VOLT RESOURCES LIMITED — Interim / Quarterly Report 2012

Mar 13, 2012

Mozambi Coal Limited

A B N 2 8 1 0 6 3 5 3 2 5 3

Interim Financial Report for the half‐year ended 3 1 D e c e m b e r 2 0 1 1

MOZAMBI COAL LIMITED

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	Page
Corporate directory	1
Directors’ report	2
Auditor’s independence declaration	4
Independent auditor’s review report	5
Directors’ declaration	7
Condensed consolidated statement of comprehensive	8
income
Condensed consolidated statement of financial position	9
Condensed consolidated statement of changes in equity	10
Condensed consolidated statement of cash flows	11
Notes to the financial statements	12

MOZAMBI COAL LIMITED

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Corporate Directory

Directors

Mr Michael Griffiths – Non‐executive Chairman Mr Shiv Madan – Managing Director Mr Alex Neuling – Executive Director Mr Robert Hemphill –Non‐executive Director

Company Secretary

Mr Alex Neuling Mr Ryan Broom

Registered and Principal Administration Office

Auditors

HLB Mann Judd Level 4, 130 Stirling Street Perth WA 6000

Share Registry

Advanced Share Registry Services 150 Stirling Highway Nedlands, WA 6009 Tel: (+618) 9389 8033

Level 2, 640 Murray Street

West Perth WA 6005 PO Box 1571 WA 6872

Solicitors

Steinepreis Paganin Level 4, 16 Milligan Street Perth WA 6000

Website

www.mozambicoal.com

PO Box 1156 Nedlands WA 6909

Bankers

National Australia Bank Limited Level 1, 1238 Hay Street West Perth WA 6005

Securities Exchange Listing

Australian Securities Exchange Home Exchange: Perth, Western Australia Code: MOZ

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

Directors’ Report

The Directors of Mozambi Coal Limited present their report on the Consolidated Entity consisting of Mozambi Coal Limited (“the Company” or “MOZ”) and the entities it controlled during the half‐year ended 31 December 2011 (“Consolidated Entity” or “Group”).

Directors

The names of the Directors of MOZ in office during the half‐year and until the date of this report are:

Mr Michael Griffiths – Non‐executive Chairman Mr Shiv Madan – Managing Director Mr Alex Neuling – Executive Director

Mr Robert Hemphill – Non‐Executive Director

Principal Activities

During the period the principal activities of the Consolidated Entity were related to coal exploration in Mozambique.

Review of Operations & Changes in State of Affairs

During the 6 months to 31 December 2011, the Group continued its focus on expanding its portfolio of licences as well as exploration of its existing exploration licence areas. Highlights for the period as follows:

• Entered into an agreement to acquire a third exploration licence – 2738L (Songo)

• Completed a private placement with major shareholder Polo Resources Plc to raise $1.875m at $0.25 per share

• Completed scout drilling on 3245L (Tete West)

• Commenced scout drilling on Songo. 1,310 metres completed prior to onset of wet season

• Completed an airborne geophysical survey over all three licenses for a total of 3,775 line km

Results

The Consolidated Entity recorded a loss after tax for the half‐year ended 31 December 2011 of $997,221 (2010: $996,577).

Subsequent Events

On 21 February 2012, 734,250 performance rights issued to Directors had vested and were exercised resulting in the issue of 734,250 ordinary shares. 686,750 performance rights expired and were not exercised.

On 21 February 2012, 5,000,000 performance shares issued as consideration for the acquisition of Dugal Pty Ltd lapsed due to milestone terms not being met.

There has not been any matter or circumstance, other than as referred to above or matters disclosed elsewhere in this report, the financial statements or notes thereto, that has arisen since the end of the financial period, that has significantly affected, or may significantly affect, the operations of the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity in future financial years.

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

Directors’ Report

Future Developments

Other than as disclosed herein, the Directors believe that disclosure of further information regarding likely developments in the operations of the Consolidated Entity in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the Consolidated Entity. Accordingly, such information has not been disclosed in this report.

Auditor’s Independence Declaration

The Auditor’s independence declaration is included on page 4 of the half‐year financial report.

Signed in accordance with a resolution of the Directors made pursuant to s.306 (3) of the Corporations Act 2001 .

On behalf of the Directors

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ALEX NEULING

Director

Perth, Western Australia 14 March 2012

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Mozambi Coal Limited for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) any applicable code of professional conduct in relation to the review.

Perth, Western Australia N G NEILL 14 March 2012 Partner, HLB Mann Judd

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HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4 130 Stirling Street Perth 6000 PO Box 8124 Perth BC 6849 Western Australia. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of

International, a world-wide organisation of accounting firms and business advisers

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MOZAMBI COAL LIMITED

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Mozambi Coal Limited

Report on the Condensed Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Mozambi Coal Limited (“the company”) which comprises the condensed statement of financial position as at 31 December 2011, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant 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 end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half year financial report that is free from material misstatement, whether due to fraud or error.

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 ASRE 2410 Review of a 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 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 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of the company, 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.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4, 130 Stirling Street Perth WA 6000. PO Box 8124 Perth BC 6849 Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

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HLB Mann Judd (WA Partnership) is a member of

International, a worldwide organisation of accounting firms and business advisers.

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

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Matters relating to the electronic presentation of the reviewed half-year financial report

This review report relates to the half-year financial report of the consolidated entity for the half-year ended 31 December 2011 included on the company’s website. The company’s directors are responsible for the integrity of the company’s website. We have not been engaged to report on the integrity of this website. The review report refers only to the half-year financial report identified above. It does not provide an opinion on any other information which may have been hyperlinked to/from the half-year financial report. If users of the half-year financial report are concerned with the inherent risks arising from publication on a website they are advised to refer to the hard copy of the reviewed half-year financial report to confirm the information contained in this website version of the half-year financial report.

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 Mozambi Coal 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 2011 and of its performance for the half-year ended on that date; and

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

HLB MANN JUDD Chartered Accountants

Perth, Western Australia N G NEILL 14 March 2012 Partner

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

Directors’ Declaration

The Directors of Mozambi Coal Limited declare that:

• (a) The financial statements of the Consolidated Entity and notes thereto are in accordance with the Corporations Act 2001, and

• i. give a true and fair view of the Consolidated Entity’s financial position as at 31 December 2011 and of its performance for the half‐year ended on that date; and

• ii. comply with Accounting Standard AASB 134 “Interim Financial Reporting”, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (b) in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as when they become due and payable.

This declaration is signed in accordance with a resolution of the Directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the Directors

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ALEX NEULING Director

Perth, Western Australia 14 March 2012

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MOZAMBI COAL LIMITED

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Condensed Consolidated Statement of Comprehensive Income For the half‐year ended 31 December 2011

	31 Dec 2011 $	31 Dec 2010 $
CONTINUING OPERATIONS Revenue Office costs Corporate management costs Corporate compliance costs Evaluation expenses Impairment of exploration expenditure Share based payments Foreign exchange gain/(loss) Other expenses from ordinary activities Loss before income tax Income tax expense Loss for the half‐year from continuing operations Loss for the half‐year from discontinued operations 9 Net loss for the half‐year Other comprehensive income Exchange differences on translation of foreign operations Total comprehensive loss for the half‐year Profit attributable to: Owners of the parent Non‐controlling interests Total comprehensive income attributable to: Owners of the parent Non‐controlling interests Lossper share(centsper share)	96,250 (54,173) (365,990) (221,279) (232,028) (7,308) (33,026) 141,574 (320,216) (996,196) ‐ (996,196) (1,025) (997,221) (12,625) (1,009,846) (985,818) (11,403) (997,221) (8,840) (3,785) (12,625)	15,952 (16,882) (113,821) (133,435) ‐ ‐ (70,500) (76,325) (112,330)
		(507,341) ‐
		(507,341) (489,236)
		(996,577)
		‐
		(996,577)
		(996,577) ‐
		(996,557)
		‐ ‐
		‐
Basic loss per share Basic loss per share from continuing operations Basic loss per share from discontinued operations	(0.88) (0.88) (0.00)	(1.54) (0.78) (0.76)

The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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MOZAMBI COAL LIMITED

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Condensed Consolidated Statement of Financial Position As at 31 December 2011

Assets Note	31 Dec 2011 $	30 Jun 2011 $
Current assets Cash and cash equivalents Trade and other receivables Assets classified as held for sale Total current assets Non‐current assets Property, plant and equipment Deferred exploration expenditure 3 Total non‐current assets Total assets Liabilities	3,490,954 186,320 ‐ 3,677,274 32,929 9,748,724 9,781,653 13,458,927	3,235,888 26,846 125,000
		3,387,734
		5,055 8,985,246
		8,990,301
		12,378,035
Current liabilities Trade and other payables Amounts due under contract 4 Total current liabilities Non‐Current Liabilities Amounts due under contract 4 Total Non‐Current Liabilities Total Liabilities Net assets Equity	(561,164) ‐ (561,164) (1,861,353) (1,861,353) (2,422,517) 11,036,410	(281,551) (843,312)
		(1,124,863)
		(1,115,123)
		(1,115,123)
		(2,239,986)
		10,138,049
Issued capital 5 Reserves Accumulated losses Parent entity interest Non‐controlling interest Total equity	30,482,928 2,610,453 (21,949,253) 11,144,128 (107,718) 11,036,410	28,607,928 2,586,267 (20,963,435)
		10,230,760 (92,711)
		10,138,049

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

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MOZAMBI COAL LIMITED

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Condensed Consolidated Statement of Changes in Equity

For the half‐year ended 31 December 2011

Note Share Capital	31 Dec 2011 $	31 Dec 2010 $
At the beginning of period Shares issued Issue costs At the end of the period 5 Reserves	28,607,928 1,875,000 ‐ 30,482,928	20,718,431 65,000 (64,262)
		20,719,169
At the beginning of period Share based payments expense Exchange differences arising on translation of foreign operations At the end of the period Accumulated losses	2,586,267 33,026 (8,840) 2,610,453	385,269 70,500 ‐
		455,769
At the beginning of period Loss for the half‐year At the end of the period Non‐controlling interests At the beginning of period Loss for the half‐year Exchange differences arising on translation of foreign operations Shares issued to non‐controlling interests At the end of the period Total Equity	(20,963,435) (985,818) (21,949,253) (92,711) (11,403) (3,785) 181 (107,718)	(18,860,643) (996,577)
		(19,857,220)
		‐ ‐ ‐ ‐
		‐
At the beginning of the period At the end of the period	10,138,049 11,036,410	2,243,057 1,317,718

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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MOZAMBI COAL LIMITED

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Condensed Consolidated Statement of Cash Flows

For the half‐year ended 31 December 2011

	31 Dec 2011 $	31 Dec 2010 $
Cash flows from operating activities
Payments to suppliers and employees	(1,129,982) (1,129,982)	(515,019)
Net cash outflow from operating activities		(515,019)
Cash flows from investing activities
Payments for property, plant & equipment	(29,512) ‐ (556,690) 96,250 ‐ (489,952)	‐ 174,668 ‐ 19,672 (416,739)
Proceeds from disposal of assets classified as held for sale
Payments for exploration expenditure
Interest received
Loans advanced to thirdparties
Net cash outflow from investing activities		(222,399)
Cash flows from financing activities
Proceeds from issue of shares	1,875,000 ‐ ‐ 1,875,000 255,066 3,235,888 ‐ 3,490,954	65,000 4,000,000 (64,263)
Proceeds from share applications – shares not issued at balance date
Less share issue costspaid
Net cash inflow from financing activities		4,000,737
		3,263,319 1,421,581 (76,325)
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the period		4,608,575

The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

Notes to the Condensed Consolidated Financial Statements

For the half‐year ended 31 December 2011

1. Statement of compliance

This general purpose financial report for the interim half‐year reporting period ended 31 December 2011 has been prepared in accordance with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act 2001 , Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with AASB 134 ensures compliance with IAS 34 Interim Financial Reporting .

This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this interim financial report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

(a) Basis of preparation

This interim report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. The company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise stated.

For the purpose of the interim report, the half‐year has been treated as a discrete reporting period.

(b) Adoption of new and revised Accounting Standards

In the half‐year ended 31 December 2011, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2011.

It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

The Directors have also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half‐year ended 31 December 2011. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

(c) Critical accounting judgements and key sources of estimation uncertainty

The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the estimate is revised if it affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In the half‐year ended 31 December 2011, the directors have reassessed the estimates in respect to the timing of payments of amounts due under contract, as disclosed in Note 4.

2. Dividends

No dividend has been paid or is proposed in respect of the half‐year ended 31 December 2011 (2010: None).

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MOZAMBI COAL LIMITED

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Notes to the Condensed Consolidated Financial Statements

For the half‐year ended 31 December 2011

3. Deferred Exploration Expenditure

3. Deferred Exploration Expenditure	3. Deferred Exploration Expenditure	3. Deferred Exploration Expenditure
31 Dec 2011 30 June 2011
$ $
Opening balance 8,985,246 ‐
Additions as a result of business combinations ‐ 8,985,591
Additions as a result of acquisition of 2738L* 239,633 ‐
Expenditure during the period 531,153 349,655
Impairment (7,308) (350,000)
Closingbalance 9,748,724 8,985,246
* The Company entered into a Memorandum of Understanding (“MOU”) with Xiluva Mineral Resources Lda (“Xiluva”) for the acquisition of 2738L. The key terms of the acquisition are as follows: ‐ Payment of US$25,000 to Xiluva upon signing MOU for surface tax and bonds ‐ Payment of US$250,000 to Xiluva on submission of an application requesting the transfer of 2738L to the National Directorate of Mines in Mozambique ‐ A final payment of US$1,250,000 to Xiluva upon successful transfer of 2738L and the completion of legal and technical due diligence by Mozambi. (Refer note 8) 4. Amounts Due Under Contract
	31 Dec 2011	30 June 2011
	$	$
Current
Opening balance	(843,312)	‐
Due to vendors on acquisition of exploration licenses*	‐	(843,312)
Reclassified as non‐current^	843,312	‐
Closingbalance	‐	(843,312)
Non‐Current
Opening balance	(1,115,123)	‐
Due to vendors on acquisition of exploration licenses*	‐	(1,115,123)
Revaluation of amounts due under contract due to currency fluctuations	97,082	‐
Reclassified as non‐current^	(843,312)	‐
Closingbalance	(1,861,353)	(1,115,123)

• The Company entered into a Memorandum of Understanding (“MOU”) with Xiluva Mineral Resources Lda (“Xiluva”) for the acquisition of 2738L. The key terms of the acquisition are as follows:

• Balances represent amounts payable under contract to the vendors of exploration licences 3245L and 3246L upon satisfaction of the conditions of the contract. Under the agreement, the Group will be required to pay US$500,000 for every 50,000,000 tonnes of commercially exploitable mineral resource identified on the areas covered by the exploration licences up to a maximum of US$3,000,000.

As the Directors are confident that these amounts will be payable in the future, they have been recognised in full as liabilities. Where the expected cash outflow is expected to occur later than 12 months from balance date, the amounts have been recorded at their present value, discounted using the company’s internal rate of return.

^ Based on the current forward exploration program it is not expected that these payments will be triggered during the next twelve months, accordingly the amounts have been reclassified as non‐current.

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MOZAMBI COAL LIMITED

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Notes to the Condensed Consolidated Financial Statements

For the half‐year ended 31 December 2011

5. Contributed Equity

Movements in share capital during the current and prior periods were as follows:

Share Capital

Share Capital
	Number	$
Ordinary Shares
As at 1 July 2010	645,575,724	20,718,431
Options exercised	5,000,000	65,000
1:10 Share consolidation	(585,517,992)	‐
Costs of issue	‐	(64,262)
As at 31 December 2010	65,057,732	20,719,169
Capital raising	20,000,000	4,000,000
Issued in lieu of cash for capital raising fees	1,000,000	50,000
Consideration for Dugal Pty Ltd	20,000,000	4,000,000
Options exercised	650,000	130,000
Cost of issue	‐	(291,241)
Balance as at 30 June 2011	106,707,732	28,607,928
Private placement	7,500,000	1,875,000
Balance as at 31 December 2011	114,207,732	30,482,928

Options

The Company had the following classes of options on issue as at reporting date:

2011	Exercise Price	Expiry Date
No.
9,700,000	20c	31/12/2012*
20,000,000	25c	21/02/2014
250,000	35c	30/06/2014
250,000	45c	30/06/2014
250,000	55c	30/06/2014
2,500,000	30c	22/07/2013

• Lapsed unexercised after balance date

The options are not listed and carry no dividend or voting rights. Upon exercise, each option is convertible into one ordinary share to rank pari passu in all respects with the Company’s existing fully paid ordinary shares

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MOZAMBI COAL LIMITED

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Notes to the Condensed Consolidated Financial Statements

For the half‐year ended 31 December 2011

6. Events occurring after the reporting date

On 21 February 2012, 734,250 performance rights issued to Directors had vested and were exercised resulting in the issue of 734,250 ordinary shares. 686,750 performance rights expired and were not exercised.

On 21 February 2012, 5,000,000 performance shares issued as consideration for the acquisition of Dugal Pty Ltd lapsed due to milestone terms not being met.

There has not been any matter or circumstance, other than matters disclosed above, elsewhere in this report, the financial statements or notes thereto, that has arisen since the end of the financial period, that has significantly affected, or may significantly affect, the operations of the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity in future financial years.

7. Segment Information

Description of segments

Management has determined the operating segments based on the reports reviewed by the Board. The Board considers the business based on activity and geographical location of each segment and has determined that there are two reportable segments being; coal exploration in Mozambique and discontinued mining services. Transactions of a non‐core, one‐off nature or as part of business combinations have been disclosed as corporate unallocated segments.

Segment information provided to the board

The segment information provided to the Board for the reportable segments for the half‐year ended 31 December 2011 is as follows:

Half‐year 2011	Mozambique	Discontinued	Corporate	Intersegment	Consolidated
	Coal	mining services	unallocated	eliminations
Segment revenue	‐	‐	96,250	‐	96,250
Segment result	(45,482)	(1,025)	(950,714)	‐	(997,221)
Segment assets	1,068,257	139,972	12,029,289	221,409	13,458,927
Segment liabilities	(1,188,051)	(1,409,776)	(1,298,626)	1,473,936	(2,422,517)
Half‐year 2010	Mozambique	Discontinued	Corporate	Intersegment	Consolidated
	Coal	mining services	unallocated	eliminations
Segment revenue	‐	3,720	15,952	‐	19,672
Segment result	‐	(489,236)	(507,341)	‐	(996,577)
Segment assets	416,739	431,163	5,448,838	(844,049)	5,452,691
Segment liabilities	‐	(1,514,870)	(4,058,621)	1,438,518	4,134,973

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MOZAMBI COAL LIMITED A B N 2 8 1 0 6 3 5 3 2 5 3

Notes to the Condensed Consolidated Financial Statements

For the half‐year ended 31 December 2011

8. Commitments and contingencies

As at 31 December 2011, the Company had an amount payable to the vendors of exploration license 2738L to the value of US$1,250,000. This balance is payable upon successful transfer of the license to a company controlled by Mozambi and completion of a legal and technical due diligence by Mozambi. The Company is yet to complete the due diligence process and as such has not brought a liability to account.

The Company had no other material commitments at balance date.

9. Discontinued Operations

On 30 November 2010, shareholders approved a change in activities to become a Coal exploration company.

The loss from discontinued operations for the 6 months to 31 December 2011 is attributable to the wind down of the Mine Mixers business and miscellaneous administration expenses.

No other material transactions relating to discontinued operations occurred during the current or prior period.

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