VYSARN LIMITED — Interim / Quarterly Report 2008

Mar 13, 2008

Interim Report – 31 December 2007

(Formerly Macquarie Mining Limited) (ABN 41 124 212 175)

Macquarie Harbour Mining Limited ABN 41 124 212 175

Contents	Page
Corporate Directory	3
Directors Report	4
Auditors’ Independence Declaration	7
Financial Reports	8
Directors’ Declaration	17
Independent Audit Report to the Members	18

| Interim Report – 31 December 2007

2

Macquarie Harbour Mining Limited ABN 41 124 212 175

Corporate Directory

Directors

Basil Conti ( Chairman ) Frank Rogers ( Managing Director) Benjamin Mead Peter Robertson Dr Neil Allen

Secretary

Jade D’Andrilli

Share Register

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153

Auditor

BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street Subiaco WA 6008

Solicitors

Pullinger Readhead Lucas Level 2, Fortescue House 50 Kings Park Road West Perth WA 6005

Registered Office in Australia

Level One, 20 Kings Park Road West Perth WA 6005 phone: +61 8 9321 6777 facsimile: +61 8 9324 1293 email: info@mhml.com.au website: www.mhml.com.au

Interim Report – 31 December 2007 |

3

Macquarie Harbour Mining Limited ABN 41 124 212 175

Directors Report

Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Macquarie Harbour Mining Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2007.

Directors

The following persons were directors of Macquarie Harbour Mining Limited during the whole of the half-year and up to the date of this report:

B A Conti F A Rogers B W Mead N R Allen P L A Robertson

Principal activities

During the period the principal activities of the Group consisted of exploration of gold and other mineral resources.

Dividends

No dividends were paid to members during the financial period and the directors do not recommend the payment of a dividend.

Review of operations

(a) Income statement

	Revenues $	Results $
Revenue from continuing operations Loss before income tax expense Income tax expense Loss attributable to members of Macquarie Harbour Mining Limited	3,403	-
		(252,998) -
		(252,998)

(b) Comments on the operations

Since 14 December 2007, the Company has undertaken a majority of exploration efforts on EL2/2007, which contains a number of gold targets known collectively as the Gladstone Gold Project. An RC Drilling programme has commenced in the region, building upon several group reconnaissance and rock chip sampling programs, of which the initial assaying results are yet to be received.

| Interim Report – 31 December 2007

4

Macquarie Harbour Mining Limited ABN 41 124 212 175

Directors Report

Review of operations (continued)

On the West Coast three new tenements EL61/2007, EL62/2007 and EL63/2007 have been applied for to cover potential extensions of the targeted regional mineral structures and to provide strategic access to areas that could be important for infrastructure should a commercially viable operation be found on the original leases.

The geology of the new tenements under application lie over mesoproterozoic, orthoquartzite, mudstones, siltstones and siliceous conglomerates. Further, EL62/2007 contains a significant magnetic anomaly north from Asbestos Point to Coal Head. This tenement was applied for to provide coverage for any extensions to mineralization associated with the nickeliferous ultramafic rocks at Asbestos Point running north under Macquarie Harbour.

The new areas applied for on the West Coast all lie within the Southwest Conservation Area as do all the original tenements owned by MHM. The same rules will apply to the new applications as for the other ground held by the Company. During the application phase no objections were received from any party.

A further tenement in the North East, EL66/2007 was applied for through a Government tender process and was targeted because it contained previous gold and tin workings and lay adjacent to the Company’s existing tenement EL2/2007 and could contain extensions to any mineralization found.

The geology of the new application in the North East is identical to that on the Company’s existing tenements in that area. It comprises of the Mathinna sedimentary sequence of Silurian age intruded by Devonian granite bodies that are know to be the generators of both the gold and the tin. This sequence is cross-faulted and old records show that the quartz veining could be associated with this faulting with the gold hosted within particular facies of the Mathinna sequence.

The tenement lies on both private and Government land and as it was applied for under the statutory tender process as an existing tenement only the normal operational caveats apply to preapproval of works.

Auditor’s independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 7.

Interim Report – 31 December 2007 |

5

Macquarie Harbour Mining Limited ABN 41 124 212 175

Directors Report

Auditor

BDO Kendalls Audit & Assurance (WA) Pty Ltd continues in office in accordance with section 307C of the Corporations Act 2001.

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

==> picture [98 x 57] intentionally omitted <==

B A Conti Director

Perth, Western Australia 13 March 2008

| Interim Report – 31 December 2007

6

Macquarie Harbour Mining Limited ABN 41 124 212 175

Auditor’s Independence Declaration

==> picture [452 x 613] intentionally omitted <==

Interim Report – 31 December 2007 |

7

Macquarie Harbour Mining Limited ABN 41 124 212 175

Financial Reports – 31 December 2007

Contents	Page
Financial Report
Consolidated Income Statement	9
Consolidated Balance Sheet	10
Consolidated Statement of Recognised Income and Expense	11
Consolidated Cash Flow Statement	12
Notes to Financial Statements	13
Directors’ Declaration	17
Independent Audit Report to the Members	18

| Interim Report – 31 December 2007

8

Macquarie Harbour Mining Limited ABN 41 124 212 175

Consolidated Income Statement

For the half-year ended 31 December 2007

Notes	Half-year 2007 $
Revenue from continuing operations Administrative expenses Consulting Expenses Depreciation and amortisation expense Option expense Other expenses Results from operating activities Loss before income tax expense Income tax expense Loss after income tax expense Loss attributable to members of Macquarie Harbour Mining Ltd Basic and diluted earnings per share	3,403 (25,666) (180,000) (2,555) (97,000) (48,180)
	(349,998)
	(349,998) -
	(349,998)
	(349,998)
	Cents (0.01)

The above Consolidated Income Statement should be read in conjunction with the accompanying notes.

Interim Report – 31 December 2007 |

9

Macquarie Harbour Mining Limited ABN 41 124 212 175

Consolidated Balance Sheet

As at 31 December 2007

Notes	31 December 30 June 2007 2007 $ $
Current assets Cash and cash equivalents Trade and other receivables Total current assets Non-current assets Exploration and evaluation Property, plant and equipment Deferred assets Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Total current liabilities Non-current liabilities Deferred tax liabilities Total non-current liabilities Total liabilities Net assets Equity Contributed equity 3 Share based payments reserve Accumulated losses Total equity	4,754,083 238,417 45,504 16,043
	4,799,587 254,460
	193,922 98,238 113,255 11,238 - 22,300 5,326 5,326
	312,503 137,102
	5,112,090 391,562
	115,334 85,753
	115,334 85,753
	8,846 8,846
	8,846 8,846
	124,180 94,599
	4,987,910 296,963
	5,252,467 442,455 230,933 - (495,490) (145,492)
	4,987,910 296,963

The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.

| Interim Report – 31 December 2007

10

Macquarie Harbour Mining Limited ABN 41 124 212 175

Consolidated Statement of Recognised Income and Expense

For the half-year ended 31 December 2007

Notes	31 December 30 June 2007 2007 $ $
Total equity at the beginning of the financial period Loss for the period Total recognised income and expense for the period Transactions with equity holders in their capacity as equity holders: Contributions of equity net of transaction costs Share based payments reserve Total equity at the end of the financial period	296,963 - (349,998) (145,492)
	(53,035) (145,492)
	4,810,012 442,455 230,933 -
	4,987,910 296,963

The above Consolidated Statement of Recognised Income and Expense should be read in conjunction with the accompanying notes.

Interim Report – 31 December 2007 |

11

Macquarie Harbour Mining Limited ABN 41 124 212 175

Consolidated Cash Flow Statement

For the half-year ended 31 December 2007

Notes	Half-year 2007 $
Cash flows from operating activities Payments to suppliers and employees Interest received Net cash outflow from operating activities Cash flows from investing activities Payments for plant and equipment Payments for exploration properties Exploration and evaluation expenditure Proceeds from disposal of non current assets Net cash outflow from investing activities Cash flows from financing activities Proceeds from issues of securities Net cash inflows from financing activities Net increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period	(248,639) 3,397
	(245,242)
	(104,664) (34,550) (71,349) 100
	(210,463)
	4,971,371
	4,971,371
	4,515,666 238,417
	4,754,083

The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.

| Interim Report – 31 December 2007

12

Macquarie Harbour Mining Limited ABN 41 124 212 175

Notes to the Financial Statements

For the period ended 31 December 2007

1 Summary of significant accounting policies

This general purpose financial report for the interim half-year reporting period ended 31 December 2007 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2007 and any public announcements made by Macquarie Harbour Mining Limited 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.

Comparatives

These financial statements have been prepared for the period 1 July 2007 to 31 December 2007. As this is the first half-yearly period of operation for the Company no comparative information is available.

2 Segment information

(i) Business segment

The Group operates predominantly in one industry. Its principal activities are those of prospecting and mineral exploration.

(ii) Geographical segment

The Group operates only in Australia.

Interim Report – 31 December 2007 |

13

Macquarie Harbour Mining Limited ABN 41 124 212 175

Notes to the Financial Statements

For the period ended 31 December 2007

3 Equity securities issued

(a) Share capital	2007 Shares	2006 Shares	2007 $	2006 $
Ordinary shares – fully paid	54,995,760	24,250,010	5,386,400	442,455

(b) Movement in ordinary share capital

(b) Movement in ordinary share capital
Date Details	Number of shares Issue price $	$
1 March 2007 Placement of shares 30 April 2007 Placement of shares 25 May 2007Shares issued pursuant to share sale agreement 31 May 2007 Placement of shares Less: Transaction costs arising on issue of shares	10 1.00 7,000,000 0.001 13,000,000 0.001 4,250,000 0.10 24,250,010	10 7,000 13,000 425,000 (2,555)
		442,455

(c) Movement in ordinary share capital

(c) Movement in ordinary share capital
Date Details	Number of shares Issue price $	$
7 August 2007 Placement of shares 10 August 2007 Placement of shares 7 December 2007Issue of shares pursuant to a prospectus 7 December 2007Issue of shares pursuant to broker agreement Less: Transaction costs arising on issue of shares	1,500,000 0.10 250,000 0.10 27,615,000 0.20 1,380,750 0.20 54,995,760	150,000 25,000 5,523,000 276,150 (1,164,138)
		5,252,467

(d) Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

(e) Options

At the end of the period, options over ordinary shares on issue are as shown below:

• 2,380,750 options exercisable at 20 cents and expiring 31 August 2012.

| Interim Report – 31 December 2007

14

Macquarie Harbour Mining Limited ABN 41 124 212 175

Notes to the Financial Statements

For the period ended 31 December 2007

3 Equity securities issued (continued)

(f) Movement in options

	Date			Details	Number of Options
7	December	2007	Issue of options		2,380,750

4 Business combination

Prior period

On 25 May 2007 the parent entity acquired 100% of the issued share capital of Goldstock Mining Pty Ltd.

Details of the fair value of the assets and liabilities acquired and goodwill are as follows:

(a) Summary of acquisition

(a) Summary of acquisition
	$
Purchase consideration Cash Paid 13,000,000 shares issued pursuant to share sale agreement Total purchase consideration Fair value of net identifiable assets acquired Deferred tax liability on acquisition Goodwill in subsidiary	- 13,000
	13,000
	7,640 8,846
	29,486

(b) Assets and liabilities acquired

(b) Assets and liabilities acquired
	Acquiree’s carrying amount Fair value $ $
Cash Other receivables Tenement bonds Intangible assets: formation expenses Trade payables Loan – Macquarie Harbour Mining Limited Deferred tax liability Net identifiable assets acquired	503 503 764 764 34,210 34,210 4,043 4,043 (12,233) (12,233) (34,927) (34,927) - (8,846)
	(7,640) (16,486)

Interim Report – 31 December 2007 |

15

Macquarie Harbour Mining Limited ABN 41 124 212 175

Notes to the Financial Statements

For the period ended 31 December 2007

5 Contingencies

The Group has no contingent assets or liabilities to disclose at the date of this report.

6 Events occurring after the balance sheet date

On 11 March 2008 Macquarie Harbour Mining Limited lodged a draft prospectus with the Australian Securities and Investment Commission (ASIC) to raise $274,979 by the issue of 27,497,900 options at $0.01 each.

Except for the events discussed above, no other matter or circumstance has arisen since 31 December 2007 that has significantly affected, or may significantly affect:

• (a) the Group's operations in future financial years, or

• (b) the results of those operations in future financial years, or

• (c) the Group's state of affairs in future financial years.

7 Related party share-based payments

The following options were issued to related parties as compensation benefits during the half-year. All options granted for ordinary shares in Macquarie Harbour Mining Limited which confer a right of one ordinary share for every option held.

Name/ Position	Grant Date	Number	Exercise Price	Vesting Date	Expiry Date	Underlying Share Price	Expected Volatility	Risk Free Rate
F A Rogers
(Managing	7/12/07	500,000	$0.20	31/08/12	31/08/12	$0.17	68%	6.5%
Director)
B W Mead (Director)	7/12/07	500,000	$0.20	31/08/12	31/08/12	$0.17	68%	6.5%

The amount of options expensed for the half-year ended 31 December 2007 was $48,500 to F A Rogers and $48,500 to B W Mead.

8 Dividends

No dividends were declared or paid during the half year.

| Interim Report – 31 December 2007

16

Macquarie Harbour Mining Limited ABN 41 124 212 175

Directors’ Declaration

For the half-year ended 31 December 2007

In the directors’ opinion:

• (a) the financial statements and notes set out on pages 9 to 16 are in accordance with the Corporations Act 2001, including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and of their performance for the financial period ended on that date; and

• (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and

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

==> picture [98 x 57] intentionally omitted <==

B A Conti Director

Perth, Western Australia 13 March 2008

Interim Report – 31 December 2007 |

17

Macquarie Harbour Mining Limited ABN 41 124 212 175

Independent Auditor’s Report

==> picture [452 x 627] intentionally omitted <==

| Interim Report – 31 December 2007

18

Macquarie Harbour Mining Limited ABN 41 124 212 175

Independent Auditor’s Report (continued)

==> picture [452 x 639] intentionally omitted <==

Interim Report – 31 December 2007 |

19