WEEBIT NANO LTD — Interim / Quarterly Report 2015

Aug 23, 2015

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ACN 146 455 576

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Interim Financial Report for the half year ended 31 December 2014

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RADAR IRON LIMITED ACN: 146 455 576

Contents

CORPORATE INFORMATION ..................................................................................... 1 DIRECTORS’ REPORT .............................................................................................. 2 AUDITOR’S INDEPENDENCE DECLARATION ............................................................... 5 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .................................................................... 6 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................ 7 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................ 8 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS ....................................... 9 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ..................... 10 DIRECTORS’ DECLARATION................................................................................... 19 INDEPENDENT AUDITOR’S REVIEW REPORT ............................................................ 20

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 8 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 Non-Executive Director

Registered & Principal Office:

Suite 8, 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

David Sourbutts Non-Executive Director

Company Secretary:

Damon Sweeny

Home Stock Exchange:

Australian Securities Exchange Limited Level 40, Central Park 152-158 St Georges Terrace PERTH WA 6000

ASX Code:

Auditors:

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

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 Level 2, 45 Richardson 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 2014. 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 (Resigned 31 May 2015) Non Executive Director (Appointed 01 June 2015) David Sourbutts Non Executive 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 Yilgarn Iron Ore Province of Western Australia.

RESULTS

The net loss attributable to members of the Company for the half year ended 31 December 2014 amounted to $8,674,136 (2013: $130,137). The net loss principally relates to the impairment of the exploration projects, salaries and wages as well as administration costs relating to an ASX listed entity.

OPERATING AND FINANCIAL REVIEW

Operating Activities

The Company’s strategic objective remains to become a producer of high quality, higher margin DSO and magnetite concentrates for the steel industry. Management’s key focus subsequent to balance date has been to minimise expenditure and to lift the suspension in trading on the Company’s shares while reviewing options to revitalise the company.

During the period studies continued at its Yerecoin project using a combination of internal Company resources along with a number of external consultants at further assessing the data and to facilitate project development. These include:

• a mining engineering review of previous pit optimisation results to establish priority locations for initial development

• continuing review of environmental data and approvals to confirm existing level of understanding and define the timelines required for rapid project development

• cost review studies to refine assumptions and better define areas needing further assessment

• ongoing transport option reviews along with discussions with infrastructure providers to determine the most cost effective means of land and sea movement

A limited, first pass drilling programme was completed for the Uruara Project in Brazil. Despite encouraging assay results being released on 21 April 2015 showing potential for the project, Radar decided to withdraw from the farm-in process owing to iron ore market conditions.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

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.

Corporate Activities

Management’s main focus during the period has been to secure funding to complete the Yerecoin acquisition and provide working capital. To this end, Radar commenced a two stage funding programme after approval from Shareholders at meetings in October and November aimed at raising $5.5M.

In Stage 1, Radar issued 26.1m shares to a private Australian investment company, Victory Mining Pty Ltd (“Victory”) in November at a price of 3.5 cents a share to raise $0.91M. As a result, Victory now holds approximately 19.7% of Radar’s expanded issued capital.

For Stage 2 Radar initiated a fully underwritten rights issue to raise a further $4.6M at a price of 3.5 cents per share closing, after extension, on 17th December 2014. The rights issue was fully underwritten by Victory and conditional upon (amongst other things) the iron ore price not falling below a specified level. Owing to the substantial reduction in the iron ore price in November and December, Victory terminated its underwriting commitment. As a consequence Radar withdrew the rights issue and returned all applications funds.

Radar and Victory remained in discussions after the termination of the rights issue aimed at finalising a new investment agreement between the parties, whilst also negotiating with the vendors a reduction in the purchase price for Yerecoin. Radar requested on 18 December 2014 that the ASX place its shares in voluntary suspension whilst this process took place.

In December, Radar signed an option agreement with Padbury Mining Limited to sell its Johnston Range and Die Hardy projects located in the greater Central Yilgarn Project area. The total payment for the two tenement groups is $500,000 if the option is exercised following due diligence, and that carrying value is reflected in the accounts. A nonrefundable $10,000 option fee was paid at the time of signing. At the date of this report the directors deem the completion of the sale improbable, and have not accounted for such future revenue in the financial statements.

AFTER BALANCE DATE EVENTS

Subsequent to the balance date the following significant events occurred;

• the company withdrew from the farm-in agreement for the Brazilian Uruara Iron Project.

• the company sold a motor vehicle and withdrew an application for a tenement.

• the company completed the purchase of Yerecoin Iron Ore Project. To do so Radar negotiated a reduction of $2,320,000 from the original purchase price agreed. Radar raised $560,000 net of costs through unsecured convertible loan agreements which are subject to shareholder approval. Radar applied for and received a new Stamp Duty assessment with a balance of $19,835.

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RADAR IRON LIMITED ACN: 146 455 576

Directors’ Report

• the directors resolved to reduce the cash component of their accrued & future entitlements, subject to shareholder approval

• Radar raised $495,932 (before costs) through the issue of 33,062,158 fully paid ordinary shares at $0.01, with one attaching $0.015 unsecured convertible note for every 3 shares issued. An outstanding condition of the capital raising is that Radar be reinstated to the official list of the ASX by 28 August 2015.

Further detail is given at Note 9 to the financial report.

LIKELY DEVELOPMENTS

Except as disclosed above, 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 2014 has been received and can be found on page 5.

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 Director Perth

21 August 2015

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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 2014 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.

Nexia Perth Audit Services Pty Ltd

PTC Klopper Director

Perth 21 August 2015

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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 2014

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 Write off of exploration expenditure 3 Administration expenses Finance cost Loss before income tax expense Income tax benefit / (expense) Net loss for the period Other comprehensive income Foreign currency translation differences for foreign operations 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 2014 $ Consolidated 31 December 2013 $ 2,576 10,070 10,000 138,842 (146,030) (61,741) (18,778) (123,262) (67,538) (26,599) - (5,006) - (26,159) (8,410,503) - (27,313) (16,550) (36,282) -
	(8,674,136) (130,137)
	- -
	(8,674,136) (130,137)
	- 7,903 - -
	(8,666,233) (130,137)
	(8,674,136) (130,137) (8,666,233) (130,137) (7.76) (0.16)

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 2014

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 Option reserve Accumulated losses TOTAL EQUITY	Consolidated 31 December 2014 $ Consolidated 30 June 2014 $ 406,727 15,064 23,740 460,872
	430,467 475,936
	2,879,357 13,311,475 46,797 54,380
	2,926,154 13,365,855
	3,356,621 13,841,791
	750,967 3,606,100
	750,967 3,606,100
	750,967 3,606,100
	2,605,654 10,235,691
	14,256,834 13,220,638 77,094 77,094 (11,728,274) (3,062,041)
	2,605,654 10,235,691

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 2014

		Issued	Option	Accumulated	Total
	Note	Capital	Reserve	Losses	Equity
2014 CONSOLIDATED		$	$	$	$
Total equity at 1 July 2014		13,220,638	77,094	(3,062,041)	10,235,691
Total comprehensive loss for the period		-	-	(8,666,233)	(8,666,233)
Transactions with equity
holders:
Shares issued during the year:
Contributions of capital	4	1,007,196	-	-	1,007,196
(net of capital raising costs)
Share-based payments	7	29,000	-	-	29,000
Total equity at 31 December 2014		14,256,834	77,094	(11,728,274)	2,605,654
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 payments	7	-	100	-	100
Expiry of options issued for no		-	(848,013)	848,013	-
consideration transferred to
Accumulated Losses
Total equity at 31 December 2013		12,377,907	169,217	(1,672,326)	10,874,798

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 2014

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 Proceeds on sale of property, plant and equipment Proceeds on option fee for sale of tenements Option Fee on acquisition of prospects Net cash used in investing activities Cash flows from financing activities Proceeds from the issue of shares Capital raising costs Net cash provided by financing activities Net increase/ (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 2014 $ Consolidated 31 December 2013 $ - 565 - - 2,576 10,070 (151,704) (294,316)
	(149,128) (283,681)
	(476,405) (180,086) - 10,000 59,091 - - (31,976)
	(466,405) (152,971)
	1,189,500 100 (182,304) -
	1,007,196 100
	391,663 (436,552) 15,064 1,075,965
	406,727 639,413

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 2014

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 2014 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 2014 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 21 August 2015.

BASIS OF PREPARATION

The interim report has been prepared on an 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 $8,674,136 (2013: $130,137) and a cash outflow from operating activities of $149,128 (2013: $283,681). The Group had a net working capital deficiency of $320,500 at 31 December 2014 (30 June 2014: deficiency of $3,130,164). In August 2015, the Company completed a capital raising of $495,932 (before costs). A condition of the capital raising is that the Company be reinstated to the official list of the ASX by 28 August 2015 (refer note 9 for more information).

The directors are confident that the Group, subject to being able to raise further capital and being reinstated to the official list of the ASX, 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

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

BASIS OF PREPARATION (CONTINUED)

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.

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 2014.

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 2014.

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

New standards

Amendments to AASBs and the new Interpretation that are mandatorily effective for the current reporting period

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

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

• AASB 1031 ‘Materiality’ (2013)

• AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’

• AASB 2013-3 ‘Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets’

• AASB 2014-1 ‘Amendments to Australian Accounting Standards’

• Part A: ‘Annual Improvements 2010-2012 and 2011-2013 Cycles’

• Part C: ‘Materiality’

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (CONTINUED)

Impact of the application of AASB 1031 ‘Materiality’ (2013)

The revised AASB 1031 is an interim standard that cross-references to other Standards and the Framework for the Preparation and Presentation of Financial Statements (issued December 2013) that contain guidance on materiality. The AASB is progressively removing references to AASB 1031 in all Standards and Interpretations, and once all these references have been removed, AASB 1031 will be withdrawn. The adoption of AASB 1031 does not have any material impact on the disclosures or the amounts recognised in the Group's condensed consolidated financial statements.

Impact of the application of AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’

The Group has applied the amendments to AASB 132 for the first time in the current year. The amendments to AASB 132 clarify the requirements relating to the offset of financial assets and financial liabilities. Specifically, the amendments clarify the meaning of ‘currently has a legally enforceable right of set-off’ and ‘simultaneous realisation and settlement’.

The amendments have been applied retrospectively. The Group has assessed whether certain of its financial assets and financial liabilities qualify for offset based on the criteria set out in the amendments and concluded that the application of the amendments does not have any material impact on the amounts recognised in the Group's condensed consolidated financial statements.

Impact of the application of AASB 2013-3 ‘Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets’

The Group has applied the amendments to AASB 136 for the first time in the current year. The amendments to AASB 136 remove the requirement to disclose the recoverable amount of a cash-generating unit (CGU) to which goodwill or other intangible assets with indefinite useful lives had been allocated when there has been no impairment or reversal of impairment of the related CGU. Furthermore, the amendments introduce additional disclosure requirements applicable to when the recoverable amount of an asset or a CGU is measured at fair value less costs of disposal. These new disclosures include the fair value hierarchy, key assumptions and valuation techniques used which are in line with the disclosure required by AASB 13 ‘Fair Value Measurements’.

The application of these amendments does not have any material impact on the disclosures in the Group's condensed consolidated financial statements.

Impact of the application of AASB 2013-9 ‘Amendments to Australian Accounting Standards’– Part B: ‘Materiality’

This amending standard makes amendments to particular Australian Accounting Standards to delete references to AASB 1031, at the same time it makes various editorial corrections to Australian Accounting Standards as well. The adoption of amending standard does not have any material impact on the disclosures or the amounts recognised in the Group's condensed consolidated financial statements.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (CONTINUED)

Impact of the application of AASB 2014-1 ‘Amendments to Australian Accounting Standards’

Part A: ‘Annual Improvements 2010-2012 and 2011-2013 Cycle’

The Annual Improvements 2010-2012 Cycle include a number of amendments to various AASBs, which are summarised below.

The amendments to AASB 2 (i) change the definitions of ‘vesting condition’ and ‘market condition’; and (ii) add definitions for ‘performance condition’ and ‘service condition’ which were previously included within the definition of ‘vesting condition’. The amendments to AASB 2 are effective for share-based payment transactions for which the grant date is on or after 1 July 2014.

The amendments to AASB 3 clarify that contingent consideration that is classified as an asset or a liability should be measured at fair value at each reporting date, irrespective of whether the contingent consideration is a financial instrument within the scope of AASB 9 or AASB 139 or a non-financial asset or liability. Changes in fair value (other than measurement period adjustments) should be recognised in profit and loss. The amendments to AASB 3 are effective for business combinations for which the acquisition date is on or after 1 July 2014.

The amendments to AASB 8 (i) require an entity to disclose the judgements made by management in applying the aggregation criteria to operating segments, including a description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have ‘similar economic characteristics’; and (ii) clarify that a reconciliation of the total of the reportable segments’ assets to the entity’s assets should only be provided if the segment assets are regularly provided to the chief operating decision-maker.

The amendments to the basis for conclusions of AASB 13 clarify that the issue of AASB 13 and consequential amendments to AASB 139 and AASB 9 did not remove the ability to measure short-term receivables and payables with no stated interest rate at their invoice amounts without discounting, if the effect of discounting is immaterial. As the amendments do not contain any effective date, they are considered to be immediately effective.

The amendments to AASB 116 and AASB 138 remove perceived inconsistencies in the accounting for accumulated depreciation/amortisation when an item of property, plant and equipment or an intangible asset is revalued. The amended standards clarify that the gross carrying amount is adjusted in a manner consistent with the revaluation of the carrying amount of the asset and that accumulated depreciation/amortisation is the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.

The amendments to AASB 124 clarify that a management entity providing key management personnel services to a reporting entity is a related party of the reporting entity. Consequently, the reporting entity should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. However, disclosure of the components of such compensation is not required.

The ‘Annual Improvements 2011-2013 Cycle’ include a number of amendments to various AASBs, which are summarised below.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (CONTINUED)

The amendments to AASB 3 clarify that the standard does not apply to the accounting for the formation of all types of joint arrangement in the financial statements of the joint arrangement itself.

The amendments to AASB 13 clarify that the scope of the portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with, AASB 139 or AASB 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within AASB 132.

The amendments to AASB 140 clarify that AASB 140 and AASB 3 are not mutually exclusive and application of both standards may be required. Consequently, an entity acquiring investment property must determine whether:

• (a) the property meets the definition of investment property in terms of AASB 140; and

• (b) the transaction meets the definition of a business combination under AASB 3.

Part C – ‘Materiality’

This amending standard makes amendments to particular Australian Accounting Standards to delete their references to AASB 1031, which historically has been referenced in each Australian Accounting Standard.

The adoption of its amending standard does not have any material impact on the disclosures or the amounts recognised in the Group's condensed consolidated financial statements.

Note that AASB 14 ‘Regulatory Deferral Accounts’ and AASB 2014-1 ‘Amendments to Australian Accounting Standards – Part D: ’Consequential Amendments arising from AASB 14’ is not applicable to the Group as the Group is not a first-time adopter of Australian Accounting Standards.

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 2014 $ 31 December 2013 $ 67,538 26,599
	67,538 26,599

NOTE 3 –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 2014 $ 30 June 2014 $ 2,879,357 13,311,475
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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

NOTE 3 –EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)

Reconciliation: A reconciliation of the carrying amounts of exploration and evaluation expenditure is set out below: Carrying amount at beginning of period Variation and stamp duty on purchase price Additions Project evaluation expense Write-off of exploration and evaluation expenditure Carrying amount at end of period	31 December 2014 $ 30 June 2014 $ 13,311,475 9,861,184 (2,498,020) - 476,405 4,677,815 - (17,387) (8,410,503) (1,210,137)
	2,879,357 13,311,475

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 2015 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	31 December 2014 $ 108,524

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 Share based payments Capital raising costs Balance at end of period	December 2014 # December 2014 $ June 2014 # June 2014 $ 132,248,630 14,256,834 98,540,070 13,220,638
	98,540,070 13,220,638 81,340,070 12,377,907 32,999,989 708,571 1,189,500 29,000 17,200,000 - 860,617 - - (182,304) - (17,886)
	132,248,630 14,256,834 98,540,070 13,220,638

As at 31 December 2014 the Company had a total of 5,300,000 (2013: 7,675,00) unissued ordinary shares on which options were outstanding with a weighted average exercise price of 14.30 cents (2013: 14.30 cents).

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

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 location, 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 2014.

31 December 2014 Segment revenue Segment result Unallocated expenses Results from operating activities Results from continuing operations	Iron-Ore Exploration All Other Segments $ $ 335 2,241	Consolidated $ 2,576
	(7,985,991) (688,145)	(8,674,136)
		-
		(8,674,136)
		(8,674,136)

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

NOTE 6 – SEGMENT REPORTING (CONTINUED)

Segment assets Segment liabilities Included within segment result: Depreciation Interest revenue	Iron-Ore Exploration All Other Segments $ $ 2,902,266 454,355 (582,702) (168,265) - 7,582 335 2,241	Consolidated $ 3,356,621 (750,967) 7,582 2,576
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	768 9,302	10,070
	123,979 (254,116)	(130,137)
	10,333,134 693,016 (5,984) (145,368) - 7,410 768 9,302	-
		(130,137)
		(130,137)
		11,026,150 (151,352) 7,410 10,070

NOTE 7 – SHARE BASED PAYMENTS

Share-based payment transactions

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

5,000,000 Unlisted Options issued in consideration for consulting services Ordinary shares issued in lieu of payment of fees	Shares 2014 $ Options 2014 $ Shares 2013 $ Options 2013 $ - - - 100 29,000 - - -
	29,000 - - 100

In September 2014 the Company issued 280,000 fully paid ordinary shares at $0.05 each in consideration for consulting services received from an unrelated party. At the same time Mr Tough (director) elected to convert $15,000 of unpaid fees into shares at $0.035 each in order to take up his full entitlement as a member of the Company in the Share Purchase Plan under ASIC Class Order 09/425.

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RADAR IRON LIMITED ACN: 146 455 576

Notes to the Financial Statements

For the half year ended 31 December 2014

NOTE 8 – CONTINGENT ASSETS & LIABILITIES

As disclosed in the directors’ report, the company has an option agreement with Padbury Mining Limited (Padbury) to sell its Johnston Range and Die Hardy Projects for $500,000 if the option is exercised. Those projects have been valued in these financial statements accordingly.

Although Padbury has not yet properly exercised the option, Padbury has indicated periodically to Radar that subject to it obtaining finance from Asia it still desires for the sale to progress. Given the delay thus far and the general malaise of the iron ore market, Radar considers it improbable that this will occur and has not recognised any future revenue in the preparation of these financial statements.

If the transaction proceeds, Radar will reassess the treatment of the projects and the transaction in the accounts for that period. The Directors are not aware of any other contingent assets or liabilities that currently affect the Group.

NOTE 9 – SUBSEQUENT EVENTS

Subsequent to the balance date, as announced to the ASX on 21 April 2015, the company decided to withdraw from the farm-in agreement for the Brazilian Uruara Iron Project.

On 5 May 2015, the company received from an unrelated party consideration of $40,909 for the transfer of a motor vehicle and the withdrawal of an application for a tenement not yet granted. The transaction was subject to normal trading conditions and company recorded a $1,111 loss on the transaction.

On 23 April 2015, the company made a final payment of $560,000 to the vendors to complete the purchase of Yerecoin Iron Ore Project. This represents a reduction from the original purchase price of $2,320,000. To do so Radar raised $615,000 before costs via convertible loan agreements. The key terms are subject to shareholder approval including:

• each note has a face value of $1.00

• a term of 6 months

• Coupon Rate 1% per month payable in RAD shares quarterly in arrears

• each note converts into 200 RAD shares.

In June 2015 the directors resolved that non-executive director fees be set at $3,000 per month from May 2015, that shareholder approval be sought for conversion of approximately half of unpaid entitlements accrued to date to be converted into shares, and to accrue future fees from June 2015 until such point that resumption of cash payments will have no adverse effect on the going concern basis of operations. Mr Lea was appointed non-executive director as of 1 June 2015, following his three month notice period, and accrues fees from that date.

After application to the Office of State Revenue, on 6 August 2015 the company received notice of the cancellation of the original stamp duty assessment of $197,855 on the Yerecoin acquisition. It is replaced by a new Duties Assessment, which after receiving credit for the $40,000 paid to date leaves $19,835 to pay by 6 September 2015.

In August Radar raised $495,932 (before costs) through the issue of 33,062,158 fully paid ordinary shares at $0.01, with one attaching $0.015 unsecured convertible note for every 3 shares issued. The notes attract interest at 1% per month, payable in arrears in shares, and subject to shareholder approval will convert at a price equal to the lesser of $0.015 and a 20% discount to the price at which the Company offers investors the opportunity to subscribe for Shares in the next capital raising to follow this Placement. The capital raising is conditional on Radar being reinstated to the official list of the ASX by 28 August 2015.

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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 condensed financial statements and notes thereto are in accordance with the Corporations Act 2001 including:

2. a. complying with Accounting Standard AASB 134: Interim Financial Reporting and 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 2014 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

Jonathan Lea Director Perth 21 August 2015

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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 2014, 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 2014 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 2014 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 continue as a going concern. 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

21 August 2015

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