I N T E R I M F I N A N C I A L R E P O R T

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1 ACN I N T E R I M F I N A N C I A L R E P O R T 31 December 2015

2 C O N T E N T S PAGE Directors' Report 2 Interim Financial Report Consolidated Statement of Profit or Loss and Other Comprehensive Income 19 Consolidated Statement of Financial Position 20 Consolidated Statement of Changes in Equity 21 Consolidated Statement of Cash Flows 22 Notes to the Consolidated Financial Statements 23 Directors' Declaration 27 Auditor s Independence Declaration 28 Independent Auditor s Review Report 29 1

3 D I R E C T O R S R E P O R T The Directors present their report on the consolidated entity consisting of Newfield Resources Limited (the Company or Newfield) and its subsidiaries (the Group or Consolidated Entity) for the half-year ended 31 December 2015 and the Auditor s Review Report thereon. DIRECTORS The Directors of the Company at any time during or since the end of the interim period and until the date of this report are noted below. Mr Michael Lynn Executive Director appointed 24 August 2015 Mr Anthony Ho Executive Director appointed 14 September 2011 Mr Suryandy Jahja Non-Executive Director appointed 6 August 2015 Mr Bryan Alexander Executive Director appointed 1 May 2014; resigned 24 August 2015 Mr Murray Kornweibel Non-Executive Director - appointed 6 December 2011; resigned 19 August 2015 Mr Joshua Letcher Executive Director - appointed 31 March 2014; resigned 16 November 2015 Ms Sanny Nanang Non-Executive Director - appointed 30 March 2012; resigned 6 August 2015 REVIEW OF OPERATIONS 1. THE ALLOTROPES DIAMOND PROJECT SIERRA LEONE (NEWFIELD 100%) Alluvial Exploration Activities The Group is currently active in all five of its exploration licences covering 1002 km 2 of tenement holdings within the Bo, Bonthe, Moyamba and Pujehun Districts in the Southern Province of Sierra Leone (Figure 1). All five tenements are held by the Group s local subsidiary in Sierra Leone, Allotropes Diamond Company Ltd (Allotropes). Many of the activities in this review period have been directed towards planning for the dry season exploration program, including the updating of GIS and data management and the completion of an artisanal workings survey, along with the mapping of Pandanus Candelabrum sp. occurrences (Kimberlite Tree) within southern and central areas, to test its association with kimberlite occurrences. The collection and transport of samples from field to plant site has been hampered by heavy seasonal rains during much of the period, but with the rains having now abated and with the resumption of the exploration program, focus has turned to activities within EL 15/2012, where overburden stripping and stockpiling of ore within the small-scale mining licence (SML) continues to be a priority. With increased accessibility to areas, exploration bulk-sampling has also commenced in EL 19/2014, within the Hima and Mano alluvial project area, as well as at the Yawei Flats in EL 11/2014. A second-hand rotary pan plant, with dual flowsort x-ray units and hands-off glove sorting box, has been purchased to accommodate the planned increase in alluvial bulk-sampling in the central and southern licences and to circumvent the long tramming distances currently incurred with transporting material to the DMS plant at the Golu (Bo) site. The Group has completed all the preparatory work for a planned airborne magnetometry survey scheduled to commence in Q An outline of the exploration activities follows. 2

4 D I R E C T O R S R E P O R T Figure 1 Exploration Licence - EL 15/2012: Baoma Alluvial Project Figure 1. Status of tenement holdings, Sierra Leone. During this period, exploration activities focussed on the collection of soil samples over interpreted geophysical targets to determine their heavy mineral content (HMC) in preparation for the airborne magnetic survey. To date, samples have been recovered from 9 interpreted targets and grain counts completed in both the +2mm and -2mm fraction. This ground-truthing work will complement the airborne survey planned in Q1 2016, through the analysis of heavy mineral concentrate with the view to recovering Kimberlite Indicator Minerals (KIMs) to identify any causative bodies and to help prioritise targets for post-survey drilling. Running concurrently, with the above exercise, a further 260 in-fill samples (Figure 3) from additional high-interest targets have been collected and analysed at the Bo lab for their corundum counts. Corundum abundance, specifically water-worn corundum, is a tried and tested local indicator mineral for diamondiferous gravels, as it has a similar specific gravity to diamonds. Many palaeochannel systems that are economic have concomitantly recovered water-worn corundum in their heavy mineral suites. Several bulk-samples were also recovered from the eastern-most extent of the licence, from an area previously explored by Majestic Mining Ltd, where high-terrace palaeo-gravel occurrences have been investigated, some 40m above the level of the Modern Sewa River (Figure 2). An arrangement with the community to extract several thousand tons of gravel for bulk-sample testing, is being finalised. This gravel will be processed to test for diamond mineralisation, once a sufficient stockpile has been achieved. 3.2m Figure 2: Gravel occurrence at the Majestic locality, EL 12/2015. In-situ gravel thickness is up to 3.2m. Quartz vein pebbles (inset) depict fluvial nature of the Majestic gravels. 3

5 D I R E C T O R S R E P O R T Figure 3. Map showing locations of soil samples collected for corundum grain counts-el 15/2012. Small-scale Mining Licence-Golu Pit The licence covers an area of diamondiferous alluvial (fluvial facies) gravels at the Golu site within Exploration Licence 15/2012. The gravels occupy fringing terraces and embayments relating to the ancestral Sewa River system. The Lower Terrace fluvial facies has been described in previous Company updates (e.g. NWF ASX Release 27 June, 2014). The target horizon comprises a thin (20cm-80cm) basal gravel unit that unconformably overlies the water-bevelled basement floor-rocks adjacent to the Modern Sewa River. Since the start to the dry-season mining activities, some 1300 tons of basal gravel has been stockpiled from mining of the basal gravels from block 3 in preparation for processing, and the overburden stripping of mine blocks has commenced (refer Figure 4).* The DMS plant is operational after some minor upgrades following an independent plant audit, and the production team has also taken this opportunity to upgrade the civil works around the plant. During the trial-mining phase (Figure 5), Allotropes implemented strict ore quality control measures in order to minimise mining dilution and optimise the recovery of the previously identified, more mineralised, basal gravel ore horizon. During the trial-mining phase, it was also decided to ascertain the degree of diamond mineralisation within the overlying and more matrix-supported gravel unit within the same fluvial stratigraphic sequence. In addition to the basal gravels, Allotropes has also processed several lower grade stockpiles which comprise the basal gravels diluted with varying amounts of an overlying pebbly sand unit. Since the issue of the Small-scale Mining Licence (SML) on 1st July, 2015, the trial-mining phase resulted in some 1000 carats being recovered to date for c.18,000 tons of both low and high grade ore processed during the test work. The diamonds recovered will assist in generating revenue and size-frequency distribution curves, and is a means to testing the efficiency of the plant and x-ray unit in recovering diamonds. All the samples recovered from the Golu pit have been processed on site, using a 10 ton per hour (tph) Dense Media Sorting (DMS). An adjustment to the bottom screen size [BSS] has been made, increasing the aperture from 1.65mm to 2.0 mm slots. This is in line with the recent plant audit and testwork objectives. *In accordance with Listing Rule , the Company confirms in the subsequent public report that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. 4

6 D I R E C T O R S R E P O R T Figure 4. Map showing void, current and planned mine blocks and progress to date for the Golu Small-scale Mining Licence (SML; inset) Figure 5. Overburden pre-stripping and bulk-sampling activities in the Golu pit, Baoma District. The tree-line marks the north bank of the Sewa River. Airborne Magnetometry Survey A total of 507 line-km of airborne survey has been planned for EL 15/2012 (Figure 6). The flying is expected to commence in Q1 2016, over high-interest kimberlite targets selected by the technical team. It is anticipated that the survey will locate drill-ready targets in combination with selected ground-magnetometry traverses. It is anticipated that the survey will locate drill-ready targets that will be available for drilling in H

7 D I R E C T O R S R E P O R T Figure 6. Proposed outline (red) of airborne survey blocks for EL 15/2012 to be flown in Q1, Dredging Program-Sewa River An application for an exploration dredging permit was granted in the review period. Planning has commenced with target identification being initiated over four of the five contiguous Allotropes tenements that straddle c.92 km of the medial to lower reaches (Coastal Plain Surface) of the Sewa River system (Figure 7). Large-scale dredging operations have been conducted on the Sewa River since 1962 (Hall, 1972), with varying degrees of success and planned has commenced on the selection of suitable dredge targets within EL 15/2012. The dredging program will initially commence in the EL 15/2012 tenement (c.f Figure. 7). Figure 7. At right-an example of proposed dredging targets within EL 15/2012. Suitable dredge sites are selected on the basis of the depth of the features scoured out of the bedrock and whether they contain gravels (warm colours, above). A submersible dredge pump (i.e. jet pump) already on site (at left), will be deployed once a suitable floating platform has been procured. 6

8 D IRE C T O R S R E P O R T Exploration Licence EL 20/2014: Jomu-Maina-Tongie Alluvial Project As with the adjoining EL 15/2012 licence, exploration activities have focused on the soil sampling ahead of the planned airborne survey and a total of 10 targets have been sampled for their heavy mineral content. In addition, a further 807 in-fill samples (Figure 8) from additional high-interest targets have been collected and analysed at the Bo lab for their corundum counts. Figure 8. Map showing locations of soil samples collected for corundum grain counts over EL 20/2014. Airborne Magnetometry Survey A total of 356 line-km of airborne survey has been planned for EL 20/2014. The flying will be conducted in Q1 2016, over highinterest kimberlite targets selected by the technical team. It is anticipated that the survey will locate drill-ready targets in combination with selected ground-magnetometry traverses. Exploration Licence - EL 19/2014: Hima-Mano Alluvial Program Background: A total of 357 test pits (1m x 1m surface dimensions) were completed to date on the Sewa River South Bank around the Hima and Mano villages within EL 19/2014, within the review period. The grid pattern layout of the test-pits was designed to delineate the distribution of potentially diamondiferous gravels and ascertain gravel and overburden thickness and facies type, the latter ranging from surface residual lateritic gravels (relict, colluvial-type placer) overlying weathered saprock, to fluvial (Ancestral Sewa River) facies overlying fresh, water-bevelled, granitoid basement and Rokel River Group meta-volcanics. Within the reporting period, seventeen (17) 2m x 2m dimension test pits (Figure 9) were completed on or adjacent to the bulksample sites conducted by Cream Minerals Ltd in 2005 (Ikona, 2006). The pits were aimed at replicating the distribution of gravels identified during the Cream bulk-sampling campaign. All pits located the tops of a thick gravel sequence. Further work in Year 2, is required to obtain full exposures of these deep gravels. In addition, the heavy mineral content (HMC) data relating to kimberlite indicator minerals (KIMs) was also compiled, which assisted in the siting of excavator test pit windows to determine optimal bulk-sample sites (c.f Figure 9); the rationale being that the higher percentages of HMC also reflects host gravels with an enhanced diamond tenor. It is expected that several bulk-sample pits, aimed at assessing the degree of mineralisation within the gravels identified, will be completed early in Q

9 D I R E C T O R S R E P O R T Figure 9. Allotropes scout pitting centred around the former Cream Minerals exploration licence on the northern side of the Tindeye River (vegetated area) near the village of Mano. The Sewa River is at left. White dashed line is a portion of the Cream Minerals delineated mineralised gravel occurrence. Airborne Magnetometry Survey A total of 409 line-km of airborne survey has been planned for EL 19/2014. The flying will be conducted in Q1 2016, over highinterest kimberlite targets selected by the technical team. It is anticipated that the survey will locate drill-ready targets in combination with selected ground-magnetometry traverses. Exploration Licence - EL 12/2014: Lake Fula and Pongola-Mokombo Alluvial Programs Mokombo Bulk-sampling Program: A total of fifteen (15) bulk-sample pits have been excavated to date in the Mokombo Target area of EL12/2014 (Figure 10), with a total extracted volume of 2278m 2 amounting to c.4000 tonnes of extracted gravel awaiting transport to the Golu DMS processing plant. There has been limited capacity to transport samples as the access roads are near impassable during the height of the wet season (May to November). Nevertheless, an estimated 380 tonnes of material have been transported to date and as the roads dry out and maintenance work is completed, the remaining material will be relocated to the processing facility should the opportunity present itself. In all instances, a strict chain of custody has been maintained for all the bulk-samples, from field to plant site some 70 km distant. Lake Fula: Over 292 test pits have been completed to date on this licence and two trenches totalling 445m length of trenching completed to date (Figure 11). The trenches were completed in an attempt to try and locate the source of the diamonds informally being mined around the local Gbenya village. The exploration conducted to date supports a high-terrace, lacustrine deposit. However, within the current review period, a review of heavy mineral samples recovered from the intersection of two micaceous dykes/bodies intersected in these trenches, has prompted a follow-up sampling campaign to test the hypothesis that Lake Fula follows the ENE structural trend of regional kimberlite dyke emplacement. Follow up work is therefore continuing to ascertain the nature of these features; a duricrust layer comprising coarse ilmenite, rutile and other mafic minerals, similar to minerals that are typically reported as KIMs, has been exposed in the trenching. 8

10 D I R E C T O R S R E P O R T Figure 10. Showing bulk-sampling progress at the Mokombo and Pongolo Project localities. The exploration camp is located at Sumbuya. 9

11 D I R E C T O R S R E P O R T Figure 11. Trenching activities (at right), completed at the Lake Fula (Tula) target where 2 micaceous bodies were intersected in a trenching exercise. Follow up work as to whether these may be kimberlitic in nature, is continuing. Background image is total magnetic intensity (TMI) plot. Yellow polygons are artisanal workings. Airborne Magnetometry Survey A total of 370 line-km of airborne survey has been planned for EL 12/2014. The flying will be conducted in Q1 2016, over highinterest kimberlite targets selected by the technical team. It is anticipated that the survey will locate drill-ready targets in combination with selected ground-magnetometry traverses. Exploration Licence - EL 11/2014: Yawei Flat, Lake Fula and Lake Gambia Alluvial Projects. Yawei Flat: The 14x14m dimension, 8m-deep bulk-sample pit located on the Yawei Flat (Figure 12), has been completed with no indication of basal gravel. However, a typical Sewa River fluvial signature in the overlying sands and clays (wood-bearing, indicating slack water deposition) may lend credence to the theory that the nearby Malen River occupies a large, previous palaeo- Sewa River course. Figure 12. The fluvial (river) sequence of the completed Yawei Flat pit. A fossil tree trunk is indicated in the red circle. The pit is interpreted to lie just at the edge of a deeper fluvial sequence. 10

12 D I R E C T O R S R E P O R T Lake Gambia: To date, 300 pits have been completed over the Lake Gambia Target. The field teams have also completed the identification of heavy mineral concentrates (HMC) in over 80% of the pits. These results, along with geological logs, have been utilised in the selection of priority bulk-sample localities. To date, twenty-one (21) bulk sample pits (c.15m x 15m dimension) and five (5) trenches have been planned (Figure 13). Any potential alluvial resource here is very much intact, with only sporadic artisanal mining having occurred in the area. During a field survey in the period, field teams confirm the recovery of diamonds being won from all the artisanal workings. In addition, a Pandanus Candelabrum survey was completed over the licence. These plants, referred to as the Kimberlite Tree, have been sighted principally along streams draining into the Sewa River, as well as along the Sewa River itself. The Pandanus plant is a recognised kimberlite indicator plant and its successful use as an exploration tool has been demonstrated by a kimberlite pipe discovery in Liberia. The study has so far shown that all the locations of the plant are associated with artisanal workings and in some of the locations, artisanal workers have continuously worked with close contact of this vegetation type for several years, informally recognising it as a good diamond indicator. EL LAKE FULA LAKE GAMBIA Figure 13. Gravel Isopach plot of the Lake Fula-Lake Gambia Alluvial Project. The warm colours indicate thicker gravel development. Background image is TMI and southern limit of the legacy Airborne Magnetic Survey data. Inset, shows planned bulk-sample pits and trenches overlying heavy mineral content (HMC) isopach. Airborne Magnetometry Survey A total of line-km of airborne survey has been planned for EL 11/2014. The flying will be conducted in Q1 2016, covering the whole area of the EL and will complete the geophysical database for a previously un-flown section of Allotropes landholdings. The Lake Popei kimberlite dyke discovery is situated in this EL and it is a well-known fact that kimberlites occur as dyke-arrays or form in pipe clusters. It is anticipated that several more drill-ready kimberlites will be identified after the survey, which will additionally be flown at a low-elevation (40m instrument clearance) and thus at high resolution for optimum target identification. Second Diamond Recovery Plant Allotropes secured a second alluvial processing plant in November (photograph 1). The plant comprises three rotary pan plants as well as peripherals, two containerised x-ray flow sorts in working condition and a hands-off glove box. The plant will require refurbishment after its relocation from the Kono District to site, and once fully operational, is expected to be relocated to service the alluvial exploration program in the central and southern licences. 11

13 D I R E C T O R S R E P O RT Photograph 1. View of recently purchased second-hand rotary pan plant, Kono District. EL 15/2012 Small-scale Mining Licence-Rehabilitation Program As per the environmental management plan (EMP) and encompassed within the small-scale licence regulations, rehabilitation of void areas is mandatory. Rehabilitation of the trial-mining void areas (Figure 14), runs concurrently with face advance. In this regard, Allotropes has augmented rehabilitated areas with the planting of regrowth and in this regards, has provided a tree nursery on site. Only native seedlings are selected. Table 1 highlights the type of seedling selected and amount currently being cultivated for rehabilitation purposes: Nursery Trees Species Quantity Gmelainaarborah(Yamanie) 14,000 Terminaliaivorensis(Bajie) 17,000 Tectonia grandys (Ink tree) 3,000 CeibaPentandra(Cotton tree) 4,000 AcaciaMangium 3,000 Total 41,000 Table 1. Showing amount and type of seedlings being cultivated at the Golu mine site for rehabilitation purposes. Figure 14. Areas designated for rehabilitation (top left) and showing details of the plant nursery (bottom left) and profiled and rehabilitated areas in progress. 12

14 D I R E C T O R S R E P O R T Social Initiatives Allotropes has undertaken several social initiatives in the period under review. Primarily, this has involved the use of earth moving equipment to carry out road and bridge repairs. Whilst this undertaking was to improve access to exploration sites, it also created better access routes to villages; improving trade between settlements, and thereby enhancing many socio-economic aspects of the chiefdoms. Contractor employment also forms an integral part of Allotropes equity employment. Local nationals provide quality service that Allotropes utilises on a contractual basis, and temporary employment is provided to the local village population. This allows individuals to earn wages that creates buying power, which in turn, has the potential to improve the micro-economy of each village recruited. Allotropes has also promoted small business initiatives, and a case in point is the successful establishment of a contractor feeding scheme at the Golu small-scale mine (Figure 15, at right). Other social contributions include the construction of a community centre at the Golu village; the implementation of well-pumps at Golu and Waima (Figure 10, at left), and the ongoing construction of a clinic and community centre at Jormu. Figure 15. Ceremonial hand over of the Waima well-pump, at left. Contractor feeding scheme at Golu small-scale mine, at right. The business (Harrison Enterprise), established with the help of Allotropes, is owned by Mrs M. Dukury (second from right); a previous employee of Allotropes. 2. NEWFIELD EXTENDED GOLD PROJECT (NEWFIELD EARNING UP TO 80%) During the quarter the Company completed a first pass air core drilling program to test the recently defined gold-in-auger drilling anomalies in the western target area on the Newfield Extended Project. The Newfield Extended Project comprises one granted exploration licence (E77/1394), covering approximately 40 square kilometres, immediately to the north and west of the Newfield Mining Centre (Figure 16). A historical broad-spaced auger soil geochemistry program completed by the tenement operators in together with a detailed aeromagnetic survey, had outlined three high priority gold targets within the project area. A recent infill and expanded auger soil sampling program completed by Newfield confirmed and extended several gold anomalies in the western and north eastern target areas. (NWF ASX Release 29 April, 2014*) In the western target area several distinct, greater than 10ppb, gold-in-auger soil anomalies have been outlined (Figure 17). These low-order gold anomalies are considered significant as the majority of the western target area is covered by recent transported sands, which mask the surface geochemical response from any potential gold mineralisation at depth. The western gold anomalies are also largely coincident with an area of anomalous nickel geochemistry (greater than 100ppm nickel) in the auger soil sampling (Figure 18). The anomalous nickel geochemistry supports the Company s recent interpretation that the granite greenstone boundary may be located further west than had been inferred by previous explorers. 13

15 D I R E C T O R S R E P O R T During the reporting period a first pass air core drilling program was undertaken to test the coincident gold and nickel anomalies in the western target area. The air core drilling program comprised 23 holes for a total of 1,380m drilled on four east west orientated drill traverses across the auger anomalies. The location of the air core holes are shown on Figure 17 and Figure 18. The air core holes intersected granitic basement beneath variable thicknesses of transported cover. No significant gold mineralisation was returned from the drilling. Widespread weakly anomalous nickel geochemistry (greater than 50 ppm Ni, maximum 143 ppm Ni) was consistently returned from the transported cover sequence in the air core drill holes. The anomalous nickel geochemistry may be associated with the weathering of an interpreted Proterozoic dolerite dyke, which is evident in the magnetic data immediately to the south of the target area. Figure 16 Figure 16 *In accordance with Listing Rule , the Company confirms in the subsequent public report that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. 14

16 D I R E C T O R S R E P O R T Figure 17 Figure 17 15

17 D I R E C T O R S R E P O R T Figure 18 Figure 18 16

18 D I R E C T O R S R E P O R T 3. CREST YARD GOLD PROJECT (NEWFIELD 70%) The Crest Yard Gold Project, covers 2,455 ha, centred between the historical gold mining centres of Kintore and Dunnsville, located approximately 60km northwest of Kalgoorlie, Western Australia. Exploration undertaken by the Company on the project to date has included an aeromagnetic survey, a detailed auger geochemical program and aircore drilling programs. This work has defined several areas of bedrock gold mineralisation associated with zones quartz veining, Fe-staining, sericite alteration and haematite alteration within the previously untested Doyle Dam Granodiorite. The recently completed phase two aircore drilling program returned several areas of anomalous bedrock gold mineralisation (greater 100ppb Au) at or near bottom of drill holes within the southern target area. (NWF ASX Release 30 January, 2015*) The Company continues to review and interpret the results of the aircore drilling programs with a view to refining targets for deeper drill testing in the coming quarters. *In accordance with Listing Rule , the Company confirms in the subsequent public report that it is not aware of any new information or data that materially affects the information included in the relevant market announcement and, in the case of estimates of mineral resources or ore reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant announcement continue to apply and have not materially changed. REFERENCES Hall, P.K., (1972). The diamond fields of Sierra Leone. Geol. Surv. Sierra Leone Bull. 5 (1); 133 pp. Ikona, C. K. (2006). Technical Report on Alluvial Diamond Properties EPL 1/94 & EPL 5/94, Sierra Leone, for Cream Minerals Ltd., 77pp. COMPETENT PERSON S STATEMENT- DIAMONDS The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves on the Allotropes Diamond s Sierra Leone Diamond Project, is based on information compiled by Mr Richard Hall (M.Sc. Geology, Cum Laude) who is a Fellow of the Australasian Institute of Mining and Metallurgy and a member of the Australian Geological Society, and who is an employee of Newfield Resources Limited. Mr Hall has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hall consents to the inclusion in this ASX release of this information in the form and context in which it appears. COMPETENT PERSON S STATEMENT- GOLD The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves on the Newfield, Newfield Extended and Crest Yard Gold Projects is based on information compiled by Mr Bryan Alexander who is a member of the Australasian Institute of Mining and Metallurgy. Mr Alexander has sufficient experience which is relevant to the style of the mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Alexander consents to the inclusion in this ASX Release of this information in the form and context in which it appears. 17

19 D I R E C T O R S R E P O R T RESULTS The Group incurred a loss of 1,528,114 after income tax for the half-year (2014: 1,157,825). AUDITOR S INDEPENDENCE DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, BDO Audit (WA) Pty Ltd, to provide the directors of the Company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 28 and forms part of this Directors report for the half-year ended 31 December This report is signed in accordance with a resolution of the Board of Directors made pursuant to section 306(3) of the Corporations Act Anthony Ho Executive Director Dated at Perth, Western Australia this 10 th day of March

20 C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M E for the half-year ended 31 December 2015 Note 31 Dec Dec 2014 Mining expenses (288,395) - Exploration and evaluation expenses (408,191) (627,184) Corporate and administrative expenses (539,502) (498,692) Exploration and evaluation expenditure written off 9 (221,281) (8,047) Provision for non-recovery of loans (97,013) - Finance income 27,653 17,431 Finance costs (1,385) (1,746) Loss before income tax (1,528,114) (1,118,238) Income tax expense - (39,587) Net loss for the half-year (1,528,114) (1,157,825) Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign operations foreign currency translation differences (2,765,028) 1,039,365 Other comprehensive income for the half-year, net of tax (2,765,028) 1,039,365 Total comprehensive loss for the half-year (4,293,142) (118,460) Loss attributable to: Owners of the Company (1,528,114) (1,157,825) Non-controlling interest - - (1,528,114) (1,157,825) Total comprehensive loss attributable to: Owners of the Company (4,293,142) (118,460) Non-controlling interest - - (4,293,142) (118,460) Basic loss per share (cents) (0.79) (0.77) Diluted loss per share is not shown as all potential ordinary shares on issue would decrease the loss per share and are thus not considered dilutive. The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the accompanying notes. 19

21 C O N S O L I D A T E D S T A T E M E N T O F F I N A N C I A L P O S I T I O N as at 31 December 2015 Note 31 Dec Jun 2015 CURRENT ASSETS Cash and cash equivalents 6,625,474 2,425,929 Trade and other receivables 34,296 53,097 Inventory 6 358, ,318 Other current assets 7 343, ,929 Total Current Assets 7,361,181 3,031,273 NON-CURRENT ASSETS Trade and other receivables - 14,034 Property, plant and equipment 8 3,059,741 3,429,336 Exploration and evaluation assets 9 11,985,266 10,817,809 Mine development 803, ,897 Total Non-Current Assets 15,848,172 15,020,076 TOTAL ASSETS 23,209,353 18,051,349 CURRENT LIABILITIES Trade and other payables 375, ,734 Income tax payable 32,772 32,772 Employee benefits 118,167 67,930 Loans and borrowings - 38,071 Total Current Liabilities 526, ,507 TOTAL LIABILITIES 526, ,507 NET ASSETS 22,683,200 17,283,842 EQUITY Contributed equity 10 27,904,124 18,211,624 Other reserves (555,442) 2,209,586 Accumulated losses (4,665,548) (3,137,434) Non-controlling interest TOTAL EQUITY 22,683,200 17,283,842 The Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes. 20

22 C O N S O L I D A T E D S T A T E M E N T O F C H A N G E S I N E Q U I T Y for the half-year ended 31 December 2015 Contributed Equity Other Reserves Accumulated Losses Total Noncontrolling interests Total Equity Balance as at 1 July ,406,664 24,112 (1,614,442) 6,816,334-6,816,334 Loss for the half year - - (1,157,825) (1,157,825) - (1,157,825) Other comprehensive income - 1,039,365-1,039,365-1,039,365 Total comprehensive loss for the half year - 1,039,365 (1,157,825) (118,460) - (118,460) Transactions with equity holders in their capacity as equity holders: Contribution of equity net of transaction costs 2,304, ,304,959-2,304,959 Non-controlling interest in subsidiary Balance as at 31 December ,711,623 1,063,477 (2,772,267) 9,002, ,002,899 Balance as at 1 July ,211,624 2,209,586 (3,137,434) 17,283, ,283,842 Loss for the half year - - (1,528,114) (1,528,114) - (1,528,114) Other comprehensive income - (2,765,028) - (2,765,028) - (2,765,028) Total comprehensive loss for the half year - (2,765,028) (1,528,114) (4,293,142) - (4,293,142) Transactions with equity holders in their capacity as equity holders: Contribution of equity net of transaction costs 9,692, ,692,500-9,692,500 Balance as at 31 December ,904,124 (555,442) (4,665,548) 22,683, ,683,200 The Consolidated Statement of Changes in Equity is to be read in conjunction with accompanying notes. 21

23 C O N S O L I D A T E D S T A T E M E N T O F C A S H F L O W S for the half-year ended 31 December Dec Dec 2014 Cash flows from operating activities Payments to suppliers and employees (1,111,691) (919,889) Interest received 9,916 19,181 Interest paid (1,385) (1,746) Income tax paid (435) (854) Net cash (outflow) from operating activities (1,103,595) (903,308) Cash flows from investing activities Payments for exploration and evaluation assets capitalised costs (3,836,690) (2,145,399) Payments for purchase of property, plant and equipment (345,848) (1,224,381) Payments for Mine Development (219,716) - Net cash (outflow) from investing activities (4,402,254) (3,369,780) Cash flows from financing activities Proceeds from the issue of share capital 10,000,000 2,500,000 Payments of share issue costs (307,500) (195,041) Proceeds from the issue of share capital to non-controlling interests - 66 Repayment of borrowings (38,071) (24,150) Net cash inflow from financing activities 9,654,429 2,280,875 Net increase/(decrease) in cash and cash equivalents 4,148,580 (1,992,213) Cash and cash equivalents at the beginning of the half year 2,425,929 2,413,086 Effects of exchange rate changes on cash and cash equivalents 50, ,601 Cash and cash equivalents at the end of the half year 6,625, ,474 The Consolidated Statement of Cash Flows is to be read in conjunction with the accompanying notes. 22

24 N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S for the half-year ended 31 December REPORTING ENTITY Newfield is a public company limited by shares incorporated in Australia whose shares are traded on the Australian Securities Exchange. These consolidated financial statements comprise the Company and its subsidiaries (collectively the Group and individually Group companies ). They were authorised for issue by the Board of Directors on 9 March The annual financial report of the Group as at and for the financial period ended 30 June 2015 is available upon request from the Company s registered office or may be viewed on the Company s website, 2. BASIS OF PREPARATION This interim financial report for the half-year reporting period ended 31 December 2015 has been prepared in accordance with accounting standard AASB 134 Interim Financial Reporting and the Corporations Act Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. This interim financial 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 interim financial report be read in conjunction with the annual financial report for the financial year ended 30 June 2015 and considered together with any public announcements made by Newfield Resources Limited during the half-year ended 31 December 2015 in accordance with the continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the impact of the new or amended standards became applicable for the current reporting period. However, the group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. 3. ESTIMATES The preparation of the interim financial report requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the interim financial report, the significant judgments 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 financial report as at and for the year ended 30 June

25 N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S for the half-year ended 31 December FINANCIAL RISK MANAGEMENT The Group s financial risk management objectives and policies are consistent with that disclosed in the financial statements as at and for the financial year ended 30 June SEGMENT INFORMATION The Group operates predominantly in the mineral exploration industry in Australia and Sierra Leone. The Board has determined that the Group has three reportable segments, being mineral exploration Australia, mineral exploration Sierra Leone and corporate. Half-year ended 31 December 2015 Mineral Exploration Australia Mineral Exploration Sierra Leone Corporate Group Segment income ,653 27,653 Segment result (221,281) (696,585) (610,248) (1,528,114) As at 31 December 2015 Segment assets 1,922,136 14,835,269 6,451,948 23,209,353 Segment liabilities (15,374) (450,795) (59,984) (526,153) Half-year ended 31 December 2014 Segment income ,431 17,431 Segment result (135,913) (499,318) (522,594) (1,157,825) As at 31 December 2014 Segment assets 1,938,170 6,690, ,148 9,203,572 Segment liabilities (17,762) (99,537) (83,374) (200,673) 6. INVENTORY 31 Dec Jun 2015 Spare parts for processing plant 358, , , , OTHER CURRENT ASSETS Deposits paid for purchase of plant & equipment and other supplies - 164,897 Prepaid Insurance 77,478 69,716 Prepaid rent 55,435 25,855 Staff salary advance 29,144 3,755 Other advance payments to suppliers and contractors 181,017 76, , ,929 24

26 N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S for the half-year ended 31 December PROPERTY, PLANT & EQUIPMENT Furniture & fittings Motor vehicles Plant & equipment Capital spares & WIP At 30 June 2015 Cost 108, ,041 3,280,302 35,328 3,717,921 Accumulated depreciation (30,833) (55,436) (202,316) - (288,585) Net book amount 77, ,605 3,077,986 35,328 3,429,336 Half-year ended 31 December 2015 Opening net book amount 77, ,605 3,077,986 35,328 3,429,336 Exchange differences (11,086) (46,687) (602,253) (6,913) (666,939) Additions 4, , , ,455 Transfer from WIP 2,405-11,683 (14,088) - Depreciation charges (15,708) (36,181) (98,222) - (150,111) Closing net book amount 57, ,513 2,389, ,682 3,059,741 At 31 December 2015 Cost 98, ,284 2,650, ,682 3,442,427 Accumulated depreciation (40,963) (80,771) (260,952) - (382,686) Net book amount 57, ,513 2,389, ,682 3,059,741 Total 9. EXPLORATION AND EVALUATION ASSETS 31 Dec Jun 2015 Exploration, evaluation and development costs carried forward in respect of areas of interest 11,985,266 10,817,809 Movements for half-year ended 31 December Carrying amount at beginning of period 10,817,809 3,270,469 Foreign exchange difference on opening balance (1,562,709) 154,392 Exploration and evaluation expenditure Australia 129, ,489 Exploration and evaluation expenditure Sierra Leone 2,764,100 2,020,644 Transfer from prepayments - 50,681 Foreign exchange difference on valuation of Baoma tenement at balance date 58, ,182 Exploration Expenditure written-off (221,281) (8,047) Carrying amount at end of period 11,985,266 5,755,810 The value of the exploration, evaluation and development costs carried forward is dependent upon the continuance of the Group s rights to tenure of the area of interest, the results of future exploration, and the recoupment of costs through successful development and exploitation of the areas of interest or alternatively by their sale. 25

27 N O T E S T O T H E C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S for the half-year ended 31 December CONTRIBUTED EQUITY 31 Dec Jun ,583,335 fully paid ordinary shares (30 June 2015: 184,083,335 fully paid ordinary shares) 27,904,124 18,211,624 Issues of ordinary shares during the half-year The following movements in ordinary share capital occurred during the half-year: 2015 Number 2014 Number Issue of shares at 0.30 each for cash - 8,333,334-2,500,000 Issue of shares at 0.80 each for cash 12,500,000-10,000,000 - Share issue costs - - (307,500) (195,041) Net movements 12,500,000 8,333,334 9,692,500 2,304, COMMITMENTS AND CONTINGENCIES The changes to the commitments and contingencies disclosed in the most recent annual report are specified below. Other than the changes mentioned below, all other commitments and contingencies remain consistent with those disclosed in the 2015 annual report. The Group entered into a lease agreement for its office and accommodation house in Bo, Sierra Leone for a term of four years. Commitments in relation to this lease agreement at reporting date but not recognised as a liability are payable as follows: 31 Dec Jun 2015 Within one year 61,646 - After one year but not more than five years 123, , RELATED PARTY TRANSACTIONS The following transactions occurred with related parties during the reporting period: Transactions value for the half-year ended 31 Dec 2015 Balance outstanding as at 31 Dec 2015 Payment for secretarial services from Anthony Ho & Associates (director-related entity of Anthony Ho) 30,000 5,500 Unless otherwise stated, all transactions were made on normal commercial terms and conditions and at market rates. 13. EVENTS SUBSEQUENT TO REPORTING DATE There has not arisen in the interval between the end of the half-year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. 26

28 D I R E C T O R S D E C L A R A T I O N In the opinion of the Directors of Newfield Resources Limited: (a) the financial statements and notes set out on pages 19 to 26 are in accordance with the Corporations Act 2001, including: i. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and (b) ii. giving a true and fair view of the Group s financial position as at 31 December 2015 and of its performance for the half-year ended on that date, and there are reasonable grounds to believe that Newfield Resources Limited will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the Directors. Anthony Ho Executive Director Perth, Western Australia 10 March

29 Tel: Fax: Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY GLYN O'BRIEN TO THE DIRECTORS OF NEWFIELD RESOURCES LIMITED As lead auditor for the review of Newfield Resources Limited for the half-year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and 2. No contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Newfield Resources Limited and the entities it controlled during the period. Glyn O Brien Director BDO Audit (WA) Pty Ltd Perth, 10 March 2016 BDO Audit (WA) 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 (WA) 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 28

30 Tel: Fax: Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia INDEPENDENT AUDITOR S REVIEW REPORT To the members of Newfield Resources Limited Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of Newfield Resources Limited, which comprises the consolidated statement of financial position as at 31 December 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes comprising a statement of 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 2015 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 Newfield 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 Newfield 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 (WA) 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 (WA) 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 29

31 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 Newfield Resources Limited is not in accordance with the Corporations Act 2001 including: (a) giving a true and fair view of the consolidated entity s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 BDO Audit (WA) Pty Ltd Glyn O Brien Director Perth, 10 March