WEEBIT NANO LTD — Interim / Quarterly Report 2012

Mar 14, 2012

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ACN 146 455 576

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Interim Financial Report for the half year ended 31 December 2011

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RADAR IRON LIMITED ACN: 146 455 576

Contents

CORPORATE INFORMATION ................................................................................ 1 DIRECTORS’ REPORT .......................................................................................... 2 AUDITOR’S INDEPENDENCE DECLARATION ........................................................ 8 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ........... 9 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................ 10 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................. 11 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS .............................. 12 NOTES TO THE FINANCIAL STATEMENTS .......................................................... 13 DIRECTORS’ DECLARATION .............................................................................. 22 INDEPENDENT AUDITOR’S REVIEW REPORT ..................................................... 23

This financial report covers the Radar Iron Ltd Group consisting of Radar Iron Ltd and its subsidiary, Radar Resources Pty Ltd. The financial report is presented in Australian dollars.

Radar Iron Ltd is a company limited by shares, incorporated and domiciled in Australia. The registered office and principal place of business is:

Radar Iron Ltd Suite 2 12 Parliament Place West Perth WA 6005

A description of the nature of the Group’s operations and its principal activities is included in the Directors’ Report on page 2, which does not form part of this financial report.

The Company has the power to amend and reissue the financial report.

RADAR IRON LIMITED ACN: 146 455 576

Corporate Information

Directors:

Alan Tough Non-Executive Chairman

Jonathan Lea Managing Director

Ananda Kathiravelu Non-Executive Director

Auditors:

MGI Perth Audit Services Pty Ltd 7/1 William Street PERTH WA 6000

Solicitors - Perth:

Kings Park Corporate Lawyers Suite 8, 8 Clive Street WEST PERTH WA 6005

Joint Company Secretaries:

Morgan Barron Phillip Wingate

Registered & Principal Office:

Suite 2, 12 Parliament Place WEST PERTH WA 6005 Telephone: + 618 9482 0580 Facsimile: + 618 9482 0505

Postal Address:

Home Securities Exchange:

Australian Securities Exchange Exchange Plaza 2 The Esplanade PERTH WA 6000 ASX Code – RAD, RADO

Share Registry:

Security Transfers Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153

P.O. Box 902 WEST PERTH WA 6872

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

Your Directors have pleasure in submitting their report on the Group; being the Company and its subsidiary, for the half year ended 31 December 2011. In order to comply with the provisions of the Corporations Act 2001, the Directors report is as follows:

DIRECTORS

The names and details of Directors in office at any time during the period were:

Alan Tough Non Executive Chairman Ananda Kathiravelu Non Executive Director Jonathan Lea Managing Director

Directors have been in office since the date of appointment to the date of this report unless otherwise stated.

PRINCIPAL ACTIVITIES

Radar Iron Limited’s (“Radar” or the “Group”) principal activities are the exploration of iron ore in the central Yilgarn Iron Ore Province of Western Australia.

RESULTS

The net loss attributable to members of the Company for the half year ended 31 December 2011 amounted to $616,899 (2010: $389,263). The net loss relates to salaries and wages, as well as administration costs relating to an ASX listed entity.

OPERATING AND FINANCIAL REVIEW

Operating Activities

Radar is focused on identifying and defining hematite and magnetite resources in the central Yilgarn district of Western Australia. The Group has an extensive package of tenements situated nearby operating hematite mines in an area rapidly being developed as the next major iron ore province in Western Australia.

Exploration during the period focussed on the resource definition drill testing of a major magnetite body at the Die Hardy Range project and drill testing of around 20 hematite targets identified in the Johnston Range and Evanston project areas.

Die Hardy Resource Drilling

Based on encouraging surface geology, drill hole data and metallurgical assessments, the Die Hardy Range magnetite was selected for the first resource drill out for Radar. Five drill sections, spaced nominally at 400m with holes 80m apart, were drilled between May and September 2011. A total of 25 holes for 7,214m of drilling was completed in the program.

The drilling was aimed at providing sufficient drill data to enable an Inferred Mineral Resource to be estimated for the prospect. Two kilometres of the 3.4km strike length were targeted in the initial drill campaign.

Modelling and mineral resource estimation for the stage 1 drilling was completed by consultant firm CSA Global in October and resulted in a JORC reportable Indicated and Inferred Mineral Resource at a 20% Fe cut-off grade of 353 million tonnes at 26.1% Fe. The mineralisation remains open along strike and at depth.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

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Figure 1: Die Hardy Range – Drill Hole Location Plan

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Figure 2: Die Hardy Range – Cross Sections 2

Modelling of the results of metallurgical properties indicates that a concentrate can be produced exceeding 69% Fe with low levels of contaminants. This indicates that the mineralisation can be treated and has excellent potential for producing a saleable concentrate.

The results reported for a 20% Fe cut-off are:

Total in‐situ Head Grade resource	Total in‐situ Head Grade resource	s at a 20% Fe cut‐off; Fresh material only	s at a 20% Fe cut‐off; Fresh material only	s at a 20% Fe cut‐off; Fresh material only	s at a 20% Fe cut‐off; Fresh material only	s at a 20% Fe cut‐off; Fresh material only	s at a 20% Fe cut‐off; Fresh material only
Classification	Million Tonnes	Fe	Al2O3	SiO2	P	S	LOI
		(%)	(%)	(%)	(%)	(%)	(%)
Total Indicated	214.9	26.7	3.4	51.0	0.1	0.5	0.7
Total Inferred	137.6	25.2	3.5	52.1	0.1	1.0	1.3
Total Indicated + Inferred	352.6	26.1	3.4	51.4	0.07	0.7	0.9

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

CSA modelled the results from Davis Tube Recovery (DTR) analyses completed on material pulverised to 80% passing 50 micron, resulting in an indicative concentrate inventory of:

Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)	Total in‐situ Upgrade resources at a 20% Fe cut‐off within Magnetite body (at Grind Procedure to produce a nominal P80 at 50 micron)
Classification	Million Tonnes	Fe	Al2O3	SiO2	P	S	MassRec
		(%)	(%)	(%)	(%)	(%)	(%)
Total Indicated	71.2	69.3	0.1	4.2	0.0	0.3	33.8
Total Inferred	40.9	69.1	0.1	4.4	0.0	0.4	33.9
Total Indicated + Inferred	112.1	69.2	0.1	4.3	0.01	0.3	33.8

The deposit outcrops as a ridge of magnetite bearing banded iron formation (BIF). The BIF is partially demagnetised to a depth of 40-50m although preliminary metallurgical test work suggests that magnetic concentration is still possible for some of the weathered material. The mineralisation dips steeply south and is exposed over a strike length of several kilometres. The reverse circulation (RC) drilling intersected massive magnetite mineralisation with widths from 100 to 300m to a depth of 350m below surface. Drilling to date has not yet fully defined the extent or the depth of mineralisation.

Following the success of the initial resource evaluation programs, Radar is planning to commence a pre-feasibility study (PFS) to optimise transport, infrastructure and mining options at Die Hardy. A number of consultant groups have been contacted with the aim of identifying the best capable of undertaking specific aspects for the PFS in 2012.

For further information regarding the Die Hardy Resource statement please refer to the announcement made on 16 November 2011 titled “Maiden 353 Mt Magnetite JORC Resource for Die Hardy”.

Johnston Range and Evanston Hematite Drilling

Multiple hematite targets (generated through a combination of geological mapping and aero-magnetic and gravity geophysical interpretation) were identified in the Johnston Range and Evanston project areas. Zones of surface hematite enrichment up to approximately 800m in length have been defined by mapping.

An RC drilling programme was completed in December 2011 with 77 holes drilled for 6,003m. The drilling tested near-to-surface zones of hematite mineralisation, mineable through shallow open pit operations. The holes were assayed at two metre intervals with the result announced to the market on 23 January 2011. Please refer to the ASX announcement titled “Hematite Drilling Results from Johnston Range and Evanston” for full details of the results of the hematite drilling.

The prospects tested lie around the Horse Well Anticline that defines the 40km long belt of banded iron formation on the Johnston Range tenements (Figure 3) and also an adjoining banded iron formation (BIF) ridge on the Evanston project. The Johnston Range comprises multiple bands of BIF and hence represents a target of several hundred linear kilometres of BIF with potential for hematite enrichment.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

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Figure 3: Johnston Range/Evanston RC Drilling - November 2011

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Figure 4: Johnston Range/Evanston Ground Magnetics

The drilling has only tested the more obvious targets at Johnston Range to date – the presence of multiple BIF bands and the variable strike length of the mineralisation means there are a significant number of potential targets generated from mapping and geophysics yet to be drill tested.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

The potential for hematite mineralisation suitable for economic extraction has been reinforced by this drilling with the indication of pods grading over 55% Fe and up to 300400m in length and 20m wide. Further drilling is required to test the strike and depth extent prior to potential resource evaluation subject to the normal drill approval process. Drilling is planned to commence in 2012.

To assist in targeting further drilling a trial programme of ground magnetics was instigated in December. Two areas in the Evanston project were selected owing to a highly magnetically variable signature. Further programmes are planned for the coming quarter. The results will be interpreted and used in conjunction with mapping and other data to define anomalous areas for future drill testing.

Regional Exploration

Regional geological reconnaissance has continued on existing Radar tenements and those acquired from Southern Cross Goldfields Limited (SXG). A number of areas have been identified as containing outcropping hematite mineralisation and magnetite potential is widespread. The focus is on identifying new hematite targets for drill testing in coming months with an aim of establishing Radar’s initial hematite resource inventory in the first half of 2012.

Corporate Activities

Radar Iron completed the acquisition of the iron rights to ground owned by Southern Cross Goldfields Limited (ASX: SXG) in July 2011. The Company paid $1.5m in cash and issued 1 million Radar Iron Ordinary Shares in consideration for the iron rights to over 900km[2] of tenement holdings in the Yilgarn area.

In October 2011 Radar completed a placement of approximately 8.3 million shares to sophisticated investor clients of FSS Advisory at a price of 30 cents each. The Placement raised $2.48M for the Company.

LIKELY DEVELOPMENTS

There are no likely developments in the operations of the Group that were not finalised at the date of this report. Further information as to likely developments in the operations of the Group and Company and likely results of those operations would in the opinion of the Directors, be likely to result in unreasonable prejudice to the Group.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for the half year ended 31 December 2011 has been received and can be found on page 8.

AUDITOR

MGI Perth Audit Services Pty Ltd continues in office in accordance with section 327 of the Corporation Act 2001.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

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

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Jonathan Lea Managing Director

Perth 15 March 2012

The information in this report accurately reflects information prepared by Competent Persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr Jonathan Lea, an employee of the Company who is a Member of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Lea has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Lea consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The potential quantity and grade of iron deposits reported as the exploration target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

The information in this report that relates to Geophysical Exploration Results at the Die Hardy Project is based on information compiled by Mr Mathew Cooper who is a member of The Australian Institute of Geoscientists. Mr Cooper is Principal Geophysicist of Core Geophysics Pty Ltd who are consultants to Radar Iron Limited. Mr Cooper has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Cooper consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report relating to exploration results, sampling data validity and quality, mineralisation density and general project descriptions at the Die Hardy Project accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It was reviewed by Aloysius G.W. Voortman of CSA Global Pty Ltd who is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Voortman has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Voortman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report relating to hematite drilling results at the Johnston Range and Evanston Projects accurately reflects information prepared by Competent Persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr Jonathan Lea, an employee of the Company who is a Member of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Lea has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Lea consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Lead auditor’s independent declaration under section 307C of the Corporations Act 2001

To the directors of Radar Iron Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the period ended 31 December 2011 there have been:

• (i) no contraventions of the auditors independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

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MGI Perth Audit Services Pty Ltd

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TJ Spooner CA FCA(UK) ACIS Director

Perth

15 March 2012

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RADAR IRON LIMITED ACN: 146 455 576

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

Note Finance income Other income Financial administration, insurance and compliance costs Consulting and contracting expenses Employee benefits expense 2 Exploration expense Administration expenses Loss before income tax expense Income tax benefit / (expense) Net loss for the period Other comprehensive income Total comprehensive loss for the period Loss attributable to the owners of the parent Total comprehensive loss for the period attributable to owners of the parent Basic and diluted loss per share - cents per share	Consolidated 31 December 2011 $ Consolidated 31 December 2010 $ 59,523 24,859 9,000 - (69,783) (46,152) (149,511) (36,229) (201,195) (304,986) (51,629) - (213,304) (26,755)
	(616,899) (389,263) - -
	(616,899) (389,263)
	- -
	(616,899) (389,263)
	(616,899) (389,263) (616,899) (389,263) (0.94) (5.03)

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

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RADAR IRON LIMITED ACN: 146 455 576

Condensed Consolidated Statement of Financial Position

As at 31 December 2011

Note ASSETS Current assets Cash and cash equivalents Other Receivables Total current assets Non-current assets Exploration and evaluation expenditure 3 Plant and equipment Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Trade and other payables Total current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 4 Option reserve Accumulated losses TOTAL EQUITY	Consolidated 31 December 2011 $ Consolidated 30 June 2011 $ 2,567,337 4,243,449 214,826 415,569
	2,782,163 4,659,018
	7,013,421 4,689,291 105,726 174,726
	7,119,147 4,864,017
	9,901,310 9,523,035
	674,732 2,458,564
	674,732 2,458,564
	674,732 2,458,564
	9,226,578 7,064,471
	8,879,549 6,355,930 1,545,658 1,290,271 (1,198,629) (581,730)
	9,226,578 7,064,471

The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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RADAR IRON LIMITED ACN: 146 455 576

Condensed Consolidated Statement of Changes in Equity

For the half year ended 31 December 2011

Note 2011 CONSOLIDATED Total equity at 1 July 2011 Total comprehensive loss for the period Transactions with equity holders: Contributions of equity, net of transaction costs 4 Share-based payments 8 Total equity at 31 December 2011 2010 CONSOLIDATED Total equity at 21 September 2010 (date of incorporation) Total comprehensive loss for the period Transactions with equity holders: Contributions of equity, net of transaction costs 4 Share-based payments 8 Total equity at 31 December 2010	Issued Option Accumulated Total Capital Reserve Losses Equity $ $ $ $ 6,355,930 1,290,271 (581,730) 7,064,471
	- - (616,899) (616,899) 2,178,619 80,233 - 2,258,852 345,000 175,154 - 520,154
	8,879,549 1,545,658 (1,198,629) 9,226,578
	- - - -
	- - (389,263) (389,263) 6,358,807 - - 6,358,807 - 957,976 - 957,976
	6,358,807 957,976 (389,263) 6,927,520

The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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RADAR IRON LIMITED ACN: 146 455 576

Condensed Consolidated Statement of Cash Flows

For the half year ended 31 December 2011

Cash flows from operating activities Receipts from customers Interest received Payments to suppliers and employees Net cash used in operating activities Cash flows from investing activities Payments for exploration expenditure Payments for plant and equipment Cash acquired on acquisition of subsidiary Payments for capitalised acquisition costs Net cash used in investing activities Cash flows from financing activities Proceeds from the issue of shares Payments for share issue costs Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	Consolidated 31 December 2011 $ Consolidated 31 December 2010 $ 13,950 - 89,191 24,859 (503,709) (143,849)
	(400,568) (118,990)
	(2,645,196) (138,411) (5,200) (12,635) - 17,679 (1,000,000) (120,000)
	(3,650,396) (253,367)
	2,564,838 7,322,900 (189,986) (670,302)
	2,374,852 6,652,598
	(1,676,112) 6,280,241 4,243,449 -
	2,567,337 6,280,241

The above Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

Radar Iron Ltd (the “Company”) is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the half year ended 31 December 2011 comprises the Company and its subsidiary (together referred to as the “Group”).

STATEMENT OF COMPLIANCE

These interim consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

This condensed interim report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2011 and any public announcements made by Radar Iron Ltd during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

This consolidated interim financial report was approved by the Board of Directors on 15 March 2012.

BASIS OF PREPARATION

The 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. All amounts are presented in Australian dollars, unless otherwise noted.

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

SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY ESTIMATES

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

In preparing this half-year report, 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 that applied to the consolidated financial report for the year ended 30 June 2011.

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS

The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial report as at and for the year ended 30 June 2011.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (CONTINUED)

In the half-year ended 31 December 2011, the Group has 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 Group 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 Group has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December 2011. The Group has decided against early adoption of any new Standards and Interpretations. 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.

NOTE 2 – LOSS BEFORE INCOME TAX EXPENSE

NOTE 2 – LOSS BEFORE INCOME TAX EXPENSE
	31 December	31 December
	2011	2010
	$	$
The following expense items are relevant in explaining the
financial performance for the period:
Wages and Salaries	142,041	89,810
Share-based payments	59,154	215,176
	201,195	304,986
NOTE 3 – DEFERRED EXPLORATION AND EVALUATION	EXPENDITURE
	31 December	30 June
	2011	2011
	$	$
Costs carried forward in respect of areas of interest in the
following phases:
Exploration and evaluation
Exploration and evaluation expenditure, at cost	7,013,421	4,689,291
Reconciliation:
A reconciliation of the carrying amounts of exploration
and evaluation expenditure is set out below:
Carrying amount at beginning of period	4,689,291	-
Acquired on acquisition of subsidiary	-	687,298
Recognised on acquisition of additional interest in mining
tenements	-	1,885,000
Additions	2,324,130	2,116,993
Carrying amount at end of period	7,013,421	4,689,291

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 3 – DEFERRED EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)

Exploration commitments

In order to maintain rights of tenure to exploration permits, the Group has certain obligations to perform minimum exploration work and expend minimum amounts of money.

These commitments may be varied as a result of renegotiations, relinquishments, farm-outs, sales or carrying out work in excess of the permit obligations. The minimum expenditure required by the Group on exploration permits during the year to 31 December 2012 is estimated below. Commitments beyond this time frame cannot be estimated reliably as minimum expenditure requirements are reassessed annually. The commitments have not been provided for in the financial report.

Within one year NOTE 4 - ISSUED CAPITAL CONSOLIDATED AND PARENT ENTITY 2011 (a) Issued and Paid Up Capital Fully paid ordinary shares (b) Movements in fully paid shares on issue Balance at start of period Shares issued in relation to capital raisings Shares issued in relation to acquisitions Capital raising costs Balance at end of period	31 December 2011 $ 205,020 2011 # 2011 $ 2010 # 2010 $ 71,162,129 8,879,549 61,880,112 6,358,807
	61,880,112 6,355,930 - - 8,282,017 2,484,605 38,989,500 7,322,900 1,000,000 345,000 22,890,612 411,809 - (305,986) - (1,375,902)
	71,162,129 8,879,549 61,880,112 6,358,807

As at 31 December 2011 the Company had a total of 47,676,704 (2010: 22,750,000) unissued ordinary shares on which options were outstanding with a weighted average exercise price of 35.71 cents (2010: 25.52).

NOTE 5 – RELATED PARTY TRANSACTIONS

The only related party transactions that occurred during the period were in the form of loans to a subsidiary, short term employee benefits, post employment benefits, share based payments and the acquisition of a subsidiary from a common controlling entity.

See Note 7 for further information of the acquisition of a subsidiary and Note 8 for further information on share based payments.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 6– SEGMENT REPORTING

Description of segments

The Group’s reportable operating segments are as follows:

1. Iron-ore exploration segment (Australia); and

2. All Other Segments, which includes the corporate & administration segment (Australia).

The Group’s operating segments have been determined with reference to the information used by the Chief Operating Decision Maker to make decisions regarding the Group’s operations and the allocation of the Group’s working capital. Due to the size and nature of the Group’s business the Board as a whole has been determined as the Chief Operating Decision Maker.

The segments disclosed in the table below have been identified as operating segments that meet any of the following thresholds:

• Segment loss greater than 10% of combined loss of loss making operating segments; and

• Segment assets greater than 10% of combined assets of all operating segments.

Each of Radar’s operating segments operates in the same geographical locations, as disclosed above.

AASB 8 Segment Reporting states that similar operating segments can be aggregated together to form one reportable segment. Radar has not aggregated any segments together under this rule.

Once reportable segments have been identified, all remaining segments that do not satisfy the thresholds are to be aggregated together to form an all other segments reporting segment. In accordance with AASB 8 Segment Reporting corporate and administration activities are included in the all other segments reporting segment.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 6– SEGMENT REPORTING (CONTINUED)

Segment Information

The following table presents the revenue and profit information regarding the segment information provided to the Board of Directors for the half-year period ended 31 December 2011.

31 December 2011 Segment revenue Segment result Unallocated expenses Results from operating activities Results from continuing operations Segment assets Segment liabilities Included within segment result: Depreciation Interestrevenue	Iron-Ore Exploration $ -	All Other Segments $ 59,523	Consolidated $ 59,523
	(75,382)	(541,517)	(616,899)
	7,053,421 527,629 - -	2,847,889 147,103 17,578 59,523	-
			(616,899)
			(616,899)
			9,901,310 674,732 17,578 59,523
31 December 2010 Segment revenue Segment result Unallocated expenses Results from operating activities Results from continuing operations Segment assets Segment liabilities Included within segment result: Depreciation Interest revenue	-	24,859	24,859
	-	(389,263)	(389,263)
	1,158,170 345,068 - -	6,221,268 106,850 678 24,859	-
			(389,263)
			(389,263)
			7,379,438 451,918 678 24,859

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 7 – ACQUISITION OF SUBSIDIARY

During the comparative period Radar acquired 100% of Radar Resources Pty Ltd, an exploration entity with tenements prospective for iron ore, for a consideration of $529,009.

Purchase consideration: Cash paid 22,690,612 shares at $0.016 12,000,000 unlisted options exercisable at 25 cents expiring on or before 30 Nov 2013 Total consideration refer to Note 8 for further details.	31 December 2010 $ 120,000 371,809 37,200
	529,009

The acquisition of Radar Resources Pty Ltd by Radar met the definition of acquisitions from entities under common control. Such acquisitions are specifically excluded from the scope of AASB 3: Business Combinations and accordingly the transaction has been accounted for at Radar Resources Pty Ltd’s Net Asset reported amount.

The net assets acquired in the business combination at the date of acquisition were as follows:

31 December 2010 Net assets acquired: Cash and cash equivalents Trade and other receivables Exploration and evaluation expenditure Property, plant and equipment Deferred tax liabilities Trade and other payables Less: non-controlling interest Goodwill on consolidation The cash outflow on acquisition is as follows: Net cash acquired with subsidiary Cash paid Net cash outflow	Acquiree’s carrying amount before business combination Fair value adjustments $ $ 17,679 - 9,240 - 687,298 - - - (127,131) - (58,077) -	Reported Value post acquisition $ 17,679 9,240 687,298 - (127,131) (58,077)
	529,009 -	529,009 -
		-
		17,679 (120,000)
		(102,321)

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 8 – SHARE BASED PAYMENTS

Share-based payment transactions

The Company has completed the following share-based payment transactions:

	Shares	Options	Shares	Options
	2011	2011	2010	2010
	$	$	$	$
1,000,000 Ordinary Shares issued in consideration
for the iron rights to tenements owned by Southern
Cross Goldfields Limited(a)	345,000	-	-	-
300,000 Unlisted Options issued to employees
under the Incentive Option Plan	-	59,154	-	-
4,000,000 Listed Options issued in consideration for
services rendered in the placement completed in
October 2011	-	116,000	-	-
22,690,612 Ordinary Shares issued in consideration	-	-
for Radar Resources Pty Ltd(b)			371,809	-
12,000,000 Unlisted Options issued in consideration	-	-
for Radar Resources Pty Ltd			-	37,200
4,000,000 Unlisted Options issued to Directors	-	-	-	181,200
750,000 Unlisted Options issued to employees	-	-
under the Incentive Option Plan			-	33,976
200,000 Ordinary Shares issued in consideration for	-	-
additional interest in mining exploration
tenements(c)			40,000	-
6,000,000 Unlisted Options issued in consideration	-	-
for Lead Manager Services relating to the IPO.			-	705,600
	345,000	**175,154 **	411,809	957,976

(a) Valued at $0.345 per share, being the closing price of Radar Iron Ltd ordinary shares on ASX on the date of issue.

(b) The transaction has been accounted for as an acquisition under common control which does not fall within the scope of AASB 3: Business Combinations. Accordingly, the transaction is recorded at the net asset value of the acquiree;

(c) Valued at $0.20 per share, being the subscription price of other Radar Iron Ltd ordinary shares allotted on the date of issue.

Expenses arising from share-based payment transactions

Total expenses arising from share-based payment transactions recognised were as follows:

300,000 Unlisted Options issued to employees under the Incentive Option Plan 4,000,000 Unlisted Options issued to directors 750,000 Unlisted Options issued to employees under the Incentive Option Plan	Consolidated 2011 $ Consolidated 2010 $ 59,154 - - 181,200 - 33,976
	59,154 215,176

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 8 – SHARE BASED PAYMENTS (CONTINUED)

The options detailed above were issued on the following terms and conditions:

Date Granted Expiry Date Exercise Price	#
3 December 2010 30 November 2013 $0.25 3 December 2010 30 November 2013 $0.25 3 December 2010 31 May 2014 $0.30 3 December 2010 31 May 2014 $0.30 16 September 2011 31 July 2014 $0.45	2,000,000 375,000 2,000,000 375,000 300,000
	5,050,000

Other share-based payment transactions

The Company completed the following share-based payment transactions during the period that have been recognised in the Condensed Statement of Financial Position:

4,000,000 Listed Options issued in consideration for services rendered in the placement completed in October 2011(a) 22,690,612 Ordinary Shares issued in consideration for Radar Resources Pty Ltd(b) 12,000,000 Unlisted Options issued in consideration for Radar Resources Pty Ltd 200,000 Ordinary Shares issued in consideration for additional interest in mining exploration tenements(c) 6,000,000 Unlisted Options issued in consideration for Lead Manager Services relating to the IPO.	Consolidated 2011 $ 116,000 - - - -	Consolidated 2010 $ - 371,809 37,200 40,000 705,600
	116,000	1,154,609

(a) Valued at $0.029 per option, being the closing price of Radar Iron Ltd listed options on ASX on the date of issue.

(b) The transaction has been accounted for as an acquisition under common control which does not fall within the scope of AASB 3: Business Combinations. Accordingly, the transaction is recorded at the net asset value of the acquiree;

• (c) Valued at $0.20 per share.

The options detailed above were issued on the following terms and conditions:

Date Granted Expiry Date Exercise Price	Issued During theperiod
3 December 2010 30 November 2013 $0.25 3 December 2010 30 November 2013 $0.25 28 December 2011 30 April 2012 $0.45	12,000,000 6,000,000 4,000,000
	22,000,000

Fair value of options granted

The fair value of unlisted options is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at valuation date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. The BlackScholes valuation is expensed over the vesting period of the particular options.

The tables below summarise the model inputs for options granted and valued using the Black-Scholes option pricing model:

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2011

NOTE 8 – SHARE BASED PAYMENTS (CONTINUED)

2011

Model Inputs	Class C ESOP Options
1. Options granted for no consideration: 2. Exercise price (cents): 3. Valuation date: 4. Expiry date: 5. Underlying security spot price at grant date (cents): 6. Expected price volatility of the company’s shares: 7. Expected dividend yield: 8. Risk-free interest rate Black & Scholes Valuationper Option(cents)	300,000 45 16 September 2011 31 July 2014 34.5 100% 0% 3.73% 19.72

NOTE 9 – CONTINGENT ASSETS & LIABILITIES

The Directors are not aware of any contingent assets or liabilities that currently affect the Group.

NOTE 10 –SUBSEQUENT EVENTS

No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in subsequent financial years.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Declaration

In the opinion of the directors of Radar Iron Limited (“the Company”):

1. The attached financial statements and notes thereto are in accordance with the Corporations Act 2001 including:

2. a. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. b. 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 period then ended.

4. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

On behalf of the board

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Jonathan Lea Managing Director Perth 15 March 2012

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Independent Auditor’s Review Report to the members of Radar Iron Limited

Report on the Interim Financial Report

We have reviewed the accompanying interim financial report of Radar Iron Limited and it’s controlled entity (the “Group”), which comprises the condensed consolidated statement of financial position as at 31 December 2011, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of accounting policies, other explanatory notes 1 to 10, and the directors’ declaration of the Group comprising the Company and the entity it controlled at the half-year end or from time to time during the interim period.

Directors’ Responsibility for the Interim Financial Report

The directors of the Company are responsible for the preparation of the interim 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 interim 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 interim 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 period ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Radar Iron Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of an interim 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.

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Radar Iron Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Group’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 Corporations Regulations 2001.

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MGI Perth Audit Services Pty Ltd

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TJ Spooner CA, FCA (UK) ACIS Director

Perth

15 March 2012

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