TIVAN LIMITED — Interim / Quarterly Report 2007

Mar 15, 2007

Tennant Creek Gold LIMITED

HALF-YEAR FINANCIAL REPORT

31 December 2006

Company Particulars

Directors

John W Barr	(Chairman)
Neil Biddle	(Managing Director)
Michael Bowen	(Non Executive Director)
Edward Fry	(Non-Executive Director)
Terence Smith	(Non Executive Director)

Company Secretary

Damian Delaney

Registered Office

Level 1 282 Rokeby Road Subiaco WA 6008 Telephone: (08) 9327 0900
Facsimile: (08) 9327 0901

Website:	www.tennantcreekgold.com.au
Email:	corporate@tennantcreekgold.com.au

Auditors

KPMG

Share Registry

Computershare Investor Services Pty Limited Level₂ 45 St George's Terrace Perth WA 6000 Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033

Australian Stock Exchange:-	(Code: TNG)
Stock Exchange Germany:	(Code:TNG)

Directors' Report

The Directors present their report together with the consolidated financial report for the half year ended 31 December 2006 and the review report thereon.

Directors

The Directors of the Company at any time during or since the end of the half year are:

Name
John W Barr	(Chairman)
Neil Biddle	(Managing director)
Michael Bowen	(Non executive director)
Terence Smith.	(Non executive director)
Edward Fry	(Non-executive director)	Appointed 28 November 2006

MANBARRUM ZINC-LEAD-SILVER PROJECT

Overview

During the period. Tennant Creek Gold (TNG" or the "company") completed the first comprehensive drilling program at its 100%-owned Manbarrum Zinc-Lead-Silver Project in the Northern Territory, having concluded all required access and heritage arrangements over the previous 18 months.

The granted tenements consist of an Exploration Licence and an Authority to Prospect under Section 178 covering a combined area of over 200 square kilometres. An additional 2 Exploration Licences have been applied for and these complete coverage of the Bonaparte Shelf Margin, where widespread Mississippi Valley Type (MVT) zinc-lead-silver mineralisation has been identified along a 50 kilometre strike length over an extensive exploration history.

The initial Phase 1 drilling program was very successful and the exploration strategy was to focus on the centrally located Sandy Creek zone of mineralisation, which was had previously been explored by companies including Aquitaine and BHP-Billiton.

As a result of the drilling program TNG recently announced the initial resource estimate of 10.5 million tonnes grading 3.3% zinc equivalent.

2006 Resource Drilling Program

The Phase 1 reverse circulation (RC) drilling program was completed in mid-November with a total of 9,471 metres drilled in 62 holes.

Excellent results were returned from the drilling, with the majority of holes intersecting significant zinc mineralization within the Sandy Creek zone, the initial focus of resource drilling. This zone was the main focus of previous exploration by companies including Aguitaine (later Triako), BHP and Delta Gold at Manbarrum.

The Phase 1 drilling program has enabled TNG to achieve its initial objective for the year, which was to delineate a JORC compliant initial resource estimate. Drilling results have continued to confirm the potential for the Sandy Creek zone to host a large tonnage, moderate grade zinc-lead-silver resource, typical of Mississippi Valley Type deposits.

As a result of the drilling completed to date, continuous stratabound zinc-dominant mineralisation has now been defined over a 530 x 250 metre zone within a 100 -120 metre thick sandy dolomite unit which is dipping west at 30 degrees and plunging north at 35 degrees, with a sub vertical mineralised zone at the southern end of the deposit.

The mineralisation remains open to the south, west, north and at depth within sections of the sandy dolomite and within the sandy dolomite/silty dolomite contact zone. There is strong geophysical and drill data evidence that mineralisation could extend a further 400 metres to the west and a further 600 metres north of the 2006 drill grid.

Sandy Creek

The Sandy Creek deposit is a composite body of mineralisation including a zone of tabular, stratabound mineralisation as well as a sub-vertical pipe-like zone of mineralisation. The tabular zone has been drilled on 50m-spaced sections over a strike length of 480m and down dip to 220m. This zone remains open down dip and along strike the sub-vertical zone of mineralisation measures approximately 100m by 80m and is open at depth. It consists of higher grade zinc-dominated sulphide mineralisation. The two zones of mineralisation are connected.

Tabular and high-grade pipe-like style of mineralisation is typical for Mississippi Valley-type (MVT) zinc-lead mineralisation globally with some districts hosting over 50 pipe-like bodies. This is considered extremely encouraging for the future of the Manbarrum Project, where significant zinc mineralisation has been identified over a 50km strike length.

The Mineral Resource was estimated using ordinary kriging with inverse distance squared as a check estimate. applied to wireframes which were created at cut-offs of >1.0% zinc equivalent (ZnEq). Ore blocks were estimated within these wireframes using 1% ZN and 1.0% Pb cut-offs.

The global resource estimate includes a zone of mixed zinc oxides and lead sulphides contained within the supergene zone (less than 2% of total).

The initial resource estimate for the Sandy Creek Zone is detailed below:

Resource Estimation	Category	Tonnes Mt	$ZnV_0$	Pb%	l Ag g/t	'*ZnEa% $(2n+Pb)$
Pinac	Indicated	. 30	3.46	0.86	6.40	-89
	Inferred		4.55	0.27	4.12
Stratabound	Indicated		.90	0.70	5.16
	Inferred	31	-98	- 30	6.43	- 62
Grand Total		0.47	2.93	.74	5.50
supergene	indicated.	0.20	.22	5.05	5.72

$*2n:Ph ratio 2:1$

Mineralisation

Sandy Creek main zone is a sphalerite-galena-pyrite type deposit. It is almost exclusively a sulphide primary deposit although some secondary zinc mineralisation may be present in the supergene zone. No lead sulphates (anglesite) or carbonates (cerrusite) have been observed.

The mineralisation is predominantly hosted by a quartz-sandy carbonate unit. In places, the mineralisation appears to extend into the underlying silty carbonate unit. High-grade galena mineralisation has been intersected in two holes in the saprolitic clays immediately above the main host unit. This zone is also likely to contain zinc oxide mineralisation (e.g. smithsonite).

The 2006 drill program has confirmed that the predominant style of mineralisation is host rock carbonate matrix replacement with stringer and dissiminated-style sulphides. Some open-space filling-style mineralisation is indicated by stalagmites made of sulphides observed within a zone of massive sulphides.

Metallurgical Testwork Program

AMTEC, under the supervision of metallurgical consultants Metplant Engineering Services Pty Ltd, is completing preliminary metallurgical testing on multiple mineralisation types from the Sandy Creek deposit.

Mining Optimisation

LQS (Lower Quartile Solutions) Pty Ltd has been commissioned to prepare a study into the feasibility of mining the Sandy Creek resource. This study will assess the economics of a mining development and examine various options for processing.

2007 Exploration Program

TNG is currently planning a significantly expanded 2007 exploration program at Manbarrum targeting extensions to the currently defined resource and other priority exploration targets within the region. A substantial program comprising both RC and deep diamond drilling is currently being planned.

Surface geophysical surveys such as IP and gravity will also continue during 2007.

A review of previous exploration results has highlighted several prospects at the Manbarrum Project other than Sandy Creek that contain ore-grade zinc intersections. These defined targets correlate with geophysical target areas and will be tested during the 2007 drilling program.

Tenement Status

TNG has increased its exploration title with several applications to tenements in the Northern Territory and Western Australia. Once these applications are granted, the company will hold a total area of more than 1.100 km2 in this prospective region.

Kununurra Exploration Base

At the end of the period the Company acquired the accommodation, office and storage facility in Kununurra that was previously leased. This integrated facility will serve as the Company's field headquarters for the Manbarrum Project.

The acquisition cost of \$600,000 was funded to the extent of \$480,000 by a secured loan from the Company's bankers.

SPRING HILL PROJECT

Soring Hill is located approximately 200 kilometres south of Darwin in the historic Pine Creek gold field in the Northern Territory.

In April 2006, TNG reached agreement regarding the sale of the Spring Hill tenements to Pan Resources Ltd for \$2,850,000. This sale was conditional upon Pan Resources Ltd gaining admission to the London stock exchange before 31 December 2006. Unfortunately, the admission has not been completed and the sale has now been cancelled.

On 28 February 2007 TNG reached agreement with minerals company Western Desert Resources Pty Ltd ("WDR") for the sale of a portfolio of non-core mineral assets in the Northern Territory for A\$2 million in shares.

The tenements subtect to the sale include the Spring Hill Gold Project, Blueys Silver-Lead prospect, Winnekie Gold prospect and a number of mineral and mining leases in the Tennant Creek area.

Completion of the sale agreement is conditional on the acceptance of WDR to the official list of the Australian Stock Exchange ("ASX") before 31 October 2007.

The consideration for the acquisition, payable on completion, is 10 million fully paid WDR shares at the time of the company's Initial Public Offering (IPO). The 10 million shares received will represent no less than 16% of the issued share capital in WDR immediately after IPO. A non- refundable cash deposit of \$60,000 has been received.

TENNANT CREEK GOLD-COPPER-BISMUTH PROSPECTS

TNG has an interest in several granted mining and exploration tenements in the immediate vicinity of the town of Tennant Creek. These tenements contain first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

Due to the company's focus in Manbarrum, no exploration has been conducted during the period.

ROVER GOLD-BASE METALS PROJECTS

TNG has an interest in four exploration licences 50-80km south of the Tennant Creek Township in Central Australia. The exploration licences covers an area of in excess of 2,500 square kilometres and contain numerous first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

Prospects are hosted within the Warramunga Formation and have the same magnetic trend and magnitude as some of the world-class gold and gold-copper-bismuth deposits in the Tennant Creek Inlier.

MOUNT PEAKE

Mount Peake is located in the Arunta Province 80 kilometres north east of Alice Springs. Airborne magnetic surveys have indicated possible ultramafic intrusion hosted nickel targets.

Due to the company's focus in Manbarrum, no exploration has been conducted during the period.

TANAMI EAST

Tanami East, also known as Goddard's Prospect, hosts significant malachite mineralisation outcropping over a strike length of 1.200 metres. Numerous values over 1% Cu and 100 ppb Au were obtained from rock chip samples carried out during the 1970s and the area is considered to have exploration potential for copper-gold deposits. Due to the company's focus in Manbarrum, no exploration has been conducted during the period.

OTHER NORTHERN TERRITORY TENEMENTS

TNG holds several other prospects in the Northern Territory. These prospects are in various stages of exploration and have not been specifically mentioned as only minor or nil work was completed during the period.

CAWSE EXTENDED

The OM Group Inc. (OMG) owns and manages the Cawse Nickel-Cobalt Operation with OMG and TNG jointly owning the adjacent Cawse Extended Project. TNG's interest in the Cawse Extended Project is 20% free-carried to production, convertible at TNG's election to a 2% net smelter return.

TNG has also entered into a separate agreement with OMG for a wet tonne royalty payment, which replaces the current agreement only for ore mined from the Unicorn Pit and transported to the Cawse ROM pad. The Agreement has been structured to allow for variations in the nickel price and the AUD/USD exchange rate such that the wet tonne payment is variable within the range AU\$0.50/wt and AU\$0.90/wt.

TNG has been advised by OMG that mining at the Unicorn Pit had been severely disrupted due to a shortage of tyres for the mining equipment. TNG has since been informed that it is likely there will be only limited mining at Cawse Extended for 2007.

There was no royalty payment for the period.

OTHER WESTERN AUSTRALIAN TENEMENTS

TNG holds an interest in other tenement groups, however, in each case, the Company does not contribute towards exploration expenditure as the projects are subject to joint venture or options for sale. These projects include Kintore East, and McTavish, both based in WA.

Staffing

During the period Mr Paul Burton was appointed as Exploration Manager and Dr Simon Dorling of CSA Australia Pty Ltd was appointed as Manbarrum Project Manager.

Subsequent events

On 28 February 2007 TNG reached agreement with minerals company Western Desert Resources Pty Ltd ("WDR") for the sale of a portfolio of non-core mineral assets in the Northern Territory for A\$2 million in shares. Full details of the agreement have been included above.

On 13 March 2007 TNG announced that Southern Cross Equities agreed to act a lead manager to a \$2.34m placement and underwriting the remaining 53m listed 31 May 2007 options, 7 million unlisted options exercisable at \$0.12 on or before 30 April 2007 and 2m unlisted options exercisable at \$0.15 on or before 31 May 2007 for a total of \$9.18m. The funds are to be used for an extensive drilling program on the Manbarrum Zinc-Lead-Silver Protect in the Northern Territory.

On 15 March 2007 the Board of Directors of TNG resolved call a shareholders meeting to consider a number of matters including:

• Ratifying the share placement and option underwriting agreement referred to above. $\bullet$
• A change of name to TNG Ltd $\bullet$
• The issue of options to Directors and management.
• To distributing to shareholders the majority of the 16.3m shares it owns in Batavia Mining Ltd ("BTV") and the 15.1m shares and 7.5m warrants that it owns in Thor Mining PLC ("THR").

THOR MINING PLC (AIM CODE "THR"; ASX CODE "THR")

TNG owns 15.1 million shares in Thor, representing an Interest of approximately 11.6%. These shares are restricted from sale until 29 June 2007.

A Definitive Feasibility study for the Molyhil Project was completed during the period and Thor is now seeking finance for the development of the Project.

TNG's investment in Thor had a market value of approximately \$3.473 million at 31 December 2006

The Thor web page is: www.thormining.com.

Tennant Creek Gold Limited and its controlled entities Directors' Report

BATAVIA MINING LIMITED (ASX CODE "BTV")

TNG owns 16.3 million shares in Batavia, representing an interest of approximately 14.3% with a market value at half year end of approximately \$2,607 million.

Batavia is focussed on development opportunities for the Deflector Deposit and other mineral interests at Gullewa in Western Australia.

The Batavia web page is: www.bataviamining.com.au.

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

The lead auditor's independence declaration is set out on page 8 and forms part of the directors' report for the halfyear ended 31 December 2006.

Signed in accordance with a resolution of the Directors:

Johr⁄ W Barr

Chairman

16 March 2007

$\hat{\mathcal{L}}_1$ , $\hat{\mathcal{L}}$

Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001

$\ddot{\cdot}$

To: the directors of Tennant Creek Gold Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2006 there have been:

• no contraventions of the auditor independence requirements as set out in the $(i)$ Corporations Act 2001 in relation to the review; and
• no contraventions of any applicable code of professional conduct in relation to the $(ii)$ review.

ł,

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Perth Dated: $\frac{1}{4}$

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Consolidated interim income statement For the six months ended 31 December 2006

	Note	31 December 2006	31 December 2005 *Restated
		\$	\$
Gain on sale of tenements			577,319
Gain on sale of investments			270,990
Other income		61.664	94,748
Total income		61.664	943,057
Occupancy expenses		(27,996)	(21, 444)
Administrative expenses		(51, 290)	(22, 466)
Employment expense		(100, 157)	(88, 187)
Corporate expenses		(398, 891)	(483, 942)
Depreciation and amortisation expense		(91, 913)	(15, 948)
Share based payment expense for consultants/employees		(2, 241, 816)	(450,000)
Impairment of investment in associates		(1,914,818)
Reversal of impairment of investment in associates			675,724
Change in fair value of investments held for trading		592,070	358.264
Share of profit/(loss) in associates accounted for using the equity method		231.444	(362, 648)
Profit/(Loss) before finance cost and tax		(3,941,703)	532,410
Finance cost		(1, 143)	(2,035)
Profit/(Loss) before income tax		(3,942,846)	530,375
Income tax expense
Profit/(Loss) attributable to members of Tennant Creek Gold Limited		(3,942,846)	530,375
Earnings per share (cents per share)
Basic earnings/(loss) per share from continuing operations Diluted earnings/(loss) per share from continuing operations		(3,865) (3.865)	0.621 0.464

The consolidated interim income statement is to be read in conjunction with the notes to the interim financial statements.

*Refer to note 10

Consolidated interim balance sheet As at 31 December 2006

\$ \$	3,327,132 144,462
Current Assets
3 844.675 Cash and cash equivalents
345,920 Trade and other receivables
750,000 Financial assets held for trading	370,950
Other 6,482	40,598
1,947,077 Total current assets	3,883,142
Non-Current Assets
13,922 Trade and other receivables	14,451
3,473,000 Available-for-sale investments 4
5 2,606,921 Investments accounted for using the equity method	4,285,546
624,185 Plant and equipment	126,168
7,044,357 Exploration and evaluation expenditure 13,762,385 Total non-current assets	5,098,914 9,525,079
15,709,462 Total assets	13,408,221
Current Liabilities
Trade and other payables 213,198	159,287
7,093 Interest-bearing liabilities	6,846
34,787 Provisions	22,013
Total current liabilities 255,078	188,146
Non-current Liabilities
19,049 Interest-bearing liabilities	22,652
19,049 Total non-current liabilities	22,652
Total liabilities 274,127	210,798
15,435,335 Net assets	13,197,423
Equity
6 11,633,710 Issued capital	9,346,022
4,128,838 Reserves	1,037,584
(327, 213) Retained earnings	2,813,817
15,435,335 Total equity	13,197,423

The consolidated interim balance sheet is to be read in conjunction with the notes to the interim financial statements.

*Refer to note 10

Consolidated interim cash flow statement For the six months ended 31 December 2006

	31 December 2006 \$	31 December 2005 \$
Cash flows from operating activities
Cash receipts in the course of operations		16,101
Cash paid to suppliers and employees	(735, 976)	(568, 905)
Interest received	59,033	49,118
Proceeds from royalties	9,877	80,332
Net cash used in operating activities	(667,066)	(423, 354)
Cash flows from investing activities
Payments for exploration and evaluation expenditure	(1, 917, 515)	(454, 428)
Payments for plant and equipment	(563, 886)	(1,405)
Payments for investments in associates	(386,496)	(460, 038)
Proceeds from sale of investments	213,020	270,990
Net cash used in investing activities	(2,654,877)	(644, 881)
Cash flows from financing activities
Proceeds from the issue of shares and options	847,688	395,100
Transaction costs from the issue of share capital		(6, 373)
Finance lease payments	(8,202)	(3, 133)
Net cash received from financing activities	839,486	385,594
Net decrease in cash and cash equivalents	(2,482,457)	(682, 641)
Cash and cash equivalents at 1 July	3,327,132	1,550,702
Cash and cash equivalents at 31 December	844,675	868,061

This consolidated statement of cashflows is to be read in conjunction with the notes to the interim financial statements.

395,100

$(6, 373)$

6,970,119

9,346,022

$\ddot{\phantom{a}}$

$\overline{a}$

$\overline{a}$

848,888

$(1, 200)$

1,440,000

$11,633,710$

expense

2006

equity

expense

and expense Options exercised

Options exercised

Option exercise costs

Closing balance at 31

Opening Balance at 1 July

Net loss for the period

recognised directly in

Option exercise costs

Closing balance at 31

December 2006

Share based payments

Net gain on available for

Share of associates gains

Total recognised income

December 2005

sale investments

Share based payments

			Consondated statement of Changes in equity For the six months ended 31 December 2006
	Issued Capital	Retained Earnings	Translation Reserve	Option Reserve \$	Fair Value Reserve \$	Total Equity \$
Opening Balance at 1 July 2005	6,581,392	1,644,179				8,225,571
Net profit for the period		530.375				530,375
Share of associates gains recognised directly in equity			21,611			21.611
Total recognised income and expense		530,375	21,611			551,986

$\tilde{\phantom{a}}$

$21,611$

34,214

13,110

$13,110$

47,324

$\overline{\phantom{a}}$

$\overline{a}$

$\sim$

$\ddot{\phantom{a}}$

$\overline{a}$

$\overline{a}$

$\overline{a}$

$\ddot{\phantom{0}}$

$\overline{a}$

L,

$\ddot{\phantom{a}}$

$\overline{a}$

1,003,370

1,003,370

annalidated atatamant af

450,000

2,624,554

2,813,817

$(3,942,846)$

$(3,942,846)$

801,816

$(327, 213)$

The consolidated interim statement of changes in equity is to be read in conjunction with the notes to the interim
financial statements.

$\overline{a}$

$\overline{a}$

395,100

$(6, 373)$

450,000

$9,616,284$

13,197,423

$(3,942,846)$

2,981,149

110,105

$(851, 592)$

848,888

$(1, 200)$

2,241,816

15,435,335

$\overline{a}$

L

l.

2,981,149

3.078.144

$3,078,144$

96,995

1. Statement of significant accounting policies

Tennant Creek Gold Limited (the "Company") is a company domiciled in Australia. The condensed consolidated interim financial report of the Company for the six months ended 31 December 2006 comprises the Company and its subsidiaries (together referred to as the "consolidated entity") and the consolidated entity's interest in associates.

$(a)$ Basis of preparation

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

The condensed consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated financial report of the consolidated entity as at and for the year ended 30 June 2006.

The condensed consolidated interim financial report is presented in Australian dollars and is prepared on the historical cost basis, except for available-for-sale and held for trading investments that have been measured at fair value.

The condensed consolidated interim financial report was approved by the Board of Directors on 15 March 2007.

Significant accounting policies $(b)$

Except as described below, the accounting policies applied by the consolidated entity in this condensed consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated financial report as at and for the year ended 30 June 2006.

The financial statements for the year ended 30 June 2006 did not contain an accounting policy in respect of the following:

Available-for-sale investments

Investments which are classified as available-for-sale are measured at fair value. Gains or losses on available-for-sale investments are recognised as a separate component of equity until the investment is sold, collected or otherwise disposed of, or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is included in the income statement.

The fair value of investments that are actively traded in organised financial markets is determined by referring to market bid prices at the close of business on the balance sheet date.

Financial Assets held for Trading

Financial instruments held for trading, including listed options over shares in listed entities, are classified as current assets and are stated at fair value with any resultant gain or loss recognised in the income statement.

$(c)$ Estimates

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

In preparing this condensed consolidated interim financial report, the significant judgements made by management in applying the consolidated entity's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report as at and for the year ended 30 June 2006.

Financial risk management $(d)$

The consolidated entity's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial report as at and for the year ended 30 June 2006.

2. Segment information

Segment information is presented in the condensed consolidated interim financial statements in respect of the consolidated entity's business segments, which are the primary basis of segment reporting. The business segment reporting format reflects the consolidated entity's management and internal reporting structure. Inter-segment pricing is determined on an arm's length basis.

Business Segments

	The consolidated entity comprises of the following main business segments: $\,$
Exploration	Exploration and development on tenements.
Investments	Investments in publicly listed and other companies.

Geographical Segments

The consolidated entities business segments all operate in Australia.

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and expenses.

Primary Reporting - Business Segments

Six months ended 31 December	Exploration	Investments	Total
2006	\$	\$	\$
Revenue
External segment revenue
Total segment revenue Other unallocated revenue			61,664
Total revenue			61,664
Result
Segment result	(158, 710)	(1,322,748)	(1,481,458)
Profit of associates			231,444
Unallocated corporate revenues and expenses			(2,692,832) (3,942,846)
Loss from ordinary activities before income tax
Six months ended 31 December	Exploration	Investments	Total
2005
	\$	\$	\$
Revenue		270,990	848,309
External segment revenue	577,319		848,309
Total segment revenue Other unallocated revenue			94.748
Total revenue			943.057
Result
Segment result	409.830	942,330	1,352,160
Loss of associates			(362, 648)
Unaflocated corporate revenue and expenses			(459, 137)
Profit from ordinary activities before income tax			530,375

3. Cash and cash equivalents

cash and cash cauvaiches	31 December 2006	30 June 2006
Cash Short term bank deposits	743,675 101,000	3,257,132 70.000
	844.675

4. Available-for-sale investments

	31 December 2006	30 June 2006
At fair value	3.473.000	-
Shares – listed	-----------------	--------------------------------------

Available-for-sale investments consist of an investment in Thor, a company listed on the Australian Stock Exchange ("ASX") and the Alternative Investment Market ("AIM") and which operates in mineral exploration.

Prior to 27 September 2006, the company equity accounted for its investment in Thor. A share issue by Thor on this date resulted in a dilution of the company's ownership interest and as a result it has been determined that the company no longer exerts significant influence over Thor and that equity accounting for the investment is no longer appropriate. Refer to note 5 below for further details.

At 31 December 2006, the company held an 11.63% ownership interest in Thor (15,100,000 shares). At 31 December 2006 the listed share price of Thor was \$0.23 per share which equated to a total market value of \$3,473,000.

5. Associate entities

The consolidated entity accounts for investments in associates using the equity method. The consolidated entity has the following investments in associates:

	Principal Activity	Country of incorporation	Reporting Date		Ownership
				31 Dec 2006	30 Jun 2006	Date of this report
Batavia Mining Ltd	Mining exploration and development	Aust	30 June	14.29%	13.04%	14.28%

Batavia Mining Limited

Two directors of Tennant Creek Gold Limited, Messrs Smith and Biddle were on the board of Batavia throughout the period and in addition, the Company Secretary and CFO of Tennant Creek Gold Limited, Mr Delaney, was elected to the board of Batavia on 29 November 2006. As a result it has been determined that Tennant Creek Gold Ltd exercises significant influence over Batavia. Accordingly the company applies the equity method of accounting for its investment in Batavia in accordance with AASB 128.

Movements in the carrying value of the equity accounted investment in Batavia during the period are outlined below:

	Six months ended JL December 2006
	5
Net book value at 1 July	3,603,587
Additional investment during the period	367.037
Share of profit in current period	454,121
Share of gains recognised in equity	96,994
Impairment during the period	(1,914,818)
Net book value at 31 December	2,606,921

$\sim$

$\mathbf{r}$ . The set of $\mathbf{r}$

Thor Mining PLC

In the year ended 30 June 2006, the company applied the equity method of accounting for its investment in Thor in accordance with AASB 128. At 30 June 2006, the company held a 23.48% shareholding in Thor.

On 27 September 2006 Thor completed a \$10.0 million IPO and listed on the ASX via the issue of 50 million shares at 20 cents per share. Thor also completed a share consolidation on a 1 for 3 basis and issued 16 million shares for the acquisition of the portfolio of Uranium tenements. As a result the company's shareholding has reduced to 11.63%.

As a result of the decrease in the company's shareholding, it has been determined that the company no longer exerts significant influence over Thor as defined in AASB 128. From 27 September 2006, the company has ceased to equity account for its investment in Thor Mining PLC. The investment has been classified as an available-for-sale investment at 31 December 2006.

Movements in the carrying value of the equity accounted investment in Thor Mining PLC during the period are outlined below:

	Six months ended 31 December 2006
	S
Net book value at 1 July	681.959
Additional investment during the period	19.459
Share of loss in current period	(222, 677)
Share of gains recognised in equity	13.110
Transfer to available-for-sale investments	(491,851)
Net book value at 31 December

6. Capital

	December 2006	June 2006
Issued and paid-up share capital	\$	\$
109,181,571 (June 2006: 100,628,983) ordinary shares, fully paid	11,633,710	9,346,022
Movements in shares on issue (a)	6 months ended 31 December 2006 Number	6 months ended 31 December 2005 Number
Balance at the beginning of period	100,628,983	82,978,270
Options Exercised	5,552,588	2,634,000
Share Placement	3,000,000
Balance at end of period	109,181,571	85,612,270

7. Related party transactions

At 31 December there was an amount of \$68,157 due from NZ Mines Limited, a company of which Neil Biddle is a director, in respect of expenses paid by Tennant Creek Gold Limited on behalf of NZ Mines Limited. This amount has been paid in full subsequent to the balance date.

8. Contingent liabilities

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

9. Share-based payments

The terms and conditions of the employee share option plans are disclosed in the consolidated financial report as at and for the year ended 30 June 2006. On 30 November 2006 a further grant of unlisted options was made to a director and a consultant of TNG.

The terms and conditions of the grant made during the six months ended 31 December 2006 are as follows:

Number	Grant Date	Expiry Date	Exercise Price
2,500,000	30 November 2006	30 November 2007	\$0.23

Fair Value of share option and assumptions for the six months ended 31 December 2006:

Underlying security spot price Exercise price	\$0.49 \$0.23
Dividend rate
Standard deviation of returns	60.00%
Risk free rate	6.02%
Expiration period	1 vear
Black Scholes Valuation	\$0.2810

The basis of measuring fair value is consistent with that disclosed in the consolidated financial report as at and for the year ended 30 June 2006.

On 22 December 2006 3,000,000 shares were issued to Penfold Marketing Pty Ltd for consideration of services rendered on the Manburrum project, these shares were valued on this date at \$0.48.

10. Prior period restatement

The comparative financial information in the half year financial report has been restated in order to correctly account for the company's derivative financial assets, being its investments in listed options in Batavia Mining Limited. These investments were not recognised in the financial reports for the half year ended 31 December 2005 and the year ended 30 June 2006.

This omission had the effect of understating the derivative financial assets by \$144,867 at 31 December 2005 and the derivative financial assets by \$370,950 and the equity accounted investment in Batavia by \$545,756 at 30 June 2006. In addition, the impact of changes in the fair values of the derivative financial assets was not recognised in the income statement in either reporting period.

The prior period comparatives impacted by the omission, including earnings per share, have been restated as shown below:

	31 December 2005 \$	Adjustment	31 December 2005 (restated) Ś.
Income Statement
Change in fair value of investments held for trading	11,503	346,761	358,264
Reversal of impairment of investments accounted for using the equity method	944,916	(269,192)	675,724
Profit after tax	452,806	77.569	530,375
Balance Sheet
Financial assets held for trading		144,867	144.867
Opening retained earnings	1.576.881	67.298	1,644,179
Basic earnings per share (cents)	0.530	0.091	0.621
Diluted earnings per share (cents)	0.396	0.068	0.464

	30 June 2006 \$	Adjustment \$	30 June 2006 (restated) \$
Income Statement
Change in fair value of investments held for trading	H	849.408	849,408
Profit/(loss) after tax	(229.085)	849.408	620.323
Balance Sheet
Financial assets held for trading		370.950	370,950
Investments accounted for using the equity method	3,739,790	545,756	4.285,546
Opening retained earnings	1.576.881	67.298	1.644,179
Basic earnings per share (cents)	(0.255)	0.944	0.689
Diluted earnings per share (cents)	(0.255)	0.775	0.520

11.Subsequent events

On 28 February 2007 TNG reached agreement with minerals company Western Desert Resources Pty Ltd ("WDR") for the sale of a portfolio of non-core mineral assets in the Northern Territory for A\$2 million in shares. The tenements subject to the sale include the Spring Hill Gold Project, Blueys Silver-Lead prospect. Winnekie Gold prospect and a number of mineral and mining leases in the Tennant Creek area.

Completion of the sale agreement is conditional on the acceptance of WDR to the official list of the Australian Stock Exchange ("ASX") before 31 October 2007.

The consideration for the acquisition, payable on completion, is 10 million fully paid WDR shares at the time of the company's Initial Public Offering (IPO). The 10 million shares received will represent no less than 16% of the issued share capital in WDR immediately after IPO. A non-refundable cash deposit of \$60,000 has been received.

On 13 March 2007 TNG announced that Southern Cross Equities agreed to act a lead manager to a \$2.34m placement and underwriting the remaining 53m listed 31 May 2007 options, 7m unlisted options exercisable at \$0.12 on or before 30 April 2007 and 2m unlisted options exercisable at \$0.15 on or before 31 May 2007 for a total of \$9.18m. The funds are to be used for an extensive drilling program on the Manbarrum Zinc-Lead-Silver Project in the Northern Territory.

On 15 March 2007 the Board of Directors of TNG resolved call a shareholders meeting to consider a number of matters including:

• Ratifying the share placement and option underwriting agreement referred to above.
• A change of name to TNG Ltd.
• The issue of options to Directors and management.
• To distributing to shareholders the majority of the 16.3m shares it owns in Batavia Mining Ltd ("BTV") and the 15.1m shares and 7.5m warrants that it owns in Thor Mining PLC ("THR").

Directors' Declaration

In the opinion of the directors of Tennant Creek Gold Limited ("the Company"):

• $\mathbf{1}$ the financial statements and notes set out on pages 10 to 19, are in accordance with the Corporations Act 2001, including:
• (a) giving a true and fair view of the financial position of the consolidated entity as at 31 December 2006. and of its performance, as represented by the results of its operations and its cash flows, for the half year ended on that date: and
• (b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and
• $\overline{2}$ there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors.

John W Barr

∕Chairman

16 March 2007

Independent auditor's review report to the members of Tennant Creek Gold Limited

Report on the Financial Report

We have reviewed the accompanying half-year financial report of Tennant Creek Gold Limited, which comprises the consolidated interim balance sheet as at 31 December 2006, income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, a statement of accounting policies and other explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the half-year's end or from time to time during the half-year.

Directors' Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the halfyear financial report in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRF 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including; giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and its performance for the halfyear ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of Tennant Creek Gold Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Tennant Creek Gold Limited is not in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date; and

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(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

$\hat{\vec{r}}$ , $\hat{\vec{r}}$

KANG
KPMG

Hebuson Partner

Perth
Dated: 16/3/67