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1 (ACN ) Half Year Report 31 December 2012

2 COMPANY DIRECTORY Executive Chairman (Simon) Xing Yan Executive Director George Lazarou Non Executive Directors Eric Kong Feng Ding Company Secretary Cecilia Chiu Principal and Registered Office Suite 1, 23 Richardson Street South Perth WA 6151 Telephone: (08) Facsimile: (08) Auditors Bentleys Level 1, 12 Kings Park Road WEST PERTH WA 6005 Share Registrar Advanced Share Registry Services 150 Stirling Highway NEDLANDS WA 6009 Telephone: (08) Facsimile: (08) Stock Exchange Listing Australian Securities Exchange (Home Exchange: Perth, Western Australia) Codes: UUL

3 CONTENTS PAGE Directors Report 2 Auditor s Independence Declaration 4 Statement of Profit and Loss and Other Comprehensive Income 5 Statement of Financial Position 6 Statement of Changes in Equity 7 Statement of Cash Flow 8 Notes to the Financial Statements 9 Director s Declaration 15 Independent Auditor s Review Report 16-1-

4 DIRECTORS REPORT Your directors submit the financial report of the Company for the half year ended 31 December In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: Directors The names of directors who held office during or since the end of the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated. (Simon) Xing Yan George Lazarou Eric Kong Feng Ding Executive Chairman Executive Director Non Executive Director Non Executive Director Review of Operations EXPLORATION ACTIVITIES Young River Project - EL 74/475 and EL 74/476 The Company was targeting sedimentary, redox related uranium deposits in the Eocene Palaeo channels of the Bremer Basin similar to the Mulga Rocks and Ponton Project style deposits of the Gunbarrel (Narnoo) Basin West Australia and/or Frome Embayment style deposits in South Australia. The Bremer Basin contains a sequence of the Eocene Plantagenet Group sediments. The basal Middle Eocene Werrilup Formation consists of palaeo valley fluvial and paludal lignitic sands and silts. It hosts various lignite deposits in the area. Basement is mostly Archean and Proterozoic granitoids which provide excellent source rocks for uranium. A data base was compiled for the project area to assist in planning the Aircore drilling program. The GSWA map of the Bremer Basin boundaries was downloaded from the DMP web site which showed a Northwest striking extension depicting a palaeo intake drainage channel. It was planned to drill scout drill traverses along existing shire roads that cross the expected Eocene palaeo-channel. This was to involve 21 holes spaced approximately 1.2 kilometres apart drilled to bedrock for approximately 1,000 metres of drilling, to locate the channel and suitable lignitic or carbonaceous host facies including redox interfaces. Eight holes were completed for a total of 189 metres, with all holes reaching granitic basement with no Bremer Basin Eocene or Miocene lithologies located and certainly no target type lignitic Mid Eocene palaeo-channels. Overlying the basement granites were mostly recent aeolian sands and sandy clays with some local silcretes which represent old water tables. All holes finished in weathered siliceous granites located between 10 and 27 metres in depth. No samples were taken, due to the lack of potential uranium host rocks. In the absence of the potential target host rocks the planned northwest - southeast further drilling was not considered necessary, as there appeared to be a total absence of potential uranium host rocks. Hyperion Project - EL 74/516 The Company spent the period reviewing all available data on the project. Mount Danvers E08/2341 The Company spent the period reviewing all available data on the project. -2-

5 Northern Territory Projects Given the current economic climate and lack of exploration success to date, the Company decided to relinquish all of their Northern Territory tenements during the period AUDITOR S INDEPENDENCE DECLARATION Section 307C of the Corporations Act 2001 requires our auditors, Bentleys, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 4 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 Mr George Lazarou Executive Director Dated this 7 th day of February 2013 Competent Person s Statement The review of exploration activities contained in this report is based on information compiled by Peter Francis Robinson, a Principal of independent consultants Peter F Robinson and Associates Pty Ltd, and a Fellow of the Australasian Institute of Mining and Metallurgy, (AusIMM) and is a Chartered Practicing Geologist (CPG) for the Mining Industry Consultants Association. He has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Peter Francis Robinson has consented to the inclusion in this report of the matters based on his information in the form and context in which it appears. -3-

6 To The Board of Directors As lead audit director for the review of the financial statements of United Uranium Limited for the half-year ended 31 December 2012, I declare that to the best of my knowledge and belief, there have been no contraventions of: the auditor independence requirements of the Corporations Act 2001 in relation to the review; and any applicable code of professional conduct in relation to the review. Yours faithfully BENTLEYS Chartered Accountants MARK DELAURENTIS CA Director DATED at PERTH this 7 th day of February 2013

7 STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2012 Notes 31 December December 2011 Revenue Interest Revenue 2 100, ,508 Employee benefit expenses (159,919) (159,509) Occupancy expenses (21,992) (21,252) Depreciation expense (2,690) (1,295) Consultancy expenses (27,684) (49,079) Legal and compliance (27,891) (23,278) Exploration expenses incurred (6,000) (4,968) Exploration written down (1,038,771) - Increase/(Decrease) in fair value of financial asset (4,842) (11,242) Administration expenses (14,919) (11,408) Profit/(loss) before income tax expense (1,204,569) (163,523) Income tax expense - - Net profit/(loss) for the period (1,204,569) (163,523) Other Comprehensive Income - - Total comprehensive income for the period (1,204,569) (163,523) Net profit/(loss) and total comprehensive income attributable to members (1,204,569) (163,523) Basic earning/(loss) per share (cents per share) (0.14) (0.38) Diluted earning/(loss) per share (cents per share) (0.14) (0.38) The accompanying notes form part of this financial report -5-

8 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012 CURRENT ASSETS Notes 31 December June Cash and cash equivalents 4,177,083 4,376,520 Trade and other receivables 25, , TOTAL CURRENT ASSETS 4,202,824 4,489,089 NON CURRENT ASSETS Exploration and Evaluation assets 43, ,697 Financial assets 3 15,910 20,753 Plant and equipment 17,968 7,415 TOTAL NON CURRENT ASSETS 77,707 1,019,865 TOTAL ASSETS 4,280,531 5,508,954 CURRENT LIABILITIES Trade and other payables 33,039 52,963 Provision 40,060 43,990 TOTAL CURRENT LIABILITIES 73,099 96,953 TOTAL LIABILITIES 73,099 96,953 NET ASSETS 4,207,432 5,412,001 EQUITY Issued Capital 6,614,312 6,614,312 Reserves 482, ,267 Accumulated Losses (2,889,147) (1,684,578) TOTAL EQUITY 4,207,432 5,412,001 The accompanying notes form part of this financial report -6-

9 STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2012 Issued Capital Option Reserves (Accumulated Losses) Total Balance at 1 July ,614, ,267 (1,452,041) 5,644,538 Loss for the year - - (163,523) (163,523) Other comprehensive income Total comprehensive income for the period - - (163,523) (163,523) Other transactions with owners, directly recorded in equity Balance at 31 December ,614, ,267 (1,615,564) 5,481,015 Balance at 1 July ,614, ,267 (1,684,578) 5,412,001 Loss for the year - - (1,204,569) (1,204,569) Other comprehensive income Total comprehensive income for the period - - (1,204,569) (1,204,569) Other transactions with owners, directly recorded in equity Balance at 31 December ,614, ,267 (2,889,147) 4,207,432 The accompanying notes form part of this financial report -7-

10 STATEMENT OF CASH FLOW FOR THE HALF YEAR ENDED 31 DECEMBER 2012 Cash flows from operating activities Note 31 December December 2011 Payments to suppliers and employees (276,404) (246,474) Payments for exploration expenditure (86,062) (107,704) Interest received 103, ,078 Farm-in & Joint Venture Agreement termination payment 72,727 - Net cash provided by operating activities (186,194) (194,100) Cash flows from investing activities Payment of plant and equipment (13,243) (3,092) Net cash provided by investing activities (13,243) (3,092) Cash flows from financing activities Proceeds from issue of shares and options - - Payment for share issue costs - - Net cash provided by financing activities - - Net increase in cash and cash equivalents held (199,437) (197,192) Cash and cash equivalents at beginning of period 4,376,520 4,716,891 Cash and cash equivalents at end of reporting period 4,177,083 4,519,699 The accompanying notes form part of this financial report -8-

11 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance The half-year financial report are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board ( AASB ). Compliance with AASB 134 ensures compliance with IAS 34 Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with the International Financial Reporting Standards. The half-year 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 Company as in the full financial report. It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2012 and any public announcements made by during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act Basis of Preparation The half-year report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. The same accounting policies and methods of computation have been followed in this half-year report as were applied in the most recent annual financial statements. For the purpose of preparing the half-year report, the half-year has been treated as a discrete reporting period. Significant Accounting Judgment and Key Estimates In the half-year ended 31 December 2012, the Company has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July The Company has also reviewed all new Standards and Interpretations that have been issued but are not yet effective for the half-year ended 31 December As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to the Company accounting policies. NOTE 2: PROFIT/(LOSS) BEFORE INCOME TAX EXPENSE The following revenue and expense items are relevant in explaining the financial performance for the half-year: 31 December December 2011 Interest revenue 100, , , ,508-9-

12 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012 NOTE 3: FINANCIAL ASSETS Non Current 31 December June 2012 Financial assets at fair value through profit or loss 15,910 20,753 Total Non Current assets 15,910 20,753 Financial assets at fair value through profit or loss Held-for-trading Australian listed shares 15,910 20,753 Available-for-sale financial assets comprise: Unlisted investments, at fair value Shares in other corporations 50,000 50,000 Provision for impairment (50,000) (50,000) - - NOTE 4: OPERATING SEGMENTS Segment Information Identification of reportable segments The Company has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors in assessing performance and determining the allocation of resources. The Company is managed primarily on the basis of its uranium exploration and corporate activities. Operating segments are therefore determined on the same basis. Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar economic characteristics. Types of reportable segments (i) (ii) Uranium exploration Segment assets, including acquisition cost of exploration licences and all expenses related to the tenements in Australia are reported on in this segment. Corporate Corporate, including treasury, corporate and regulatory expenses arising from operating an ASX listed entity. Segment assets, including cash and cash equivalents, and investments in financial assets are reported in this segment. Basis of accounting for purposes of reporting by operating segments Accounting policies adopted Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with respect to operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Company. -10-

13 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012 NOTE 4: OPERATING SEGMENTS (Continued) Segment assets Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location. Unless indicated otherwise in the segment assets note, deferred tax assets and intangible assets have not been allocated to operating segments. Segment liabilities Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Company as a whole and are not allocated. Segment liabilities include trade and other payables. Unallocated items The following items of revenue, expense, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment: net gains on disposal of available-for-sale investments; impairment of assets and other non-recurring items of revenue or expense; income tax expense; deferred tax assets and liabilities; intangible assets; and discontinuing operations. Comparative information Comparative information has been stated to conform to the requirements of the Standard. (i) Segment performance Six months ended Revenue Corporate Uranium Exploration Total Interest revenue 100, ,139 Total segment revenue 100, Reconciliation of segment revenue to total revenue Inter-segment elimination Total revenue 100, ,139 Segment net profit/(loss) before tax 100,139 (1,038,771) (938,632) Reconciliation of segment result to company net (loss) before tax Amounts not included in segment result but reviewed by the Board: Depreciation (2,690) - (2,690) Impairment provision (4,842) - (4,842) Unallocated items: Finance costs - - (1,554) Other - (256,851) Net loss before tax from continuing operations 92,607 (1,038,771) (1,204,569) -11-

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012 NOTE 4: OPERATING SEGMENTS (Continued) Six months ended Revenue Corporate Uranium Exploration Total Interest revenue 118, ,508 Total segment revenue 118, ,508 Reconciliation of segment revenue to total revenue Inter-segment elimination Total revenue 118, ,508 Segment net profit/(loss) before tax 118, ,508 Reconciliation of segment result to company net (loss) before tax Amounts not included in segment result but reviewed by the Board: Depreciation (1,295) - (1,295) Impairment provision (11,242) - (11,242) Unallocated items: Finance costs - - (843) Other - (4,968) (268,651) Net loss before tax from continuing operations 105,971 (4,968) (163,523) (ii) Segment assets As at Segment assets 4,192,993 43,829 4,236,822 Segment asset increases for the period: Capital expenditure 13,243 (979,055) (965,812) Acquisitions ,243 (979,055) (965,812) Reconciliation of segment assets to total assets Inter-segment eliminations Unallocated assets: Other assets 43,709-43,709 Total assets from continuing operations 4,280,

15 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2012 NOTE 4: OPERATING SEGMENTS (Continued) As at Corporate Uranium Exploration Total Segment assets 4,397, ,697 5,388,970 Segment asset increases for the period: Capital expenditure - 109, ,733 Acquisitions Reconciliation of segment assets to total assets - 109, ,733 Inter-segment eliminations Unallocated assets: Other assets 119, ,985 Total assets from continuing operations 5,508,955 (iii) Segment liabilities As at Segment liabilities 24, ,093 Reconciliation of segment liabilities to liabilities Inter-segment eliminations Unallocated liabilities: Other liabilities 48,006-48,006 Total liabilities from continuing operations 73,099 As at Segment liabilities 34,619-34,619 Reconciliation of segment liabilities to liabilities Inter-segment eliminations Unallocated liabilities: Other liabilities 62,334-62,334 Total liabilities from continuing operations 96,953 (iv) Revenue by geographical region There is no revenue attributable to external customers for the half year periods ended 31 December 2011 and (v) Assets by geographical region All reportable segment assets are located in one location, Australia. NOTE 5: CONTINGENT LIABILITIES There has been no change in contingent liabilities since the last annual reporting date. -13-

16 NOTE 6: EVENTS SUBSEQUENT TO REPORTING DATE Other than as stated above, there are no significant events subsequent to reporting date which may affect the financial position for the Company. -14-

17 DIRECTORS DECLARATION The directors of the company declare that: 1. The financial statements and notes thereto, as set out on 5 to 14: a. comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations; and b. give a true and fair view of the company s financial position as at 31 December 2012 and of its performance for the half-year then ended. 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 signed in accordance with a resolution of the Board of Directors made pursuant to s303(5) of the Corporations Act George Lazarou Executive Director Dated this 7 th day of February

18 We have reviewed the accompanying half-year financial report of United Uranium Limited ( the Company ) which comprises the statement of financial position as at 31 December 2012, the statement of profit and loss and other comprehensive income, statement of changes in equity and 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 Company s financial position as at 31 December 2012 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 United Uranium 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.

19 In conducting our review, we have complied with the independence requirements of the Corporations Act 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 is not in accordance with the Corporations Act 2001 including: a. Giving a true and fair view of the Company s financial position as at 31 December 2012 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 BENTLEYS Chartered Accountants MARK DELAURENTIS CA Director DATED at PERTH this 7 th day of February 2013