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1 INTRA ENERGY CORPORATION LIMITED ABN HALF YEAR FINANCIAL REPORT 31 DECEMBER 2012

2 Contents Directors Report 3 Financial Statements 7 Condensed Consolidated Statement of Comprehensive Income 7 Condensed Consolidated Statement of Financial Position 8 Condensed Consolidated Statement of Changes in Equity 9 Condensed Consolidated Statement of Cash Flows 10 Notes to the Financial Statements 11 Directors Declaration 17 Independent Review Report 18 Auditor s Declaration of Independence 20 Half Year Review December

3 Directors Report Your Directors submit their report for the half year ended 31st December Directors The names of the Company s Directors in office during the half year and until the date of the report are as follows: Mr. Graeme Robertson (Chairman) Mr. David Mason Mr. Jonathan Warrand Mr. William Paterson Mr. Gideon Nasari (Appointed 29 August 2012) Mr. Clive Hartz (Deputy Chairman) (Resigned 21 August 2012) Dr. Francis Lung (Resigned 25 September 2012) Company Secretary The names of the Company Secretary in office and at any time during the period are as follows: Ms. Rozanna Lee Principal activities The principal activity of the Consolidated Entity during the period was coal exploration, production and the provision of drilling services in Tanzania. Operating results The consolidated loss of the Consolidated Entity for the half year ended 31st December 2012 was $3,357,749 ($4,011, st December 2011). The cash in bank at the end of the half year was $4,165,308 and the net assets and total equity was $30,428,515. Review of operations The Consolidated Entity referred to in the financial statements refers to the Intra Energy Corporation Limited combined Group comprising Intra Energy Corporation Limited (referred to either as Intra Energy or IEC ), Intra Energy Corporation (Tanzania) Limited ( IETL ), AAA Drilling Limited ( AAA ), Tancoal Energy Limited ( Tancoal ), Tanzacoal East Africa Mining Limited ( Tanzacoal ), Intra Energy Singapore Pte Ltd, Intra Energy Vietnam Pte Ltd, Intra Energy Laos Pte Ltd, Malcoal Mining Limited, Intra Energy Trading Limited, East Africa Mining Limited, AAA Drilling Ltd (Mauritius) and Intra Energy Limited. Energy: During the period, IEC and its joint venture partner in Tanzania, the National Development Corporation ( NDC ), continued discussions following the submission of a pre-feasibility study to the Tanzanian generating company, TANESCO, for the Ngaka mine mouth power station between 120MW (net) and 200MW (net) in Tanzania. Since the end of the period, TANESCO has requested the pre-feasibility study be increased to a 200MW power station to match the 220kV transmission connection to Songea. A pre-feasibility submission for a 120MW plant was also lodged with ESCOM, the state owned power producing company in Malawi, in October Tanzanian Projects: Tancoal Ngaka Coalfields Intra Energy s 100% owned Tanzanian subsidiary, Intra Energy Tanzania Limited ( IETL ) owns a 70% interest in a Tanzanian company Tancoal Energy Limited ( Tancoal ), a joint venture with the NDC, holding the remaining 30% interest. Tancoal commenced mining of thermal coal from the Tancoal Mbalawala mine in south west Tanzania in September Tancoal produced 63,056 tonnes of thermal coal and sold 57,607 tonnes during the half year to 31 December 2012 (compared to 80,710 tonnes of thermal coal produced and 5,260 tonnes sold during the half year to 31 December 2011). During the period, the Tancoal drilling program was completed and an independent geological and mining services company, JB Mining Services Pty Ltd, was engaged to review and revise the JORC resources of the company in strict compliance with the JORC code. A new JORC resource of 423Mt for the Ngaka Coalfields was announced to the ASX on 24 October 2012, a substantial increase over the previous resource of 251Mt. It is noteworthy that the average drilling depth was 110m providing an excellent open cut resource for future mining. Comprehensive mine planning is now being carried out to produce a Life of Mine plan. Half Year Review December

4 Directors Report (Cont d) Tanzacoal Songwe Coalfied In September 2011, Intra Energy completed the acquisition of coal leases in the Songwe Coalfield, located approximately 20 kilometres to the north of Lake Nyasa in south west Tanzania. Intra Energy acquired a 70% interest in the Songwe-Kabulo Mining License SML235 and three surrounding Prospecting Licenses. The leases are held by Tanzacoal. IETL (controlled by Intra Energy) has a 70% interest in Tanzacoal. The remaining 30% interest is held by Olympic Exploration Limited, a private Tanzanian company. Intra Energy has received a Resource Estimate Report prepared by JB Mining Services Pty Ltd, confirming a JORC coal resource of 100 million tonnes comprising 74.7 million tonnes Indicated and 25 million tonnes Inferred, at the Kabulo deposit situated within SML235 of the Songwe Coalfield. The current JORC study reports indicated resources of 74.7 million tonnes for seams A2, B and C from the surface to approximately 200 metres depth, or approximately 10:1 cubic metres per tonne overburden to coal ratio (measured vertically). Seam A2 is thickest at an average of 6.2 metres and contains 52.8 million tonnes of 4,900kcals/kg, 32% ash and 3.5% inherent moisture coal. During the half year to 31 December 2012, a ten hole core drilling program was completed at Tanzacoal and a 5,650t bulk sample was excavated for detailed analytical and combustion testing. Preliminary coal quality results indicate a higher quality coal (indicative 5,200kcals/kg and 27% ash) than the 100Mt JORC resource and show a potentially higher grade, low sulphur coal area. Some of this coal will be delivered to domestic industrial users in Tanzania to test suitability. Exploration Activities Subsequent to the end of the period, on 25 January 2013 IEC acquired coal licenses in Malawi. The concessions include the operating mine, Malcoal Nkhachira Coal Mine within Mining Licence ML0143/2005 and three Exclusive Prospecting Licences (EPL), located in the north of Malawi, west of the town of Karonga. Financial: On 23 October 2012, two subsidiaries, Tancoal and AAA Drilling secured loan facilities, $2.5m and $1.4m respectively, with the National Bank of Commerce in Tanzania ( NBC ) (ultimately controlled by Barclays Bank Plc). Each facility is secured against plant and equipment, and will release funds for mine expansion at the Tancoal mine, development of the Tanzacoal mine and other opportunities (refer ASX announcement dated 23 October 2012). US$1.45M had been drawn down at 31 December Competent person statement Tancoal Mbalawala The information in this report relates to Exploration Results, Mineral Resources or Ore Reserves based on the Tancoal Mbalawala Mine Bankable Feasibility Study with related infrastructure feasibility options as at 31 August 2010, the Tancoal Mbalawala Coal Mine Bankable Feasibility Study as at 13 August 2010, the Resource Model Assessment and Review, Ngaka Project Area as at 20 July 2010 and the Memorandum Summary provided by JB Mining Services Pty Ltd dated 18 October 2012, and have been reviewed by Mr David Mason MBA, BSc (Hons). Mr. Mason is a member of the Australian Institute of Mining and Metallurgy and has sufficient experience to qualify as a Competent Person as defined in the 2004 edition of the Australian Code for Reporting of Mineral Resources and Ore reserves. Mr Mason consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The resource statement in relation to the Tancoal Mbalawala resource upgrade was compiled by Phillip Sides BApp Sc, MSc, MAIG. Mr. Sides, a member of the Australian Institute of Geoscientists, is employed by JB Mining Services Pty Ltd (JBMS), with over 25 years experience in the exploration and evaluation of coal resources. Mr. Sides qualifies as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2004 Edition. This report has been prepared using the guidelines for the estimation of black coal resources and reserves as contained in The JORC Code. Half Year Review December

5 Directors Report (Cont d) Figure 1 IEC Project Map Half Year Review December

6 Directors Report (Cont d) Songwe The resource statement in relation to Songwe-Kabulo was compiled by Phillip Sides BApp Sc, MSc, MAIG. Mr. Sides, a member of the Australian Institute of Geoscientists, is employed by JB Mining Services Pty Ltd (JBMS), with over 25 years experience in the exploration and evaluation of coal resources. Mr. Sides qualifies as a Competent Person as defined by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) 2004 Edition. This report has been prepared using the guidelines for the estimation of black coal resources and reserves as contained in The JORC Code. Neither the author nor JB Mining Services Pty Ltd has any material interest or entitlement, direct or indirect, in the securities of Intra Energy Corporation Limited. JBMS has been providing geological services to Intra Energy Corporation on the Songwe-Kabulo Project since early Initial evaluation, computer modelling of seam structure and coal quality and initial coal tonnage estimates were undertaken by Greg Jones, Senior Consultant/Director of JB Mining Services prior to handing over responsibility of the resource evaluation to Phillip Sides. All fees for the preparation of this report are charged on a time and materials basis. Likely developments Information on likely developments in the operations of the Consolidated Entity and the expected results of those operations in future financial years has not been included in this director s report because the Directors believe, on reasonable grounds, that to include such information would be likely to result in unreasonable prejudice to the Consolidated Entity. Dividends paid or recommended The directors recommend that no dividend be paid for the period to 31 December Rounding The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (unless otherwise stated) under the option available to the Consolidated Entity under ASIC Class Order 98/0100. The Consolidated Entity is an entity to which the Class Order applies. Auditor s independence declaration The auditor s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 20. Signed in accordance with a resolution of the Directors. Graeme Robertson Executive Chairman Dated at Sydney this 25th of February 2013 Half Year Review December

7 Financial Statements Condensed Consolidated Statement of Comprehensive Income for the half-year ended 31 December December 31 December Sales income 4, Net cost of production (3,377) (216) GROSS PROFIT Other income Foreign exchange gain / (loss) (274) 274 Compliance and regulatory expenses (32) (63) Legal and professional expenses (628) (719) Depreciation and amortisation (326) (331) Remuneration and employee expenses (1,169) (989) Exploration expenditure (689) (568) Impairment of tenements - (800) Share based payments (62) (767) Other expenses (1,114) (702) Finance income Finance costs (12) - LOSS BEFORE INCOME TAX (3,284) (4,011) Income tax expense (74) - NET LOSS FOR THE PERIOD (3,358) (4,011) OTHER COMPREHENSIVE INCOME Foreign currency translation gain / (loss) (643) 799 Income tax on other comprehensive income - - TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (4,001) (3,212) NET LOSS FOR THE PERIOD Attributed to: Shareholders of Intra Energy Corporation Limited (2,803) (3,875) Non-controlling interest (555) (136) (3,358) (4,011) TOTAL COMPREHENSIVE LOSS FOR THE PERIOD Attributed to: Shareholders of Intra Energy Corporation Limited (3,487) (3,068) Non-controlling interest (514) (144) (4,001) (3,212) LOSS PER SHARE Loss per share (cents per share, basic and diluted) (1.16) (1.70) The Statement of Comprehensive Income should be read in conjunction with the accompanying notes to the Financial Statements. Half Year Review December

8 Financial Statements Condensed Consolidated Statement of Financial Position as at 31 December 2012 Notes 31 December 30 June Current Assets Cash and cash equivalents 4,165 8,771 Inventories 2,470 2,458 Trade and other receivables 3,332 1,983 Total Current Assets 9,967 13,212 Non-Current Assets Property, plant & equipment 2 8,828 7,365 Intangibles Capitalised mine development costs 3 3,235 2,041 Exploration expenditure 4 12,761 13,599 Total Non-Current Assets 24,954 23,005 TOTAL ASSETS 34,921 36,217 Current Liabilities Trade and other payables 2,825 1,527 Deferred tax - 56 Interest bearing liabilities Provisions Total Non-Current Liabilities 3,562 1,850 Non-Current Liabilities Interest bearing liabilities Total Non-Current Liabilities TOTAL LIABILITIES 4,493 1,850 NET ASSETS 30,428 34,367 EQUITY Issued capital 6 62,060 62,060 Reserves 7 2,096 2,718 Accumulated losses (32,313) (29,510) Total equity attributed to equity 31,843 35,268 holders of the Company Non-controlling Interest (1,415) (901) TOTAL EQUITY 30,428 34,367 The Statement of Financial Position should be read in conjunction with the accompanying notes to the Financial Statements. Half Year Review December

9 Financial Statements Condensed Consolidated Statement of Changes in Equity for the half-year ended 31 December 2012 Issued Capital Accumulated Losses Reserves Total Non- Controlling Interest Total Equity At 1 July ,060 (29,510) 2,718 35,268 (901) 34,367 Net profit / (loss) for the period - (2,803) - (2,803) (555) (3,358) Foreign currency translation differences - - (684) (684) 41 (643) Total comprehensive income / (loss) - (2,803) (684) (3,487) (514) (4,001) Transactions with owners recorded directly into equity Performance Rights granted Balance at 31 December ,060 (32,313) 2,096 31,843 (1,415) 30,428 At 1 July ,176 (22,557) 1,720 32,339 (3,103) 29,236 Net profit / (loss) for the period - (3,875) - (3,875) (136) (4,011) Foreign currency translation differences (8) 799 Total comprehensive income / (loss) - (3,875) 807 (3,068) (144) (3,212) Transactions with owners recorded directly into equity Shares issued during the period 6, ,600-6,600 Non-controlling interest in joint venture incorporated during the period ,016 3,016 Options issued / (expired) Share based payment transactions 2, ,623-2,623 Balance at 31 December ,399 (26,432) 2,621 38,588 (231) 38,357 The Statement of Changes in Equity should be read in conjunction with the accompanying notes to the Financial Statements. Half Year Review December

10 Financial Statements Condensed Consolidated Statement of Cash Flows for the half-year ended 31 December December 31 December CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 4, Payments to suppliers and employees (7,655) (5,835) Interest Received NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES (2,963) (5,262) CASH FLOWS FROM INVESTING ACTIVITIES Mineral exploration and development expenditure (901) (7,217) Purchase of property, plant and equipment and intangibles (1,745) (5,814) Proceeds from sale of tenements - 55 Loan provided to third parties (383) - NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES (3,029) (12,976) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares - 6,600 Proceeds from borrowings 1,395 - NET CASH INFLOWS FROM FINANCING ACTIVITIES 1,395 6,600 NET MOVEMENT IN CASH AND CASH EQUIVALENTS (4,597) (11,638) Effect of exchange rate changes on cash and cash equivalents (9) 46 Cash and cash equivalents at beginning of period 8,771 25,422 CASH AND CASH EQUIVALENTS AT END OF PERIOD 4,165 13,830 The Statement of Cash Flows should be read in conjunction with the accompanying notes to the Financial Statements. Half Year Review December

11 Notes to the Consolidated Financial Statements for the half-year ended 31 December Summary of Significant Accounting Policies a) Basis of Preparation This general purpose condensed half-year financial report has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134 Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. The half-year financial report does not include all notes of the type normally included in an annual financial report. It is recommended that this half-year financial report should be read in conjunction with the annual report for the period ended 30 June 2012 and any public announcements made by Intra Energy Corporation Limited during the half-year in accordance with the continuous disclosure obligations arising under the Corporations Act The half-year financial report has been prepared on a historical cost basis. b) Going Concern The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business. The Directors have reviewed the business outlook and are of the opinion that the use of the going concern basis of accounting is appropriate as they believe the Consolidated Entity is in a position to pay their debts as and when they fall due in the next 12 months. At this time, the Directors are of the opinion that no asset is likely to be realised for an amount less than the amount at which it is recorded in this financial report. Accordingly, no adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the amounts and classification of liabilities that might be necessary should the consolidated entity not continue as a going concern. c) Significant Accounting Policies The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with those adopted and disclosed in the group s annual financial report for the financial year ended 30 June 2012, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. The Consolidated Entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current reporting period. The adoption of these amendments has not resulted in any changes to the Consolidated Entity s accounting policies and has no effect on the amounts reported for the current or prior periods. d) Significant accounting judgements, estimates and assumptions In the application of the Consolidated Entity s accounting policies management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Half Year Review December

12 1. Summary of Significant Accounting Policies (Cont d) Key sources of estimation uncertainty The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year: Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on average costs over the relevant period of production and includes expenditure in accumulating the inventories, production costs and other costs incurred in bringing them to their existing location and condition. Stockpile tonnages are verified by periodic surveys. Recoverability of exploration and evaluation expenditure The recoverability of the capitalised acquisition expenditure recognised as a non-current asset is dependent upon the successful development, or alternatively sale, of the respective tenements which comprise the assets. 2. Property, Plant and Equipment 31 December 2012 Office Equipment Computer Equipment Mining Equipment Motor Vehicles Leasehold Capital Work in Progress Half year ended 31 December 2012 At 1 July 2012, net of accum. depreciation ,928 1, ,365 Additions ,814 2,200 Disposals (net) (3) - - (90) - - (93) Depreciation charge (15) (42) (180) (128) (5) - (370) Effect of exchange rates (net) (5) (8) (183) (67) (11) - (274) At 31 Dec 2012, net of accum. depreciation ,684 1, ,834 8,828 At 31 December 2012 At cost ,135 1, ,834 9,735 Accumulated depreciation (45) (101) (451) (302) (8) - (907) Net carrying amount ,684 1, ,834 8,828 Total 30 June 2012 Office Equipment Computer Equipment Mining Equipment Motor Vehicles Leasehold Capital Work in Progress Year ended 30 June 2012 At 1 July 2011, net of accum. depreciation ,448 2,698 Additions ,851 1, ,970 Disposals (net) Transfers - - 1, (1,448) - Depreciation charge (11) (50) (264) (173) (3) - (501) Effect of exchange rates (net) At 30 June 2012, net of accum. depreciation ,928 1, ,365 At 30 June 2012 At cost ,209 1, ,936 Accumulated depreciation (35) (61) (281) (191) (3) - (571) Net carrying amount ,928 1, ,365 Total Half Year Review December

13 3. Capitalised Mine Development Costs 31 December 30 June Opening balance 2, Development expenditure 823 1,404 Transferred from exploration expenditure Amortisation - (1) Effect of exchange rates (87) - 4. Exploration Expenditure 3,235 2,041 Songwe-Kiwira tenements 31 December 30 June Opening balance 13, Add: Acquired mineral rights - 12,678 Add: Exploration expenditure 78 - Less: Effect of exchange rates (458) - Intra Energy Tanzania Limited tenements (formerly PCEA Pty Ltd) 12,761 13,141 Opening balance 458 1,258 Less: Exploration expenditure written-off - (800) Less: Expenditure transferred to capitalised mine development (458) Total Exploration Expenditure 12,761 13,599 The recoverability of the carrying amount of exploration assets is dependent on the successful development and commercialisation or sale of the respective mining permits. Amortisation of the costs carried forward for the development phase is not charged pending the commencement of production. Exploration expenditure at Tancoal of $458,000 was reclassified as capitalised mine development costs during the period. 5. Interest bearing liabilities 31 December 30 June Secured loan facility Loan drawn at end of the period Current portion Loan drawn at end of the period Non-Current portion 931-1,397 - On 23 October 2012, two subsidiaries, Tancoal Energy Limited and AAA Drilling Limited secured loan facilities of US$2.5m and US$1.4m respectively, with the National Bank of Commerce in Tanzania ( NBC ) (ultimately controlled by Barclays Bank Plc). Half Year Review December

14 5. Interest bearing liabilities (Cont d) Each facility is secured against plant and equipment. AU$1,397,000 had been drawn down at 31 December The facilities are amortised over a three year term and are paid monthly. These loan facilities require compliance with the following financial covenants: 1. Net debt gearing: Gross borrowings less cash shall not exceed 100% of net tangible assets at 2012 and 125% thereafter; 2. Interest cover ration: EBITDA shall not fall below 3.5 times finance charges; and 3. Debt service cover: EBITDA to debt service (being principal and interest payments) shall not fall below 2.5 to1. These covenants are to be determined for each 12 month period ending 30 June. 6. Issued capital 31 December 30 June Fully Paid Ordinary Shares 242,657,709 shares (30 June 2012: 242,657,709 ordinary shares) 62,060 62, Reserves 31 December 30 June (a) Options over ordinary shares 9,400,000 options (30 June 2012: 9,400,000 options) 2,216 2,216 (b) Performance Rights Reserve 8,625,330 performance rights (30 June 2012: 2,638,269 performance rights) Movements in performance rights on issue: Number of performance rights Total Balance at 1 July ,638, Performance Rights issued 2013 year 5,987, Balance at 31 December ,625, (c) Translation Reserve Balance at beginning of period 424 (329) Translation reserve movement (684) 753 Exchange differences arising on translation of foreign operations (260) 424 Total Reserves 2,096 2,718 Half Year Review December

15 8. Post Balance Date Events Reference is made to the ASX Release dated 25 January 2013 relating to the acquisition of coal licenses in Malawi for consideration of US$950,000. The concessions include the operating Nkhachira Coal Mine within Mining Licence ML0143/2005 and three Exclusive Prospecting Licences (EPL) which are located in the north of Malawi, west of the town of Karonga. Other than the above, there has not arisen in the interval between 31 December 2012 and the date of this report, any item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the consolidated entity, in future financial years 9. Segment Information The consolidated entity operates in two geographical segments being Australia and Africa. Segment information The Consolidated Entity has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Consolidated Entity s business is the exploration and evaluation of coal in Africa. 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 with those adopted in the annual financial statements of the Group. Inter-segment loans payable and receivable are initially recognised at the consideration received net of transaction costs. 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, investments in financial assets, deferred tax assets and intangible assets have not been allocated to operating segments. Segment liabilities Liabilities are allocated to segments where there is a 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 Consolidated Entity as a whole and are not allocated. Segment liabilities include trade and other payables. Half Year Review December

16 9. Segment Information (Cont d) Geographical Segment Australia Period Ended 31 Dec 12 Australia Period Ended 31 Dec 11 Africa Period Ended 31 Dec 12 Africa Period Ended 31 Dec 11 Other Period Ended 31 Dec 12 Other Period Ended 31 Dec 11 Eliminations Period Ended 31 Dec 12 Eliminations Period Ended 31 Dec 11 Consolidated Period Ended 31 Dec 12 Consolidated Period Ended 31 Dec 11 Revenue Sales Revenue - - 4, , Inter segment Revenue (691) Net cost of production - - (3,377) (216) (3,377) (216) Gross Profit (691) Results from operating activities (1,729) (2,041) (3,190) (2,569) (27) (4,255) (4,610) Finance income Finance cost - - (12) (12) - Segment result (974) (1,628) (2,283) (2,383) (27) (3,284) (4,011) Loss Before Income Tax (974) (1,628) (2,283) (2,383) (27) (3,284) (4,011) Income tax expense - - (74) (74) - Net Loss For The Period (974) (1,628) (2,357) (2,383) (27) (3,358) (4,011) Half Year Review December

17 Directors Declaration In accordance with a resolution of the Directors of Intra Energy Corporation Limited, I state that: In the opinion of the Directors: (a) the financial statements and notes of the consolidated entity: (i) (ii) give a true and fair view of the financial position as at 31 December 2012 and the performance for the half-year ended on that date of the consolidated entity; and comply with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001; and (b) 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. On behalf of the Board Graeme Robertson Executive Chairman Dated at Sydney this 25 of February 2012 Half Year Review December

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