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Delrand Resources Limited - Interim Condensed Consolidated Financial Statements (unaudited) September 30, 2015

Release Date: 01/12/2015 11:50:00      Code(s): DRN     
Delrand Resources Limited
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: DRN ISIN Number: CA2472672062
(?Delrand? or the "Company")


INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
September 30, 2015
(Expressed in Canadian dollars)

NOTICE TO READER

These interim condensed consolidated financial statements of Delrand Resources Limited (the ?Company?) as at
and for the three months ended September 30, 2015 have been prepared by and are the responsibility of the
Company?s management. These interim condensed consolidated financial statements have not been audited or
reviewed by the Company?s auditors.


Delrand Resources Limited
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2015
Contents
Interim Condensed Consolidated Statements of Financial Position.....................................................5
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss............................................6
Interim Condensed Consolidated Statements of Changes in Equity......................................................7
Interim Condensed Consolidated Statements of Cash Flow..............................................................8
Notes to the Interim Condensed Consolidated Financial Statements....................................................9



1. Corporate Information and Continuation of the Business ..........................................................8
2. Basis of Preparation ............................................................................................8
3. Subsidiary and Investment in Associate ..........................................................................9
4. Exploration and Evaluation Assets ............................................................................. 10
5. Accounts Payable and Accrued Liabilities ...................................................................... 10
6. Related Party Transactions .................................................................................... 10
7. Share Capital ................................................................................................. 11
8. Share-Based Payments .......................................................................................... 12
9. Segmented Reporting ........................................................................................... 12
10. Financial Risk Management Objectives and Policies ............................................................ 13
11. Commitments and Contingencies................................................................................. 16

Delrand Resources Limited
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian dollars) (unaudited)
                                                          Notes               September 30, 2015              June 30, 2015
                                                                                      $                              $
 Assets
 Current Assets
     Cash                                                                                 23,093                      9,163
     Due from related parties                               6                              1,125                          -
     Prepaid expenses and other assets                                                    25,336                     24,968
 Total Current Assets                                                                     49,554                     34,131

 Non-Current Assets
     Exploration and evaluation                             4                                  -                          -
 Total Non-Current Assets                                                                      -                          -

 Total Assets                                                                             49,554                     34,131

 Liabilities and Shareholders' Equity
 Current Liabilities
     Accounts payable and accrued liabilities               5                          1,758,432                  1,750,913
     Income taxes payable                                                                  5,420                      5,420
     Due to related parties                                 6                            782,992                    665,726
 Total Current Liabilities                                                             2,546,844                  2,422,059

 Shareholders' Equity
     Share capital                                          7                        117,345,802                117,345,802
     Contributed surplus                                                               8,183,615                  8,183,615
     Deficit                                                                        (128,026,707)              (127,917,345)
 Total Shareholders' Equity/(Deficiency)                                              (2,497,290)                (2,387,928)
 Total Liabilities and Shareholders' Equity                                               49,554                     34,131

 Continuation of Business                                   1
 Commitments and Contingencies                              11

 Common shares
    Authorized (Note 7a)                                                               Unlimited                 Unlimited
    Issued and outstanding                                                            21,781,581                21,781,581


The accompanying notes are an integral part of these interim condensed consolidated financial statements.

Delrand Resources Limited
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Expressed in Canadian dollars) (unaudited)
                                                                        Notes        Three months ended              Three months ended
                                                                                     September 30, 2015              September 30, 2014
   
                                                                                                $                            $
 Expenses
       Consulting and professional fees                                                          69,522                         519,688
       General and administrative                                                                23,105                          57,186
     Foreign exchange loss                                                                       16,735                       (3,360.00)
 Total expenses                                                                                (109,362)                       (573,514)


 Net loss and comprehensive loss                                                               (109,362                        (573,514)




 Basic and diluted loss per share                                         7c                      (0.01)                         (0.03)
 Headline loss per share                                                  7c                      (0.01                          (0.03)
 Weighted average number of common shares outstanding                                        21,781,581                     21,656,581

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

Delrand Resources Limited
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
 (Expressed in Canadian dollars) (unaudited)


                                                           Common shares                                                                 Total
                                                   Number of                                 Contributed                         Shareholders'
                                       Notes                                                                       Deficit              equity
                                                     shares               Amount               Surplus                          
                                                    (Note 7)
                                                                              $                     $                $               $
Balance at June 30, 2014                           21,281,581             117,128,346            8,159,644      (123,542,174)     1,745,816


Net loss                                                    -                       -                    -          (573,514)      (573,514)
Share issuance (net of
                                         7a           500,000                 217,456               23,971                 -        241,427
costs)
Balance at September 30,
                                                   21,781,581             117,345,802            8,183,615      (124,115,688)     1,413,729
2014


Net loss                                                    -                       -                    -        (3,801,657)    (3,801,657)
Share issuance (net of
                                         7a                 -                       -                    -                 -              -
costs)
Balance at June 30, 2015                           21,781,581             117,345,802            8,183,615      (127,917,345)    (2,387,928)


Net loss                                 7a                 -                       -                    -          (109,362)      (109,362)
Balance at September 30, 2015                      21,781,581             117,345,802            8,183,615      (128,026,707)    (2,497,290)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

Delrand Resources Limited
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in Canadian dollars) (unaudited)


                                                                                       Three months               Three months
                                                                                     ended September            ended September
                                                                         Notes           30, 2015                   30, 2014
                                                                                             $                          $


 Cash flows from operating activities
 Net loss                                                                                   (109,362)               (573,514)

 Adjustments to reconcile net loss to net cash used
 in operating activities
 Changes in non-cash working capital
       Prepaid expenses and other assets                                                        (368)                 (1,985)
       Accounts payable and accrued liabilities                                                7,519                 403,584
 Net cash used in operating activities                                                      (102,211)               (171,915)


 Cash flows from investing activities
 Expenditures on exploration and evaluation                                 4                      -                  (4,368)
 Net cash used in investing activities                                                             -                  (4,368)


 Cash flows from financing activities
 Net proceeds from issuance of shares                                      7a                      -                 241,427
 Due from related parties                                                   6                      -                    (224)
 Due to/(from) related parties                                              6                116,141                 (22,489)
 Net cash provided by financing activities                                                   116,141                 218,714


 Net increase in cash during the period                                                       13,930                  42,431
 Cash, beginning of the period                                                                 9,163                  31,559
 Cash, end of the period                                                                      23,093                  73,990

The accompanying notes are an integral part of these interim condensed consolidated financial statements.


Delrand Resources Limited
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended September 30, 2015
(Expressed in Canadian dollars) (unaudited)
1. CORPORATE INFORMATION AND CONTINUATION OF THE BUSINESS
Corporate Information

The principal business of Delrand Resources Limited (?Delrand? or the ?Company?) is the acquisition and exploration of
mineral properties in the Democratic Republic of the Congo (?the DRC?).

These interim condensed consolidated financial statements as at and for the three months ended September 30, 2015 include
the accounts of the Company and of its wholly-owned subsidiary incorporated in the DRC, Delrand Resources Congo SPRL.

The Company is a publicly traded company whose outstanding common shares were listed for trading on the Toronto Stock
Exchange (?TSX?) and are listed for trading on the JSE Limited in Johannesburg, South Africa. On September 11, 2015, the
Company voluntarily delisted its common shares from the TSX and on September 14, 2015 the Company?s common shares
began trading on NEX, a separate board of the TSX Venture Exchange. The head office of the Company is located at 1 First
Canadian Place, 100 King Street West, Suite 7070, Toronto, Ontario, M5X 1E3, Canada.


Continuation of the business

The Company incurred a net loss of $109,362 for the three months period ended September 30, 2015 (three month September
30, 2014: $573,514) and as at September 30, 2015 had a working capital deficit of $2,497,290 and deficit of $128,026,707,
(June 30, 2015: $2,387,928 and $127,917,345 respectively). The Company does not currently have revenue-generating
properties.

The Company's ability to continue operations in the normal course of business is dependent on several factors, including its
ability to secure additional funding. These material uncertainties may cast significant doubt upon the validity of the going
concern assumption. Management is exploring all available options to secure additional funding, including equity financing
and strategic partnerships. In the event the Company is unable to identify recoverable resources, receive the necessary
permitting, or arrange appropriate financing, the carrying value of the Company's assets could be subject to material
adjustment.   During the year ended June 30, 2015, the Company wrote off the carrying value of its exploration and
evaluation assets.

These consolidated financial statements do not include any additional adjustments to the recoverability and classification of
certain recorded asset amounts, classification of certain liabilities and changes to the statements of loss and comprehensive
loss that might be necessary if the Company was unable to continue as a going concern.

2. BASIS OF PREPARATION
a) Statement of compliance
    These interim condensed consolidated financial statements as at and for the three month period ended September 30,
    2015, including comparatives, have been prepared in accordance with International Accounting Standards (?IAS?) 34
    'Interim Financial Reporting' (?IAS 34?) using accounting policies consistent with the International Financial Reporting
    Standards (?IFRS?) issued by the International Accounting Standards Board (?IASB?). Accordingly, certain information and
    footnote disclosure normally included in the annual financial statements prepared in accordance with IFRS, have been
    omitted or condensed.


b) Basis of measurement
    These interim condensed consolidated financial statements have been prepared under the historical cost convention,
    except for certain financial assets which are presented at fair value.


Delrand Resources Limited
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended September 30, 2015
(Expressed in Canadian dollars) (unaudited)

c) Summary of significant accounting policies
   These interim condensed consolidated financial statements have been prepared using the same accounting policies and
   methods of computation as presented in Note 3 of the annual consolidated financial statements of the Company as at
   and for the year ended June 30, 2015, except for those newly adopted accounting standards noted below.

   The Company has applied the following new and revised IFRSs in these interim condensed consolidated financial
   statements: IFRS 8 Operating Segments (amendment) and IAS 24 Related Parties Disclosures (Amendments). The adoption
   of these revised standards and interpretations did not have a significant impact on the Company's interim condensed
   financial statements.

d) Use of estimates and judgments
   The preparation of these interim condensed consolidated financial statements in conformity with IFRS as issued by the
   IASB requires management to make judgments, estimates and assumptions that affect the application of accounting
   policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
   estimates.

e) Accounting Standards Issued But Not Yet Effective

   Certain pronouncements were issued by the IASB or the IFRIC that are mandatory for accounting periods on or after
   January 1, 2015 or later periods. Many are not applicable or do not have a significant impact to the Company and have
   been excluded. The following have not yet been adopted and are being evaluated to determine their impact on the
   Company.

   IFRS 9 ? Financial Instruments (?IFRS 9?) was issued by the IASB in November 2009 with additions in October 2010 and
   May 2013 and will replace IAS 39 Financial Instruments: Recognition and Measurement (?IAS 39?). IFRS 9 uses a single
   approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules
   in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its
   business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39
   for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9, except that an
   entity choosing to measure a financial liability at fair value will present the portion of any change in its fair value due to
   changes in the entity's own credit risk in other comprehensive income, rather than within profit or loss. The new
   standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. IFRS
   9 is effective for annual periods beginning on or after January 1, 2018. Earlier adoption is permitted.

   IAS 1 ? Presentation of Financial Statements (?IAS 1?) was amended in December 2014 in order to clarify, among other
   things, that information should not be obscured by aggregating or by providing immaterial information, that materiality
   consideration apply to all parts of the financial statements and that even when a standard requires a specific disclosure,
   materiality considerations do apply. The amendments are effective for annual periods beginning on or after January 1,
   2016. Earlier adoption permitted.

   IAS 27 ? Separate Financial Statements (?IAS 27?) was amended in August 2014 to reinstate the equity method as an
   accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial
   statements. The amendments are effective for annual periods beginning on or after January 1, 2016. Earlier adoption
   permitted.

3. SUBSIDIARY AND INVESTMENT IN ASSOCIATE
   The table below sets out certain information in respect of the Company's DRC subsidiary:

                                                                         Proportion of Ownership
Name of Subsidiary                      Place of Incorporation                   Interest                      Business
BRC DiamondCore Congo SPRL           Democratic Republic of Congo                  100%                   Mineral Exploration


Delrand Resources Limited
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended September 30, 2015
(Expressed in Canadian dollars) (unaudited)

4. EXPLORATION AND EVALUATION ASSETS
The following table summarizes the Company?s tangible exploration and evaluation expenditures with respect to the
properties in the DRC:

                                                                          Tshikapa         Northern DRC
                                                           Notes                                                  Total
                                                                           Project            Project
Cost                                                                        (a) $               (b) $               $
Balance as at June 30, 2014                                                     -           2,331,238         2,331,238
  Additions                                                                     -              22,077            22,077
  Impairment                                                                               (2,353,315)       (2,353,315)
Balance as at June 30, 2015                                                     -                   -                 -
  Additions                                                                     -                   -                 -
  Impairment                                                                    -                   -                 -
Balance as at September 30, 2015                                                -                   -                 -

    a.   Tshikapa Project
         The Tshikapa project is located in the south-western part of the Kasai Occidental province of the DRC near the town
         of Tshikapa. The Company had focused its attention on the Tshikapa triangle through six exploration permits,
         covering an area of 1,043km?, held through an option agreement with the permit holder Acacia SPRL. Acacia SPRL
         had advised the Company of its wish to modify the option agreement. As a result of not being able to resolve this
         situation with Acacia (i.e. Acacia's wish to modify the option agreement) over an extended period of time, during
         the year ended June 30, 2014, the Company recorded an impairment loss of $3,115,554 with respect to this project.

    b.   Northern DRC Project
         The Northern DRC Project is located in Orientale Province of the DRC and had consisted of four exploration permits,
         two of which were held by the Company directly through its DRC subsidiary and the balance of which were held
         through an option agreement with the holder of the permits. During the year ended June 30, 2015, based on
         exploration results these four exploration permits were relinquished by the Company and the Company recorded an
         impairment loss of $2,353,315 with respect to the Northern DRC Project.

5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities are mainly comprised of amounts outstanding for purchases relating to exploration
activities and amounts payable for professional services and other general and administrative services. The credit period for
purchases typically ranges from 30 to 90 days.


6. RELATED PARTY TRANSACTIONS
    a)   Key Management Remuneration

The Company's related parties include key management. Key management includes executive directors and non-executive
directors. The remuneration of the key management of the Company as defined above, during the three month periods
ended September 30, 2015 and 2014 was as follows:


                  Three months ended                        Three months ended
                  September 30, 2015                        September 30 , 2014

 Salaries                   $ 25,000                                  $ 35,000
                            $ 25,000                                  $ 35,000

Delrand Resources Limited
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended September 30, 2015
(Expressed in Canadian dollars) (unaudited)

      b)    Other Related Parties

As at September 30, 2015, an amount of $687,681 (June 30, 2015 - $568,764) was owing to current directors and a former
director of the Company representing advances and consulting fees.

As at September 30, 2015, an amount of $94,527 was owed to Banro Corporation (?Banro?) related to shared expenses (June
30, 2015 - $93,928 was owed by Banro). Banro owns 1,538,998 common shares of the Company, representing a 7.07% interest
in the Company, and has a director in common with the Company.

As at September 30, 2015, an amount of $784 (June 30, 2015 - $3,033) was owed to Loncor Resources Inc., a corporation with
common directors, related to shared expenses.

As at September 30, 2015, an amount of $1,125 (June 30, 2015 - $nil) was owed from Gentor Resources Inc., a corporation
with common directors, related to shared expenses.

                                September 30, 2015     June 30, 2015
                                         $                     $
Due from related parties                     1,125                 -
Due to related parties                     782,992           665,726

All amounts due to/from related parties are unsecured, non-interest bearing and due on demand.

7. SHARE CAPITAL
a)    Authorized
      The Company's authorized share capital consists of an unlimited number of common shares with no par value.

      The holders of the common shares are entitled to receive notice of and to attend all meetings of the shareholders of the
      Company and shall have one vote for each common share held at all meetings of the shareholders of the Company. The
      holders of the common shares are entitled to (a) receive any dividends as and when declared by the Board of Directors,
      out of the assets of the Company properly applicable to the payment of dividends, in such amount and in such form as
      the board of directors may from time to time determine, and (b) receive the remaining property of the Company in the
      event of any liquidation, dissolution or winding-up of the Company.

      In July 2014, the Company closed a non-brokered arm?s length private placement of 500,000 units of the Company at a
      price of $0.50 per unit for gross proceeds to the Company of $250,000. Each such unit was comprised of one common
      share of the Company and one-half of one warrant of the Company, with each full warrant entitling the holder to
      purchase one common share of the Company at a price of $0.75 for a period of two years.



                                        Number of shares                 Amount


Balance at June 30, 2014                       21,281,581       $   117,128,346
Shares issued for:
     Cash                                         500,000               217,456
Balance at June 30, 2015                       21,781,581       $   117,345,802


Shares issued for:
     Cash                                               -                     -
Balance at September 30, 2015                  21,781,581       $   117,345,802

Delrand Resources Limited
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended September 30, 2015
(Expressed in Canadian dollars) (unaudited)

b)    Share purchase warrants
      In July 2014, the Company issued 250,000 warrants, with each such warrant entitling the holder to purchase one common
      share of the Company at a price of $0.75 until July 2016. As at September 30, 2015, all 250,000 warrants were
      outstanding.

c)    Loss per share
      Loss per share was calculated on the basis of the weighted average number of common shares outstanding for the three
      month period ended September 30, 2015, amounting to 21,781,581 (three month period ended September 30, 2014:
      21,120,325) common shares. Diluted loss per share was calculated using the treasury stock method. For the three month
      September 30, 2015, total stock options of nil (three month period ended September 30, 2014: nil) and warrants of
      250,000 (three month period ended September 30, 2014: nil) were excluded from the calculation of diluted loss per
      share as their effect would have been anti-dilutive. Items that are adjusted in the reconciliation to be excluded from the
      Company's headline loss per share are impairment of exploration and evaluation assets.

                                                   Three months ended                            Three months ended
                                                   September 30, 2015                            September 30, 2014


Loss for the period                                          (109,362)                                     (573,514)
     Adjustments for headline loss                                  -                                             -
Headline loss for the period                                 (109,362)                                     (573,514)

Basic and diluted loss per share                                (0.01)                                        (0.03)
Headline loss per share                                         (0.01)                                        (0.03)


8. SHARE-BASED PAYMENTS
      The Company has a stock option plan (the ?Plan?), pursuant to which non-transferable options to purchase common
      shares of the Company may be granted by the Company?s Board of Directors to any director, officer, employee or
      consultant of the Company or any subsidiary of the Company. The Plan contains provisions providing that the term of an
      option may not be longer than ten years and the exercise price of an option shall not be lower than the last closing price
      of the Company's shares on NEX prior to the date the stock option is granted. The total number of common shares of the
      Company issuable upon the exercise of all outstanding stock options granted under the Plan shall not at any time exceed
      12% of the total number of outstanding common shares of the Company, from time to time.

      As at September 30, 2015 and September 30, 2014, the Company had no stock options outstanding.

      The estimated fair value at grant date of stock options is determined using a Black-Scholes option pricing model that
      takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and
      expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term
      of the option. The contractual life of all options on the date of grant is 5 years.

      The expected price volatility is based on the historic volatility (based on the remaining life of the options), adjusted for
      any expected changes to future volatility due to publicly available information.


9. SEGMENTED REPORTING
The Company has one operating segment: the acquisition, exploration and development of mineral properties located in the
DRC. The operations of the Company are located in two geographic locations, Canada and the DRC. Geographic segmentation
of non-current assets is as follows:

 As at September 30, 2015

                              Exploration and evaluation         Total Non-current Assets

 DRC                                                   -                                -

 Canada                                                -                                -
                                                      $0                               $0


 As at June 30, 2015

                              Exploration and evaluation         Total Non-current Assets

 DRC                                                   -                                -

 Canada                                                -                                -
                                                      $0                               $0



10. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
a)   Fair value of financial assets and liabilities

     The consolidated statements of financial position carrying amounts for cash, prepaid expenses and other assets and
     accounts payable and accrued liabilities approximate fair value due to their short-term nature. Due to the use of
     subjective judgments and uncertainties in the determination of fair values, these values should not be interpreted as
     being realizable in an immediate settlement of the financial instruments.

     Fair value hierarchy
     The following provides a description of financial instruments that are measured subsequent to initial recognition at fair
     value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

     -   Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
         assets or liabilities;

     -   Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that
         are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

     -   Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or
         liability that are not based on observable market data (unobservable inputs).

     There were no transfers between Level 1 and Level 2 during the reporting periods. The fair values of financial assets and
     liabilities carried at amortized cost are approximated by their carrying values. Cash is ranked Level 2 as it is based on
     similar loans in the market.

b) Risk Management Policies

     The Company is sensitive to changes in commodity prices and foreign-exchange. The Company's Board of Directors has
     overall responsibility for the establishment and oversight of the Company?s risk management framework. Although the
     Company has the ability to address its price-related exposures through the use of options, futures and forward contacts,
     it does not generally enter into such arrangements.

c) Foreign Currency Risk

    Foreign currency risk is the risk that a variation in exchange rates between the Canadian dollar and United States dollar
    or other foreign currencies will affect the Company's operations and financial results. A portion of the Company's
    transactions are denominated in United States dollars, Congolese francs and South African rand. The Company is also
    exposed to the impact of currency fluctuations on its monetary assets and liabilities. The Company's functional currency
    is the Canadian dollar. The majority of major expenditures are transacted in US dollars. The Company maintains the
    majority of its cash in Canadian dollars but it does hold balances in US dollars and South African Rand. Significant
    foreign exchange gains or losses are reflected as a separate component of the consolidated statement of comprehensive
    loss. The Company does not use derivative instruments to reduce its exposure to foreign currency risk.

    The following table indicates the impact of foreign currency exchange risk on net working capital as at September 30,
    2015. The table below also provides a sensitivity analysis of a 10 percent strengthening of the Canadian dollar against
    foreign currencies as identified which would have increased (decreased) the Company's net loss by the amounts shown in
    the table below. A 10 percent weakening of the Canadian dollar against the same foreign currencies would have had the
    equal but opposite effect as at September 30, 2015.

                                                                  U.S. dollar                      South African rand
                                                                       $                                   ZAR

Cash                                                                    4,831                                    (29)
Prepaids and other assets                                                   -                                      -

Accounts payable and accrued liabilities                              (17,620)                              (551,041)

Total foreign currency financial assets and
                                                                      (12,790)                              (551,069)
liabilities

Foreign exchange rate at September 30, 2015                            1.3394                                 0.0969


Total foreign currency financial assets and
                                                                      (17,130)                               (53,415)
liabilities in CDN $


Impact of a 10% strengthening or weakening 
                                                                       (1,713)                                (5,342)
of the CDN $ on net loss


d) Credit Risk

    Financial instruments which are potentially subject to credit risk for the Company consist primarily of cash. Cash is
    maintained with several financial institutions of reputable credit in Canada, the DRC and South Africa and may be
    redeemed upon demand. It is therefore the Company's opinion that such credit risk is subject to normal industry risks
    and is considered minimal.

e) Liquidity Risk

    Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
    Company attempts to ensure that there is sufficient cash to meet its liabilities when they are due and manages this risk
    by regularly evaluating its liquid financial resources to fund current and long-term obligations and to meet its capital
    commitments in a cost-effective manner. The key to success in managing liquidity is the degree of certainty in the cash
    flow projections. If future cash flows are fairly uncertain, the liquidity risk increases. The Company's liquidity
    requirements are met through a variety of sources, including cash, and equity capital markets. In light of market
    conditions, the Company initiated a series of measures to bring its spending in line with the projected cash flows from its
    operations and available project specific facilities in order to preserve its financial position and maintain its liquidity
    position. As at September 30, 2015, accounts payable and accrued liabilities of $1,758,432 and amounts due to related
    parties of $782,992 are due within one year and represent all significant contractual commitments, obligations, and
    interest and principal repayments on financial liabilities. Please refer to Note 1, Continuation of the Business.

f) Mineral Property Risk

   The Company's activities in the DRC are exposed to various levels of political risk and uncertainties, including political
   and economic instability, government regulations relating to exploration and mining, military repression and civil
   disorder, all or any of which may have a material adverse impact on the Company's activities or may result in
   impairment in or loss of part or all of the Company's assets.

g) Market Risk

   Market risk is the potential for financial loss from adverse changes in underlying market factors, including foreign-
   exchange rates, commodity prices, interest rates and stock based compensation costs.

h) Interest rate risk

   Interest rate risk is the potential impact on any Company earnings due to changes in bank lending rates and short-term
   deposit rates. The Company is not exposed to significant interest rate risk other than cash flow interest rate risk on its
   cash. The Company does not use derivative instruments to reduce its exposure to interest rate risk. A fluctuation of
   interest rates of 1% would not affect significantly the fair value of cash.

i) Country risk

   The DRC is a developing country and as such, the Company's activities in the DRC could be adversely affected by
   uncertain political or economic environments, war, civil or other disturbances, and a changing fiscal regime and by DRC?s
   underdeveloped industrial and economic infrastructure.

   The Company's activities in the DRC may be affected by economic pressures on the DRC. Any changes to regulations or
   shifts in political attitudes are beyond the control of the Company and may adversely affect its business. Operations may
   be affected in varying degrees by factors such as DRC government regulations with respect to foreign currency conversion,
   production, price controls, export controls, income taxes or reinvestment credits, expropriation of property,
   environmental legislation, land use, water use and mine safety.

   There can be no assurance that policies towards foreign investment and profit repatriation will continue or that a change
   in economic conditions will not result in a change in the policies of the DRC government or the imposition of more
   stringent foreign investment restrictions. Such changes cannot be accurately predicted.

j) Capital Management

   The Company manages its cash, common shares, warrants and any stock options as capital. The Company's main
   objectives when managing its capital are:

        - to maintain a flexible capital structure which optimizes the cost of capital at acceptable risk while providing an
          appropriate return to its shareholders;

        - to maintain a sufficient capital base so as to maintain investor, creditor and market confidence and to sustain
          future development of the business;

        - to safeguard the Company's ability to obtain financing; and

        - to maintain financial flexibility in order to have access to capital in the event of future acquisitions.

   The Company manages its capital structure and makes adjustments to it in accordance with the objectives stated above,
   as well as responds to changes in economic conditions and the risk characteristics of the underlying assets.

   There were no significant changes to the Company's approach to capital management during the three month September
   30, 2015.

   Neither the Company nor its subsidiary is subject to externally imposed capital requirements.

Delrand Resources Limited
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of and for the three months ended September 30, 2015
(Expressed in Canadian dollars) (unaudited)

                              As at                          As at
                        September 30, 2015               June 30, 2015


 Cash                      $        23,093             $         9,163

 Share capital             $   117,345,802               $ 117,345,802

 Deficit                  $   (128,026,707)             $ (127,917,345)

 Contributed surplus       $     8,183,615              $    8,183,615




11. COMMITMENTS AND CONTINGENCIES

The Company and its subsidiary are subject to routine legal proceedings and tax audits. The Company does not believe that
the outcome of any of these matters, individually or in aggregate, would have a material adverse effect on its consolidated
losses, cash flow or financial position.


1 December 2015

Sponsor
Arbor Capital Sponsors Proprietary Limited



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