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TAW - Tawana - Interim Financial Report For The Half-Year Ended 30 June 2007

Release Date: 12/09/2007 09:49
Code(s): TAW
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TAW - Tawana - Interim Financial Report For The Half-Year Ended 30 June 2007 Tawana Resources NL (Incorporated in Australia) Registration number ACN 085 166 721 Share Code on the JSE Limited : TAW ISIN: AU000000TAW7 Share Code on the Australian Stock Exchange: TAW & ISIN: AU000000TAW7 ("Tawana" or "the company") ABN 69 085 166 721 Interim Financial Report for the half-year ended 30 June 2007 CONTENTS Page Corporate directory 2 Directors` report 3 Auditor`s independence declaration 9 Interim financial report Consolidated income statement 10 Consolidated balance sheet 11 Consolidated statement of recognised income and 12 expenses Consolidated cash flow statement 13 Notes to the consolidated financial statements 14 Directors` declaration 19 Independent auditor`s review report to the members 20 This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2006 and any public announcements made by Tawana Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. CORPORATE DIRECTORY DIRECTORS Brian Phillips (Non-Executive Chairman) Wolfgang Marx (Managing Director) Euan Luff (Non-Executive Director) COMPANY SECRETARY Edward Derrick Ehmke REGISTERED OFFICE 60 Wilson Street South Yarra Melbourne Vic 3141 Telephone: (03) 9863 5222 Facsimile: (03) 9863 5288 Email: wolf.marx@tawana.com.au Website www.tawana.com.au AUDITORS PricewaterhouseCoopers G.P.O.Box 1331L Melbourne, Victoria, 3001 SHARE REGISTRY Computershare Investor Services Pty Ltd Yarra Falls 452 Johnston Street Abbotsford, Victoria, 3067 STOCK EXCHANGE LISTING Home Exchange is the Australian Stock Exchange Secondary Listing is on the Johannesburg Stock Exchange ASX/JSE Code: Shares TAW ASX/JSE Code: Options TAWO Directors` report The Directors of Tawana Resources N.L submit herewith the interim financial report for the half-year ended 30 June 2007. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows: Directors Details of the Directors of the company in office at any time during or since the end of the half year and at the date of this report are: Wolfgang Marx Brian Phillips Euan Luff Review of operations The company continued with its active exploration program, concentrating on diamond exploration and evaluation. A summary of the major activities are as follows: Projects in South Africa KAREEVLEI WES PROJECT, KIMBERLEY REGION, SOUTH AFRICA (Operated by Tawana; 74% owned by Tawana and 26% owned by Seven Falls) In April 2007 the Company was granted a new order Mining Right over the Project by the Department of Minerals and Energy. Tawana has re-located its 25tph dense media separation plant (DMS) to Kareevlei Wes and construction of the plant and infrastructure was nearing completion in August 2007. The Company is planing to excavate 10,000 tonnes of material from each of the KV1 and KV2 kimberlites and process this material in the DMS on site. The aim of this trial mining program is to define a JORC compliant resource for the two kimberlites. RIVERTON KIMBERLITE PROJECT, KIMBERLEY REGION, SOUTH AFRICA (Operated by Tawana; Tawana earning 70%,Taormina Mining (Pty) Ltd diluting to 30%) The Company entered into a joint venture with Taormina Mining (Pty) Limited ("Taormina"), an unlisted South African company, to prospect and evaluate a kimberlite situated 25 km north of Kimberley, South Africa. During July 2007 the Company re-located its 10tph DMS plant to Riverton for the 2000 tonne bulk sampling program. Excavation of material from the kimberlite commenced in August 2007 and on 3 September the Company announced that larger than expected diamonds had been recovered during the first week of processing of the initial bulk sample collected. The announcement stated that 18 diamonds weighing 9.07 carats had been recovered, which included a 3.12ct pale yellow diamond, a 1.31ct diamond and a 1.08ct diamond. The average size of the diamonds was 0.50 carats, an unusually large average size for diamonds from a kimberlite. The diamonds were recovered from 232 tonnes of kimberlite which had been partially processed. 70 tonnes of this sample was classified as oversize and still needed to be crushed and re-processed. The diamonds were recovered from the minus 16 mm plus 1.0 mm fractions of kimberlite sampled. The kimberlite material was processed in the Company`s DMS plant with diamond recovery by Flowsort x-ray plant and grease table. LEXSHELL PROJECT, SOUTH AFRICA (Tawana 44% and operator /Guma Resources 44%/ Lexshell 12% revenue share) The project is held under a Mining Right by Lexshell 366 Mining (Pty) Limited ("the Holder"). Tawana/Guma have jointly entered into a Contractor`s Agreement with the Holder which will enable Tawana to assess the economic potential of the deposit and if warranted mine the diamonds on behalf of the joint venture partners. Costs will be shared on a 50:50 basis with Guma. The Holder will retain a 12% share of revenue after State royalties and cost of sales. The section of the Vaal/Harts River alluvials in which this project is located is noted for the prolific production of large, high quality diamonds. Mining has taken place here for about 100 years and the area still hosts one of the largest alluvial diamond mines in the world. Tawana will commence work on the assessment of the deposit during the second half of 2007. DANIEL KIMBERLITE PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA (Operated by Tawana; 22.2% owned by Tawana, 51.8% owned by BHP Billiton and 26% owned by Seven Falls) The Daniel Kimberlite Project ("DKP") is a joint venture between Tawana, BHP Billiton and Seven Falls, and encompasses an area 30kms in radius centered on the De Beers owned Finsch Diamond Mine. Utilisation of Falcon technology has led to the identification of kimberlitic targets situated in the Lime Acres District of South Africa. Percussion drilling of some of these targets was conducted during 2004 and 2005, which resulted in the discovery of three new kimberlites (A1, A2, and A95). Following the discovery of kimberlites Al, A2 and A95, the Falcon data was reviewed, resulting in a reassessment of all of the previously identified targets and the selection of several of these for drill testing. During 2006 the accessible targets were drilled. No new kimberlites were identified but samples of drill chips collected from holes which failed to reach target depth or were considered worthy of further investigation were submitted for analysis. Kimberlitic indicator minerals were recovered from a number of these targets and these will be followed up during 2007. In early 2007 Prospecting Right Applications were submitted over additional targets. Drilling of the additional targets will be conducted when the Prospecting Rights are granted. Tawana and BHP Billiton will fund this drilling program pro rata to their respective interests in the project. CARTER BLOCK PROJECT, LIME ACRES DISTRICT, SOUTH AFRICA (Operated by Tawana; Tawana earning 40%, Kimberley Consolidated Mines Pty Ltd diluting to 60%) Tawana Resources is in joint venture with Kimberley Consolidated Mines ("KCM") to prospect and evaluate kimberlites situated in the Carter Block, close to the De Beers operating Finsch Mine, in South Africa. Tawana is able to earn 40% equity in each individual Falcon and aero- magnetic target by identifying kimberlite through drilling and conducting a bulk sampling program. Expenditure on further evaluation work will be contributed by KCM and Tawana on a pro-rata basis. Tawana will manage the project. The joint venture`s initial focus was the 14 BHP Billiton-generated Falcon targets, and four aero-magnetic survey targets. These were drill tested during July 2007 and samples of drill cuttings have been sent to the Company`s Melbourne laboratory for analyses. Results are expected in Q3 2007. TAWANA ALLUVIALS, LIME ACRES DISTRICT, SOUTH AFRICA (Tawana 70% and operator/Seven Falls 30 %) Negotiations with third parties to participate in the continuation of the economic assessment of the Eastern Gravels and Feeder Channel alluvial diamond deposits have not reached a concluded position. While several proposals have been considered, none has provided a satisfactory commercial basis for an agreement. As every drill hole and test pit within both areas resulted in diamonds being identified, the Company will continue to seek parties who are interested in testing the economics of large-scale mining. Projects in Botswana ORAPA DIAMOND PROJECT, BOTSWANA (100% owned by Tawana) In April 2007 the Company was granted a new prospecting licence over an area of approximately 57 square kilometers, covering 8 kimberlites in the Orapa kimberlite field in Botswana. Applications for this Prospecting Licence were submitted by a number of companies on a competitive basis. The Prospecting Licence is held in the name of Seolo Pty Ltd, a 100% owned Botswana registered subsidiary of Tawana. The Company plans to undertake a program of evaluation of the kimberlites which will entail detailed geophysics, trenching and drilling to establish the size of the kimberlites, followed by bulk sampling to determine the grade and diamond quality of the kimberlites. Initial indications are that the diamondiferous BK24 is in excess of 3 hectares in surface area and at least one other kimberlite has a surface area of 2 hectares. No previous bulk sampling has been conducted on 7 of the eight kimberlites. An initial review of available airborne geophysical data has indicated the possible presence of at least one new kimberlite in the Prospecting Licence area. Detailed ground-based geophysical surveys have been conducted over BK 19, BK20 and BK21. These surveys appear to confirm the airborne data. Drill testing of the kimberlites will be conducted during the second half of 2007. BOROLONG DIAMOND PROJECT, BOTSWANA (100% owned by Tawana) Exploration licences in the prospective north eastern part of Botswana, between the city of Francistown and the Orapa kimberlite province, were granted to Tawana during early 2004. The licences cover areas which are known to be geologically favourable for kimberlite intrusions, and which were known to include sites where kimberlitic indicator minerals had been recovered by earlier explorers. Kimberlitic indicator minerals were recovered from soil samples collected over identified targets during 2004, 2005 and 2006. Such targets were identified from existing magnetic and previous sampling data. Additional follow up sampling is planned to take place during 2007. Projects in Australia PILBARA REGIONAL EXPLORATION, WESTERN AUSTRALIA (Tawana 66.6% and operator /De Beers Australia Exploration 33.3%) Helicopter-supported regional reconnaissance and follow-up sampling within the 17 granted De Beers tenements was conducted during 2006. This program included reconnaissance stream sampling and the follow-up of anomalies generated from aeromagnetic surveys and heavy mineral anomalies from previous De Beers sampling. The 266 samples collected during the program were processed and examined in the Melbourne Laboratory. Results indicate that two new kimberlites are located in the Blacktop East area some 5km north east of the Blacktop 01 kimberlite. The kimberlitic indicator minerals recovered from the Blacktop East area display chemical signatures indicative of diamondiferous kimberlites. The Company is reviewing alternatives to progress this project. FLINDERS ISLAND/VENUS BAY PROJECTS, SOUTH AUSTRALIA (Tawana 80%, Orogenic Exploration 20%, Flinders Diamonds earning 70%) In April 2007 ASX listed Flinders Diamonds Limited (FDL), Tawana and Orogenic Exploration Pty Ltd (OEPL) executed an agreement which allows FDL to earn, over two four-year periods, a 70% interest in ELs 2927, Venus Bay, and 3200, Flinders Island. The equity can be earned in two stages, 50% for an expenditure of $1 million with Tawana and OEPL diluting to 30% and 20% respectively. Thereafter FDL has the option to earn a further 20% by spending a further $1 million on the project, with Tawana and OEPL diluting to 15% each. FDL may withdraw after spending $250,000. OEPL is free carried until a decision to mine and FDL can remain as manager during its sole contributor period. TIMBER CREEK PROJECT, NORTHERN TERRITORY (Tawana 100%) No further work has been conducted on this project. The Company has applied for a Retention Licence over the TC-01 kimberlite, which will enable Tawana to retain title over this diamond deposit until diamond prices improve sufficiently to improve the economic viability of the kimberlite. WHIRLWIND PLAINS PROJECT, NORTHERN TERRITORY (Tawana 100%) No further work has been conducted on this project and the Exploration Licence over the area has been relinquished. Half-year result The operating loss of the consolidated entity for the half year after income tax of $nil was $3,469,991 (comparative half year, income tax of $nil and operating loss $3,562,160). The directors do not recommend the payment of a dividend nor has one been recommended or paid since the end of the previous financial year. Significant transactions There were no significant transactions during the half-year. Auditor`s independence declaration In accordance with the requirements of section 307C of the Corporations Act 2001, the Auditors have provided a signed Auditor Independence Statement for 30 June 2007. This is detailed on page 12 of this report. This report is made in accordance with a resolution of the Board of Directors. Wolf Marx Director Signed at Melbourne on this 12th day of September 2007. Auditor`s Independence Declaration As lead auditor for the review of Tawana Resources N.L for the half year ended 30 June 2007, I declare that to the best of my knowledge and belief, there have been: - no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and - no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of Tawana Resources N.L and the entities it controlled during the period. Tim Goldsmith Melbourne Partner 12 September 2007 PricewaterhouseCoopers Consolidated income statement for the half-year ended 30 June 2007 Notes Half-year Half-year
2007 2006 $ $ Revenue from continuing 4 94,455 25,273 operations Other income 4 - 247,118 Corporate costs (132,018) (141,574) Depreciation (164,177) (514,340) Employee benefits expense (323,671) (233,468) Exploration expenses written (2,584,195) (2,279,442) off Foreign exchange loss - (48,083) Impairment of assets (14,844) (8,110) Finance costs (17,891) - Travel costs (56,070) (68,241) Other expenses 5 (271,580) (541,293) Loss before income tax expense (3,469,991) (3,562,160) Income tax expense - - Loss from continuing (3,469,991) (3,562,160) operations after income tax expense attributable to members of the parent Earnings per share for loss Cents Cents attributable to the ordinary equity holders of the company: Basic earnings per share (0.040) (0.051) Diluted earnings per share (0.040) (0.051) The above consolidated income statement should be read in conjunction with the accompanying notes. Consolidated balance sheet as at 30 June 2007 June December 2007 2006 $ $ ASSETS Current assets Cash and cash equivalents 1,241,351 2,655,399 Trade and other receivables 104,426 561,231 Inventories 87,455 94,181 1,433,232 3,310,811 Non-current assets Receivables 76,333 51,291 Property, plant and equipments 1,075,067 1,357,547 Exploration expenditure 9,964,238 12,037,202 11,115,638 13,460,040 Total assets 12,548,870 16,770,851 LIABILITIES Current liabilities Trade and other payables 118,196 480,664 Provisions 88,068 71,760 206,264 552,424 Non-current liabilities Provisions 47,629 51,291 47,629 51,291 Total liabilities 253,893 603,715
Net assets 12,294,977 16,167,136 EQUITY Contributed equity 32,544,335 32,544,335 Reserves (1,886,809) (1,484,642) Accumulated losses (18,362,549) (14,892,557) Total equity 12,294,977 16,167,136 The above consolidated balance sheet should be read in conjunction with the accompanying notes. Consolidated statement of recognised income and expenses for the half-year ended 30 June 2007 Notes Half-year Half-year
2007 2006 $ $ Exchange rate differences (423,365) 351,827 on translation of foreign operations Net income recognised (423,365) 351,827 directly in equity Loss for the half year (3,469,991) (3,562,160) Total recognised income and (3,893,356) (3,210,333) expense for the half year attributable to members of the parent The above consolidated statement of recognised income and expenses should be read in conjunction with the accompanying notes. Consolidated cash flow statement for the half-year ended 30 June 2007 Notes Half-year Half-year 2007 2006 $ $
Cash flows from operating activities Receipts from customers 29,564 110,083 (incl. GST) Interest received 64,891 25,573 Payments to suppliers and (608,871) (889,762) employees (incl. GST) Net cash (outflow) from (514,416) (754,106) operating activities Cash flows from investing activities Payments for exploration (511,231) (839,790) activity Proceeds from sale of 34,964 1,893,572 property plant and equipment Purchase of property, plant - & equipment Net cash inflow from (476,267) 1,053,782 investing activities Cash flows from financing activities Proceeds from the issue of - 6,800,314 shares Net cash inflow from - 6,800,314 financing activities Net increase/(decrease) in (990,683) 7,099,990 cash & cash equivalents Cash and cash equivalents at 2,655,399 1,340,481 the beginning of the half- year Effects of exchange rate (423,365) (1,758,980) changes on cash and cash equivalents Cash and cash equivalents at 1,241,351 6,681,491 the end of the half-year The above consolidated cash flow statement should be read in conjunction with the accompanying notes. Notes to the financial statements 30 June 2007 1. Basis of preparation of the half-year report This general purpose financial report for the interim half-year reporting period ended 31 December 2007 has been prepared in accordance with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001. This interim financial report does not include all the notes normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2006 and any public announcements made by Tawana Resources N.L. during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. 2. Going concern The consolidated entity has incurred a loss of $3,469,991 for the half-year ended 30 June 2007, has a net surplus of working capital of $1,226,968 and a net asset balance of $12,294,977. The interim financial report has been prepared on the basis of going concern which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The Directors believe this basis to be appropriate. The ability of the company to continue as a going concern is dependent of obtaining additional funding to finance ongoing activities, including future production, mine development and exploration activities. The budget for 2007 indicates that there are sufficient funds for all planned expenditure in the year. Management`s plan include seeking a joint venture partner to fund certain exploration projects and/or raising additional funds through equity placements. If the company is unable to implement its plans, it could be forced to cease operations. The accompanying interim financial report does not include any adjustments that might be necessary if the company is unable to continue as a going concern. 3. Segment information The economic entity operated predominantly in the mineral exploration industry in South Africa, Botswana and within Australia. Primary Reporting - Geographic Segments Australia Africa Half-Year Half-year
2007 2006 2007 2006 $ $ $ $ Operating Revenue External sales 31,272 18,022 63,183 7,251 Intersegment sales - - 113,212 138,641 Other revenue - 212,577 - 34,541 Total Segment revenue 31,272 230,599 176,395 180,433 Operating Revenue contd Eliminations Consolidated Entity
Half-year Half-Year 2007 2006 2007 2006 $ $ $ $ External sales - - 94,455 25,273 Intersegment sales (113,212) (138,641) - - Other revenue - - - 247 118 Total Segment revenue(113,212) (138,641) 94,455 272,391 Australia Africa
Half-year Half-Year $ $ $ $ 2007 2006 2007 2006 Segment Expenses Segment expenses (3,215,727) (3,033,915) (348,719) (800,636) Intersegment expenses (113,212) (138,641) - - Unallocated expenses - - - - Total Segment expense (3,328,939) (3,172,556) (348,719) (800,636) Loss before income tax (3,297,667) (2,941,957) (172,324) (620,203) Segment Expenses cont. Eliminations Consolidated Entity Half-year Half-year
2007 2006 2007 2006 $ $ $ $ Segment expenses - - (3,564,446) (3,834,551) Intersegment Expenses 113,212 138,641 - - Unallocated expenses - - - - Total Segment expense 113,212 138,641 (3,564,446)(3,834,551) Loss before income tax - - (3,469,991) (3,562,160) 4. Revenue and other income Half-year Half-year 2007 2006 $ $ Revenue from continuing operations Interest income 64,891 25,273 Laboratory income 29,564 - 94,455 25,273 Other income Profit on sale of assets - 137,035 Other - 110,083 - 247,118 5. Expenses Half-year Half-year 2007 2006 $ $ Other expenses from continuing operations Administrative costs 124,243 413,554 Auditors remuneration 49,724 28,456 Laboratory expenses 17,361 57,266 Listing fees - 1,750 Occupancy costs 76,236 40,267 Other expenses 4,016 - 271,580 541,293
6. Dividends The directors do not recommend the payment of a dividend nor has one been recommended or paid since the end of the previous financial year. 7. Equity securities issued Listed options converted Half-year Half-year 2007 2006 Options Options Balance at start of the half-year 22,344,144 21,869,144 Converted to ordinary shares - - Granted during the half-year - - Balance at end of half-year 22,344,144 21,869,144 Unlisted options granted Half-year Half-year 2007 2006 Options Options Balance at start of half- year 1,390,000 - Granted during the half-year 1,000,000 - Balance at end of half-year 2,390,000 - 8. Contingent liabilities (a) An Indemnity Guarantee of $7,500 is held by the Department of Business, Industry & Resource Development for Tawana Resources N.L for the Timber Creek Project mining tenement held in the Northern Territory. (b) Lease Commitments In order to maintain current rights of tenure to exploration tenements, the parent company is required to outlay lease rentals and to meet the minimum expenditure requirements of the Mines Departments. These obligations are subject to renegotiation upon expiry of the exploration leases or when application for a mining licence is made and are not provided for in the accounts. There is also a five year lease on the premises occupied by the parent entity at 60 Wilson Street, South Yarra, signed on 25 April 2006. 2007 2006 $ $
No later than one year 735,963 984,000 Later than one year but not 634,693 1,580,66 later than five years 7 Later than five years - - 9. Events occurring after the balance sheet date On 11 September Tawana completed a placement of five million shares at 15cents per share with attached options to institutional investors to raise $750,000. The Options are exercisable at 15cents on or before 11 September 2009. The Directors are not aware of any other matters or circumstances that have arisen subsequent to balance date that has significantly affected or may significantly affect the operations of the economic entity, the results of those operations or the state of affairs of the economic entity subsequent to the half-year ended 30 June 2007. In the directors` opinion: the financial statements and notes set out on pages 13 to 20 are in accordance with the Corporations Act 2001, including: - complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and - giving a true and fair view of the consolidated entity`s financial position as at 30 June 2007 and of its performance for the half-year ended on that date; and - there are reasonable grounds to believe that Tawana Resources N.L. will be able to pay its debts as and when they become due and payable This declaration is made in accordance with a resolution of the directors. On behalf of the directors Wolf Marx Director Signed at Melbourne on this 12th day of September 2007. Independent auditor`s review report to the members of Tawana Resources N.L Report on the half-year financial report We have reviewed the accompanying half-year financial report of Tawana Resources N.L., which comprises the balance sheet as at 30 June 2007, and the income statement, statement of recognised income and expense and cash flow statement for the half-year ended on that date, other selected explanatory notes and the directors` declaration for the Tawana Resources N.L. Group (the consolidated entity). The consolidated entity comprises Tawana Resources N.L. (the company) and the entities it controlled during the half-year. Directors` responsibility for the half-year financial report The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor`s responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review in accordance with Auditing Standards on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and faire view of the consolidated entity`s financial position as at 30 June 2007 and it performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Tawana Resources N.L., ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. For further explanation of a review, visit our website http://www.pwc.com/au/financialstatementaudit. While we considered the effectiveness of management`s internal controls over financial reporting when determine the nature and extent of our procedures, our review was not designed to provide assurance on internal controls. Our review did not involve an analysis of the prudence of business decisions made by directors or management. Independence In conducting our review, we have complied with the independence requirement of the Corporations Act 2001. Conclusion Based on our review, which is not an audit, we have not become aware of any matters that makes us believe that the half-year financial report of Tawana Resources N.L. is not in accordance with the Corporations Act 2001 including: - giving a true and fair view of the consolidated entity`s financial position at 30 June 2007 and of its performance for the half-year ended on that date, and; - Complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001. PricewaterhouseCoopers Tim Goldsmith Melbourne Partner 12 September 2007 Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd Date: 12/09/2007 09:49:35 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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