TOWER RESOURCES PLC — Interim / Quarterly Report 2017

Aug 10, 2017

Wentworth Resources Limited Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2017 and 2016 Unaudited

Unaudited Condensed Consolidated Interim Statements of Financial Position

United States \$000s, unless otherwise stated

	Note	June 30, 2017	December 31, 2016
ASSETS
Current assets
Cash and cash equivalents		3,833	979
Trade and other receivables		9,624	6,699
Prepayments and deposits		175	187
Current portion of long-term receivables	4	11,454	12,283
		25,086	20,148
Non-current assets
Long-term receivables	4	14,608	18,034
Exploration and evaluation assets	5	46,455	45,538
Property, plant and equipment	6	92,196	93,366
Deferred tax asset		31,372	31,145
		184,631	188,083
Total assets		209,717	208,231
LIABILITIES
Current liabilities
Overdraft credit facility	7	558	-
Trade and other payables		8,234	8,675
Current portion of long-term loans	8	5,924	5,258
Current portion of other liability		1,290	1,260
		16,006	15,193
Non-current liabilities
Long-term loans	8	12,528	15,254
Other liability		1,030	1,100
Decommissioning provision		819	773
		14,377	17,127
EQUITY
Share capital		416,426	411,493
Equity reserve		26,420	26,275
Accumulated deficit		(263,512)	(261,857)
		179,334	175,911
Total liabilities and equity		209,717	208,231

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

Approved by the Board of Directors and Management

Robert P. McBean	John W.S. Bentley	Cameron Barton
Chairman of the Board	Deputy Chairman	Non-Executive Director

Neil Kelly Geoff Bury Lance Mierendorf Non-Executive Director Managing Director Chief Financial Officer

WENTWORTH RESOURCES LIMITED Unaudited Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

United States \$000s, unless otherwise stated

	Three months ended		June 30,						Six months ended		June 30,
	Note	2017	2016	2017	2016
Total revenue		2,152	3,430	5,096	6,636
Operating expenses
Production and operating		(903)	(773)	(1,813)	(1,670)
General and administrative		(1,084)	(1,556)	(2,014)	(3,068)
Depreciation and depletion	6	(654)	(1,189)	(1,548)	(2,303)
Share based compensation	10	(37)	(136)	(145)	(364)
Loss from operations		(526)	(224)	(424)	(769)
Finance income	9	370	1,072	991	2,339
Finance costs	9	(597)	(1,062)	(2,449)	(2,270)
Loss before tax		(753)	(214)	(1,882)	(700)
Deferred tax (expense)/recovery		(493)	40	227	(379)
Net loss and comprehensive loss		(1,246)	(174)	(1,655)	(1,079)
Net loss per ordinary share Basic and diluted (US\$/share)	12	(0.01)	-	(0.01)	(0.01)

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

Unaudited Condensed Consolidated Interim Statements of Changes in Equity

United States \$000s, unless otherwise stated

	Note	Number of shares	Share capital \$	Equity reserve \$	Accumulated deficit \$	Total equity \$
Balance at December 31, 2015 Net loss and comprehensive loss Share based compensation Balance at June 30, 2016	10	169,534,969 - - 169,534,969	411,493 - - 411,493	25,683 - 364 26,047	(256,765) (1,079) - (257,844)	180,411 (1,079) 364 179,696
Balance at December 31, 2016 Net loss and comprehensive loss Share based compensation Issue of share capital Share issue costs, net of tax Balance at June 30, 2017	10 11 11	169,534,969 - - 16,953,496 - 186,488,465	411,493 - - 5,527 (594) 416,426	26,275 - 145 - - 26,420	(261,857) (1,655) - - - (263,512)	175,911 (1,655) 145 5,527 (594) 179,334

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

Unaudited Condensed Consolidated Statements of Cash Flows

United States \$000s unless otherwise stated

	Three months ended		June 30	Six months ended June 30,
	Note	2017	2016	2017	2016
Operating activities
Net loss for the period		(1,246)	(174)	(1,655)	(1,079)
Adjustments for:
Depreciation and depletion	6	654	1,189	1,548	2,303
Finance costs/(income), net	9	227	(10)	1,458	(69)
Deferred tax expense/(recovery)		493	(40)	(227)	379
Share based compensation	10	37	136	145	364
Change in non-cash working capital	13	(827)	(88)	(1,851)	(1,027)
Net cash (utilized in)/generated from operating
activities		(662)	1,013	(582)	871
Investing activities
Additions to evaluation and exploration assets	13	(506)	-	(950)	-
Additions to property, plant and equipment	13	(174)	(9)	(391)	(9)
Reductions of long-term receivable		1,411	2,699	2,400	5,295
Net cash from investing activities		731	2,690	1,059	5,286
Financing activities	11
Issue of share capital, net of issue costs	8	4,933	-	4,933	-
Principal payments Debt restructuring fee	8	(2,000) -	(1,000) -	(2,014) (83)	(1,000) -
Draw on overdraft credit facility	7	558	-	558	-
Interest paid	8	(182)	(251)	(966)	(1,024)
Payment of other liability		-	(221)	(51)	(594)
Net cash from/ (used in) financing activities		3,309	(1,472)	2,377	(2,618)
Net change in cash and cash equivalents		3,378	2,231	2,854	3,539
Cash and cash equivalents, beginning of the period		455	4,054	979	2,746
Cash and cash equivalents, end of the period		3,833	6,285	3,833	6,285

The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

1. Nature of business

Wentworth Resources Limited ("Wentworth" or the "Company") is an East Africa-focused upstream oil and natural gas company. These unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries (collectively referred to as "Wentworth Group of Companies" or the "Group"). The Company is actively involved in oil and gas exploration, development and production operations. Wentworth is incorporated in Canada and shares of the Company are widely held and listed on the Oslo Stock Exchange (ticker: WRL) and the AIM of the London Stock Exchange (ticker: WRL). The Company's principal place of business is located at 3210, 715 - 5 avenue SW in Calgary, Canada. The Company maintains offices in Dar es Salaam, Tanzania and Maputo, Mozambique.

2. Basis of presentation and credit risk

Basis of presentation and statement of compliance

These unaudited condensed consolidated interim financial statements have been prepared by management in accordance with International Accounting Standard 34, "Interim Financial Reporting". The preparation of interim financial statements 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 expenses. Actual results may differ from these estimates.

In preparing these unaudited condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year ended December 31, 2016. These unaudited condensed consolidated interim financial statements have been prepared following the same accounting policies as the annual audited consolidated financial statements for the year ended December 31, 2016 and should be read in conjunction with the annual audited consolidated financial statements and the notes thereto. These unaudited condensed consolidated interim financial statements were approved by the Board of Directors on August 9, 2017 and have been reviewed by the Company's auditors. The disclosures provided below are incremental to those included in the 2016 annual consolidated financial statements.

Credit risk

The Company's ongoing exposure to receivables from Tanzania Electricity Supply Company Limited ("TANESCO"), the state power company, relates to the gas sales from the Mnazi Bay Concession to an 18 megawatt gas-fired power plant (Mtwara plant") located in Mtwara, Tanzania. At June 30, 2017, the Mnazi Bay Concession partners were owed eleven months of invoices for gas sales made to TANESCO, with \$1,900 representing sales revenue of \$1,040 and Company's share of TPDC sales revenue to recover long-term receivable of \$860 (December 31, 2016 - \$2,159 representing sales revenue of \$1,179 and Company's share of TPDC sales revenue to recover long-term receivable of \$980). Three months invoices totalling \$510, were received subsequent to quarter end. Subject to the 2012 sale of the Mtwara plant to TANESCO, timing of payment of invoices by TANESCO for gas sales has been unpredictable. Although payments of invoices range from when invoices are due to up to sixteen months after the payment due date, management believes a provision for doubtful accounts is not required as Tanesco has, on average, been settling invoices between eleven and twelve months. The Company continues to be engaged in ongoing discussions with TANESCO to accelerate payment of amounts past due.

The Company sells natural gas to Tanzania Petroleum Development Company ("TPDC"), the operator of the transnational gas pipeline in Tanzania under a long-term gas sales agreement. Credit risk relating to sales to TPDC is substantially mitigated through a two-part payment guarantee structure which involves i) a funded prepayment amount of approximately four to five months of gas deliveries at current sales volumes which has been received and is held by the operator of the Mnazi Bay Concession and ii) once formally established, a replenish able letter of credit. At June 30, 2017, five months gas sales invoices totalling \$7,589 representing sales revenue of \$4,153 and Company's share of TPDC sales revenue to recover long-term receivable of \$3,436 were outstanding. One-month invoice totalling \$901 net to Wentworth was paid subsequent to quarter end.

United States \$000s unless otherwise stated

2. Summary of accounting policies (continued)

Future accounting pronouncements

At the date of these financial statements the standards and interpretations listed below were issued but not yet effective. The adoption of these standards may result in future changes to existing accounting policies and disclosures. The Company is currently evaluating the impact that these standards will have on results of operations and financial position.

IFRS 15 - Revenue from Contracts with Customers, which replaces IAS 18 "Revenue," IAS 11 "Construction Contracts," and related interpretations, was issued in May 2014 with effective date January 1, 2018. The standard establishes a new five-step model that will apply to revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. An entity recognizes revenue when a performance obligation is satisfied, i.e. when control over the goods or services underlying the particular performance obligation is transferred to the customer.

The Company has commenced the process of reviewing sales contracts with its two customers (TPDC and TANESCO) to determine the extent of the impact, if any, that this standard will have on the consolidated financial statements. The evaluation will be completed during 2017.

IFRS 16 - Leases, which replaces IAS 17 Leases, was issued in January 2016 with effective date January 1, 2019. IFRS 16 requires lessees to recognize most leases on the statement of financial position. The standard provides using a single recognition and measurement model for leases with required recognition of assets and liabilities for most leases. Certain short-term leases (less than 12 months) and leases of low-value assets are exempt from the requirements and may continue to be treated as operating leases.

The evaluation of the impact for Wentworth has not been completed at this stage.

IFRS 9 – Financial Instruments, which includes new requirements for the classification and measurement of financial assets, was issued in July 2014 with an effective date of January 21, 2018 and amends the impairment model and outlines a new general hedge accounting standard. The Company is evaluating the impact of this standard on the consolidated financial statements.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

3. Segment information

Net loss for the three months ended June 30, 2017

	Tanzania Operations	Mozambique Operations	Corporate	Consolidated
Natural gas sales	2,152	-	-	2,152
Production and operating	(903)	-	-	(903)
General and administrative	(477)	(2)	(605)	(1,084)
Depreciation and depletion	(651)	-	(3)	(654)
Other	(51)	-	(213)	(264)
Total segment income/(expenses)	70	(2)	(821)	(753)
Deferred tax expense	(493)	-	-	(493)
Net loss	(423)	(2)	(821)	(1,246)

Capital additions for the three months ended June 30, 2017

Net additions to exploration and	-	460	-	460
evaluation assets Net additions to property, plant and equipment	154	-	-	154

Net income/(loss) for the six months ended June 30, 2017

Natural gas sales	5,096	-	-	5,096
Production and operating	(1,813)	-	-	(1,813)
General and administrative	(920)	(8)	(1,086)	(2,014)
Depreciation and depletion	(1,544)	-	(4)	(1,548)
Other	(1,362)	-	(241)	(1,603)
Total segment expenses	(543)	(8)	(1,331)	(1,882)
Deferred tax expense	227	-	-	227
Net loss	(316)	(8)	(1,331)	(1,655)
Selected balances at June 30, 2017
Current assets	21,261	221	3,604	25,086
Long-term receivables	14,608	-	-	14,608
Exploration and evaluation assets	8,128	38,327	-	46,455
Property, plant and equipment assets	92,182	-	14	92,196
Deferred tax asset	31,372	-	-	31,372
Current liabilities	15,562	179	265	16,006
Non-current liabilities	14,377	-	-	14,377

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

3. Segment information (continued)

Capital additions for the six months ended June 30, 2017

	Tanzania Operations	Mozambique Operations	Corporate	Consolidated
Additions to exploration and evaluation assets	-	917	-	917
Additions to property, plant and equipment assets	378	-	-	378

Net income/(loss) for the three months ended June 30, 2016

Natural gas sales	3,430	-	-	3,430
Production and operating	(773)	-	-	(773)
General and administrative	(721)	(229)	(606)	(1,556)
Depreciation and depletion	(1,167)	-	(22)	(1,189)
Other	(6)	-	(120)	(126)
Total segment expenses	(2,667)	(229)	(748)	(3,644)
Deferred tax recovery	40	-	-	40
Net income/(loss)	803	(229)	(748)	(174)

Capital additions for the three months ended June 30, 2016

Additions to exploration and	12	918	-	930
evaluation assets Additions to property, plant	1,220	-	9	1,229
and equipment assets

Net income/(loss) for the six months ended June 30, 2016

Natural gas sales	6,636	-	-	6,636
Production and operating	(1,670)	-	-	(1,670)
General and administrative	(1,520)	(384)	(1,164)	(3,068)
Depreciation and depletion	(2,260)	-	(43)	(2,303)
Other	36	-	(331)	(295)
Total segment expenses	(5,414)	(384)	(1,538)	(7,336)
Deferred tax expense	(379)	-	-	(379)
Net income/(loss)	843	(384)	(1,538)	(1,079)

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

3. Segment information (continued)

Selected balances at June 30, 2016

	Tanzania Operations	Mozambique Operations	Corporate	Consolidated
Current assets	25,684	171	916	26,771
Long-term receivables	18,423	-	-	18,423
Exploration and evaluation assets	8,118	36,135	-	44,253
Property, plant and equipment assets	94,551	-	25	94,576
Deferred tax asset	33,962	-	-	33,962
Current liabilities	19,109	61	323	19,493
Non-current liabilities	18,796	-	-	18,796
Capital additions for the six months ended June 30, 2016
Additions to exploration and evaluation assets	17	1,095	-	1,112

1,702 - 9 1,711

4. Long-term receivables

Additions to property, plant and equipment assets

	Balance at June 30, 2017	Balance at December 31, 2016
TPDC receivable (i)	20,912	24,836
Tanzanian Government receivable (ii)	5,150	5,481
	26,062	30,317
Current portion TPDC receivable (i)	11,454	12,283
Long-term portion TPDC receivable (i)	9,458	12,553
Tanzanian Government receivable (ii)	5,150	5,481
	14,608	18,034

i) TPDC receivable

As at June 30, 2017, the undiscounted receivable from TPDC is \$23,675 (\$27,153 at December 31, 2016).

Balance of amortized cost at December 31, 2016	24,836
Accretion	770
Change in estimated timing of receipt	(872)
Retained gas revenue to offset receivable	(4,369)
Share of TPDC Mnazi Bay Concession costs paid by the Company	547
Balance of amortized cost at June 30, 2017	20,912

The fair value of the TPDC receivable at June 30, 2017 calculated using an 8.25% discount rate (2016 - 8.25%) was \$21,715 (December 31, 2016 - \$25,413).

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

4. Long-term receivables (continued)

ii) Tanzanian Government receivable

As at June 30, 2017 the undiscounted Tanzanian Government receivable is \$6,511 (December 31, 2016 - \$6,511).

Balance of amortized cost at December 31, 2016	5,481
Accretion	154
Change in estimated timing of receipt	(485)
Balance of amortized cost at June 30, 2017	5,150

The fair value of the Tanzania Government receivable at June 30, 2017 is calculated using an 8.25% discount rate (2016 - 8.25%) was \$5,305 (December 31, 2016 - \$5,601).

5. Exploration and evaluation assets ("E&E")

Cost
Balance at December 31, 2016	45,538
Additions	917
Balance at June 30, 2017	46,455

6. Property, plant and equipment ("PP&E")

	Natural gas properties	Office and other equipment	Total
Cost
Balance at December 31, 2016	101,797	596	102,393
Additions	378	-	378
Balance at June 30, 2017	102,175	596	102,771
Accumulated depreciation and depletion Balance at December 31, 2016 Depreciation and depletion Balance at June 30, 2017	(8,448) (1,544) (9,992)	(579) (4) (583)	(9,027) (1,548) (10,575)
Carrying amounts December 31, 2016 June 30, 2017	93,349 92,183	17 13	93,366 92,196

7. Overdraft credit facility

During 2017, the Company secured a \$2,500 overdraft credit facility with TIB Corporate Bank (the "TIB Corp"). The overdraft facility has an interest rate of the lender's base lending rate minus 1% per annum to be paid monthly. At June 30, 2017, the lender's base lending rate was 9%. During the second quarter of 2017, \$558 was drawn from the overdraft credit facility.

Security provided to the lender includes a debenture over the fixed and floating assets of the Company's Tanzanian assets and a deed of assignment of 20% of the revenue and cash flow from sales of natural gas from the Tanzanian assets.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

8. Long-term loans

Principal balance as at December 31, 2016	20,667
Loan repayments	(2,014)
Principal balance as at June 30, 2017	18,653
Carrying amount of long-term loans at June 30, 2017	18,452
Current	5,924
Non-current	12,528
	18,452

During the three and six months ended June 30, 2017, the Company incurred interest expense, inclusive of amortization of financing costs, of \$389 and \$875 respectively (2016 - \$647 and \$1,207 respectively). A total of \$182 and \$966 was settled in cash for the three and six months ended June 30, 2017 (2016 - \$251 and \$1,024 respectively).

The carrying amount of the long-term loan of \$18,452 includes \$201 (net of amortization) relating to transaction costs and a fee to restructure the principal payments. At June 30, 2017, the carrying amount of the credit facilities approximates its fair value as the loan's effective interest rate approximates market rates.

The \$20,000 credit facility

During the quarter, the Company executed amendments to the credit facility agreement which include the restructuring of principal loan payments and the addition of the following new provisions:

• the addition of a Debt Service Coverage Ratio and Long Live Coverage Ratio as financial covenants;
• a requirement to maintain a minimum cash balance;
• a cash flow waterfall procedure to ensure certain cash proceeds from gas sales are used in settling obligations in priority; and
• a prepayment fee in the event the Company decides to accelerate principal payments.

The Company and the lender are in discussions on agreeing the details and processes relating to implementing and monitoring the new provisions.

The principal balance outstanding on the \$20,000 credit facility at June 30, 2017 was \$15,653 with repayment terms set out in the following table.

Principal repayment date	Repayment amount
June 30, 2017 (1)	\$1,000
July 31, 2017 (2)	\$1,332
April 30, 2018	\$1,665
July 30, 2018	\$1,665
October 30, 2018	\$1,665
January 30, 2019	\$1,666
April 30, 2019	\$1,665
July 30, 2019	\$1,666
October 30, 2019	\$1,665
January 30, 2020	\$1,664
	\$15,653

• (1) The amount due on June 30, 2017 was paid in July 2017.
• (2) The Company is in ongoing discussions with the lender to settle the amount due on July 31, 2017 during August 2017 to coincide with expected receipts of outstanding gas receivables.

WENTWORTH RESOURCES LIMITED Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

8. Long-term loans (continued)

The \$6,000 credit facility

The principal balance outstanding on the \$6,000 credit facility at June 30, 2017 was \$3,000 with repayment terms set out in the following table.

Principal repayment date	Repayment amount
December 8, 2017	\$1,000
June 8, 2018	\$1,000
December 8, 2018	\$1,000
	\$3,000

9. Finance income and finance costs

	Three months ended June 30,		Six months ended June 30,
	2017	2016	2017	2016
Finance income
Accretion – TPDC receivable (Note 4)	292	956	770	2,110
Accretion – Tanzanian Government receivable (Note 4)	78	116	154	229
Change in estimates – other liability	-	-	67	-
	370	1,072	991	2,339
Finance costs
Change in estimates – TPDC receivable (Note 4)	-	(646)	(872)	(866)
Change in estimates – Tanzanian Government receivable (Note 4)	-	-	(485)	-
Accretion – decommissioning provision	(23)	(47)	(46)	(94)
Accretion – other liability	(78)	297	(78)	(64)
Interest expense	(389)	(647)	(875)	(1,207)
Foreign exchange loss	(107)	(19)	(93)	(39)
	(597)	(1,062)	(2,449)	(2,270)

WENTWORTH RESOURCES LIMITED Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

10. Share based compensation

Movement in the total number of share options outstanding and their related weighted average exercise prices are summarized as follows:

	Number of options	Weighted average exercise price at June 30, 2017
Outstanding at December 31, 2016 and June 30, 2017	10,600,000	0.51

Share based payment charge

During the six months ended June 30, 2017, no options were granted, exercised or forfeited (2016 – 1,000,000 options were forfeited, no options were granted and exercised).

During the three and six months ended June 30, 2017, a total of \$37 and \$145 respectively (2016 - \$136 and \$364 respectively) in share based compensation was expensed with an offsetting charge to equity reserve.

The following table summarizes share options outstanding and exercisable at June 30, 2017:

			Outstanding	Exercisable
Exercise price (NOK)	Exercise price (US\$) (i)	Number of options	Weighted average remaining life (years)	Number of options
3.15	0.37	1,000,000	3.3	1,000,000
3.52	0.42	500,000	4.5	500,000
3.60	0.43	2,300,000	3.3	2,300,000
3.85	0.46	2,000,000	8.5	666,671
4.08	0.48	250,000	5.8	250,000
4.70	0.55	200,000	6.9	200,000
4.90	0.58	350,000	5.2	350,000
5.18	0.61	3,500,000	6.7	3,500,000
5.75	0.68	500,000	3.8	500,000
		10,600,000	5.3	9,266,671

(i) The US Dollar to Norwegian Kroner exchange rate used for determining the exercise price at June 30, 2017 is 0.11896.

The weighted average exercise price of options that are exercisable at June 30, 2017 is US\$0.52 (NOK 4.36).

11. Share capital

On May 23, 2017, the Company completed a private placement and issued 16,953,496 new common shares, for cash consideration of \$0.326 (GBP 0.25, NOK 2.73) per share for gross proceeds of \$5,527 million (GBP 4.24 million or NOK 46.28 million). Following the private placement offering, the Company had 186,488,465 common shares outstanding.

Expenses incurred in relation to the private placement offering were \$594, net of tax.

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

12. Per share amounts

Basic and diluted per share amounts

The calculation of loss per share for the three and six months ended June 30, 2017 is based on a loss attributable to shareholders of the Company of \$1,246 and \$1,655 respectively. (2016 – \$174 and \$1,079 respectively). Share options were anti-dilutive for both periods due to the loss.

	Three months ended		Six months ended June 30,
	2017	2016	2017	June 30, 2016
Weighted average number of shares outstanding	176,614,451	169,534,969	173,094,267	169,534,969
Dilutive weighted average number of shares outstanding	176,614,451	169,534,969	173,094,267	169,534,969

13. Supplemental cash flow information

Cash additions from investing activities in the Statements of Cash Flows consists of the following:

	Exploration and evaluation	Property, plant and equipment	Long-term receivable
Three months ended June 30, 2017
Total additions/(reductions)	460	154	(1,567)
Change in non-cash investing activities	-	-	156
Change in non-cash working capital	46	20	-
Cash additions/(reductions)	506	174	(1,411)
Three months ended June 30, 2016
Total additions/(reductions)	930	1,229	(2,473)
Change in non-cash working capital	(930)	(1,220)	(226)
Cash additions/(reductions)	-	9	(2,699)
Six months ended June 30, 2017
Total additions/(reductions)	917	378	(3,822)
Change in non-cash investing activities	-	-	1,422
Change in non-cash working capital	33	13	-
Cash additions/(reductions)	950	391	(2,400)
Six months ended June 30, 2016
Total additions/(reductions)	1,112	1,711	(5,113)
Change in non-cash working capital	(1,112)	(1,702)	(182)

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

United States \$000s unless otherwise stated

Cash additions/(reductions)	-	9	(5,295)

13. Supplemental cash flow information (continued)

Change in non-cash working capital from operating activities consists of the following:

	Three months ended June 30			Six months ended June 30,
	2017	2016	2017	2016
Change in non-cash working capital:
Trade and other receivables	90	242	1,504	1,952
Prepayments and deposits	27	(956)	(12)	(583)
Trade and other payables	710	802	359	(342)
	827	88	1,851	1,027

KPMG LLP 205 5th Avenue SW Suite 3100 Calgary AB T2P 4B9 Telephone (403) 691-8000 Fax (403) 691-8008 www.kpmg.ca

INDEPENDENT AUDITORS' REPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS

To the shareholders of Wentworth Resources Limited

Introduction

We have reviewed the accompanying condensed consolidated interim financial statements of Wentworth Resources Limited ("the Company"), which comprise:

• the condensed consolidated statement of financial position as at June 30, 2017;
• the condensed consolidated statements of loss and comprehensive loss for the three and six-month periods ended June 30, 2017 and 2016;
• the condensed consolidated statements of cash flows for the three and six-month periods ended June 30, 2017 and 2016;
• the condensed consolidated statements of changes in shareholders' equity for the sixmonth periods ended June 30, 2017 and 2016; and
• notes to condensed consolidated interim financial statements.

Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with IAS 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, 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 International Standards on Auditing 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, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements as at June 30, 2017, are not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'.

Chartered Professional Accountants

August 9, 2017 Calgary, Canada