WEEBIT NANO LTD — Interim / Quarterly Report 2014

Mar 13, 2014

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ACN 146 455 576

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Interim Financial Report for the half year ended 31 December 2013

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RADAR IRON LIMITED ACN: 146 455 576

Contents

CORPORATE INFORMATION ................................................................................... 1 DIRECTORS’ REPORT ............................................................................................ 2 AUDITOR’S INDEPENDENCE DECLARATION .............................................................. 4 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .................................................................... 5 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........................... 6 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................ 7 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS ....................................... 8 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ....................... 9 DIRECTORS’ DECLARATION ................................................................................. 17 INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................... 18

This financial report covers the Radar Iron Ltd Group consisting of Radar Iron Ltd and its subsidiaries, Radar Resources Pty Ltd and Radar Iron Uruara 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 7 55 Hampden Road Nedlands WA 6009

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

Registered & Principal Office:

Suite 7, 55 Hampden Road NEDLANDS WA 6009 Telephone: + 618 9482 0580 Facsimile: + 618 9482 0505

Postal Address:

Ananda Kathiravelu Non-Executive Director

P.O. Box 994 SUBIACO WA 6904

Company Secretary: Damon Sweeny (appointed 15/8/2013)

Philip Wingate (resigned 15/8/2013)

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

Home Stock Exchange: Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

ASX Code: RAD

Share Registry: Security Transfers Registrars Pty Ltd 770 Canning Highway APPLECROSS WA 6153

Bankers:

Westpac Banking Corporation 108 Stirling Highway NEDLANDS WA 6009

Website:

www.radariron.com.au

Solicitors - Perth:

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

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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 subsidiaries, for the half year ended 31 December 2013. 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 and the Para State of Brazil.

RESULTS

The net loss attributable to members of the Company for the half year ended 31 December 2013 amounted to $130,137 (2012: $397,983). 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

The Board of Radar maintained a cash expenditure minimisation policy for active exploration in the Yilgarn whilst a decision is made on the timing for the expansion of the Port of Esperance and also owing to present market conditions. During the period Radar focused on the review of potential acquisitions within the Yilgarn, and in other districts both within Australia and globally, aimed at identifying projects with available infrastructure that can be developed in a short time frame for a low capital cost.

Radar announced an exploration farm-in opportunity for a grass roots iron ore exploration project in Para State, Brazil. Following due diligence Radar committed to the joint venture in early January 2014. The Uruara Project offers excellent potential to discover a high grade lump iron ore deposit near accessible infrastructure and fits Radar’s investment criteria.

Corporate Activities

Early in the period Radar moved into new offices as part of its drive to reduce monthly corporate overheads.

In October 2013 Radar appointed Lusona Capital of Sydney as a corporate advisor specifically aimed at acquiring a South American iron ore project. Under the mandate Radar has issued new options to the nominee of Lusona Capital as follows:

• Tranche 1 – 2.5M unlisted options exercisable into fully paid ordinary shares at a five cent price each and vesting on the signing of an agreement to acquire an interest in an iron ore project currently under review.

• Tranche 2 - 2.5M unlisted options exercisable into fully paid ordinary shares at a five cent price each and vesting on the first shipment of iron ore from the project currently under review.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

Both tranches have a five year expiry from date of issue.

Radar has entered a farm-in agreement to acquire 50% of the Uruara high grade iron ore deposit in Para State Brazil, from a private Brazilian company. Radar will earn a 50% interest on the granted exploration license by spending US$1.5M on exploration within 18 months. The remaining 6 leases require US$0.5M expenditure to earn 50% at which time a joint venture will commence. Tenement vendor payments are payable commencing in approximately 4 months and will be based on the number of licenses that Radar wishes to include in the farm-in process. Total payments over a 30 month period could total US$2M if all 7 tenements have exploration potential and are retained in the farm-in. The agreement includes joint venture terms typically found in an agreement of this nature, including dilution and management.

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 2013 has been received and can be found on page 4.

AFTER BALANCE DATE EVENTS

Subsequent to the balance date, as announced to the ASX on 30 January 2014, the Company entered a Farm-In agreement for a project in Brazil. 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 13 March 2014

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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 2013 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 13 March 2014

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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 2013

Note Finance income Other income Financial administration, insurance and compliance costs Consulting and contracting expenses Employee benefits expense 2 Exploration expense Loss on sale of assets 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 2013 $ Consolidated 31 December 2012 $ 10,070 58,532 138,842 48,226 (61,741) (122,402) (123,262) (110,463) (26,599) (179,575) (5,006) (1,741) (26,159) - (36,282) (90,560)
	(130,137) (397,983) - -
	(130,137) (397,983)
	- -
	(130,137) (397,983)
	(130,137) (397,983) (130,137) (397,983) (0.16) (0.49)

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 2013

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 2013 $ Consolidated 30 June 2013 $ 639,413 1,075,965 228,963 81,376
	868,376 1,157,341
	10,073,246 9,861,184 84,528 177,189
	10,157,774 10,038,373
	11,026,150 11,195,714
	151,352 190,879
	151,352 190,879
	151,352 190,879
	10,874,798 11,004,835
	12,377,907 12,377,907 169,217 1,017,130 (1,672,326) (2,390,202)
	10,874,798 11,004,835

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 2013

		Issued		Option		Accumulated	Total
	Note	Capital		Reserve		Losses	Equity
2013
CONSOLIDATED		$		$		$	$
Total equity at 1 July 2013		12,377,907		1,017,130		(2,390,202)	11,004,835
Total
comprehensive
loss for the period			-		-	(130,137)	(130,137)
Transactions
with equity
holders:
Share-based	7		-		100	-	100
payments
Expiry of options			-	(848,013)		848,013	-
issued for no
consideration
transferred to
Accumulated
Losses
Total equity at 31		12,377,907		169,217		(1,672,326)	10,874,798
December 2013
2012
CONSOLIDATED
Total equity at 1
July 2012		12,364,032		1,017,130		(1,376,669)	12,004,493
Total
comprehensive
loss for the period			-		-	(397,983)	(397,983)
Transactions
with equity
holders:
Share-based	7	13,875			-	-	13,875
payments
Total equity at 31		12,377,907		1,017,130		(1,774,652)	11,620,385
December 2012

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 Sale of/ (payments for) plant and equipment Option Fee on acquisition of prospects Payments for capitalised acquisition costs Net cash used in investing activities Cash flows from financing activities Proceeds from the issue of options 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 2013 $ Consolidated 31 December 2012 $ 565 3,779 - 280,384 10,070 58,532 (294,316) (528,964)
	(283,681) (186,269)
	(180,086) (1,835,084) 59,091 (57,206) (31,976) - - (20,000)
	(152,971) (1,912,290)
	100 -
	100 -
	(436,552) (2,098,559) 1,075,965 3,903,225
	639,413 1,804,666

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 2013

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 2013 comprises the Company and its subsidiaries (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 2013 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 13 March 2014.

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.

Going Concern

These financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities the realisation of assets and extinguishment of liabilities in the ordinary course of business.

The Group has reported a net loss for the period of $130,137 (2012: $397,983) and a cash outflow from operating activities of $283,681 (2012: $186,269). The Group had a net working capital surplus of $717,024 at 31 December 2013 (30 June 2013: surplus of $966,462).

The directors are confident that the Group, subject to being able to raise further capital, will be able to continue its operations as a going concern. Without such capital, the net loss for the period and the cash outflow from operating activities indicate the existence of a material uncertainty which may cast significant doubt about the Group’s ability to continue as a going concern. The directors also carefully manage discretionary expenditure in line with the Group’s cash flow.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

BASIS OF PREPARATION (CONTINUED)

The continuing applicability of the going concern basis of accounting is dependent upon the Group’s ability to source additional finance. Unless additional finance is received the Group may need to realise assets and settle liabilities other than in the normal course of business and at amounts, which could differ from the amounts at which they are stated in these 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 2013.

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 2013.

The Group has adopted all of the new and revised Standards issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current half-year.

New and revised Standards and amendments thereof effective for the current half-year that are relevant to the Group include:

• AASB 10 Consolidated Financial Statements and AASB 2011-7 Amendments to

• Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 11 Joint Arrangements and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 12 Disclosure of Interests in Other Entities and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 127 Separate Financial Statements (2011) and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards

• AASB 128 Investments in Associates and Joint Ventures (2011) and AASB 2011-7 Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards • AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13

• AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures – Offsetting Financial Assets and Financial Liabilities

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (CONTINUED)

The effects of applying these standards are described below.

• AASB 10 Consolidated Financial Statements AASB 10 supersedes AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purpose Entities. AASB 10 revises the definition of control and provides extensive new guidance on its application. These new requirements have the potential to affect which of the Group’s investees are considered to be subsidiaries and therefore change the scope of consolidation. The requirements on consolidation procedures, accounting for changes in non-controlling interests and accounting for loss of control of a subsidiary are unchanged.

Management has reviewed its control assessments in accordance with AASB 10 and has concluded that there is no effect on the classification (as subsidiaries or otherwise) of any of the Group’s investees held during the period or comparative periods covered by these financial statements.

• AASB 11 Joint Arrangements AASB 11 replaces AASB 131 Interests in Joint Ventures and the guidance contained in a related interpretation, Interpretation 113 Jointly Controlled Entities – Non-Monetary Contributions by Venturers, has been incorporated in AASB 128 (as revised in 2011).

AASB 11 deals with how a joint arrangement of which two or more parties have joint control should be classified and accounted for. Under AASB 11, there are only two types of joint arrangements – joint operations and joint ventures. The classification of joint arrangements under AASB 11 is determined based on the rights and obligations of parties to the joint arrangements by considering the structure, the legal form of the arrangements, the contractual terms agreed by the parties to the arrangement, and, when relevant, other facts and circumstances. A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint venturers) have rights to the net assets of the arrangement.

Previously, AASB 131 Interests in Joint Ventures contemplated three types of joint arrangements – jointly controlled entities, jointly controlled operations and jointly controlled assets. The classification of joint arrangements under AASB 131 was primarily determined based on the legal form of the arrangement (e.g. a joint arrangement that was established through a separate entity was accounted for as a jointly controlled entity).

The initial and subsequent accounting of joint ventures and joint operations is different. Investments in joint ventures are accounted for using the equity method (proportionate consolidation is no longer allowed). Investments in joint operations are accounted for such that each joint operator recognises its assets (including its share of any assets jointly held), its liabilities (including its share of any liabilities incurred jointly), its revenue (including its share of revenue from the sale of the output by the joint operation) and its expenses (including its share of any expense incurred jointly). Each joint operation accounts for the assets and, liabilities, as well as revenue and expenses, relating to its interest in the joint operation in accordance with the applicable Standards.

During the period, the Company did not hold investments in joint arrangements and consequently, the new standard did not have any impact in the interim financial report.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (CONTINUED)

• AASB 12 Disclosure of Interests in Other Entities

AASB 12 is a new disclosure standard and is applicable to entities that have interests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. In general, the application of AASB 12 would result in more extensive disclosures in the annual consolidated financial statements. However, this has not resulted in any changes to the interim financial report.

• AASB 13 Fair Value Measurement

AASB 13 clarifies the definition of fair value and provides related guidance and enhanced disclosures about fair value measurements. It does not affect which items are required to be fair-valued. AASB 13 applies prospectively for annual periods beginning on or after 1 January 2013.

Management has considered the requirements of AASB 13 and has concluded that there is no effect on the interim financial report.

• AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures –

• Offsetting Financial Assets and Financial Liabilities

The Group has applied the amendments to AASB 7 “Disclosures – Offsetting Financial Assets and Financial Liabilities’ for the first time in the current year. The amendments to AASB 7 require entities to disclose information about rights of offset and related arrangements (such as collateral posting requirements) for financial instruments under an enforceable master netting agreement or similar arrangement.

The amendments have been applied retrospectively. As the Group does not have any offsetting arrangements in place, the application of the amendments has had no material impact on the disclosures or on the amounts recognised in the consolidated financial statements.

NOTE 2 – LOSS BEFORE INCOME TAX EXPENSE

NOTE 2 – LOSS BEFORE INCOME TAX EXPENSE
The following expense items are relevant in explaining the financial performance for the period: Wages and Salaries	31 December 2013 $ 31 December 2012 $ 26,599 179,575
	26,599 179,575

NOTE 3 – DEFERRED EXPLORATION AND EVALUATION EXPENDITURE

Costs carried forward in respect of areas of interest in the following phases: Exploration and evaluation Exploration and evaluation expenditure, at cost	31 December 2013 $ 30 June 2013 $ 10,073,246 9,861,184

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

NOTE 3 – DEFERRED EXPLORATION AND EVALUATION EXPENDITURE	NOTE 3 – DEFERRED EXPLORATION AND EVALUATION EXPENDITURE	(CONTINUED)
Reconciliation:
A reconciliation of the carrying amounts of	31 December	30 June
exploration and evaluation expenditure is set out	2013	2013
below:	$	$
Carrying amount at beginning of period	9,861,184	8,400,286
Recognised on acquisition of additional interest in
mining tenements	31,976	133,875
Additions	180,086	1,668,177
Project evaluation expense	-	(339,413)
Write-off of exploration and evaluation expenditure	-	(1,741)
Carrying amount at end of period	10,073,246	**9,861,184 **

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, farmouts, 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 2014 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	December
			2013
			$
Within one year			174,000
NOTE 4 – ISSUED CAPITAL
CONSOLIDATED AND PARENT	2013	2013		2012	2012
ENTITY	#	$		#	$
(a) Issued and Paid Up Capital
Fully paid ordinary shares	81,340,070	12,377,907 81,340,070			12,377,907
(b) Movements in fully paid shares on
issue
Balance at start of period	81,340,070	12,377,907		81,265,070	12,364,032
Shares issued in relation to	-		-	75,000	13,875
acquisitions
Balance at end of period	**81,340,070 **	**12,377,907 81,340,070 **			12,377,907

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

NOTE 4 – ISSUED CAPITAL (CONTINUED)

As at 31 December 2013 the Company had a total of 7,675,000 (2012: 23,050,000) unissued ordinary shares on which options were outstanding with a weighted average exercise price of 14.30 cents (2012: 25.78 cents).

NOTE 5 – RELATED PARTY TRANSACTIONS

The only related party transactions that occurred during the period were in the form of loans to subsidiaries, 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.

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 2013.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

NOTE 6 – SEGMENT REPORTING (CONTINUED)

31 December 2013 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 $ 768	All Other Segments $ 9,302	Consolidated $ 10,070
	123,979	(254,116)	(130,137)
	10,333,134 (5,984) - 768	693,016 (145,368) 7,410 9,302	-
			(130,137)
			(130,137)
			11,026,150 (151,352) 7,410 10,070
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	5,674	52,858	58,532
	44,675	(442,658)	(397,983)
	9,814,099 9,893 - 5,674	1,979,319 163,140 24,475 52,858	-
			(397,983)
			(397,983)
			11,793,418 173,033 24,475 58,532

NOTE 7 – SHARE BASED PAYMENTS

Share-based payment transactions

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

	Shares		Options	Shares	Options
	2013		2013	2012	2012
	$		$	$	$
5,000,000 Unlisted Options issued in
consideration for consulting services
		-	100	-	-
75,000 Ordinary Shares issued in consideration
for 100% rights to a tenement owned by Heron
Resources Limited		-	-	13,875	-
		-	100	13,875	-

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2013

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 30 January 2014, the Company executed a farm-in agreement to earn 50% of the Uruara exploration project in Brazil by spending up to US$ 2,000,000. The acquisition is contingent on the Company being satisfied with exploration results, and the Company may withdraw at any time.

Radar will earn a 50% interest on the project’s granted exploration license by spending US$1.5M on exploration within 18 months, at which time a joint venture will commence. A further 6 leases may be included, and require US$0.5M expenditure to earn 50%.

Tenement vendor payments are payable commencing in approximately 4 months and will be based on the number of licenses that Radar wishes to include in the farm-in process. Total payments over a 30 month period could total US$2M if all 7 tenements have exploration potential and are retained in the farm-in. The agreement includes joint venture terms typically found in an agreement of this nature, including dilution and management.

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 2013 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 13 March 2014

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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 entities(the “Group”), which comprises the condensed consolidated statement of financial position as at 31 December 2013, 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 entities 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 2013 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 2013 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.

Emphasis of Matter

Without modifying our opinion, we draw attention to Note 1 to the Financial Report, which indicates that the Group will require further funding in the next twelve months from the date of this report to fund its planned exploration and evaluation projects. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business.

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Nexia Perth Audit Services Pty Ltd

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PTC Klopper Director

Perth 13 March 2014

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