WEST WITS MINING LIMITED — Interim / Quarterly Report 2012

Mar 13, 2012

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Appendix 4D for the Half Year Ended 31 December 2011

Results for announcement to the market

	Current Reporting Period - Half Year Ended 31 December 20 11	Current Reporting Period - Half Year Ended 31 December 20 11	Current Reporting Period - Half Year Ended 31 December 20 11	Current Reporting Period - Half Year Ended 31 December 20 11
	Revenues & Other Income Loss after tax		down 40.17% up 151.68% to $52,951 to ($1,913,962)
	Net loss for theperiod attribut able to members		up 144.08% to ($1,259,965)
	Dividends(distribution)		Amountper Security	Franked Amount per Security
	Final dividend		n/a	n/a
	Previous corresponding period		n/a	n/a
	Record date for determining en dividend, (in the case of a trust Explanation of the above inform Refer to the Directors' Report- titlements to the , distribution) ation: Review of Operations.		n/a

2. Net Tangible Asset per Security

Net Tangible Asset per Security (cents per security)

As at 31 December 2011 9.20 As at 31 December 2010 19.33

3. Details of entities over which control has been gained or lost during the period

During the period, the Company acquired 100% of NuGold Company Ltd, a Hong Kong Corporation that holds 100% equity interest in the Indonesian corporation PT. NuGold Indonesia Pty Ltd, which in turns holds a 80% equity interest on PT. Madinah Qurrata’ain (PT.MQ). PT.MQ holds interest in the gold exploration and extraction project known as the Derewo River Gold Project.

Total purchase consideration is $4,580,000. Full details are disclosed on this interim financial report ended 31 December 2011 (refer to Note 8).

4. Details of individual and total dividends

None

5. Details of dividend reinvestment plans in operation.

None

6. Details of Associates and Joint Ventures

None

1. These accounts have been subject to review and there has been no qualification or dispute.

West Wits Mining Limited

Appendix 4D In t erim Financial Report

For the half year ended 31 December 2011

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To be read in co n junction with the 30 June 2011 An n ual Report In c ompliance with Listing Rule 4.2A

Interim Financial Report

Directors’ Report .................... ........................................................................ ................... - 3 -
Independent Auditors Report. ........................................................................ ................... - 8 -
Statement of ComprehensiveI ncome for the half year ended 31 December 2011 ........... - 9 -
Statement of Financial Positio n as at 31 December 2011 ............................. ................. - 10 -
Statement of Changes in Equit y for the half year ended 31 December 2011 ................. - 11 -
Statement of Cash Flows for th e half year ended 31 December 2011 ........... ................. - 12 -
Notes to the Financial Stateme nts .................................................................. ................. - 13 -
Directors Declaration ............. ........................................................................ ................. - 22 -
Auditors Review Report ......... ........................................................................ ................. - 23 -

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Directors’ Report

Your Directors present their report on the Company, West Wits Mining Limi t ed for the half year ended 31st December, 2011.

Directors

The following persons were Dir e ctors of West Wits Mining Limited during the half year and up to the date of this report:-

Mr. Michael Quinert Chairman Mr. Daniel Pretorious Non-Executive Director Mr. Hulme Scholes Non-Executive Director Mr. Vincent Savage Non-Executive Director (appointed 12/10/11) Mr. Phillip Hains Non-Executive Director

Results

The Company reported a loss for the half year of $1,913,962 (31 Decem b er 2010: loss of $760,468).

Key Issues & Highlights

• West Wits acquired the D e rewo River Gold Project in Papua Province, Ind o nesia

• Derewo has similar chara c teristics to early the stage placer deposits of P o rgera, Edie Creek, Wau, Mt Kare in PNG and represents an outstanding exploration prospect

• Intention is to explore fo r the source of the significant alluvial gravels wi t hin the project as well as establish an alluvi a l operation to process the alluvial gravels

• Strong data suggests sour c e of high grade alluvial gravels is local based on size and shape of the gold nuggets contained within the gravels

• Extensive historic sampli n g data, 2,486 samples (27,440 assays), secur e d from Freeport over Derewo leases

• Significant panned c o ncentrate assay of 6,864 g/t Au

• Significant rock chips included 19.1 g/t Au and 1.8% Cu

• Three exploration targets identified

• Granted exploration leases of over 129,000 ha

• Granted 10 year 40 ha mi n ing lease over alluvial gravels

• All permitting completed except for Forestry Permit which has been app r oved by the local and regional Forestry Departments and is now being registered centrally i n Jakarta

• Drilling programs completed at the LIP and Gap targets in South Africa

Post Balance Date Highlights

• West Wits cash position t o be significantly increased through the sale o f part of its South African exploration assets for $9m on milestone payments

• Transaction value is comparable in value to West Wits entire current mark e t capitalisation

• • West Wits retains the D R D Lease and Rand Leases in South Africa wh i ch contain JORC 287,000ozs Au and the m a jor uranium targets

• West Wits can now confi d ently continue the commissioning of the alluvi a l circuit and initial exploration programs at D e rewo River, Indonesia

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Review of Operations

West Wits Mining Limited (“West Wits” or “the Company”) during the period c o ntinued to progress its Derewo River Gold Project (“Derewo”) in Papua Province, Indonesia since i ts acquisition in July and completed negotiation of a n important asset sale on part of the South Afric a n exploration assets.

Derewo River Gold Project

Background

The Derewo River Gold Proje c t (“Derewo”) is situated on the Derewo Riv e r within the central mountains of the Papua Province, Indonesia. The project is located approximat e ly 110km north west of Freeport’s Grasberg complex. This acquisition provided entry into a promisin g alluvial gold project based on evidence from existi n g artisanal operations, but the real opportun i ty and focus of this project is in the exploration upside of uncovering the source of these alluvial gra v els.

The mining area at Derewo was discovered in 2004 with local artisanal miners mining isolated alluvial gold pockets in the downstrea m of the Derewo River close to Nabire. This led to the discovering of high concentrations of alluvial g o ld in the Derewo River where it exits the central mountains of Papua with reports of several tonnes o f gold having been extracted over the last few y e ars.

The gold is occurring in the for m of coarse nuggets which show clear signs of fl u vial transport. These nuggets are found in Derewo Ri v er terrace deposits. The source of this alluvial g old looks to be local, based on the size and shape of t he nuggets discovered and the evidence of gol d mineralisation from float samples observed within t h e mining area by independent geologists.

The Project possesses a grante d a 40ha mining lease covering the high grade p lacer deposit and is where the Company’s initial a l luvial operation will be established. In additi o n three exploration leases are held totalling appr o ximately 129,000 ha covering the Derewo Ri v er drainage up and downstream of the 40ha mining lease.

Project Summary

• Exploration

The first significant step forwa r d in exploring for the source of the high gra d e alluvial gravels at Derewo came from securing th e significant dataset completed over the Derew o exploration permits in the early 1990’s by PT Freep o rt Indonesia (“Freeport”). The geochemical m u lti-element database was established from a significant sampling program of 2,486 samples (27,4 4 0 assays) across its three exploration permits cov e ring 129,000ha. This data provided three si g nificant exploration targets – Wopogi (Au/Cu), Sena ( Au) and Biapigu (Cu).

Significant results within the d ata included a panned concentrate sample o f 6,864 g/t Au and rockchip samples of 19.1 g/t Au a nd 1.8% Cu.

Analysis of this database indicated three separate anomalous zones including t h e potential source of the rich alluvial gold within the Derewo River. Each zone shows a separate g e ochemical signature. The identification of these anomalies has fast tracked the design exploratio n programs aimed at identifying the source of the Derewo alluvial gold as well as indicating an additional gold and an additional copper target.

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Figure 1. Three Anomalous Are a s of focus identified as Wopogi, Sena and Biapi g u

Several panned concentrates c o nfirm the main Derewo River is highly anomalous in gold for over 30km. Significantly, data from the tributaries of the Derewo River which colle c tively contribute the anomalous gold values in the m a in river, and contain the potential hardrock source of the gold, show two distinct areas of anomalo u s gold feeding the Derewo River along the section containing rich alluvial terraces (this data suggests multiple hardrock sources of the alluvial gol d in the gravels) and a separate area further upstream w hich is anomalous in copper.

The establishment of the alluvial operation will act as a field base from which the regional exploration programs will be managed. The base is in proximity to the Company’s primary Wopogi target. The initial exploration program at Wopogi will consist of geological mapping including structural, lithology and alterati o n mapping together with detailed geochemical sampling of streams and outcrop.

• Alluvial Operation

Over this reporting period the C o mpany continued to progress towards commis s ioning of the alluvial circuit at Derewo. On completing the acquisition of Derewo a topographic surv e y team was engaged to survey the mining lease in o r der to design the gravity circuit for the alluvial operation. Multiple Dam locations were identified t o provide gravity feed for sluicing operations. The airstrip centreline was also identified providing a landing distance of 800m, sufficient to land a Cessna Caravan and other locally operated aircraft. T his will be a key development as securing aircra f t support will reduce transport costs to about a third of what they would be with helicopter support. Road lines have also been selected.

With regards to permitting Wes t Wits received a 10 year extension to the grant e d mining lease which contains the high grade alluvial g ravels. This extension now provides the Company with security over this mining project until 2023 a n d paves the way for multiple alluvial circuits t o be established over the longer term. West has also secured its environmental permit for the alluvial o peration leaving the Forestry Permit as the only re m aining permit to be received before mining operations can begin.

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However it should be noted W est Wits does not require the Forestry P e rmit to develop its infrastructure for the alluvial circuit. West Wits has received sign off from t h e Paniai (local) and Papuan (provincial) Forestry D e partments for the development of the Derew o project and is now waiting for the administrative p r ocess to be completed.

The Company worked closely with all interested parties in the development of D erewo, including the local and regional government, key indigenous community representatives, se r vice providers, local, regional and central forestry a nd mines departments. All the relevant stak e holders continue to appear supportive of the prospect of a modern mining operation being establish e d.

A key step in this process o f development has been the implementatio n of the Company’s socialisation plan with the local indigenous community who will form a key part of the workforce for the Company. The relationship with the local Wolami people is strong and has developed over a number years. West Wits is o n e of very few mining companies in Papua th a t has completed an indigenous agreement. As part of this agreement the Company will establish a medical clinic and school for the local people as w ell as training and scholarship program for those to be employed by the Company.

The Company expanded its ope r ations team in preparation of activities beginning to ramp-up on site. West Wits has now employed full time Community and Government affairs staff to manage the relationships of key stakeholders in the project as well as procurement of key equipment for the operation.

Post balance date operators ha v e been engaged for both the excavator and fr o nt end loader which are onsite and ready to comme n ce work. Development of the airstrip, access r o ads and tailings and settling dams is beginning, ho w ever the timeline for development is behind schedule due to time taken to complete discussions w ith all key stakeholders in the development of t h e project.

South Africa

Asset Sale

Post the balance date of this h a lf yearly report West Wits announced the sale of four of its mining leases in South Africa for A$9 m illion over a number of milestones to a Sout h African consortium comprised of Mintails Limited ( A SX: MLI) and Galabyte (Pty) Limited (“Galaby t e”) (collectively “the Consortium”). The four leases s u bject to the sale were the West Wits Lease, We s t Rand Consolidated Lease, Luipaardsvlei Lease and East Champ D’Or Lease. Proceeds from the s a le will be principally applied to development of Dere w o.

The sale price agreed is to be pa i d as follows:

• an upfront payment of $4,000,000 on completion of due diligence (30 days) and signing of definitive legal agreeme n ts;

• a first interim payment o f $1,000,000 after 6 months;

• a second interim paym e nt of $1,000,000 after 12 months subject to re g ulatory approval for transfer of the leases; a n d

• further payments totalli n g $3,000,000 following regulatory approval for t he transfer of leases will be paid progressivel y based on the tonnage of ore processed by the C onsortium.

The Consortium has delivered guarantees satisfactory to West Wits for pay m ent of the upfront amount of $4,000,000 (within 1 4 days). A binding letter agreement has been s igned by the parties which will be replaced by definitive legal documentation post completion of the due diligence period. The transaction provides for ad v anced payments of $5,000,000 by the Consortium to West Wits prior to the legal transfer of title of t he leases. As such West Wits has agreed to gr a nt security over the

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subject leases in favour of the Consortium to secure the $5,000,000 of advance payments in case legal transfer does not occur. West Wits has also agreed to grant the Consortiu m an interim contract to mine the resource pending t r ansfer of title. As ore is extracted under the interim mining contract the Consortiums’ security rig h ts against the $5,000,000 advance will pro g ressively reduce by reference to the number of ton n es delivered for processing.

This transaction has no effect u p on the Company’s continued ownership of Ran d Leases and the DRD Lease in South Africa which co n tain stated JORC resources of 287,000 ozs au. By comparison the Randfontein Cluster leases being sold contain stated JORC resources of 139,0 0 0 ozs au and a JORC reserve of 58,800 ozs au.

Exploration

During the period the Company completed initial drill programs at the LIP Targe t and the ‘Gap’ which lies between the existing Mon a rch Gold Resource and the Emerald Gold Pro j ect. The purpose of these programs was to investig a te and help establish the potential in-situ value of these targets as West Wits looked at how to be s t commercialise some of its near surface projects and targets. As it happened the Company entere d into a sale agreement prior to receiving the f inal signed-off assay results due to severe delays exp e rienced at the assay laboratory, but an initial r e view of these results was in line with expectations. T he Company intends to release a final table o f results upon being signed off by the competent person.

Auditors’ Independence D eclaration

A copy of the auditors’ ind e pendence declaration as required under s e ction 307C of the Corporations Act 2001 is set out on the following page.

This report is made in accordan c e with a resolution of directors.

For And On Behalf Of The Board

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Michael Quinert Chairman West Wits Mining

14[th] of March 2012, Wednesday

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Independent Auditors Report

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Statement of Comprehensive Income for the half ded 31 December 2011 year en

		Note	31-Dec-11	31-Dec-10
			$'000	$'000
Revenue			53	88
Depreciation			(100)	(11)
Employee Expenses			(40)	(131)
Directors Fees			(199)	(123)
Corporate Administration			(270)	(238)
Consultancy			(434)	(167)
Legal & Professional			(51)	(27)
Travel & Marketing			(101)	(127)
Exploration expense			(772)	(27)
Foreign Exchange Gain/Loss			-	3
Profit/(loss)before tax			(1,914)	(760)
Income tax expense			-	-
Profit/(loss)for theyear			(1,914)	(760)
Other comprehensive income/(l oss):
Exchange differences on translat ing foreign
operations			(2,100)	(722)
Other comprehensive income / (	loss) for the year,
net of tax			(2,100)	(722)
Total comprehensive income/ ( loss)for theyear			(4,014)	(1,482)
Profit/(loss) attributable to:
Owners of the
parent			(1,260)	(516)
Non-controllinginterests			(654)	(244)
			(1,914)	(760)
Total comprehensive income /(lo ss) attributable to:
Owners of the
parent			(3,050)	(1,036)
Non-controllinginterests			(964)	(446)
			(4,014)	(1,482)
Basic earnings per share (centsp er share)			(0.54)	(0.42)
Diluted earnings per share (cents per share)			(0.54)	(0.42)

The accompanying notes form part of these financial statements.

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Statement of Financial Position as at 31 December 2011

Statement 3 of Financial Position as 1 December 2011	at
Note 31-Dec-2011 $'000	30-Jun-2011 $'000
Assets Non-current assets Trade and other receivables Property, plant and equipment Exploration and evaluation 14 148 4 13,046	16 23 19,963
Total non-current assets 13,208	20,002
Current assets Cash and cash equivalents Trade and other receivables Non-current assets classified as he Other current assets 2,006 134 ld for sale 9 9,357 126	469 1,720 - 19
Total current assets 11,623	2,208
Total assets 24,831	22,210
Equity and Liabilities Equity attributable to owners of th Share capital Accumulated losses Other components of equity e parent 6 29,708 (5,640) (5,338)	23,744 (4,380) (3,548)
18,730	15,816
Non-controllinginterests 4,802	5,765
Total equity 23,532	21,581
Non-current liabilities Longtermprovisions 325	370
Total non-current liabilities 325	370
Current liabilities Trade and other payables Short-term provisions Other 873 1 100	258 1 -
Total current liabilities 974	259
Total liabilities 1,299	629
Total equityand liabilities 24,831	22,210

The accompanyin g notes form part of these financial statements.

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Statement of Changes in Equity for the ended 31 December 2011

Economic Entity Share capital Other components of equity Retained Earnings $'000 $'000 $'000	Total Non- controlling interests Total $'000 $'000 $'000
Balance as at 1 July 2010 Shares issued net of costs Options issued net of costs Loss for the year Other comprehensive income/(expense)fort 23,166 (1,772) (3,295) - - - - - - - - (516) heyear - (520) -	18,099 6,964 25,063 - - - - - - (516) (244) (760) (520) (202) (722)
Balance at 31 December 2010 23,166 (2,292) (3,811)	17,063 6,518 23,581
Shares issued net of costs Options issued net of costs Cash held in trust pending issue of capital Loss for the year Other comprehensive income/(expense)fort 276 - - 30 - - 272 - - - - (569) heyear - (1,256) -	276 - 276 30 - 30 272 - 272 (569) (263) (832) (1,256) (490) (1,746)
Balance at 30 June 2011 23,744 (3,548) (4,380)	15,816 5,765 21,581
Shares issued – Share Purchase Plan Shares issued – Derewo River Gold Project Options issued net of costs Loss for the year Other comprehensive income/(expense)fort 1,745 - - 4,080 - - 139 - - - - (1,260) heyear - (1,790) -	1,745 - 1,745 4,080 - 4,080 139 - 139 (1,260) (654) (1,914) (1,790) (309) (2,100)
Balance at 31 December 2011 29,708 (5,338) (5,640)	18,730 4,802 23,532

The accom p anying notes form part of these financial s tatements.

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Statement of Cash Flows for the half year ended 31 December 2011

	Note	31-Dec-2 011	31-Dec-2 011	31-Dec-2010
		$	'000	$'000
Cash flows from operating activitie s
Payments to suppliers and employ ees			( 974)	(921)
Interest received			51	26
Net cash flows(used in)/from ope ratingactivities			(9 23)	(896)
Cash flows related to investing act ivities
Payment for purchases of plant an d equipment			( 330)	(4)
Loans to other entities			-	69
Loans repaid by other entities		1 ,686		-
Acquisition of Subsidiary,net of ca sh acquired			( 247)	-
Net cash flows(used in)/from inve stingactivities		1 ,109		65
Cash flows related to financing act ivities
Proceeds from issues of securities		1 ,578		-
Capital raisingcosts			( 192)	-
Net cash flows from financingacti vities		1 ,386		-
Net increase/(decrease) in cash an d cash equivalents		1 ,572		(831)
Cash and cash equivalents at theb eginning of the year			469	1,826
Effects of exchange rate changeso n cash and cash equivalents			(35)	(37)
Cash and cash equivalents at thee nd of theyear		2 ,006		958

The accom p anying notes form part of these financial s tatements.

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Notes to the Financial Statements

Note 1: Significant accounti n g policies

Statement of compliance

The half-year financial report i s a general purpose financial report prepar e d in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. C o mpliance with AASB 134 ensures compliance with International Financial Reporting Stan d ard IAS 34 Interim Financial Reporting.

Basis of preparation

This half year report does no t include full disclosures of the type no r mally included in an Annual Report and therefore c annot be expected to provide as full an understanding of the financial performance, financial position and financing and investing acti v ities of the Company as the Annual Report.

Accordingly, this financial repo r t should be read in conjunction with the 2 0 11 Annual Report for the year ended 30 June 2011 and any public announcements made by W e st Wits Mining during the interim reporting period in accordance with the continuous disclosur e requirements of the Corporations Act 2001.

The accounting policies and methods of computation adopted in the pr e paration of the halfyear financial report are consi s tent with those adopted and disclosed in the company’s 2011 annual financial report for the f inancial year ended 30 June 2011, except for the impact of the Standards and Interpretations described below. These accounting polici e s are consistent with Australian Accounting Standards and with International Financial Reportin g Standards.

The Group has adopted all of t h e new and revised Standards and Interpr e tations issued by the Australian Accounting Standar d s Board (the AASB) that are relevant to their operations and effective for the current period.

New and revised Standards and amendments thereof and Interpretations effective for the current reporting period that are relevant to the Group include:

New and Revised Account i ng Requirements Applicable to the Current Half-year Reporting Period

For the half-year reporting p e riod to 31 December 2011, a number of new and revised Accounting Standard requirem e nts became mandatory for the first tim e , some of which are relevant to the Group. A discus s ion of these new and revised requiremen t s that are relevant to the Group is provided below:

• AASB 124: Related Party Disclosures (December 2009)

• AASB 124 (December 200 9 ) introduces a number of changes to the accounting treatment of related parties compar e d to AASB 124 (December 2005, as am e nded), including the following:

• The definition of a “r e lated party” is simplified, clarifying its i n tended meaning and eliminating inconsisten c ies from the definition, including:

  • the definition now identifies a subsidiary and an associate w i th the same investor as related parties o f each other;

  • entities significantly influenced by one person and entities significantly influenced by a close memb e r of the family of that person are no lon g er related parties of

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each other;

• the definition no w identifies that, whenever a person or e ntity has both joint control over a sec o nd entity and joint control or significant i nfluence over a third party, the second a nd third entities are related to each other; and

• the definition now clarifies that a post-employment benefit p lan and an employer sponsor of such a p lan are related parties of each other.

• A partial exemption i s provided from the disclosure requirem e nts for governmentrelated entities. Entiti e s that are related by virtue of being co n trolled by the same government can provide reduced related party disclosures.

Application of AASB 124 (December 2009) did not have a signi f icant impact on the financial statements of the Group.

• AASB 2010–4: Further A m endments to Australian Accounting Standards arising from the Annual Improvements Proj e ct [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]

• This Standard details n u merous non-urgent but necessary ch a nges to Accounting Standards arising from the IASB’s annual improvements project. Key changes include: - clarifying the applicati o n of AASB 108 prior to an entity’s first A ustralian-AccountingStandards financial sta t ements;

• adding an explicit stat e ment to AASB 7 that qualitative disclosur e s should be made in the context of the q u antitative disclosures to better enable u sers to evaluate an entity’s exposure to risks arising from financial instruments;

• amending AASB 101 t o clarify that disaggregation of changes i n each component of equity arising from tra n sactions recognised in other comprehensi v e income is required to be presented, but is permitted to be presented in the stat e ment of changes in equity or in the notes;

• adding a number of e xamples to the list of events and tran s actions that require disclosure under AASB 134; and

• making sundry editorial amendments to various Standards and I n terpretations.

Application of the amend m ents in AASB 2010–4 did not have a sig n ificant impact on the financial statements of the Group.

• AASB 1054: Australian A dditional Disclosures and AASB 2011 – 1: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project [AASB 1, AASB 5, AASB 1 0 1, AASB 107, AASB 108, AASB 121, AA S B 128, AASB 132 & AASB 134 and Interpretati o ns 2, 112 & 113]

• AASB 1054 sets out th e Australian-specific disclosures that ar e additional to IFRS disclosure requirements.

The disclosure requirements in AASB 1054 were previously locate d in other Australian Accounting Standards

Application of AASB 1054 d id not have a significant impact on the fi n ancial statements of the Group.

Going Concern

The financial statements have b een prepared on a going concern basis w h ich contemplates the continuity of normal business activities and the realisation of assets a n d the settlement of liabilities in the normal course o f business.

As at 31 December 2011 the c o nsolidated entity has incurred an operati n g loss of $1,913,962 (31 December 2010: loss of $ 760,468). As at the half year ended 31 December 2011 the consolidated entity’s net ass e ts were $23,532,028 (30 June 2011: $21,581,468). The consolidated entity’s cash position has increased to $2,006,352 at 31 D ecember 2011 from $469,294 at 30 June 2011.

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The Directors believe that th e going concern basis of preparation is a ppropriate given the following:

• i) The Company has a c cepted an AUD$9,000,000 offer from Min t ails Ltd and Galabyte Consortium for the s ale of the Randfontein Lease assets in South Africa;

• ii) The Company is a b le to scale down its operations, partic u larly in the area of exploration;

• iii) The Company has s u ccessfully raised AUD$1,800,000 via a pri v ate placement and a Share Purchase Pla n (SPP) during June and July 2011;

• iv) The Directors are c o nfident that the Company has the capac i ty to raise additional equity in the future, based on recent success.

The Directors are of the opinion that no asset is likely to be realised for an amount less than that amount at which it is re c orded in the statement of financial position. Accordingly the financial statements do not include any adjustments relating to the recoverability and classification of recorded asse t amounts or the amount and classifica t ion of liabilities that might be necessary should the c onsolidated entity not continue as a goin g concern.

Note 2: Dividends

No dividends have been declar e d for the period ended 31 December 2011

Note 3: Segment Information

The entity operates in 1 indu s try segment, mining & exploration, and its activities can be divided into 3 reportable segm e nts based on reports received and review e d by its Chairman.

The 3 reportable segments are based on 3 distinct geographical loc a tions, South Africa, Indonesia and Australia. Minin g & exploration activities are carried only on the South African and Indonesian segments; whereas the Australian segment reflects only the administrative arm of the business that s u pports the mining & exploration activities in the other 2 geographical locations.

31-December-2011
South
Africa Indonesia Australia	Consolidated $'000
$'000 $'000 $'000
External Sales Other Revenue Unallocated revenue - - - - - 53 - - - - 53 -
Total - - 53 53

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Segment Result Unallocated result Income tax benefit/(expense) (1,212) (224) (478 - - - - - - ) (1,914) - -	Segment Result Unallocated result Income tax benefit/(expense) (1,212) (224) (478 - - - - - - ) (1,914) - -
Net loss after tax (1,212) (224) (478 ) (1,914)
South
Africa Indonesia Australia	Consolidated $'000
$'000 $'000 $'000
Other Acquisition of non-current segment Depreciation & amortisation assets - 330 - 2 98 - 330 100
31-December-2010
South
Africa Indonesia Australia	Consolidated $'000
$'000 $'000 $'000
External Sales Other Revenue Unallocated revenue - - - - - 88 - - - - 88 -
Total - - 88 88
Segment Result Unallocated result Income tax benefit/(expense) (652) - (110 - - - - - - ) (762) - -
Net loss after tax (652) - (110 ) (762)
South
Africa Indonesia Australia	Consolidated $'000
$'000 $'000 $'000
Other Acquisition of non-current segment Depreciation & amortisation assets 4 - - 12 - - 4 12

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Segment Assets
	Mining
	31-Dec-11	30-Jun-11
	$'000	$'000
South Africa	17,774	20,044
Australia	1,888	2,167
Indonesia	5,169	-
Total Segment Assets	24,831	22,211
Segment Liabilities
	Mining
	31-Dec-11	30-Jun-11
	$'000	$'000
South Africa	976	566
Australia	170	63
Indonesia	153	-
Total Segment Liabilities	1,299	629

Note 4: Exploration & Evalu a tion

Economic entity

				West Wits
				Mine,
				Luipaards
			E ast	Vlei Mine &
	Derewo	Rand &	Ch amp	West Rand
	River Gold	DRD	D 'or	Consolidated
	Project	Leases	M ine	Lease	Total
31-Dec-11	$'000	$'000	$ '000	$'000	$'000
Balance at the beginning of year 30.06.11	-	9,309	1, 497	9,157	19,963
Acquisition during the year	4,557	-	-	-	4,557
Tenements Acquired	-	-	-	-	-
Exploration Expenses	310	21	-	-	331
Foreign exchange translation gain/(loss)	(18)	(1,133)	(1 82)	(1,115)	(2,448)
Asset reclassified as 'held for sale'	-	-	(1,3 15)*	(8,042)*	(9,357)
Carryingamount for the halfyearperiod	4,849	8,197	-	-	13,046

• The Company has reclassified these l ease assets into ‘assets held for sale’ for the half yea r ended 31 Dec 2011 (see note 9 and 10 for further details).

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Economic entity

				West Wits
				Mine,
				Luipaards
			E ast	Vlei Mine &
	Derewo	Rand &	Ch amp	West Rand
	River Gold	DRD	D 'or	Consolidated
	Project	Leases	M ine	Lease	Total
30-Jun-11	$'000	$'000	$ '000	$'000	$'000
Balance at the beginning of year 30.06.10	-	10,209	1, 645	9,937	21,791
Tenements Acquired	-	-	-	-	-
Exploration Expenses	-	82	11	176	269
Foreign exchange translationgain/(loss)	-	(982)	(1 59)	(956)	(2,097)
Carryingamount at the end of theyear	-	9,309	1, 497	9,157	19,963

			31-Dec-11	30-Jun-11
			$'000	$'000
Exploration	expenditure	- capitalised	331	269
Exploration	expenditure	- non-capitalised	772	85
			1,103	354

Note 5: Contingent Assets & Liabilities

The consolidated group is not involved with any legal or arbitration proc e edings and, so far as Directors are aware, no such proceedings are pending or threate n ed against the consolidated group (30 June 2011: $0).

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Note 6: Issued Capital

Parent entity	31-Dec-11	31-Dec-11	30-Jun -11	30-Jun -11
	No.	$	No.	$
Ordinary shares	2 55,722,340	28,734,303	129,472,340	23,268,567
Options over shares	78,424,532	973,990	17,862,032	475,304
Total		29,708,293		23,743,871

During the half year ended 31 Decemb e r 2011, the following movements in equity occurred:

		31-Dec-11		30-Jun-11
OrdinaryShares	No.	$	No.	$
At the beginning of the reporting period	129,472,340	23,268,567	121,972,340	22,721,020
Shares issued during the year via a right issue and
private placements to raise working cap ital	46,250,000	1,578,000	7,500,000	572,000
Acquisition of Derewo River Gold Projec t	80,000,000	4,080,000	-	-
Transaction costs relatingto share issue s	-	(192,264)	-	(24,453)
Total	255,722,340	28,734,303	129,472,340	23,268,567
		31-Dec-11		30-Jun-11
Options	No.	$	No.	$
At the beginning of the reporting period	17,862,032	475,304	18,811,300	445,381
Options issued to Directors	7,500,000	46,494	1,150,000	29,923
Options issued to Consultants	11,500,000	92,192	-	-
Free attaching options to Capital Raising	11,562,500	-	-	-
Options issued to services rendered	17,500,000	210,000	-	-
Acquisition of Derewo River Gold Projec t	12,500,000	150,000	-	-
Exercise of options	-	-	-	-
Expiration of options	-	-	(2,099,268)	-
Total	78,424,532	973,990	17,862,032	475,304
		31-Dec-11		30-Jun-11
Performance Shares	No.	$	No.	$
At the beginning of the reporting period	-	-	-	-
Acquisition of Derewo River Gold Projec t*	46,000,000	-	-	-
Total	46,000,000	-	-	-

• 46,000,000 performance shares are issued to Paniai Gold Limited as part of the p urchase consideration of the acquisition of the Derewo River G o ld Project. These performance shares (non-voting and non-participation) are contingent on achieving 20,000 o u nces of gold by 28 July 2013.

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Note 7: Net Tangible Assets

	31 December 2011	31 December 2010
Net Tangible Assets	$23,532,028	$23,580,235
Shares (No.)	255,722,340	121,972,340
Net Tangible Assets(Cents)	0.0920	0.1933

Note 8: Business Combinati o n

The Company completed the s ale of share agreement on the 27 July 2011 with Paniai Gold Limited to acquire 100% equity of NuGold Company Ltd, a Hong K o ng Corporation. The acquisition was approved by West Wits Mining Limited shareholders o n 2 May 2011. On satisfaction of certain conditions precedent including approval from NuGo l d shareholders, West Wits assumed effective control o f NuGold Company Ltd on 27 July 2011.

NuGold Company Ltd, a Hong K ong Corporation, holds 100% equity inte r est in the Indonesian corporation PT. NuGold Indone s ia Pty Ltd, which in turns holds an 80% e quity interest on PT. Madinah Qurrata’ain (PT.MQ). PT.MQ holds interest in the gold explo r ation and extraction project known as the Derewo River Gold Project, located in Papua New Guinea, Indonesia.

The Company believes that t h e Derewo River Gold Project is a promi s ing new exploration project and will offer near term gold production opportunity.

Details of the acquisition are as follows:

(a) Consideration

(a) Consideration
	$'000
Ordinary Shares 80,000,000 in West Wits Mining Ltd at $0.051 per share	4,080
Performance Shares 46,000,000 inW est Wits Mining Ltd*	-
Listed Options 12,500,000 in WestW its Mining Ltd at $0.04 per option	150
Cash Consideration	350
Total Consideration	4,580

The 46,000,000 Performance Shar e s (non-voting and non-participation) are continge n* t on achieving 20,000 ounces of gold by 28 July 2013.

(b) Fair Values

Details of the fair values at the da t e of acquisition are set out below:

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	Fair Value on Acquisition
	Initial value Adjust $' 000 $ ment Final Fair Value ' 000 $' 000
Assets: Cash and cash equivalents Mine Bond Property, plant and equipment Exploration,evaluation and develo pment	3 110 210 52 - 3 - 110 - 210 4,505 4,557
Total Assets	375 4,505 4,880
Liabilities: Trade and otherpayables	300 - 300
Total Liabilities	300 - 300
Fair Value of identifiable net asset s	75 4,505 4,580

Note 9: Non-current assets c lassified as held for sale

The Company has been pursui n g the goal of realising value from its Sou t h African assets in order to fund further explora t ion program and development of the D erewo River Gold Project. The Company has announced o n 25 January 2012 that it has entered int o an agreement to sell its Randfontein lease assets t o a Mintails Ltd and Galabyte Pty Ltd Consortiu m for AUD $9,000,000 subject to completion of due dilige n ce.

As a result, the Company has reclassified the carrying value attributabl e to the West Wits Lease, West Rand Consolidat e d Lease, Luipaardsvlei Lease and East C hamp D’Or Lease (“the Randfontein Cluster”) as “assets held for sale” pending the com p letion of the due diligence and finalisation of the contract for sale.

Note 10: Events Subsequent to Reporting Date

Date	Event
25/01/2012	WWI ag rees to sell its Randfontein lease assets to Mint ails Ltd and Galabyte
	Pty Ltd Consortium for AUD $9,000,000 subject to completion of due
	diligenc e.
14/03/2012	WWIw ill continue to monitor developments in resp ect of the amended
	Indone sian Mining Legislation Amendments and willp rovide shareholders
	with fu rther updates in due course once further inform ation is available.

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Directors Declaration

The Directors of the company declare that:

1. The financial statement s and notes, as set out on pages 9 to 21:

2. a. Complying with Accounting Standard AASB 134: Int e rim Financial Reporting and th e Corporations Regulations; and

3. b. Giving a true and fair view of the economic entity’s financia l position as at 31 December 20 1 1 and of its performance for the half year ended on that date.

4. In the directors’ opini o n there are reasonable grounds to be l ieve that the company will be able t o pay its debts as and when they be c ome due and payable.

This declaration is made in ac c ordance with a resolution of the Board of D irectors.

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Michael Quinert Chairman

14[th] of March 2012, Wednesd a y

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Auditors Review Report

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