announced an Inferred Mineral Resource containing 20Moz of silver at its Paris Project located to the west of Tasman’s Parkinson Dam Project in a similar regional geological position.

It has also been clear for several years that a large area (stretching for at least 125km), located immediately south of the southern margin of the Gawler Range Volcanics in South Australia (see Figure 3) has potential for shallow epithermal gold–silver and base metal (lead–zinc–silver) deposits. In addition to Paris, significant occurrences in the area include the Menninnie Dam silver-lead-zinc deposit, Weednanna gold prospect, Uno/Morgans (gold, silver, copper prospects) and others.

ASX Code: TAS

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Tasman’s Parkinson Dam epithermal gold-silver (lead-zinc) prospect occurs on the eastern limit of this large area of interest, but has not been explored at all over the large western portion of the tenement immediately adjacent to but south of the Gawler Range Volcanics (about 18 km[2] , see Figures 3 and 4). This area comprises relatively thin transported cover and will be tested by soil/RAB geochemical sampling programs after completion of an aboriginal heritage survey and the necessary approvals for drilling being obtained from the SA Department of State Development, which may not be until late October, early November.

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New epithermal target
zone (see Figure 4)
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Figure 3: Schematic regional plan showing Tasman’s Parkinson Dam prospect, the southern margin of the Gawler Range Volcanics and known mineral occurrences. Lead-zinc-silver and silver deposits/prospects are shown as grey dots, gold in yellow and copper in orange. Interpreted regional faults are shown as black lines. Some of the data have been extracted from a compilation prepared by Investigator Resources Ltd (GDA 94; Zone 53).

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Figure 4: Plan of Tasman’s Parkinson Dam prospect (EL 4475) showing area of previously defined epithermal mineralisation and newly defined exploration target zone adjacent to the Gawler Range Volcanics. This zone is about 18 km[2] in area (GDA 94; Zone 53).

ASX Code: TAS

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Recent Work

Recent reconnaissance in the Target Zone area by Tasman has identified fine-grained black pyritic sediments on the mullock heap of an old well. This implies that part of the Target Zone is probably underlain by the Uno Shale, an upper unit of the Corunna Conglomerate, which has not previously been identified in this area. This unit is likely to be more amenable to gold/silver deposition than the conglomerates hosting the known mineralisation to the east, should any epithermal solutions have been channelled through it.

Previous Exploration Results at Parkinson Dam

Tasman discovered outcropping epithermal gold – silver mineralisation at Parkinson Dam in 2005 after following up previous company soil sampling and known copper-gold mineralisation at the Spencer prospect, 20km to the south-east. Subsequent drilling confirmed the presence of widespread, but generally low-grade mineralisation over several square kilometres; however, in one area an intersection of 21m at 21g/t Au and 83g/t Ag was obtained. Selected intersections from drilling include:

• PD 63: 21m down hole from 179m at 21g/t Au and 83g/t Ag (including 9m from 179m at 31g/t Au and 152g/t Ag)

• PD 30: 20m down hole from 237m at 0.1g/t Au, 16g/t Ag, 1.2% Pb, 1.5% Zn (including 1.66m down hole from 254.34m at 1.2g/t Au, 120g/t Ag, 7.6% Pb and 10.5% Zn)

This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported (refer ASX announcements 14[th] June 2007: “High-Grade Assay Results from Parkinson Dam” (PD 63) and 6[th] November 2006: “High Grade Lead and Zinc at Parkinson Dam” (PD 30), available to view on www.tasmanresources.com.au.)

Lucas Hill IOCGU Project (100% Tasman)

No further drilling was conducted during the year at Lucas Hill prospect on the Stuart Shelf, approximately 25km south east of Woomera. Alteration and weak copper mineralisation were intersected in the initial two holes completed by Tasman early in 2012.

Central Gawler Gold-Nickel Project (100% Tasman)

No further work was conducted by Tasman on these tenements during the year.

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Figure 5: Location of Tasman Project Areas in South Australia

ASX Code: TAS

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INVESTMENTS

Investment in Conico Ltd (formerly Fission Energy Ltd). (Tasman has a 19% interest in Conico on a fully diluted basis)

Mt Thirsty Oxide Deposit

Conico Ltd owns 50% of the Mt Thirsty Nickel-Cobalt Project in WA, with the other 50% held by Barra Resources Limited (ASX: BAR). Mt Thirsty is located 20 kilometres north-northwest of Norseman, Western Australia. Mt Thirsty has a JORC (2004) compliant Indicated Resource of 16.6 million tonnes at 0.14% Co, 0.60% Ni and 0.98% Mn and a JORC (2004) compliant Inferred Resource of 15.3 million tonnes at 0.11% Co, 0.51% Ni and 0.73% Mn over an apparent strike of 1.3 kilometres and a width of around 800 metres.

(This resource information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, refer ASX Announcement 8[th] March 2011: “Resource Upgrade”, available to view on www.conico.com.au.)

Investment in Eden Energy Ltd (Tasman has a 46% interest in Eden Energy) Highlights for the year are:

OptiBlend™ Dual Fuel Project

• Aggregate value of orders received in Financial Year (FY) 2013-14 of US$1.796million (A$1.9million). This equates to an increase of 133% over FY 2012-13 orders received of US$0.77million.

• Cummins selected Eden’s Optiblend[TM] dual fuel system to deliver an integrated retrofit solution for dual fuel drilling rig power.

• Target markets – Oil and Gas Market, and Back-up Power (hospitals, essential services, data centres).

• Heavy Duty Model Released- improved tolerance of extreme temperatures and vibration, suitable for use on gensets installed on drilling rigs and fracking trucks.

• Reduction in emissions shown with an OptiBlend[TM] unit used on a diesel genset in conjunction with a diesel oxidation catalyst.

• Further increases in sales during FY 2014-15 anticipated.

– Pyrolysis Project Carbon Nanotubes / Carbon Nanofibres / Hydrogen

• Eden’s carbon nanotube project was selected from an initial field of 228 entries as one of 14 finalists in the prestigious 2014 Australian Technologies Competition business accelerator program.

• Initial US tests of carbon nanotube enriched mortar paste have resulted in an encouraging increase of 23.3% in compressive strength and a 13.6% increase in flexural strength after 28 days.

• Preliminary trial in USA during the next 3months of Eden’s CNT enriched concrete on a suitable roadway or similar area is scheduled.

United Kingdom Coal Bed Methane /Shale Gas/ Natural Gas

• Eden entered into a conditional Heads of Terms with its existing UK gas and petroleum Joint Venture partners to merge their respective interests.

Corporate

• Eden completed a non-renounceable, pro-rata rights issue raising A$1.04 million.

• Eden settled its claim against Engenco Ltd resulting in Eden receiving $800,000 in full settlement of its claim for the balance of the purchase price under a sale in 2008 of certain US hydrogen assets.

• Eden settled the litigation with La Jolla Cove Investors (“LJCI”) arising out of conduct by LJCI in June 2012 which Eden claimed was a repudiation by LJCI of a funding agreement pursuant to which LJCI was providing ongoing funding to Eden which was being repaid by Eden issuing shares to LJCI. Under terms of the settlement, Eden paid to LJCI the sum of US$325,000 in full and final settlement of all claims of LJCI, which were for US$566,156 plus costs and damages.

ASX Code: TAS

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Table 1: Summary of Drill Hole Collar Details

Hole No.	Collar Coordinates GDA 94 Zone 53	Collar Coordinates GDA 94 Zone 53	RL	Inclination	Azimuth	Final Depth
	mE	mN	m	Degrees	Grid	m
VUD 9	694,686	6,657,191	90	-90	0	1,110.80
Waterbore	694,683	6,657,168	90	-90	0	144.00
VUD 10	695,975	6,657,342	88	-70	135	1,256.90
VUD 11	695,366	6,657,208	89	-70	172	1,466.70
VUD 12	695,979	6,657,335	88	-80	180	1,337.40
VUD 13	695,386	6,657,211	89	-65	270	1,524.20
VUD 14	694,410	6,658,325	87	-65	155	1,488.20
VUD 15	693,961	6,660,700	111	-80	240	1,378.00
VUD 16	695,059	6,657,112	86.5	-60	173	1,503.70
VUD 17	698,284	6,659,021	86.5	-80	233	1,277.00

Table 2: Summary of Significant Assay Results

Drill Hole No.	Down Hole Intersection	Down Hole Intersection	Significant Assay Results	Significant Assay Results	Significant Assay Results	Significant Assay Results
	From(m)	Thickness(m)	Cu(%)	Au(g/t)	Ag (g/t)	U3O8 (kg/t)
VUD9 &10	No Significant assays
VUD 11	1027	137	0.14	0.18	2	0.08
	1027	18	0.25	0.26	4	0.03
inc.	1094	12	0.2	0.24	4	0.17
and	1111	12	0.18	0.26	2	0.19
and	1128	36	0.23	0.1	2	0.04
VUD 12	819.7	517.7	0.15	0.04	1	0.03
inc.	819.7	11.3	0.38	0.22	2	0.16
and	916	77	0.26	0.05	1	0.02
and	1068	85	0.22	0.06	1	0.03
VUD 13 & 14	No Significant assays
VUD 15	1191	145	0.49	0.26	1	0.06
inc.	1284	52	0.87	0.46	1	0.07
	1310	21	1.69	1.05	2	0.09
VUD 16	1475	25	0.28	0.14	0.4	0.03
VUD 17	1089	188	0.20	0.08	2.1	0.06
inc.	1190	28	0.43	0.13	3.3	0.15

Note that all results have been previously released in Announcements and Quarterly Reports through the ASX. Results for drill holes VUD 9 to VUD 15 were first released under the JORC Code 2004, and results for drill holes VUD 16 and VUD 17 were released under JORC Code 2012. The results for drill holes VUD 9 to VUD 15 have not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was previously reported.

Assays are for down hole intersections, and at this stage the true width of the mineralisation intersected is not known. Assay results are based on analysis of both one metre half core diamond saw split samples of NQ diamond drill core and chip samples of core composited over five metre intervals. (Further details are provided in JORC Table 1 below). Average assays for the intervals stated above were calculated by weighting by sample length and sample density.

Samples were crushed and pulverised, and analysed as follows: Au by fire assay using the Genalysis fire assay scheme FA25/MS with a 1 ppb detection limit. Cu was analysed using Genalysis scheme 4A/OE (1ppm detection limit), involving a multi acid digest with an inductively coupled plasma optical emission spectrometry finish. Ag and U3O8 were analysed using Genalysis scheme 4A/MS (0.05ppm and 0.01ppm respectively), involving a multi acid digest with an inductively coupled plasma mass spectrometry finish.

Disclaimer

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for complete certainty. Any economic decisions that might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk. It should not be assumed that the reported Exploration Results will result, with further exploration, in the definition of a Mineral Resource.

Competent Persons Statement

The information in this annual report that relates to Exploration Results is based on and fairly represents information compiled by Robert N. Smith and Michael J. Glasson, Competent Persons who are members of the Australian Institute of Geoscientists.

Mr Smith and Mr Glasson are full-time employees of the company. Mr Glasson is a shareholder in the company. Mr Smith and Mr Glasson have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Smith and Mr Glasson consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

ASX Code: TAS

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CORPORATE GOVERNANCE STATEMENT

The Board of Directors

The Company’s constitution provides that the number of directors shall not be less than three and not more than ten. There is no requirement for any share holding qualification.

As and if the Company’s activities increase in size, nature and scope the size of the board will be reviewed periodically, and as circumstances demand.

The membership of the board, its activities and composition, is subject to periodic review. The criteria for determining the identification and appointment of a suitable candidate for the board shall include quality of the individual, background of experience and achievement, compatibility with other board members, credibility within the Company’s scope of activities, intellectual ability to contribute to board’s duties and physical ability to undertake board’s duties and responsibilities.

Directors are initially appointed by the full board subject to election by shareholders at the next general meeting. Under the Company’s constitution the tenure of a director (other than managing director, and only one managing director where the position is jointly held) is subject to reappointment by shareholders not later than the third anniversary following his or her last appointment. Subject to the requirements of the Corporation Act 2001, the board does not subscribe to the principle of retirement age and there is no maximum period of service as a director. A managing director may be appointed for any period and on any terms the directors think fit and, subject to the terms of any agreement entered into, may revoke the appointment.

The Board considers that the Company is not currently of a size, nor are its affairs of such complexity to justify the formation of separate or special committees at this time. The board as a whole is able to address the governance aspects of the full scope of the Company’s activities and to ensure that it adheres to appropriate ethical standards.

Role of the Board

The Board’s primary role is the protection and enhancement of long-term shareholder value.

To fulfil this role, the board is responsible for oversight of management and the overall corporate governance statement of the Company including its strategic direction, establishing goals for management and monitoring the achievement of these goals.

Appointments to Other Boards

Directors are required to take into consideration any potential conflicts of interest when accepting appointments to other boards.

Independent Professional Advice

The Board has determined that individual directors have the right in connection with their duties and responsibilities as directors, to seek independent professional advice at the Company’s expense. With the exception of expenses for legal advice in relation to director’s rights and duties, the engagement of an outside adviser is subject to prior approval of the Chairman and this will not be withheld unreasonably.

Continuous Review of Corporate Governance

Directors consider, on an ongoing basis, how management information is presented to them and whether such information is sufficient to enable them to discharge their duties as directors of the Company. Such information must be sufficient to enable the directors to determine appropriate operating and financial strategies from time to time in light of changing circumstances and economic conditions. The directors recognise that mineral exploration is an inherently risky business and that operational strategies adopted should, notwithstanding, be directed towards improving or maintaining the net worth of the Company.

ASX Principles of Good Corporate Governance

The board has reviewed its current practices in light of the ASX Principles of Good Corporate Governance and Best Practice Guidelines with a view to making amendments where applicable after considering the Company’s size and the resources it has available.

As the Company’s activities develop in size, nature and scope, the size of the board and the implementation of any additional formal corporate governance committees will be given further consideration.

The following table sets out the Company’s present position with regard to adoption of these Principles.

ASX Code: TAS

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CORPORATE GOVERNANCE STATEMENT

	ASX Principle	Reference/comment
Principle 1: Lay solid foundations for management and oversight
1.1	Companies should establish the functions reserved to the board and those delegated to senior executives and disclose those functions.	The Company has not adopted this recommendation to formalise and disclose the functions reserved to the Board and those delegated to management. The roles and functions within the Company must remain flexible in order for it to best function within its level of available resources.
1.2	Companies should disclose the process for evaluating the performance of senior executives.	The Company does not have any senior executives and as such has not developed a process for evaluating the performance of senior executives.
1.3	Companies should provide the information indicated in the Guide to Reporting on Principle 1.	See above.
Principle 2: Structure the board to add value
2.1	A majority of the Board should be independent directors.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.
2.2	The chair should be an independent director.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.
2.3	The roles of chair and chief executive officer should not be exercised by the same individual.	The Company does not have a Chief Executive Officer.
2.4	The Board should establish a nomination committee.	Acting in its ordinary capacity from time to time as required, the Board carries out the process of determining the need for, screening and appointing new directors. In view of the size and resources available to the Company, it is not considered that a separate nomination committee is warranted.
2.5	Companies should disclose the process for evaluating the performance of the Board, its committees and individual directors.	Acting in its ordinary capacity, the Board from time to time carries out the process of considering and determining performance issues. Whenever relevant, any such matters are reported to the ASX.
2.6	Companies should provide the information indicated in Guide to Reporting on Principle 2.	The skills and experience of directors are set out in the Company’s Annual Report and on its website.
Principle 3: Promote ethical and responsible decision-making
3.1	Companies should establish a code of conduct and disclose the code or summary of the code as to: • the practices necessary to maintain confidence in the Company’s integrity • the practices necessary to take into account their legal obligations and the responsible expectations of their stakeholders • the responsibility and accountability of individuals reporting or investigating reports of unethicalpractices.	The Company has a Code of Conduct which can be viewed on the Company’s website.
3.2	Companies should establish a policy concerning diversity and disclose the policy or a summary of that policy. The policy should include requirements for the board to establish measurable objectives for achieving gender diversity and for the board to assess annually both the objectives and progress in achieving them.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.

ASX Code: TAS

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3.3	Companies should disclose in each annual report the measurable objectives for achieving gender diversity set by the board in accordance with the diversity policy and progress towards achieving them.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle.
3.4	Companies should disclose in each annual report the proportion of women employees in the whole organisation, women in senior executive positions and women on the board.	Tasman does not have any women employees in the organisation, women in senior executive positions or women on the Board.
3.5	Companies should provide the information indicated in Guide to Reporting on Principle 3.	The Code of Conduct can be viewed on the Company’s website.

Principle 4: Safeguard integrity in financial reporting

4.1	The board should establish an audit committee.	Due to the Company’s size, nature and extent of operations, the company has departed from this principle. The Board itself is the forum that deals with this function.
4.2	The audit committee should be structured so that it: • consists only non-executive directors • consists of a majority of independent directors • is chaired by an independent chair, who is not the chair of the board • At least three members	See 4.1
4.3	The audit committee should have a formal charter.	See 4.1
4.4	Companies should provide the information indicated in Guide to Reporting on Principle 4.	See above.
Principle 5: Make timely and balanced disclosure
5.1	Companies should establish written policies designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior management level for that compliance and disclose those policies or a summary of those policies.	The Company has a Continuous Disclosure Policy which can be viewed on the Company’s website.
5.2	Companies should provide the information indicated in Guide to Reporting on Principle 5.	See above.
Principle 6: Respect the rights of shareholders
6.1	Companies should design and disclose a communications policy for promoting effective communication with shareholders and encourage their participation at general meetings and disclose their policy or a summary of that policy.	The Company has a Communications Policy which can be viewed on the Company’s website.
6.2	Companies should provide the information indicated in Guide to Reporting on Principle 6.	The Company has a Communications Policy which can be viewed on the Company’s website.

ASX Code: TAS

Page 13 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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Principle 7: Recognise and manage risk

7.1	Companies should establish policies for the oversight and management of material business risks and disclose a summary of those policies.	Due to the size and nature of the Company, the Company does not have formalised policies on risk management. The Board recognises its responsibility for identifying areas of material business risk and for ensuring that arrangements are in place for adequately managing these risks. This issue is regularly reviewed at board meetings and risk management culture is encouraged amongst employees and contractors.
7.2	The board should require management to design and implement the risk management and internal control system to manage the company’s material business risks and report to it on whether those risks are being managed effectively. The board should disclose that management has reported to it as to the effectiveness of the company’s management of its material business risks.	See above.
7.3	The board should disclose whether it has received assurance from the chief executive officer (or equivalent) and the chief financial officer (or equivalent) that the declaration provided in accordance with section 295A of the Corporations Act is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.	The Executive Chairman and the Chief Financial Officer make this assurance to the board.
7.4	Provide information indicated in Guide to Reporting on Principle 7.	See above.
Principle 8: Remunerate fairly and responsibly
8.1	The board should establish a remuneration committee.	Due to the size and nature of the Company, the Company does not have a remuneration committee. The Company’s Constitution allows for a maximum amount per annum to be paid to non-executive directors, to be allocated at the discretion of the directors. Any changes to the annual amount must be approved at a General Meeting of members of the Company.
8.2	The remuneration committee should be structured so that it: • consists of a majority of independent directors • is chaired by an independent chair has at least three members.	See 8.1
8.3	Companies should clearly distinguish the structure of non-executive directors remuneration from that of executives.	See 8.1
8.4	Companies should provide information indicated in ASX Guide to Reporting on Principle 8.	No schemes exist for retirement benefits for non-executive directors other than statutory superannuation.

ASX Code: TAS

Page 14 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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DIRECTORS’ REPORT

Your directors present their report on the company and its controlled entities for the financial year ended 30 June 2014.

Directors

The names of directors in office at any time during or since the end of the year are:

Gregory H Solomon

Douglas H Solomon

Guy T Le Page

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Company Secretary

The following person held the position of company secretary at the end of the financial year:

Mr Aaron P Gates has worked for Tasman Resources Ltd for the past 6 years. He is a Chartered Accountant and Chartered Secretary, has completed a Bachelor of Commerce (Curtin University) with majors in accounting and business law and completed a Diploma of Corporate Governance. Prior to joining Tasman he worked in public practice in audit and corporate finance roles.

Principal Activities

The principal activities of the group during the financial year ended 30 June 2014 was mineral exploration and the provision of new, clean green energy opportunities.

Operating Results

The consolidated loss of the group after providing for income tax was $2,005,673 (2013: profit of $7,617,614).

Dividends Paid or Recommended

No dividends were paid or declared for payment during the year.

Mineral Exploration Operations

Tasman’s primary focus during the year has been mineral exploration for a range of commodities within the Company’s tenements in South Australia. The principal exploration projects are Lake Torrens IOCGU-base metal project, the Parkinson Dam epithermal gold-silver (lead-zinc) project and central Gawler Craton gold-nickel-cobalt project in South Australia. A review of the operations of the Group during the year ended 30 June 2014 is set out in the Review of Operations on Page 5.

Financial Position

The net assets of the consolidated group have decreased by $929,554 from 30 June 2013 to $23,987,848 in 2014.

Significant Changes in State of Affairs

In the opinion of the directors, other than disclosed elsewhere in this report, there were no other significant changes in the state of affairs of the Company that occurred during the year.

After Balance Date Events

There were no material events occurring after the reporting date.

ASX Code: TAS

Page 15 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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DIRECTORS’ REPORT

Future Developments, Prospects and Business Strategies

The Company proposes to continue with its exploration program as detailed in the Review of Operations.

Environmental Issues

The Company is the subject of environmental regulation with respect to mining exploration and will comply fully with all requirements with respect to rehabilitation of exploration sites.

Information on Directors

Gregory H Solomon

Executive Chairman

Qualifications LLB Experience

Appointed chairman 1987. Board member since 1987. A solicitor with more than 30 years’ Australian and international experience in a wide range of areas including mining law, commercial negotiation (including numerous mining and exploration joint ventures) and corporate law. He is a partner in the Western Australian legal firm, Solomon Brothers and has previously held directorships of various public companies since 1984 including two mining/exploration companies. 31,165,475 Ordinary Shares

Interest in Shares and Options Directorships held in other listed entities

Conico Limited (ASX:CNJ) Eden Energy Limited (ASX:EDE)

Douglas H Solomon

Non-Executive

Qualifications BJuris LLB (Hons)

Experience

Interest in Shares and Options Directorships held in other listed entities

Board member since 3 April 2003. A Barrister and Solicitor with more than 20 years’ experience in the areas of mining, corporate, commercial and property law. He is a partner in the legal firm, Solomon Brothers. 30,659,960 Ordinary Shares Conico Limited (ASX:CNJ) Eden Energy Limited (ASX:EDE)

Guy T Le Page

Qualifications

Experience

Interest in Shares and Options Directorships held in other listed entities

Non-Executive

B.A., B.Sc. (Hons).,M.B.A., F.FIN., MAusIMM Bachelor of Arts, Bachelor of Science, Masters Degree in Business Administration, Bachelor of Applied Science (Hons), Graduate Diploma in Applied Finance and Investment

Board member since February 2001. Currently a corporate adviser specialising in resources. He is actively involved in a range of corporate initiatives from mergers and acquisitions, initial public offerings to valuations, consulting and corporate advisory roles. He previously spent 10 years’ as an exploration and mining geologist in Australia, Canada and the United States. His experience spans gold and base metal exploration and mining geology and he has acted as a consultant to private and public companies.

1,784,821 Ordinary shares

Eden Energy Limited (ASX:EDE) Conico Limited (ASX:CNJ) Red Sky Energy Limited (ASX:ROG) Palace Resources Limited (ASX:PXR) Soil Sub Technologies Ltd (ASX: SOI) AXG Mining Ltd (ASX: AXC)

ASX Code: TAS

Page 16 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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DIRECTORS’ REPORT

Remuneration Report (Audited)

This report details the nature and amount of remuneration for each director of Tasman Resources Ltd, and for the executives receiving the highest remuneration.

Remuneration Policy

The remuneration policy of Tasman Resources Ltd has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component and offering specific longterm incentives based on key performance areas affecting the economic entity’s financial results. The board of Tasman Resources Ltd believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best executives and directors to run and manage the economic entity, as well as create goal congruence between directors, executives and shareholders.

The Board’s policy for determining the nature and amount of remuneration for board members and senior executives of the group is that all executives receive a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits and options.

All directors and executives receive a superannuation guarantee contribution where required by the government, which is currently 9.5%, and do not receive any other retirement benefits. Some individuals, however, have chosen to sacrifice part of their salary to increase payments towards superannuation.

All remuneration paid to directors and executives is valued at the cost to the company and expensed. Any shares which may be issued to executives would be valued as the difference between the market price of those shares and the amount paid by the director or executive. Options are valued using the Black-Scholes methodology. The Group does not have a policy on directors hedging their shares.

The board policy is to remunerate non-executive directors at market rates for time, commitment and responsibilities. The remuneration committee determines payments to the non-executive directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General meeting. Fees for non-executive directors are not linked to the performance of the economic entity. To align directors’ interests with shareholder interests, directors are encouraged to hold shares in the company and are able to participate in the employee option plan.

Performance based Remuneration

No performance based remuneration was paid during the year.

Shares Issued on Exercise of Compensation Options

No options were exercised during the year.

Options issued as part of remuneration for the year ended 30 June 2014

No options were issued as part of remuneration during the year.

Details of Remuneration for Year Ended 30 June 2014

The remuneration for each director and each of the executive officers of the Group during the year was as follows:

Key Management Person Gregory H Solomon Douglas H Solomon Guy T Le Page Aaron P Gates Robert N Smith Michael J Glasson Richard J Beresford Roger W Marmaro

Key Management Personnel Remuneration - 2014 Short-term Benefits Post- employment benefits Termin- ation Share-based payments Total Perfor- mance Related Salary and Fees Cash profit share Other Super- annuatio n Other Other Equity Options $ $ $ $ $ $ $ $ $ % 322,500 - - 29,831 - - - - 352,331 - 72,000 - - 6,660 - - - - 78,660 - 72,000 - - 6,660 - - - - 78,660 - (i) - - - - - - - - - 214,695 - - 35,000 - - - - 249,695 - 214,695 - - 35,000 - - - - 249,695 - 36,000 - - 3,330 - - - - 39,330 - 301,955 - 23,669 14,664 - - - - 340,288 -

1,233,845 23,669 131,145 - - - - 1,388,659 -

ASX Code: TAS

Page 17 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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DIRECTORS’ REPORT

Key Management Personnel Remuneration - 2013

Key Management Person Gregory H Solomon Douglas H Solomon Guy T Le Page Aaron P Gates Robert N Smith Michael J Glasson Richard J Beresford Roger W Marmaro

Short-term Benefits Post- employment benefits Termin- ation Share-based payments Total Perfor- mance Related Salary and Fees Cash profit share Non- cash benefit Super- annuatio n Other Other Equity Options $ $ $ $ $ $ $ $ $ % 279,375 - - 25,144 - - - - 304,519 - 63,000 - - 5,670 - - - - 68,670 - 63,000 - - 5,670 - - - - 68,670 - (i) - - - - - - - - - 224,148 - - 24,997 - - - 28,500 277,645 - 224,148 - - 24,997 - - - 28,500 277,645 - 27,000 - - 2,430 - - - - 29,430 - 179,801 - 14,697 9,857 - - - 850 205,205 -

1,060,472 - 14,697 98,765 - - - 57,850 1,231,784 -

• (i) These management personnel are remunerated by Princebrook Pty Ltd (a company in which Greg Solomon and Douglas Solomon have an interest) under the Princebrook Management Services Contract. During the year, the Group paid $434,670 (2013: $383,609) to Princebrook for management services.

(ii) The appointment of Robert Smith and Michael Glasson may be terminated by giving not less than four weeks written notice.

Directors Meetings

During the financial year, 2 meetings of directors were held. Attendance by each director during the year was as follows:

	Directors’ Meetings	Directors’ Meetings
	Number eligible to attend	Number attended
Gregory H Solomon	2	2
Douglas H Solomon	2	2
Guy T Le Page	2	2

Due to the nature of the operations and the size of the board, all the directors were in close communication throughout the year and most matters were attended to by way of circulatory resolution rather than formal directors’ meetings.

Indemnifying Officers or Auditor

The company has paid premiums to insure the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company. The total premium paid was $28,200.

Proceedings on Behalf of Group

No person has applied for leave of Court to bring proceedings on behalf of the group or intervene in any proceedings to which the group is a party for the purpose of taking responsibility on behalf of the group for all or any part of those proceedings.

The group was not a party to any such proceedings during the year.

Options

Options granted to directors and executives of the Group

No options were issued as part of remuneration during the year.

ASX Code: TAS

Page 18 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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DIRECTORS’ REPORT

Unissued shares under options

Unissued shares under options	Unissued shares under options
At the date of this report, the unissued ordinary		shares of the Group under option are as		follows:
Company	Grant Date	Date of Expiry	Exercise Price	Number under Option
Eden Energy Ltd	21 November 2012	20 November 2015	$0.025	3,375,000
				3,375,000

No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of any other body corporate.

Non-audit Services

The Board of Directors is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The directors are satisfied that the services disclosed below did not compromise the external auditor’s independence for the following reasons:

• all non-audit services are reviewed and approved prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and

• the nature of the services provided do not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

No fees for non-audit services were paid/payable to the external auditors during the year ended 30 June 2014.

Auditor’s Independence Declaration

The auditor’s independence declaration for the year ended 30 June 2014 has been received and can be found on page 20.

Signed in accordance with a resolution of the Board of Directors.

---

Gregory H Solomon Dated this 25[th] day of September 2014

ASX Code: TAS

Page 19 of 53

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Lead auditor’s independence declaration under section 307C of the Corporations Act 2001

To the directors of Tasman Resources Ltd

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2014 there have been:

• (i) no contraventions of the auditor’s independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the audit.

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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director

Perth, 25 September 2014

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 30 JUNE 2014

Note Revenue 2 Other income 3 Audit and accounting Advertising and marketing expense Depreciation and amortisation expense Employee benefits expense 4 Gain on acquisition of subsidiary Gain on remeasure of fair value of previously held equity interest Impairment of exploration and evaluation 15 Impairment of intellectual property 16 Impairment of trade and other receivables Legal and other consultants Management fees Other expenses Rent expense Raw materials and consumables used Settlement of legal actions Travel and accommodation expense Profit/(Loss) before income tax 5 Income tax (expense) / benefit 6 Profit/(Loss) for the year Other Comprehensive Income / (Loss), net of income tax Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations Other comprehensive income, net of income tax Total Comprehensive Income / (Loss) Profit/(Loss) attributable to: Owners of the parent Non-controlling interests Total comprehensive income / (loss) attributable to: Owners of the parent Non-controlling interests Basic/Diluted earnings per share (cents per share) 9		Consolidated Group 2014 $ 2013 $ 1,823,480 946,811 284,183 9,311,332 (114,418) (82,754) (142,790) (6,487) (98,743) (107,074) (2,100,227) (1,447,596) - 136,724 - 173,315 (30,423) (5,120) (547) (6,603) (2,195) (34,023) (71,517) (69,328) (434,670) (383,609) (415,574) (315,370) (90,762) (60,739) (689,470) (317,213) 268,028 - (190,028) (114,652)
		(2,005,673) 7,617,614 - -
		(2,005,673) 7,617,614 193,477 238,600
		193,477 238,600
		(1,812,196) 7,856,214
		(1,275,694) 8,186,256 (729,979) (568,642)
		(2,005,673) 7,617,614
		(1,185,750) 8,300,605 (626,446) (444,391)
		(1,812,196) 7,856,214
		(0.5631) 3.625

The accompanying notes form part of these financial statements.

ASX Code: TAS

Page 21 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

	Note	Consolidated	Group
		2014	2013
		$	$
ASSETS
CURRENT ASSETS
Cash and cash equivalents	10	1,685,238	4,054,733
Inventories	11	428,448	453,510
Other assets		25,929	32,807
Trade and other receivables	12	411,016	1,087,012
Financial assets	13	-	100,000
Assets held for sale	14	3,854,309	3,027,663
TOTAL CURRENT ASSETS		6,404,940	8,755,725
NON-CURRENT ASSETS
Exploration and Evaluation expenditure	15	17,080,914	15,728,482
Financial assets	13	100,000	-
Intangibles	16	1,350,592	1,207,707
Property, plant and equipment	17	251,122	372,101
Other receivables	12	-	50,000
TOTAL NON-CURRENT ASSETS		18,782,628	17,358,290
TOTAL ASSETS		25,187,568	26,114,015
CURRENT LIABILITIES
Trade and other payables	20	973,021	383,158
Provisions	21	170,626	757,442
TOTAL CURRENT LIABILITIES		1,143,647	1,140,600
NON-CURRENT LIABILITIES
Provisions	21	56,073	56,013
TOTAL NON-CURRENT LIABILITIES		56,073	56,013
TOTAL LIABILITIES		1,199,720	1,196,613
NET ASSETS		23,987,848	24,917,402
EQUITY
Issued capital	22	23,505,526	23,505,526
Reserves	23	1,236,481	1,092,459
Accumulated losses		(3,660,733)	(2,385,039)
Parent’s interest		21,081,274	22,212,946
Non-controlling interest		2,906,574	2,704,456
TOTAL EQUITY		23,987,848	24,917,402

The accompanying notes form part of these financial statements.

ASX Code: TAS

Page 22 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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OLIDATED STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2014

			Attributable to owners of the Company	Attributable to owners of the Company	Attributable to owners of the Company	Attributable to owners of the Company
	Issued	Option	Foreign	Other	Accumulated	Non-	Total
	Capital	Reserve	Currency	Equity	Losses	controlling
			Trans-			Interests
			lation
			Reserve
	$	$			$		$
Balance at 30 June 2012	23,433,864	915,372	-	-	(10,571,295)	-	13,777,941
Shares issued, net of issue
costs	71,662	-	-	-	-	-	71,662
Options issued	-	62,738	-	-	-	-	62,738
Minority equity interest upon
acquisition of subsidiary	-	-	-	-	-	3,148,847	3,148,847
Profit / (loss) for the year	-	-	-	-	8,186,256	(568,642)	7,617,614
Other comprehensive income	-	-	114,349	-	-	124,251	238,600
Total comprehensive income	-	-	114,349	-	8,186,256	(444,391)	7,856,214
Balance at 30 June 2013	23,505,526	978,110	114,349	-	(2,385,039)	2,704,456	24,917,402
Issue of share in subsidiary	-	-	-	-	-	882,642	882,642
Change in ownership of
subsidiary	-	-	-	54,078	-	(54,078)	-
Loss for the year	-	-	-	-	(1,275,694)	(729,979)	(2,005,673)
Other comprehensive income	-	-	89,944	-	-	103,533	193,477
Total comprehensive income	-	-	89,944	-	(1,275,694)	(626,446)	(1,812,196)
Balance at 30 June 2014	23,505,526	978,110	204,293	54,078	(3,660,733)	2,906,574	23,987,848

The accompanying notes form part of these financial statements.

ASX Code: TAS

Page 23 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR YEAR ENDED 30 JUNE 2014

Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Other receipts Interest received Net cash provided by / (used in) operating activities 25a CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure Payments for research and development of intangible assets Net cash acquired on acquisition of subsidiary Purchase of convertible note Purchase of property, plant and equipment Proceeds on sale of financial assets Proceeds on sale of subsidiary 12a Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares, net of issue costs Payment of monies to settle funding agreement 21a Net cash provided by financing activities Net increase (decrease) in cash held Net increase(decrease) due to foreign exchange movements Cash at beginning of financial year Cash at end of financial year 10	Consolidated Group 2014 $ 2013 $ 1,589,986 10,293,317 (3,925,190) (3,785,795) 164,654 507,556 168,206 183,065
	(2,002,344) 7,198,143
	(1,505,310) (3,872,602) (214,333) (129,589) - 255,182 - (100,000) (10,890) (146,906) 50,000 - 800,000 -
	(880,533) (3,993,915)
	878,942 71,662 (347,519) -
	531,423 71,662
	(2,351,454) 3,275,890 (18,041) 32,818 4,054,733 746,025
	1,685,238 4,054,733

The accompanying notes form part of these financial statements.

ASX Code: TAS

Page 24 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 . The financial report of Tasman Resources Limited and controlled entities complies with all International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board in their entirety.

The financial report covers the consolidated group of Tasman Resources Ltd and controlled entities as at and for the year ended 30 June 2014. Tasman Resources Ltd is a listed public company, incorporated and domiciled in Australia. The Group is a for-profit entity and primarily is involved in mineral exploration in South Australia and clean energy technology through its subsidiary Eden Energy Ltd.

The financial report was authorised for issue on 25 September 2014 by the board of directors.

The following is a summary of the material accounting policies adopted by the group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation

The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. These consolidated financial statements are presented in Australian dollars, which is the Tasman Resources Ltd’s and Eden Energy Ltd’s functional currency. The functional currencies of Eden Energy Ltd’s subsidiaries are USD, GBP and INR.

Going Concern

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

The Group has reported a loss of $2,005,673 for the year (2013: profit of $7,617,614) and a cash outflow from operating activities of $2,002,344 (2013: cash inflow of $7,198,143).

The directors are confident that the Group, subject to being able to raise further capital, will be able to continue its operations as a going concern. Without such capital, the net loss for the period and the cash outflow from operating activities indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern. The directors also carefully manage discretionary expenditure in line with the Group’s cash flow.

The continuing applicability of the going concern basis of accounting is dependent upon the Group’s ability to source additional finance. Unless additional finance is received the Group may need to realise assets and settle liabilities other than in the normal course of business and at amounts, which could differ from the amounts at which they are stated in these financial statements.

Accounting Policies

a. Principles of Consolidation

A controlled entity is any entity Tasman Resources Ltd is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. A list of controlled entities is contained in Note 18 to the financial statements. All controlled entities have a June financial year-end.

All inter-company balances and transactions between entities in the consolidated group, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent.

Non-controlling interests in the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.

b. Income Tax

The charge for current income tax expense is based on the profit for the year adjusted for any nonassessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

ASX Code: TAS

Page 25 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

b. Income Tax continued

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the group will derive sufficient future assessable income to enable the benefit to be realised.

Tasman Resources Ltd and Noble Energy Pty Ltd, its wholly-owned Australian subsidiary, have formed an income tax consolidated group under the tax consolidation regime. The Group notified the Australian Tax Office that it had formed an income tax consolidated group to apply from 1 July 2005. The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

c. Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Costs are assigned on the basis of first-in, first-out.

d. Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

The depreciation rates used for each class of depreciable assets are:

Plant and equipment 15–50%

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in profit or loss.

e. Exploration and Evaluation Expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward where the right to tenure is current and to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

f. Assets held for sale

Non-current assets are classified as held-for-sale if it is highly probable that they will be recovered through sale rather than continuing use.

Immediately before classification as held-for-sale, the assets are remeasured in accordance with the Group’s other accounting policies. Thereafter generally the assets are measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held-forsale and subsequent gains or losses on remeasurement are recognised in profit or loss.

g. Intangibles

Research and development

Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised only when technical feasibility studies identify that the project will deliver future economic benefits and these benefits can be measured reliably.

Development costs have a finite life and are amortised on a systematic basis matched to the future economic benefits over the useful life of the project.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

• g. Intangibles continued

Intellectual Property

Intellectual property, which includes trademarks and engineering knowledge, is included in the financial statements at cost, being their fair value on acquisition.

Intellectual property and trademarks are only amortised or written down where the useful lives are limited or impaired by specific circumstances, in such cases amortisation is charged on a straight line basis over their useful lives and write downs are charged fully when incurred. The directors have assessed the useful life of the intellectual property and have determined that it has a finite useful life. The intellectual property will be amortised on a systematic basis matched to the future economic benefits over the useful life of the project. The directors have assessed the useful life of the Optiblend[TM] technology as being 10 years.

• h. Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment

At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the income statement.

i. Foreign Currency Transactions and Balances

Functional and presentation currency

The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional and presentation currency.

Transaction and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the income statement, except where deferred in equity as a qualifying cash flow or net investment hedge.

Group companies

The financial results and position of foreign operations whose functional currency is different from the group’s presentation currency are translated as follows:

• assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;

• income and expenses are translated at average exchange rates for the period; and

• retained earnings are translated at the exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the group’s foreign currency translation reserve in the balance sheet. These differences are recognised in the income statement in the period in which the operation is disposed of. Intercompany loans are treated as investments for foreign currency translation purposes.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

• j. Impairment of Assets

At each reporting date, the Group reviews the carrying values of its non-financial tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

• k. Investments in Associates

• Investments in associate companies are recognised in the financial statements by applying the equity method of accounting. The equity method of accounting recognises the group’s share of post-acquisition reserves of its associates.

• l. Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

Equity-settled compensation

The Group operates a number of share-based compensation plans. These include both a share option arrangement and an employee share scheme. The bonus element over the exercise price of the employee services rendered in exchange for the grant of shares and options is recognised as an expense in the income statement. The total amount to be expensed over the vesting period is determined by reference to the fair value of the shares of the options granted.

• m. Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

• n. Cash and Cash Equivalents

• Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments and bank overdrafts.

• o. Revenue

Revenue from the sale of goods is recognised upon the delivery of goods to customers. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

• p. Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

q. Interest in joint operations The consolidated financial statements include the assets that the Group controls and the liabilities that it incurs in the course of pursuing the joint operation and the expenses that the Group incurs and its share of the income that it earns from the joint operation.

• r. New accounting standards and interpretations

AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12 Disclosure of Interests in Other Entities (2011), AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements and AASB 13 Fair Value Measurement (2011).

These standards were adopted on 1 July 2013 and have been applied in preparing these consolidated financial statements. The adoption of these standards had no impact on the Group’s financial assets and financial liabilities.

s. Segment reporting

Segment results that are reported to the Group’s board of directors (the chief operating decision maker) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

• t. Ordinary shares

• Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.

• u. New accounting standards and interpretations not yet adopted

• A number of new standards and amendments to standards are effective for annual periods beginning after 1 July 2013, and have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt these standards early.

• AASB 9 Financial Instruments, AASB 1031 Materiality, and AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments.

• v. Key estimates

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and internally.

Key Estimates – Exploration and evaluation

The Group’s policy for exploration and evaluation is discussed in Note 1(e). The application of this policy requires management to make certain assumptions as to future events and circumstances. Any such estimates and assumptions may change as new information becomes available. At the date of this report the Group has sufficient reason to believe:

• rights to explore in specific areas, once expired, will be renewed;

• substantive expenditure on exploration and evaluation in specific areas has been budgeted;

• exploration in specific areas is ongoing and the Group has not decided to discontinue; and

• no specific sufficient data exists that indicates that the carrying amount of the exploration and evaluation asset is unlikely to be recovered.

Key Estimates — Impairment

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

• Value-in-use is calculated based on the present value of cash flow projections.

• Costs have been based on historical amounts adjusted for CPI increase.

• A 30% discount rate was utilised to recognise inherent risk in the forecasts.

There is a significant risk of actual outcomes being different from those forecasted due to changes in economic or market conditions and events.

Key Estimates — Share-based payment transactions

The consolidated entity measures the cost of equity settled transactions with suppliers by reference to the fair value of the equity instruments as at the date at which they are granted. The fair value is determined using a Black-Scholes model. Refer to Note 30 for the inputs to the Black-Scholes model.

NOTE 2: REVENUE a. Operating activities — sale of goods or services Total Revenue NOTE 3: OTHER INCOME — interest received — payment from RTX — R&D claim — other — wages recovery from associated entity	2014 $ 2013 $ 1,823,480 946,811
	1,823,480 946,811
	167,995 183,065 - 9,000,000 - 30,762 94,423 75,000 21,765 22,505
	284,183 9,311,332

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 4: EMPLOYEE BENEFITS Short-term employee benefits Post-employment benefits Share based payments Allocated to exploration and evaluation Total NOTE 5: PROFIT / (LOSS) FOR THE YEAR a. Expenses Depreciation and amortisation expense b. Significant Revenue and Expenses The following significant revenue and expense items are relevant in explaining the financial performance: Gain on acquisition of subsidiary Gain on remeasure of fair value of previously held equity interest NOTE 6: INCOME TAX EXPENSE a. The prima facie tax on profit/(loss) from ordinary activities before income tax is reconciled to the income tax as follows: Prima facie tax payable on profit/(loss) from ordinary activities at 30% (2013: 30%) Add tax effect of: — Non-deductible expenses — Current year tax loss not recognised Less tax effect of: — Current year temporary differences not recognised — Research and development benefit Income tax expense / (benefit) reported in the Income Statement b. Components of deferred tax Unrecognised deferred tax asset – losses Capital raising costs Provisions and accruals Exploration and evaluation Intangibles Total unrecognised deferred tax assets	2014 $ 2013 $ (2,182,104) (1,674,526) (170,195) (122,626) - (62,738) 252,072 412,294
	(2,100,227) (1,447,596)
	98,743 107,074 - 136,724 - 173,315 (601,702) 2,285,284
	(601,702) 2,285,284 1,690 22,338 1,360,153 (594,086) (760,141) (1,713,536) - -
	- -
	19,844,408 18,484,255 53,965 98,762 86,872 105,626 (6,280,567) (5,626,843) (348,928) (306,062)
	13,355,750 12,755,738

Deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will be available against which deductible temporary differences and tax losses can be utilised. The benefit of the tax losses will only be obtained if the Group complies with conditions imposed by the tax legislation.

NOTE 7: AUDITORS’ REMUNERATION

NOTE 7: AUDITORS’ REMUNERATION
Remuneration of the auditor of the Group for:
— auditing or reviewing the financial report	66,180	60,000
Remuneration of other auditors
— auditing or reviewing the financial report	33,292	31,590

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION

a. Names and positions held of key management personnel in office at any time during the financial year are:

Key Management Position Person Gregory H Solomon Executive Chairman Douglas H Solomon Non-Executive Director Guy T Le Page Non-Executive Director Richard Beresford Non-Executive Director – Eden Energy Aaron P Gates Company Secretary / CFO Robert N Smith Senior Geologist Michael J Glasson Senior Geologist Roger Marmaro President Hythane

b. Options and Rights Holdings	b. Options and Rights Holdings	b. Options and Rights Holdings
Number of Options in the Company Held by				Key Management Personnel
	Balance	Granted	Options	Net Change	Balance	Total	Total	Total
	1.7.2013	as Comp-	Exercised	Other*	30.6.2014	Vested	Exer-	Unexer-
		ensation				30.6.2014	cisable	cisable
							30.6.2014	30.6.2014
Aaron Gates	-	-	-	-	-	-	-	-
Douglas Solomon	-	-	-	-	-	-	-	-
Gregory Solomon	-	-	-	-	-	-	-	-
Guy Le Page	-	-	-	-	-	-	-	-
Michael Glasson	1,000,000	-	-	(1,000,000)	-	-	-	-
Richard Beresford	-	-	-	-	-	-	-	-
Robert Smith	1,000,000	-	-	(1,000,000)	-	-	-	-
Roger Marmaro	-	-	-	-	-	-	-	-
Total	2,000,000	-	-	(2,000,000)	-	-	-	-

*The Net Change Other reflected above includes those options that have been forfeited by holders, options that have lapsed, as well as options issued during the year under review.

Aaron Gates Douglas Solomon Gregory Solomon Guy Le Page Michael Glasson Richard Beresford Robert Smith Roger Marmaro Total

Balance 1.7.2012 Granted as Comp- ensation Options Exercised Net Change Other Balance 30.6.2013 Total Vested 30.6.2013 Total Exer- cisable 30.6.2013 Total Unexer- cisable 30.6.2013 500,000 - (500,000) - - - - - 1,000,000 - - (1,000,000) - - - - 1,000,000 - - (1,000,000) - - - - 1,000,000 - -* (1,000,000) - - - - 200,803 1,000,000 - (200,803) 1,000,000 1,000,000 1,000,000 - - - - - - - - - 200,803 1,000,000 - (200,803) 1,000,000 1,000,000 1,000,000 - - - - - - - - -

3,901,606 2,000,000 (500,000) (3,401,606) 2,000,000 2,000,000 2,000,000 -

*The Net Change Other reflected above includes those options that have been forfeited by holders, options that have lapsed, as well as options issued during the year under review.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED	NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED	NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED	NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED	NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED	NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED
b. Options and Rights Holdings (Continued)
Number of Options in Eden Energy Ltd Held by Key Management Personnel
	Balance	Granted	Options	Net Change	Balance	Total	Total	Total
	1.7.13	as Comp-	Exercised	Other*	30.6.2014	Vested	Exer-	Unexer-
		ensation				30.6.2014	cisable	cisable
							30.6.2014	30.6.2014
Aaron Gates	500	-	-	(500)	-	-	-	-
Douglas Solomon	1,388,398	-	-	(1,388,398)	-	-	-	-
Gregory Solomon	1,587,255	-	-	(1,587,255)	-	-	-	-
Guy Le Page	-	-	-	-	-	-	-	-
Michael Glasson	2,500	-	-	(2,500)	-	-	-	-
Richard Beresford	200,000	-	-	(200,000)	-	-	-	-
Robert Smith	-	-	-	-	-	-	-	-
Roger Marmaro	550,000	-	-	(50,000)	500,000	500,000	500,000	-
Total	3,728,653	-	-	(3,228,653)	500,000	500,000	500,000	-

*The Net Change Other reflected above includes those options that have been forfeited by holders, options that have lapsed, as well as options issued during the year under review.

Aaron Gates Douglas Solomon Gregory Solomon Guy Le Page Michael Glasson Richard Beresford Robert Smith Roger Marmaro Total

Acquisition of subsidiary Granted as Comp- ensation Options Exercised Net Change Other Balance 30.6.2013 Total Vested 30.6.2013 Total Exer- cisable 30.6.2013 Total Unexer- cisable 30.6.2013* 500,500 - - (500,000) 500 500 500 - 2,388,398 - - (1,000,000) 1,388,398 1,388,398 1,388,398 - 2,587,255 - - (1,000,000) 1,587,255 1,587,255 1,587,255 - 1,000,000 - - (1,000,000) - - - - 2,500 - - - 2,500 2,500 2,500 - 1,200,000 - - (1,000,000) 200,000 200,000 200,000 - - - - - - - - - 50,000 500,000 - - 550,000 550,000 550,000 -

7,728,653 500,000 - (4,500,000) 3,728,653 3,728,653 3,728,653 -

*The Net Change Other reflected above includes those options that have been forfeited by holders, options that have lapsed, as well as options issued during the year under review.

c. Shareholdings

Number of Shares held in the Company by Key Management Personnel

c. Shareholdings Number of Shares held in	the Company by Key Management Personnel
Aaron Gates Douglas Solomon Gregory Solomon Guy Le Page Michael Glasson Richard Beresford Robert Smith Roger Marmaro Total	Balance 1.7.2013 Received as Compensation Options Exercised Net Change Other Balance 30.6.2014* 646,000 - - (346,000) 300,000 30,659,960 - - - 30,659,960 31,165,475 - - - 31,165,475 1,784,821 - - - 1,784,821 307,535 - - - 307,535 - - - - - - - - - - - - - - -
	64,563,791 - - (346,000) 64,217,791

• Net Change Other refers to shares purchased or sold during the financial year.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED c. Shareholdings continued Number of Shares held in the Company by Key Management Personnel continued

c. Shareholdings continued Number of Shares held in	the Company by Key Management Personnel continued
Aaron Gates Douglas Solomon Gregory Solomon Guy Le Page Michael Glasson Richard Beresford Robert Smith Roger Marmaro Total	Balance 1.7.2012 Received as Compensation Options Exercised Net Change Other Balance 30.6.2013* 190,000 - 500,000 (44,000) 646,000 30,659,960 - - - 30,659,960 31,165,475 - - - 31,165,475 1,784,821 - - - 1,784,821 1,007,535 - - (700,000) 307,535 - - - - - 699,635 - - (699,635) - - - - - -
	65,507,426 500,000 (1,443,635) 64,563,791

• Net Change Other refers to shares purchased or sold during the financial year.

Number of Shares held in Eden Energy Ltd by Key Management Personnel

Aaron Gates Douglas Solomon Gregory Solomon Guy Le Page Michael Glasson Richard Beresford Robert Smith Roger Marmaro Total	Balance 1.7.2013 Received as Compensation Options Exercised Net Change Other Balance 30.6.2014* 25,000 - - - 25,000 9,479,400 - - 1,579,900 11,059,300 11,402,830 - - 1,900,473 13,303,303 - - - - - 25,000 - - 102,500 127,500 2,400,000 - - 400,000 2,800,000 - - - - - 2,497,490 - - (11,517) 2,485,973
	25,829,720 - - 3,971,356 29,801,076

• Net Change Other refers to shares purchased or sold during the financial year.

Aaron Gates Douglas Solomon Gregory Solomon Guy Le Page Michael Glasson Richard Beresford Robert Smith Roger Marmaro Total	Acquisition of Subsidiary Received as Compensation Options Exercised Net Change Other Balance 30.6.2013* 25,000 - - - 25,000 4,739,700 - - 4,739,700 9,479,400 5,701,415 - - 5,701,415 11,402,830 - - - - - 25,000 - - - 25,000 1,200,000 - - 1,200,000 2,400,000 - - - - - 1,841,824 - - 655,666 2,497,490
	13,532,939 - - 12,296,781 25,829,720

• Net Change Other refers to shares purchased or sold during the financial year.

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 8: KEY MANAGEMENT PERSONNEL COMPENSATION CONTINUED

d. Remuneration

Refer to disclosures contained in the Remuneration Report section of the Directors’ Report. The totals of remuneration paid to key management personnel of the Group during the year are as follows:

Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits Share based payments Total	2014 $ 2013 $ 1,257,514 1,075,169 131,145 98,765 - - - - - 57,850
	1,388,659 1,231,784

NOTE 9: EARNINGS PER SHARE

NOTE 9: EARNINGS PER SHARE
a. Reconciliation of earnings to profit or loss Profit/(loss) Earnings used to calculate basic EPS b. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS	(1,275,694) 8,186,256
	(1,275,694) 8,186,256 No. No. 226,561,469 226,448,186

The effect of share options on issue is not potentially dilutive at 30 June 2014 or 30 June 2013.

NOTE 10: CASH AND CASH EQUIVALENTS

	2014	2013
	$	$
Cash at bank and in hand	1,685,238	4,054,733
	1,685,238	4,054,733
Reconciliation of cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the
statement of financial position as follows:
Cash and cash equivalents	1,685,238	4,054,733
	1,685,238	4,054,733
NOTE 11: INVENTORIES
At cost	428,448	453,510
	428,448	453,510

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE	NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE	NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE	2014
	Note	2014		2013
		$		$
NOTE 12: TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables		485,640		460,337
Less provision for impairment		(74,624)		(76,538)
Less provision for returns			-	(31,441)
Other unsecured receivables	12(a)		-	1,734,654
Less provision for impairment	12(a)		-	(1,000,000)
		411,016		1,087,012
NON-CURRENT
Other unsecured receivables			-	50,000
			-	50,000

• (a) $1,000,000 relates to an Aptus 100 reformer owed to Eden Energy from the sale of HyRadix Inc in 2009. During the year $800,000 was received as settlement.

NOTE 13: FINANCIAL ASSETS

Financial assets relates to 100,000 convertible notes in Conico Ltd (a company in which Tasman has a 18.88% interest) pursuant to a convertible note deed made 30 April 2013 between the Company and Conico Ltd, each having a face value of $1.00 and convertible into Shares. The Convertible Notes bear interest at the rate of nine per cent (9%) per annum on the Subscription Sum outstanding from time to time, which interest is payable in cash monthly in arrears. The conversion price is the price that is 85% of the volume weighted average market price of the Company’s Shares on ASX calculated over the last 5 days on which sales were recorded on ASX before the date of the Conversion Notice.

NOTE 14: ASSETS HELD FOR SALE

NOTE 14: ASSETS HELD FOR SALE
Exploration and evaluation	3,854,309 3,027,663
	3,854,309 3,027,663

At 30 June 2014 Eden had entered a conditional heads of terms agreement to sell all of its shares in its subsidiary Adamo Energy (UK) Ltd, the vehicle Eden used for its UK Gas project. Adamo Energy (UK) Ltd recorded a loss of $37,436 (2013: $14,747) due to administrational costs.

NOTE 15: EXPLORATION AND EVALUATION EXPENDITURE

NOTE 15: EXPLORATION AND EVALUATION EXPENDITURE
Balance at the beginning of the financial year Expenditure incurred during the year Acquired through acquisition of subsidiary Transfer to assets held for sale Less provision for impairment Balance at the end of the financial year	15,728,482 12,221,685 1,354,182 3,789,259 - 2,750,321 - (3,027,663) (1,750) (5,120)
	17,080,914 15,728,482

Recoverability of the carrying amount of exploration assets is dependent on the successful development and commercial exploitation or sale of respective mining areas.

The company’s exploration tenements include areas subject to native title claims. As a result, mining and exploration activities may be subject to exploration and mining restrictions or compensation payments.

Capitalised costs included in cash flows from investing activities in the cash flow statement 1,505,310 3,872,602

ASX Code: TAS

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 16: INTANGIBLE ASSETS

Intellectual property Accumulated amortisation Accumulated impaired losses Net carrying value Balance at the beginning of the year Additions Acquired through acquisition of subsidiary Amortisation expense Impairment expense Carrying amount at the end of the year	2014 $ 2013 $ 10,806,799 10,627,456 (57,610) (21,698) (9,398,597) (9,398,051)
	1,350,592 1,207,707
	1,207,707 - 179,344 144,915 - 1,091,093 (35,912) (21,698) (547) (6,603)
	1,350,592 1,207,707

Additions 179,344 144,915 Acquired through acquisition of subsidiary - 1,091,093 Amortisation expense (35,912) (21,698) Impairment expense (547) (6,603) Carrying amount at the end of the year 1,350,592 1,207,707	Additions 179,344 144,915 Acquired through acquisition of subsidiary - 1,091,093 Amortisation expense (35,912) (21,698) Impairment expense (547) (6,603) Carrying amount at the end of the year 1,350,592 1,207,707	Additions 179,344 144,915 Acquired through acquisition of subsidiary - 1,091,093 Amortisation expense (35,912) (21,698) Impairment expense (547) (6,603) Carrying amount at the end of the year 1,350,592 1,207,707	Additions 179,344 144,915 Acquired through acquisition of subsidiary - 1,091,093 Amortisation expense (35,912) (21,698) Impairment expense (547) (6,603) Carrying amount at the end of the year 1,350,592 1,207,707
Intellectual property relates mainly to pyrolysis technology developed by Eden with the University of Queensland
(UQ) and which Eden now owns 100%.
Capitalised costs included in cash flows from investing activities in the
cash flow statement		179,333	129,589
NOTE 17: PROPERTY, PLANT AND EQUIPMENT
Plant and equipment:
At cost		753,761	862,542
Accumulated depreciation		(502,639)	(490,441)
Total plant and equipment		251,122	372,101
Total Property, Plant and Equipment		251,122	372,101
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and
the end of the current financial year;
Plant & Equipment
Balance at the beginning of year		372,101	47,079
Additions		10,890	146,906
Acquired through acquisition of subsidiary		-	238,932
Net foreign exchange differences on translation		(5,133)	25,043
Disposals		(63,905)	(483)
Depreciation expense		(62,831)	(85,376)
Carrying amount at the end of year		251,122	372,101
NOTE 18: CONTROLLED ENTITIES
	Country of	Percentage Owned (%)*
Subsidiaries of Tasman Resources Ltd:	Incorporation	2014	2013
Noble Energy Pty Ltd	Australia	100	100
Eden Energy Ltd	Australia	46.0	47.9
Eden Energy Holdings Pty Ltd	Australia	46.0	47.9
Adamo Energy Ltd	Australia	46.0	47.9
Adamo Energy (UK) Ltd	UK	46.0	47.9
Hythane Company LLC	USA	46.0	47.9
Eden Energy India Pvt Limited	India	46.0	47.9
Eden Innovations Limited	Ireland	46.0	47.9

* Percentage of voting power is in proportion to ownership

ASX Code: TAS

Page 36 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 19: ASSOCIATED COMPANIES

Interests are held in the following associated companies Name Principal Activities Country of Incorporation Shares Ownership 2014 % Interests are held in the following associated companies Listed: Conico Ltd Mineral exploration Australia Ord 18.88 - Formerly Fission Energy Ltd a. Movements During the Year in Equity Accounted Investment in Associate Balance at beginning of the financial year Add: Transfer from Available for sale financial assets Less: Share of loss of associate Transfer to investment in subsidiary Balance at end of the financial year b. Summarised Presentation of Aggregate Assets, Liabilities and Performance of Associate Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Revenues Profit/(Loss) after income tax of associates c. The reporting date of Conico Ltd is 30 June. d. Market value of listed investment in associate — Conico Ltd - shares NOTE 20: TRADE AND OTHER PAYABLES CURRENT - UNSECURED Trade payables Sundry payables and accrued expenses	Interest Carry amount of investment 2013 % 2014 $ 2013 $ 18.88 - - 2014 $ 2013 $ - 490,469 - - - - - (490,469)
	- -
	44,488 106,404 14,712,516 14,677,546
	14,757,004 14,783,950
	778,390 378,538 250,000 250,000
	1,028,390 628,538
	13,728,614 14,155,412
	- -
	(426,798) (688,464)
	150,000 300,000
	150,000 300,000
	747,136 155,604 225,885 227,554
	973,021 383,158

ASX Code: TAS

Page 37 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 21: PROVISIONS

NOTE 21: PROVISIONS
	Note	2014	2013
		$	$
CURRENT
Employee entitlements		149,438	205,672
Warranties		21,188	24,224
Other	21a	-	527,546
		170,626	757,442

21a At 30 June 2013, this mainly relates to a provision for the settlement of a disputed debt between Eden Energy Ltd and La Jolla Cove Investors Inc (“La Jolla”). During the year this was settled with Eden making a payment of $347,519 (US$325,000) to La Jolla.

NON-CURRENT	NON-CURRENT
Employee entitlements				56,073	56,013
				56,073	56,013
NOTE	22: ISSUED CAPITAL
226,561,469 (2013: 226,561,469) fully paid ordinary shares				23,505,526	23,505,526
				23,505,526	23,505,526
		2014	2013	2014	2013
		No.	No.	$	$
a.	Ordinary shares
	At the beginning of reporting period	226,561,469	225,945,395	23,505,526	23,433,864
	Options exercised at various dates	-	616,074	-	71,662
	At reporting date	226,561,469	226,561,469	23,505,526	23,505,526

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

b.

Options

For information relating to the Group’s employee option plan and options issued to key management personnel during the financial period, refer to Note 30 Share-based Payments.

c.

Capital Management

Management controls the working capital of the Group in order to maximise the return to shareholders and ensure that the Group can fund its operations and continue as a going concern. Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in responses to changes in these risks and in the market. These responses include the management of expenditure and debt levels, distributions to shareholders and share and option issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.

NOTE 23: RESERVES

a. Option Reserve

The option reserve records items recognised as expenses on valuation of employee share options.

• b. Financial Asset Reserve

The financial asset reserve records revaluations of non-current assets.

c. Foreign Currency Translation Reserve

The foreign currency translation reserve records exchange differences arising on the translation of foreign controlled subsidiaries.

ASX Code: TAS

Page 38 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 24: SEGMENT REPORTING

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance.

Activities of the Group are managed on a Group structure basis and operating segments are therefore determined on the same basis. In this regard the following list of reportable segments has been identified.

• Tasman Resources Ltd – Mineral exploration in South Australia

• Eden Energy Ltd – Hythane[TM] and Optiblend[TM] sales, service and manufacturing in India and the USA; development of Eden’s pyrolysis technology; and coal seam methane and shale gas exploration and development in the UK.

30 June 2014 Total external revenue Inter-segment revenue Total segment revenue Segment profit / (loss) result Unallocated expenses Result from operating activities Interest revenue Interest expense Income tax (expense)/benefit Loss after income tax Segment Assets Unallocated assets Total Assets Segment Liabilities Unallocated Liabilities Total Liabilities Capital expenditure Depreciation and amortisation 30 June 2013 Total external revenue Inter-segment revenue Total segment revenue Segment profit / (loss) result Unallocated expenses Result from operating activities Interest revenue Interest expense Income tax expense Loss after income tax Segment Assets Unallocated assets Total Assets Segment Liabilities Unallocated Liabilities Total Liabilities Capital expenditure Depreciation and amortisation	Tasman Resources Ltd Eden Energy Ltd Eliminations Consolidated Entity $ $ $ $ - 1,823,480 - 1,823,480 - - - -	Tasman Resources Ltd Eden Energy Ltd Eliminations Consolidated Entity $ $ $ $ - 1,823,480 - 1,823,480 - - - -
	- 1,823,480 - 1,823,480
	(792,750) (1,406,538) 25,839 (2,173,449)
	- (2,173,449) 167,995 (219) - (2,005,673) 21,874,000 6,374,610 (3,061,042) 25,187,568 - 25,187,568 208,850 990,870 - 1,199,720 - 1,199,720 1,354,182 190,234 - 1,544,416 16,505 82,238 - 98,743 - 946,811 - 946,811 - - - -	-
		(2,173,449) 167,995 (219) -
		(2,005,673)
		25,187,568
		- 1,199,720 -
		1,199,720
		- 1,544,416 - 98,743 - 946,811 - -
	- 946,811	- 946,811
	8,225,746 (791,197)	- 7,434,549
	- 7,434,549 183,065 - - 7,617,614 22,604,250 6,497,616 (2,987,851) 26,114,015 - 26,114,015 298,102 1,298,511 (400,000) 1,196,613 - 1,196,613 3,655,566 425,514 - 4,081,080 29,099 77,975 - 107,074	-
		7,434,549 183,065 - -
		7,617,614
		1,196,613
		- 4,081,080 - 107,074

ASX Code: TAS

Page 39 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 25: CASH FLOW INFORMATION

a. Reconciliation of Cash Flow from Operations with Loss after Income Tax Profit/(Loss) after income tax Non-cash flows in profit and loss Depreciation Gain on acquisition of subsidiary Gain on remeasure of fair value of previously held equity interest Impairment of exploration and evaluation Impairment of trade and other receivables and intangibles Net loss on disposal of plant and equipment Settlement of legal actions Share based payments Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries (Increase)/decrease in trade and term receivables (Increase)/decrease in inventories Increase/(decrease) in trade payables and accruals Increase/(decrease) in provisions Cash flow used in operations NOTE 26: PARENT COMPANY INFORMATION a. Parent Entity Assets Current assets Non-current assets Total Assets Liabilities Current liabilities Non-current liabilities Total liabilities Equity Issued Capital Retained Earnings Reserves Option reserve Total reserves Financial performance Profit / (Loss) for the year Other comprehensive income Total comprehensive income Contingent Liabilities	2014 $ 2013 $ (2,005,673) 7,617,614 98,743 107,074 - (136,724) - (173,315) 30,423 5,120 2,742 40,626 13,905 - (268,028) - - 62,738 (58,658) 665,493 25,062 (131,918) 218,410 (979,315) (59,270) 120,750
	(2,002,344) 7,198,143
	1,550,839 4,129,580 23,379,107 21,504,354
	24,929,946 25,633,934 152,776 242,089 56,073 56,013
	208,849 298,102 23,505,526 23,505,526 243,199 857,936 972,372 972,372
	972,372 972,372 (614,737) 8,324,964 - -
	(614,737) 8,324,964

The Directors are not aware of any contingent liabilities as at 30 June 2014.

ASX Code: TAS

Page 40 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 27: RELATED PARTY TRANSACTIONS

		2014	2013
		$	$
Transactions between related parties are on normal commercial terms and
conditions no more favourable than those available to other parties.
a.	Key Management Personnel
	Management fees paid to Princebrook Pty Ltd, a company in which Mr GH
	Solomon and Mr DH Solomon have an interest.	434,670	383,609
	Legal fees paid to Solomon Brothers, a firm of which Mr GH Solomon and
	Mr DH Solomon are partners.	59,005	13,564
	Underwriting and capital raising fees paid to RM Corporate Finance Pty
	Ltd, a company of which Mr GT Le Page has an interest.	-	90,000
	Noble Energy Pty Ltd, (a 100% subsidiary of Tasman Resources Ltd)
	received sub-underwriting fees from RM Corporate Finance Pty Ltd, a
	company of which Mr GT Le Page has an interest.	-	75,000
b.	Associated Companies
	Reimbursement from Conico Ltd (in which Tasman has a 19% interest)
	and its subsidiaries for employee costs on an hourly basis, for Tasman
	staff utilised by Conico.	21,765	2,968

NOTE 28: EVENTS AFTER THE BALANCE SHEET DATE

There were no material events occurring after the reporting date.

NOTE 29: COMMITMENTS

a. Exploration commitments:

In order to maintain current rights of tenure to exploration tenements, the company is required to perform minimum exploration work to meet the requirements specified by various State governments. It is anticipated that minimum expenditure commitments for the twelve months will be tenement rentals of $35,000 (2013: $32,000) and exploration expenditure of $900,000 (2013: $510,000).

b. Joint Ventures

Pursuant to the Conditional Heads of Terms entered into by Eden Energy Ltd with UK Onshore Gas Limited on 25 March 2014 it was agreed Eden’s joint venture partner will fund all operating expenses.

ASX Code: TAS

Page 41 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 30: SHARE-BASED PAYMENTS

The following share-based payment arrangements existed at 30 June 2014:

Employee Share Option Plan

The purpose of the Plan is to provide Eligible Employees with an incentive to remain with the Group and to improve the longer-term performance of the Group and its return to shareholders.

Eligible Employee means a full or part-time employee or director of the Group who is determined by the Board to be an Eligible Employee for the purposes of the Plan or any other person who is declared by the Board to be an Eligible Employee for the purposes of the Plan.

The Exercise Price is whichever is the greater of the following:

• (a) 125% of the Market Price of a Share determined on the date of grant of an Option; or

• (b) any other price determined by the Board at the time of issue.

The Exercise Period means, in relation to an Option, the period:

• (a) commencing on the second anniversary; and

• (b) ending on the fifth anniversary

of the date of grant of an Option, subject to any variation under Rule 7 or as otherwise determined by the Company at the time of grant of an Option.

The closing market price of an ordinary share of Tasman Resources Ltd on the Australian Securities Exchange at 30 June 2014 was $0.03 (30 June 2013 $0.056). The closing share market price of an ordinary share of Eden Energy Ltd on the Australian Securities Exchange at 30 June 2014 was $0.015 (30 June 2013 $0.01). Included under employee benefits expense in the statement of profit or loss or other comprehensive income is $NIL (2013: $62,738), and relates, in full, to equity-settled share-based payment transactions.

All options granted to key management personnel are for ordinary shares in either Tasman Resources Ltd or Eden Energy Ltd, which confer a right of one ordinary share for every option held.

The Eden options outstanding at 30 June 2014 all had an exercise price of $0.025 and remaining contractual life of 1.4 years.

Tasman’s Options

Outstanding at the beginning of the year Granted Exercised Expired Outstanding at year-end Exercisable at year-end	2014 2013 Number of Options Weighted Avg Exercise Price Number of Options Weighted Avg Exercise Price 2,200,000 0.135 4,601,606 0.17 - - 2,000,000 0.125 - - (500,000) 0.12 (2,200,000) 0.135 (3,901,606) 0.16
	- - 2,200,000 0.135
	- - 2,200,000 0.135

Eden’s Options

Outstanding at the beginning of the year Granted Lapsed Outstanding at year-end Exercisable at year-end	2014 2013 Number of Options Weighted Avg Exercise Price Number of Options Weighted Avg Exercise Price 3,631,250 0.036 5,066,250 0.14 - - 3,375,000 0.025 (256,250) 0.20 (4,810,000) 0.14
	3,375,000 0.025 3,631,250 0.036
	3,375,000 0.025 3,631,250 0.036

NOTE 31: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Directors are not aware of any contingent assets or contingent liabilities at 30 June 2014.

ASX Code: TAS

Page 42 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 32: FINANCIAL INSTRUMENTS

a. Financial Risk Management

The Group’s financial instruments consist mainly of deposits with banks and accounts payable.

The main purpose of non-derivative financial instruments is to raise finance for group operations.

i. Liquidity Risk

Responsibility for liquidity risk management rests with the Board of Directors. The Group manages liquidity risk by maintaining adequate reserves and by continuously monitoring cash flows.

The remaining contractual maturities of the Group and Parent entity’s financial liabilities are:

6 months or less Total	2014 $ 2013 $ 973,021 383,158
	973,021 383,158

ii. Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, as disclosed in the balance sheet.

The Group does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Group.

b. Financial Instruments

• i. Interest Rate Risk

The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

	Weighted	Weighted
	Average Effective		Floating Interest Rate		Non-Interest Bearing		Total
	Interest	Rate
	2014	2013	2014	2013	2014	2013	2014	2013
			$	$	$	$	$	$
Financial Assets:
Cash and cash equivalents	3.00%	3.25%	1,685,238	4,054,733	-	-	1,685,238	4,054,733
Financial assets (fixed interest)	9.00%	9.00%	-	-	-	-	100,000	100,000
Trade and other receivables	-	-	-	-	411,016	1,087,012	411,016	1,087,012
Total Financial Assets	-	-	1,685,238	4,054,733	411,016	1,087,012	2,196,254	5,241,745
Financial Liabilities:
Trade and sundry payables	-	-	-	-	973,021	383,158	973,021	383,158
Total Financial Liabilities	-	-	-	-	973,021	383,158	973,021	383,158

ASX Code: TAS

Page 43 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 32: FINANCIAL INSTRUMENTS CONTINUED

• b. Financial Instruments (continued)

• ii. Net Fair Values

Aggregate net fair values and carrying amounts of financial assets and financial liabilities.

	2014	2014	2013
	Carrying	Net Fair Value	Carrying	Net Fair
	Amount	$	Amount	Value
	$		$	$
Financial Assets
Cash and cash equivalents	1,685,238	1,685,238	4,054,733	4,054,733
Trade and other receivables	411,016	411,016	1,137,012	1,137,012
Financial assets	100,000	100,000	100,000	100,000
Investments accounted for using the equity method	-	150,000	-	300,000
	2,196,254	2,346,254	5,291,745	5,591,745
Financial Liabilities
Trade and sundry payables	973,021	973,021	383,158	383,158
	973,021	973,021	383,158	383,158
NOTE 33: COMPANY DETAILS
The registered office of the company is:	The principal place of business is:
Tasman Resources Ltd	Tasman Resources Ltd
Level 15	Level 15
197 St Georges Terrace	197 St Georges Terrace
Perth	Perth
Western Australia 6000	Western	Australia 6000

ASX Code: TAS

Page 44 of 53

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Independent auditor’s report to the members of Tasman Resources Ltd

Report on the financial report

We have audited the accompanying financial report of Tasman Resources Ltd, which comprises the consolidated statement of financial position as at 30 June 2014, and the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ responsibility for the financial report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with the Australian Accounting Standards and the Corporations Act 2001 . This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Independence

In conducting our audit, 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 Tasman Resources Ltd, would be in the same terms if given to the directors as at the time of this auditor’s report.

Opinion

In our opinion:

• (a) the financial report of Tasman Resources Ltd is in accordance with the Corporations Act 2001 , including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2014 and of its performance for the year ended on that date; and

• (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.

• (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Emphasis of Matter

Without modifying our opinion, we draw attention to Note 1 to the Financial Report, which indicates that the Group will require further funding in the next twelve months from the date of this report to fund its operations. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.

Report on the remuneration report

We have audited the remuneration report included of the directors’ report for the year ended 30 June 2014. The directors of the company are responsible for the preparation and presentation of the remuneration report in accordance with Section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the remuneration report of Tasman Resources Ltd for the year ended 30 June 2014, complies with Section 300A of the Corporations Act 2001 .

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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director Perth, 25 September 2014

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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DIRECTORS’ DECLARATION

In the opinion of the directors of Tasman Resources Ltd (the “Company”):

• a. the financial statements and notes set out on pages 21 to 44, and the Remuneration disclosures that are contained in pages 17 to 18 of the Remuneration Report in the Directors’ Report, are in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Group’s financial position as at 30 June 2014 and of its performance, for the financial year ended on that date; and

• (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

• (iii) complying with International Financial Reporting Standards as disclosed in Note 1.

• b. the remuneration disclosures that are contained in page 17 to 18 of the Remuneration Report in the Directors’ Report comply with Australian Accounting Standard AASB 124 Related Party Disclosures and

• c. there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

________ Gregory H Solomon Director

Dated this 25[th] day of September 2014

ASX Code: TAS

Page 45 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

1. Shareholding as at 31 August 2014

2. a. Distribution of Shareholders

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES areholding as at 31 August 2014
Distribution of Shareholders Category (size of holding) 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – and over	Number Ordinary 107 310 338 1,076 304
	2,135

• b. The number of shareholdings held in less than marketable parcels at 31 July 2014 is 1,029.

• c. The names and relevant interests of the substantial shareholders listed in the company’s register as at 31 August 2014 are:

The names and relevant interests of the substantial 31 August 2014 are:	shareholders listed in the company’s register as at
Shareholder	Number Ordinary
Arkenstone Pty Ltd	28,621,975
March Bells Pty Ltd	28,301,500

• d. Voting Rights

Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.

e. 20 Largest Shareholders — Ordinary Shares

Name 1. Arkenstone Pty Ltd 2. March Bells Pty Ltd 3. March Bells Pty Ltd 4. Arkenstone Pty Ltd 5 Nirvana Now Pty Ltd 6. Mr Lafras Luitingh 7. Kalsie Holdings Pty Ltd 8. Citicorp Nominees Pty Limited 9. Mr Thomas Fleet Scaife 10. Font SF Pty Ltd 11. Ernie Pty Ltd 12. March Bells Pty Ltd 13. Citycastle Pty Ltd 14. HSBC Custody Nominees (Australia) Ltd 15. Mr David Thomas Crane 16. Mr & Mrs Rogerson & Miss C Rogerson 17. Catchpole Investments Pty Ltd 18 NGY Holdings Pty Ltd 19. Kavel Pty Ltd 20. Lippo Securities Nominees (BVI) Ltd

Number of Shares Held % of Issued Capital 22,449,927 9.909% 19,318,008 8.526% 8,497,000 3.750% 8,227,200 3.631% 5,000,000 2.207% 4,250,000 1.876% 4,000,000 1.765% 3,629,279 1.602% 3,200,912 1.413% 3,000,000 1.324% 2,800,000 1.236% 2,356,601 1.040% 2,228,900 0.984% 2,196,500 0.969% 2,000,000 0.863% 1,736,805 0.788% 1,736,805 0.767% 1,708,928 0.754% 1,625,850 0.718% 1,500,000 0.662%

101,462,715 44.784%

ASX Code: TAS

Page 48 of 53

Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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TENEMENT SCHEDULE

Table 1: Tasman Resource Tenement Schedule

State	Licence Type	Number	% Interest	Locality	Location
SA	EL	4770	100	Lucas Hill	Approximately25 km south of Woomera
SA	EL	5363	100	Mt Boothby	Approximately145km northwest of Naracoorte
SA	EL	5366	100	White Cliff	Approximately70 km NNW of Andamooka
SA	EL	4300	100	Andamooka	ImmediatelyENE of Andamooka
SA	EL	4857	100	Todds Dam	Approximately45 km west of Andamooka
SA	EL	4322	100	Andamooka North	Approximately140 km northwest of Leigh Creek
SA	EL	4475	100	Iron Knob	Approximately50 km WSW of Port Augusta
SA	EL	5151	100	Wildingi Claypan	Approximately95 km southwest of Coober Pedy

Table 2: Eden Energy Ltd Tenement Schedule

Country/State	Licence Type	Number	% Interest	Holder	Locality
Wales, UK	PEDL	100	50	Adamo Energy (UK)Ltd	Pencoed - Port Talbot
Wales, UK	PEDL	148	50	Adamo Energy (UK)Ltd	Upper Neath Valley
Wales, UK	PEDL	149	50	Adamo Energy (UK)Ltd	Lower Neath Valley
Wales, UK	PEDL	214	50	Adamo Energy (UK)Ltd	Swansea
Wales, UK	PEDL	215	50	Adamo Energy (UK)Ltd	Neath
Wales, UK	PEDL	216	50	Adamo Energy (UK)Ltd	Cowbridge
Wales, UK	PEDL	217	50	Adamo Energy (UK)Ltd	Cowbridge
Wales, UK	PEDL	219	50	Adamo Energy (UK)Ltd	Cowbridge
Wales, UK	PEDL	220	50	Adamo Energy (UK)Ltd	Pontypridd
England, UK	PEDL	227	50	Adamo Energy (UK)Ltd	Bristol
England, UK	PEDL	249	50	Adamo Energy (UK)Ltd	Ayleshan
England, UK	PEDL	250	50	Adamo Energy (UK)Ltd	Ayleshan
England, UK	PEDL	252	50	Adamo Energy (UK)Ltd	Deal

ASX Code: TAS

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

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	JORC TABLE 1 (Vulcan Project, EL 4322)	JORC TABLE 1 (Vulcan Project, EL 4322)
	Section 1 Sampling techniques and data (criteria in this group apply to all succeeding groups)
Criteria	**JORC Code explanation **	Commentary
Sampling techniques.	 Nature and quality of sampling (EG cut channels, random chips or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report. In cases where “industry standard” work has been done this would be relatively simple (eg “reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised to produce a 30g charge for fire assay”). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	 All samples have been obtained from NQ2 diamond drill core. See further details below.  In general, core recovery at Vulcan is 100% or close to it, and normally drilling will fill a six metre core barrel with each run. Rare instances where core loss is apparent are documented. Each piece of drill core is washed and carefully placed in plastic core trays for geological logging.  Mineralisation at Vulcan is essentially disseminated in nature, and half core, NQ2 split samples, collected over one metre intervals is believed to be appropriate. The composite samples prepared from small core chips are clearly less representative, and as mentioned, any significant mineralisation returned for such samples is confirmed by half core splitting and re-assaying over one metre intervals.
Drilling techniques.	 Drill type (eg. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	 All drilling at Vulcan is conducted by first pre-collaring holes with reverse circulation drilling to approximately 150m, and completing the hole with a combination of HQ and NQ2 diamond drilling. All basement core is NQ2 size. Standard, 6m core barrels are generally used, and core is oriented using a Reflex ACT tool.
Drill sample recovery.	 Whether core and chip sample recoveries have been properly recorded and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	 Most diamond drilling at Vulcan results in 100% core recovery or close to it. In rare cases where there has been some core loss, this is measured and recorded by the geologist logging the core. There has been no need to use, for example, triple tubes to enhance core recovery.  As sample recovery is or close to 100% no special measures have been required.  As sample recovery is 100% or close to it no investigation of a potential relationship between grade and sample recovery has been conducted.
Logging.	 Whether core and chip samples have been logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel etc.) photography.  The total length and percentage of the relevant intersections logged.	 Logging is conducted in detail at the drill site by the site geologist, who routinely records lithology and rock textures, alteration, mineralisation, structures or any other relevant features. A semi-quantitative estimate of the strength of uranium mineralisation is made with a hand held scintillometer, and this is recorded in the drill logs. Core is logged both descriptively and with digital codes. All basement drill core is logged in detail; the overlying sedimentary cover sequence is logged in less detail. Each tray of basement core is photographed, and separate photos of specific geological details are also collected. It is considered to be logged at a level of detail to support appropriate Mineral Resource estimation and mining studies.  Logging is qualitative in nature.  The entire interval of basement drill core in each hole is logged.

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Sub- sampling techniques and sample preparation.	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected.  Whether sample sizes are appropriate to the grainsize of the material being sampled.	 Sawn, half core is taken for analysis.  No non-core samples are taken.  Where significant mineralisation is believed to be present, core is halved or split with a diamond saw; if mineralisation is not homogeneously distributed in sections of the core, the geologist logging the core will have marked up those sections to ensure representivity between each half of the core when it is split. One metre long samples of half core are then removed for analysis. If little, or no significant mineralisation is present, small pieces of core are cut out at 25cm intervals and composited over several metres (often 5m intervals) for assay. If assay reveals significant mineralisation in these composite samples, then re-assay on one metre intervals following splitting is conducted. Mineralisation at Vulcan is essentially disseminated in nature, and half core, NQ2 split samples, collected over one metre intervals is believed to be appropriate. The composite samples prepared from small core chips are clearly less representative, and as mentioned, any significant mineralisation returned for such samples is confirmed by half core splitting and re-assaying over one metre intervals. Field duplicate/second-half sampling is not considered appropriate.
Quality of assay data and laboratory tests.	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometer, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation etc.  Nature of quality control procedures adopted (eg. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie. lack of bias) and precision have been established.	 Samples were crushed and pulverised, and analysed as follows: Au by fire assay using the Genalysis scheme FA25/MS with a 1 ppb detection limit. Cu was analysed by inductively coupled plasma mass spectrography by Genalysis 4A/OE scheme (1ppm detection limit), and Ag and U3O8 by the Genalysis 4A/MS scheme (0.05ppm and 0.01ppm respectively). Density was determined by gas pycnometer. These procedures are considered appropriate for the elements and style of mineralisation. Analysis is considered total.  As noted above, a handheld scintillometer is used to assess semi-quantitatively the strength of any uranium mineralisation, but these data are not included in any database.  The laboratory uses a number of internal quality control procedures in place (eg. standards, blanks, duplicates etc.) and Tasman includes a quality control standard of its own with each batch of samples. These quality control data are assessed continuously, and believed to be adequate in achieving accuracy andprecision.
Verification of sampling and assaying.	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 Significant intersections are determined by company personnel, and checked internally.  No twinned holes have been drilled at this stage nor are they practical considering the depth to basement.  Individual sample numbers are generated and matched with down hole depths at a custom core processing facility in Adelaide. Sample numbers are then used to match assays when received from the laboratory. Verification of data is managed and checked by company personnel with extensive experience. All data is stored electronically, with industry standard systems and backups.  Data is not subject to anyadjustments.
Location of data points.	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 Collar locations were determined by hand held GPS and are accurate to approximately +/- 5m (northing and easting); GPS derived RLs are not sufficiently accurate for use, and a combination of values obtained during gravity surveying and from Google Earth are used. Down hole surveying of drill holes is conducted using a single shot down hole camera with digital readout.  The grid system used is Geodetic Datum of Australia 1994; MGA Zone 53.  Topographic control is not a significant issue due to the generally flat topography. Measurements of RL from Google Earth are considered in conjunction with more accurate data obtained during gravitysurveys over the Vulcan area.

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Data spacing and distribution.	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	 Drill holes are not spaced on a regular grid due to topographical features on the surface, Aboriginal heritage issues and the early stage nature of the prospect.  No continuity or correlation between drill holes is implied at this stage.  Some sample compositing is used in zones of non-significant mineralisation(see sections above)
Orientation of data in relation to geological structure.	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 At this stage the relationship between the orientation of geological structures and the drill holes is not known.  This is discussed and addressed in the body of the announcement or report. It is likely that the thicknesses of any intersections reported as down hole thicknesses, are not the true widths of the intersections.
Sample security	 The measures taken to ensure sample security.	 All core is contained in core trays, which are packed onto pallets at the drill site by company personnel. The core trays are covered, then tightly secured with steel strapping prior to transport initially to a local freight yard and then trans-shipped to the Adelaide custom coreprocessingfacility. No tamperinghas occurred to date.
Audits or reviews.	 The results of any audits or reviews of sampling techniques and data.	 No review or audits of sampling techniques or data have been conducted.

	Section 2 Reporting of Exploration Results (Vulcan Project, EL 4322) (criteria listed in the preceding group apply also to this group)
Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status.	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 Exploration Licence No 4322, is located approximately 13km north of Olympic Dam, South Australia and owned 100% by Tasman Resources Ltd. The EL is subject to a Farm-In/Joint Venture Agreement between Tasman Resources Ltd and Rio Tinto Exploration. There are no partnerships or royalties involved. The EL is partially covered by the Kokatha Uwankara native title claim (SC2009/01), and agreements between the claimants and Tasman designed to protect Aboriginal heritage sites. There are no historical or wilderness sites or national parks or known environmental settings that affect the Vulcan prospect.  Tasman has secure tenure over the EL at the time of reporting and there are no known impediments to obtaining a licence to operate in the area.
Exploration done by other parties.	 Acknowledgment and appraisal of exploration by other parties.	 The first drill hole in the area was drilled in 1981 by WMC Resources, but was drilled off Tasman’s current Vulcan target, and no mineralisation was intersected. Tasman’s former joint venture partner WCP Resources Ltd conducted some ground gravity surveying, data processing and modelling, but conducted no further work. No other exploration has been conducted by other parties, apart from regional geophysical surveys by Government Departments. Tasman discovered Vulcan prospect in November 2009, with the drillingof VUD 001.
Geology.	 Deposit type, geological setting and style of mineralisation.	 Vulcan is emerging as a major iron-oxide, copper gold uranium type system (IOCGU), with many geological similarities to Olympic Dam, about 30km south. Vulcan occurs within basement rocks beneath approximately 800m of younger, flat-lying sedimentary cover rocks. Vulcan has been dated at 1,586 +/- 8 million years old, the same at Olympic Dam (Proterozoic age). Only a very limited number of drill holes have been completed within a very large target area, and there are still many questions to be resolved, such as host rocks, regional structural settingetc.
Drill hole information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:  Easting and northing of the drill hole collar  Elevation or RL (Reduced Level-elevation above sea level in metres) of the drill hole collar  Dip and azimuth of the hole  Down hole length and interception depth  Hole length	 Refer to details in the body of the report or announcement.

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Tasman Resources Ltd Annual Report for Year Ending 30 June 2014

Data aggregation methods.	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg. cutting of high grades) and cut- off grades are usually material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	 Average assays for the intervals stated above were calculated by weighting by sample length and sample density. There has been no cutting of high grades, unless specifically noted. For individual assays below the lower limit of detection, a grade of half the detection limit has been applied, although this is rare.  Generally assays are relatively consistent within averaged intervals. If particularly high grade samples diluted by lower grade samples were returned, then this would be highlighted specifically.  No metal equivalent values have been calculated.
Relationshi p between mineralisati on widths and intercept lengths.	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down-hole lengths are reported, there should be a clear statement to this effect(eg. ‘downhole length, true width not known’).	 At the current stage of evaluation of Vulcan, the orientation of mineralisation is not known with any certainty, and hence all statements regarding drill hole intersections are clarified with the comment that intersections are “down hole”.
Diagrams.	 Where possible, maps and sections (with scales) and tabulations of intercepts should be included for any material discovery being reported if such diagrams significantly clarify the report.	 Diagrams showing a plan view of drill hole collar locations and any appropriate sectional view are included.
Balanced reporting.	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	 It is impracticable to report all assay results due to the multi- element nature of the mineralisation and the substantial thicknesses involved (these can be hundreds of metres). Accordingly, intervals for reporting have been selected having regard for the main elements of potential economic significance in IOCGU systems (copper, gold, uranium), at levels and widths considered to exhibit a high degree of anomalism, potential to provide vectors to economic mineralisation or represent potentially economic material.
Other substantive exploration data.	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	 Any other substantive exploration data such as pertinent geological observations, petrographic data, geochronological data, geophysical results are included where appropriate.
Further	 The nature and scale of planned further work (eg. tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive	 The nature and timing of planned further work is included in the report.

ASX Code: TAS

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