Good Mining (International) Limited

IFRS Core Tools Good Mining (International) Limited Illustrative consolidated financial statements for the year ended 31 December 2015 International GAAP

Contents Abbreviations and key... 2 Introduction... 3 General information... 9 Independent auditors report to shareholders of Good Mining (International) Limited... 10 Consolidated statement of profit or loss and other comprehensive income... 12 Consolidated statement of financial position... 14 Consolidated statement of changes in equity... 16 Consolidated statement of cash flows... 18 Notes to the consolidated financial statements... 21 Appendix A - Consolidated statement of cash flows direct method... 94 Appendix B Information in other illustrative financial statements available...95 Glossary... 98 Notes...100 1 Good Mining (International) Limited

Abbreviations and key The following styles of abbreviation are used in this set of International GAAP Illustrative Financial Statements: IAS 33.41 International Accounting Standard No. 33, paragraph 41 IAS 1.BC.13 International Accounting Standard No. 1, Basis for Conclusions, paragraph 13 IFRS 2.44 International Financial Reporting Standard No. 2, paragraph 44 SIC 29.6 Standing Interpretations Committee Interpretation No. 29, paragraph 6 IFRIC 4.6 IAS 39.IG.G.2 IAS 39.AG71 IFRS Interpretations Committee (formerly the International Financial Reporting Interpretations Committee) Interpretation No. 4, paragraph 6 International Accounting Standard No. 39 Implementation guidance for IAS 39 Section G: Other, paragraph G.2 International Accounting Standard No. 39 Appendix A Application Guidance, paragraph AG71 ISA 700.25 International Standard on Auditing No. 700, paragraph 25 GAAP IASB Interpretations Committee SIC The commentary explains how the requirements of IFRS have been implemented in arriving at the illustrative disclosure Generally Accepted Accounting Principles/Practice International Accounting Standards Board IFRS Interpretations Committee (formerly the International Financial Reporting Interpretations Committee (IFRIC)) Standing Interpretations Committee Good Mining (International) Limited 2

Introduction This publication contains an illustrative set of consolidated financial statements for Good Mining (International) Limited (Good Mining) and its subsidiaries (the Group) that is prepared in accordance with International Financial Reporting Standards (IFRS). The Group is a fictitious, large publicly listed mining company. The Group is a gold and copper exploration, development and production entity whose activities include the exploration for, and development of, gold and copper mineral deposits and the production and sale of gold bullion and gold and copper metal concentrate. All of its operations are located in Metalville (a fictitious country). The presentation currency of the Group is the US dollar. Objective This set of illustrative financial statements is one of many prepared by EY to assist you in preparing your own financial statements. This set of illustrative financial statements is intended to reflect transactions, events and circumstances that we consider to be most common to entities in the mining sector. They and are intended to illustrate IFRS disclosures specific to companies in the mining sector. Therefore, some common transactions and their disclosures have been deliberately omitted or simplified because they are illustrated in other EY illustrative financial statement publications, such as Good Group (International) Limited 2015. We refer readers to the other publications for a greater understanding of other presentation and disclosure requirements that are not specific to the mining sector. Accounting for extractive activities is complex, with a variety of accounting policy choices available for transactions in the exploration and evaluation phase. Moreover, the lack of specific guidance for certain transactions and arrangements presents the sector with a challenge to produce useful financial statements through effective presentation and disclosure. However, differences in accounting policies and their application reduces comparability and increases complexity. IFRS prescribes minimum standards of disclosure; it is important to provide additional disclosures to explain any unusual circumstances faced by the mining entity. In addition, accounting policy choices made by the entity need to be disclosed in detail to aid the reader in comparing entities in the mining sector. This publication illustrates what we consider to be relevant disclosures and focuses on those areas of IFRS reporting that rely on the professional judgement of management. For illustrative purposes only, some disclosures have been provided even though they may not be relevant or material for the Group. For instance, disclosures are provided for accounting policies that may not be relevant and/or certain disclosures are provided for items that are not material to the financial statements of the Group. We strongly encourage entity-specific presentation and disclosures. These illustrative financial statements are therefore only meant to serve as a useful reference. How to use these illustrative financial statements to prepare entity-specific disclosures Users of this publication are encouraged to prepare entity-specific disclosures, for which these illustrative financial statements may serve as a useful reference. Transactions and arrangements other than those addressed by the Group may require additional disclosures. It should be noted that the illustrative financial statements of the Group are not designed to satisfy any stock market or country-specific regulatory requirements in any given jurisdiction, nor is this publication intended to reflect disclosure requirements that apply mainly to regulated or specialised industries. It is essential to refer to the relevant accounting standards and/or specific jurisdictional requirements and, when necessary, to seek appropriate professional advice where there may be doubt as to the requirements. Notations shown on the right-hand margin of each page are references to IFRS paragraphs that describe the specific disclosure requirements. Commentaries are provided to explain the basis for the disclosure or to address alternative disclosures not included in the illustrative financial statements. For a more comprehensive list of disclosure requirements, refer to EY's Online International GAAP Disclosure Checklist. If questions should arise as to the IFRS requirements, it is essential to refer to the relevant source material and, where necessary, to seek appropriate professional advice. Improving disclosure effectiveness The terms disclosure overload and cutting the clutter describe an acute problem in financial reporting that has become a priority issue for the International Accounting Standards Board (IASB or Board), local standard setters, and regulatory bodies. The growth and complexity of financial statement disclosures is also drawing significant attention from financial statement preparers, and more importantly, the users of financial statements. Even though there is no formal definition of disclosure overload, from the different discussions and debates among stakeholders, three common themes have appeared, namely: financial statements format or structure; tailoring; and materiality. 3 Good Mining (International) Limited

Introduction continued Considering the purpose, activities and operations of Good Mining, for the 31 December 2015 illustrative financial statements, the ordering of the notes has been changed from the structure used in prior years and as suggested in paragraph 114 of IAS 1 Presentation of Financial Statements. Similar to the 2014 version of Good Mining, as part of the process of improving the effectiveness of the financial statements and to enable users to more easily obtain the relevant information, some of the notes have been reorganised according to their nature and perceived importance. The ordering of the notes is now based on nine different notes sections and is summarised in the table below: Sections Comprising the following notes: 1. Corporate and Group information Corporate information (Note 1A) 2. Basis of preparation and other significant accounting policies Basis of preparation (Note 2A.1) Basis of consolidation (Note 2A.2) Significant accounting judgements, estimates and assumptions (Note 2B) Changes in accounting policies and disclosures (Note 2C) Summary of significant accounting policies (unless included with the associated quantitative and qualitative note below) (Note 2D) 3. Group and related party information Interests in joint arrangements (Note 3A) Group information and related party disclosures (Note 3B) 4. Significant transactions and events Business combinations acquisitions (Note 4A) 5. Performance for the year Segment information (Note 5A) Operating profit/(loss) (Note 5B) Revenue (Note 5C) Income tax (Note 5D) Earnings per share (Note 5E) 6. Invested capital Exploration and evaluation assets (Note 6A) Mine properties (Note 6B) Property, plant and equipment (Note 6C) Intangible assets (Note 6D) Impairment losses (Note 6E) Commitments (Note 6F) 7. Capital and debt structure Capital management (Note 7A) Issued capital (Note 7B) Financial instruments including interest-bearing loans and borrowings, derivative financial instruments and financial risk management objectives and policies (Note 7C) Dividends paid and proposed (Note 7D) 8. Working capital Inventories (Note 8A) Trade and other receivables (Note 8B) Cash and short-term deposits (Note 8C) 9. Other Provisions (Note 9A) Accounts payable and accrued liabilities (Note 8D) Contingencies (Note 9B) Events after the reporting date (Note 9C) Standards issued but not yet effective (Note 9D) Good Mining (International) Limited 4

Introduction continued The above order and grouping of notes reflects how those charged with governance of the Group viewed and managed the Group during the current period. This order and grouping also reflects the views of key stakeholders that we engaged with in the formulation of this year s financial statements. By structuring the notes according to their nature and perceived importance, users may find it easier to extract the relevant information. In addition, the significant accounting policies, judgements, key estimates and assumptions could alternatively be placed within the same note as the related qualitative and quantitative disclosures to provide a more holistic discussion for users of the financial statements. In addition, consistent with common market trends, the Group has moved various accounting policies from Note 2D and located these with the related qualitative and quantitative notes. For example, the accounting policy note relating to joint arrangements now resides with the qualitative and quantitative information on joint arrangements in note 3A. Entities may find that other structures or presentation formats and layouts are better at enhancing disclosure effectiveness. The approach summarised above and throughout these illustrative financial statements is only intended to illustrate that IFRS allows for alternative notes structures. Entities may also consider re-writing their accounting policies in plain English in order to improve readability of the financial report or increasing the use of diagrams, infographics and graphs to present information. Entities should carefully assess their entity-specific circumstances and understand the preferences of the primary users before deciding on the structure and layout of the financial statements. In addition, entities are challenging the way in which they apply the concept of materiality with respect to disclosures. Applying this concept requires judgement, in particular, in relation to matters of presentation and disclosure, and may be another cause of the perceived disclosure overload problem. IFRS provides a set of minimum disclosure requirements which, in practice, too often is applied without consideration of the information s relevance for the specific entity. That is, if the transaction or item is immaterial to the entity, then it is not relevant to users of financial statements, in which case, IFRS does not require that the item be disclosed. If immaterial information is included in the financial statements, the amount of information can potentially reduce the transparency and usefulness of the financial statements as the material, and thus relevant information, lose prominence. As explained above, the primary purpose of these financial statements is to illustrate how the most commonly applicable disclosure requirements can be met. Therefore, they include disclosures that may, in practice, be deemed not material to Good Mining. It is essential that entities consider their specific circumstances when determining which disclosures to include. These financial statements are not intended to act as guidance for making the materiality assessment; they must always be tailored to ensure that an entity s financial statements reflect and portray its specific circumstances and its own materiality considerations. Only then will the financial statements provide decision-useful financial information. For more guidance on how to improve disclosure effectiveness, please refer to our publication Applying IFRS: Improving Disclosure Effectiveness (July 2014) or Good Group (International) Limited Alternative Format. Other illustrative financial statements We provide a number of industry-specific illustrative financial statements and illustrative financial statements addressing specific circumstances that you may consider. The entire series of illustrative financial statements comprises: Good Group (International) Limited Good Group (International) Limited Alternative Format Good Group (International) Limited Illustrative interim condensed consolidated financial statements Good First-time Adopter (International) Limited Good Investment Fund Limited (Equity) Good Investment Fund Limited (Liability) Good Real Estate Group (International) Limited Good Petroleum (International) Limited 5 Good Mining (International) Limited

Introduction continued International Financial Reporting Standards The abbreviation IFRS is defined in paragraph 5 of the Preface to International Financial Reporting Standards to include standards and interpretations approved by the IASB, and International Accounting Standards (IASs) and Standing Interpretations Committee interpretations issued under previous Constitutions. This is also noted in paragraph 7 of IAS 1 and paragraph 5 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Thus, when financial statements are described as complying with IFRS, it means that they comply with the entire body of pronouncements sanctioned by the IASB. This includes the IAS, IFRS and Interpretations originated by the IFRS Interpretations Committee (formerly the SIC). International Accounting Standards Boards (IASB) The IASB is the independent standard-setting body of the IFRS Foundation (an independent not-for-profit private sector organisation working in the public interest). The IASB members (currently 14 full-time members) are responsible for the development and publication of IFRSs, including International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), and for approving Interpretations of IFRS as developed by the IFRS Interpretations Committee. In fulfilling its standard-setting duties, the IASB follows a due process, of which the publication of consultative documents, such as discussion papers and exposure drafts, for public comment is an important component. The IFRS Interpretations Committee (Interpretations Committee) The Interpretations Committee is a committee appointed by the IFRS Foundation Trustees that assists the IASB in establishing and improving standards of financial accounting and reporting for the benefit of users, preparers and auditors of financial statements. The Interpretations Committee addresses issues of reasonably widespread importance, rather than issues of concern to only a small set of entities. These include any newly identified financial reporting issues not addressed in IFRS. The Interpretations Committee also advises the IASB on issues to be considered in the annual improvements to IFRS project. IFRS as at 31 August 2015 As a general approach, these illustrative financial statements do not early adopt standards or amendments before their effective date. The standards and interpretations applied in these illustrative financial statements are those that were in issue as at 31 August 2015 and effective for annual periods beginning on or after 1 January 2015. Standards issued, but not yet effective, as at 1 January 2015, have not been early adopted. It is important to note that these illustrative financial statements will require continual updating as standards are issued and/or revised. For details of other standards and interpretations issued, but not yet effective, that may apply to your particular entity, refer to either the commentary sections contained herein, or to Good Group (International) Limited 2015 illustrative financial statements, for further details and the appropriate illustrative disclosures. It is important to note that these illustrative financial statements will require continual updating as standards are issued and/or revised. Users of this publication are cautioned to check that there has been no change in the requirements of IFRS between 31 August 2015 and the date on which their financial statements are authorised for issue. In accordance with paragraph 30 of IAS 8, specific disclosure requirements apply for standards and interpretations issued but not yet effective (see Note 9D of these illustrative financial statements). Furthermore, if the financial year of an entity is other than the calendar year, new and revised standards applied in these illustrative financial statements may not be applicable. Accounting policy choices Accounting policies are broadly defined in IAS 8 and include not just the explicit elections provided for in some standards, but also other conventions and practices that are adopted in applying principle-based standards. In some cases, IFRS permits more than one accounting treatment for a transaction or event. Preparers of financial statements should select the accounting policies that are most relevant to their business and circumstances. IAS 8 requires an entity to select and apply its accounting policies consistently for similar transactions, events and/or conditions, unless an IFRS specifically requires or permits categorisation of items for which different policies may be appropriate. Where an IFRS requires or permits such categorisation, an appropriate accounting policy is selected and applied consistently to each category. Therefore, once a choice of one of the alternative treatments has been made, it becomes an accounting policy and must be applied consistently. Changes in accounting policy should be made only if required by a standard or interpretation, or if the change results in the financial statements providing reliable and more relevant information. Good Mining (International) Limited 6

Introduction continued Accounting policy choices continued In this publication, when a choice is permitted by IFRS, the Group has adopted one of the treatments as appropriate to the circumstances of the Group. In these cases, the commentary provides details of which policy has been selected, describes the reasons for this policy selection, and summarises the difference in the disclosure requirements. Financial review by management Many entities present a financial review by management that is outside the financial statements. IFRS does not require the presentation of such information, although IAS 1.13 gives a brief outline of what may be included in such a report. The IASB issued an IFRS Practice Statement, Management, in December 2010, which provides a broad non-binding framework for the presentation of a management commentary that relates to financial statements prepared in accordance with IFRS. If an entity decides to follow the guidance in the Practice Statement, management is encouraged to explain the extent to which the Practice Statement has been followed. A statement of compliance with the Practice Statement is only permitted if it is followed in its entirety. Further, the content of a financial review by management is often determined by local market requirements or issues specific to a particular jurisdiction. No financial review by management has been included for the Group. Changes in the 2015 edition of Good Mining (International) Limited annual financial statements The standards and interpretations listed below have become effective since 31 August 2014 for annual periods beginning 1 January 2015. While the list of new standards is provided below, not all of these new standards will have an impact on these illustrative financial statements. To the extent these illustrative financial statements have changed since the 2014 edition, due to changes in standards and interpretations, we have indicated what has changed in Note 2C. Also, as explained above, as part of the process of improving the effectiveness of the financial statements and to enable users to more easily obtain the relevant information, the notes in Good Mining have been reordered according to their nature and perceived importance. Other changes from the 2014 edition have been made in order to reflect practice developments and to improve the overall quality of the illustrative financial statements. Changes to IFRS The following new standards and amendments became effective as of 1 January 2015: Annual Improvements Cycle - 2010-2012 Annual Improvements Cycle - 2011-2013 Amendments to IAS 19 Defined Benefit Plans: Employee Contributions Not all of these standards and amendments impact the Group s consolidated financial statements. If a standard or amendment affects the Group, it is described, together with the impact, in Note 2C of these consolidated financial statements. 7 Good Mining (International) Limited

Good Mining (International) Limited Consolidated Financial Statements 31 December 2015 Good Mining (International) Limited 8

General information Directors T Warington (Chairman) B Dogger (Chief Executive Officer) M Hopester R Bemberton S Rabbit M Herbert T Whelands K Choppington L Higglay F MacGillson Company Secretary V Tidiman Registered Office Gold Towers Productivity Square, Metalcity Metalville Solicitor Solicitors & Co. 7 Scott Street, Metalcity Metalville Bankers Bank Plc 10 George Street, Metalcity Metalville Auditor Chartered Accountants & Co. 17 Metalville High Street, Metalcity Metalville 9 Good Mining (International) Limited

Independent auditors report to the shareholders of Good Mining (International) Limited We have audited the accompanying consolidated financial statements of Good Mining (International) Limited and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2015 and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s responsibility for the consolidated financial statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of 31 December 2015, and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards. Chartered Accountants & Co. 27 January 2016 Metalcity Metalville The auditors report has been prepared in accordance with ISA 700 Forming an Opinion and Reporting on Financial Statements. The auditors report may differ depending on the requirements specific to a relevant jurisdiction. Good Mining (International) Limited 10

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Consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2015 IAS 1.49 IAS 1.51(b) IAS 1.10(b) IAS 1.10A Year ended 2015 2014 IAS 1.51(c) Notes US$ million US$ million IAS 1.51(d)(e) Revenue 5C 3,828 2,917 IAS 1.82(a), IAS 18.35(b)(i) Cost of sales (1,616) (1,232) IAS 1.103 Gross profit 2,212 1,685 IAS 1.85,103 Other income 54 85 IAS 1.103 Share of profit of joint venture 3A 16 25 IAS 1.82(c) Selling and distribution expenses 5B (133) (94) Other operating expenses 5B (75) (45) IAS 1.103 General and administrative expenses 5B (180) (205) IAS 1.103 Operating profit 1,894 1,451 IAS 1.85 Finance revenue 5C 24 25 IAS 1.82(a) Finance costs (94) (40) IAS 1.82(b) Profit before income tax 1,824 1,436 IAS 1.85 Income tax expense 5D (779) (525) IAS 1.82(d), IAS 12.77 Profit for the year 1,045 911 IAS 1.81A(a) Other comprehensive income - - IAS 1.81A(b) Total comprehensive income 1,045 911 IAS 1.81A(c) Basic and diluted earnings per ordinary share (US$ per share) 5E 0.67 0.95 IAS 33.66 Good Mining (International) Limited 12

Consolidated statement of profit or loss and other comprehensive income continued The above disclosure is an illustration of an entity that elects to present a single statement of profit or loss and other comprehensive income. It is also acceptable to present a separate statement of profit or loss and statement of other comprehensive income. The Group does not have any items of other comprehensive income. The nil line item for other comprehensive income is included for illustrative purposes only. The Group may have omitted the line item as this is nil and, hence, not material. Please refer to Good Group (International) Limited 2015 illustrative financial statements for additional details and examples of items to be included in other comprehensive income. IAS 1.10 suggests titles for the primary financial statements, such as statement of profit or loss and other comprehensive income or statement of financial position. Entities are, however, permitted to use other titles, such as income statement or balance sheet. The Group applies the titles suggested in IAS 1. IAS 1.99 requires expenses to be analysed either by their nature or by their function in the statement of profit or loss, whichever provides information that is reliable and more relevant. If expenses are analysed by function, information about the nature of expenses must be disclosed in the notes. The Group has presented the analysis of expenses by function. The Group presents operating profit in the statement of profit or loss and other comprehensive income; this is not required by IAS 1. The terms operating profit or operating income are not defined in IFRS. IAS 1.BC56 states that the IASB recognises that an entity may elect to disclose the results of operating activities, or a similar line item, even though this term is not defined. The entity should ensure the amount disclosed is representative of activities that would normally be considered to be operating. For instance, it would be inappropriate to exclude items clearly related to operations (such as inventory write-downs and restructuring and relocation expenses) because they occur irregularly or infrequently or are unusual in amount. Similarly, it would be inappropriate to exclude items on the grounds that they do not involve cash flows, such as depreciation and amortisation expenses (IAS 1.BC56). In practice, other titles, such as Earnings Before Interest and Tax (EBIT), are sometimes used to refer to an operating result. The Group has presented its share of profit of a joint venture using the equity method under IAS 28 Investments in Associates and Joint Ventures before the line-item operating profit. IAS 1.82(c) requires share of the profit or loss of associates and joint ventures accounted for using the equity method to be presented in a separate line item on the face of the statement profit or loss. Regulators or standard-setters in certain jurisdictions recommend or accept share of the profit/loss of equity method investees being presented with reference to whether the operations of the investees are closely related to that of the reporting entity. This may result in the share of profit/loss of certain equity method investees being included in the operating profit, while share of profit/loss of other equity method investees is excluded from operating profit. In other jurisdictions, regulators or standard-setters believe that IAS 1.82(c) requires that share of profit/loss of equity method investees to be presented as one line item (or, alternatively, as two or more adjacent line items, with a separate line for the sub-total). This may cause diversity in practice. IAS 33.68 requires presentation of basic and diluted earnings per share (EPS) for discontinued operations either on the face of the statement of profit or loss or in the notes to the financial statements. The Group does not have any discontinued operations so these disclosures are not relevant. The EPS information for continuing operations is disclosed on the face of the statement of profit or loss and other comprehensive income. 13 Good Mining (International) Limited

Consolidated statement of financial position as at 31 December 2015 2015 2014 IAS 1.10(a) IAS 1.51(b)(c) Notes US$ million US$ million IAS 1.51(d)(e) Assets Non-current assets Exploration and evaluation assets 6A 759 501 IAS 1.60 IAS 1.66 IAS 1.54(a), IFRS 6.15 IFRS 6.23 Mine properties 6B 4,664 3,493 IAS 1.54(a) Property, plant and equipment 6C 238 227 IAS 1.54(a) Intangible assets 6D 53 27 IAS 1.54(c) Inventories 8A 3 3 IAS 1.54(g) Investment in joint venture 3A 114 98 IAS 1.54(e) Restricted cash 8C 50 50 IAS 7.48-49 Deferred tax assets 5D 83 57 IAS 1.54(o), 56 Total non-current assets 5,964 4,456 Current assets IAS 1.60, IAS 1.66 Inventories 8A 123 112 IAS 1.54(g) Trade and other receivables 8B 618 599 IAS 1.54(h) IFRS 7.8(c) Cash and short-term deposits 8C 458 489 IAS 1.54(i) Derivative financial assets 7C.2 22 20 Total current assets 1,221 1,220 Total assets 7,185 5,676 Equity and liabilities Equity IAS 1.54(d) IFRS 7.8(a) Issued capital 7B 1,564 1,564 Retained earnings 3,020 2,325 Total shareholders equity 4,584 3,889 Non-current liabilities Interest-bearing loans and borrowings 7C.1 532 315 Deferred tax liabilities 5D 394 330 IAS 1.54(r) IAS 1.78(e) IAS 1.54(r) IAS 1.78(e) IAS 1.60 IAS 1.69 IAS 1.54(m) IFRS 7.8(f) IAS 1.54(o), IAS 1.56 Provisions 9A 610 373 IAS 1.54(l) Total non-current liabilities 1,536 1,018 Current liabilities IAS 1.60, 69 Accounts payable and accrued liabilities 8D 589 536 IAS 1.54(k) Taxes payable 365 166 IAS 1.54(n) Interest-bearing loans and borrowings 7C.1 82 51 IAS 1.54(m), IFRS 7.8(f) Provisions 9A 29 16 IAS 1.54(l) Total current liabilities 1,065 769 Total liabilities 2,601 1,787 Total shareholders equity and liabilities 7,185 5,676 Good Mining (International) Limited 14

Consolidated statement of financial position continued IAS 1 requires an entity to present a statement of financial position at the beginning of the earliest comparative period when it applies an accounting policy retrospectively, it makes a retrospective restatement of items in its financial statements, or reclassifies items in its financial statements (IAS 1.10(f)), and the change has a material effect on the statement of financial position. In these situations, IAS 1.40A states that an entity must present, at a minimum, three statements of financial position, two of each of the other primary statements and the related notes. The three statements of financial position include the statement of financial position as at the current annual period year-end, the statement of financial position as at the previous annual period year-end, and the statement of financial position as at the beginning of the previous annual period ( the opening balance sheet, often referred to as the third balance sheet ). There are no new standards applied during the current year which require the presentation of a third balance sheet. In accordance with IAS 1.60, the Group has presented current and non-current assets, and current and non-current liabilities, as separate classifications in the statement of financial position. IAS 1 does not require a specific order of the two classifications. The Group has elected to present non-current assets and liabilities before current assets and liabilities. IAS 1 requires entities to present assets and liabilities in order of liquidity when this presentation is reliable and more relevant. 15 Good Mining (International) Limited

Consolidated statement of changes in equity for the year ended 31 December 2015 Issued capital Retained earnings Total equity IAS 1.10(c) IAS 1.51(b)(c) Notes US$ million US$ million US$ million IAS 1.51(d)(e) As at 1 January 2014 7B 836 1,554 2,390 Profit for the year - 911 911 IAS 1.106(d)(i) Other comprehensive income - - - IAS 1.106(d)(ii) Total comprehensive income - 911 911 IAS 1.106(a) Issue of share capital 7B 728-728 IAS 1.106(d)(iii) Dividends paid 7D - (140) (140) IAS 1.106(d) (iii), 107 As at 1 January 2015 1,564 2,325 3,889 Profit for the year - 1,045 1,045 IAS 1.106(d)(i) Other comprehensive income - - - IAS 1.106(d)(ii) Total comprehensive income - 1,045 1,045 IAS 1.106(a) Dividends paid 7D - (350) (350) IAS 1.106(d)(iii), 107 At 31 December 2015 1,564 3,020 4,584 The Group does not have any items of other comprehensive income. The nil line item for other comprehensive income is included for illustrative purposes only. In practice, the Group may have instead decided to omit the line item as this is nil and, hence, not material. Please refer to Good Group (International) Limited 2015 illustrative financial statements for additional details and examples of items to be included in other Good Mining (International) Limited 16

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Consolidated statement of cash flows for the year ended 31 December 2015 2015 2014 IAS 1.51(b)(c) IAS 1.10(d) Notes US$ million US$ million IAS 1.51(d)(e) Cash flows from operating activities Profit before income tax from operations 1,824 1,436 Adjustments to reconcile profit before tax to net cash flows: IAS 7.20(b) Depreciation, depletion and amortisation 5B 799 434 Impairment of mine properties 5B 33 9 Impairment of exploration and evaluation assets 5B 5 6 Impairment of goodwill 6E 15 - Reversal of previously impaired exploration and evaluation assets 5B (16) - Unsuccessful exploration and evaluation expenditures 6A 90 75 (Gain) on sale of mine properties 5B (39) (58) (Gain)/loss on sale of property, plant and equipment 5B (11) 11 (Gain) on sale of exploration and evaluation assets 5B (1) - Unrealised (gain) on derivative financial instruments (2) (9) Unwinding of discount on rehabilitation 9A 27 28 Share of joint venture profit (16) (25) Other non-cash income and expenses 4 2 Add: finance expense (disclosed in financing activities) 67 12 IAS 7.20(c) Deduct: finance revenue (disclosed in investing activities) (24) (25) IAS 7.20(c) Working capital adjustments: IAS 7.20(a) Change in trade and other receivables 20 (399) Change in inventories 3 (21) Change in trade and other payables relating to operating activities (71) 33 IAS 7.10, 18(b) Income tax paid (584) (375) IAS 7.35 Net cash flows from operating activities 2,123 1,134 Cash flows from investing activities IAS 7.21 IAS 7.16(a) Investment in exploration and evaluation assets 6A (358) (293) Expenditures on mine development (1,246) (1,539) IAS 7.16(a) Expenditures on other intangible assets 6D (5) (4) IAS 7.16(a) Expenditures on property, plant and equipment 6C (1) (32) IAS 7.16(a) Acquisition of a subsidiary, net of cash acquired 4A (439) - IAS 7.39 Proceeds on disposal of exploration and evaluation IAS 7.16(b) assets 23 - Proceeds on disposal of mine properties 65 110 IAS 7.16(b) Proceeds on disposal of property, plant and equipment assets 23 12 IAS 7.16(b) Finance income from investing activities 24 25 IAS 7.31 Net cash used in investing activities (1,914) (1,721) Cash flow from financing activities IAS 7.21 Proceeds from issuance of shares 7B - 728 IAS 7.17(a) Proceeds from loans and borrowings 331 - IAS 7.17(c) Payments of loans and borrowings (114) (32) IAS 7.17(d) Interest paid (64) (12) IAS 7.31 Dividends paid 7D (350) (140) IAS 7.31 Net cash (used in)/from financing activities (197) 544 Net increase/(decrease) in cash 12 (43) Cash and cash equivalents, beginning of period 438 481 Cash and cash equivalents, end of period 8C 450 438 IAS 7.45 Good Mining (International) Limited 18

Consolidated statement of cash flows continued IAS 7.18 allows entities to report cash flows from operating activities using either the direct method or the indirect method. The Group presents its cash flows using the indirect method.. A statement of cash flows prepared using the direct method for operating activities is presented in Appendix A for illustrative purposes. The Group has reconciled profit before tax to net cash flows from operating activities. However, reconciliation from profit after tax is also acceptable under IAS 7 Statement of Cash Flows. IAS 7.33 permits interest paid to be shown as operating, financing or investing activities and interest received to be shown as operating or investing activities, as deemed relevant for the entity. The Group has elected to classify interest received as cash flows from investing activities and interest paid as cash flows from financing activities. IAS 7.16 states that only expenditures that result in a recognised asset in the statement of financial position are eligible for classification as investing activities. Therefore, if an entity adopted a policy of expensing exploration and/or evaluation costs, the related cash flows could not be classified as part of investing activities. Instead, they would need to be classified as part of operating activities. The Group capitalises exploration and evaluation assets in certain situations. Therefore, the related cash flows have been classified as investing cash flows. 19 Good Mining (International) Limited

Index to notes to the consolidated financial statements Section 1: Corporate and group information 1A. Corporate information... 21 2A. Basis of preparation... 21 2B. Significant accounting judgements, estimates and assumptions... 23 2C. Changes in accounting policies and disclosures... 26 2D. Summary of significant accounting policies... 28 3A. Interests in joint arrangements... 32 3B. Group information and related party disclosures... 35 4A. Business combinations acquisitions... 36 5A. Segment information... 40 5B. Operating profit/(loss)... 44 5C. Revenue... 45 5D. Income tax... 47 5E. Earnings per share... 51 6A. Exploration and evaluation assets... 52 6B. Mine properties... 56 6C. Property, plant and equipment... 66 6D. Intangible assets... 67 6E. Impairment losses... 68 6F. Commitments and other contingencies... 74 7A. Capital management... 75 7B. Issued capital... 76 7C. Financial instruments... 76 7C.1 Interest-bearing loans and borrowings... 76 7C.2 Derivative financial instruments... 77 7C.3 Fair values... 78 7C.4 Financial risk management objectives and policies... 80 7D. Dividends paid and proposed... 84 8A. Inventories... 85 8B. Trade and other receivables... 86 8C. Cash and short-term deposits... 87 8D. Accounts payable and accrued liabilities... 88 9A. Provisions... 88 9B. Contingencies... 92 9C. Events after the reporting date... 92 9D. Standards issued but not yet effective... 92 Good Mining (International) Limited 20

Section 1. Corporate and group information 1A. Corporate information The consolidated financial statements of Good Mining International (Good Mining, the parent) and its subsidiaries (collectively, the Group) for the year ended 31 December 2015 were authorised for issue in accordance with a resolution of the directors on 27 January 2016. Good Mining is a limited company incorporated and domiciled in Metalville whose shares are publicly traded. The registered office is located at Gold Tower, Productivity Square, Metalcity, Metalville. The Group is principally engaged in the exploration for, development of and production of gold bullion and gold/copper concentrate. Information on the Group s parent and other related party relationships is presented in Note 3B. Section 2. Basis of preparation and other significant accounting policies This section provides additional information about the overall basis of preparation that the directors consider is useful to be relevant in understanding these financial statements. 2A. Basis of preparation 2A.1 Overview The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments that have been measured at fair value. The consolidated financial statements are presented in US dollars and all values are rounded to the nearest million (US$ million), except where otherwise indicated. Entities in certain jurisdictions may be required to comply with IFRS approved by local laws and regulations. For example, listed companies in the European Union (EU) are required to comply with either IFRS as endorsed by the EU or IFRS as issued by the IASB. These financial statements only illustrate compliance with IFRS as issued by the IASB. 2A.2 Basis of consolidation The consolidated financial statements comprise the financial statements of Good Mining and its subsidiaries as at 31 December 2015. Subsidiaries are entities controlled by the Group. Control exists when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has all of the following: Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee) Exposure, or rights, to variable returns from its involvement with the investee The ability to use its power over the investee to affect its returns Generally, there is a presumption that a majority of voting rights results in control. When the Group has less than a majority of the voting, or similar, rights of an investee, it considers all relevant facts and circumstances in assessing whether it has power over an investee, including: The contractual arrangement(s) with the other vote holders of the investee Rights arising from other contractual arrangements The Group s voting rights and potential voting rights The relevant activities are those which significantly affect the subsidiary s returns. The ability to approve the operating and capital budget of a subsidiary and the ability to appoint key management personnel are decisions that demonstrate that the Group has the existing rights to direct the relevant activities of a subsidiary. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. Where the Group s interest is less than 100 per cent, the interest attributable to outside shareholders is reflected in non-controlling interests (NCIs). IAS 1.10(e) IAS 1.51(a),(b), (c) IAS 1.138 (a) IAS 10.17 IAS 1.138(b) IAS 1.138(c) IAS 1.112(a) IAS 1.16 IAS 1.117(a) IAS 1.51(d), (e) IFRS 10.7 IFRS 10.B38 IFRS 10.B80 IFRS 10.B86(a) IFRS 10.B99 IFRS 10.B94 21 Good Mining (International) Limited

2A. Basis of preparation continued 2A.2 Basis of consolidation continued Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the NCIs, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. IFRS 10.B87 IFRS 10.B86(c) A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value. 2A.3 Foreign currencies The Group s consolidated financial statements are presented in US dollars, which is also the parent entity s functional currency and the Group s presentation currency. The Group does not have any foreign operations. Transactions in foreign currencies are initially recorded by each entity in the Group at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. All differences are taken to the statement of profit or loss and other comprehensive income. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. IFRS 10.B96 IFRS 10.B98 IFRS 10.B99 IAS 1.51(d) IAS 21.21 IAS 21.23(a) IAS 21.28 IAS 21.23(b) IAS 21.23(c) Significant judgement The functional currency for the parent entity, each of its subsidiaries and joint ventures, is the currency of the primary economic environment in which the entity operates. The parent entity has determined the functional currency of each entity is the US dollar. Determination of functional currency may involve certain judgements to determine the primary economic environment and the parent entity reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary economic environment. Many mining businesses have found that determining the functional currency of their operations is complicated. Determining the functional currency correctly is important because it will, for example: (1) affect volatility of revenue and operating profit resulting from exchange rate movements; (2) determine whether transactions can be hedged or not; (3) influence the identification of embedded currency derivatives; and (4) may give rise to temporary differences that affect profit or loss. While under IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity may select any presentation currency, it does not have a free choice in determining its functional currency. Instead, IAS 21 requires an entity to consider the following factors in determining its functional currency: a) The currency that mainly influences sales prices for goods and services (this will often be the currency in which sales prices for its goods and services are denominated and settled) b) The currency of the country whose competitive forces and regulations mainly determine the sales prices of its goods and services c) The currency that mainly influences labour, material and other costs of providing goods or services (this will often be the currency in which such costs are denominated and settled) While the currency referred to in (a) above will often be the currency in which sales prices for its goods and services are denominated and settled, this is not always the case. In the mining sector, the US dollar is often used as the contract or settlement currency in transactions (e.g., iron ore), but the pricing of transactions is often driven by factors unrelated to the US dollar (e.g., demand from China). When this is the case, management may conclude that the US dollar is not the currency that mainly influences the sales price. In the mining sector, which is international in nature, it is often difficult to determine the currency of the country whose competitive forces and regulations mainly determine the sales prices of its goods and services. Therefore, (b) above will often prove to be inconclusive when a particular mineral is mined in many different countries. IAS 21.9 Good Mining (International) Limited 22