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1 RENASCOR RESOURCES LIMITED AND SUBSIDIARIES A.B.N CONSOLIDATED FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2013

2 RENASCOR RESOURCES LIMITED CORPORATE DIRECTORY DIRECTORS David Christensen Geoff McConachy Andrew Martin Stephen Bizzell Chris Anderson AUSTRALIAN BUSINESS NUMBER SECRETARY Angelo Gaudio ADMINISTRATION AND REGISTERED OFFICE 36 North Terrace Kent Town SA 5067 Phone: Fax: Website: SHARE REGISTRY Link Market Services Limited ANZ Building Level 15, 324 Queen Street Brisbane Qld 4000 Phone: Fax: SOLICITORS HopgoodGanim Lawyers Level 8, Waterfront Place 1 Eagle Street Brisbane Qld 4000 Phone: Fax: AUDITORS BDO Audit (SA) Pty Ltd Level 7, BDO Centre 420 King William Street Adelaide SA 5000 Phone: Fax: McDonald Steed McGrath Lawyers Gilbert Street Adelaide SA 5000 Phone: Fax: Competent Persons Statement The exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. G. W. McConachy (fellow of the Australasian Institute of Mining and Metallurgy) who is a director of Renascor. Mr. McConachy has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a competent person as defined by the 2012 edition of the Australasian code for reporting of exploration results, mineral resources and ore reserves (the JORC code, 2012 edition). Mr. McConachy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 2

3 DIRECTORS REPORT Your directors present their report on the consolidated entity consisting of Renascor Resources Limited and the entities it controlled at the end of, or during, the half-year ended 31 December Directors The following persons were directors of Renascor Resources Limited (the Company) during the halfyear and up to the date of this report, unless otherwise stated: David Christensen Geoff McConachy Andrew Martin Stephen Bizzell Chris Anderson Company Secretary Angelo Gaudio Review of Operations For the half-year ended 31 December 2013, the loss for the consolidated entity after providing for income tax was $763,374 (2012: $194,295). Operational activities and highlights for the half-year ended 31 December 2013 are listed as follows: In September 2013, Renascor commenced its maiden drilling campaign at Eastern Eyre, completing 1,150 metres of reverse circulation (RC) drilling. The primary prospect targeted in this initial drill program was 1050 East, where previous RAB drilling had intersected shallow copper mineralisation. The 1050 East prospect is within southern portion of Olympic Dam iron-oxide, copper-gold-uranium (IOCGU) belt, and Renascor s maiden drilling program intersected a major new, copper-cobalt-silver zone. See Renscor s ASX Releases dated 10 September 2013 and 15 October 2013 (please note that the company is not aware of any new information or data that materially affects the information contained in these announcements). In October 2013, Renascor completed an Induced Polarisation (IP) survey, identifying a major chargeability zone at 1050 East extending both north and south of copper mineralization intersected in its maiden drilling program. See Renascor s ASX Release dated 28 October 2013 (please note that the company is not aware of any new information or data that materially affects the information contained in this announcement). During November and December 2013, Renascor completed a 1,100 metre diamond drilling program at its 1050 East prospect to test for the continuation of mineralisation intersected in Renascor s maiden drilling program at 1050 East on Section N. All five holes completed by Renascor have intersected significant copper, cobalt and silver mineralisation, defining an envelope of poly-metallic mineralisation over 50 metres to 70 metres true-width and 200 metres down-dip extent, open in all directions. See Renascor s ASX release dated 21 January 2014 (please note that the company is not aware of any new information or data that materially affects the information contained in this announcement). 3

4 Review of Operations (continued) DIRECTORS REPORT At Renascor s Annual General Meeting held on 29 November 2013, a shareholder s resolution was approved changing the company s name to Renascor Resources Limited from Renaissance Uranium Limited. Renascor entered into an agreement with Currie Resources Pty Ltd (Currie) that grants Renascor an option to acquire 100% of two exploration licences, subject to the final grant of the licences to Currie. The tenements, which are currently under application to Currie, cover an extensive area immediately north and east of the Eastern Eyre project area. The optioned ground covers 314 km2 and contains, in particular, an extension of the faulting zone from Renascor s current project area into the northern block of the optioned ground. During the half-year ended 31 December 2013 the consolidated entity surrendered exploration licences EL (Ngalia Project in NT), EL 4814 and EL5014 (Tanners Dam Project in SA) and exploration licence application 2013/126 (Minnipa Project in SA). Subsequent to the half-year ended 31 December 2013 the consolidated entity surrendered exploration licences EL s 28259, 28260, 28261, 28262, 28285, and (Amadeus Basin Project in NT) and EL 4823 (Quinyambie tenement in the Frome Basin). 4

5 DIRECTORS REPORT Auditor s Independence Declaration A copy of the independence declaration by the lead auditor under section 307C is included on page 6. This report is signed in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by: David E. Christensen Director Adelaide Date: 07 March

6 RENAISSANCE URANIUM LIMITED AND ITS SUBSIDIARIES DECLARATION OF INDEPENDENCE 6 6

7 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 Note Consolidated Entity Half-Year Ended 31 December 31 December $ $ Revenue 40, ,890 Other income 3(a) 158, ,818 Administration and consulting expenses (73,266) (83,706) Depreciation and amortisation expenses (4,899) (4,671) Employee benefits expense (281,105) (283,185) Legal fees (7,834) (33,791) Office accommodation (12,089) (14,070) Impairment of exploration costs 3(b) (544,148) (16,156) Other expenses (38,880) (45,424) Loss before income tax expense (763,374) (194,295) Income tax expense - - Loss for the half-year attributable to the owners of Renascor Resources Limited (763,374) (194,295) Other comprehensive income - - Total comprehensive income for the half-year attributable to the owners of Renascor Resources Limited (763,374) (194,295) Earnings/(loss) per share for loss attributable to owners of Renascor Resources Limited: Cents Cents Basic earnings/(loss) per share (0.67) (0.17) Diluted earnings/(loss) per share (0.67) (0.17) The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 7

8 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 Note Consolidated Entity 31 December 30 June $ $ ASSETS Current Assets Cash and cash equivalents 1,388,681 2,658,106 Trade and other receivables Other 184,601 44, ,780 34,884 Total Current Assets 1,617,820 2,909,770 Non-Current Assets Property, plant and equipment 17,368 22,267 Exploration and evaluation 6,623,596 6,162,500 Total Non-Current Assets 6,640,964 6,184,767 TOTAL ASSETS 8,258,784 9,094,537 LIABILITIES Current Liabilities Trade and other payables Provisions 200,947 87, ,248 66,704 Total Current Liabilities 288, ,952 Non-Current Liabilities Provisions 18,162 8,790 Total Non-Current Liabilities 18,162 8,790 TOTAL LIABILITIES 306, ,742 NET ASSETS 7,952,042 8,709,795 EQUITY Contributed equity 4 9,798,800 9,798,800 Reserves 987, ,097 Accumulated losses (2,834,476) (2,071,102) TOTAL EQUITY 7,952,042 8,709,795 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 8

9 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 Issued Accumulated Option Total Capital Losses Reserve Equity $ $ $ $ Balance at 1 July ,758,800 (1,542,113) 917,275 9,133,962 Total comprehensive income for the half-year Loss for the half-year - (194,295) - (194,295) Total comprehensive income - (194,295) - (194,295) Transactions with owners in their capacity as owners Contributions of Equity 40, ,000 Share based payments ,376 20,376 40,000-20,376 20,376 At 31 December ,798,800 (1,736,408) 937,651 9,000,043 Balance at 1 July ,798,800 (2,071,102) 982,097 8,709,795 Total comprehensive income for the half-year Loss for the half-year - (763,374) - (763,374) Total comprehensive income - (763,374) - (763,374) Transactions with owners in their capacity as owners Share based payments - - 5,621 5, ,621 5,621 At 31 December ,798,800 (2,834,476) 987,718 7,952,042 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 9

10 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 Note Consolidated Entity Half-Year Ended 31 December 31 December $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts for Goods & Services Tax paid 58, ,271 Payments to suppliers and employees (including payments of Goods & Services Tax) (457,720) (456,064) Interest received Research and Development tax offset refund 41, , ,893 - PACE Grant funding received 40,000 - Net cash (outflow)/inflow from operating activities (156,253) (228,900) CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment - (853) Payments for exploration & evaluation (1,113,172) (1,026,849) Net cash (outflow)/inflow from investing activities (1,113,172) (1,027,702) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares - - Net cash (outflow)/inflow from financing activities - - NET INCREASE/(DECREASE) IN CASH HELD (1,269,425) (1,256,602) Net cash at beginning of period 2,658,106 5,107,959 NET CASH AT END OF PERIOD 1,388,681 3,851,357 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 10

11 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER BASIS OF PREPARATION These general purpose financial statements for the half-year reporting period ended 31 December 2013 have been prepared in accordance with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act The historical cost basis has been used. Due to their short-term nature, the carrying amounts of current receivables and current trade and other payables is assumed to approximate their fair value. These half-year financial statements do not include all the notes of the type normally included in annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the annual financial statements for the year ended 30 June 2013 and any public announcements made by Renascor Resources Limited during the halfyear reporting period in accordance with the continuous disclosure requirements of the Corporations Act The same accounting policies and methods of computation have generally been followed in these half-year financial statements as compared with the most recent annual financial statements, except for the new and amended accounting standards and interpretations listed below: - AASB 10 Consolidated Financial Statements - AASB 11 Joint Arrangements - AASB 12 Disclosure of Interests in Other Entities - AASB 13 Fair Value Measurement and AASB Amendments to Australian Accounting Standards arising from AASB 13 - AASB 119 Employee Benefits and AASB Amendments to Australian Accounting Standards arising from AASB AASB 127 Separate Financial Statements - AASB 128 Investments in Associates and Joint Ventures - AASB Amendments to Australian Accounting Standards arising from the consolidation and Joint Arrangements standards - AASB Amendments to Australian Accounting Standards - Disclosures Offsetting Financial Assets and Financial Liabilities - AASB Amendments to Australian Accounting Standards arising from Annual Improvements Cycle - AASB Amendments to Australian Accounting Standards Transition Guidance and Other Amendments The application of the above standards amendments has had no material impact on the disclosures or on the amounts recognised in the consolidated financial statements. 11

12 2. GOING CONCERN NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2013 The half-year financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. This includes the realisation of capitalised exploration expenditure of $6,623,596 (30 June 2013: $6,162,500). The consolidated entity has incurred a net loss after tax for the half-year ended 31 December 2013 of $763,374 (31 December 2012: $194,295) and operations were funded by a net cash outflow of $1,269,425 (31 December 2012: $1,256,602). At 31 December 2013, the consolidated entity had net current assets of $1,329,240 (30 June 2013: net current assets of $2,533,818). The consolidated entity s ability to continue as a going concern is contingent on raising additional capital and/or the successful exploration and subsequent exploitation of its areas of interest through sale or development. Should the consolidated entity not achieve the matters set out above, there would then be significant uncertainty over the ability of the consolidated entity to continue as a going concern, and, therefore, it may have to realise its assets and extinguish its liabilities, other than in the ordinary course of business and at amounts different from those stated in the half-year financial report. The half-year financial report does not include any adjustments that may be necessary if the consolidated entity is unable to continue as a going concern. 3. LOSS FOR THE HALF-YEAR Consolidated Entity Half-Year Ended 31 December 31 December $ $ The following items are relevant in explaining the financial performance for the interim period: (a) Revenue and other income PACE Grant funding received from DMITRE 40,000 - Research and Development tax offsets 118, ,818 (b) Expenses Exploration costs expensed 544,148 16,156 12

13 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER ISSUED CAPITAL (a) Ordinary shares Consolidated Entity Consolidated Entity Half-Year Ended Half-Year Ended Number of shares Number of shares $ $ At 1 July 114,800, ,000,000 9,798,800 9,758,800 Shares issued during the half-year ended ,000-40,000 December (1) Share issue costs Shares issued during the half-year - 800,000-40,000 Total as at 31 December 114,800, ,800,000 9,798,800 9,798,800 (1) During Half-Year Ended 31 December 2012, 800,000 ordinary shares were issued to Frome Uranium Pty Ltd, a subsidiary of Callabonna Uranium Limited (ASX: CUU) as consideration for the acquisition of ten exploration licences in the Frome Basin and one exploration licence located in the northern Gawler Craton of South Australia. 5. SEGMENT INFORMATION The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The consolidated entity is managed primarily on a geographic basis, that is, the location of the respective areas of interest (tenements) in Australia. Operating segments are determined on the basis of financial information reported to the Board which is at the consolidated entity level. The consolidated entity does not have any products or services it derives revenue from. In the opinion of the board of directors, the consolidated entity has one reportable segment, being exploration for copper, gold, uranium and associated minerals in Australia. Accordingly, all significant operating decisions are based upon analysis of the consolidated entity as a single segment. The financial results from this segment are equivalent to the financial statements of the consolidated entity as a whole. The basis for determining segments has not changed from the last annual financial statements. 13

14 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER CONTINGENT LIABILITIES There have been no material changes in contingent liabilities or contingent assets since the last annual reporting date. 7. EVENTS SUBSEQUENT TO REPORTING DATE Subsequent to the half-year ended 31 December 2013 the consolidated entity surrendered exploration licences EL s 28259, 28260, 28261, 28262, 28285, and (Amadeus Basin Project in NT) and EL 4823 (Quinyambie tenement in the Frome Basin). This has resulted in an impairment of $207,212 in previously capitalised exploration costs being recognised in the halfyear financial report. There has not been any other matter or circumstance that has arisen since the end of the reporting period that has significantly affected, or may significantly affect, the operations of the consolidated entity or the state of affairs of the consolidated entity in future periods. 14

15 DECLARATION BY DIRECTORS The directors of the Company declare that: 1. The financial statements and notes set out on pages 7 to 14 are in accordance with the Corporations Act 2001, including: (a) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and (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 ended on that date. 2. In the directors opinion, 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 made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by: David E. Christensen Director Adelaide Date: 12 March

16 Tel: Fax: Level 7, BDO Centre 420 King William St Adelaide SA 5000 GPO Box 2018, Adelaide SA 5001 AUSTRALIA INDEPENDENT AUDITOR S REVIEW REPORT TO THE MEMBERS OF RENASCOR RESOURCES LIMITED Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of Renascor Resources Limited, which comprises the consolidated statement of financial position as at 31 December 2013, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors declaration of the consolidated entity comprising the company and the entities it controlled at the half-year s end or from time to time during the half-year. Directors Responsibility for the Half-Year Financial Report The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year 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 half-year 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 half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity s financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations As the auditor of Renascor Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year 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 We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Renascor Resources Limited, would be in the same terms if given to the directors as at the time of this auditor s review report. BDO Audit (SA) Pty Ltd ABN is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN , an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania. 16

17 Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Renascor Resources Limited is not in accordance with the Corporations Act 2001 including: (a) (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 ended on that date Complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations Emphasis of Matter on Going Concern Without modifying our opinion, we draw attention to Note 2 in the financial report, which indicates that the ability of the consolidated entity to continue as a going concern is dependent upon the future successful raising of necessary funding through equity, successful exploration and subsequent exploitation of the consolidated entity s tenements, and/or sale of non-core assets. These conditions, along with other matters set out in Note 2, indicate the existence of a material uncertainty that may cast significant doubt about the consolidated entity s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business. BDO Audit (SA) Pty Ltd Michael Haydon Director Adelaide, 12 March