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1 Arturus Capital Limited and its Controlled Entities ABN Interim Financial Report For the half-year ended 31 December 2011

2 DIRECTORS REPORT P a g e 1 Your Directors present their report on the consolidated entity consisting of Arturus Capital Limited ( the Company ) and the entities it controlled ( the Group or AKW ) for the half-year ended 31 December Directors The following persons were directors of Arturus Capital Limited during the half-year and up to the date of this report. Mr Andrew Waller (Chairman) Mr Paul Blackman Mr Paul Benson (appointed on 3 August 2011 and resigned on 6 September 2011) Mr Richard Griffin (appointed on 7 September 2011) Mr Michael Sukamto (appointed 13 October 2011) Mr Jerko Zuvela (appointed on 2 February 2012, resigned 8 February 2012) Mr George Lazarou (appointed on 2 February 2012, resigned 8 February 2012) Mr Peter Cockroft (Chairman, appointed on 22 February 2012, resigned 5 April 2012) Mr Rob Marshall (appointed on 22 February 2012, resigned 5 April 2012) REVIEW OF OPERATIONS During the half-year the Directors continued to resolve the Group s debt and legal issues, and restore its financial position, whilst undergoing a number of negotiations for specific investments. On 24 August 2011, the Group announced that it had acquired an option to purchase a Mineral Sands project in the Eucla Basin in Western Australia. The Company subsequently allowed the option to lapse. On 13 October 2011, the Group advised that it had entered into an agreement with Key Group Holdings Limited (KGHL) to acquire a 20% shareholding in a subsidiary that had recently purchased the Darlot Gold Project, located in Western Australia. SUBSEQUENT EVENTS On 2 February 2012, the Company announced it had reached an agreement for the placement of $2.7million less raising costs, subject to shareholder approval. The Company announced the appointment of Jerko Zuvela and George Lazarou to the board, who then resigned on 8 February On 22 February 2012, the Company announced the appointment of Peter Cockroft and Rob Marshall to the board. They then resigned on 5 April On 29 February 2012, the Company finalised conversion of $3,195,000 of the face value of its redeemable and convertible notes into ordinary shares in the Company as approved by shareholders at the Company s AGM. This has significantly improved the balance sheet of the Company and also reduced its on-going interest costs. On 5 April 2012, the Company announced that it entered into a funding agreement of AUD$5million for the purposes of working capital and to complete due diligence and initial investment instalments. On the same date, the Company announced it had entered into an underwriting agreement for a rights issue up to AUD$4million. ROUNDING OF AMOUNTS The consolidated group had previously applied for relief available to it in ASIC Class Order 98/100 and accordingly certain amounts in the half-year financial report and the directors report have been rounded off to the nearest $1,000. That relief order no longer exists. Therefore the December 2010 comparative amounts have been restated to their full notation. AUDITOR INDEPENDENCE We have received the independence declaration from the auditor of Arturus Capital Limited, Bentleys Audit and Corporate (WA) Pty Ltd, a copy of which is attached to the Directors Report on page 3 of the financial report. This report is made in accordance with a resolution of the Directors. Andrew Waller CHAIRMAN 10 April 2012

3 To the Board of Directors This declaration is made in connection with our review of the financial report of Arturus Capital Limited and Controlled Entities for the half-year ended 31 December 2011 and in accordance with the provisions of the Corporations Act We declare that, to the best of our knowledge and belief, there have been: no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; no contraventions of the Code of Professional Conduct of the Institute of Chartered Accountants in Australia in relation to the review. Yours faithfully BENTLEYS Chartered Accountants RICHARD JOUGHIN CA Director DATED at PERTH this 10 th day of April 2012

4 P a g e 3 Consolidated Statement of Comprehensive Income For the half-year ended 31 December Dec Dec 2010 Revenue 3,247 1,456,662 Interest Income 9,430 3,916 General & Administration Expenses (1,779,609) (1,560,884) Costs recovered 318,352 - Provision for diminuition of listed shares - (1,408,989) Loss on Legal Settlements (1,103,517) - Asset Impairment Charge (149,864) (3,012,000) Interest Expense (267,862) (393,890) Finance Costs (Expense) / Recovered 65,249 (832,932) Loss before income tax (2,904,574) (5,748,117) Income tax expense - - Net (loss)/profit for the period (2,904,574) (5,748,117) Other comprehensive income Foreign Currency translation 296, ,000 Other comprehensive income for the period, net of tax - - Total comprehensive income for the period (2,607,748) (5,401,117) Loss /(profit) for the year is attributed to - non controlling interests owners of the parent (2,904,574) (5,748,117) Loss for the year/period (2,904,574) (5,748,117) Total comprehensive income for the year is attributed to - non controlling interests owners of the parent (2,607,748) (5,401,117) Loss for the year/period (2,607,748) (5,401,117) Profit/(loss) per share Total Group - basic profit/(loss) per share for the year (0.014) (0.091) The above Statement of Comprehensive Income should be read with the accompanying notes.

5 P a g e 4 Consolidated Statement of Financial Position AS AT 31 December 2011 CURRENT ASSETS Note As at 31 Dec 2011 As at 30 June 2011 Cash and cash equivalents 36,408 22,536 Other receivables 9, ,971 Financial Assets 92, ,775 Other Assets 4-517,882 TOTAL CURRENT ASSETS 138, ,165 NON-CURRENT ASSETS Investment in associates - - Property, plant and equipment - - TOTAL NON-CURRENT ASSETS - - TOTAL ASSETS 138, ,165 CURRENT LIABILITIES Trade and other payables 5 2,195,847 3,307,501 Employee Leave Provisions 3,402 - Interest bearing loans and borrowings 6 5,690,095 4,977,546 TOTAL CURRENT LIABILITIES 7,889,344 8,285,047 TOTAL LIABILITIES 7,889,344 8,285,047 NET ASSETS / (DEFICENCY) (7,751,099) (7,390,882) EQUITY Issued capital 7 118,502, ,255,270 Unissued Shares reserve - - Share option reserve 1,537,000 1,537,000 Foreign currency translation reserve 3,637,420 3,340,595 Accumulated losses 8 (131,508,321) (128,603,747) Parent interest (7,831,099) (7,470,882) Non-controlling interest 80,000 80,000 TOTAL EQUITY (7,751,099) (7,390,882) The above Statement of Financial Position should be read with the accompanying notes.

6 P a g e 5 Statement of Cash Flows For the half-year ended 31 December 2011 Cash Flows from operating Activities 31 Dec Dec 2010 Receipt from customers - 5,768 Payments to suppliers and employees (522,928) (1,551,000) Interest Received 9,430 3,916 Interest Paid - (5,000) Net cash flows (used in) operating activities (513,498) (1,546,316) Cash Flows from Investing Activities Purchase of Interest in new venture (146,244) (49,681) Sale of Interest in Gas Fields - 500,000 Advances to Related Parties (111,662) (414,379) Advances to other entities - (193,496) Repayments from other entities 34,722 - Net cash flows used in investing activities (223,184) (157,556) Cash flows from financing activities Proceeds from issue of shares 429,160 1,649,808 Shares issue costs - (55,795) Cash received prior to share issue 321,394 - Gross proceeds from issue of Convertible Redeemable Notes - (61,438) Net cash flows from/(used in) financial activities 750,554 1,532,575 Net (decrease) in cash and cash equivalents 13,872 (171,297) Cash and cash equivalents at beginning of period 22, ,000 Cash and cash equivalents at end of period 36,408 26,703 The above Statement of Cash Flows should be read with the accompanying notes.

7 P a g e 6 Consolidated Statement of Changes in Equity For the half-year ended 31 December 2011 Issued Unissued Capital Shares reserve Share options reserve Foreign Currency Translation Reserve Accumulated Losses Owners of the Parent Non Controlling Interest Total At 1 July ,092, ,000 1,537,000 1,508,000 (112,418,229) 3,294,032 80,000 3,374,032 Profit/(Loss) for the period (5,748,175) (5,748,175) - (5,748,175) Other Comprehensive Income , , ,000 Total comprehensive - income for the year ,000 (5,748,175) (5,401,175) - (5,401,175) Transactions with owners in their capacity as owners Issue of Shares 2,224,808 (575,000) 1,649,808-1,649,808 Less: Cost of Issue (55,795) - (55,795) - (55,795) At 31 December ,261,274-1,537,000 1,855,000 (118,166,404) (513,130) 80,000 (433,130) At 1 July ,255,270-1,537,000 3,340,595 (128,603,747) (7,470,882) 80,000 (7,390,882) Profit/(Loss) for the period (2,904,574) (2,904,574) - (2,904,574) Other Comprehensive Income , , ,825 Total comprehensive income for the year ,825 (2,904,574) (2,607,749) - (2,607,749) Transactions with owners in their capacity as owners Unissued Shares Issue of Shares 2,352, ,352,620-2,352,620 Less: Cost of Issue (105,088) (105,088) - (105,088) At 31 December ,502,802-1,537,000 3,637,420 (131,508,321) (7,831,099) 80,000 (7,751,099)

8 P a g e 7 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The half-year consolidated financial statements are general purpose financial statements, prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the consolidated financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The financial statements are presented in United States dollars. For the 2010 financial statements, all values were rounded to the nearest thousand dollars ('000) under the option available to the Group under ASIC Class Order 98/0100. This Class Order no longer applies to the Group and accordingly the 2010 balances have been adjusted to reflect this. The 2011 stated balances have not been rounded. The half-year financial statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements for the year ended 30 June 2011, except for the adoption of Improvements to AASBs 2010 (2010 Improvements) as of 1 January The 2010 Improvements made several minor amendments to AASBs. The relevant amendments and their effects on the current period or prior periods are described below. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these halfyear financial statements. Amendment to AASB 101 Presentation of Financial Statements The amendment provides a choice of presenting the reconciliations for each component of other comprehensive income either in the statement of changes in equity or in the notes to the financial statements. The consolidated entity has elected to retain reconciliations within the Statement of Changes in Equity as previously disclosed. Amendments to AASB 134 Interim Financial Reporting The amendments clarified certain disclosures relating to events and transactions that are significant to an understanding of changes in the consolidated entity's circumstances since the last annual financial statements. The consolidated entity's halfyear financial statements as of 31 December 2011 reflect these amended disclosure requirements, where applicable. 2. GOING CONCERN BASIS OF PREPARATION OF THE FINANCIAL REPORT The financial report has been prepared on the basis of accounting principles applicable to a going concern, which assumes the commercial realisation of the future potential of the consolidated entity s assets and the discharge of its liabilities in the normal course of business. As disclosed in the financial report, the consolidated entity recorded an operating loss of $2,904,574 (2010:$5,748,117) and a cash outflow from operating activities of ($513,498) (2010:$1,546,316) for the half-year ended 31 December The Board considers that the Consolidated Entity is a going concern and recognises that additional funding is required to ensure that the Consolidated Entity can continue to fund the Group s operations for the 12 month period from the date of this financial report. The Directors believe after consideration of the above matters, there are reasonable grounds to believe that the consolidated entity will be able to pay its debts as and when they become due and payable and is a going concern because of the following factors: On 29 February 2012, the Company converted principal and interest in relation to its Convertible Notes of AUD$3,835,980 into shares in the Company, thereby reducing its outstanding liability in relation to its Convertible notes to AUD$879,596 at the 31 st of March 2012,

9 P a g e 8 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011 (Note 2 cont d) On 29 February 2012, the Company also issued shares in the company to extinguish AUD$665,000 of liabilities shown within the balance sheet of the entity at 31 December On 5 April 2012, the Company announced it had entered into a funding facility agreement, which, subject to due diligence and shareholder approval would provide AUD$5million in funding to extinguish debt and future investments. On 5 April 2012, the Company announced it had entered into an Underwriting and Sub-underwriting agreement for a rights issue of its shares, to raise up to AUD$4million subject to shareholder approval. Accordingly, the Directors believe that subject to prevailing equity market conditions, the Company will obtain sufficient funding to enable the consolidated entity to continue as going concerns and that it is appropriate to adopt that basis of accounting in the preparation of the financial report. Should the Company be unable to obtain sufficient funding as outlined above, there is material uncertainty which may cast significant doubt over the consolidated entity s ability to continue as a going concern. The Directors are satisfied that, adequate plans are in place and that the company will have positive cashflows through to 5 April On this basis the Financial Report has been prepared on the going concern basis. Should the Company be unable to continue as a going concern it may be required to realise its assets and discharge its liabilities other than in the normal course of business and an amount different to those stated in the financial statements. The financial statements do not include any adjustments related to the recoverability and classification of asset carrying amounts or the amount of liabilities that might resolve should the company be unable to continue as a going concern and meet its debts as and when they fall due. 3. SEGMENT REPORTING Operating segments The Group operates as an investment Group, with the Board of Directors reviewing operating results for the group s activities. The Board reviews financial information on the same basis as presented in the financial statements, and has therefore determined and reported the operating segment on this basis. Geographical segments During 2011, the Group had divested its USA operations and accordingly the company has no operations in the USA. It only retains US investments in its subsidiaries. 4. Other Assets Current 31 December 2011 Consolidated 30 June Other Assets Short term loans to listed entities - 517,882 TOTAL - 517,

10 P a g e 9 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER Current Liabilities Trade and other payables 31 December 2011 Consolidated 30 June 2011 Trade Payables (a) 749,279 1,518,192 Accrued other expenses (b) 25,508 70,884 Accrued legal settlement costs (c) 402,820 1,218,425 Creditor settlement outstanding (d) 1,018, ,000 TOTAL 2,195,847 3,307,501 (a) Trade payables represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. These amounts are unsecured and usually are paid between 180 days of recognition unless extended payment terms have been negotiated. As at 30 June, all creditors were within 180 day payment terms. (b) Accrued other expenses represent goods and services received for which invoices have not yet been received. Such amounts are moved to the payables account as invoices are received and paid according to terms. (c) Accrued legal settlement costs represents legal fees payable to Nair and estimated legal defence costs for claims against Arturus Energy LLC and Arturus Capital Limited as disclosed in Note 10. (d) Represent balance outstanding to settlements arising and as disclosed in Note Current Liabilities Interest-Bearing Loans and Borrowings Redeemable Convertible Notes (a) 4,015,901 4,117,218 Accrued interest Redeemable Convertible Notes (a) 782, ,841 Other liabilities 410, ,885 Short-term loans 480, ,602 TOTAL 5,690,095 4,977,546 (a) Redeemable Convertible Loans Subsequent to the end of the period, the Company has converted 12,930,000 notes to shares, with 2,724,000 remaining payable at 1 March ISSUED CAPITAL # At July ,753, ,092,261 27/07/2010 Issue of 5,575,590 Shares 5,575, ,054 13/08/2010 Issue of 2,000,000 Shares 2,00, ,516 22/10/2010 Issue of 16,150,000 Shares 16,150,000 1,845,263 14/03/2011 Issue of 125,000 Shares 125,000 14,282 27/05/2011 Issue of 10,000,000 Shares 10,000, ,516 30/05/2011 Issue of 6,903,313 Shares 6,909, ,657 01/06/2011 Issue of 10,000,000 Shares 10,000, ,516 01/06/2011 Issue of 31,000,000 Shares 31,000, ,398 14/06/2011 Issue of 11,000,000 Shares 11,000, ,799 Cost of Issues (82,992) At July ,507, ,255,270 28/10/2011 issue of 5,500,000 shares for cash 5,500, ,758 28/10/2011 issue of 12,000,000 shares as payment for settlement 12,000, ,380 05/12/2011 issue of 6,750,000 shares for cash 6,750, ,402 15/12/2011 issue of 26,000,000 shares as payment for settlement 26,000,000 1,289,080 Cost of issues (105,088) Closing balance as at 31 December ,757, ,502,802

11 P a g e 10 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER CORRECTION AND COMPARATIVE OF 2011 ANNUAL REPORT An error was detected during the current financial year. The cumulative effect of the error was the interest bearing loan and borrowings in the Consolidated Statement of Financial Position and the asset impairment charge in the Consolidated Statement of Comprehensive Income have been understated by $1,017,120. This resulted in the accumulated losses being understated by this amount as well. The error has been corrected and the financial statements for the 30 June 2011 prior period reflect the error correction. 9. SUBSEQUENT EVENTS On 2 February 2012, the Company announced it had reached an agreement for the placement of $2.7million less raising costs, subject to shareholder approval. The Company announced the appointment of Jerko Zuvela and George Lazarou to the board, who then resigned on the 8 th of February On 22 February 2012, the Company announced the appointment of Peter Cockroft and Rob Marshall to the board. They resigned from the board on the 5 th of April On 29 February 2012, the Company finalised conversion of $3,195,000 of the face value of its redeemable and convertible notes into ordinary shares in the Company as approved by shareholders at the Company s AGM. This has significantly improved the balance sheet of the Company and also reduced its on-going interest costs. On 5 April 2012, the Company announced that it entered into a funding agreement of AUD$5million for the purposes of working capital and to complete due diligence and initial investment instalments. On the same date, the Company announced it had entered into an underwriting agreement for a rights issue up to AUD$4million. 10. CONTINGENT LIABILITIES On 5 August 2011, the Company announced that it had agreed on a compromise agreement with former director, Dr Nair for an amount of $900,000. The Company made a payment of $200,000 prior to 31 December 2011, and has subsequently made an additional payment of $200,000, with an agreed settlement programme for the remaining debt, including a component for interest. As advised in the Company s Annual Report, the Company was in receipt of a claim from Caerleon Advisory Pty Ltd for $499,693 for unpaid invoices. After lodging a counterclaim against Caerleon and associates, and having it heard in the Supreme Court of New South Wales, the Company is now the plaintiff rather than the defendant. There has been a stay in proceedings however subject to providing security for costs, the Directors believe the action has good prospects of success. Also as advised in the Company s Annual Report, the Group s subsidiary, Arturus Energy LLC had received claims against it from two parties. At the date of this report, the total of the claims amounted to $1,000,000. The Group denies the claims, however, a provision of $250,000 for legal defense has been made. During the period, the Company also received claims from Roycevale Pty Ltd (related party of a former director) of $127,760 and James Story (a former director) of $17,560. The amounts to both parties is disputed and the Company intends to defend these claims. A provision for legal costs associated with the defense of these claims has been incorporated into the Company s accounts. 11. RELATED PARTY TRANSACTIONS During the period, Paul Benson was paid $20,632 as a director of the Company; Andrew G Waller Consulting performed consulting services and supplied Andrew Waller as a director of $51,580, which remains unsettled at the date of this report bringing the outstanding balance owed at 31 December 2011 of $77,186; Marden Group Pty Ltd an associated entity of Richard Griffin provided consulting services and supplied Richard Griffin as a director of $36,673 of which $16,835 was unsettled at31 December 2011; Tottle Partners an associated entity of Paul Blackman provided professional legal services to the Company of $55,234, of which $29,483 remains unpaid at 31 December Richard Griffin is a non-executive director of both ElDore Mining Corporation Ltd (ElDore) and Leopard Resources NL (Leopard). During the period ElDore was charged $451 for services provided to the Company, advanced the Company $232,110 and an outstanding balance of $429,036 is payable at 31 December Leopard charged $30,713, advanced the Company $33,527 and an outstanding balance of $51,292 is payable at 31 December 2011.

12 P a g e 11 Directors Declaration The Directors of the company declare that: 1) The financial statements and notes, as set out on pages 3-11 a. Comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001; and b. Give a true and fair view of the consolidated group s financial position as at 31 December 2011 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. The declaration is made in accordance with resolution of the board. Andrew Waller Chairman Perth 10 April 2012

13 We have reviewed the accompanying half-year financial report of Arturus Capital Limited ( the Company ) and Controlled Entities ( the Group ) which comprises the consolidated statement of financial position as at 31 December 2011, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors declaration. 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 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. 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 financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group s financial position as at 31 December 2011 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 Arturus Capital 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. In conducting our review, we have complied with the independence requirements of the Corporations Act As disclosed in Note 1 to the financial statements, the accounts have been prepared on the going concern basis, which contemplates continuity of normal activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The Group incurred a loss from ordinary activities of 2,904,574 for the half-year ended 31 December 2011 (31 December 2010: 5,748,117 loss). The net deficiency position of the Group at 31 December 2011 was 7,751,099 (30 June 2011: 7,390,822 net asset deficiency) and cash outflow from operating activities of ($513,498) (31 December 2010:$1,546,316) for the half-year ended 31 December 2011.

14 Included in the Group s financial liabilities are convertible notes with a maturity date of less than 18 months from balance date, amounting to AU$3,396,000. Of these convertible notes, subsequent to the end of the period, the Group has converted 12,930,000 notes to shares, with 2,724,000 remaining payable at 1 March These remaining notes are yet to be settled or otherwise converted, and the ultimate outcome in respect to these notes remains uncertain. The ability of the Group to continue to pay its debts as and when they fall due is dependent upon successfully raising sufficient working capital via the non-renounceable entitlement rights issue, the successful execution of the funding facility agreement, the conversion of remaining notes to equity, and the continued support of its creditors and directors. Although the Directors believe that they will be successful in these measures, if they are not, the Group may be unable to continue as a going concern and therefore may be unable to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. As a result of these matters, a material uncertainty exists which may cast significant doubt on the Group s ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business, as described above. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. We draw reference to Note 7 of the financial statements, which reports trade and other payable of 749,279 (30 June 2011: 1,589,076). For the purposes of our review conclusion, we were unable to obtain sufficient, appropriate evidence with respect to the completeness of the Group s payables, including payables for its subsidiary incorporated in the United States of America ( the USA ). We were unable to determine through alternative procedures as to whether the balances recorded as trade payable and other liabilities are complete, or as to whether there are material unrecorded liabilities domestically or in the USA. Based on our review, which is not an audit, with the exception of the matters described in the preceding paragraphs, we have not become aware of any matter that makes us believe that the half-year financial report of Arturus Capital Limited and Controlled Entities is not in accordance with the Corporations Act 2001 including: a. Giving a true and fair view of the Group s financial position as at 31 December 2011 and of its performance for the halfyear ended on that date; and b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations We draw attention to Note 9 to the financial statements which describe lawsuits filed against the Company. With respect to the lawsuit filed by Dr Nair, the Company reached a compromise settlement agreement with Dr Nair. However, as at the date of this report, the Company was outside the terms of this agreement. In addition, Note 9 describes additional lawsuits filed against the Company. Whilst liabilities have been raised in regard to the legal costs expected to defend the lawsuit, the ultimate outcome of the lawsuit remains uncertain.

15 Without qualification to the opinion expressed above, we draw attention to Note 6, and the redeemable convertible note. As at the date of this report, the Group is in default of note conditions requiring interest to be paid 6 monthly. This has resulted in the classification of these loans to current liabilities. BENTLEYS Chartered Accountants RICHARD JOUGHIN CA Director DATED at PERTH this 10 th day of April 2012