TITANIUM SANDS LIMITED - Annual Report 2016

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ABN!65!009!131!533!

WINDIMURRA!VANADIUM!LIMITED!!

Annual!Financial!Report! For!the!year!ended!30!June!2016!

Contents!

ontents
CorporateInformation	Page 3
Directors’report	4
Statementofprofitorlossandothercomprehensiveincome	19
Statementoffinancialposition	20
Statementofchangesinequity	21
Statementsofcashflows	22
Notestothefinancialstatements	23
Directors’declaration	41
Auditor’sreport	42
Leadauditor’sindependencedeclaration	44
Additionalshareholderinformation	45

Corporate!Information!

Directors	JamesSearle(appointed2March2016)
JasonFerris
LeeChristensen
GrahamChapman
RyanRockwood(resigned24November2015)
CompanySecretary	MsNickiFarley
RegisteredOffice	Level24,44StGeorgesTerrace
andPrincipalPlaceof	PERTHWA6000
Business	Telephone:(08)62115099Facsimile:(08)92188875
ShareRegistry	ComputershareInvestorServicesPtyLimited
Level11
1782StGeorgesTerrace
PERTHWA6000
Website	www.windimurravanadium.com.au
PlaceofIncorporation	WesternAustralia
Auditors	BDOAudit(WA)PtyLtd
38StationStreet
SubiacoWA6008
Solicitors	PriceSierakowskiCorporate
Level24,44StGeorgesTerrace
PERTHWA6000
Telephone:(08)62115099Facsimile:(08)92188875
Bankers	SuncorpBank
	41[43StGeorgesTerrace
	PERTHWA6000 NationalAustraliaBank
	100StGeorgesTerrace
PERTHWA6000 StockExchange ASXLimited
ExchangePlaza
Level40
152[158StGeorgesTerrace
PERTHWA6000
ASXCode	WVL

Windimurra!Vanadium!Limited!! Directors’!report!! For!the!year!ended!30!June!2016!

1.! Directors! The!directors!of!the!Company!at!any!time!during!or!since!the!end!of!the!financial!year!are:! Name,!qualifications! Experience,!special!responsibilities!and!other!directorships! and!independence! status! James!Searle! Dr!Searle!was!appointed!as!a!Director!of!the!Company!on!2!March!2016.! Managing"Director Dr!Searle!has!over!34!years’!experience!in!base!metals,!precious!metals!and!mineral!sand!deposits.!! He! has! led! successful! exploration,! project! development! and! operational! teams! in! Australia,! Africa,! Northern! Europe,! and! Central! Asia.! Dr! Searle! has! a! BSc(Hons)! in! geology! and! a! PhD! from! the! University!of!Western!Australia.!!He!is!a!Member!of!the!Australian!Institute!of!Mining!and!Metallurgy! and! has! 22! years’! experience! in! executive! and! nonexecutive! Director! roles! on! Australian! Stock! Exchange!listed!public!company!boards.!!

Dr!Searle!holds!1,500,000!shares!in!the!Company!as!at!the!date!of!this!report.!

During! the! past! three! years,! Dr! Searle! has! served! as! a! Director! for! the! following! other! listed! companies:! • Kinetiko!Energy!Limited!–!appointed!25!January!2010.! Jason!Ferris! Mr!Ferris!was!appointed!as!a!Director!of!the!Company!on!31!July!2014.! Non/Executive" Director Mr!Ferris!is!an!experienced!financial!services!professional!having!worked!in!financial!services,!property!! and! corporate! finance! industries! for! more! than! 25! years.! Mr! Ferris! currently! serves! as! Executive! Chairman!of!G8!Communications!and!is!an!experienced!company!director!having!served!on!the!board! of! numerous! public! and! private! companies! in! Australia,! South! Africa! and! United! Kingdom.! He! is! a! Fellow!of!the!Australian!Institute!of!Management!(FAIM)!and!is!a!Member!of!the!Australian!Institute!of! Company!Directors!(MAICD).!He!has!also!facilitated!many!joint!venture!opportunities!in!both!property,! tech!and!mining!sectors.!

Mr!Ferris!holds!1,000,000!shares!in!the!Company!as!at!the!date!of!this!report.! During!the!past!three!years,!Mr!Ferris!has!served!as!a!Director!for!the!following!other!listed!companies:! • Diploma!Group!Limited!–!appointed!30!March!2015.! • G8!Communications!Limited!(formerly!Leopard!Resources!Limited)!–!appointed!28!April!2015.!! Lee!Christensen! Mr!Christensen!was!appointed!as!a!Director!of!the!Company!on!16!April!2015.!! Non/Executive" Director"and"Chairman Mr! Christensen! is! a! lawyer! and! senior! partner! at! Gadens! Perth,! specialising! in! dispute! resolution,! insolvency! and! restructures.!! He! has! many! years! of! commercial! litigation! and! insolvency! law! experience!having!acted!in!major!insolvencies!ranging!from!Rothwells,!Bond!Corporation,!Bell!Group! to!Great!Southern!and!Griffin!Coal.!!His!in[depth!understanding!and!proven!application!of!Insolvency! issues!sees!him!regularly!advising!external!administrators,!trustees,!creditors!and!bankrupts!on!all!of! its!ramifications.!

Mr!Christensen!holds!3,660,000!shares!in!the!Company!as!at!the!date!of!this!report.!

During!the!past!three!years,!Mr!Christensen!has!not!served!as!a!Director!of!any!other!listed!company.!

Windimurra!Vanadium!Limited!! Directors’!report!! For!the!year!ended!30!June!2016!

Directors!(continued)!

1.! Directors!(continued)! Name,!qualifications! Experience,!special!responsibilities!and!other!directorships! and!independence! status! Graham!Chapman! Mr!Chapman!was!appointed!as!a!Director!of!the!Company!on!21!January!2015.! Non/Executive" Director Mr!Chapman,!a!geologist!by!profession,!has!over!35!years’!experience!in!mining!and!has!lived!and!worked!in!a! number! of! countries,! including! South! Africa,! Indonesia,! Australia,! Russia,! Colombia! and! India.!! He! was! Vice! President!Strategy!in!the!newly!formed!BHP!Billiton.!!From!2002!to!2011!he!formed!and!led!an!energyLfocussed! consulting!company!based!in!UK,!and!was!Vice!Chairman!of!the!UN!ECE!Coal!Group!of!Experts!Committee!in! 2008.!He!holds!an!MBA,!B.Sc!(Hons)!and!is!a!Fellow!of!the!Geological!Society,!London.!Mr!Chapman!holds!no! shares!in!the!Company!as!at!the!date!of!this!report.!

During! the! past! three! years,! Mr! Chapman! has! served! as! a! Director! for! the! following! other! listed! companies:! • G8!Communications!Limited!(formerly!Leopard!Resources!Limited)!–!resigned!18!January!2016.!! Ryan!Rockwood! Mr!Rockwood!was!appointed!as!a!Director!of!the!Company!on!21!January!2015!and!resigned!on!24! Non/Executive" November!2015.!! Director Mr!Rockwood!is!an!experienced!mining!sector!professional!and!currently!serves!as!an!executive!and!founding! director!of!ASX!listed!Lemur!Resources!Limited.!PreL2007,!he!spent!many!years!in!operations!management!for! the!leading!miners,!including!BHP!Billiton!and!Rio!Tinto.!His!international!experience!includes!living!and!working! in! the! UK,! USA,! Australia,! South! Africa! and! South! East! Asia.! Mr! Rockwood! holds! a! First! Class! Degree! in! Engineering!and!a!First!Class!Masters!in!Manufacturing!and!Management!in!1999!both!from!the!University!of! Cambridge.!!Ryan!is!a!Sri!Lankan!national.!Mr!Rockwood!holds!no!shares!in!the!Company!as!at!the!date!of! this!report.!

During! the! past! three! years,! Mr! Rockwood! has! served! as! a! Director! for! the! following! other! listed! companies:!

Lemur!Resources!Limited–!appointed!on!10!February!2011.!

2.! Company!Secretary!

Ms!Nicki!Farley!was!appointed!to!the!position!of!company!secretary!on!7!November!2012.!Ms!Farley!holds!a!Bachelor!of!Laws! and!Arts!from!the!University!of!Western!Australia!and!has!over!10!years!of!experience!working!within!the!corporate!advisory! area! providing! advice! in! relation! to! capital! raisings,! corporate! and! securities! laws,! mergers! and! acquisitions! and! general! commercial!transactions.!!Ms!Farley!has!also!held!a!number!of!company!secretarial!roles!for!ASX!listed!companies.!

3.! Directors’!meetings!

The!number!of!meetings!of!the!Company’s!Directors!held!during!the!year!ended!30!June!2016,!whilst!each!director!was!in!office,! and!the!number!of!meetings!attended!by!each!Director,!were:!

Director	BoardofDirectors’Meetings	BoardofDirectors’Meetings
	No.eligibletoattend	No.attended
JamesSearle1	[	[
JasonFerris	1	1
LeeChristensen	1	1
GrahamChapman	1	1
RyanRockwood2	1	1
1JamesSearlewasappointedasaDirectoronthe2ndofMarch2016.

2!Ryan!Rockwood!resigned!on!the!24th!of!November!2015.!

The!Board!of!Directors!also!approved!four!(4)!circular!resolutions!during!the!year!ended!30!June!2016!which!were!signed!by!all! Directors!of!the!Company.!

Windimurra!Vanadium!Limited!! Directors’!report!(continued)! For!the!year!ended!30!June!2016

4.! Principal!activities!

During! the! year,! the! Company’s! principal! activities! are! mineral! exploration.! In! addition,! the! Company! was! in! the! process! of! acquiring!a!second!project!located!in!Sri!Lanka.!

5.! Operating!and!financial!review!

The!net!loss!of!the!Company!for!the!financial!year!ended!30!June!2016!amounted!to!$1,025,993!(2015:!loss!$275,279).! The!current!year!loss!is!mainly!attributable!to!increased!exploration!and!geology!costs!and!impairment!of!the!Company’s!tenement! M58/272.!The!prior!year!loss!was!mainly!attributable!to!the!due!diligence!costs!incurred!on!the!Sri!Lankan!projects!and!consultancy! fees!during!the!year.!!

The!net!asset!of!the!Company!for!the!financial!year!ended!30!June!2016!amount!to!$320,672!(2015:!net!assets!$1,166,665).!

History,!Review!of!Operations!and!Subsequent!Events!

Windimurra!Project!

The! Company! has! a! 100%! interest! in! the! Western! Australian! mining! lease! M58/272! ( Windimurra! Tenement )! located! in! the! Murchison!Goldfield!in!Western!Australia!which!was!granted!on!22!May!2014.!!Subsequent!to!the!30!June!2016!and!following!a! review!of!the!Windimurra!Tenement,!the!board!resolved!to!surrender!the!tenement.!

Sri!Lankan!Mineral!Sands!Project!

During!the!year!ending!30!June!2016,!the!Company!progressed!its!transaction!for!the!proposed!acquisition!of!100%!of!the!issued! capital!of!Srinel!Holdings!Limited!(“ Srinel ”)!from!Cuprum!Holdings!Limited!(“ Cuprum ”).!!Srinel!is!an!unlisted!company!registered! in!Mauritius!and,!via!its!subsidiaries,!owned!13!exploration!licenses!over!348!square!kilometres!in!various!coastal!districts!of!Sri! Lanka!that!are!prospective!for!mineral!sands.!

Hand! and! power! auger! drilling! undertaken! in! November! and! December! at! Mannar! by! the! project! vendor! Srinel! Holdings! Ltd! demonstrated!that!heavy!mineral!concentrations!extend!inland!from!the!inferred!mineral!resource!previously!reported[1] .!Analysis! of!these!results!and!land!form!analysis!by!the!Company!has!defined!a!much!expanded!and!prospective!target!corridor!of!42km[2] extending!across!Mannar!Island!and!linking!two!areas!of!high!grade!ilmenite!and!leucoxene!mineralisation.!!

Subsequent!to!the!30!June!2016,!the!Company!reported!on!the!12!September!drilling!undertaken!in!the!prospective!corridor!by! the!project!vendor!Srinel.!Hand!auger!drilling!of!818!holes!in!the!corridor!found!visual!indications!of!heavy!mineral!concentrations! over!an!area!in!excess!of!20km[2] .!Srinel!will!continue!drilling!until!it!has!completed!a!first!pass!auger!drilling!coverage!on!the! prospective! corridor! on! a! line! spacing! of! 800m! and! drill! holes! separations! of! 50! to! 100m.! Samples! from! the! drilling! will! be! consigned!for!laboratory!analysis!after!the!conclusion!of!the!program.!

1 An"initial"JORC"inferred"mineral"resource"of"10.3"Mt"with"total"heavy"mineral"(THM)"of"11.7%"was"reported"in"full"to"the"Australian"Securities" Exchange"on"the"22"April"2015.This"resource"was"based"on"an"historical"drill"hole"data"base"of"785"auger"drill"holes"and"from"the"115"holes"drilled" in"early"2015."The"drilling"and"the"defined"resource"envelope"was"largely"confined"to"within"150m"of"the"Mannar"Island"shoreline."The"Company" confirms"that"this"resource"statement"remains"current"in"regards"to"the"areas"covered"by"the"drilling"used"in"the"resource"model."

Except"where"indicated,"exploration"results"above"have"been"compiled"by"James"Searle"BSc"(hons),"PhD,"a"Member"of"the"Australian"Institute"of" Mining"and"Metallurgy,"with"over"34"years"experience"in"metallic"and"energy"minerals"exploration"and"development,"and"as"such"has" sufficient" experience" which" is" relevant" to" the"style"of"mineralisation"and"type"of"deposits"under"consideration"as" a" Competent" Person" as" defined" in" the" 2012" Edition" of" the" “Australasian"Code"for"Reporting"of"Exploration"Results,"Mineral"Resources"and"Ore"Reserves”."Dr"Searle"is"the"Managing" Director"of"Windimurra"Vanadium"Limited"and"consents"to"the"inclusion"of"this"technical"information"in"the"format"and"context"in"which"it"appears."

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

History,!Review!of!Operations!and!Subsequent!Events!(continued)!

Sri!Lankan!Project!–!Option!Agreement!(continued)!

On!the!29!January!2016,!the!Company!announced!that!the!parties!had!entered!into!an!Amended!and!Restated!Option!Deed! (“ Amended! Option! Deed ”)! to! include! an! expanded! project! area,! as! well! as! to! revise! the! consideration! payable! to! Cuprum! pursuant!to!the!Original!Deed.!

Srinel!has!subsequently!re[structured!the!mining!tenements!held!by!its!subsidiaries!and!Srinel,!via!its!subsidiaries,!now!holds! exploration! licences! and! applications! for! exploration! licences! over! the! 348! square! kilometres! previously! contemplated! by! the! Original!Option!Deed,!together!with!an!application!for!an!exploration!licence!over!a!new!42!square!kilometre!area!on!Mannar! Island,!Sri!Lanka!(collectively,!the!“ Tenements ”).!

The!revised!consideration!payable!to!Cuprum!under!the!Amended!Option!Deed!was!as!follows:!

(a)! issue!200,000,000!fully!paid!ordinary!shares!in!the!Company!to!Cuprum!upon!the!satisfaction!of!Milestone!1j!
(b)! issue!200,000,000!fully!paid!ordinary!shares!in!the!Company!to!Cuprum!upon!the!satisfaction!of!Milestone!2j!!
(c)! reimburse!expenditure!reasonably!incurred!by!Cuprum!in!applying!for,!managing!and!developing!the!Tenements! from!1!January!2014!onwards!to!Cuprumj!
(d)! pay!USD$500,000!to!Cuprum!upon!satisfaction!of!Milestone!3j!and!
(e)! pay!USD$2,000,000!to!Cuprum!upon!satisfaction!of!Milestone!4.!

As!announced!on!2!March!2016,!to!secure!the!expanded!project!area!an!additional!$50,000!option!fee!has!been!paid!to!Cuprum.!! In!addition,!it!is!agreed!that!the!400!million!Consideration!Shares!to!be!issued!by!the!Company!to!Cuprum!under!the!Amended! Option!Deed!be!reduced!by!the!number!of!Shares!having!a!value!of!$60,000!based!the!volume!weighted!average!price!for!the! Company's!shares!over!the!5!trading!days!immediately!before!the!date!of!the!General!Meeting!of!Shareholders!to!approve!the! Acquisition.!

Completion!of!the!Acquisition!under!the!Amended!Option!Deed!remains!conditional!upon!the!following!conditions!precedent!being! satisfied:!

(a)! the!Company!obtaining!all!necessary!shareholder!and!regulatory!approvals!requiredj!
(b)! no!material!adverse!changes!in!respect!of!the!Tenements!occurringj!
(c)! no!material!default!or!breach!of!the!Amended!Option!Deed!occurringj!and!
(d)! no! legal! proceedings! being! commenced,! pending! or! threatened! by! any! person! to! enjoin,! restrict! of! prohibit! the! completion!of!the!Acquisition.!

Placement!

On!11!February!2016!the!Company!announced!it!had!completed!a!placement!raising!$180,000!issuing!25,714,289!at!$0.007!per! share.!!Funds!raised!were!used!to!provide!additional!working!capital.!

Board!Changes!

On!24!November!2015,!Mr!Ryan!Rockwood!resigned!as!a!non[executive!director!of!the!Company.!

On! 3! March! 2016! the! Company! announced! the! appointment! of! Dr! James! Searle! as! Managing! Director! of! the! Company.! Dr! Searle’s!appointment!strategically!strengthens!the!Company’s!geological!resources!as!it!seeks!to!fast!track!further!exploration!of! the!Mannar!Island!project!in!Sri!Lanka.!

Windimurra!Vanadium!Limited! Directors’!report!(continued)! For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement

The!Board!is!responsible!for!establishing!the!Company’s!corporate!governance!framework,!the!key!features!of!which!are!set!out! below.! In! establishing! its! corporate! governance! framework,! the! Board! has! referred! to! the! 3[rd] ! edition! of! the! ASX! Corporate! Governance!Councils’!Corporate!Governance!Principles!and!Recommendations.

In!accordance!with!ASX!Listing!Rule!1.1!Condition!13,!the!corporate!governance!statement!discloses!the!extent!to!which!the! Company!follows!the!recommendations. !The!Company!will!follow!each!recommendation!where!the!Board!has!considered!the! recommendation! to! be! an! appropriate! benchmark! for! its! corporate! governance! practices.! Where! the! Company’s! corporate! governance!practices!will!follow!a!recommendation,!the!Board!has!made!appropriate!statements!reporting!on!the!adoption!of! the!recommendation.!In!compliance!with!the!“if!not,!why!not”!reporting!regime,!where,!after!due!consideration,!the!Company’s! corporate! governance! practices! will! not! follow! a! recommendation,! the! Board! has! explained! its! reasons! for! not! following! the! recommendation! and! disclosed! what,! if! any,! alternative! practices! the! Company! will! adopt! instead! of! those! in! the! recommendation.!

The! following! governance[related! documents! can! be! found! on! the! Company’s! website! at! www.windimurravanadium.com.au,! under!the!section!marked!“Corporate!Governance”:

(a)! Board!Charterj! (b)! Board!Performance!Evaluation!Policyj!
(c)! Code!of!Conductj!
(d)! Audit!Committee!Charterj!
(e)! Remuneration!and!Nomination!Committee!Charterj!
(f)! Security!Trading!Policyj!
(g)! Continuous!Disclosure!Policyj!
(h)! Shareholder!Communication!and!Investor!Relations!Policyj!
(i)! Risk!Committee!Charterj!
(j)! Risk!Management!Policyj!and!
(k)! Diversity!Policy.!

Principle!1:!Lay!solid!foundations!for!management!and!oversight!

Recommendation+1.1+

The! Company! has! established! the! respective! roles! and! responsibilities! of! its! Board! and! management,! and! those! matters! expressly!reserved!to!the!Board!and!those!delegated!to!management,!and!has!documented!this!in!its!Board!Charter. The!responsibilities!of!the!Board!include!but!are!not!limited!to:

(a)! setting!and!reviewing!strategic!direction!and!planningj!
(b)! reviewing!financial!and!operational!performancej!
(c)! identifying!principal!risks!and!reviewing!risk!management!strategiesj!and!
(d)! considering!and!reviewing!significant!capital!investments!and!material!transactions.!

In! exercising! its! responsibilities,! the! Board! recognises! that! there! are! many! stakeholders! in! the! operations! of! the! Company,! including!employees,!shareholders,!co[ventures,!the!government!and!the!community.

The! Board! has! delegated! responsibility! for! the! business! operations! of! the! Company! to! the! Chief! Executive! Officer! and! the! management!team.!!The!management!team,!led!by!the!Chief!Executive!Officer!is!accountable!to!the!Board.

Recommendation+1.2+

The!Company!undertakes!appropriate!checks!before!appointing!a!person,!or!putting!forward!to!shareholders!a!candidate!for! election!as!a!director!and!provides!shareholders!with!all!material!information!in!its!possession!relevant!to!a!decision!on!whether! or!not!to!elect!a!director.

The!checks!which!are!undertaken,!and!the!information!provided!to!shareholders,!are!set!out!in!the!Company’s!Remuneration! and!Nomination!Committee!Charter.

Recommendation+1.3+

The!Company!has!a!written!agreement!with!each!of!the!Directors!and!the!Incoming!Directors!and!senior!executives!setting!out! the!terms!of!their!appointment.!!The!material!terms!of!any!employment,!service!or!consultancy!agreement!the!Company,!or!any! of!its!child!entities,!has!entered!into!with!its!Chief!Executive!Officer,!any!of!its!directors,!and!any!other!person!or!entity!who!is!a! related!party!of!the!Chief!Executive!Officer!or!any!of!its!directors!will!be!disclosed!in!accordance!with!ASX!Listing!Rule!3.16.4! (taking!into!consideration!the!exclusions!from!disclosure!outlined!in!that!rule).

Windimurra!Vanadium!Limited!! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement!(continued)

Recommendation+1.4+

The!Company!Secretary!is!accountable!directly!to!the!Board,!through!the!Chair,!on!all!matters!to!do!with!the!proper!functioning!of! the!Board.!!The!Company!Secretary!is!responsible!for!the!application!of!best!practice!in!corporate!governance!and!also!supports! the!effectiveness!of!the!Board!by:

(a)! ensuring!a!good!flow!of!information!between!the!Board,!its!committees,!and!Directorsj!
(b)! monitoring!policies!and!procedures!of!the!Boardj!
(c)! advising!the!Board!through!the!Chairman!of!corporate!governance!policiesj!and!
(d)! conducting!and!reporting!matters!of!the!Board,!including!the!despatch!of!Board!agendas,!briefing!papers!and!minutes.!

Recommendation+1.5+

The!Company!has!a!Diversity!Policy,!the!purpose!of!which!is:

(a)! to!outline!the!Company’s!commitment!to!creating!a!corporate!culture!that!embraces!diversity!and,!in!particular,!focuses! on!the!composition!of!its!Board!and!senior!managementj!and!
(b)! to! provide! a! process! for! the! Board! to! determine! measurable! objectives! and! procedures! which! the! Company! will! implement!and!report!against!to!achieve!its!diversity!goals.!

The!Board!intends!to!set!measurable!objectives!for!achieving!diversity,!specifically!including!gender!diversity!and!will!review!and! report!on!the!effectiveness!and!relevance!of!these!measurable!objectives.!However,!due!to!the!current!size!of!the!Board!and! management,!these!measurable!objectives!have!not!yet!been!set.!

Recommendation+1.6+

The!Chief!Executive!Officer!will!be!responsible!for!evaluating!the!performance!of!the!Company’s!senior!executives!in!accordance! with!the!process!disclosed!in!the!Company’s!Process!for!Performance!Evaluations,!which!is!currently!being!developed!by!the! Board. The!Chair!will!be!responsible!for!evaluating!the!performance!of!the!Company’s!Chief!Executive!Officer!in!accordance!with! the!process!disclosed!in!the!Company’s!Process!for!Performance!Evaluations,!which!is!currently!being!developed!by!the!Board.!! During!the!reporting!period,!an!evaluation!of!the!Chief!Executive!Officer!and!senior!executives!has!taken!place!in!accordance!with! the!Company’s!policy.!

Recommendation+1.7+

The! Chair! will! be! responsible! for! evaluating! the! performance! of! the! Board,! Board! committees! and! individual! directors! in! accordance!with!the!process!disclosed!in!the!Company’s!Board!performance!evaluation!policy. This!policy!is!to!ensure:

(a)! individual!Directors!and!the!Board!as!a!whole!work!efficiently!and!effectively!in!achieving!their!functionsj!
(b)! the! executive! Directors! and! key! executives! execute! the! Company’s! strategy! through! the! efficient! and! effective! implementation!of!the!business!objectivesj!and!
(c)! committees!to!which!the!Board!has!delegated!responsibilities!are!performing!efficiently!and!effectively!in!accordance! with!the!duties!and!responsibilities!set!out!in!the!board!charter.!
(d)! This!policy!will!be!reviewed!annually.!!

During!the!reporting!period,!an!evaluation!of!the!Board,!its!committees!and!individual!directors!has!taken!place!in!accordance!with! the!Company’s!policy.!!!

Principle!2:!Structure!the!board!to!add!value!

Recommendation+2.1+

Due!to!the!size!of!the!Board,!the!Company!does!not!have!a!separate!nomination!committee.!The!roles!and!responsibilities!of!a! nomination!committee!are!currently!undertaken!by!the!Board.

The!duties!of!the!full!Board!in!its!capacity!as!a!nomination!committee!are!set!out!in!the!Company’s!Remuneration!and!Nomination! Committee!Charter!which!is!available!on!the!Company’s!website.

When!the!Board!meets!as!a!remuneration!and!nomination!committee!is!carries!out!those!functions!which!are!delegated!to!it!in!the! Company’s! Remuneration! and! Nomination! Committee! Charter.! Items! that! are! usually! required! to! be! discussed! by! a! Remuneration!and!Nomination!Committee!are!marked!as!separate!agenda!items!at!Board!meetings!when!required.

The!Board!has!adopted!a!Remuneration!and!Nomination!Committee!Charter!which!describes!the!role,!composition,!functions!and! responsibilities!of!a!Nomination!Committee!and!is!disclosed!on!the!Company’s!website.

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement!(continued)

Recommendation+2.2+

The!mix!of!skills!and!diversity!which!the!Board!is!looking!to!achieve!in!its!composition!is:

(a)! a!broad!range!of!business!experiencej!and!
(b)! technical!expertise!and!skills!required!to!discharge!duties.!

Recommendation+2.3+

The! Board! considers! the! independence! of! directors! having! regard! to! the! relationships! listed! in! Box! 2.3! of! the! Principles! and! Recommendations. !Currently!the!Board!is!structured!as!follows:

(a)! Dr!James!Seale!(Managing!Director)!
(b)! Mr!Lee!Christensen!(Chairman)j!
(c)! Mr!Jason!Ferris!(Director)j!and!
(d)! Mr!Graham!Chapman!(Director).!

Mr!Ferris!was!appointed!to!the!Board!on!31!July!2014.!!Mr!Chapman!was!appointed!on!21!January!2015!and!Mr!Christensen!was! appointed!as!Chairman!of!the!Board!on!16!April!2015.!!Dr!Searle!was!subsequently!appointed!to!the!Board!as!Managing!Director! on!2!March!2016.!!Dr!Searle!is!not!considered!to!be!an!independent!director!due!to!his!executive!role!within!the!Company.!!In! addition,! Mr! Ferris! is! also! considered! not! independent! due! to! his! association! with! Cuprum! Holdings! Limited! (and! associated! entities)!with!which!the!Company!has!a!material!contractual!relationship.!!Mr!Christensen!is!considered!an!independent!director!of! the!Company.!

Recommendation+2.4+

Given! the! size! and! nature! of! the! Company,! the! Board! considers! the! composition! of! the! Board! is! appropriate! at! this! stage.!! Accordingly,!the!Board!does!not!have!a!majority!of!independent!directors.!

Recommendation+2.5+

Mr!Christensen!is!an!independent!Chairman!of!the!Board.!

Recommendation+2.6+

It! is! a! policy! of! the! Company,! that! new! Directors! undergo! an! induction! process! in! which! they! are! given! a! full! briefing! on! the! Company.! Where! possible! this! includes! meetings! with! key! executives,! tours! of! the! premises,! an! induction! package! and! presentations.

In!order!to!achieve!continuing!improvement!in!Board!performance,!all!Directors!are!encouraged!to!undergo!continual!professional! development.!Specifically,!Directors!are!provided!with!the!resources!and!training!to!address!skills!gaps!where!they!are!identified.

Principle!3:!Act!ethically!and!responsibly!

Recommendation+3.1+

The!Company!is!committed!to!promoting!good!corporate!conduct!grounded!by!strong!ethics!and!responsibility.!The!Company!has! established!a!Code!of!Conduct!(Code),!which!addresses!matters!relevant!to!the!Company’s!legal!and!ethical!obligations!to!its! stakeholders.!It!may!be!amended!from!time!to!time!by!the!Board,!and!is!disclosed!on!the!Company’s!website.

The!Code!applies!to!all!Directors,!employees,!contractors!and!officers!of!the!Company. The!Code!will!be!formally!reviewed!by!the! Board!each!year.

Principle!4:!Safeguard!integrity!in!corporate!reporting!

Recommendation+4.1+

Due!to!the!size!of!the!Board,!the!Company!does!not!have!a!separate!Audit!Committee.!The!roles!and!responsibilities!of!an!audit! committee!are!undertaken!by!the!Board.

The!full!Board!in!its!capacity!as!the!audit!committee!is!responsible!for!reviewing!the!integrity!of!the!Company’s!financial!reporting! and!overseeing!the!independence!of!the!external!auditors.!The!duties!of!the!full!Board!in!its!capacity!as!the!audit!committee!are! set!out!in!the!Company’s!Audit!Committee!Charter!which!is!available!on!the!Company’s!website.

When!the!Board!meets!as!an!audit!committee!is!carries!out!those!functions!which!are!delegated!to!it!in!the!Company’s!Audit! Committee!Charter.!!Items!that!are!usually!required!to!be!discussed!by!an!Audit!Committee!are!marked!as!separate!agenda!items! at!Board!meetings!when!required.

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement!(continued)

Principle!4:!Safeguard!integrity!in!corporate!reporting!(continued)!

Recommendation+4.1+(continued)

The!Board!is!responsible!for!the!initial!appointment!of!the!external!auditor!and!the!appointment!of!a!new!external!auditor!when! any! vacancy! arises.! Candidates! for! the! position! of! external! auditor! must! demonstrate! complete! independence! from! the! Company!through!the!engagement!period.!The!Board!may!otherwise!select!an!external!auditor!based!on!criteria!relevant!to!the! Company's!business!and!circumstances.!The!performance!of!the!external!auditor!is!reviewed!on!an!annual!basis!by!the!Board.!!

The!Board!has!adopted!an!Audit!Committee!Charter!which!describes!the!role,!composition,!functions!and!responsibilities!of!the! Audit!Committee!and!is!disclosed!on!the!Company’s!website.!!

Recommendation+4.2+

Before!the!Board!approves!the!Company!financial!statements!for!each!financial!period!it!will!receive!from!the!Chief!Executive! Officer!and!the!Chief!Financial!Officer!or!equivalent!a!declaration!that,!in!their!opinion,!the!financial!records!of!the!Company!for! the!relevant!financial!period!have!been!properly!maintained!and!that!the!financial!statements!for!the!relevant!financial!period! comply!with!the!appropriate!accounting!standards!and!give!a!true!and!fair!view!of!the!financial!position!and!performance!of!the! Company!and!the!consolidated!entity!and!that!the!opinion!has!been!formed!on!the!basis!of!a!sound!system!of!risk!management! and!internal!control!which!is!operating!effectively.

Recommendation+4.3+

Under! section! 250RA! of! the! Corporations! Act,! the! Company’s! auditor! is! required! to! attend! the! Company’s! annual! general! meeting!at!which!the!audit!report!is!considered,!and!does!not!arrange!to!be!represented!by!a!person!who!is!a!suitably!qualified! member!of!the!audit!team!that!conducted!the!audit!and!is!in!a!position!to!answer!questions!about!the!audit. !!Each!year,!the! Company! will! write! to! the! Company’s! auditor! to! inform! them! of! the! date! of! the! Company’s! annual! general! meeting.! ! In! accordance!with!section!250S!of!the!Corporations!Act,!at!the!Company’s!annual!general!meeting!where!the!Company’s!auditor! or!their!representative!is!at!the!meeting,!the!Chair!will!allow!a!reasonable!opportunity!for!the!members!as!a!whole!at!the!meeting! to! ask! the! auditor! (or! its! representative)! questions! relevant! to! the! conduct! of! the! auditj! the! preparation! and! content! of! the! auditor’s!reportj!the!accounting!policies!adopted!by!the!Company!in!relation!to!the!preparation!of!the!financial!statementsj!and! the!independence!of!the!auditor!in!relation!to!the!conduct!of!the!audit. !The!Chair!will!also!allow!a!reasonable!opportunity!for!the! auditor!(or!their!representative)!to!answer!written!questions!submitted!to!the!auditor!under!section!250PA!of!the!Corporations! Act.

Principle!5:!Make!timely!and!balanced!disclosure! Recommendation+5.1+

The!Company!is!committed!to:

(a)! ensuring!that!shareholders!and!the!market!are!provided!with!full!and!timely!information!about!its!activitiesj!
(b)! complying!with!the!continuous!disclosure!obligations!contained!in!the!Listing!Rules!and!the!applicable!sections!of!the! Corporations!Actj!and!
(c)! providing!equal!opportunity!for!all!stakeholders!to!receive!externally!available!information!issued!by!the!Company!in!a! timely!manner.!

The!Company!has!adopted!a!Disclosure!Policy,!which!is!disclosed!on!the!Company’s!website.!!The!Disclosure!Policy!sets!out! policies!and!procedures!for!the!Company’s!compliance!with!its!continuous!disclosure!obligations!under!the!ASX!Listing!Rules,! and! addresses! financial! markets! communication,! media! contact! and! continuous! disclosure! issues.! It! forms! part! of! the! Company’s!corporate!policies!and!procedures!and!is!available!to!all!staff.

The!Company!Secretary!manages!the!policy.!The!policy!will!develop!over!time!as!best!practice!and!regulations!change!and! the!Company!Secretary!will!be!responsible!for!communicating!any!amendments.!This!policy!will!be!reviewed!by!the!Board! annually.

Principle!6:!Respect!the!rights!of!security!holders! Recommendation+6.1+

The! Company! provides! information! about! itself! and! its! governance! to! investors! via! its! website! at! www.windimurravanadium.com.au.!!The!Company!is!committed!to!maintaining!a!Company!website!with!general!information! about!the!Company!and!its!operations!and!information!specifically!targeted!at!keeping!the!Company’s!shareholders!informed! about!the!Company.!In!particular,!where!appropriate,!after!confirmation!of!receipt!by!ASX,!the!following!will!be!posted!to!the! Company!website:

(a)! relevant!announcements!made!to!the!market!via!ASXj!
(b)! media!releasesj!
(c)! investment!updatesj!
(d)! Company!presentations!and!media!briefingsj!
(e)! copies!of!press!releases!and!announcements!for!the!preceding!three!yearsj!and!

(f)! copies!of!annual!and!half!yearly!reports!including!financial!statements!for!the!preceding!three!years.!

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement!(continued) Recommendation+6.2+

The!Company!has!a!Shareholder!Communication!and!Investor!Relations!Policy!which!aims!to!ensure!that!Shareholders!are! informed!of!all!major!developments!of!the!Company.!!!The!policy!is!disclosed!on!the!Company’s!website. Information!is!communicated!to!Shareholders!via:

(a)! reports!to!Shareholdersj!
(b)! ASX!announcementsj!
(c)! annual!general!meetingsj!and!
(d)! the!Company!website.!

This!Shareholder!Communication!and!Investor!Relations!policy!will!be!formally!reviewed!by!the!Board!each!year.!While!the! Company! aims! to! provide! sufficient! information! to! Shareholders! about! the! Company! and! its! activities,! it! understands! that! Shareholders! may! have! specific! questions! and! require! additional! information.! To! ensure! that! Shareholders! can! obtain! all! relevant!information!to!assist!them!in!exercising!their!rights!as!Shareholders,!the!Company!has!made!available!a!telephone! number!and!relevant!contact!details!(via!the!website)!for!Shareholders!to!make!their!enquiries.

Recommendation+6.3+

The!Board!encourages!full!participation!of!Shareholders!at!meetings!to!ensure!a!high!level!of!accountability!and!identification! with!the!Company’s!strategies!and!goals. However,!due!to!the!size!and!nature!of!the!Company,!the!Board!does!not!consider! a! policy! outlining! the! policies! and! processes! that! it! has! in! place! to! facilitate! and! encourage! participating! at! meetings! of! shareholders!to!be!appropriate!at!this!stage.

Recommendation+6.4+

Shareholders!are!given!the!option!to!receive!communications!from,!and!send!communication!to,!the!Company!and!its!share! registry!electronically.!!To!ensure!that!shareholders!can!obtain!all!relevant!information!to!assist!them!in!exercising!their!rights! as! shareholders,! the! Company! has! made! available! a! telephone! number! and! relevant! contact! details! (via! the! website)! for! shareholders!to!make!their!enquiries.

Principle!7:!Recognise!and!manage!risk! Recommendation+7.1+

Due! to! the! size! of! the! Board,! the! Company! does! not! have! a! separate! Risk! Committee.! The! Board! is! responsible! for! the! oversight!of!the!Company’s!risk!management!and!control!framework.

When!the!Board!meets!as!a!risk!committee!is!carries!out!those!functions!which!are!delegated!to!it!in!the!Company’s!Risk! Committee!Charter.!Items!that!are!usually!required!to!be!discussed!by!a!Risk!Committee!are!marked!as!separate!agenda! items!at!Board!meetings!when!required.

The!Board!has!adopted!a!Risk!Committee!Charter!which!describes!the!role,!composition,!functions!and!responsibilities!of!the! Risk!Committee!and!is!disclosed!on!the!Company’s!website.

The! Board! has! adopted! a! Risk! Management! Policy,! which! is! disclosed! on! the! Company’s! website.! ! Under! the! policy,! responsibility!and!control!of!risk!management!is!delegated!to!the!appropriate!level!of!management!within!the!Company!with! the!Chief!Executive!Officer!having!ultimate!responsibility!to!the!Board!for!the!risk!management!and!control!framework.

The!risk!management!system!covers:

(a)! operational!riskj!

(b)! financial!reportingj! (c)! compliance!/!regulationsj!and!

(d)! system!/!IT!process!risk.!

A!risk!management!model!is!to!be!developed!and!will!provide!a!framework!for!systematically!understanding!and!identifying! the!types!of!business!risks!threatening!the!Company!as!a!whole,!or!specific!business!activities!within!the!Company.

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement!(continued)

Recommendation+7.2+

The!Board!will!review!the!Company’s!risk!management!framework!annually!to!satisfy!itself!that!it!continues!to!be!sound,!to! determine!whether!there!have!been!any!changes!in!the!material!business!risks!the!Company!faces!and!to!ensure!that!the! Company!is!operating!within!the!risk!appetite!set!by!the!Board.

Arrangements!put!in!place!by!the!Board!to!monitor!risk!management!include,!but!are!not!limited!to:

(a)! monthly!reporting!to!the!Board!in!respect!of!operations!and!the!financial!position!of!the!Companyj!and! (b)! quarterly!rolling!forecasts!prepared.!

Recommendation+7.3+

The!Company!does!not!have,!and!does!not!intend!to!establish,!an!internal!audit!function.!!To!evaluate!and!continually!improve! the!effectiveness!of!the!Company’s!risk!management!and!internal!control!processes,!the!Board!relies!on!ongoing!reporting! and!discussion!of!the!management!of!material!business!risks!as!outlined!in!the!Company’s!Risk!Management!Policy.

Recommendation+7.4+

Given!the!speculative!nature!of!the!Company’s!business,!it!is!subject!to!general!risks!and!certain!specific!risks!as!outlined!in! the!Company’s!Prospectus.!The!Company!has!identified!those!economic,!environmental!and/or!social!sustainability!risks!to! which!it!has!a!material!exposure,!and!disclosed!how!it!intends!to!manage!those!risks.

Principle!8:!Remunerate!fairly!and!responsibly!

Recommendation+8.1+

Due!to!the!size!of!the!Board,!the!Company!does!not!have!a!separate!remuneration!committee.!The!roles!and!responsibilities! of! a! remuneration! committee! are! currently! undertaken! by! the! Board.[! ] The! duties! of! the! full! board! in! its! capacity! as! a! remuneration!committee!are!set!out!in!the!Company’s!Remuneration!and!Nomination!Committee!Charter!which!is!available!on! the!Company’s!website.

When!the!Board!meets!as!a!remuneration!committee!is!carries!out!those!functions!which!are!delegated!to!it!in!the!Company’s! Remuneration! and! Nomination! Committee! Charter.! ! Items! that! are! usually! required! to! be! discussed! by! a! Remuneration! Committee!are!marked!as!separate!agenda!items!at!Board!meetings!when!required.

The!Board!has!adopted!a!Remuneration!and!Nomination!Committee!Charter!which!describes!the!role,!composition,!functions! and!responsibilities!of!the!Remuneration!Committee!and!is!disclosed!on!the!Company’s!website.

Recommendation+8.2+

Details!of!the!Company’s!policies!on!remuneration!will!be!set!out!in!the!Company’s!“Remuneration!Report”!in!each!Annual! Report!published!by!the!Company.!!This!disclosure!will!include!a!summary!of!the!Company’s!policies!regarding!the!deferral!of! performance[based!remuneration!and!the!reduction,!cancellation!or!claw[back!of!the!performance[based!remuneration!in!the! event!of!serious!misconduct!or!a!material!misstatement!in!the!Company’s!financial!statements.

Recommendation+8.3+

The!Company!does!not!currently!have!an!equity[based!remuneration!scheme.!!

Security!Trading!Policy!!

In!accordance!with!ASX!Listing!Rule!12.9,!the!Company!has!adopted!a!trading!policy!which!sets!out!the!following!information: (a)! closed! periods! in! which! directors,! employees! and! contractors! of! the! Company! must! not! deal! in! the! Company’s! securitiesj!

(b)! trading!in!the!Company’s!securities!which!is!not!subject!to!the!Company’s!trading!policyj!and! (c)! the!procedures!for!obtaining!written!clearance!for!trading!in!exceptional!circumstances.!

The!Company’s!Security!Trading!Policy!is!available!on!the!Company’s!website.

Windimurra!Vanadium!Limited!! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

7! Remuneration!report!(audited)!

7.1! Principles!of!compensation!–!audited!

This! report! outlines! the! remuneration! arrangements! in! place! for! directors! of! Windimurra! Vanadium! Limited! in! accordance! with! the! requirements! of! the! Corporations! Act! 2001! and! its! Regulations.! For! the! purpose! of! this! annual!financial!report,!Key!Management!Personnel!(KMP)!of!the!Company!are!defined!as!those!persons!having! authority!and!responsibility!for!planning,!directing!and!controlling!the!major!activities!of!the!Company,!directly!or! indirectly.!

Details!of!Key!Management!Personnel!during!the!year!ended!30!June!2016!

James!Searle!(appointed!2!March!2016)!

Jason!Ferris!!

Lee!Christensen!!

Graham!Chapman!!

Ryan!Rockwood!(resigned!24!November!2015)!

Remuneration!Policy!

The!Board!is!responsible!for!determining!and!reviewing!compensation!arrangements!for!the!Directors.!The!Board! assesses!the!appropriateness!of!the!nature!and!amount!of!emoluments!of!such!officers!on!a!periodic!basis!by! reference!to!relevant!employment!market!conditions!with!the!overall!objective!of!ensuring!maximum!stakeholder! benefit!from!the!retention!of!a!high!quality!board!and!executive!team.!The!Company!does!not!link!the!nature!and! amount!of!the!emoluments!of!such!officers!to!the!Company’s!financial!or!operational!performance.!The!expected! outcome!of!this!remuneration!structure!is!to!retain!and!motivate!Directors.

7.2


7.2	RelationshipbetweentheRemunerationPolicyandCompanyPerformance
	30June2016	30June2015	30June2014	30June2013	30June2012
	$	$	$	$	$
Revenue	[	[	[	[	3,585
Basiclosspershare(cents)	(0.20)	(0.07)	(0.70)	(1.73)	(0.05)
Dilutedlosspershare(cents)	(0.20)	(0.07)	(0.70)	(1.73)	(0.05)

7.3! Directors’!and!executive!officers’!remuneration!c!audited!

In!January!2013,!the!Board!approved!the!remuneration!of!directorsj!being!$5,000!per!month!for!the!Chairman! and!$4,000!per!month!for!each!other!Director!for!their!services,!commencing!from!1!January!2014.

Details!of!the!nature!and!amount!of!each!major!element!of!the!remuneration!for!the!year!ended!30!June!2016!and!30!June! 2015!of!each!director!of!the!Company!receiving!the!highest!remuneration!and!other!key!management!personnel!are:

Post!

					Post
					employment	Sharecbased	Proportionof
		Shortcterm			benefits	payments	remuneration
			Other	Superannuac			performance
2016	Salary&fees	Bonus			tion	Options	Total	related
Directors	$	$	$		$	$	$	%
*Executivedirectors* DrJamesSearle1 19,600 [ [ [ [ 19,600 [
*Non>executivedirectors* MrJasonFerris2 48,000 [ [ [ [ 48,000 [
MrLeeChristensen	60,000	[		[	[	[	60,000	[
MrGrahamChapman3	28,000	[		[	[	[	28,000	[
MrRyanRockwood4	19,200	[		[	[	[	19,200	[
Total	174,800	c		c	c	c	174,800	c

1!Dr!Searle’s!director!fees!are!paid!to!Earthsciences!Pty!Ltd,!of!which!Dr!Searle!is!a!Director.!Dr!James!was!appointed!during!the!year.! 2!Mr!Ferris’!director!fees!are!paid!to!J2J!Investments!Pty!Ltd,!of!which!Mr!Ferris!is!a!Director.!

3!Mr!Chapman’s!director!fees!are!paid!to!Badger!Resources!Limited,!of!which!Mr!Chapman!is!a!Director.!

4!Mr!Rockwood’s!director!fees!are!paid!directly!to!Mr!Rockwood.!Mr!Rockwood!resigned!on!24!November!2015.

Windimurra!Vanadium!Limited!! Directors’!report!(continued)! For!the!year!ended!30!June!2016!

7.3! Directors’!and!executive!officers’!remuneration!(continued)

					Post
					employment	Sharecbased	Proportionof
		Shortcterm			benefits	payments	remuneration
2015	Salary&fees	Bonus	Other	Superannuac tion Options			Total performance related
Directors	$	$	$		$	$	$	%
*Non>executive* *directors*
MrJasonFerris2	44,000	[		[	[	[	44,000	[
MrPaulPrice	47,500	[		[	[	[	47,500	[
MrKCOng	26,838	[		[	[	[	26,838	[
MsPaulaCowan	4,000	[		[	[	[	4,000	[
MrGrahamChapman	21,290	[		[	[	[	21,290	[
MrLeeChristensen	12,500	[		[	[	[	12,500	[
MrRyanRockwood	21,290	[		[	[	[	21,290	[
Total	177,418	c		c	c	c	177,418	c

7.3.1! Loans!to!Directors!

There!were!no!loans!to!directors!during!the!financial!year!ending!30!June!2016!(2015:!$nil)!

7.3.2! Other!Transactions!with!Key!Management!Personnel!

A! number! of! key! management! personnel,! or! their! related! parties,! hold! positions! in! other! entities! that! result! in! them! having! control!or!significant!influence!over!the!financial!or!operating!policies!of!those!entities.!A!number!of!these!entities!transacted! with!the!Company!in!the!reporting!period.!These!are!as!follows!on!the!following!page.!

Consultancy!services:!

Jason!Ferris!is!a!Director!of!J2J!Investments!Pty!Ltd!(“J2J”),!which!provided!the!Company!with!consultancy!services.!These! services!provided!were!based!upon!normal!commercial!terms!and!conditions!no!more!favourable!than!those!available!to!other! parties.!The!amount!incurred!for!the!year!ended!30!June!2016!was!$72,000!(2015:!$36,000).!As!at!30!June!2016,!the!amount! payable!to!J2J!is!$30,000!(2015:!$6,000).!

Dr! James! Searle! is! a! Director! of! Earthsciences! Pty! Ltd! (“Earthsciences”),! which! provided! the! Company! with! consultancy! services.!These!services!provided!were!based!upon!normal!commercial!terms!and!conditions!no!more!favourable!than!those! available!to!other!parties.!The!amount!incurred!for!the!year!ended!30!June!2016!was!$40,755!(2015:!$nil).!As!at!30!June!2016,! the!amount!payable!to!Earthsciences!is!$17,300!(2015:!$nil).!

Windimurra!Vanadium!Limited!! Directors’!report!(continued)! For!the!year!ended!30!June!2016!

7.3.3! Directors’!interests!in!shares!

Fully! paid! ordinary! shares! issued! by! Windimurra! Vanadium! Limited! to! Key! Management! Personnel! during!the!year!and!as!at!30!June!2016!are!as!follows:!

	Balanceat	Allotmentof	Netother	Balanceat
2016	1July2015	Shares	changes	30June2016
DIRECTORS
MrJasonFerris	1,000,000	[	[	1,000,000
DrJamesSearle1	[	[	1,500,0001	1,500,000
MrLeeChristensen	3,660,000	[	[	3,660,000
MrGrahamChapman	[	[	[	[
MrRyanRockwood	[	[	[	[
4,660,000		c	1,500,000	6,160,000
1DrSearlewasappointedduringthefinancialyearended30June2016
	Balanceat	Allotmentof	Netother	Balanceat
2015	1July2014	Shares	changes	30June2015
DIRECTORS MrPaulprice2 20,000,000 [ (20,000,000)2 [
MrKCOng	[	[	[	[
MsPaulaCowan	[	[	[	[
MrJasonFerris	[	[	1,000,000	1,000,000
MrLeeChristensen	[	[	3,660,000	3,660,000
MrGrahamChapman	[	[	[	[
MrRyanRockwood	[	[	[	[
20,000,000		c	(15,340,000)	4,660,000

2 Mr!Price!resigned!during!the!financial!year!ended!30!June!2015

At!the!date!of!this!report,!there!were!no!unissued!ordinary!shares!of!the!Company.

7.3.4! Share!options!

No!options!were!granted!during!or!since!the!end!of!the!financial!year.!

7.3.5! Analysis!of!bonuses!included!in!remuneration!

There!were!no!short!term!cash!bonuses!paid!during!the!reporting!period.!

7.3.6! Options!over!equity!instruments!granted!as!compensation!

There!were!no!options!over!ordinary!shares!in!the!Company!granted!as!compensation!to!key!management!personnel!during!the! reporting!period.!No!options!were!granted!since!the!end!of!the!financial!year.!

This!is!the!end!of!the!Audited!Remuneration!Report.

Windimurra!Vanadium!Limited!! Directors’!report!(continued)! For!the!year!ended!30!June!2016

8.! Dividends!

No!dividends!have!been!paid!or!declared!by!the!Company!to!members!during!the!2016!or!2015!financial!years.!

9.! Going!Concern!

For!the!year!ended!30!June!2016!the!company!recorded!a!loss!of!$1,025,993!(2015:!$275,279)!and!experienced!net!cash! outflows!from!operating!and!investing!activities!of!$236,230!(2015:$1,370,106).!At!30!June!2016,!the!company!had!total! current!liabilities!of!$377,859!(2015:!$74,150)!and!cash!of!$8,253!(2015:!$64,483).!

The!ability!of!the!company!to!continue!as!a!going!concern!is!dependent!upon!the!future!successful!raising!of!necessary! funding!through!debt!or!equity!and!the!continued!support!of!its!creditors!and!shareholders.!

These!conditions!indicate!a!material!uncertainty!that!may!cast!a!significant!doubt!about!the!company’s!ability!to!continue!as! a!going!concern!and,!therefore,!that!it!may!be!unable!to!realise!its!assets!and!discharge!its!liabilities!in!the!normal!course!of! business.!

The!Directors!believe!that!the!Company!will!continue!as!a!going!concern!and!be!able!to!pay!its!debts!as!and!when!they!fall! due.!

The!financial!statements!have!been!prepared!on!the!basis!that!the!company!is!a!going!concern,!which!contemplates!the! continuity!of!normal!business!activity,!realisation!of!assets!and!settlement!of!liabilities!in!the!normal!course!of!business!for! the!following!reasons:!

The!company!believe!they!can!raise!additional!funding!through!debt!or!equity!which!is!actively!being!pursued!
The!majority!of!creditors!have!provided!confirmation!that!they!will!extend!payment!terms!until!such!time!as!the! company!has!the!ability!to!pay.!
Remaining!creditors!are!in!discussion!for!repayment!extensions!and!expected!to!be!settled!upon!funding!through!a! debt!or!equity!event.!
The!company!is!also!currently!discussing!with!the!company’s!corporate!advisors!and!largest!shareholder!in!relation! to!raising!additional!funding!

Should!the!company!not!be!able!to!continue!as!a!going!concern,!it!may!be!required!to!realise!its!assets!and!discharge!its! liabilities! other! than! in! the! ordinary! course! of! business,! and! at! amounts! that! differ! from! those! stated! in! the! financial! statements!and!that!the!financial!report!does!not!include!any!adjustments!relating!to!the!recoverability!and!classification!of! recorded!asset!amounts!or!liabilities!that!might!be!necessary!should!the!company!not!continue!as!a!going!concern.!

11.! Future!developments!

The!Company!is!proceeding!with!its!acquisition!of!Srinel!and!is!working!towards!finalising!its!notice!of!meeting!to!obtain!the! required!shareholder!approvals!to!complete!the!acquisition.!!The!Company!has!been!advised!by!ASX!that!it!is!required!to!re[ comply!with!Chapters!1!and!2!of!the!Listing!Rules!as!if!it!were!applying!for!admission!to!the!Official!List!of!the!ASX.!

12.! Indemnification!and!insurance!of!officers!and!auditors! Indemnification!

The!Company!has!agreed!subject!to!and!so!far!as!may!be!permitted!by!the!Corporations!Act!2001!to!indemnify!each!current! director!and!officer!at!the!date!of!the!report!against!all!liabilities!that!may!arise!from!their!position!as!directors!and!officers!of! the!Company.!The!agreement!stipulates!that!the!Company!will!meet!the!full!amount!of!any!such!liabilities,!including!costs!and! expenses.!No!indemnification!has!been!paid!with!respect!to!the!Company’s!auditors.!

13.! Noncaudit!services!

Details!of!the!amounts!paid!to!the!auditor!of!the!Company,!BDO,!and!its!related!practices!for!audit!services!provided!during! the!year!are!set!out!in!note!24.!

The! Board! of! Directors! is! satisfied! that! the! provision! of! non[audit! services! complies! with! the! independence! for! auditors! imposed!under!the!Corporations!Act!2001.!

14.! Lead!auditor’s!independence!declaration!

The!Lead!auditor’s!independence!declaration!is!set!out!on!page!44!and!forms!part!of!the!directors’!report!for!financial!year! ended!30!June!2016.!!

This!report!is!made!with!a!resolution!of!the!directors:

Jason!Ferris,!Director! Dated!at!Perth!this!30[th] !day!of!September!2016

Windimurra!Vanadium!Limited! Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income! For!the!year!ended!30!June!2016!

Fortheyearended30June2016	Fortheyearended30June2016
Note		2016	2015
		$	$
Administrativeexpenses 7 (305,153) (320,470)
Exploration,evaluationandgeologicalconsultancyfees	9	(141,812)	(97,471)
Directorfees	20	(174,800)	(177,418)
Impairmentexpense	12	(300,000)	[
OtherExpenses	6	(103,806)	[
Lossbeforefinancingexpenses	(1,025,571)		(595,359)
Financialincome 8 323 320,751
Financialexpenses	8	(745)	(671)
Netfinancingincome	(422)		320,080
Lossbeforetax (1,025,993) (275,279)
Incometaxexpense 11 [ [
Lossfortheyearafterincometax	(1,025,993)		(275,279)
Othercomprehensiveincome [ [
Totalcomprehensivelossfortheyear	(1,025,993)		(275,279)
Losspershare Basicanddilutedlosspershare(cents) 16 (0.20) (0.07)

The!above!Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income!is!to!be!read!in!conjunction!with!the!notes!to!the!financial! statements.

Windimurra!Vanadium!Limited! Statement!of!Financial!Position!

For!the!year!ended!30!June!2016!

WindimurraVanadiumLimited StatementofFinancialPosition Fortheyearended30June2016	WindimurraVanadiumLimited StatementofFinancialPosition Fortheyearended30June2016
Note		2016 $	2015 $
Currentassets Cashandcashequivalents 13 8,253 64,483
Tradeandotherreceivables	14	26,129	158,377
Totalcurrentassets	34,382		222,860
Nonccurrentassets InvestmentinSrinelProjects 6 599,149 652,955
Loanreceivable	10	65,000	65,000
Explorationandevaluation	12	[	300,000
Totalnonccurrentassets	664,149		1,017,955
Totalassets 698,531 1,240,815
Currentliabilities Tradeandotherpayables 15 (377,859)			(74,150)
Totalcurrentliabilities	(377,859)		(74,150)
Totalliabilities	(377,859)		(74,150)

Netassets	320,672		1,166,665
Equity Issuedcapital 17 3,259,868 3,079,868
Accumulatedlosses	(2,939,196)		(1,913,203)
Totalequity	320,672		1,166,665

The!above!Statement!of!Financial!Position!is!to!be!read!in!conjunction!with!the!notes!to!the!financial!statements.

Windimurra)Vanadium)Limited) Statement)of)Changes)in)Equity) For)the)year)ended)30)June)2016)

ShareCapital $ ConvertibleNote Reserve $ AccumulatedLosses $ TotalEquity $ Balanceat1July2014 2,738,355 310,509 (1,637,924) 1,410,940 TotalotherComprehensiveloss : : (275,279) (275,279) Transactionswithowners: Sharesissued(netofshareissuecost) 341,513 : : 341,513 Convertiblenotereserve (310,509) (310,509) Balanceat30June2015 3,079,868 R (1,913,203) 1,166,665 Balanceat1July2015 3,079,868 R (1,913,203) 1,166,665 TotalotherComprehensiveloss : : (1,025,993) (1,025,993) Transactionswithowners: Sharesissued(netofshareissuecost) 180,000 : : 180,000 Balanceat30June2016 3,259,868 R (2,939,196) 320,672	ShareCapital $ ConvertibleNote Reserve $ AccumulatedLosses $ TotalEquity $ Balanceat1July2014 2,738,355 310,509 (1,637,924) 1,410,940 TotalotherComprehensiveloss : : (275,279) (275,279) Transactionswithowners: Sharesissued(netofshareissuecost) 341,513 : : 341,513 Convertiblenotereserve (310,509) (310,509) Balanceat30June2015 3,079,868 R (1,913,203) 1,166,665 Balanceat1July2015 3,079,868 R (1,913,203) 1,166,665 TotalotherComprehensiveloss : : (1,025,993) (1,025,993) Transactionswithowners: Sharesissued(netofshareissuecost) 180,000 : : 180,000 Balanceat30June2016 3,259,868 R (2,939,196) 320,672	ShareCapital $ ConvertibleNote Reserve $ AccumulatedLosses $ TotalEquity $ Balanceat1July2014 2,738,355 310,509 (1,637,924) 1,410,940 TotalotherComprehensiveloss : : (275,279) (275,279) Transactionswithowners: Sharesissued(netofshareissuecost) 341,513 : : 341,513 Convertiblenotereserve (310,509) (310,509) Balanceat30June2015 3,079,868 R (1,913,203) 1,166,665 Balanceat1July2015 3,079,868 R (1,913,203) 1,166,665 TotalotherComprehensiveloss : : (1,025,993) (1,025,993) Transactionswithowners: Sharesissued(netofshareissuecost) 180,000 : : 180,000 Balanceat30June2016 3,259,868 R (2,939,196) 320,672
		3,259,868 R (2,939,196) 320,672

The!above!Statement!of!Changes!in!Equity!is!to!be!read!in!conjunction!with!the!notes!to!the!financial!statements.

Windimurra)Vanadium)Limited) Statement)of)Cash)Flows) For)the)year)ended)30)June)2016)

Note	Note	2016 $	2015 $
Cashflowsfromoperatingactivities
Cashpaidtosuppliersandadministrators	(125,045)		(1,219,477)
Interestreceived	2,238		13,883
Interestpaid	(745)		(671)
Explorationandevaluationoutflows	(62,678)		(98,841)
Netcashusedinoperatingactivities	19	(186,230)	(1,305,106)
Cashflowsfrominvestingactivities
Loanstootherentities	F		(65,000)
Paymentforotherassets	(50,000)		F
Netcashusedininvestingactivities	(50,000)		(65,000)

Cashflowsfromfinancingactivities Proceedsfromsharesissued 180,000 F
Proceedsfrom/(repaymentof)convertiblenotes	F		(250,000)
Proceedsfrom/(repaymentof)borrowings	F		(310,000)
Netcashfrom/(usedin)financingactivities	180,000		(560,000)
Netincreaseincashandcashequivalents (56,230) (1,930,106)
Openingcashandcashequivalentsat1July	64,483		1,994,589
Closingcashandcashequivalents	13	8,253	64,483

The!above!Statement!of!Cash!Flows!is!to!be!read!in!conjunction!with!the!notes!to!the!financial!statements.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)

For)the)year)ended)30)June)2016)

1. Reporting)entity)

This!annual!financial!report!includes!the!financial!statements!and!notes!of!Windimurra!Vanadium!Limited!(“the!! Company”).!The!Company!is!a!forFprofit!entity!primarily!involved!in!exploration!of!mineral!reserves!and!is!domiciled!in! Australia.!Its!registered!address!is!Level!24,!44!St!George’s!Terrace,!Perth,!Western!Australia.!

2.) Basis)of)preparation)

(a)) Statement)of)compliance)

The! annual! financial! report! is! a! general! purpose! financial! report! which! has! been! prepared! in! accordance! with! Australian!Accounting!Standards!(‘AASBs’)!(including!Australian!Interpretations)!adopted!by!the!Australian!Accounting! Standards! Board! (‘AASB’)! and! the! Corporations! Act! 2001.! The! annual! financial! report! complies! with! International! financial! Reporting! Standards! as! adopted! by! the! International! Accounting! Standards! Board.! The! annual! financial! report!was!authorised!for!issue!by!the!directors!on!30!September!2016.!

(b)) Basis)of)measurement)

The!annual!financial!report!has!been!prepared!on!the!historical!cost!basis.!The!methods!used!to!measure!fair!values! are!discussed!further!in!note!4.!

(c)) Functional)and)presentation)currency)

These!financial!statements!are!presented!in!Australian!dollars,!which!is!the!Company’s!functional!currency.!!

(d)) Going)concern)

For!the!year!ended!30!June!2016!the!company!recorded!a!loss!of!$1,025,993!(2015:!$275,279)!and!experienced!net! cash!outflows!from!operating!and!investing!activities!of!$236,230!(2015:$1,370,106).!At!30!June!2016,!the!company! had!total!current!liabilities!of!$377,859!(2015:!$74,150)!and!cash!of!$8,253!(2015:!$64,483).!

The!ability!of!the!company!to!continue!as!a!going!concern!is!dependent!upon!the!future!successful!raising!of! necessary!funding!through!debt!or!equity!and!the!continued!support!of!its!creditors!and!shareholders.!

These! conditions! indicate! a! material! uncertainty! that! may! cast! a! significant! doubt! about! the! company’s! ability! to! continue!as!a!going!concern!and,!therefore,!that!it!may!be!unable!to!realise!its!assets!and!discharge!its!liabilities!in!the! normal!course!of!business.!

The!Directors!believe!that!the!Company!will!continue!as!a!going!concern!and!be!able!to!pay!it’s!debts!as!and!when! they!fall!due.!

The!financial!statements!have!been!prepared!on!the!basis!that!the!company!is!a!going!concern,!which!contemplates! the!continuity!of!normal!business!activity,!realisation!of!assets!and!settlement!of!liabilities!in!the!normal!course!of! business!for!the!following!reasons:!

The!company!believe!they!can!raise!additional!funding!through!debt!or!equity!which!is!actively!being!pursued!
The!majority!of!creditors!have!provided!confirmation!that!they!will!extend!payment!terms!until!such!time!as!the! company!has!the!ability!to!pay.!
Remaining!creditors!are!in!discussion!for!repayment!extensions!and!expected!to!be!settled!upon!funding! through!a!debt!or!equity!event.!
The!company!is!also!currently!discussing!with!the!company’s!corporate!advisors!and!largest!shareholder!in! relation!to!raising!additional!funding!

Should!the!company!not!be!able!to!continue!as!a!going!concern,!it!may!be!required!to!realise!its!assets!and!discharge! its!liabilities!other!than!in!the!ordinary!course!of!business,!and!at!amounts!that!differ!from!those!stated!in!the!financial! statements! and! that! the! financial! report! does! not! include! any! adjustments! relating! to! the! recoverability! and! classification!of!recorded!asset!amounts!or!liabilities!that!might!be!necessary!should!the!company!not!continue!as!a! going!concern.

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued))

For)the)year)ended)30)June)2016)

3.) Significant)accounting)policies)

The!accounting!policies!of!the!Company!are!consistent!with!prior!period.!New!standards!applicable!from!1!July!2015! have!had!no!material!effect!on!the!Company.!

(a)) Financial)instruments)

NonQderivative)financial)instruments)

NonFderivative! financial! instruments! comprise,! trade! and! other! receivables,! cash! and! cash! equivalents,! loans! and! borrowings,!and!trade!and!other!payables.!NonFderivative!financial!instruments!are!recognised!initially!at!fair!value! plus,!for!instruments!not!at!fair!value!through!profit!or!loss,!any!directly!attributable!transaction!costs.!!Subsequent!to! initial!recognition!nonFderivative!financial!instruments!are!measured!as!described!below.!!

A!financial!instrument!is!recognised!if!the!Company!becomes!a!party!to!the!contractual!provisions!of!the!instrument.!! Financial!assets!are!derecognised!if!the!Company’s!contractual!rights!to!the!cash!flows!from!the!financial!assets!expire.!! Regular!way!purchases!and!sales!of!financial!assets!are!accounted!for!at!trade!date,!i.e.,!the!date!that!the!Company! commits!itself!to!purchase!or!sell!the!asset.!!Financial!liabilities!are!derecognised!if!the!Company’s!obligations!specified! in! the! contract! expire! or! are! discharged! or! cancelled.! Cash! and! cash! equivalents! comprise! cash! balances! and! call! deposits.!Accounting!for!finance!income!and!expense!is!discussed!in!note!3(f).!

Other!nonFderivative!financial!instruments!are!measured!at!amortised!cost!using!the!effective!interest!method,!less! any!impairment!losses!

Share)capital

Ordinary"shares"

Ordinary!shares!are!classified!as!equity.!!Incremental!costs!directly!attributable!to!the!issue!of!ordinary!shares!and! share!options!are!recognised!as!a!deduction!from!equity,!net!of!any!tax!effects.!

Dividends)

Provision! is! made! for! the! amount! of! any! dividend! declared,! being! appropriately! authorised! and! no! longer! at! the! discretion!of!the!Company,!on!or!before!the!end!of!the!financial!year!but!not!distributed!at!balance!date.!

Derivative)financial)instruments)

Derivatives!are!recognised!initially!at!fair!valueb!any!directly!attributable!costs!are!recognised!in!profit!or!loss!as!they! are! incurred.! Subsequent! to! initial! recognition,! derivatives! are! measured! at! fair! value,! and! changes! therein! are! recognised!in!profit!or!loss.!

Compound)financial)instruments)

Compound!financial!instruments!issued!by!the!Company!comprise!convertible!notes!that!can!be!converted!to!ordinary! shares!at!the!option!of!the!holder,!when!the!number!of!shares!to!be!issued!is!fixed!and!does!not!vary!with!changes!in! fair!value.!

The!liability!component!of!compound!financial!instruments!is!initially!recognised!at!the!fair!value!of!a!similar!liability! that!does!not!have!an!equity!conversion!option.!The!equity!component!is!initially!recognised!at!the!difference!between! the! fair! value! of! the! compound! financial! instrument! as! a! whole! and! the! fair! value! of! the! liability! component.! Any! directly!attributable!transaction!costs!are!allocated!to!the!liability!and!equity!components!in!proportion!to!their!initial! carrying! amounts.! ! Subsequent! to! initial! recognition,! the! liability! component! of! a! compound! financial! instrument! is! measured! at! amortised! cost! using! the! effective! interest! method.! The! equity! component! of! a! compound! financial! instrument!is!not!remeasured.!

Interest!related!to!the!financial!liability!is!recognised!in!profit!or!loss.!On!conversion,!the!financial!liability!is!reclassified! to!equity!and!no!gain!or!loss!is!recognised.

(b) Operating)lease)payments)

Payments!made!under!operating!leases!are!recognised!in!the!income!statement!on!a!straightFline!basis!over!the!term! of!the!lease.!!Lease!incentives!received!are!recognised!in!the!income!statement!as!an!integral!part!of!the!total!lease! expense!and!spread!over!the!lease!term.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

3.) Significant)accounting)policies)(continued)) (c)) Exploration)and)evaluation)assets

Exploration! and! evaluation! costs,! comprising! net! direct! costs! (including! the! costs! of! acquiring! licences)! and! an! appropriate!portion!of!related!overhead!expenditure!directly!attributable!to!the!exploration!property,!relating!to!current! areas!of!interest!are!capitalised!as!exploration!and!evaluation!assets!on!an!area!of!interest!basis.!!Costs!incurred! before!the!Company!has!obtained!the!legal!rights!to!explore!an!area!are!recognised!in!Statement!of!Profit!or!Loss!and! comprehensive!income.!

Exploration!and!evaluation!assets!are!only!recognised!if!the!rights!of!the!area!of!interest!are!current!and!either:!

(i)! the!exploration!and!evaluation!costs!are!expected!to!be!recouped!through!successful!development!and! exploitation!of!the!area!of!interestb!or!
(ii)! activities! in! the! area! of! interest! have! not! at! the! reporting! date,! reached! a! stage! which! permits! a! reasonable!assessment!of!the!existence!or!other!wise!of!economically!recoverable!reserves!and!active! and!significant!operations!in,!or!in!relation!to,!the!area!of!interest!are!continuing.!

Exploration!and!evaluation!assets!are!assessed!for!impairment!if!one!or!more!of!the!following!facts!and!circumstances! arise:!!

(i)! the!period!for!which!the!entity!has!the!right!to!explore!in!the!specific!area!has!expired!during!the!period! or!will!expire!in!the!near!future,!and!is!not!expected!to!be!renewedb!
(ii)! substantive!expenditure!on!further!exploration!for!and!evaluation!of!mineral!resources!in!the!specific! area!is!neither!budgeted!nor!plannedb!
(iii)! exploration!for!and!evaluation!of!mineral!resources!in!the!specific!area!have!not!led!to!the!discovery!of! commercially! viable! quantities! of! mineral! resources! and! the! entity! has! decided! to! discontinue! such! activities!in!the!specific!areab!and!
(iv)! sufficient!data!exist!to!indicate!that,!although!a!development!in!the!specific!area!is!likely!to!proceed,!the! carrying! amount! of! the! exploration! and! evaluation! asset! is! unlikely! to! be! recovered! in! full! from! successful!development!or!by!sale.!

In!any!such!case,!or!similar!cases,!the!entity!shall!perform!an!impairment!test!in!accordance!with!AASB!136.!Any! impairment!loss!is!recognised!as!an!expense!in!accordance!with!AASB!136.!

For!the!purposes!of!impairment!testing,!exploration!and!evaluation!assets!are!allocated!to!cashFgenerating!units!to! which!the!exploration!activity!relates.!!The!cash!generating!unit!shall!not!be!larger!than!the!area!of!interest.!

Once!the!technical!feasibility!and!commercial!viability!of!the!extraction!of!mineral!resources!in!an!area!of!interest!are! demonstrable,!exploration!and!evaluation!assets!attributable!to!that!area!of!interest!are!first!tested!for!impairment!and! then!reclassified!from!intangible!assets!to!mining!property!and!development!assets.!

In!the!event!that!an!area!of!interest!is!abandoned,!accumulated!costs!carried!forward!are!written!off!to!the!income! statement!in!the!year!in!which!that!assessment!is!made.!!Expenditure!is!not!carried!forward!in!respect!of!any!area!of! interest,!unless!the!Company’s!right!of!tenure!to!that!area!of!interest!is!current.

(d)) Impairment))

Financial)assets)

A!financial!asset!is!assessed!at!each!reporting!date!to!determine!whether!there!is!any!objective!evidence!that!it!is! impaired.!!A!financial!asset!is!considered!to!be!impaired!if!objective!evidence!indicates!that!one!or!more!events!have! had!a!negative!effect!on!the!estimated!future!cash!flows!of!that!asset.!

An!impairment!loss!in!respect!of!a!financial!asset!measured!at!amortised!cost!is!calculated!as!the!difference!between! its! carrying! amount,! and! the! present! value! of! the! estimated! future! cash! flows! discounted! at! the! original! effective! interest!rate.!!!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

3.) Significant)accounting)policies)(continued))

(d)) Impairment))(continued))

Financial!assets!are!tested!for!impairment!on!an!individual!basis.!!!

All!impairment!losses!are!recognised!in!profit!or!loss.!!!

An!impairment!loss!is!reversed!if!the!reversal!can!be!related!objectively!to!an!event!occurring!after!the!impairment! loss!was!recognised.!!For!financial!assets!measured!at!amortised!cost!the!reversal!is!recognised!in!profit!or!loss.!!!

NonQfinancial)assets)

The! carrying! amounts! of! the! Company’s! nonFfinancial! assets,! other! than! inventories! and! deferred! tax! assets,! are! reviewed!at!each!reporting!date!to!determine!whether!there!is!any!indication!of!impairment.!!If!any!such!indication! exists!then!the!asset’s!recoverable!amount!is!estimated.!!!

An!impairment!loss!is!recognised!if!the!carrying!amount!of!an!asset!or!its!cashFgenerating!unit!exceeds!its!recoverable! amount.! ! A! cashFgenerating! unit! is! the! smallest! identifiable! asset! group! that! generates! cash! flows! that! are! largely! independent!from!other!assets!and!groups.!!Impairment!losses!are!recognised!in!profit!or!loss.!!

The!recoverable!amount!of!an!asset!or!cashFgenerating!unit!is!the!greater!of!its!value!in!use!and!its!fair!value!less! costs!to!sell.!!In!assessing!value!in!use,!the!estimated!future!cash!flows!are!discounted!to!their!present!value!using!a! preFtax!discount!rate!that!reflects!current!market!assessments!of!the!time!value!of!money!and!the!risks!specific!to!the! asset.!!

An! impairment! loss! is! reversed! if! there! has! been! a! change! in! the! estimates! used! to! determine! the! recoverable! amount.! ! An! impairment! loss! is! reversed! only! to! the! extent! that! the! asset’s! carrying! amount! does! not! exceed! the! carrying!amount!that!would!have!been!determined,!net!of!depreciation!or!amortisation,!if!no!impairment!loss!had!been! recognised.!

(e)) Provisions)

A!provision!is!recognised!in!the!statement!of!financial!position!when!the!Company!has!a!present!legal!or!constructive! obligation!as!a!result!of!a!past!event,!and!it!is!probable!that!an!outflow!of!economic!benefits!will!be!required!to!settle! the!obligation.!!Provisions!are!determined!by!discounting!the!expected!future!cash!flows!at!a!preFtax!rate!that!reflects! current!market!assessments!of!the!time!value!of!money!and,!where!appropriate,!the!risks!specific!to!the!liability.!

(f)) Finance)income)and)expenses)

Finance! income! comprises! interest! income! on! funds! invested,! gains! on! the! disposal! of! availableFforFsale! financial! assets,!changes!in!the!fair!value!of!financial!assets!at!fair!value!through!profit!or!loss!and!foreign!currency!gains!that! are!recognised!in!profit!or!loss.!!Interest!income!is!recognised!as!it!accrues,!using!the!effective!interest!method.!!

Finance! expenses! comprise! interest! expense! on! borrowings,! unwinding! of! the! discount! on! provisions,! foreign! currency!losses,!changes!in!the!fair!value!of!financial!assets!at!fair!value!through!profit!or!loss!and!impairment!losses! recognised!on!financial!assets,!that!are!recognised!in!profit!or!loss.!!All!borrowing!costs!are!recognised!in!profit!or!loss! using!the!effective!interest!method.!

Foreign!currency!gains!and!losses!are!reported!on!a!net!basis.!

(g)) Income)tax)

Income!tax!on!the!Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income!for!the!year!comprises!current!and! deferred!tax.!!Income!tax!is!recognised!in!the!statement!of!comprehensive!income!except!to!the!extent!that!it!relates! to!items!recognised!directly!in!equity,!in!which!case!it!is!recognised!in!equity!

Current!tax!is!the!expected!tax!payable!on!the!taxable!income!for!the!year,!using!tax!rates!enacted!or!substantively! enacted!at!the!balance!sheet!date,!and!any!adjustment!to!tax!payable!in!respect!of!previous!years.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

3.) Significant)accounting)policies)(continued))

(g)) Income)tax)(continued))

Deferred!tax!is!provided!using!the!balance!sheet!liability!method,!providing!for!temporary!differences!between!the! carrying!amounts!of!assets!and!liabilities!for!financial!reporting!purposes!and!the!amounts!used!for!taxation!purposes.!! The!following!temporary!differences!are!not!provided!for:!initial!recognition!of!goodwill,!the!initial!recognition!of!assets! or!liabilities!that!affect!neither!accounting!nor!taxable!profit,!and!differences!relating!to!investments!in!subsidiaries!to! the!extent!that!they!will!probably!not!reverse!in!the!foreseeable!future.!!The!amount!of!deferred!tax!provided!is!based! on!the!expected!manner!of!realisation!or!settlement!of!the!carrying!amount!of!assets!and!liabilities,!using!tax!rates! enacted! or! substantively! enacted! by! the! reporting! date.! ! Deferred! tax! assets! and! liabilities! are! offset! if! there! is! a! legally!enforceable!right!to!offset!current!tax!liabilities!and!assets!and!they!relate!to!income!taxes!levied!by!the!same! tax!authority!on!the!same!taxable!entity,!or!on!different!tax!entities,!but!they!intend!to!settle!current!tax!liabilities!and! assets!on!a!net!basis!or!their!tax!assets!and!liabilities!will!be!realised!simultaneously.

A!deferred!tax!asset!is!recognised!only!to!the!extent!that!it!is!probable!that!future!taxable!profits!will!be!available! against!which!the!asset!can!be!utilised.!!Deferred!tax!assets!are!reduced!to!the!extent!that!it!is!no!longer!probable!that! the!related!tax!benefit!will!be!realised.!

(h)) Segment)reporting)

A!segment!is!a!distinguishable!component!of!the!Company!that!is!engaged!either!in!providing!products!or!services! (business! segment),! or! in! providing! products! or! services! within! a! particular! economic! environment! (geographical! segment),!which!is!subject!to!risks!and!rewards!that!are!different!from!those!of!other!segments.!

(i)) Goods)and)services)tax)

Revenue,!expenses!and!assets!are!recognised!net!of!the!amount!of!goods!and!services!tax!(GST),!except!where!the! amount!of!GST!incurred!is!not!recoverable!from!the!taxation!authority.!!In!these!circumstances,!the!GST!is!recognised! as!part!of!the!cost!of!acquisition!of!the!asset!or!as!part!of!the!expense.!Receivables!and!payables!are!stated!with!the! amount!of!GST!included.!!The!net!amount!of!GST!recoverable!from,!or!payable!to,!the!ATO!is!included!as!a!current! asset!or!liability!in!the!statement!of!financial!position.!

Cash!flows!are!included!in!the!statement!of!cash!flows!on!a!gross!basis.!!The!GST!components!of!cash!flows!arising! from!investing!and!financing!activities!which!are!recoverable!from,!or!payable!to,!the!ATO!are!classified!as!operating! cash!flows.

(j)) New)standards)and)interpretations)not)yet)adopted)

There!has!been!no!new!and!amended!accounting!standards!adopted!by!the!Group!for!the!first!time!for!the!financial! year!beginning!1!July!2015!or!any!prior!periods.

AASB"201483"8"Amendments"to"Australian"Accounting"Standards"–"Accounting"for"Acquisitions"of"Interests"in"Joint" Operations"

This! Standard! amends! AASB! 11! to! provide! guidance! on! the! accounting! for! acquisitions! of! interests! in! joint! operations!in!which!the!activity!constitutes!a!business.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2016! Expected!Impact!F!No!expected!impact!

AASB" 201484" 8" Amendments" to" Australian" Accounting" Standards" –" Clarification" of" Acceptable" Methods" of" Depreciation"and"Amortisation"

This! Standard! amends! AASB! 116! and! AASB! 138! to! establish! the! principle! for! the! basis! of! depreciation! and! amortisation!as!being!the!expected!pattern!of!consumption!of!the!future!economic!benefits!of!an!asset,!and!to!clarify! that!revenue!is!generally!presumed!to!be!an!inappropriate!basis!for!that!purpose.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2016! Expected!Impact!F!No!expected!impact!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)

For)the)year)ended)30)June)2016

(j)) New)standards)and)interpretations)not)yet)adopted)(continued))

AASB"201489"8"Amendments"to"Australian"Accounting"Standards"–"Equity"Method"in"Separate"Financial"Statements" This!amending!standard!allows!entities!to!use!the!equity!method!of!accounting!for!investments!in!subsidiaries,!joint! ventures!and!associates!in!their!separate!financial!statements.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2016! Expected!Impact!F!No!expected!impact!

AASB" 2014810" 8" Amendments" to" Australian" Accounting" Standards" –" Sale" or" Contribution" of" Assets" between" an" Investor"and"its"Associate"or"Joint"Venture"

This!amending!standard!requires!a!full!gain!or!loss!to!be!recognised!when!a!transaction!involves!a!business!(even!if! the!business!is!not!housed!in!a!subsidiary),!and!a!partial!gain!or!loss!to!be!recognised!when!a!transaction!involves! assets!that!do!not!constitute!a!business!(even!if!those!assets!are!housed!in!a!subsidiary).!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2016! Expected!Impact!F!No!expected!impact!

AASB"2015818"Amendments"to"Australian"Accounting"Standards"–"Annual"Improvements"to"Australian"Accounting" Standards"201282014"Cycle"

The! Standard! makes! amendments! to! various! Australian! Accounting! Standards! arising! from! the! IASB’s! Annual! Improvements!process,!and!editorial!corrections.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2016! Expected!Impact!F!No!expected!impact!

AASB"201582"8"Amendments"to"Australian"Accounting"Standards"–Disclosure"Initiative:"Amendments"to"AASB"101" The! Standard! makes! amendments! to! AASB! 101! Presentation" of" Financial" Statements" arising! from! the! IASB’s! Disclosure!Initiative!project.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2016!

Expected!Impact!F!No!expected!impact!

AASB"15"8"Revenue"from"Contracts"with"Customers"

This!Standard!establishes!principles!(including!disclosure!requirements)!for!reporting!useful!information!about!the! nature,!amount,!timing!and!uncertainty!of!revenue!and!cash!flows!arising!from!an!entity’s!contracts!with!customers.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2018!

Expected!Impact!F!No!expected!impact!

AASB" 201681" 8" Amendments" to" Australian" Accounting" Standards" –" Recognition" of" Deferred" Tax" Assets" for" Unrealised"Tax"Losses"

Clarifies!four!issues!with!respect!to!recognising!deferred!tax!assets!(DTAs)!for!unrealised!tax!losses:!

If!all!other!recognition!criteria!are!met,!DTAs!must!be!recognised!for!the!deductible!temporary!difference! between!the!fair!value!and!tax!base!on!fixed!rate!debt!instruments!that!are!not!deemed!to!be!impaired.!
Deductible!temporary!differences!must!be!compared!to!taxable!profits!of!the!same!type!(e.g.!capital!or!revenue! profits)!to!determine!whether!there!are!sufficient!taxable!profits!against!which!the!deductible!temporary! differences!can!be!utilised.!
When!comparing!deductible!temporary!differences!against!the!amount!of!future!taxable!profits,!the!calculation! of!future!taxable!profits!must!exclude!tax!deductions!resulting!from!the!reversal!of!those!deductible!temporary! differences.

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)

For)the)year)ended)30)June)2016

(j)) New)standards)and)interpretations)not)yet)adopted)(continued))

AASB" 201681" 8" Amendments" to" Australian" Accounting" Standards" –" Recognition" of" Deferred" Tax" Assets" for" Unrealised"Tax"Losses"(continued)"

The!estimate!of!future!taxable!profits!can!include!recovery!of!certain!assets!at!amounts!more!than!their! carrying!amount!if!there!is!enough!evidence!that!it!is!probable!that!the!entity!will!recover!the!asset!for!more! than!its!carrying!amount.!Examples!would!include:!
Property!measured!using!cost!model!for!which!an!external!valuation!has!been!conducted!
Fixed!rate!debt!instruments!held!to!maturity.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2017!

Expected!Impact!F!No!expected!impact!

AASB"201683"8"Amendments"to"Australian"Accounting"Standards"–"Clarifications"to"AASB"15"

Clarifies!AASB!15!application!issues!relating!to:!

Identifying!performance!obligations!
Principal!vs.!agent!considerations!
Licensing!
Practical!expedients!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2018!

Expected!Impact!F!No!expected!impact!

AASB"9""8"Financial"Instruments"

AASB!9!(December!2014)!is!a!new!standard!which!Replaces!AASB!139.!This!new!version!supersedes!AASB!issued! in!December!2009!(as!amended)!and!AASB!9!(issued!in!December!2010)!and!includes!a!model!for!classification!and! measurement,!a!single,!forwardFlooking!‘expected!loss’!impairment!model!and!a!substantially!reformed!approach!to! hedge!accounting.!

AASB!9!is!effective!for!annual!periods!beginning!on!or!after!1!January!2018.!However,!the!Standard!is!available!for! early!adoption.!The!own!credit!changes!can!be!early!adopted!in!isolation!without!otherwise!changing!the!accounting! for!financial!instruments.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2018! Expected!Impact!F!No!expected!impact!

AASB"16"–"Leases"

AASB!16!eliminates!the!operating!and!finance!lease!classifications!for!lessees!currently!accounted!for!under!AASB! 117!Leases.!It!instead!requires!an!entity!to!bring!most!leases!onto!its!balance!sheet!in!a!similar!way!to!how!existing! finance!leases!are!treated!under!AASB!117.!!An!entity!will!be!required!to!recognise!a!lease!liability!and!a!right!of!use! asset!in!its!balance!sheet!for!most!leases.!!!

There!are!some!optional!exemptions!for!leases!with!a!period!of!12!months!or!less!and!for!low!value!leases.!

Lessor!accounting!remains!largely!unchanged!from!AASB!117.!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2019! Expected!Impact!F!No!expected!impact!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)

For)the)year)ended)30)June)2016

(j)) New)standards)and)interpretations)not)yet)adopted)(continued))

IFRS"2"(Amendments)"8"Classification"and"Measurement"of"Share8based"Payment"Transactions"Amendments"to"IFRS" 2"

This!standard!amends!to!IFRS!2!ShareFbased!Payment,!clarifying!how!to!account!for!certain!types!of!shareFbased! payment!transactions.!The!amendments!provide!requirements!on!the!accounting!for:!

The!effects!of!vesting!and!nonFvesting!conditions!on!the!measurement!of!cash!settled!shareFbased!payments!
ShareFbased!payment!transactions!with!a!net!settlement!feature!for!withholding!tax!obligations!

!A!modification!to!the!terms!and!conditions!of!a!shareFbased!payment!that!changes!the!classification!of!the!transaction! from!cashFsettled!to!equityFsettled!

Application!date!!F!Financial!years!beginning!on!or!after!1!January!2018! Expected!Impact!F!No!expected!impact!

(k)) Comparative)Figures)

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

4.) Critical)accounting)estimates)and)judgement)

F! Recoverability!of!Cuprum!Loan!

The!Directors!have!made!an!assessment!of!the!recoverability!of!the!loan!and!believe!it!to!be!recoverable!on!the!basis! that!the!Srinel!Acquisition!will!proceed!in!the!near!future.!Further!consideration!is!also!taken!into!account!to!determine! whether!there!is!objective!evidence!that!the!amount!is!impaired!by!assessing!the!underlying!assets!held!by!Srinel! being! the! Mannar! Island! tenements.! Based! on! the! progress! of! the! project! and! the! positive! commodity! prices! of! Mineral!Sands,!the!Directors!are!of!the!opinion!that!the!loan!receivable!is!recoverable!at!balance!date.!In!the!event!the! acquisition!does!not!proceed!and!the!loan!becomes!repayable,!the!Company!would!seek!repayment!of!the!loan!in! accordance!with!the!Loan!Agreement.!In!the!event!that!the!loan!becomes!payable,!the!Company!has!the!right!in!its! absolute!discretion!to!require!Cuprum!to!grant!security!in!favour!of!WVL!(see!further!details!of!the!loan!under!note!10).!

F! Recoverability!of!Other!AssetF!Srinel!Option!

The!Srinel!Option!is!carried!at!cost!of!$559,149!as!at!30!June!2016!($652,955).!Srinel!option!relates!to!consideration! paid!to!purchase!100%!shares!in!Srinel!(see!details!in!note!6).!On!completion!of!the!acquisition!the!purchase!will!be! accounted!for!as!an!asset!acquisition!whereby!the!company!is!essentially!acquiring!the!Exploration!asset!being!the! Mannar!Island!tenements.!!Management!has!made!an!assessment!of!the!recoverability!of!the!Srinel!option!which!is! based!on!the!progress!and!completion!of!the!acquisition!of!Srinel!Holdings!Limited!.!The!Directors!expect!to!complete! the!acquisition!in!the!next!12!months.!Other!factors!are!also!considered!to!determine!whether!there!are!other!objective! evidence!to!suggest!that!the!Manner!Island!tenements!are!impaired.!Given!the!progress!of!the!Mannar!Island!project! to!date!and!the!positive!commodity!prices!of!Mineral!Sands,!the!Directors!are!of!the!opinion!that!the!Srinel!Option!is! recoverable!at!balance!date.!!

F! Recoverability!of!Tenement!M58/272!

On!1!September!2016,!the!Company!announced!that!the!Board!had!resolved!to!surrender!the!tenement!M58/272.! Management!also!assessed!impairment!in!accordance!with!AASB!136.!It!was!determined!that!due!to!the!surrender!of! the!tenement!soon!after!the!financial!year!end!and!that!no!substantive!expenditure!is!budgeted!for!further!exploration! and!evaluation!of!the!tenement,!the!asset!item!has!been!fully!impaired!as!at!30!June!2016.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)

For)the)year)ended)30)June)2016

5.) Financial)risk)management)) Overview)

The!Company!has!exposure!to!the!following!risks!from!their!use!of!financial!instruments:!

credit!risk!
liquidity!risk!
market!risk.!

This!note!presents!information!about!the!Company’s!exposure!to!each!of!the!above!risks,!its!objectives,!policies!and! processes!for!measuring!and!managing!risk,!and!the!management!of!capital.!Further!quantitative!disclosures!are! included! throughout! this! annual! financial! report.! The! Board! of! Directors! has! overall! responsibility! for! the! establishment!and!oversight!of!the!risk!management!framework.!

Risk! management! policies! are! established! to! identify! and! analyse! the! risks! faced! by! the! Company,! to! set! appropriate!risk!limits!and!controls,!and!to!monitor!risks!and!adherence!to!limits.!!Risk!management!policies!and! systems!are!reviewed!regularly!to!reflect!changes!in!market!conditions!and!the!Company’s!activities.!!The!Company! aims!to!develop!a!disciplined!and!constructive!control!environment!in!which!all!employees!understand!their!roles! and!obligations.!

Credit)risk)

Credit!risk!is!the!risk!of!financial!loss!to!the!Company!if!a!customer!or!counterparty!to!a!financial!instrument!fails!to! meet!its!contractual!obligations,!and!arises!principally!from!the!Company’s!receivables!from!customers!as!cash!and! cash!equivalent.!!!

Cash)and)cash)equivalents)

The!Company!holds!cash!and!cash!equivalents!with!reputable!Australian!banks.!

Trade)and)other)receivables)

The!Company’s!exposure!to!credit!risk!is!influenced!mainly!by!the!individual!characteristics!of!each!customer.!!

Liquidity)risk)

Liquidity! risk! is! the! risk! that! the! Company! will! not! be! able! to! meet! its! financial! obligations! as! they! fall! due.! The! Company’s!approach!to!managing!liquidity!is!to!ensure,!as!far!as!possible,!that!it!will!always!have!sufficient!liquidity! to!meet!its!liabilities!when!due,!under!both!normal!and!stressed!conditions,!without!incurring!unacceptable!losses!or! risking!damage!to!the!Company’s!reputation.!

The!Company!continually!monitors!its!cash!flow!requirements.!!Typically!the!Company!ensures!that!it!has!sufficient! cash!on!demand!to!meet!expected!operational!expenses!for!a!period!of!90!days,!including!the!servicing!of!financial! obligationsb!this!excludes!the!potential!impact!of!extreme!circumstances!that!cannot!reasonably!be!predicted,!such! as!natural!disasters.!!!

Market)risk)

Market!risk!is!the!risk!that!changes!in!market!prices,!such!as!foreign!exchange!rates!and!interest!rates,!affect!the! Company’s!financial!performance!or!the!value!of!its!holdings!of!financial!instruments.!The!objective!of!market!risk! management!is!to!manage!and!control!market!risk!exposures!within!acceptable!parameters,!while!optimising!the! return.!

Interest)rate)risk)

Interest!rate!risk!arises!as!a!result!of!the!fluctuations!in!variable!interest!rates.!

Capital)management

Capital!is!defined!as!the!share!capital!of!the!Company.!!The!Board!’s!policy!!is!to!maintain!a!strong!capital!base!so! as!to!maintain!investor,!creditor!and!market!confidence!and!to!sustain!future!development!of!the!business.!!!The! Company!is!not!subject!to!externally!imposed!capital!requirements.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)

For)the)year)ended)30)June)2016)

6.) Investment)in)Srinel)Projects)

imurraVanadiumLimited stothefinancialstatements(continued) yearended30June2016 InvestmentinSrinelProjects
NonCurrentAssets Openingbalance NetMovements InvestmentinSrinelProjectsbalance	2016 $ 2015 $ 652,955 F (53,806) 652,955
	599,149 652,955

In! March! 2014,! the! Company! entered! into! an! Option! Agreement! with! Cuprum! Holdings! Limited! (“Cuprum”)! under! which!Cuprum!has!granted!the!Company!the!sole!and!exclusive!option!to!acquire!100%!of!the!issued!capital!of!Srinel! Holdings!Limited!(“Srinel”).!!On!29!December!2014,!the!Company!announced!that!it!had!completed!its!due!diligence! and! exercised! its! option! to! acquire! 100%! of! the! issued! capital! of! Srinel! Holdings! Limited! (“Srinel”)! to! acquire! 13! exploration!licenses!located!in!Sri!Lanka!that!are!prospective!for!mineral!sands!(“Acquisition”).!!!

On! the! 29! January! 2016,! the! Company! announced! that! the! parties! had! entered! into! an! Amended! and! Restated! Option!Deed!(“Amended!Option!Deed”)!to!include!an!expanded!project!area,!as!well!as!to!revise!the!consideration! payable!to!Cuprum!pursuant!to!the!Original!Deed.!

The!revised!consideration!payable!to!Cuprum!under!the!Amended!Option!Deed!was!as!follows:!

(a)! issue! 200,000,000! fully! paid! ordinary! shares! in! the! Company! to! Cuprum! upon! the! satisfaction! of! Milestone!1b!
(b)! issue!200,000,000!fully!paid!ordinary!shares!in!the!Company!to!Cuprum!upon!the!satisfaction!of!Milestone! 2b!!
(c)! reimburse! expenditure! reasonably! incurred! by! Cuprum! in! applying! for,! managing! and! developing! the! Tenements!from!1!January!2014!onwards!to!Cuprumb!
(d)! pay!USD$500,000!to!Cuprum!upon!satisfaction!of!Milestone!3b!and!
(e)! pay!USD$2,000,000!to!Cuprum!upon!satisfaction!of!Milestone!4.!

Completion! of! the! Acquisition! under! the! Amended! Option! Deed! remains! conditional! upon! the! following! conditions! precedent!being!satisfied:!

(a)! the!Company!obtaining!all!necessary!shareholder!and!regulatory!approvals!requiredb!
(b)! no!material!adverse!changes!in!respect!of!the!Tenements!occurringb!
(c)! no!material!default!or!breach!of!the!Amended!Option!Deed!occurringb!and!
(d)! no!legal!proceedings!being!commenced,!pending!or!threatened!by!any!person!to!enjoin,!restrict!of!prohibit! the!completion!of!the!Acquisition.!

In!consideration!for!the!Option,!the!Company!has!paid!US$500,000!(Option!Fee)!to!Cuprum.!!On!2!March!2016,!an! additional!option!fee!of!AUD!$50,000!was!paid.!During!the!year!$103,806!was!written!down!to!reflect!the!balance!of! the!investment!cost.!The!option!fees!form!part!of!the!consideration!for!Cuprum.!Accordingly!following!completion!of! the!acquisition,!this!value!will!form!part!of!the!cost!of!the!investment!in!Cuprum.!In!addition!to!the!additional!option! fees,!it!was!agreed!that!the!400!million!consideration!shares!to!be!issued!to!Cuprum!under!the!Amended!Option! Deed!be!reduced!by!the!number!of!shares!having!a!value!of!$60,000!based!on!the!volume!weighted!average!price! for!the!Company’s!shares!of!the!5!trading!days!immediately!before!the!date!of!the!general!meeting!to!approve!the! Acquisition.!The!Directors!expect!to!complete!the!acquisition!in!the!next!12!months.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)

For)the)year)ended)30)June)2016)

6.) Investment)in)Srinel)Projects)(continued))

Openingbalance Changeinvalue Additionaloptionfee WriteFdowntocost Closingbalance	2016 $ 2015 $ 652,955 352,068 F 300,887 50,000 F (103,806) F 599,149 652,955

7.) Administrative)expenses)

Legalexpenses Accountingandauditexpenses Otheradministrativeexpenses Financeincomeandexpense Interestreceivedfromexternalparties Totalfinanceincome Bankfees Lossonforeignexchange Unwindingofinterestofconvertiblenotes Changeinvalueofotherassets Totalfinanceincome/(expenses) Netfinanceincome/(expenses) Exploration,evaluationandgeologicalconsultancyfees Geologicalconsultancyexpenses Miningleasecosts Otherexplorationandevaluationexpenses LoanReceivable Loanreceivable	2016 $ 2015 $ 46,752 21,820 48,958 39,456 209,443 259,194
	305,153 320,470
	2016 $ 2015 $ 2,238 13,883
	2,238 13,883
	(745) (671) (1,915) (1,711) F 7,692 F 300,887
	(2,660) 306,197
	(422) 320,080
	2016 $ 2015 $ 55,020 3,525 31,519 10,207 55,273 83,739
	141,812 97,471
	2016 $ 2015 $ 65,000 65,000
	65,000 65,000

8.) Finance)income)and)expense)

9.)

10.

In!September!2014,!the!Company!entered!into!a!loan!agreement!with!Cuprum!Holdings!Limited!(“Cuprum”)!and! advanced!$65,000!to!Cuprum.!!The!Loan!will!become!immediately!repayable!if!the!Transaction!does!not!proceed! for!any!reason!other!than!the!Option!Deed!being!terminated!as!a!result!of!a!breach!by!the!Company.!!The!Loan!is! interest! free.! ! In! the! event! the! Loan! becomes! repayable,! the! Company! may! in! its! absolute! discretion! require! Cuprum!to!grant!Security!in!favour!of!the!Company.!!!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

11. Tax)

Tax
a.Thecomponentsoftaxexpensecomprise: Currenttax Deferredtax b.theprimafacietaxonprofitbeforeincometaxisreconciledtothe incometaxasfollows Lossbeforeincometax Primafacietaxpayableonlossbeforeincometaxat30%(2015:30%) Taxeffectofamountswhicharenotdeductible/(taxable)incalculating taxationincome: " Nonassessable,nonFexemptincome,nonFdeductible " F40F880 Netdeferredtaxassetarisingfromtemporarydifferencesnotrecognised Incometaxexpense	2016 $ 2015 $ F F F F
	- F
	(1,025,993) (275,279)
	(307,798) (82,584) 144,812 F 12,356 (3,478)
	(163,316) 163,316 (73,706) 73,706
	F F

The!company!has!unrecognised!tax!losses!for!the!year!ended!30!June!2016!of!$354,829!!(2015!$191,513)!to!which!a! deferred!tax!asset!has!not!been!recognized!as!there!is!no!certainty!of!probable!future!taxable!income!to!which!they! can!be!utilised.

12. Exploration)and)evaluation)assets)

Explorationandevaluationassets
Current Openingbalance Impairment Closingbalance	2016 $ 2015 $ 300,000 300,000 (300,000) F
	Q 300,000

On!1!September!2016,!the!Company!announced!that!the!Board!had!resolved!to!surrender!the!tenement!M58/272.! Management!also!assessed!impairment!in!accordance!with!AASB!136.!It!was!determined!that!due!to!the!surrender! of! the! tenement! soon! after! the! financial! year! end! and! that! no! substantive! expenditure! is! budgeted! for! further! exploration!and!evaluation!of!the!tenement,!the!asset!item!has!been!fully!impaired!as!at!30!June!2016.!

13. Cash)and)cash)equivalents

Current Bankbalances Tradeandotherreceivables Current Prepayment GSTreceivable	2016 $ 2015 $ 8,253 64,483 8,253 64,483 2016 $ 2015 $ 8,772 6,660 17,357 151,717
	26,129 158,377

14. Trade)and)other)receivables)

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued))

For)the)year)ended)30)June)2016

15. Trade)and)other)payables)

Tradeandotherpayables
Current Tradepayables Accruedexpenses	2016 $ 2015 $ 277,559 32,134 100,300 42,016
	377,859 74,150

Please!refer!to!Note!20!for!Related!Party!payables!

16.) Loss)per)share)

Basic)and)diluted)loss)per)share)

The!calculation!of!basic!loss!per!share!at!30!June!2016!was!based!on!the!loss!attributable!to!ordinary!shareholders!of! $1,025,993!(2015:!$275,279)!and!a!weighted!average!number!of!ordinary!shares!outstanding!during!the!financial!year! ended!30!June!2016!of!464,495,527!(2015:!421,429,544).!

Weightedaveragenumberofordinaryshares Weightedaveragenumberofordinaryshareat30June 17. Capitalandreserves Sharecapital *FullyPaidOrdinaryShares* Onissueat1July2014 Convertiblenotesharesissued1 Convertiblenotesharesissued2 Shareissuecosts Onissueat30June2015 Onissueat1July2015 Placementsharesissued3 Shareissuecosts Onissueat30June2016	2016 2015
	464,495,527 421,429,544
	Number $ 399,284,366 2,738,355 20,000,000 28,441 29,895,000 310,509 F 2,563
	449,179,366 3,079,868
	449,179,366 3,079,868 25,714,289 180,000 F F
	474,893,655 3,259,868

1" On"20"January"2015,"the"Company"issued"20,000,000"shares"on"the"conversion"of"convertible"notes."

2" On"20"January"2015,"the"Company"issued"29,895,000"shares"on"the"conversion"of"the"Willis"convertible"note."
3" On"11"February"2016,"the"Company"issued"25,714,289"shares"under"a"Placement"raising"at"$0.007"per"share."

18.) Financial)instruments)

The! totals! for! each! category! of! financial! instruments,! measured! in! accordance! with! AASB! 139! as! detailed! in! the! accounting!policies!to!the!financial!statements,!are!as!follows:!

2016	2016	2015
	$	$
Financialassets Cashandcashequivalents 8,253 64,483
Loanreceivable 65,000		65,000
Totalfinancialassets 73,253		129,483
Financialliabilities Tradeandotherpayables 377,859 74,150
Totalfinancialliabilities 377,859		74,150
Totalnetfinancialassets (304,606) 55,333

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued))

For)the)year)ended)30)June)2016

18.) Financial)instruments)(continued)) Credit)risk

Exposure)to)credit)risk)

The!carrying!amount!of!the!Company’s!financial!assets!represents!the!maximum!credit!exposure.!!The!Company’s! maximum!exposure!to!credit!risk!at!the!reporting!date!was:!

aximumexposuretocreditriskatthereportingdatewas:	aximumexposuretocreditriskatthereportingdatewas:
Carryingamount
2016		2015
Cashandcashequivalents 8,253		64,483
	8,253	64,483

The!Company!does!not!currently!earn!revenue!from!operating!assets,!thus!there!is!currently!no!credit!risk!on!trade! receivables!at!the!reporting!date!by!geographic!region,!customer!type!or!by!significant!customer.

Impairment)losses)

The!Company!does!not!have!any!receivables!that!are!past!due,!nor!is!there!a!requirement!to!make!any!allowances! for!impairment!in!respect!of!other!receivables.

Liquidity)risk)

The!following!are!the!contractual!maturities!of!financial!liabilities,!including!estimated!interest!payments!and!excluding! the!impact!of!netting!agreements:!

Company	Carrying	Contractual				Morethan5
30June2016	amount	cashflows	1Q12mths	1Q2years	2Q5years	years
$		$	$	$	$	$
Tradeandother	377,859	377,859	377,859	F	F	F
payables
Company
30June2015
Tradeandother	74,150	74,150	74,150	F	F	F
payables

Currency)risk)

Exposure)to)currency)risk)

During!the!year!ended!30!June!2016,!the!Company!was!exposed!to!currency!risk!to!the!extent!that!there!is!a! mismatch!between!the!currencies!in!which!purchase!are!denominated!and!the!respective!functional!currency!of!the! Company.!Generally,!purchases!are!denominated!in!the!currency!that!matches!the!cash!flows!generated!by!the! underlying!operations!of!the!Companyb!being!Australian!dollars.!

The!summary!quantitative!data!about!the!Company’s!exposure!to!currency!risk!as!reported!to!the!management!of!the! Company!is!as!followsb!

2016	2015
USD USD Tradeandotherpayables - 61,793
Totalfinancialliabilities Q	61,793
2016	2015
GBP GBP Tradeandotherpayables - 997
Totalfinancialliabilities Q	997

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

18.) Financial)instruments)(continued)) Currency)risk)(continued)) Exposure)to)currency)risk)(continued)

inancialinstruments(continued) urrencyrisk(continued) xposuretocurrencyrisk(continued)
2016	2015
ZAR ZAR Tradeandotherpayables 140,543 F
Totalfinancialliabilities 140,543	Q

Interest)rate)risk)

The!Company’s!exposure!to!interest!rate!risk!and!the!effective!interest!rate!for!classes!of!financial!assets!and! financial!liabilities!is!set!out!below:!

Financialassets *1Withinoneyear* Cashandcashequivalents Totalfinancialassets Effectiveinterestrate Financialliabilities *1Withinoneyear* Totalfinancialliabilities	Floating interest rate $ 2016 total $ Floating interest rate $ 2015 total $
	8,253 8,253 64,483 64,483
	8,253 8,253 64,483 64,483
	0.95% 1.50%
	Q Q Q Q

The!Company!is!exposed!to!interest!rate!risk!as!the!Company!hold!funds!on!deposit!at!floating!interest!rates.!

The!sensitivity!analyses!below!have!been!determined!based!on!the!exposure!to!interest!rates!for!nonFderivative! instruments!at!the!reporting!date!and!the!stipulated!change!taking!place!at!the!beginning!of!the!financial!year!and! held!constant!throughout!the!reporting!period.!A!50!basis!point!increase!or!decrease!is!used!when!reporting!interest! rate!risk!internally!to!Directors!and!represents!management’s!assessment!of!the!possible!change!in!interest!rates.!

At!reporting!date,!if!interest!rates!had!been!50!basis!points!higher!or!lower!and!all!other!variables!were!held!constant,! the!Company’s!net!revenue!would!increase!by!$41!and!decrease!by!$41!respectively!(2015:!$322).!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

19.) Reconciliation)of)cash)flows)from)operating)activities)

Cashflowsfromoperating activities Lossfortheperiod Impairment Convertiblenoteeffectiveinterest Changeinvalueofoption Overaccrual (Increase)intradeandother receivables Increase/(Decrease)intradeand otherpayables Netcashfromoperatingactivities	2016 $ 2015 $ (1,025,993) (275,279)
	300,000 F F (7,692) 103,806 (300,887) F 2,564 (2,112) (6,660) 438,069 (717,152)
	(186,230) (1,305,106)

NonFcash!financing!activities!F!refer!to!note!17!regarding!shares!issued!on!conversion!of!convertible!notes.

20.) Related)Party)Transactions)

Key)management)personnel)compensation

Thekeymanagementpersonnel compensationareasfollows: ShortFtermemployeebenefits	2016 $ 2015 $ 174,800 177,418
	174,800 177,418

Other)transactions)with)related)parties)

A!number!of!key!management!personnel,!or!their!related!parties,!hold!positions!in!other!entities!that!result!in! them!having!control!or!significant!influence!over!the!financial!or!operating!policies!of!those!entities.!A!number! of!these!entities!transacted!with!the!Company!in!the!reporting!period.!These!are!as!follows:!

Consultancy)services:)

Jason!Ferris!is!a!Director!of!J2J!Investments!Pty!Ltd!(“J2J”),!which!provided!the!Company!with!consultancy! services.! These! services! provided! were! based! upon! normal! commercial! terms! and! conditions! no! more! favourable!than!those!available!to!other!parties.!The!amount!incurred!for!the!year!ended!30!June!2016!was! $72,000!(2015:!$36,000).!As!at!30!June!2016,!the!amount!payable!to!J2J!is!$30,000!(2015:!$6,000).!

Dr!James!Searle!is!a!Director!of!Earthsciences!Pty!Ltd!(“Earthsciences”),!which!provided!the!Company!with! consultancy!services.!These!services!provided!were!based!upon!normal!commercial!terms!and!conditions!no! more!favourable!than!those!available!to!other!parties.!The!amount!incurred!for!the!year!ended!30!June!2016! was!$40,755!(2015:!$nil).!As!at!30!June!2016,!the!amount!payable!to!Earthsciences!is!$17,300!(2015:!$nil).!

There!were!no!other!transactions!with!Directors!and!key!management!personnel!in!the!current!financial!year.!

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016)

21.) Segment)Reporting)

The!Company!operates!in!one!reportable!segment,!being!mineral!exploration!and!the!Company!operates!in! two! geographical! locations,! being! Australia! and! Sri! Lanka.! This! is! the! basis! on! which! internal! reports! are! provided! to! the! Directors! for! assessing! performance! and! determining! the! allocation! of! resources! in! the! Company.!!

The!geographical!information!for!the!Company!is!as!follows:!

ThegeographicalinformationfortheCompanyisasfollows:
Segmentrevenue SegmentRevenueandResults 2016 $ 2015 $ MineralexplorationFSriLanka F F MineralexplorationFAustralia F F Totalforcontinuingoperations F F Financingincome(netoffinancing expenses) F F Administrationcostsanddirectors'fees F F Impairmentexpense Otherexpense Lossbeforetax(continuing operations) F F SegmentAssets MineralexplorationFSriLanka MineralexplorationFAustralia Totalsegmentassets Unallocated Totalassets SegmentLiabilities MineralexplorationFSriLanka MineralexplorationFAustralia Totalsegmentliabilities Unallocated Totalliabilities	Segmentloss 2016 $ 2015 $ (112,213) (83,738) 270,401 (3,525) 158,188 (87,263) 422 320,080 (780,797) (508,094) (300,000) F (103,806) F
	(1,025,993) (275,278)
	2016 $ 2015 $ 664,149 652,955 F 300,000 664,149 952,955 34,382 287,860
	698,531 1,240,815
	2016 $ 2015 $ 63,666 F 12,714 4,769 75,780 4,769 302,078 69,381
	377,859 74,150

Windimurra)Vanadium)Limited)) Notes)to)the)financial)statements)(continued)) For)the)year)ended)30)June)2016

22.) Subsequent)Events)

Windimurra)Project)

Subsequent! to! the! 30! June! 2016! and! following! a! review! of! the! Windimurra! Tenement,! the! board! resolved! to! surrender! the! tenement.!

Sri)Lankan)Mineral)Sands)Project)

Subsequent!to!the!30!June!2016,!the!Company!reported!on!the!12!September!drilling!undertaken!in!the!prospective!corridor!by! the! project! vendor! Srinel.! Hand! auger! drilling! of! 818! holes! in! the! corridor! found! visual! indications! of! heavy! mineral! concentrations!over!an!area!in!excess!of!20km[2] .!Srinel!will!continue!drilling!until!it!has!completed!a!first!pass!auger!drilling! coverage!on!the!prospective!corridor!on!a!line!spacing!of!800m!and!drill!holes!separations!of!50!to!100m.!Samples!from!the! drilling!will!be!consigned!for!laboratory!analysis!after!the!conclusion!of!the!program.!

Other!than!the!events!noted!above,!there!are!no!other!events!subsequent!to!the!reporting!date.!

23.) Commitments)and)Contingencies)

Office)Accommodation)Services)

Beginning!from!1!July!2016,!the!Company!had!entered!into!a!service!agreement!with!Trident!Capital!Pty!Ltd!of!a!period!of!1! year.!

	2016 $		2015 $
Commitmentsnolongerthan1year Annualofficeaccommodationservices 24,000 24,000
24,000			24,000
24. Auditors’Remuneration AuditandothernonQauditservices 2016 $			2015 $
BDOAudit(WA): Auditandreviewoffinancialreports 32,915 32,956
Taxationservices F			1,530
32,915			34,486

Windimurra)Vanadium)Limited)) Directors’)declaration)

The!directors!of!Windimurra!Vanadium!Limited!(“the!Company”)!declare!that:!

1)! the!financial!statements!and!notes!thereto!are!in!accordance!with!the!Corporations!Act!2001,!including:!
a)! giving!a!true!and!fair!view!of!the!financial!position!of!the!Company!as!at!30!June!2016!and!of!its! performance,!as!represented!by!the!results!of!its!operations!and!cash!flows,!for!the!financial!year!ended!on!that! dateb!and!

b)! comply!with!Accounting!Standards!in!Australia!and!the!Corporations!Regulations!2001b!and!

2)! whilst!drawing!attention!to!the!disclosure!as!set!out!in!Note!2,!there!are!reasonable!grounds!to!believe!that!the! Company!will!be!able!to!pay!its!debts!as!and!when!they!become!due!and!payable.!
3)! The!financial!statements!also!comply!with!International!Financial!Reporting!Standards!as!disclosed!in!Note!2.!

This!declaration!has!been!made!after!receiving!the!declarations!required!to!be!made!to!the!directors!in!accordance!with! section!295(a)!of!the!Corporations!Act!2001.!

Dated!at!Perth!this!30[th] !day!of!September!2016!

Signed!in!accordance!with!a!resolution!of!the!directors:!

Jason!Ferris! Director!

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

==> picture [78 x 30] intentionally omitted <==

INDEPENDENT AUDITOR’S REPORT

To the members of Windimurra Vanadium Limited

Report on the Financial Report

We have audited the accompanying financial report of Windimurra Vanadium Limited, which comprises the statement of financial position as at 30 June 2016, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements , that the financial statements comply with International Financial Reporting Standards .

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 about 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, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view 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 company’s internal control. 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.

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 Windimurra Vanadium Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

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

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Opinion

In our opinion:

(a) the financial report of Windimurra Vanadium Limited is in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 ; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 2.

Emphasis of matter

Without modifying our opinion, we draw attention to Note 2 in the financial report which describes the conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern and therefore the company 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 in pages 14 to 16 of the directors’ report for the year ended 30 June 2016. 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 con ducted in accordance with Australian Auditing Standards.

Opinion

In our opinion, the Remuneration Report of Windimurra Vanadium Limited for the year ended 30 June 2016 complies with section 300A of the Corporations Act 2001 .

BDO Audit (WA) Pty Ltd

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Dean Just

Director

Perth, 30 September 2016

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF WINDIMURRA VANADIUM LIMITED

As lead auditor of Windimurra Vanadium Limited for the year ended 30 June 2016, I declare that, to the best of my knowledge and belief, there have been:

No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the audit.

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Dean Just Director

BDO Audit (WA) Pty Ltd

Perth, 30 September 2016

Windimurra)Vanadium)Limited)) Additional)shareholder)information)

Additional! information! required! by! the! Australian! Securities! Exchange! Limited! Listing! Rules! and! not! disclosed! elsewhere!in!this!report!is!set!out!below.!!The!information!was!applicable!as!at!21!September!2016.!

A.) Distribution)of)Equity)Securities)

Analysis!of!numbers!of!security!holders!by!size!of!holding:!

Distribution 1F1,000 1,001F5,000 5,001F10,000 10,001F100,000 100,001F999,999,999 1,000,000,000F9,999,999,999 Total	NumberofShareholders Numberof Shares
	1,447 516,235 559 1,195,959 77 538,236 79 3,548,362 215 469,094,863 0 0
	2,377 474,893,655

There!were!2,152!shareholders!holding!less!than!a!marketable!parcel!of!ordinary!shares!calculated!at!$0.005!per! share!being!the!price!of!the!proposed!capital!raising.!!

B.) Substantial)Shareholders)

An!extract!of!the!Company’s!Register!of!Substantial!Shareholders!(who!hold!5%!or!more!of!the!issued!capital)!is!set! out!below:!

ShareholderName KINGGEORGEVNOMINEESLTD MRLAURENTLEYENDECKER MRJASON+LISAPETERSON HEEDFULPTYLTD	ListedOrdinaryShares
	Number Percentage 44,895,000 9.45 38,142,000 8.03 30,000,000 6.32 24,225,000 5.10

C.) Twenty)Largest)Shareholders)

The!names!of!the!twenty!largest!holders!of!quoted!shares!are!listed!below:!

ShareholderName 1. KINGGEORGEVNOMINEESLTD 2. MRLAURENTLEYENDECKER 3. MRJASON+LISAPETERSON 4. HEEDFULPTYLTD 5. TRIDENTCAPITALPTYLTD 6. MRGLYNNLOGUE 7. AEGEANCAPITALPTYLTD 8. AGENSPTYLTD 9. KINGSTONVALEPTYLTD 10. MRADAMSIERAKOWSKI 11. IMLHOLDINGSPTYLTD 12. DOFNOMINEESPTYLTD 13. PAULBATE 14. CITIBANKNOMINEESPTYLTD 15. DRNIMALMARTINFERNANDO 16. GEORGEROBINSON 17. BELLPOTTERNOMINEESLTD 18. SHARICSUPERANNUATIONPTYLTD 19. KOSHERHOLDINGSPTYLTD 20. HSBCCUSTODYNOMINEES(AUSTRALIA)LIMITED TOP20TOTALS	ListedOrdinaryShares
	Number Percentage 44,895,000 9.45 38,142,000 8.03 30,000,000 6.32 24,225,000 5.10 17,500,000 3.69 14,300,000 3.01 12,800,000 2.70 10,000,000 2.11 10,000,000 2.11 10,000,000 2.11 9,620,000 2.03 7,536,238 1.59 6,000,000 1.26 6,000,000 1.26 6,000,000 1.26 6,000,000 1.26 5,500,000 1.16 5,450,000 1.15 5,415,000 1.14 5,062,640 1.07
	274,445,878 57.79

ShareholderName
1.
KINGGEORGEVNOMINEESLTD
2.
MRLAURENTLEYENDECKER
3.
MRJASON+LISAPETERSON
4.
HEEDFULPTYLTD
5.
TRIDENTCAPITALPTYLTD
6.
MRGLYNNLOGUE
7.
AEGEANCAPITALPTYLTD
8.
AGENSPTYLTD
9.
KINGSTONVALEPTYLTD
10.
MRADAMSIERAKOWSKI
11.
IMLHOLDINGSPTYLTD
12.
DOFNOMINEESPTYLTD
13.
PAULBATE
14.
CITIBANKNOMINEESPTYLTD
15.
DRNIMALMARTINFERNANDO
16.
GEORGEROBINSON
17.
BELLPOTTERNOMINEESLTD
18.
SHARICSUPERANNUATIONPTYLTD
19.
KOSHERHOLDINGSPTYLTD
20.
HSBCCUSTODYNOMINEES(AUSTRALIA)LIMITED
TOP20TOTALS

ListedOrdinaryShares

Number
Percentage
44,895,000
9.45
38,142,000
8.03
30,000,000
6.32
24,225,000
5.10
17,500,000
3.69
14,300,000
3.01
12,800,000
2.70
10,000,000
2.11
10,000,000
2.11
10,000,000
2.11
9,620,000
2.03
7,536,238
1.59
6,000,000
1.26
6,000,000
1.26
6,000,000
1.26
6,000,000
1.26
5,500,000
1.16
5,450,000
1.15
5,415,000
1.14
5,062,640
1.07

274,445,878
57.79

Windimurra)Vanadium)Limited)) Additional)shareholder)information)(continued))

D.) Voting)Rights)

In!accordance!with!the!Company’s!Constitution,!voting!rights!in!respect!of!ordinary!shares!are!on!a!show!of!hands!whereby! each!member!present!in!person!(or!representing!a!corporation!who!is!a!member)!shall!have!one!vote!and!upon!a!poll,!each! share!will!have!one!vote.!

E.) OnQmarket)buyQback)

There!is!no!current!onFmarket!buyFback.!

F.) Restricted)Securities)

There!are!currently!no!restricted!securities.!

AI assistant

TITANIUM SANDS LIMITED — Annual Report 2016

65956_rns_2016-10-02_7660a50d-9ed3-4de5-a2e5-67b5c3c2a9f4.pdf

WINDIMURRA!VANADIUM!LIMITED!!

Contents!

Corporate!Information!

Windimurra!Vanadium!Limited!! Directors’!report!! For!the!year!ended!30!June!2016!

Windimurra!Vanadium!Limited!! Directors’!report!! For!the!year!ended!30!June!2016!

Directors!(continued)!

2.! Company!Secretary!

3.! Directors’!meetings!

Windimurra!Vanadium!Limited!! Directors’!report!(continued)! For!the!year!ended!30!June!2016

4.! Principal!activities!

5.! Operating!and!financial!review!

History,!Review!of!Operations!and!Subsequent!Events!

Windimurra!Project!

Sri!Lankan!Mineral!Sands!Project!

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

History,!Review!of!Operations!and!Subsequent!Events!(continued)!

Sri!Lankan!Project!–!Option!Agreement!(continued)!

Placement!

Board!Changes!

Windimurra!Vanadium!Limited! Directors’!report!(continued)! For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement

Principle!1:!Lay!solid!foundations!for!management!and!oversight!

Recommendation+1.1+

Recommendation+1.2+

Recommendation+1.3+

Windimurra!Vanadium!Limited!! Directors’!report!(continued)!

6.! Corporate!governance!statement!(continued)

Recommendation+1.4+

Recommendation+1.5+

Recommendation+1.6+

Recommendation+1.7+

Principle!2:!Structure!the!board!to!add!value!

Recommendation+2.1+

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

6.! Corporate!governance!statement!(continued)

Recommendation+2.2+

Recommendation+2.3+

Recommendation+2.4+

Recommendation+2.5+

Recommendation+2.6+

Principle!3:!Act!ethically!and!responsibly!

Recommendation+3.1+

Principle!4:!Safeguard!integrity!in!corporate!reporting!

Recommendation+4.1+

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

6.! Corporate!governance!statement!(continued)

Principle!4:!Safeguard!integrity!in!corporate!reporting!(continued)!

Recommendation+4.1+(continued)

Recommendation+4.2+

Recommendation+4.3+

Principle!5:!Make!timely!and!balanced!disclosure! Recommendation+5.1+

Principle!6:!Respect!the!rights!of!security!holders! Recommendation+6.1+

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

For!the!year!ended!30!June!2016!

6.! Corporate!governance!statement!(continued) Recommendation+6.2+

Recommendation+6.3+

Recommendation+6.4+

Principle!7:!Recognise!and!manage!risk! Recommendation+7.1+

Windimurra!Vanadium!Limited! Directors’!report!(continued)!

6.! Corporate!governance!statement!(continued)

Recommendation+7.2+

Recommendation+7.3+

Recommendation+7.4+

Principle!8:!Remunerate!fairly!and!responsibly!

Recommendation+8.1+

Recommendation+8.2+

Recommendation+8.3+

Security!Trading!Policy!!

Windimurra!Vanadium!Limited!! Directors’!report!(continued)!

7! Remuneration!report!(audited)!

7.1! Principles!of!compensation!–!audited!

Details!of!Key!Management!Personnel!during!the!year!ended!30!June!2016!

Remuneration!Policy!

7.2

Post!

Windimurra!Vanadium!Limited!! Directors’!report!(continued)! For!the!year!ended!30!June!2016!

TITANIUM SANDS LIMITED Annual Report 2016