TASMAN RESOURCES LTD — Interim / Quarterly Report 2003

Mar 13, 2003

TASMAN RESOURCES N.L. (A.C.N. 009 253 187)

$\mathcal{L}^{\text{max}}_{\text{max}}$

$\sim 10^{11}$

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2002

TASMAN RESOURCES N.L. DIRECTORS' REPORT

Your directors submit the financial report of the company for the half-year ended 31 December 2002.

DIRECTORS

The names of the directors who held office during or since the end of the half-year:

Gregory Howard Solomon LLB (Chairman) William Stanley Yeaman B.Sc. (Hons); FAusIMM; FIMM; (Non-Executive) Guy Touzeau Le Page, B.A., B.Sc. (Hons)., M.B.A., ASIA., MAusIMM (Non-Executive)

PRINCIPAL ACTIVITY

The principal activity of the company during the financial year was to incur costs in relation to exploration on mining tenements.

REVIEW OF OPERATIONS

South Australia

EL 2507, EL 2543, EL 2594, EL 2642, EL 2733, EL 2772, EL 2832, EL 2835, EL 2988 (formerly EL 2339), EL 2989 (formerly EL 2340), EL 3006 and EL 3007 (Tasman Resources N.L. - 100%)

LAKE TORRENS PROJECT

$1₁$ Corporate

During the half year, a capital raising by private placement was completed with 1,650,000 ordinary fully paid shares being issued at 10 cents per share. This raised \$165,000 to be used for exploration and drilling work on the Lake Torrens Project.

• $\overline{2}$ . Cash Reserves The Cash Reserves available at the 31 December 2002 totalled \$1.288.503.
• 1. Exploration Tenements

The Company's active tenements which all form one block in central South Australia adjoining WMC's Olympic Dam mine and exploration licence and which together comprise "the Lake Torrens Project Area" are Exploration Licences 2507, 2543, 2594, 2642, 2733, 2772, 2832, 2835, 2988 (formerly 2339), 2989 (formerly 2340), 3006 and 3007. All these tenements are 100% owned by Tasman Resources NL.

$\overline{4}$ . Exploration Activities

During the half year to 31 December 2002 the company undertook the following exploration activities on the Lake Torrens Project Area:

• $4.1$ Marathon
• $(i)$ A large, detailed close spaced gravity survey was conducted over the whole of the Marathon area. This identified 5 residual gravity anomalies (M1 -M5) and the overall structure is interpreted to be situated along the same structure as WMC's Olympic Dam Mine and Acropolis prospect.
• A total of 9 electrical survey lines were conducted over M1 (3 lines), M2 (4 $(ii)$ lines), M3, M4 and M5 targets.

TASMAN RESOURCES N.L. DIRECTORS' REPORT (Cont'd)

REVIEW OF OPERATIONS (Cont'd) South Australia (Cont'd)

Exploration Activities (Cont'd)

$4.2$ Clara St Dora

持

• The company digitised a previous gravity survey completed by Shell during the early 1980's, and followed this with a new gravity survey to connect the Shell survey to the area adjacent to the old mine near where the February 2002 drilling program took place.
• 3 electrical survey lines were conducted over the residual gravity anomalies identified by the gravity survey.
• $(ii)$ Close spaced geochemical (mobile metal ion - MMI) sampling took place over 2 of the target areas.
• $4.3$ Shelf 6

One diamond drill hole was completed on a secondary target to a down hole depth of 167.5m. At various intervals, non-economic Mississippi Valley Style (MVT) mineralisation comprising minor copper and zinc sulphides was observed, which again confirmed the existence of this form of mineralisation. A further drill hole on the primary target was abandoned due to mechanical failure and will be drilled during the first half of 2003.

$4.4$ Amoco

This area, identified from a 1980's gravity survey conducted by Amoco over the area approximately 5km SW of Shelf 6, was tested with 3 electrical survey lines which identified a significant Induced Polarisation (IP) anomaly which has been identified as a further possible MVT target.

4.5 Westmount

Surface sampling (MMI and rock clip) was conducted over several extensive zones. The areas of interest were then mapped, but due to the emergence of major targets at Clara St Dora and Marathon no further work was undertaken,

5. Future Exploration Programme

During the next half year the company will continue with the following activities:

• $5,1$ Drilling program on major targets at Clara St Dora, Shelf 6, Marathon and possibly Titan and Amoco.
• Further geophysical surveys and geochemical sampling over various targets around $5.2$ the Lake Torrens Project Area.

ELA 24/94 - Pitjantjatjarra Land (Tasman Resources N.L. - 100%)

An application was lodged in 1994. To date this licence has not been granted.

OPERATING RESULTS

The company has reported a loss of \$236,231 for the period, after providing for nil income tax.

TASMAN RESOURCES N.L. DIRECTORS' REPORT (Cont'd)

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Significant change in the state of affairs of the Company during the period was as follows;

An increase in the paid up capital from \$4,177,051 to \$4,338,151 as a result of issue of the following shares during the period;

1,650,000 ordinary fully paid shares were issued at 10 cents per share as per applications to raise working capital. A commission of 6% was payable on funds raised by any licenced dealer.

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.

FUTURE DEVELOPMENTS

The Company proposes to continue with its exploration program.

This report is made in accordance with a resolution of the board of directors and is signed for and on behalf of the directors by:

Gregory Derowon

G H Solomon Director

Signed in Perth this $\sqrt{3}$ day of March 2003

TASMAN RESOURCES N.L. DIRECTORS DECLARATION

The directors of the company declare that:

$\mathbf{1}$ the financial statements and notes, as set out on pages 5 to 9:

$(a)$ comply with Accounting Standards AASB 1029: Interim Financial Reporting and the Corporations Regulations; and

give a true and fair view of the company's financial position as at 31 December 2002 and $(b)$ of its performance for the half-year ended on that date;

in the director's opinion, there are reasonable grounds to believe that the company will be $2.$ 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.

Grenory of Bromo

G H Solomon Director

Signed in Perth this /3 day of March 2003

TASMAN RESOURCES N.L. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2002

	31 December 2002 \$	30 June 2002 \$
CURRENT ASSETS
Cash Assets Receivables	1,288,503 31,779	1,534,701 85,977
TOTAL CURRENT ASSETS	1,320,282	1,620,678
NON CURRENT ASSETS
Property Plant & Equipment Exploration Expenditure at Cost	36,992 2,447,877	43,652 2,076,328
TOTAL NON CURRENT ASSETS	2,484,869	2,119,980
TOTAL ASSETS	3,805,151	3,740,658
CURRENT LIABILITIES
Payables	272,243	132,620
TOTAL CURRENT LIABILITIES	272,243	132,620
NET ASSETS	3,532,908	3,608,038
EQUITY
Contributed Equity Accumulated Losses	4,338,151 (805, 243)	4,177,051 (569, 013)
TOTAL EQUITY	3,532,908	3,608,038

The accompanying notes form part of this financial report.

TASMAN RESOURCES N.L. STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2002

	31 DECEMBER 2002 s	31 DECEMBER 2001 \$
CLASSIFICATION OF EXPENSES BY FUNCTION
Other revenues from ordinary activities
Interest Revenue	30,239	9,766
Administration expenses Depreciation expense	(257, 787) (8,683)	(110, 969)
Loss from ordinary activities before income tax expense	(236, 231)	(101, 203)
Income tax (expense) / benefit
Loss from ordinary activities after income tax expense	(0.526)	(0.403)
Diluted earnings per share (cents per share)		0.221

As at 31 December 2002 the company had 30,630,849 options on issue exercisable at 20 cents. As the share price was below exercise price at the reporting date these options have not been considered dilutive.

The accompanying notes form part of this financial report.

TASMAN RESOURCES N.L. STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2002

$\mathcal{L}(\mathcal{L}^{\text{max}}_{\text{max}})$

	31 DECEMBER 2002 \$	31 DECEMBER 2001 \$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers Interest received Goods and Services Tax Paid	(249, 479) 30,239 55,790	(78, 947) 9,766 (69, 930)
Net cash used in operating activities	(163, 450)	(139, 111)
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration expenditure Purchase of Plant & Equipment	(241, 825) (2,023)	(180, 680) (18, 264)
Net cash used in investing activities	(243, 848)	(198, 944)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares Costs of Share Issues	165,000 (3,900)	3,720,000 (451, 499)
Net cash provided by financing activities	161,100	3,268,501
Net increase (decrease) in cash held Cash at 1 July 2002	(246, 198) 1,534,701	2,930,446 84,340
Cash at 31 December 2002	1,288,503	3,014,786

The accompanying notes form part of this financial report.

TASMAN RESOURCES N.L. NOTES TO THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2002

$1.$ BASIS OF PREPARATION

The half-year financial report is a general purpose financial report prepared in accordance with the requirements of Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2002 and any public announcements made by Tasman Resources NL during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entity and are consistent with those applied in the 30 June 2002 annual report.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

$2.$ COMMITMENTS

Exploration Commitments

The company has certain obligations to perform minimum exploration work and to expend minimum amounts of money on such work on mining tenements. These obligations may be varied from time to time subject to approval and are expected to be fulfilled in the normal course of the operations of the company subject to the company being able to raise sufficient additional capital. The total annual commitments on the existing tenements is \$1,050,000. These commitments have not been provided for in the accounts. In part these commitments can be satisfied by time spent by officers of the company on activities related to the exploration tenements.

3. EVENTS SUBSEQUENT TO REPORTING DATE

Since the end of the financial period the following events have occurred:

In January 2003 a capital raising by private placement was completed with 2,071,000 ordinary fully paid shares being issued at 17 cents per share. This raised \$352,070 to be used for exploration and drilling work on the Lake Torrens Project. A commission of 6% was payable on funds raised by any licenced dealer.

An area of 2424km² (being portions of Els 2988, 2642, 3006 and 3007) was relinguished in accordance with the requirements of the South Australian Department of Mineral Resources. The remaining tenements comprise an aggregate area of 7201km².

Apart from the above there are no other matters or circumstance have arisen since the end of the half year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.

4. SEGMENT INFORMATION

${i}$ Geographical

The entity operates only in Australia

$(ii)$ Business

The company operated in the area of mineral exploration.

TASMAN RESOURCES N.L. NOTES TO THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2002

5. CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF TASMAN RESOURCES NL

SCOPE

We have reviewed the financial report, being the Condensed Statement of Financial Performance, Statement of Financial Position, Statement of Cash Flows, Notes to the financial report and Directors' Declaration of Tasman Resources NL for the half year ended 31 December 2002. The company's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements and statutory requirements, so as to present a view which is consistent with our understanding of Tasman Resources NL's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the company to lodge the financial report with the Australian Securities and Investments Commission.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

REVIEW STATEMENT

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half year financial report of Tasman Resources NL is not in accordance with :

• the Corporations Act 2001, including: $(a)$
• giving a true and fair view of the company's financial position as at $(i)$ 31 December 2002 and of its performance for the half year ended on that date; and
• $(ii)$ complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations 2001; and
• $(b)$ other mandatory professional reporting requirements.

INHERENT UNCERTAINTY REGARDING CARRYING VALUE OF CAPITALISED ACQUISITION AND EXPLORATION COSTS

Without qualification in the opinion expressed above, attention is drawn to the carrying value of mining tenements and exploration expenditure carried forward which is dependent upon the company's rights to tenure of the areas of interest, the results of future exploration and the recoupment of costs through successful development and exploration of the areas of interest, or alternatively by their sale at amounts at least equal to book value.

Rtrill Chachile

HALL CHADWICK Chartered Accountants

DATED at PERTH this 14^th day of March 2003

MAURICE L. ANGHIE Partner

Level 40 BookWest Tower 108 St George's Terrace Penh 6000 Western Australia

GPO Box W2106 PERTH WA 6846

Telephone: (08) 9320 2888
Facsimile: (08) 9320 2999
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