TESORO GOLD LTD — Interim / Quarterly Report 2012

Feb 16, 2012

Appendix 4D Half yearly report

Rules 4.1, 4.3

Appendix 4D

Half yearly report

Introduced 1/1/2003.

Name of Entity	Continuation Investments Limited
ABN	91 106 854 175
Financial Period Ended	31 DECEMBER 2011
Previous Corresponding Reporting Period	31 DECEMBER 2010

Results for Announcement to the Market

Results for Announcement to the Market	Results for Announcement to the Market	Results for Announcement to the Market
			$		Percentage increase /(decrease) over previous corresponding period
Revenue from ordinary activities			(267,709)		Not meaningful
Loss from ordinary activities after tax attributable to members			(397,945)		-87.7%
Loss for the period attributable to members			(397,945)		-87.7%
Dividends (distributions)	Amount per security			Franked amount per security
Final Dividend	Nil			-
Interim Dividend	Nil			-
Previous corresponding period	25.0cents			25.0cents
Record date for determining entitlements to the dividends (if any)
Brief explanation of any of the figures reported above necessary to enable the figures to be understood: Refer to Attachment 1 for further details.

The half-yearly report it is to be read in conjunction with the most recent annual financial report.

• See chapter 19 for defined terms.

Appendix 4D Page 1

1/1/2003

Appendix 4D Half yearly report

Dividends

Date the dividend is payable Record date to determine entitlement to the dividend Amount per security Total dividend Amount per security of foreign sourced dividend or distribution Details of any dividend reinvestment plans in operation The last date for receipt of an election notice for participation in any dividend reinvestment plans

NTA Backing

NTA Backing
	Current Period	Previous corresponding period
Net tangible asset backing per ordinary security	71.4c	91.0c
Control Gained Over Entities Having Material Effect
Name of entity (orgroupof entities)		-
Date controlgained		-
Consolidated profit / (loss) from ordinary activities since the date in the current period on whichcontrolwas acquired		-
Profit / (loss) from ordinary activities of the controlled entity (or group of entities) for the whole ofthe previous corresponding period		-

Loss of Control Gained Over Entities Having Material Effect

Name of entity (orgroupof entities)	-
Date control lost	-
Consolidated profit / (loss) from ordinary activities for the current period to the date of loss ofcontrol	-
Profit / (loss) from ordinary activities of the controlled entity (or group of entities) while controlled for the whole of the previous corresponding period	-

Details of Associates and Joint Venture Entities

Name of Entity	Percentage Held	Percentage Held	Share of Net Profit	Share of Net Profit
	Current Period	Previous Period	Current Period	Previous Period
	-	-	-	-

• See chapter 19 for defined terms.

Appendix 4D Page 2

1/1/2003

Appendix 4D Half yearly report

Audit/Review Status

This report is based on accounts to which one of the following applies: (Tickone)	This report is based on accounts to which one of the following applies: (Tickone)	This report is based on accounts to which one of the following applies: (Tickone)	This report is based on accounts to which one of the following applies: (Tickone)	This report is based on accounts to which one of the following applies: (Tickone)
The accounts have been audited			The accounts have been subject to review	X
The accounts are in the process of being audited or subject to review			The accounts have not yet been audited or reviewed
If the accounts have not yet been audited or subject to review and are likely to be subject to dispute or qualification, a description of the likely dispute or qualification: Not applicable
If the accounts have been audited or subject to review and are subject to dispute or qualification, a description of the dispute or qualification: Not applicable
Attachments Forming Part of Appendix 4D
Attachment #	Details
1	Interim Financial Report
Signed By (Director/Company Secretary)
Print Name			AndrewJ. Brown(Executive Chairman)
Date			17 February2012

• See chapter 19 for defined terms.

Appendix 4D Page 3

1/1/2003

Continuation Investments Limited ABN 91 106 854 175

Financial Statements

For the Half-Year Ended 31 December 2011

Continuation Investments Limited

ABN 91 106 854 175

Contents

For the Half-Year Ended 31 December 2011

	Page
Financial Statements
Portfolio Shareholdings	1
Directors' Report	2
Auditor's Independence Declaration	3
Statement of Comprehensive Income	4
Statement of Financial Position	5
Statement of Changes in Equity	6
Statement of Cash Flows	7
Notes to the Financial Statements	8
Directors' Declaration	13
Independent Auditor's Review Report	14

Continuation Investments Limited ABN 91 106 854 175

Portfolio Shareholdings

As At 31 December 2011

Security	Value ($)	% of Portfolio
Cash at Bank	1,623,571	100%
TOTAL	1,623,571	100%

The accompanying notes form part of these financial statements.

1

Continuation Investments Limited

ABN 91 106 854 175

Directors' Report

For the Half-Year Ended 31 December 2011

Your directors present their report on Continuation Investments Limited for the financial half-year ended 31 December 2011.

Directors

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

Stuart Nisbett	(Resigned 31 October 2011)
John Vatovec	(Resigned 31 October 2011)
Alan Dixon	(Resigned 31 October 2011)
Chris Brown	(Resigned 31 October 2011)
Chris Duffield	(Resigned 31 October 2011)
Alex MacLachlan	(Resigned 31 October 2011)
Andrew Brown	(Appointed 31 October 2011)
Stephen Roberts	(Appointed 31 October 2011)
Richard Ochojski	(Appointed 31 October 2011)

Dividends

No dividends were paid or declared during the half-year ended 31 December 2011.

Review of Operations

Review of Operations
Profit/(Loss) from ordinary activities before income tax expense Income tax expense Loss from ordinary activities after income tax expense	31 December 2011 31 December 2010 $ $ (397,945) 5,268,530 - (8,513,165)
	(397,945) (3,244,635)

Auditor's independence declaration

The auditor's independence declaration for the half-year ended 31 December 2011 has been received and can be found on page 3.

This report is made in accordance with a resolution of the directors of the company.

==> picture [133 x 57] intentionally omitted <==

Andrew Brown Executive Chairman

Dated: 17 February 2012

2

Continuation Investments Limited ABN 91 106 854 175

Auditor's Independence Declaration

3

Continuation Investments Limited

ABN 91 106 854 175

Statement of Comprehensive Income

For the Half-Year Ended 31 December 2011

Note Revenue from trading portfolio Dividends Interest Net unrealised gains Realised gain/(loss) on sale of trading portfolio Other revenue Total profit/(loss) from trading portfolio Expenses Management fees Audit fees Brokerage Share registry fees Directors' fees Insurance ASX listing fees Legal fees Other operating expenses Total Expenses Profit before income tax Income tax expense 3 Loss for the period Other comprehensive income for the period Total comprehensive income for the period Earnings per share Basic and diluted earnings per share (cents) 4	Half-year ended 31 December 2011 $ Half-year ended 31 December 2010 $ 42,913 78,721 34,086 345,793 79,127 1,096,578 (424,085) 4,180,003 250 -
	(267,709) 5,701,095
	- (93,008) (13,198) (21,326) 42,833 (3,369) (47,510) (61,137) (25,046) (112,500) (12,500) (40,134) (3,971) (17,946) (28,435) - (42,409) (83,145)
	(130,236) (432,565)
	(397,945) 5,268,530 - (8,513,165)
	(397,945) (3,244,635)
	- -
	(397,945) (3,244,635)
	(9.95) (7.37)

The accompanying notes form part of these financial statements.

4

Continuation Investments Limited

ABN 91 106 854 175

Statement of Financial Position

As At 31 December 2011

ASSETS Cash and cash equivalents Trade and other receivables Trading portfolio Prepayments TOTAL ASSETS LIABILITIES Trade and other payables Financial liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Accumulated losses TOTAL EQUITY	31 December 2011 $ 30 June 2011 $ 1,623,571 307,962 12,407 35,228 - 3,839,718 10,417 22,917
	1,646,395 4,205,825
	17,238 182,659 239,425 413
	256,663 183,072
	1,389,732 4,022,753
	22,426,347 24,661,423 **(21,036,615) ** (20,638,670)
	1,389,732 4,022,753

The accompanying notes form part of these financial statements.

5

Continuation Investments Limited

ABN 91 106 854 175

Statement of Changes in Equity

For the Half-Year Ended 31 December 2011

Balance at 1 July 2010 Profit or loss attributable to members Dividends provided for or paid Capital return Costs of issued capital Balance at 31 December 2010 Profit or loss attributable to members Shares bought back during the period Balance at 30 June 2011 Profit or loss attributable to members Shares bought back during the period Balance at 31 December 2011	Share Capital $ Accumulated Losses $ Total $
	121,723,638 (15,358,490) ASSETS65,14 - (3,244,635) (3,244,635) - (1,372,268) (1,372,268) (96,587,286) - (96,587,286) (172,620) - (172,620)
	24,963,732(19,975,393) 4,988,339
	- (663,277) (663,277) (302,309) - (302,309)
	24,661,423(20,638,670) 4,022,753
	- (397,945) (397,945) (2,235,076) - (2,235,076)
	22,426,347(21,036,615) 1,389,732

The accompanying notes form part of these financial statements.

6

Continuation Investments Limited

ABN 91 106 854 175

Statement of Cash Flows

For the Half-Year Ended 31 December 2011

CASH FROM OPERATING ACTIVITIES: Proceeds from sale of trading portfolio Payments for purchase of trading portfolio Dividends received Interest received Other revenue Management fees paid Directors fees paid Other expenses paid Net cash provided by (used in) operating activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from borrowings Share buy-back payment Capital return payment Dividends paid Net cash used by financing activities Net increase (decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of period Cash and cash equivalents at end of financial period	Half-year ended 31 December 2011 $ Half-year ended 31 December 2010 $ 3,494,760 86,157,521 - (1,713,210) 42,913 638,421 34,086 357,336 250 - - (162,703) (25,047) (72,852) (235,290) (429,114)
	3,311,672 84,775,399
	239,426 - (2,235,076) - - (96,587,286) - (1,372,268)
	**(1,995,650) ** (97,959,554)
	1,316,022(13,184,155) 307,549 15,723,404
	1,623,571 2,539,249

The accompanying notes form part of these financial statements.

7

Continuation Investments Limited

ABN 91 106 854 175

Notes to the Financial Statements

For the Half-Year Ended 31 December 2011

1 Statement of Significant Accounting Policies

Basis of preparation

The half-year financial statements are a general purpose financial report prepared in accordance with the requirements of the Corprations Act 2001 and the Australian Accounting Standard AASB 134: Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards.

It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2011 and any public announcements made by the company during the half-year in accordance with any continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the company and are consistent with those applied in the 30 June 2011 annual report, unless otherwise stated.

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

The directors revalue the trading portfolio on a monthly basis. Apart from this policy, the accounts have been prepared on an accruals basis and is based on historical costs.

Adoption of New and Revised Accounting Standards

The company has adopted the following amendments issued by the Australian Accounting Standards Board, which are effective for annual reporting periods beginning on or after 1 January 2011.

• (i) Revised AASB 124 Related Party Disclosures and AASB 2009-12 Amendments to Australian Accounting Standards (effective 1 January 2011)

In December 2009 the AASB issued a revised AASB 124 Related Party Disclosures. It is effective for accounting periods beginning on or after 1 January 2011 and must be applied retrospectively. The amendment removes the requirement for government-related entities to disclose details of all transactions with the government and other governments-related entities and clarifies and simplifies the definition of a related party. The company has applied the amended standard from 1 July 2011. The amendment has not had any effect on the company's financial statements.

• (ii) AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets (effective for annual reporting periods beginning on or after 1 July 2011)

• In November 2010, the AASB issued AASB 2010-6 Disclosures on Transfers of Financial Assets which amends AASB 1 First-time Adoption of Australian Accounting and AASB 7 Financial Instruments: Disclosures to introduce additional disclosures in respect of risk exposures arising from transferred financial assets. The amendments will affect particularly entities that sell, factor, securitise, lend or otherwise transfer financial assets to other parties. The amendments have not had any impact on the company's disclosures. The company has applied the amended standard from 1 July 2011.

• (iii) Amendments to AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (effective for annual reporting periods beginning on or after 1 July 2010 / 1 January 2011)

• In June 2010, the AASB made a number of amendments to Australian Accounting Standards as a result of the IASB's annual improvements project. No adjustments have been necessary as a result of applying the revised rules.

8

Continuation Investments Limited ABN 91 106 854 175

Notes to the Financial Statements

For the Half-Year Ended 31 December 2011

1 Statement of Significant Accounting Policies continued

Trading Portfolio

(i) Classification

The trading portfolio comprises securities held for short term trading purposes. The purchase and the sale of securities are accounted for at the date of trade.

Securities in the trading portfolio are classified as "assets measured at fair value through the profit or loss statement."

(ii) Valuation and Recognition of Trading Portfolio

Financial instruments are initially measured at fair value on trade dates which excludes transaction costs, where the contractual rights or obligations exist. All securities in the trading portfolio are revalued to market values on a monthly basis.

Increments and decrements on the value of the securities in the trading portfolio are taken directly through the Statement of Comprehensive Income in the period in which they arise.

(iii) Income from Holding of Securities

Distributions relating to listed securities are recognised as income when those securities are quoted in the market on an ex-distribution basis unless the distributions are capital returns on ordinary shares in which case the amount of the distribution is treated as an adjustment to the carrying value of the shares.

(iv) Determination of Fair Value

AIFRS defines fair value for the purpose of valuing holdings of securities that are listed or traded on an exchange to be based on quoted "bid" prices for securities prevailing at the close of business on the statement of financial position date.

AASB 139 and AG72 state that the current bid price is usually the appropriate price to be used in measuring the fair value of actively traded financial assets. Financial assets should be valued at their fair values without any deduction for transaction costs that may be incurred on sale or other disposal. Certain costs in acquiring investments, such as brokerage and stamp duty, are expensed in the Statement of Comprehensive Income.

Taxation

The income tax expense/(benefit) for the period comprises current income tax expense/(benefit) and deferred tax expense/(benefit).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities/(assets) are therefore measured at the amounts expected to be paid to/(recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the period as well as unused tax losses. Current and deferred income tax expense/(benefit) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. 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.

9

Continuation Investments Limited ABN 91 106 854 175

Notes to the Financial Statements

For the Half-Year Ended 31 December 2011

1 Statement of Significant Accounting Policies continued

Taxation continued

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective assets and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

A tax provision is made for unrealised gain or loss on securities valued at fair value through the Statement of Comprehensive Income. Where the company disposes of such securities, tax is calculated on gains made according to the particular parcels allocated to the sale for the tax purposes offset against any losses carried forward.

10

Continuation Investments Limited

ABN 91 106 854 175

Notes to the Financial Statements

For the Half-Year Ended 31 December 2011

2 Equity Securities

Contributed Equity Ordinary shares Opening balance Share buyback	31 December 2011 31 December 2011 30 June 2011 30 June 2011 No. $ No. $ 1,947,586 22,426,347 5,177,466 24,661,423
	No. $ No. $ 5,177,466 24,661,423 5,489,073 24,963,732 (3,229,880) (2,235,076) (311,607) (302,309)
	1,947,586 22,426,347 5,177,466 24,661,423

3 Income Tax Expense

The components of tax expense comprise:

Current income tax expense Deferred Tax Asset write down Earnings per Share Weighted average number of ordinary shares outstanding during the year used in calculating basic earnings per share	Half-year ended 31 December 2011 $ Half-year ended 31 December 2010 $ - 1,565,083 - 6,948,082
	- 8,513,165
	Half-year ended 31 December 2011 No. Half-year ended 31 December 2010 No.
	4,001,368 44,023,345

4 Earnings per Share

Diluted earnings per share is equivalent to basic earnings per share. The company has no securities outstanding which have the potential to convert to ordinary shares and dilute the basic earnings per share.

5 Segment Information

The company has only one reportable segment. The company operates predominantly in Australia and in one industry being the securities investment industry, deriving revenue from dividend income, interest income and from the sale of its portfolio.

6 Contingent Liabilities and Contingent Assets

The directors are not aware of any potential liabilities or claims against the company as at the date of the Directors' Report.

11

Continuation Investments Limited ABN 91 106 854 175

Notes to the Financial Statements

For the Half-Year Ended 31 December 2011

7 Events Occuring After the Statement of Financial Position Date

The financial statements were authorised for issue on 17 February 2012 by the board of directors.

No matters or circumstances have arisen since the end of the financial 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 future financial periods.

12

Continuation Investments Limited ABN 91 106 854 175

Directors' Declaration

The directors of the company declare that:

1. The interim financial statements and notes, as set out on pages 4 to 12 are in accordance with the Corporations Act 2001 , including:

2. (a) complying with Accounting Standard AASB 134: Interim Financial Reporting; and

3. (b) give a true and fair view of the company's financial position as at 31 December 2011 and of its performance for the half-year ended on that date.

4. In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

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

==> picture [132 x 57] intentionally omitted <==

Andrew Brown Executive Chairman

Dated: 17 February 2012

13

Continuation Investments Limited ABN 91 106 854 175

Independent Auditor's Review Report to the members of Continuation Investments Limited

14

Continuation Investments Limited ABN 91 106 854 175

Independent Auditor's Review Report to the members of Continuation Investments Limited (continued)

15