WEEBIT NANO LTD — Interim / Quarterly Report 2013

Mar 11, 2013

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ACN 146 455 576

Interim Financial Report for the half year ended 31 December 2012

RADAR IRON LIMITED ACN: 146 455 576

Contents

CORPORATE INFORMATION ................................................................................ 1 DIRECTORS’ REPORT .......................................................................................... 2 AUDITOR’S INDEPENDENCE DECLARATION ...................................................... 10 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................................................. 11 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................ 12 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ................. 13 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS .............................. 14 NOTES TO THE FINANCIAL STATEMENTS .......................................................... 15 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:

Nexia Perth Audit Services Pty Ltd Level 3, 88 William Street PERTH WA 6000

Solicitors - Perth:

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

Company Secretary: 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

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 2012. In order to comply with the provisions of the Corporations Act 2001, the Directors report 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 2012 amounted to $397,983 (2011: $616,899). The net loss principally 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 identification of hematite mineralisation throughout the tenement holding.

Johnston Range

Drilling, geophysics and surface mapping were completed in the Johnston Range area to better define existing mineralisation and to identify new zones for future drill testing.

The Muldoon Prospect has been drilled with sufficient density to enable resource estimation– which stands at an inferred resource of 2.1Mt at 57.6% Fe – as announced in ASX release dated 8/05/12). Recent mapping and drilling has indicated the potential for the resource to be increased with potential extensions apparent.

An RC drill programme was completed and aimed at better defining these potential extensions at the Muldoon prospect along with and first pass testing of a number of prospects. A total of 3,992m of RC drilling was completed. The drilling provided better definition of the existing Muldoon mineralisation, indicating a greater thickness to the south than previously recognised. Radar is encouraged that an increased resource may result once further geological modelling is undertaken. Best results returned for the Muldoon project included:

• 32m @ 57.7% Fe  54m @ 59.1% Fe

• 42m @ 56.9% Fe  38m @ 59.2% Fe

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

At least three significant new mineralised zones were identified, both surrounding Muldoon and also up to 6km to the north that require further drill testing. A number of encouraging isolated intercepts provided further possible targets. The best result was 22m at 56.9% Fe (refer to ASX announcement made on 05/09/12 for full details).

Radar continued metallurgical studies aimed at testing the potential for lower grade Johnston Range mineralisation to be beneficiated. The results were encouraging and indicated that the ore can be upgraded in iron content using gravity, magnetic and reverse silica flotation. The initial test work suggests that an original iron grade of 50-55% Fe is required to obtain a concentrate iron grade of >60%Fe. Iron recovery for the tests is targeted in the 55-70% range and the test work indicates that this outcome is possible. The test work is continuing.

Following the extensive drilling and surface mapping in the past year, the exploration potential for the sub DSO grade material at Johnston Range that would suit beneficiation, averaging over 50% Fe was re-estimated at:

• Potential Enriched Material : 32Mt - 55Mt at 50-65% Fe*

• Radar Iron advises that the potential quantity and grade of iron deposits reported as exploration potential 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.

Figure 1: Yilgarn Project Location Plan

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

All exploration data acquired in the past year is being assessed to determine the best targets for further drill testing, both at the Johnston Range project and other projects in the district. The potential for metallurgical upgrade will be a consideration in this review. Zones of surface hematite enrichment, of up to approximately 800m in length with potential to increase the resource inventory have been defined by mapping. It is Radar’s intention to progressively test these zones with the aim of delineating sufficient resources to justify mining by the time the port of Esperance is expanded.

Figure 2: Johnston Range Selected Drill Results Plan

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

New Tenement

E77/1961, within the Johnston Range Project area, was acquired by Radar. A total of 18 widely spaced RC drill holes were completed by a previous explorer. The best result was 10m at 58.6%Fe from an 8m down hole.

The banded iron in the tenement exhibits substantial folding and faulting and hence lies in a structurally attractive zone for mineralisation. The tenement is perceived as having the potential for a similar mineralisation style to the Muldoon prospect, with drill hole targeting is planned.

Regional Exploration

Regional geological mapping continued on Radar tenements. A number of areas have been identified as containing outcropping hematite mineralisation and magnetite potential is widespread. The focus for regional exploration remains to identify new hematite targets for potential drill testing in 2013.

An RC drill programme comprising four hole for 282m was completed at the Jackson project as a primary targeting exercise. The results indicate hematite enrichment is present in the BIF with the best internal (hole RIRC295) being 28m at 51.0% Fe (and a calcined iron grade of 57.4% Fe). While being sub DSO grade, this result provides encouragement that DSO grade material could be present in the project area and further exploration is being planned. Potential geophysical targeting tools such as gravity techniques will be assessed as a method for identifying further drill targets. Other targets remain to be tested in the Jackson project area.

At other projects, approvals have been received for drilling at Evanston and Windarling (along with Johnston Range). Substantial areas are now ready for drill testing, with 2013 pending definitive targeting based on the ongoing data review and ground magnetic interpretation.

Figure 3: Jackson Drill Hole Location Plan

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

Project Studies

It remains Radar’s objective to increase the current hematite resource base with a view to commencing mining by the time the Port of Esperance is expanded with, the support of the Western Australian Government.

It is anticipated that the higher grade material at Muldoon and elsewhere will be mined initially to generate the capital required to construct a beneficiation plant, should the recent metallurgical test work provide an economic path for enrichment.

Radar is participating in the current market sounding process, driven by the Port of Esperance, with the aim of ultimately being allocated tonnage capacity in the expanded port. A reference design for port expansion is currently in progress which is expected to be delivered to potential developers early in 2013.

A number of studies are at various stages that will feed into the mine planning and approval processes including:

• Flora/fauna studies and data collection

• A preliminary iron ore marketing study was completed by independent consultancy Iron Ore Research Pty Ltd. The finding was that the new product is saleable at a discount to the benchmark price to smaller Chinese steel mills, however studies should be carried out to test marketability to the larger steel mills, including mature markets such as Japan. This finding provides further encouragement that the Muldoon Resource quality is suitable for export.

• A completed regional desk top water resource analysis aimed at identifying water supply options for both hematite and magnetite project development.

• A transport option study – completed by independent consultants in October 2012. Results outline options for transporting material from the Johnston Range area to the rail line to the south as well as train loading options. Further work is ongoing.

• An ongoing metallurgical test work programme aimed at assessing the potential for lower grade mineralisation to be upgraded by standard processes.

• The test work has been progressively undertaken thoughout 2012 and managed by AMEC Australia Pty Ltd. The aims of the programme were to test partially mineralised hematite ores in the 45-55% Fe range to establish the potential to enrich the material to +60% Fe with a combined silica and alumina content of less than 6%. Four RC drill cutting samples from different prospects in the Johnston Range area were used for the preliminary metallurgical program.

• A significant suite of tests was performed including simple screening, magnetic separation, reverse silica flotation and heavy liquid separation to obtain an indication of the optimal method for enrichment.

• The results indicate that the samples can be upgraded in iron content using gravity, magnetic and reverse silica flotation. The initial test work suggests that an original iron grade of 50-55% Fe is required to obtain a concentrate iron grade of >60%Fe. Iron recovery for the tests is targeted in the 55-70% range and the test work indicates that this outcome is possible.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

• Radar’s preliminary review of the potential processing costs indicates that a plant size capable of 2mtpa of feed or greater may be economically feasible although more work is required following the confirmation of the detailed process required.

• Further metallurgical studies including a flotation optimisation programme will continue into 2013 aimed at identifying the optimal grind size and reagent types and quantities needed to optimise the process and reduce unit processing costs.

Die Hardy Range Project

With Radar’s current focus on defining hematite resources at the Johnston Range project, no active field work has been recently completed at the Die Hardy magnetite project.

Radar is seeking a partner to progress this project, with the next stage of work expected to involve further resource drilling and metallurgical test work. The scoping study completed in 2011 suggested the project had robust economics, and the work to date along with the realistic regional transport options suggest a significant magnetite operation can be successfully established at Die Hardy.

The potential for a major body of magnetite mineralisation at the Die Hardy Range was identified in 2010 through reconnaissance mapping and is approximately 3.4km long. A substantial RC drilling programme in 2011 resulted in the estimation of a maiden mineral resource estimation by consultant firm, CSA Global, in October 2011 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 (215Mt 26.7% Fe Indicated and 138Mt at 25.2% Fe Inferred). Details of the resource estimation procedure and ore body characteristics were provided in Radar’s December 2011 Quarterly report reported to the ASX on January 31, 2012.

Figure 4: Die Hardy Range – Drill Hole Location Plan

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The deposit outcrops as a ridge of magnetite bearing banded iron formation (BIF). The BIF is partially demagnetised to a depth of 40-50m. 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

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

350m below surface. Drilling to date has not yet fully defined the extent or the depth of mineralisation.

The mineralisation has been tested for approximately 40% of its strike extent on Radar’s tenements and remains open along strike and at depth. Davis Tube Recovery (DTR) results and metallurgical test work indicates that a concentrate can be produced, exceeding 69% Fe with low levels of contaminants at a grind size of 50 micron. This indicates that the mineralisation can be treated and has excellent potential for producing a saleable concentrate.

Figure 5: Die Hardy Range – Cross Section 2

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Corporate Activities

In September 2012 Radar acquired Tenement E77/1961 from Heron Resources Ltd in exchange for $20,000 in cash and 75,000 ordinary shares in the Company.

On 21 December 2012 the following securities were released from escrow:-

• 22,815,612 fully paid ordinary shares, now trading on the ASX;

• 20,000,000 unlisted options exercisable at 25 cents, expiring on 30 November 2013; and

• 2,000,000 unlisted options exercisable at 30 cents, expiring on 31 May 2014.

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 2012 has been received and can be found on page 10.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

AFTER BALANCE DATE EVENTS

Subsequent to the balance date, as announced to the ASX on 8 February 2013, the Company executed an agreement to purchase 51% of the Mt Ruby magnetite exploration project located in north Queensland. The acquisition is contingent on the Company completing due diligence, including confirmatory drilling on the project by 30 April 2013. Further detail is given at Note 9 to the financial report.

AUDITOR

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

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

Jonathan Lea Managing Director Perth 12 March 2013

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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Auditor’s independence 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 2012 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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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director Perth 12 March 2013

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RADAR IRON LIMITED ACN: 146 455 576

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the half year ended 31 December 2012

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 2012 $ Consolidated 31 December 2011 $ 58,532 59,523 48,226 9,000 (122,402) (69,783) (110,463) (149,511) (179,575) (201,195) (1,741) (51,629) (90,560) (213,304)
	(397,983) (616,899) - -
	(397,983) (616,899)
	- -
	(397,983) (616,899)
	(397,983) (616,899) (397,983) (616,899) (0.49) (0.94)

The above Condensed Consolidated Statement of Profit or Loss and Other 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 2012

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 2012 $ Consolidated 30 June 2012 $ 1,804,666 3,903,225 89,584 375,930
	1,894,250 4,279,155
	9,698,031 8,400,286 201,137 168,388
	9,899,168 8,568,674
	11,793,418 12,847,829
	173,033 843,336
	173,033 843,336
	173,033 843,336
	11,620,385 12,004,493
	12,377,907 12,364,032 1,017,130 1,017,130 (1,774,652) (1,376,669)
	11,620,385 12,004,493

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 2012

Note 2012 CONSOLIDATED Total equity at 1 July 2012 Total comprehensive loss for the period Transactions with equity holders: Share-based payments 7 Total equity at 31 December 2012 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 7 Total equity at 31 December 2011	Issued Option Accumulated Total Capital Reserve Losses Equity $ $ $ $ 12,364,032 1,017,130 (1,376,669) 12,004,493
	- - (397,983) (397,983) 13,875 - - 13,875
	12,377,907 1,017,130 (1,774,652) 11,620,385
	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

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 2012

Cash flows from operating activities Receipts from customers Research and development tax offset 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 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 (decrease) 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 2012 $ Consolidated 31 December 2011 $ 3,779 13,950 280,384 - 58,532 89,191 (528,964) (503,709)
	(186,269) (400,568)
	(1,835,084) (2,645,196) (57,206) (5,200) (20,000) (1,000,000)
	(1,912,290) (3,650,396)
	- 2,564,838 - (189,986)
	- 2,374,852
	(2,098,559) (1,676,112) 3,903,225 4,243,449
	1,804,666 **2,567,337 **

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 2012

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 2012 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 2012 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 12 March 2013.

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.

Financial Position

The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities, in the normal course of business.

The Group has incurred a comprehensive loss after tax for the period ended 31 December 2012 of $397,983, had a net working capital surplus of $1,721,217 and experienced net cash outflows from operating activities of $186,269.

As at 31 December 2012 the Group had cash on hand of $1,804,666.

If one of the Company’s projects proceeds to the development phase, the Company will require further funding within the next 15 months. Should the Company be unable to raise sufficient funds, the development of the project may have to be deferred.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2012

BASIS OF PREPARATION (CONTINUED)

Further, as detailed in Note 9, subsequent to the balance date the Company has executed an agreement to purchase 51% of the Mt Ruby exploration project in north Queensland. The acquisition is contingent on the Company completing due diligence, including confirmatory drilling on the project by 30 April 2013.

Upon successful due diligence, the Company has the option to pay $5 million to the vendor and commit to spend $3 million for the development of the project, to earn an interest of 51% in the project.

In order to satisfy the conditions under this agreement the Company will be required to raise funds. If Radar is unable to raise sufficient funds, the acquisition of this project may not proceed.

Due to the above matters, the Directors believe it is reasonably foreseeable that the Group will continue as a going concern and that is it appropriate that this basis of accounting be adopted in the preparation of the financial statements.

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 2012.

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 2012.

In the half-year ended 31 December 2012, 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 2012.

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 2012. 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.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2012

NOTE 2 – LOSS BEFORE INCOME TAX EXPENSE

NOTE 2 – LOSS BEFORE INCOME TAX EXPENSE
	31 December	31 December
	2012	2011
	$	$
The following expense items are relevant in explaining the
financial performance for the period:
Wages and Salaries	179,575	142,041
Share-based payments	-	59,154
	179,575	201,195
NOTE 3 – DEFERRED EXPLORATION AND EVALUATION	EXPENDITURE
	31 December	30 June
	2012	2012
	$	$
Costs carried forward in respect of areas of interest in the
following phases:
Exploration and evaluation
Exploration and evaluation expenditure, at cost	9,689,031	8,400,286
Reconciliation:
A reconciliation of the carrying amounts of exploration
and evaluation expenditure is set out below:
Carrying amount at beginning of period	8,400,286	4,689,291
Recognised on acquisition of additional interest in mining
tenements	33,875	90,220
Additions	1,256,611	3,714,204
Write-off of exploration and evaluation expenditure	(1,741)	(93,429)
Carrying amount at end of period	9,689,031	8,400,286

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.

31 December 2012 $ Within one year 260,920

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2012

NOTE 4 - ISSUED CAPITAL

CONSOLIDATED AND PARENT ENTITY (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	2012 # 2012 $ 2011 # 2011 $ 81,340,070 12,377,907 71,162,129 8,879,549
	81,265,070 12,364,032 61,880,112 6,355,930 - - 8,282,017 2,484,605 75,000 13,875 1,000,000 345,000 - - - (305,986)
	81,340,070 12,377,907 71,162,129 8,879,549

As at 31 December 2012 the Company had a total of 23,050,000 (2011: 47,676,704) unissued ordinary shares on which options were outstanding with a weighted average exercise price of 25.78 cents (2011: 35.71 cents).

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 and post employment benefits.

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.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2012

NOTE 6– SEGMENT REPORTING (CONTINUED)

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.

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 2012.

31 December 2012 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	Iron-Ore Exploration All Other Segments $ $ 5,674 52,858	Consolidated $ 58,532
	44,675 (442,658)	(397,983)
	9,814,099 1,979,319 9,893 163,140 - 24,475 5,674 52,858	-
		(397,983)
		(397,983)
		11,793,418 173,033 24,475 58,532
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 Interest revenue	- 59,523	59,523
	(75,382) (541,517)	(616,899)
	7,053,421 2,847,889 527,629 147,103 - 17,578 - 59,523	-
		(616,899)
		(616,899)
		9,901,310 674,732 17,578 59,523

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2012

NOTE 7 – SHARE BASED PAYMENTS

Share-based payment transactions

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

	Shares	Options	Shares	Options
	2012	2012	2011	2011
	$	$	$	$
75,000 Ordinary Shares issued in consideration for
100% rights to a tenement owned by Heron Resources
Limited	13,875	-	-	-
1,000,000 Ordinary Shares issued in consideration for
the iron rights to tenements owned by Southern Cross
Goldfields Limited	-	-	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
	13,875	-	345,000	175,154

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	Consolidated 2012 $ Consolidated 2011 $ - 59,154
	- 59,154

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:

75,000 Ordinary Shares issued in consideration for 100% rights to a tenement owned by Heron Resources Limited(a) 1,000,000 Ordinary Shares issued in consideration for the iron rights to tenements owned by Southern Cross Goldfields Limited(b) 4,000,000 Listed Options issued in consideration for services rendered in the placement completed in October 2011(c)	Consolidated 2012 $ Consolidated 2011 $ 13,875 - - 345,000 - 116,000
	13,875 461,000

(a) Valued at $0.185 per share, being the closing price of Radar Iron Ltd ordinary shares on ASX on the date of issue.

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

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

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2012

NOTE 8 – CONTINGENT ASSETS & LIABILITIES

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

NOTE 9 –SUBSEQUENT EVENTS

Subsequent to the balance date, as announced to the ASX on 8 February 2013, the Company executed an agreement to purchase 51% of the Mt Ruby exploration project located in north Queensland. The acquisition is contingent on the Company completing due diligence, including confirmatory drilling on the project by 30 April 2013.

Upon successful due diligence, the Company has the option to pay $5 million to the vendor and commit to spend $3 million for the development of the project to earn an interest of 51% in the project. Following this, each party will contribute to further development in accordance with their respective joint venture interests.

Under the acquisition agreement, Radar will issue the project vendor with fully paid ordinary shares to the value of $1,000,000 upon each of Radar announcing a JORC reportable resource of a minimum grade of 60% Fe and upon commencement of mining.

No other 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 2012 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 12 March 2013

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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 its controlled entity (the “Group”), which comprises the condensed consolidated statement of financial position as at 31 December 2012, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the period ended on that date, notes comprising a summary of accounting policies, other explanatory notes 1 to 9, 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 Group 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 are 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 Group’s financial position as at 31 December 2012 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 2012 and of its performance for the period ended on that date; and

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

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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director

Perth 12 March 2013

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