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TAW - Tawana Resources NL - Annual Financial Statements

Release Date: 31/03/2008 13:46:18      Code(s): TAW
TAW - Tawana Resources NL - Annual Financial Statements                         
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 Limited: TAW                        
ISIN: AU000000TAW7                                                              
("Tawana" or "the Company")                                                     
Annual Financial Statements                                                     
Contents                                                                        
Corporate directory                                                             
Chairman`s statement                                                            
Directors` report                                                               
Corporate governance statement                                                  
Financial report                                                                
Independent auditor`s report to the members                                     
Shareholders information                                                        
CHAIRMAN`S STATEMENT                                                            
2007 was a very busy year for Tawana and our Company achieved several           
milestones which had been eagerly awaited. Highlights were the granting of      
the Mining Right over the Kareevlei Wes Project and the granting of a           
Prospecting License over the Orapa Project in Botswana.                         
In summary, these were some of the achievements for Tawana in 2007;             
*    In April 2007, we announced that Tawana, through its 26% holding in        
Rakana Consolidated Mining (Proprietary) Limited, which is in Joint Venture     
with ASX-listed Aquila Resources Limited, now holds an interest in a suite of   
iron-ore exploration tenements granted in the name of Aquila in the Northern    
Cape and Thabazimbi areas of South Africa, strategically positioned adjacent    
to existing iron-ore mines and associated infrastructure.                       
*    Also in April 2007, we announced that Tawana had been granted a New        
Order Mining Right over the Kareevlei Wes Diamond Project. This enabled us to   
commence construction of the plant and infrastructure in preparation for        
trial mining.                                                                   
*    In May 2007, we announced that Tawana has been granted a 3 year            
prospecting license over 8 kimberlites (BK19 - BK26) in the Orapa Kimberlite    
Field in Botswana, one of the largest diamondiferous kimberlite fields in the   
world with 79 known kimberlites.                                                
*    In May 2007, we also announced a joint venture with Taormina Mining        
(Proprietary) Limited, an unlisted South African company, to prospect and       
evaluate a 4 hectare kimberlite pipe situated 25 kilometres north of            
Kimberley, South Africa.                                                        
*    In July 2007, we announced a joint venture with Kimberley Consolidated     
Mining Limited, an unlisted South African company to prospect and evaluate a    
number of anomalies of the 266 square kilometre Farm Carter Block,              
surrounding the De Beers owned Finsch Mine at Lime Acres, South Africa.  This   
agreement also entitled Tawana to participate in the 3 known kimberlites on     
the property (being the Shone, PPC and Bowden Pipes), subject to taking up      
the relevant participating interest.                                            
*    In September 2007, we announced that Tawana had acquired a 30% stake in    
the St Augustines kimberlite (via its shareholding in Vecto Trade 436           
(Proprietary) Limited) located 600 metres west of the famous Kimberley Mine     
("the Big Hole") in Kimberley, South Africa.                                    
*    In October 2007, we announced that treatment, examination and reporting    
of third-party exploration samples from South Africa had been commercially      
undertaken in the Melbourne Laboratory and that it was anticipated that more    
business of this nature would be forthcoming.                                   
*    Also in October 2007, we announced that Tawana had placed 5,300,000        
shares to institutional and sophisticated investors to raise A$795,000.         
*    In February 2008, we announced the signing of a joint venture agreement    
with Nowak Investments (Pty) Limited over the Orapa, Borolong and Moshaiwa      
projects.                                                                       
*    Also in February 2008 we announced the renounceable rights issue to        
raise $1.8million, which was completed in early April 2008.                     
The Company`s current exploration focus is on the Kareevlei Wes, Tawana         
Alluvials and St Augustines Projects in South Africa.                           
Active exploration, including trial mining is planned at Kareevlei Wes and      
drilling is planned at St Augustines and at Lexshell, while an expert review    
of proposed bulk sampling of the Tawana Alluvials will be implemented. Work     
on the Orapa Project will be conducted by our Joint Venture partner.            
Over the last 2 years, your Board has aggressively pursued the acquisition of   
an interesting array of prospects.  We have become a joint venture partner of   
choice for many similarly placed junior listed exploration companies and our    
management team is strategically positioned in the regions where we operate     
to take advantage of the opportunities that are being offered to us.            
I thank our Shareholders for their continuing support during a difficult        
period on world markets and also thank our staff for their continued loyalty    
and hard work.                                                                  
Brian Phillips                                                                  
CHAIRMAN                                                                        
DIRECTORS` REPORT                                                               
Your Directors submit their report on the consolidated entity (referred to      
hereafter as the Group) consisting of Tawana Resources N.L. and the entities    
it controlled at the end of, or during, the year ended 31 December 2007.        
DIRECTORS                                                                       
Details of the Directors of the company in office at any time during or since   
the end of the financial year and at the date of this report and their          
qualifications, experience and special responsibilities are:                    
Wolfgang Marx  Managing Director - BSc, BA, FAusIMM, CPGeo                      
              Board Member since 16 November 1998. Wolf Marx is a qualified     
geologist and has over 25 years experience in geology particularly in           
exploration for gold and diamonds. He has not held directorships of other       
listed companies in the past three years.                                       
Interest in shares - 6,248,500                                                  
Interest in options - 1,999,500                                                 
Brian Phillips Non-Executive Chairman - AWASM FAusIMM MIMMM                     
    Board Member since 4 April 2005. Brian Phillips is a qualified mining       
engineer and has over 40 years experience in the mining industry. Brian is a    
past director of The Australian Gold Council and past President of the          
Victorian Minerals and Energy Council. He is non-executive chairman of          
Indophil Resources N.L. and a non-executive director of Sally Mining Ltd. He    
is a past director of MPI Mines Ltd, past non executive chairman of Leviathan   
Resources Ltd, and past non executive director of Perseverance Corporation      
Ltd. He is a member of the Audit and Risk Management Committee and the          
Remuneration and Nomination Committee.                                          
Interest in shares - 194,800                                                    
Interest in options - 41,133                                                    
Euan Luff      Non-Executive Director - B Juris LL.B.AL.Arb.A.                  
    Board Member since 16 November 1998. Euan Luff is Senior Partner of         
Wilmoth Field and Warne, Solicitors. In his professional capacity he acts as    
a legal adviser to a number of private and public Companies. He is a member     
of the Audit and Risk Management Committee and the Remuneration and             
Nomination Committee. He has not held directorships of other listed companies   
in the past three years.                                                        
Interest in shares - 8,262,270                                                  
Interest in options - 3,021,460                                                 
COMPANY SECRETARY                                                               
Derrick Ehmke  The Company appointed Edward Derrick Ehmke as Company            
Secretary on 22 January 2007. Derrick has over 40 years business experience     
in Finance, Administration and Information Technology in South Africa,          
Australia and the United Kingdom. He is Fellow of the Institute of Corporate    
Managers, Secretaries and Administrators.                                       
              Interest in shares - Nil                                          
Interest in options - Nil                                         
MEETINGS OF DIRECTORS                                                           
During the financial year thirteen meetings of Directors were held.  The        
numbers of meetings (including meetings of Committees of Directors) attended    
by each of the Directors during the financial year were:                        
Director       Directors` Meetings                                              
No. Attended   No. Held                                                         
W. Marx        13             13                                                
B. Phillips    13             13                                                
E. Luff        13             13                                                
There were three meetings held of the Audit and Risk Management Committee,      
which were attended by all members of that committee.  There were two meeting   
of the Remuneration and Nomination Committee which all members of that          
committee attended.                                                             
PRINCIPAL ACTIVITIES                                                            
The principal activities of the Group consisted of mineral exploration,         
particularly diamond exploration.  There was no significant change in the       
nature of the activities of the Group during the year.                          
RESULT AND DIVIDEND                                                             
The operating loss of the Group for the financial year after income tax         
expense of $Nil was $7,386,000 (2006 $4,766,269) and the operating loss of      
the Company after income tax of $Nil was $9,594,713 (2006 $5,819,027).          
The Directors do not recommend the payment of a dividend (2006:Nil) nor has     
one been recommended or paid since the end of the previous financial year.      
REVIEW OF OPERATIONS                                                            
In the opinion of the Directors, the operations of the Group, likely            
developments in the operations of the Group and the expected results of those   
operations as known at the date of this report have been covered generally      
herein and in the documents attached to this report.                            
SIGNIFICANT CHANGES IN STATE OF AFFAIRS                                         
In the opinion of the Directors, the state of affairs of the Group has not      
been substantially affected by any material or unusual matter during the        
financial year other than that referred to in the financial statements or       
notes thereto.                                                                  
ENVIRONMENTAL REGULATIONS                                                       
The Group`s operations are subject to various environmental regulations under   
both Commonwealth and State Government legislation in Australia and under       
Government legislation in South Africa and Botswana. The Directors have         
complied with those regulations and are not aware of any breaches of the        
legislation during the current financial year that are material in nature.      
SUBSEQUENT EVENTS                                                               
On 28 March 2008 the company completed of a renounceable rights issue which     
raised $540,510 before estimated transaction costs of $200,000. The funds       
raised will be utilised for Tawana`s high potential exploration projects in     
Southern Africa and for corporate and other costs.                              
The directors reserve the right to place the shortfall within the next three    
months, in accordance with ASX Listing Rules.                                   
In February 2008 Tawana Resources NL signed a joint venture with Nowak          
Investments (Pty) Ltd over the Orapa, Borolong and Moshaiwa projects. This      
will enable significant further exploration in these projects at minimal cost   
to Tawana. Details of the agreement are contained in the Directors report       
under Review of Operations.                                                     
Other than the above items there have not been any matters or circumstances     
that have arisen since the end of the year that have significantly affected     
or may significantly affect the operations of the Group, the results of those   
operations, or the state of affairs of the Group in subsequent financial        
years.                                                                          
FUTURE DEVELOPMENTS                                                             
The Group will continue to concentrate on mineral exploration particularly      
diamond exploration with emphasis on the development of its existing            
projects.                                                                       
SHARE CAPITAL                                                                   
During the year the Company allotted 5,300,000 ordinary shares at 15 cents      
each, raising a total of $795,000. The funds raised were applied towards the    
costs of the issue, ongoing exploration activities of the company and to        
provide additional working capital.                                             
The number of ordinary fully paid shares on issue at 31 December 2007 was       
92,397,481.                                                                     
On 28 March 2008 a renounceable rights issue was completed.. Refer to           
subsequent events section above for further detail.                             
SHARE OPTIONS                                                                   
Unlisted Options                                                                
During the year 1,000,000 options were issued to employees and directors of     
the Company. These options were exercisable at 35 cents each on or before 30    
November 2011.                                                                  
In additional 5,300,000 unlisted options were issued to investors as part of    
the ordinary share placement.  These options are exercisable at 15 cents each   
on or before 11 September 2009.                                                 
Listed Options                                                                  
The number of listed options on issue at 31 December 2007 the exercise price    
and the expiry date of the options are as follows:                              
22,344,144 options exercisable at $1.00 each, on or before 30 April, 2008.      
The number of unissued ordinary shares under these options at the date of       
this report is 22,344,144.                                                      
No options were exercised during the year (2006: Nil).                          
MANAGEMENT REPORT- REVIEW OF OPERATIONS                                         
Background                                                                      
Tawana was incorporated as a public company on 16 November 1998 in Australia.   
Operating through its various subsidiaries, the Company is involved in the      
exploration for, and evaluation of, diamondiferous kimberlites and alluvials,   
primarily in South Africa, Botswana and Australia. The Company`s objective is   
to establish viable ore reserves and turn such projects into profitable         
operations.                                                                     
Tawana listed on ASX (as a primary listing) in April 2001 and JSE (as a         
secondary listing) in November 2005.  The Company`s head office is located in   
Melbourne, Australia.                                                           
A brief overview of Tawana`s diamond projects, which are all located in         
prospective areas, follow.                                                      
Current Status of Projects in South Africa                                      
Kareevlei Wes Project, Kimberley Region                                         
(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.                               
The Kareevlei Wes Project ("KWP") comprises a cluster of 5 kimberlitic pipes    
(KV1-KV5), which vary in surface area from a large 5.5 ha (KV3) to a small      
0.3 ha (KV4). Drilling to a depth of 100 meters showed that the tonnage of      
KV3 is 13Mt and that of KV2 is 2Mt. The surface area of KV1 has been            
determined by shallow drilling to be 1.2hectares. The key interest in this      
project relates to the generally good quality of the diamonds in the            
kimberlites.                                                                    
As a result of bulk sampling conducted by extracting 6,500 tonnes of            
kimberlite from the four largest pies, the grade of KV1 and KV2 was estimated   
to be 8.57 cpht. Subsequent statistical analyses of the diamonds suggested      
that the grade could be expected to be 11 cpht if larger parcels of diamonds    
could be produced.                                                              
The grade of KV3 is variable due to several different phases encountered in     
the top 30 - 40m as indicated by Bauer drilling. The northern 3 ha of the       
pipe is composed of an homogenous phase of kimberlite and has an estimated      
grade of 4.89cpht, based on processing the minus 6mm fraction.                  
Earlier 10.5 inch percussion drilling in the northern section of KV3 achieved   
a higher grade of 6.10cpht. This discrepancy could be due to the fact that      
the percussion drilling sampled deeper sections of the kimberlite.              
The KV5 kimberlite was sampled with two Bauer holes. The estimated grade,       
based on the minus 6mm fraction from the two holes was 3.70cpht and 8.06cpht,   
with an average grade of 5.70cpht.                                              
As previously reported (2007 Half Yearly Report) diamonds from KV1 and KV2      
were valued at US$110/ct by independent valuers. These valuers predicted        
substantially higher values for larger parcels of diamonds. This prediction     
is supported by subsequent statistical analysis of a parcel from the KV1 and    
KV2 kimberlites, which suggested that US$164/ct was a reasonable value          
estimate for diamonds from these kimberlites.                                   
Subsequently, a parcel of 33.24ct of diamonds from KV3 was valued US$170/ct.    
At the estimated operating cost of open pit kimberlite mining and processing    
in South Africa of US$7.53/t, the required breakeven grade at a diamond value   
of US$170 /ct is 4.43 cpht. Valuations and costs are 2005 figures.              
Kimberlite   Size*    Grade     Diamond       Value        Cost****             
ha       Cpht      Value***      US$/t        US$/t                 
                              US$/carat                                         
                                                                                
KV1          1.0      11**      164           18.04        7.53                 
KV2          1.2      11**      164           18.04        7.53                 
KV3          5.5      4.89-     170           8.31-10.37   7.53                 
                    6.10                                                        
KV5          2.1      5.70      N/A           NA           7.53                 
*    Based on 10.5 inch drilling to 100m for KV2 and KV3, surface percussion    
drilling for KV1 and geophysical interpretation for KV5.                        
**   Based on statistical analysis of a parcel of diamonds recovered from the   
minus 6mm fraction of material excavated by Bauer drilling. Not JORC/SAMREC     
compliant.                                                                      
***  Larger parcels of diamonds may change the given values substantially.      
**** Directors` estimated mining and operating costs (2005) of open cut         
kimberlite mines in South Africa.                                               
During 2007 the Company`s 25 tonne per hour DMS plant was relocated to          
Kareevlei and has been commissioned in preparation for the commencement of      
trial mining in 2008.                                                           
The Company considers that any tonnage and grade estimates do not satisfy the   
definition of a Mineral Resource as set out in the JORC Code as insufficient    
work has been conducted to be able to determine the grade and tonnage of the    
deposit with greater accuracy. Further work may or may not establish a          
Mineral Resource on the property.  Accordingly, the estimate of grade is made   
as provided by paragraph 18 of the JORC Code in relation to an exploration      
target or exploration potential. The diamonds were recovered from the minus     
19mm plus 1.5mm fractions of kimberlite sampled by 2.5m diameter Bauer drill    
holes. The kimberlite material was processed in a DMS plant with diamond        
recovery by a Flowsort x-ray plant and a grease table.                          
Tawana Alluvial Project, Lime Acres District, Kimberley Region                  
(Operated by Tawana; 70% owned by Tawana and 30% owned by Seven Falls (with     
BHP Billiton participating in a 2.5% gross revenue royalty))                    
The Tawana Alluvial Project area encompasses two alluvial deposits, the         
Feeder Channel and the Eastern Gravels, which extend from 300 meters from the   
De Beers owned Finsch Mine for a distance of approximately 18 kilometres from   
the mine. These deposits resulted from the discovery by Tawana during early     
exploration of targets generated by BHP Billiton.                               
During 2004/2005/2006 large volumes of alluvial material were extracted by      
percussion and large diameter Bauer drilling and processed in the Company`s     
DMS plants. Remarkably, this resulted in the recovery of diamonds from all of   
the holes drilled and the identification of zones of enrichment in the          
channels. The Eastern Gravels were also identified as hosting higher quality    
diamonds although additional exploration is needed to define minable zones.     
The proposed next stage for the Tawana Alluvial Project is a large scale        
operating trial. As a precursor to this, it is proposed to investigate the      
most effective methods to extract diamonds from the channels and to determine   
the most effective processing methods. It is proposed to contract South         
African alluvial diamond specialists to advise on the project scope and         
implementation, including the costs of conducting the operating trial.          
St. Augustines Kimberlite Project, Kimberley Region                             
(Operated by Tawana; Tawana 30% equity in Vecto Trade 436 (Pty) Ltd)            
Tawana announced on 27 September 2007 that it had acquired a 30% of the         
issued shares in Vecto Trade 436(Pty) Ltd ("Vecto") from the major              
shareholder, Galeshewe Mining Resources (Pty) Limited. In August 2007 Vecto     
was granted a New Order Prospecting Right over the St Augustines kimberlite     
located 600 metres west of the world famous Kimberley Mine or "Big Hole" in     
Kimberley, South Africa. The St Augustines mine was thought to be located in    
the northern half of the Prospecting Right due west of the Big Hole and this    
has been confirmed.                                                             
The Kimberley Mine produced 14.5 million carats of diamonds from 22.5 million   
tons at a grade of 64 carats per hundred tons. Mining ceased in 1914. The St    
Augustines kimberlite was mined in the late 1890`s and records show that the    
diamond quality was considered identical and the grade similar to that of the   
nearby Kimberley Mine. Geological records indicate that the two kimberlite      
pipes of the Kimberley Mine and St Augustines are located on the same           
structure and are connected by a kimberlite fissure.                            
Mining at St Augustines ceased in 1902. Subsequently the tailings of the        
Kimberley Mine were deposited over the St Augustines kimberlite. The removal    
of these tailings has recently exposed in-situ kimberlite at St Augustines.     
Records show that St Augustines was only partially mined to a depth of          
approximately 240 metres as compared to the Kimberley Mine which was mined to   
a depth of 1097 metres.                                                         
A non-invasive gravimetric survey conducted by Tawana in November 2007          
identified the location of the original pit of the St Augustine`s mine. Two     
new targets close to St Augustines have also been identified. The gravimetric   
survey was undertaken to confirm the exact position of the known kimberlite     
and to determine whether other kimberlites occurred in the Prospecting Right.   
The two new targets are in the southern half of the Prospecting Right and       
display similar gravity responses to that of the known St Augustines            
kimberlite.                                                                     
In January 2008, the Company was advised that De Beers Consolidated Mines       
Limited (the surface owners of the land constituting the southern half of the   
St Augustines Mine Prospecting Right) has applied for a Judicial Review and     
setting aside of the Minister of Minerals and Energy`s administrative act in    
granting the Prospecting Right, or alternatively, that portion of the           
Prospecting Right in so far as it affects the southern half of the              
Prospecting Right.                                                              
Tawana`s legal advisors in South Africa have advised that it is too early to    
express an opinion as to the merits of the application or its prospects of      
success since the Department of Minerals and Energy, which is opposing the      
application on behalf of the Minister, has as yet not replied to the            
allegations in the founding papers.                                             
Pending determination thereof, however, South African legal advisers have       
advised that the Prospecting Right remains registered and valid.  They have     
further pointed out that the original pit of the St Augustine`s mine is not     
located in the southern half of the Prospecting Right.                          
Lexshell Alluvial Project, Kimberley Region                                     
(Tawana 50% and operator / Guma Resources 50%)                                  
The project is held under a Mining Right by Lexshell 366 Mining (Pty) Limited   
("the Holder"). Tawana and Guma have 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. The Holder will retain a 12% share of revenue after State royalties   
and cost of sales.                                                              
The project is located on a palaeo-channel of the Vaal/Harts River adjacent     
to established alluvial diamond mines.                                          
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 2008.         
Riverton Kimberlite Project, Kimberley Region                                   
(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.                     
The Company`s 10 tph DMS plant was commissioned on site during the September    
quarter 2007. A total of approximately 2300 tonnes of kimberlite was            
excavated from 6 separate locations on the kimberlite, being representative     
of the different kimberlite phases or types in the pipe. The bulk-sampling      
program was designed to determine the diamond distribution in the pipe and to   
gain an understanding of the grade and diamond quality at Riverton.             
Results from the main, eastern lobe, of the pipe indicated that this section    
contains diamonds that are on average larger than diamonds recovered from       
other kimberlites in this region, but that overall the kimberlite is            
considered by Tawana to be uneconomic.                                          
Current Status of Projects in Botswana                                          
Orapa Diamond Project                                                           
(100% owned by Tawana; Nowak Investments (Pty) Limited earning 51%)             
In April 2007 the Company was granted a new prospecting licence over an area    
of approximately 57 square kilometres, 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 Orapa kimberlite field is located in north eastern Botswana, and includes   
the Orapa, Letlhakane and Damtshaa diamonds mines, which produce in excess of   
13 million carats of diamonds per year. The Orapa kimberlite field is one of    
the largest diamondiferous kimberlite fields in the world, containing 79        
known kimberlites, of which the majority has been proven to be                  
diamondiferous. Orapa is one of the largest producing kimberlites in the        
world and is 113 hectares in surface area.                                      
Drilling of the BK19 - BK26 kimberlites in the Orapa Project area in Botswana   
was completed by Tawana in November 2007. Drilling was conducted in two         
phases. The first phase was designed to sample kimberlite to a depth of 100     
metres in each of the eight kimberlites to gain an understanding of the         
geology and mineral chemistry of the pipes. This drilling phase is complete     
and the samples from the kimberlites have been transported to Tawana`s          
processing facility in Kimberley, South Africa.                                 
Kimberlitic minerals were recovered from samples of the drill cuttings and      
analysed by electron microprobe. 13% of the kimberlitic garnets from BK24       
were reported to be "G10" garnets, which signify that this kimberlite has a     
high probability of being economically diamondiferous.                          
The second drilling phase was designed to determine the surface areas of        
selected kimberlites. To date this drilling indicates that BK24 has a surface   
area of between 3.3 and 3.6 ha. The pipe has basalt breccia infill to 30        
metres depth which is thought to have caused an under-estimation of the         
diamond grade when tested to this depth by previous explorers.                  
The kimberlites BK22 and BK23 were previously thought to be two separate        
small pipes. Drilling by Tawana has shown this to be incorrect and that the     
pipes are joined subsurface to form one 2.2ha body.                             
On 19 February 2008 Tawana announced that it had signed a joint venture         
agreement with Nowak Investments (Pty) Limited over the Orapa, Borolong and     
Moshaiwa projects. Nowak is able to earn 51% interest in the projects by        
conducting and sole funding the first phase of exploration on the projects.     
At the completion of the first phase Tawana will have the option to             
participate and fund ongoing work pro-rata or to allow Nowak to continue sole   
funding exploration to completion of a bankable feasibility study to earn 70%   
interest in the project.                                                        
Borolong / Mashaiwa Diamond Project                                             
(100% owned by Tawana; Nowak Investments (Pty) Limited earning 51%)             
Exploration licenses 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       
from targets during 2004, 2005 and 2006. Targets were identified from           
existing magnetic and sampling data.  Additional follow up sampling is          
planned to take place during 2008.                                              
On 19 February 2008 Tawana announced that it had signed a joint venture         
agreement with Nowak Investments (Pty) Limited over the Orapa, Borolong and     
Moshaiwa projects. Nowak is able to earn 51% interest in the projects by        
conducting and sole funding the first phase of exploration on the projects.     
At the completion of the first phase Tawana will have the option to             
participate and fund ongoing work pro-rata or to allow Nowak to continue sole   
funding exploration to completion of a bankable feasibility study to earn 70%   
interest in the project.                                                        
Current Status of Projects in Australia                                         
Flinders Island Project, South Australia                                        
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Diamonds    
Ltd earning in)                                                                 
Flinders Island is situated 28 km west of the Eyre Peninsula of South           
Australia.                                                                      
Tawana and Orogenic entered into a joint venture agreement with Flinders        
Diamonds Limited (FDL) in April 2007 under the terms of which FDL is able to    
earn a 70% interest in the project by spending $2 million on the combined       
Flinders Island and Eyre Peninsula Projects. In the event that FDL earns 70%    
interest in the project, Tawana`s interest will reduce to 15%.                  
Eyre Peninsula Project, South Australia                                         
(80% owned by Tawana and 20% owned by Orogenic Exploration/Flinders Diamonds    
Ltd ("FDL") earning in.)                                                        
Tawana and Orogenic entered into a joint venture agreement with FDL in April    
2007 under the terms of which FDL is able to earn a 70% interest in the         
project by spending $2 million on the combined Flinders Island and Eyre         
Peninsula Projects. In the event that FDL earns 70% interest in the project,    
Tawana`s interest will reduce to 15%.                                           
Pilbara Exploration, Western Australia                                          
(Tawana 66.6%; De Beers Australia Exploration Limited 33.3%)                    
Stream sampling conducted by Tawana during 2006 resulted in the recovery of     
kimberlitic indicator minerals to the north east of the Blacktop Kimberlite.    
These indicator minerals were located in two discreet areas, which are          
considered likely to host two kimberlite fissures. In an attempt to verify      
this interpretation an airborne geophysical survey was conducted over the       
areas.                                                                          
Results of this survey are awaited.                                             
Melbourne Laboratory                                                            
During 2007 the laboratory processed the Company`s samples from the South       
African and Botswana projects and the Pilbara Exploration project in            
Australia.                                                                      
The specialised skills of the laboratory were also utilised by other South      
African and Australian companies on a commercial basis.                         
Corporate                                                                       
Fund Raising                                                                    
In September 2007 the Company placed 5,300,000 shares, each with an attached    
option, at 15 cents per shares with institutional investors to raise            
additional working capital. Each option is exercisable at 15 cents on or        
before 11 September 2011.                                                       
SCHEDULE OF MINING TENEMENTS                                                    
Mining tenements currently held by the economic entity are:                     
Location         Title Held By        %  Held by   Title                        
                                      Tawana                                    
Daniel Project,  BHP Billiton World   Various      NC30/5/1/1/088PR             
South Africa     Exploration Inc                                                
Kareevlei Wes,   Diamond Resources    74%          NC30/5/1/2/2/081MR           
South Africa     P/L                                                            
St Augustines,   Vecto Trade 436      30%          NC30/5/1/1/5/402PR           
South Africa     P/L                  (indirect)                                
Perdevlei,       Tawana Resources     74%          PP  59/2004                  
South Africa     (SA) P/L                                                       
Riverton,        Taormina Mining      Earning 70%  NC30/5/1/2/2/405PR           
South Africa     (Pty) Ltd                                                      
Lexshell,        Lexshell 366         50%          NC30/5/1/2/2/054MR           
South Africa     Mining (Pty) Ltd                                               
Pilbara          De Beers Australia   66.6%        EL47/1125                    
Exploration,     Exploration                                                    
Western          Limited                                                        
Australia                                                                       
Timber Creek,    Tawana Resources     100%         ERL 25981                    
N.T. Australia   NL                                                             
Flinders         Orogenic             80%          EL3200                       
Island, South    Exploration P/L /                                              
Australia        Tawana                                                         
Eyre Peninsula,  Orogenic             80%          EL3928                       
South Australia  Exploration P/L /                                              
                 Tawana                                                         
Flinders         Orogenic             80%          ELA06/648                    
Island, South    Exploration P/L /                                              
Australia        Tawana                                                         
Borolong/        Seolo Botswana       100%         PL 37/2003, 38/2003,         
Mashaiwa,        (Pty) Ltd                         PL 86/2007, 87/2007          
Botswana                                                                        
Orapa, Botswana  Seolo Botswana       100%         PL61/2007                    
                 (Pty) Ltd                                                      
REMUNERATION REPORT                                                             
The remuneration report is set out under the following main headings:           
A     Principles used to determine the nature and amount of remuneration        
B     Details of remuneration                                                   
C     Service agreements                                                        
D     Share-based compensation                                                  
E     Additional information                                                    
The information provided under headings A-D includes remuneration disclosures   
that are required under Accounting Standard AASB 124 Related Party              
Disclosures.  These disclosures have been transferred from the financial        
report and have been audited.  The disclosures in Section E are additional      
disclosures required by the Corporations Act 2001 and the Corporations          
Regulations 2001 which have not been audited.                                   
A  Principles used to determine the nature and amount of remuneration           
(audited)                                                                       
The Board policy for determining the nature and amount of remuneration of       
Directors and Executives is agreed by the Board of Directors as a whole. The    
Board obtains professional advice where necessary to ensure that the company    
attracts and retains talented and motivated directors and employees who can     
enhance company performance through their contributions and leadership.         
Executive Director Remuneration                                                 
In determining the level and make-up of executive remuneration, the Board       
negotiates a remuneration to reflect the market salary for a position and       
individual of comparable responsibility and experience. Remuneration is         
compared with the external market by reference to industry salary surveys and   
during recruitment activities generally. If required, the Board may engage an   
external consultant to provide independent advice in the form of a written      
report detailing market levels of remuneration for comparable executive         
roles.                                                                          
Remuneration consists of a fixed remuneration as considered appropriate.        
Non-Executive Director Remuneration                                             
Non-executive Directors` fees are paid within an aggregate limit which is       
approved by the shareholders from time to time.  Retirement payments, if any,   
are agreed to be determined in accordance with the rules set out in the         
Corporations Act at the time of the Director`s retirement or termination.       
Non-Executive Directors remuneration may include an incentive portion           
consisting of bonuses and/or options, as considered appropriate by the Board,   
which may be subject to shareholder approval in accordance with the ASX         
Listing Rules.                                                                  
The amount of aggregate remuneration sought to be approved by shareholders      
and the manner in which it is apportioned amongst Directors is reviewed         
annually. The Board considers the amount of director fees being paid by         
comparable companies with similar responsibilities and the experience of the    
non-executive directors when undertaking the annual review process.             
The current maximum amount of Non-Executive Directors fees payable is fixed     
at $100,000 in total, for each 12 month period commencing 1 January each        
year, until varied by ordinary resolution of shareholders.                      
Executive Pay                                                                   
Executive remuneration is paid according to experience and market conditions.   
Executive remuneration is reviewed annually by the Remuneration and             
Nomination Committee and recommendations made to the Board. Remuneration may    
include an incentive portion consisting of bonuses and/or options, as           
considered appropriate by the Board, which may be subject to shareholder        
approval in accordance with the ASX Listing Rules.  There is currently no       
formal bonus scheme in place.                                                   
The Board considers the amount of executive remuneration being paid by          
comparable companies with similar responsibilities and the experience of the    
executive when undertaking the annual review process.                           
B Details of Remuneration (audited)                                             
Amounts of remuneration                                                         
Details of the remuneration of the directors and the key                        
management personnel (as defined in AASB 124 Related Party                      
Disclosures) of Tawana Resources NL and the Group are set                       
out in the following tables.                                                    
The key management personnel of Tawana Resources NL                             
include the directors as per page 4 above and the                               
following executive officers, which are also the highest                        
paid executives of the group:                                                   
*    C. Bailey - General Manager South African Operations                       
*    A. Berryman - Laboratory Manager                                           
The Group has no other executives.                                              
Details of Remuneration for Year Ended 31 December 2007                         
                   Short- Term   Post            Share Based  Total             
2007                Benefits      Employment      Payment                       
Benefits                                       
                   Cash Salary   Superannuation  Options                        
                   and Fees                                                     
                   $             $               $            $                 
Executive                                                                       
Directors                                                                       
W. Marx            141,837       78,163          -            220,000           
Non-executive                                                                   
Directors                                                                       
B. Phillips         40,000        -               -            40,000           
E. Luff             37,500        -               16,058       53,558           
Sub-total           219,337       78,163          16,058       313,558          
directors                                                                       
Other Key                                                                       
Management                                                                      
Personnel                                                                       
A. Berryman         111,500       16,575          3,381        131,456          
C. Bailey           150,000       13,500          10,986       174,486          
Totals              480,837       108,238         30,425       619,500          
Options Issued as Part of Remuneration for the Year Ended 31 December 2007      
The details of options issued as part of remuneration during the year are       
detailed in Section D.                                                          
Details of Remuneration for Year Ended 31 December 2006                         
The remuneration for each Director and each of the executive officers of the    
Group receiving the highest remuneration during the year, who are also the      
Key Management Personnel, was as follows:                                       
                   Short- Term   Post            Share Based  Total             
2006                Benefits      Employment      Payment                       
Benefits                                       
                   Cash Salary   Superannuation  Options                        
                   and Fees                                                     
                   $             $               $            $                 
Executive                                                                       
Directors                                                                       
W. Marx            84,098        135,902         -            220,000           
L. Daniels         150,000       -               -            150,000           
Non-executive                                                                   
Directors                                                                       
B. Phillips         40,000        -               -            40,000           
E. Luff             37,500        -               -            37,500           
Sub-total           311,598       135,902         -            447,500          
directors                                                                       
Details of Remuneration for Year Ended 31 December 2006 (continued)             
Other Key                                                                       
Management                                                                      
Personnel                                                                       
H. Hill             90,000        -              -             90,000           
B. Tambanis         191,374       12,289         39,000        242,663          
A. Berryman         105,417       14,988         2,000         122,405          
C. Bailey           119,250       10,733         2,850         132,833          
Totals              817,639       173,912        43,850        1,035,401        
Options Issued as Part of Remuneration for the Year Ended 31 December 2006      
The details of options issued as part of remuneration during the year are       
detailed in the section on share based compensation options.                    
C  Service Agreements (audited)                                                 
There are no contracts between the company and directors, executives or         
consultants.                                                                    
D  Share Based Compensation (audited)                                           
Options are granted under the Tawana Resources Employee Option Scheme which     
was approved by shareholders at the 2005 annual general meeting.                
All directors and staff (including Key Management Personnel) are eligible to    
participate in the plan. Options are granted under the plan for no              
consideration. Options are granted for a five year period, and 1/3 vests on     
the date of granting of the options, 1/3 on the first anniversary of the date   
of granting and 1/3 on the second anniversary of the date of granting.          
Options granted under the plan carry no dividend or voting rights. When         
exercisable, each option is converted into one ordinary share.                  
The terms and conditions of each grant of options affecting remuneration in     
this or future reporting periods are as follows:                                
Grant Date        Expiry Date   Exercise   Value per    Date exercisable        
                               Price      option at                             
                                          date of                               
grant                                 
(a) 30/11/ 2006   30/11/2011    $0.35      $0.057       1/3 - 30/11/2006        
30/11/ 2006       30/11/2011    $0.35      $0.067       1/3 - 30/11/2007        
30/11/ 2006       30/11/2011    $0.35      $0.075       1/3 - 30/11/2008        

(b) 30/11/2006    30/11/2011    $0.50      $0.039       30/11/2006              
                                                                                
(c) 30/11/ 2006   30/11/2011    $0.35      $0.057       1/3 - 30/11/2006        
30/11/ 2006       30/11/2011    $0.35      $0.067       1/3 - 30/11/2007        
30/11/ 2006       30/11/2011    $0.35      $0.075       1/3 - 30/11/2008        
                                                                                
(d) 31/05/2007    30/11/2011    $0.35      $0.0515      1/3 - 31/05/2007        
31/05/2007        30/11/2011    $0.35      $0.0515      1/3 - 31/05/2008        
31/05/2007        30/11/2011    $0.35      $0.0522      1/3 - 31/05/2009        
                                                                                
(e) 25/06/2007    30/11/2011    $0.35      $0.0391      1/3 - 25/06/2007        
25/06/2007        30/11/2011    $0.35      $0.0391      1/3 - 25/06/2008        
25/06/2007        30/11/2011    $0.35      $0.0391      1/3 - 25/06/2009        
                                                                                
D  Share Based Compensation (audited) (continued)                               
(a) Three hundred and ninety thousand options exercisable at $0.35 were         
issued to employees under the employee options scheme in 2006.                  
(b) One million options exercisable at $0.50 cents were issued to B. Tambanis   
as part of his employment arrangement in 2006. Those options will have an       
expiry date of 30/11/2011. These options vested on the day of granting of the   
options.                                                                        
(c) Two hundred and fifty thousand options exercisable at $0.35 were granted    
to employees under the employee option scheme during 2006 but only accepted     
in 2007.                                                                        
(d) Five hundred thousand options exercisable at $0.35 where issued to E Luff   
under the employee option scheme in 2007.                                       
(e) Five hundred thousand options exercisable at $0.35 were granted to          
employees under the employee option scheme in 2007.                             
Details of options over ordinary shares in the company provided as              
remuneration to each Director of the Group and of each of the key management    
personnel of the Group are set out below. When exercisable, each option is      
convertible into one ordinary share of Tawana Resources N.L. Further            
information on the options is set out in the notes to the financial             
statements.                                                                     
Name            Number of    Number of      Number of     Number of             
options      options        options       options                
               granted      granted        vested        vested                 
               during the   during the     during the    during the             
               year         year           year 2007     year 2006              
2007         2006                                                
Directors                                                                       
B. Phillips     -            -              -             -                     
W. Marx         -            -              -             -                     
E. Luff        500,000      -              166,666       -                      
                                                                                
Key                                                                             
Management                                                                      
B. Tambanis     -            1,000,000      -             1,000,000             
A. Berryman     -            100,000        66,666        33,333                
C. Bailey       250,000      150,000        133,333       50,000                
                                                                                
The assessed fair value at grant date of options granted to the individuals     
is allocated equally over the period from grant date to vesting date, and the   
amount is included in the remuneration tables above. Fair values at grant       
date are independently determined using a Binominal Tree 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.                                  
No Directors or employees exercised options during 2007.                        
The model inputs for options granted during the year ended 31 December          
2007 included:                                                                  
(a)   options are granted for no consideration, 33.3% of each tranche           
vests and is exercisable on the date of granting ,and on the two           
     anniversary days of granting                                               
(b)   exercise price: $0.35 (2006 - $0.35)                                      
(c)   500,000 options were granted on 31 May 2007 and 500,000 options           
were granted on 25 June 2007 (2006 - 30 November 2006)                     
(d)   expiry date: 30 November 2011 (2006 - 30 November 2011)                   
(e)   share price at grant date of 31 May 2007:  $0.193; share price at         
     grant date of 25 June 2007:  $0.167 (2006 - $0.20)                         
(f)   expected price volatility of the company`s shares: 49% at both            
     dates (2006 - 67%)                                                         
(g)   expected dividend yield: 0.0% at both dates (2006 - 0.0%)                 
(h)   Risk-free interest rate at grant date of 31 May 2007:  6.18%, and         
at grant date of 25 June 2007:  6.39% (2006 - 5.88%)                       
E  Additional Information - unaudited                                           
Details of remuneration: cash bonuses and options                               
For each cash bonus and grant of options included in the tables on              
pages 15 - 17, the percentage of the available bonus or grant that was          
paid, or that vested, in the financial year, and the percentage that            
was forfeited because the person did not meet the service and                   
performance criteria is set out below. The options vest over three              
years, provided the vesting conditions are met, hence the minimum value         
of the option yet to vest is nil. The maximum value of the options yet          
to vest has been determined as the amount of the grant date fair value          
of the options that is yet to be expensed.  Tawana Resources N.L does           
not have a formal bonus plan that is linked to the performance of the           
company.                                                                        
           Cash Bonus    Options                                                
Name        Paid  For-    Year    Vest  For-   Financia  Minimu   Maximu        
feited  grante  ed    feited l years   m        m              
                         d                    in which  total    total          
                                              options   value    value          
                                              may vest  of       of             
grant    grant          
                                                        yet to   yet to         
                                                        vest     vest           
                                 %     %                $        $              
A.          -     -       2006    66.6  -      31/12/    -        1,252         
Berryman                          %            2008                             
                                                                                
C. Bailey   -     -       2007    33.3  -      31/12/    -        4,037         
-     -       2006    %     -      2009      -        1,877          
                                 66.6         31/12/                            
                                 %            2008                              
E. Luff     -     -       2007    33.3  -      31/12/    -        9,809         
%            2009                              
                                                                                
Further details relating to options are set out below.                          
           A              B          C          D          E                    
Name        Remuneration   Value at   Value at   Value at   Total of            
           consisting of  grant      exercise   lapse      columns B-D          
           options        date       date       date                            
                          $          $          $          $                    
C. Bailey   3.30%          5,763      -          -          5,763               
E. Luff     29.98%         16,058     -          -          16,058              
A = The percentage of the value of remuneration consisting of options,          
based on the value at grant date set out in column B.                           
B = The value at grant date calculated in accordance with AASB 2 Share-         
based Payment of options granted during the year as part of                     
remuneration.                                                                   
C = The value at exercise date of options that were granted as part of          
remuneration and were exercised during the year.                                
D = The value at lapse date of options that were granted as part of             
remuneration and that lapsed during the year.                                   
Loans to directors and executives                                               
There are currently no loans (2006: Nil) with Directors and executives.         
Share options granted to directors and the most highly remunerated              
officers                                                                        
Options over unissued ordinary shares of Tawana Resources NL granted            
during or since the end of the financial year to the most highly                
remunerated officers of the company as part of their remuneration were          
as follows:                                                                     
Other executives of Tawana Resources NL          Options granted                
E. Luff                                          500,000                        
C. Bailey                                        250,000                        
The options were granted under the Tawana Resources NL Employee Option          
Plan on 30 November 2006.  Details of options granted to the directors          
and the most highly remunerated officers of the Group can be found in           
section D of the remuneration report on page 16.  No options have been          
granted since the end of the year.                                              
No shares were issued on the exercise of options.                               
Insurance of Officers                                                           
During the financial year, Tawana Resources N.L. paid a premium of $24,200 to   
insure the directors and secretary of the Company and its Australian based      
controlled entities, and the managers of each of the divisions of the Group.    
The liabilities insured are legal costs that may be incurred in defending       
civil or criminal proceedings that may be brought against the officers in       
their capacity as officers of entities in the Group and any other payments      
arising from liabilities incurred by the officers in connection with such       
proceedings. This does not include such liabilities that arise from conduct     
involving a wilful breach of duty by the officers or the improper use by the    
officers of their position or of information to gain advantage for themselves   
or someone else or to cause detriment to the company. It is not possible to     
apportion the premium between amounts relating to the insurance against legal   
costs and those relating to other liabilities.                                  
Proceedings on behalf of the company                                            
No person has applied to the Court under section 237 of the Corporations        
Act 2001 for leave to bring proceedings on behalf of the company, or to         
intervene in any proceedings to which the Company is a party, for the           
purpose of taking responsibility on behalf of the Company for all or            
part of those proceedings.                                                      
No proceedings have been brought or intervened in on behalf of the              
Company with leave of the Court under section 237 of the Corporations           
Act 2001.                                                                       
Non-audit services                                                              
The Company may decide to employ the auditor on assignments additional          
to their statutory audit duties where the auditor`s expertise and               
experience with the Company and/or the Group are important.                     
Details of the amounts paid or payable to the auditor                           
(PricewaterhouseCoopers) for audit and non-audit services provided              
during the year are set out below.                                              
The Board of Directors has considered the position and, in accordance           
with the advice received from the audit and risk management committee,          
is satisfied that the provision of the non-audit services is compatible         
with the general standard of independence for auditors imposed by the           
Corporations Act 2001.  No non-audit services were provided by the              
auditor during 2007.                                                            
During the year the following fees were paid or payable for services            
provided by the auditor of the parent entity, its related practices and         
non-related audit firms:                                                        
                                          Consolidated                          
2007            2006                  
                                          $               $                     
Assurance services                                                              
Audit services                                                                  
PricewaterhouseCoopers Australian firm:                                         
Audit and review of financial reports and  65,396          40,085               
other audit work under the Corporations                                         
Act 2001                                                                        
Related practices of                       35,214          37,169               
PricewaterhouseCoopers Australian firm                                          
Total remuneration for audit services      100,610         77,254               
                                                                                
Other services                                                                  
PricewaterhouseCoopers                     -               -                    
Auditors` independence declaration                                              
A copy of the auditors` independence declaration as required under              
section 307C of the Corporations Act 2001 is set out on page 21.                
Auditor                                                                         
PricewaterhouseCoopers was appointed in accordance with section 327 of          
the Corporations Act 2001.                                                      
This report is made in accordance with a resolution of directors.               
W.T. Marx                                                                       
Director                                                                        
Dated at Melbourne this 31st day of March 2008                                  
PricewaterhouseCoopers                                                          
ABN 52 780 433 757                                                              
Freshwater Place                                                                
2 Southbank Boulevard                                                           
SOUTHBANK VIC 3006                                                              
GPO Box 1331L                                                                   
MELBOURNE VIC 3001                                                              
DX 77                                                                           
Telephone 61 3 8603 1000                                                        
Auditor`s Independence Declaration                                              
Facsimile 61 3 8603 1999                                                        
Website:www.pwc.com/au                                                          
As lead auditor for the audit of Tawana Resource N.L. for the year ended 31     
December 2007, I declare that to the best of my knowledge and belief, there     
have been:                                                                      
a)   no contraventions of the auditor independence requirements of the          
Corporations Act 2001 in relation to the audit; and                             
b)   no contraventions of any applicable code of professional conduct in        
relation to the audit.                                                          
This declaration is in respect of Tawana Resources during the period. and the   
entities it controlled.                                                         
Tim Goldsmith Melbourne                                                         
Partner 31 March 2008                                                           
PricewaterhouseCoopers                                                          
Liability limited by a scheme approved under Professional Standards             
Legislation                                                                     
Corporate Governance Statement                                                  
Tawana Resources NL and the Board are committed to achieving and                
demonstrating the highest standards of corporate governance. An extensive       
review of the Company`s corporate governance framework was completed in light   
of the best practice recommendations released by the Australian Stock           
Exchange Corporate Governance Council in March 2003. The Board continues to     
review the framework and practices to ensure they meet the interests of         
shareholders. The Company and its controlled entities together are referred     
to as the Group in this statement.                                              
The relationship between the Board and senior management is critical to the     
Group`s long-term success.  The Directors are responsible to the shareholders   
for the performance of the Company in both the short and the longer term and    
seek to balance sometimes competing objectives in the best interests of the     
Group as a whole.  Their focus is to enhance the interests of shareholders      
and other key stakeholders and to ensure the Group is properly managed.         
Day to day management of the Group`s affairs and the implementation of the      
corporate strategy and policy initiatives are formally delegated by the board   
to the Managing Director and senior executives as set out in the Group`s        
delegations policy. These delegations are reviewed on an annual basis.          
A description of the Company`s main corporate governance practices is set out   
below. All these practices, unless otherwise stated, were in place for the      
entire year.                                                                    
Foundations for Management and Oversight                                        
The Board has the overall responsibility to shareholders for all governance     
matters of the Tawana Group. The Board remains primarily responsible for the    
strategic direction and financial aspirations of the Tawana Group, whilst       
delegating the responsibility of management to the Managing Director and the    
senior management team.                                                         
The Board aims to fulfil its responsibilities by creating value for all         
stakeholders that is sustainable and beneficial. Stakeholders include           
shareholders, employees, customers, the community and the environment. The      
Board has adopted a Charter that includes amongst other items, the specific     
roles and responsibilities of the Board. Without limiting the Board`s           
function, their specific responsibilities include:                              
*    Approving objectives, strategies and financial plans and monitoring the    
Company`s performance against these plans.                                      
*    Appointment of the Managing Director and reviewing his performance and     
remuneration.                                                                   
*    Monitoring compliance with the regulatory requirements, ensuring all       
Tawana Group employees act with integrity and due diligence in the interests    
of the Company and stakeholders.                                                
*    Review and approve all significant policies and procedures across the      
Tawana Group.                                                                   
Board Composition                                                               
The Board, with the assistance of the Remuneration and Nomination Committee,    
reviews from time to time the size, structure and composition of the Board,     
taking into consideration the balance of skills, experience and knowledge of    
Board members.                                                                  
The Board is currently chaired by a Non-executive Director.                     
The Company has adopted a definition of independence consistent with the        
guidance provided by the ASX Corporate Governance Council. Such a definition    
provides that an independent Director is a Non-Executive Director and is not    
a member of management and:                                                     
-    is not a substantial shareholder of the Company or an officer of, or       
otherwise, associated directly with, a substantial shareholder of the Company   
-    within the last three years has not been employed in an executive          
capacity by the Company or another group member, or been a Director after       
ceasing to hold such employment.                                                
-    within the last three years has not been a principal or a material         
adviser or a material consultant to the Company or group member, or an          
employee materially associated with the service provided.                       
-    is not a material supplier or customer of the Company or other group       
member, or an officer of or otherwise associated directly with a material       
supplier or customer.                                                           
-    has no material contractual relationship with the Company or another       
group member other than as a director of the Company.                           
-    has not served on the Board for a period which could, or could             
reasonably be perceived to, materially interfere with the director`s ability    
to act in the best interests of the Company.                                    
-    is free from any interest and any business or other relationship which     
could, or could reasonably be perceived to, materially interfere with the       
director`s ability to act in the best interests of the Company.                 
A substantial shareholder is defined to be a person or Company that has an      
interest of 5% or more of the voting rights of the Company.                     
The Board has reviewed the position of all current Directors in light of the    
Company`s adopted definition of independence. The Board acknowledges that it    
is not comprised of a majority of independent Non-Executive Directors. Non-     
compliance with the best practice recommendation of the ASX Council`s           
requirements is attributable to the Company`s small size, emerging rate of      
growth since listing, and identifying and attracting suitable qualified         
directors with the right combination of skills.                                 
The following were Directors during the 2007 year;                              
Director      Capacity     Position     Held Office  Held Office                
                                       from:        to:                         
W. Marx       Managing     Non          16 November  Current                    
             Director     Independent  1998                                     
B. Phillips   Non-Exec                  4 April      Current                    
             Director     Independent  2005                                     
E. Luff       Non-Exec     Non          16 November  Current                    
             Director     Independent  1998                                     
At each annual general meeting one-third of the Directors or, if their number   
is a multiple of three, then the number nearest to but not more than one-       
third of the Directors must retire from office as follows:                      
The Directors to retire by rotation at an annual general meeting are those      
Directors who have been longest in office since their last election or          
appointment.                                                                    
Directors elected or appointed on the same day may agree among themselves or    
determine by lot which of them must retire.                                     
A Director must retire from office at the conclusion of the third annual        
general meeting after which the Director was elected, even if his or her        
retirement results in more than one-third of all Directors retiring from        
office.                                                                         
A retiring Director will be eligible for re-election.                           
Responsiblities                                                                 
The responsibilities of the board include:                                      
-    providing strategic guidance to the company                                
-    reviewing and approving business and financial plans                       
-    monitoring organisational and financial performance                        
-    liaising with company`s auditors                                           
-    appointing the Managing Director and reviewing his performance             
-    enhancing and protecting the reputation of the organisation                
-    overseeing the operation of the systems and processes for compliance and   
risk management reporting to shareholders.                                      
Independent Professional Advice                                                 
Directors and board committees have the right, in connection with their         
duties and responsibilities, to seek independent advice at the company`s        
expense. Prior written approval of the Chairman is required, but this will      
not be unreasonably withheld.                                                   
Performance Assessment                                                          
The full Board is responsible for reviewing the performance of the Chairman.    
It is the responsibility of the Chairman, with advice from the Remuneration     
and Nomination Committee, to assess the performance of each of the Directors    
and senior executives. The Board has conducted its annual performance reviews   
for the 2007 year, which involved open and constructive dialogue between the    
respective parties, taking account of the objectives and measurable results     
that have been achieved.                                                        
Corporate Reporting                                                             
The Managing Director and Company Secretary have made the following             
certifications to the board:                                                    
that the Company`s financial reports are complete and present a true and fair   
view, in all material respects, of the financial condition and operational      
results of the Company and Group and are in accordance with relevant            
accounting standards                                                            
that the above statement is founded on a sound system of risk management and    
internal compliance and control which implements the policies adopted by the    
Board and that the Company`s risk management and internal compliance and        
control is operating efficiently and effectively in all material respects.      
Board Committees                                                                
The Board has established a number of committees to assist in the execution     
of its duties and to allow detailed consideration of complex issues.            
Currently there are two committees in place being the Remuneration and          
Nomination Committee and the Audit and Risk Management Committee. Each is       
comprised of non-executive Directors. All matters determined by committees      
are submitted to the full board as recommendations for Board decisions.         
Remuneration and Nomination Committee                                           
The current members are:                                                        
E. Luff (Chairman)                                                              
B.  Phillips                                                                    
The committee is responsible for making recommendations to the Board with       
respect to the Company`s compensation policies, including equity based          
programs.                                                                       
The committee is also responsible for making recommendations to the Board for   
identifying individuals suitably qualified to become Board members.             
Particulars concerning Directors` and Executives` remuneration are set out in   
the Directors` Report.                                                          
Audit and Risk Management Committee                                             
The current members of the committee are:                                       
E. Luff (Chairman)                                                              
B. Phillips                                                                     
The committee is responsible for risk management and oversight of the           
Company`s financial reporting policies and other operational risk areas.        
Furthermore, the committee monitors the internal controls and the integrity     
of the Company`s financial statements in compliance with the regulatory         
requirements. The committee is also responsible for the appointment,            
evaluation and oversight of the external auditor, ensuring that the             
independence of the external assurance function is maintained.                  
External Auditors                                                               
The Company and audit committee policy is to appoint external auditors who      
clearly demonstrate quality and independence. The performance of the external   
auditor is reviewed annually and applications for tender of external audit      
services are requested as deemed appropriate, taking into consideration         
assessment of performance, existing value and tender costs.                     
PricewaterhouseCoopers was appointed as the external auditor in 2006. It is     
PricewaterhouseCoopers policy to rotate audit engagement partners on listed     
companies at least every five years.                                            
An analysis of fees paid to the external auditors, including a breakdown of     
fees for non - audit services, is provided in the Directors` Report and in      
the notes to the financial statements. It is the policy of the external         
auditor to provide an annual declaration of their independence to the audit     
committee.                                                                      
The external auditor is requested to attend the annual general meeting and be   
available to answer shareholder questions about the conduct of the audit and    
the preparation and content of the audit report.                                
Risk Assessment and Management                                                  
The Board, through the audit and risk management committee, is responsible      
for ensuring there are adequate policies in relation to risk management,        
compliance and internal control systems. These policies are available on the    
company website.  In summary, the company policies are designed to ensure       
strategic, operational, legal, reputation and financial risks are identified,   
assessed, effectively and efficiently managed and monitored to enable           
achievement of the Group`s business objectives.                                 
Considerable importance is placed on maintaining a strong control               
environment. There is an organisation structure with clearly drawn lines of     
accountability and delegation of authority. Adherence to the Code of Conduct    
is required at all times and the board actively promotes a culture of quality   
and integrity.                                                                  
The Company risk management policy and the operation of the risk management     
and compliance system is managed by the company Risk Management Group which     
consists of senior executives chaired by the Company Secretary. The Board       
receives quarterly reports from this group on material risks that may impede    
meeting business objectives.                                                    
Detailed control procedures cover management accounting, financial reporting,   
project appraisal, environment, health and safety, IT security, compliance      
and other risk management issues.                                               
In addition, the Board requires that each major proposal submitted to the       
Board for decision is accompanied by a comprehensive risk assessment and,       
where required, management`s proposed mitigation strategies.                    
Safety, Health and Environment Management System (SHEMS)                        
The Company recognises the importance of environmental and occupational         
health and safety (OH&S) issues and is committed to the highest levels of       
performance. To help meet this objective the SHEMS was established to           
facilitate the systematic identification of environmental and OH&S issues and   
to ensure they are managed in a structured manner. This system has been         
operating for a number of years and allows the company to:                      
*    Monitor its compliance with all relevant legislation                       
*    Continually assess and improve the impact of its operations on the         
environment                                                                     
*    Encourage employees to actively participate in the management of           
environmental and OH&S issues and                                               
*    Use energy and other resources efficiently.                                
The Tawana Corporate Office and Laboratory have been certified to AS/NZS        
4801:2001, OHSAS 18001:1999 (Occupational Health and Safety Management          
Systems), and to AS/NZS ISO 14001:2004 (Environmental Management System)        
since May 2005 and remain certified. This SHEMS meets or exceeds legislative    
compliance and governs Tawana operations both within Australia and abroad.      
Information on compliance with significant environmental regulations is set     
out in the Directors` Report.                                                   
Code of Conduct                                                                 
These policies set out the ethical standards that govern the conduct of all     
Directors and employees. The Company recognises the interests of all            
stakeholders in the community and their role in creating shareholder value.     
Every Director and employee is required at all times, to conduct themselves     
in a manner consistent with the principles of honesty and integrity.            
The Code requires Directors and employees, amongst other things, to comply      
with the law, to disclose relevant interests that they may have and to act in   
the best interests of the Company. The Code also covers confidentiality of      
information and respect of privacy.                                             
Continuous Disclosure and Shareholder Communication                             
The Company has policies and procedures on information disclosure that focus    
on continuous disclosure of any information concerning the Group that a         
reasonable person would expect to have a material effect on the price of the    
Company`s securities. These policies and procedures also include the            
arrangements the Company has in place to promote communication with             
shareholders and encourage effective participation at general meetings.         
All information disclosed to the ASX is posted on the company`s website as      
soon as it is disclosed to the ASX. When analysts are briefed on aspects of     
the Group`s operations, the material used in the presentation is released to    
the ASX and posted on the company`s website. Procedures have also been          
established for reviewing whether any price sensitive information has been      
inadvertently disclosed and, if so, this information is also immediately        
released to the market.                                                         
All shareholders receive a copy of the Company`s annual report.                 
Securities Policy                                                               
This policy provides guidance to all directors`, officers and staff dealing     
in Tawana`s securities. The Securities Policy prohibits trading for all         
persons aware of unpublished price sensitive information about the Company.     
In addition, it specifically limits the trade of Tawana`s securities by the     
Company`s officers during certain periods of time prior to the release of       
both the half year and full year results.                                       
Significant Accounting Policies                                                 
Details of significant accounting policies are set out in note 1 of the notes   
forming part of the financial statements                                        
Directors` and Executives` Remuneration                                         
The performance of the Company depends upon the quality of its Directors and    
Executives. To prosper, the Company must attract, motivate and retain highly    
skilled Directors and Executives.                                               
The Remuneration and Nomination Committee undertakes a review of the            
remuneration packages of all Directors and Executive officers on an annual      
basis and makes recommendations to the Board. Remuneration packages are         
reviewed with due regard to performance and other relevant factors.             
In order to retain and attract executives of sufficient calibre to facilitate   
the efficient and effective management of the Company`s operations, the         
Remuneration and Nomination Committee may seek the advice of external           
advisors in connection with the structure of remuneration packages.             
Remuneration packages contain the following key elements:                       
Primary benefits, including salary/fees                                         
Post employments benefits, including superannuation and prescribed retirement   
benefits                                                                        
Other benefits                                                                  
Details of specified Directors and Executives are contained within the          
Directors` Report.                                                              
Non-executive Directors` fees are determined by the Board based on external     
advice that is received from time to time and with reference to fees paid to    
other Non-Executive Directors of comparable companies, taking account of the    
specific duties in relation to the Company. Non-executive Director`s fees are   
within the limit agreed to by shareholders and represent the responsibilities   
of the time spent by the Non-executive Directors` in fulfilling their duties    
to the Board.                                                                   
Publicly Available Information                                                  
In accordance with the ASX Corporate Governance Council, the best practice      
recommendations provide that specific documents should be publicly available,   
ideally on the Company`s website. The Company makes available on the web-       
site, within a reasonable time, any public statements by the Company.           
Tawana Resources N.L.  ABN  69 085 166 721                                      
Annual Financial Report - 31 December 2007                                      
Contents                                                                        
Financial report:                                                               
    Income statements                                                           
Balance sheets                                                              
    Statements of changes in equity                                             
    Cash flow statements                                                        
    Notes to the financial statements                                           
Directors` declaration                                                      
    Independent audit report to the members                                     
This financial report covers both Tawana Resources N.L. as an individual        
entity and the consolidated entity consisting of Tawana Resources N.L. and      
its subsidiaries.  The financial report is presented in the Australian          
currency.                                                                       
Tawana Resources N.L. is a company limited by shares, incorporated and          
domiciled in Australia.  Its registered office and principal place of           
business is:                                                                    
Tawana Resources N.L.                                                           
60 Wilson Street                                                                
South Yarra   VIC 3141                                                          
A description of the nature of the consolidated entity`s operations and its     
principal activities is included in the review of operations and activities     
on pages 7 to 12 and in the Directors` report on page 5, both of which are      
not part of this financial report.                                              
The financial report was authorised for issue by the Directors on 28th March    
2008.  The Company has the power to amend and reissue the financial report.     
Through the use of the internet, we have ensured that our corporate reporting   
is timely, complete, and available globally at minimum cost to the Company.     
All press releases, financial reports and other information are available on    
our website: www.tawana.com.au.                                                 
INCOME STATEMENTS                                                               
For The Year Ended 31 December 2007                                             
Consolidated             Parent Entity                  
                        2007        2006         2007         2006              
                  Note  $           $            $            $                 
Revenue from                                                                    
continuing         4     120,034     233,201      41,727       136,886          
operations                                                                      
                                                                                
Other income       4     -           216,242      -            216,242          
Corporate costs          (488,460)   (535,330)    (273,943)    (401,528)        
Depreciation             (436,789)   (832,518)    (257,977)    (334,031)        
Employee benefits        (686,814)   (369,995)    (611,055)    (203,470)        
expense                                                                         
Exploration              (5,288,919) (2,439,577)  (5,288,919)  (2,439,577)      
expenses written                                                                
off                                                                             
Foreign exchange         -           (61,661)     -            (27,457)         
loss                                                                            
Impairment of            -           -            (2,670,612)  (2,121,692)      
financial assets                                                                
Prospecting fee          -           -            (212,415)    (202,855)        
Travel costs             (70,200)    (253,233)    -            (71,794)         
Other expenses     5     (534,852)   (723,398)    (321,519)    (369,751)        
                                                                                
Loss from                (7,386,000) (4,766,269)  (9,594,713)  (5,819,027)      
continuing                                                                      
operations before                                                               
income tax                                                                      
expense                                                                         

Income tax               -           -            -            -                
expense                                                                         
                                                                                
Loss from                (7,386,000) (4,766,269)  (9,594,713)  (5,819,027)      
continuing                                                                      
operation after                                                                 
income tax                                                                      
expense                                                                         
attributable to                                                                 
members of the                                                                  
parent                                                                          
Earnings per share from continuing operations attributable to the ordinary      
equity holders of the company                                                   
Basic earnings     25    (0.083)     (0.061)                                    
per share                                                                       
Diluted earnings   25    (0.083)     (0.061)                                    
per share                                                                       
The above income statements should be read in conjunction with the              
accompanying notes                                                              
BALANCE SHEETS                                                                  
As at 31 December 2007                                                          
                    Consolidated                Parent Entity                   
             Notes  2007          2006          2007          2006              
ASSETS               $             $             $             $                
Current                                                                         
assets                                                                          
Cash and      7      149,862       2,655,399     134,031       278,558          
cash                                                                            
equivalents                                                                     
Trade and     8      88,981        561,231       77,417        138,654          
other                                                                           
receivables                                                                     
Inventories   9      76,818        94,181        -             -                
Total                315,661       3,310,811     211,448       417,212          
current                                                                         
assets                                                                          
                                                                                
Non-current                                                                     
assets                                                                          
Receivables   8      47,423        51,291        -             -                
Investment    10     16,640                      16,640                         
in associate                                                                    
Other         11     -             -             3,887,738     7,730,151        
financial                                                                       
assets                                                                          
Property,     12     850,889       1,371,547     442,862       778,414          
plant and                                                                       
equipment                                                                       
Exploration   13     7,971,366     12,037,202    4,531,948     8,931,447        
expenditure                                                                     
Total non-           8,886,318     13,460,040    8,879,188     17,440,012       
current                                                                         
assets                                                                          
                                                                                
Total Assets         9,201,979     16,770,851    9,090,636     17,857,224       

LIABILITIES                                                                     
Current                                                                         
liabilities                                                                     
Trade and     15     142,761       480,664       54,510        119,890          
other                                                                           
payables                                                                        
Provisions    16     116,389       71,760        116,389       71,760           
Total                259,150       552,424       170,899       191,650          
current                                                                         
liabilities                                                                     
                                                                                
Non-current                                                                     
liabilities                                                                     
Provisions    16     30,784        51,291        -             -                
Non-interest  17     -             -             7,692         7,692            
bearing                                                                         
liabilities                                                                     
Total non-           30,784        51,291        7,692         7,692            
current                                                                         
liabilities                                                                     
                                                                                
Total                289,934       603,715       178,591       199,342          
Liabilities                                                                     

Net Assets           8,912,045     16,167,136    8,912,045     17,657,882       
                                                                                
EQUITY                                                                          
Contributed   18     33,339,335    32,544,335    33,339,335    32,544,335       
equity                                                                          
Reserves      19     (2,148,733)   (1,484,642)   260,323       206,447          
Accumulated   20     (22,278,557)  (14,892,557)  (24,687,613)  (15,092,900)     
losses                                                                          
                                                                                
Total Equity         8,912,045     16,167,136    8,912,045     17,657,882       
                                                                                
The above balance sheets should be read in conjunction with the accompanying    
notes.                                                                          
STATEMENTS OF CHANGES IN EQUITY                                                 
Year Ended 31 December 2007                                                     
CONSOLIDATED             Issued     Retained      Other        Total            
                        Capital    Earnings      Reserves                       
                        $          $             $            $                 
2006                                                                            
At 1 January 2006        25,744,021 (10,126,288)  (20,547)     15,597,186       
Currency translation     -          -             (1,511,658)  (1,511,658)      
differences                                                                     
Profit/ (Loss) for the   -          (4,766,269)   -            (4,766,269)      
period                                                                          
Issue of executive and   -          -             47,563       47,563           
staff options                                                                   
Issue of shares          6,800,314  -             -            6,800,314        
At 31 December 2006      32,544,335 (14,892,557)  (1,484,642)  16,167,136       
2007                                                                            
At 1 January 2007        32,544,335 (14,892,557)  (1,484,642)  16,167,136       
Currency translation     -          -             (717,967)    (717,967)        
differences                                                                     
Profit/ (Loss) for the   -          (7,386,000)   -            (7,386,000)      
period                                                                          
Issue of executive and   -          -             53,876       53,876           
staff options                                                                   
Issue of shares          795,000    -             -            795,000          
At 31 December 2007      33,339,335 (22,278,557)  (2,148,733)  8,912,045        
                                                                                
PARENT ENTITY            Issued     Retained      Other        Total            
                        Capital    Earnings      Reserves                       
2006                                                                            
At 1 January 2006        25,744,021 (9,273,873)   158,884      16,629,032       
Profit/(Loss) for the    -          (5,819,027)   -            (5,819,027)      
period                                                                          
Issue of executive and   -          -             47,563       47,563           
staff options                                                                   
Issue of shares          6,800,314  -             -            6,800,314        
At 31 December 2006      32,544,335 (15,092,900)  206,447      17,657,882       
2007                                                                            
At 1 January 2007        32,544,335 (15,092,900)  206,447      17,657,882       
Profit/ (Loss) for the   -          (9,594,713)   -            (9.594,713)      
period                                                                          
Issue of executive and   -          -             53,876       53,876           
staff options                                                                   
Issue of shares          795,000    -             -            795,000          
At 31 December 2007      33,339,335 (24,687,613)  260,323      8,912,045        
The above statements of changes in equity should be read in conjunction with    
the accompanying notes.                                                         
CASH FLOW STATEMENTS                                                            
For The Year Ended 31 December 2007                                             
                      Consolidated               Parent Entity                  
                      2007         2006          2007         2006              
Note  $            $             $            $                 
Cash Flows from                                                                 
Operating                                                                       
Activities                                                                      
Receipts from          104,513      192,532       105,534      162,305          
customers                                                                       
Interest               81,088       178,102       2,781        81,787           
received                                                                        
Payments to            (1,536,683)  (1,424,877)   (1,147,835)  (1,085,642)      
suppliers and                                                                   
employees                                                                       
                                                                                
Net cash         30    (1,351,082)  (1,054,243)   (1,039,520)  (841,550)        
outflow from                                                                    
operating                                                                       
activities                                                                      

Cash Flows from                                                                 
Investing                                                                       
Activities                                                                      
Purchase of            (44,726)     (10,437)      -            -                
fixed assets                                                                    
Proceeds on            52,961       1,714,576     46,667       1,714,576        
sale of fixed                                                                   
assets                                                                          
Payments for           (1,223,083)  (4,727,419)   (889,420)    (4,261,252)      
exploration                                                                     
Advances to            -            -             (196,188)    (4,286,327)      
related bodies                                                                  
corporate                                                                       
Advances from          -            -             1,155,574    -                
related bodies                                                                  
corporate                                                                       
Investment in          (16,640)     -             (16,640)     -                
associate                                                                       
Loans repaid           -            (2,577)       -            -                

Net cash               (1,231,488)  (3,025,857)   99,993       (6,833,003)      
outflow from                                                                    
investing                                                                       
activities                                                                      
                                                                                
Cash Flows from                                                                 
Financing                                                                       
Activities                                                                      
Proceeds from          795,000      7,520,782     795,000      7,520,782        
share issues                                                                    
Cost of share          -            (720,468)     -            (720,468)        
issues                                                                          
Net cash inflow        795,000      6,800,314     795,000      6,800,314        
from financing                                                                  
activities                                                                      

Net                    (1,787,570)  2,720,214     (144,527)    (874,239)        
increase/(decre                                                                 
ase) in cash                                                                    
and cash                                                                        
equivalents                                                                     
Cash and cash          2,655,399    1,340,481     278,558      1,152,797        
equivalents at                                                                  
beginning of                                                                    
financial year                                                                  
Effects of             (717,967)    (1,405,296)   -            -                
exchange rates                                                                  
changes on cash                                                                 
and cash                                                                        
equivalent                                                                      
                                                                                
Cash and cash    30    149,862      2,655,399     134,031      278,558          
equivalents at                                                                  
end of                                                                          
financial year                                                                  
The above cash flow statements should be read in conjunction with the           
accompanying notes.                                                             
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                      
The principal accounting policies adopted in the preparation of the financial   
report are set out below.  These policies have been consistently applied to     
all the years presented, unless otherwise stated. The financial report          
includes separate financial statements for Tawana Resources N.L. as an          
individual entity and the consolidated entity consisting of Tawana Resources    
N.L. and its subsidiaries.                                                      
(a)  Basis of preparation                                                       
This general purpose financial report has been prepared in accordance with      
the Australian equivalents to International Financial Reporting Standards,      
other authoritative pronouncements of the requirements of the Australian        
Accounting Standards Board, Urgent Issues Group Interpretations and the         
Corporations Act 2001.                                                          
The financial report covers the economic entity of Tawana Resources N.L. and    
controlled entities, and Tawana Resources N.L. as an individual parent          
entity.                                                                         
The financial report is presented in Australian dollars and rounded to the      
nearest dollar.                                                                 
The financial report is prepared on a going concern basis.  Refer to Note 31    
for further details.                                                            
Compliance with AIFRS                                                           
The financial report complies with Australian Accounting Standards, which       
include Australian equivalents to International Financial Reporting Standard    
("AIFRS"). Compliance with AIFRS ensures that the financial report,             
comprising the financial statements and notes thereto, complies with            
International Financial Reporting Standards ("IFRS")                            
The Group has not elected to early adopt any standards in the annual            
reporting period beginning 1 January 2007.                                      
Historical cost convention                                                      
These financial statements have been prepared under the historical cost         
convention.                                                                     
Critical accounting estimates                                                   
The preparation of financial statements in conformity with AIFRS requires the   
use of certain critical accounting estimates.  It also requires management to   
exercise its judgement in the process of applying the Group`s accounting        
policies.  The areas involving a higher degree of judgement or complexity, or   
areas where assumptions and estimates are significant to the financial          
statements, are disclosed in Note 3.                                            
(b)  Principles of consolidation                                                
(i) Subsidiaries                                                                
The consolidated financial statements incorporate the assets and liabilities    
of all subsidiaries of Tawana Resources N.L. as at 31 December 2007 and the     
results of all subsidiaries for the year then ended.  Tawana Resources N.L.     
and its subsidiaries together are referred to in this financial report as the   
Group or the consolidated entity.                                               
Subsidiaries are all those entities (including special purpose entities) over   
which the Group has the power to govern the financial and operating policies,   
generally accompanying a shareholding of more than one-half of the voting       
rights.  The existence and effect of potential voting rights that are           
currently exercisable or convertible are considered when assessing whether      
the Group controls another entity.                                              
Subsidiaries are fully consolidated from the date on which control is           
transferred to the Group.  They are de-consolidated from the date that          
control ceases.                                                                 
The purchase method of accounting is used to account for the acquisition of     
subsidiaries by the Group.                                                      
Intercompany transactions, balances and unrealised gains on transactions        
between Group companies are eliminated.  Unrealised losses are also             
eliminated unless the transaction provides evidence of the impairment of the    
asset transferred.  Accounting policies of subsidiaries have been changed       
where necessary to ensure consistency with the policies adopted by the Group.   
Investments in subsidiaries are carried at cost less impairment losses in the   
individual financial statements of Tawana Resources N.L.                        
(ii) Associates                                                                 
Associates are all entities over which the Group has significant influence      
but not control, generally accompanying a shareholding of between 20% and 50%   
of the voting rights. Investments in associates are accounted for in the        
parent entity financial statements using the cost method and in the             
consolidated financial statements using the equity method of accounting,        
after initially being recognised at cost.                                       
The Group`s share of its associates` post acquisition profits or losses is      
recognised in the income statement, and its share of post-acquisition           
movement in reserves is recognised in reserves.  The cumulative post-           
acquisition movements are adjusted against the carrying amount of the           
investment.  Dividends receivable from associates are recognised in the         
parent entity`s income statement, while in the consolidated financial           
statements they reduce the carrying amount of the investment.                   
When the Group`s share of losses in an associate equals or exceeds its          
interest in the associate, including other unsecured long-term receivables,     
the Group does not recognise further losses, unless it has incurred             
obligations or made payment on behalf of the associate.                         
Unrealised gains on transactions between the Group and its associate are        
eliminated to the extent of the Group`s interest in the associate.              
Unrealised losses are also eliminated unless the transactions provide           
evidence of an impairment of the asset transferred.  Accounting policies of     
associates have been changed where necessary to ensure consistency with the     
policies adopted by the Group.                                                  
(iii) Joint ventures                                                            
Jointly controlled assets                                                       
The proportionate interests in the assets, liabilities and expenses of a        
joint venture activity have been incorporated in the financial statements       
under the appropriate headings.  Details of the joint venture are set out in    
note 14.                                                                        
(c)  Segment reporting                                                          
A business segment is a group of assets and operations engaged in providing     
products or services that are subject to risks and returns that are different   
to those of other business segments.  A geographical segment is engaged in      
providing products or services within a particular economic environment and     
is subject to risks and returns that are different from those of segments       
operating in other economic environments.                                       
(d)  Foreign currency translation                                               
The presentation currency of Tawana Resources N.L. and its subsidiaries is      
Australian dollars (A$). The functional currency of Tawana Resources N.L. is    
Australian dollars and the functional currency of the overseas subsidiaries     
is South African Rand (Tawana Resources S.A. (Pty) Ltd and Diamond Resources    
(Pty) Ltd) and Botswana Pula (Seolo Botswana Pty Ltd).                          
Transactions in foreign currencies are initially recorded in the functional     
currency at the exchange rates prevailing at the date of the transaction.       
Monetary assets and liabilities denominated in foreign currencies are           
retranslated at the rate of exchange prevailing at the balance sheet date.      
As at the reporting date the assets and liabilities of these overseas           
subsidiaries are translated into the presentation currency of Tawana            
Resources N.L. at the rate of exchange prevailing at the balance sheet date     
and the income statements are translated at the weighted average exchange       
rates for the period. Translation differences on non-monetary assets are        
included in the fair value reserve in equity.                                   
On disposal of a foreign entity, the deferred cumulative amount recognised in   
equity relating to that particular foreign entity is recognised in the income   
statement.                                                                      
(e)  Revenue recognition                                                        
Revenue is recognised to the extent that it is probable that the economic       
benefits will flow to the Group and the revenue can be reliably measured. The   
following specific recognition criteria must also be met before revenue is      
recognised.                                                                     
Sale of goods and provision of services                                         
Revenue is recognised when the significant risks and rewards of ownership of    
the goods have passed to the buyer or when the service has been provided, and   
can be measured reliably.  Risks and rewards are considered passed to the       
buyer at the time of delivery of the goods to the customer.                     
Interest                                                                        
Interest is recognised on a time proportion basis using the effective           
interest method.                                                                
(f)  Income tax                                                                 
The income tax expense or revenue for the period is the tax payable on the      
current period`s taxable income based on the applicable income tax rate for     
each jurisdiction adjusted by changes in deferred tax assets and liabilities    
attributable to temporary differences and to unused tax losses.                 
Deferred income tax is provided in full, using the liability method, on         
temporary differences arising between the tax bases of assets and liabilities   
and their carrying amounts in the consolidated financial statements.            
However, the deferred income tax is not accounted for if it arises from         
initial recognition of an asset or liability in a transaction other than a      
business combination that at the time of the transaction affects neither        
accounting nor taxable profit or loss. Deferred income tax is determined        
using tax rates (and laws) that have been enacted or substantially enacted by   
the reporting date and are expected to apply when the related deferred income   
tax asset is realised or the deferred income tax liability is settled.          
Deferred tax assets are recognised for deductible temporary differences and     
unused tax losses only if it is probable that future taxable amounts will be    
available to utilise those temporary differences and losses.                    
Deferred tax liabilities are not recognised for temporary differences between   
the carrying amount and the tax base of investments in controlled entities      
where the parent entity is able to control the timing of the reversal of        
temporary differences and it is probable that the differences will not          
reverse in the foreseeable future.                                              
Deferred tax assets and liabilities are offset when there is a legally          
enforceable right to offset current tax assets and liabilities and when the     
deferred tax balances relate to the same taxation authority.  Current tax       
assets and tax liabilities are offset where the entity has a legally            
enforceable right to offset and intends either to settle on a net basis, or     
to realise the asset and settle the liability simultaneously.                   
Current and deferred tax balances attributable to amounts recognised directly   
in equity are also recognised directly in equity.                               
(g)  Impairment of assets                                                       
Assets, except for exploration and evaluation (refer to note 1 (h)) are         
reviewed for impairment whenever events or changes in circumstances indicate    
that the carrying amount may not be recoverable.  An impairment loss is         
recognised for the amount by which the asset`s carrying amount exceeds its      
recoverable amount.  The recoverable amount is the higher of an asset`s fair    
value less costs to sell and value in use.  For the purposes of assessing       
impairment, assets are grouped at the lowest levels for which there are         
separately identifiable cash inflows which are largely independent of the       
cash inflows from other assets or groups of assets (cash-generating units).     
Non-financial assets other than goodwill that suffered an impairment are        
reviewed for possible reversal of the impairment at each reporting date.        
(h)  Exploration and evaluation expenditure                                     
Exploration and evaluation expenditure incurred is accumulated in respect of    
each identifiable area of interest. The costs are only carried forward to the   
extent that they are expected to be recouped through the successful             
development of the area or where activities in the area have not yet reached    
a stage that permits reasonable assessment of the existence of economically     
recoverable resources and further work is intended to be performed.             
Accumulated costs in relation to an abandoned area will be written off in       
full against profit in the year in which the decision to abandon the area is    
made.                                                                           
When production commences, the accumulated costs for the relevant area of       
interest will be amortised over the life of the area according to the rate of   
depletion of the economically recoverable resources.                            
A regular review is undertaken of each area of interest to determine the        
appropriateness of continuing to carry forward costs in relation to that area   
of interest.                                                                    
(i)  Property, plant and equipment                                              
Plant and equipment is stated at cost less accumulated depreciation and any     
impairment in value.  Land and buildings are stated at cost less accumulated    
depreciation and any impairment in value.  Depreciation is calculated on a      
straight line basis over the estimated useful life of the asset except for      
motor vehicles which is on a diminishing value as follows:                      
Freehold Buildings - over 10 years                                              
Plant and equipment - over 7 years                                              
Motor Vehicle (Australia) - 22.5%                                               
Motor Vehicle (Overseas) - over 4 years                                         
Impairment                                                                      
The carrying values of plant and equipment are reviewed for impairment when     
events or changes in circumstances indicate the carrying value may not be       
recoverable in accordance with note 1 (g).                                      
(j)  Other financial assets                                                     
Investments in subsidiaries are accounted for at cost. Such investments         
include both investments in shares issued by the subsidiary and other parent    
entity interests that in substance form part of the parent entity`s             
investment in the subsidiary. These include investments in the form of          
interest-free loans which have no fixed repayment terms and which have been     
provided to subsidiaries as an additional source of long term capital.          
(k)  Inventories                                                                
Inventories consisting of rough diamonds are stated at lower of cost or         
estimated net realisable value.  Cost comprises direct materials, direct        
labour and an appropriate proportion of variable and fixed overhead             
expenditure.                                                                    
(l)  Trade and other receivables                                                
Trade receivables are recognised initially at fair value and subsequently       
measured at amortised cost using the effective interest method, less            
provision for impairment.  Trade receivables are generally due for settlement   
within 30 days.                                                                 
Collectability of trade receivables is reviewed on an ongoing basis. Debts      
which are known to be uncollectible are written off by reducing the carrying    
amount directly.  An allowance account is used when there is objective          
evidence that the Group will not be able to collect all amounts due according   
to the original terms of the receivables.  Significant financial difficulties   
of the debtor, probability that the debtor will enter bankruptcy or financial   
reorganisation, and default or delinquency in payments are considered           
indicators that the trade receivable is impaired.  The amount of the            
impairment allowance is the difference between the asset`s carrying amount      
and the present value of estimated future cash flows, discounted at the         
original effective interest rate.  Cash flows relating to short-term            
receivables are not discounted if the effect of discounting is immaterial.      
The amount of the impairment loss is recognised in the income statement         
within other expenses.  When a trade receivable for which an impairment         
allowance had been recognised becomes uncollectible in a subsequent period,     
it is written off against the allowance account.  Subsequent recoveries of      
amounts previously written off are credited against other expenses in the       
income statement.                                                               
(m)  Cash and cash equivalents                                                  
Cash and short-term deposits in the balance sheet comprise cash at bank and     
in hand and short-term deposits with an original maturity of three months or    
less that are readily converted into known amounts of cash.  For the purposes   
of the cash flow statement, cash and cash equivalents consist of cash and       
cash equivalents as defined above, net of outstanding bank overdrafts.          
(n)  Employee entitlements                                                      
(i)  Wages and Salaries, Annual Leave and Sick Leave                            
Liabilities for wages and salaries, including non-monetary benefits and         
annual leave expected to be settled within 12 months of the reporting date      
are recognised in other payables in respect of employees` services up to the    
reporting date and are measured at the amounts expected to be paid when the     
liabilities are settled.                                                        
(ii) Share-based payments                                                       
Share-based compensation benefits are provided to employees via the Tawana      
Resources Employee Option Plan and an employee share scheme.  Information       
relating to these schemes is set out in note 27.                                
The fair value of options granted under the Tawana Resources Employee Option    
Plan is recognised as an employee benefit expense with a corresponding          
increase in equity.  The fair value is measured at grant date and recognised    
over the period during which the employees become unconditionally entitled to   
the options.  The Tawana Resource Employee Options plan was approved at the     
2005 Annual General Meeting.                                                    
Long Service Leave                                                              
Liabilities for long service leave are recognised, and are measured as the      
present value of expected future payments to be made in respect of services     
provided by employees.                                                          
(o)  Provisions                                                                 
Provisions are recognised when the Group has a present obligation (legal or     
constructive) as a result of a past event, it is probable that an outflow of    
resources embodying economic benefits will be required to settle the            
obligation and a reliable estimate can be made of the amount of the             
obligation.                                                                     
(p)  Leases - operating                                                         
Leases in which a significant portion of the risks and rewards of ownership     
are retained by the lessor are classified as operating leases.  Payments made   
under operating leases (net of any incentives received from the lessor) are     
charged to the income statement on a straight-line basis over the period of     
the lease.                                                                      
(q)  Provision for rehabilitation                                               
Environmental obligations associated with the retirement or disposal of long    
lived assets will be recognised when the disturbance occurs and is based on     
the extent of damage incurred.  The provision is measured at the present        
value of the future expenditure and a corresponding rehabilitation asset is     
also recognised. On an ongoing basis, the rehabilitation liability will be re-  
measured in line with the changes in the time value of money (recognised as     
an expense in the income statement and an increase in the provision), and       
additional disturbances will be recognised as additions to a corresponding      
asset and rehabilitation liability. The rehabilitation asset will be            
accounted for in accordance with the accounting policy applicable to the        
asset to which it relates (i.e. exploration expenditure).                       
(r)  Trade and other payables                                                   
These amounts represent liabilities for goods and services provided to the      
Group prior to the end of financial year which are unpaid. The amounts are      
unsecured and are usually paid within 30 days of recognition.                   
(s)  Other taxes                                                                
Revenues, expenses and assets are recognised net of the amount of GST except:   
where the GST incurred on a purchase of goods and services is not recoverable   
from the taxation authority, in which case the GST is recognised as part of     
the cost of acquisition of the asset or as part of the expense item as          
applicable;                                                                     
and receivables and payables are stated with the amount of GST included.        
The net amount of GST recoverable from, or payable to, the taxation authority   
is included as part of receivables or payables in the balance sheet.            
Cash flows are included in the cash flow statement on a gross basis and the     
GST component of cash flows arising from investing and financing activities,    
which is recoverable from, or payable to, the taxation authority, are           
classified as operating cash flows.                                             
Commitments and contingencies are disclosed net of the amount of GST            
recoverable from, or payable to, the taxation authority.                        
(t)  Contributed equity                                                         
Ordinary shares are classified as equity.                                       
Incremental costs directly attributable to the issue of new shares are shown    
in equity as a deduction, net of tax, from the proceeds. Incremental costs      
directly attributable to the issue of new shares for the acquisition of a       
business are not included in the cost of the acquisition as part of the         
purchase consideration.                                                         
(u)  Earnings per share                                                         
(i) Basic earnings per share                                                
Basic earnings per share is calculated by dividing the profit (loss)            
attributable to equity holders of the Company, excluding any costs of           
servicing equity other than ordinary shares, by the weighted average number     
of ordinary shares outstanding during the financial year, adjusted for bonus    
elements in ordinary shares issued during the year.                             
(ii) Diluted earnings per share                                                 
Diluted earnings per share adjusts the figures used in the determination of     
basic earnings per share to take into account the after income tax effect of    
interest and other financing costs associated with dilutive potential           
ordinary shares and the weighted average number of shares assumed to have       
been issued for no consideration in relation to dilutive potential ordinary     
shares.                                                                         
(v)  New accounting standards and interpretations                               
Certain new accounting standards and interpretations have been published that   
are not mandatory for the current reporting period. The Group`s assessment of   
the impact of these new standards and interpretations is set out below.         
(i) AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian          
Accounting Standards AASB 8                                                     
AASB 8 and AASB 2007-3 are effective for annual reporting periods commencing    
on or after 1 January 2009.  AASB 8 will result in a significant change in      
the approach to segment reporting, as it required adoption of a `management     
approach` to reporting on financial performance.  The information being         
reported will be based on what the key decision makers use internally for       
evaluating segment performance and deciding how to allocate resources to        
operating segments.  The Group has not yet decided when to adopt AASB 8.        
Application of AASB 8 may result in different segments, segment results and     
different type of information being reported in the segment note of the         
financial report.  However it is not expected to affect any of the amounts      
recognised in the financial statements.                                         
(ii) Revised AASB 123 Borrowing Costs and AASB 2007-6 Amendments to             
Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB   
107,m AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]                 
The revised AASB 123 is applicable to annual reporting periods commencing on    
or after 1 January 2009.  It has removed the option to expense all borrowing    
costs and when adopted will require the capitalisation of all borrowing costs   
directly attributable to the acquisition, construction or production of a       
qualifying asset.  There will be no impact on the financial report of the       
Group, as the Group already capitalised borrowing costs relating to             
qualifying assets.                                                              
(iii) Revised AASB 101 Presentation of Financial Statements and AASB 2007-8     
Amendments to Australian Accounting Standards arising from AASB 101             
A revised AASB 101 was issued in September 2007 and is applicable to annual     
reporting periods beginning on or after 1 January 2009.  It requires the        
presentation of a statement of comprehensive income and makes changes to the    
statement of changes in equity, but will not affect any of the amounts          
recognised in the financial statements. The Group intends to apply the          
revised standard from 1 January 2009.                                           
The following standards, amendments and interpretations to published            
standards are mandatory for accounting periods beginning on or after 1          
January 2007 but they are not relevant to the Group`s operations:               
(i) AASB-I 14 The Limit on a Defined Benefit Asset, Minimum Funding             
Requirements and their Interaction                                              
(ii)  AASB-I 11 AASB 2 - Company and Treasury Share Transactions  and AASB      
2007-1 Amendments to Australian Accounting Standards arising from AASB          
Interpretation 11                                                               
(iii)  AASB-I 12 Service Concession Arrangements, AASB 2007-2 Amendments to     
Australian Accounting Standards arising from AASB Interpretation 12, revised    
UIG 4 Determining whether an Arrangement contains a Lease and revised UIG 129   
Service Concession Arrangements: Disclosures                                    
(iv)  AASB-I 13 Customer Loyalty Programmes                                     
FINANCIAL RISK MANAGEMENT                                                       
The Group`s exploration activities are being funded by equity and do not        
expose the Group to significant financial risks.  There are no speculative or   
financial derivative instruments.  Funds are invested for various short term    
periods to match forecast cash flow requirements.                               
Market risk                                                                     
The Group operates internationally and is exposed to foreign exchange risk      
arising from currency exposure to the South African Rand and Botswana Pula.     
Exposure is limited to maintaining sufficient funds in the particular           
countries to meet expenditure commitments.                                      
Management does not actively manage foreign exchange risk.                      
The Group`s exposure to foreign currency risk at the reporting date was as      
follows:                                                                        
                       31 December 2007     31 December 2006                    
                       ZAR        BWP       ZAR          BWP                    
Trade receivables    74,681     6,598     893,266      7,691                  
  Cash and cash        (88,283)   168,147   13,040,436   103,297                
  equivalents                                                                   
  Trade payables       (256,583)  (262,395) (1,751,017)  (157,396)              
Net Exposure         (270,185)  (87,650)  12,182,685   (46,408)               
The carrying amount of the parent entity`s financial assets and liabilities     
are denominated in Australian dollars.                                          
Based on the financial instruments held at 31 December 2007, had the            
Australian dollar weakened / strengthened by 10% against the other functional   
currencies, with all other variables held constant the Group`s post tax         
losses would increase / decrease by $6,086 (2006: $217,905)                     
Losses are less sensitive to movements in the Australian dollar / South         
African Rand or Botswana Pula exchange rates in 2007 than 2006 because of the   
decreased cash and cash equivalents held in foreign currencies.                 
None of the foreign denominated balances are accounted for as hedges in         
accordance with AASB 139 therefore all foreign exchange movements would be      
recognised within in the current period income statement and within retained    
earnings,                                                                       
Credit risk                                                                     
Management does not actively manage credit risk.                                
The Tawana Resources Group has no significant exposure to credit risk from      
external parties at period end given all of the counterparties to its credit    
exposures are related entities of the Tawana Resource Group. The maximum        
exposure to credit risk from related entities of the Tawana Resources Group     
at the reporting date is equal to the carrying value of financial assets at     
31 December 2007.                                                               
Other receivables are of a low value and all amounts are current. Activity      
with trade debtors is limited and the recoverability has not been brought       
into question.  There is no history of bad debts.                               
Liquidity risk                                                                  
The Tawana Resources Group`s objectives when managing capital are to            
safeguard their ability to continue as a going concern, so that they can        
continue to provide returns for shareholders and benefits for other             
stakeholders and to maintain an optimal capital structure to reduce the cost    
of capital.  In order to maintain or adjust the capital structure, the Group    
may adjust the amount of dividends paid to shareholders, return capital to      
shareholders, issue new shares or sell assets to reduce debt.                   
During 2007, the Group`s strategy, which was unchanged from 2006, was to keep   
borrowings to a minimum.  The company`s equity management is determined by      
funds required to undertake exploration activities and meet its corporate and   
other costs. Where joint venture partners participate in particular projects    
the partners contribute monthly cash calls in proportion to their respective    
interests or as agreed under any buy - in agreement.                            
Cash flow and fair value interest rate risk                                     
As the Tawana Resources Group has no significant interest-bearing assets, the   
Tawana Resources Group`s income and operating cash flows are not materially     
exposed to changes in market interest rates.                                    
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS                                    
Estimates and judgements are continually evaluated and are based on             
historical experience and other factors, including expectation of future        
events that may have a financial impact on the entity and that are believed     
to be reasonable under the circumstances.                                       
Critical accounting estimates and assumptions                                   
The Group makes estimates and assumptions concerning the future.  The           
resulting accounting estimates, will by definition, seldom equal the related    
actual results.  The estimates that have a significant risk of causing a        
material adjustment to the carrying amounts of assets and liabilities within    
the next financial year are discussed below.                                    
Recoverability of exploration expenditure                                       
The Group tests annually whether the exploration and evaluation expenditure     
incurred in identifiable areas of interest is expected to be recouped through   
the successful development of the area or where activities in the area have     
not yet reached a stage that permits reasonable assessment of the existence     
of reserves and further work is expected to be performed.  All expenditure      
that does not meet these criteria is expensed in accordance with note 1(h).     
Activity at the following projects ceased during 2006 and 2007; Pilbara,        
Black Top, Daniel Kimberlite, Riverton and Vleiplaats.  Consequently the        
Company has decided to write-off exploration expenditure relating to these      
projects that was previously capitalised.  Refer to note 13 for details.        
Impairment of assets                                                            
The Group tests annually whether assets have suffered any impairment, in        
accordance with note 1(g). The recoverable amount is based on the net asset     
value of the investment in the subsidiary.  Refer to note 11 for details.       
                                 Consolidated        Parent Entity              
                                 2007      2006      2007      2006             
                                 $         $         $         $                
REVENUE & OTHER INCOME                                                          
                                                                                
Revenue from continuing                                                         
operations                                                                      
Interest Income                   81,088    178,102   2,781     81,787          
Laboratory Income                 38,946    55,099    38,946    55,099          
                                 120,034   233,201   41,727    136,886          
                                                                                
Other income                                                                    
Profit on sale of assets          -         216,242   -         216,242         
                                 -         216,242   -         216,242          
                                                                                

EXPENSES AND (GAINS)/LOSSES                                                     
                                                                                
Other expenses from continuing                                                  
operations includes                                                             
Administration costs              154,531   170,887   113,975   94,614          
Auditors remuneration             100,610   81,071    65,396    43,903          
Listing fees                      48,129    165,378   48,129    165,378         
Occupancy costs                   111,265   83,579    47,258    65,856          
Loss on sale of assets            75,634    -         30,908    -               
Repairs and maintenance           24,549    100,768   -         -               
Other expenses                    20,134    121,715   15,853    -               
534,852   723,398   321,519   369,751          
6.  INCOME TAX                                                                  
(a) Income tax                                                                  
expense                                                                         
Current tax         -             -            -            -                   
Deferred tax        -             -            -            -                   
Income tax expense  -             -            -            -                   
attributable to                                                                 
continuing                                                                      
operations                                                                      
                                                                                
(b) Numerical                                                                   
reconciliation of                                                               
income tax expense                                                              
to prima facie tax                                                              
payable                                                                         
Loss from           (7,386,000)   (4,766,269)  (9,594,713)  (5,819,027)         
continuing                                                                      
operations before                                                               
tax                                                                             
Tax at the                                                                      
Australian rate of                                                              
30% (2006 - 30%)                                                                
Prima facie tax     (2,215,800)   (1,429,881)  (2,878,414)  (1,745,708)         
(credit) on loss                                                                
from ordinary                                                                   
activities                                                                      
Tax effect of                                                                   
amounts that are                                                                
not deductible                                                                  
(taxable) in                                                                    
calculating taxable                                                             
income:                                                                         
Impairment of       -             -            801,184      636,508             
investments                                                                     
                                                                                
Benefit of tax      2,180,204     1,429,881    2,077,230    1,109,200           
losses not brought                                                              
to account                                                                      
                   (35,596)      -            -            -                    
Difference in       35,596        -            -            -                   
overseas tax rates                                                              
Income Tax Expense  -             -            -            -                   
 1.1                                                                            

INCOME TAX (continued)                                                          
(c) Amounts recognised directly in equity                                       
No amounts in respect of tax expense or benefit have been included directly     
in equity.                                                                      
                      Consolidated              Parent Entity                   
                      2007         2006         2007         2006               
                      $            $            $            $                  

(d) Tax losses                                                                  
Unused tax losses for  31,228,288   27,396,459   19,386,128   15,657,273        
which no benefit has                                                            
been recognised                                                                 
Potential tax benefit  9,231,257    8,142,082    5,815,838    4,697,182         
at applicable rate                                                              
(30% Australia, 29%                                                             
South Africa, 15%                                                               
Botswana)                                                                       
                                                                                
The future income tax benefit attributable to these losses has not been         
brought to account because the benefit is not probable of realisation.          
The potential future income tax benefits which may arise from these losses      
will only be realised if:                                                       
*    The group derives future assessable income of a nature and sufficient      
amount to enable the benefit of the losses to be realised;                      
*    The group continues to comply with the conditions of deductibility         
imposed in each legislative environment, and                                    
*    No changes in tax legislation adversely affect the group in                
realising the benefit from the deduction for the losses.                        
                                                                                
(e) Deferred tax                                                                
liabilities                                                                     
Prepaid expenditure    5,097        -             5,097        -                
Capitalised mineral    2,390,240    3,603,761     1,359,584    2,679,434        
exploration                                                                     
expenditure                                                                     
Set off deferred tax   (2,395,337)  (3,603,761)   (1,364,681)  (2,679,434)      
assets - tax losses                                                             
                                                                                
CASH AND CASH                                                                   
EQUIVALENTS                                                                     
                                                                                
Cash at bank and in    145,227      2,408,541     129,396      31,700           
hand                                                                            
Deposits at call       4,635        246,858       4,635        246,858          
                      149,862      2,655,399     134,031      278,558           
(a) Reconciliation to cash at the end of the year                               
The above figures are reconciled to cash at the end of the financial year       
as shown in the statement of cash flows as follows:                             
Balance as above       149,862      2,655,399     134,031      278,558          
Balance per statement  149,862      2,655,399     134,031      278,558          
of cash flows                                                                   
(b) Cash at bank and                                                            
on hand                                                                         
These are non-interest bearing.                                                 
(c) Deposits at call                                                            
The deposits are bearing floating interest rates between 6.10% and 6.60%.       
These deposits have a maturity of less than 30 days.                            
                      Consolidated               Parent Entity                  
                      2007         2006          2007         2006              
$            $             $            $                 
TRADE AND OTHER                                                                 
RECEIVABLES                                                                     
Current                                                                         
Trade debtors (b)      23,990       89,557        12,426       79,014           
VAT receivable         -            412,034       -            -                
Other debtors (c)      64,991       59,640        64,991       59,640           
                      88,981       561,231       77,417       138,654           

Non Current                                                                     
Other (d)              47,423       51,291        -            -                
                      47,423       51,291        -            -                 

There is no Director and Director related entity receivable.                    
Trade debtors are non-interest bearing and have repayment terms between 30      
and 90 days.  Their cost approximates fair value.                               
Other debtors consist of prepayments and is non-interest bearing.               
Non-current assets are a deposit with the South African Department of           
Minerals and Energy Affairs from Tawana Resources S.A. (Pty) Ltd for mine       
rehabilitation costs which is only refundable once the rehabilitation has       
been completed.                                                                 
                      Consolidated               Parent Entity                  
                      2007         2006          2007         2006              
                      $            $             $            $                 
INVENTORIES                                                                     
Current                                                                         
Rough diamonds - at    76,818       94,181        -            -                
lower of cost and                                                               
recoverable value                                                               
                                                                                
INVESTMENT IN                                                                   
ASSOCIATE                                                                       

Vecto Trade 436 (Pty)  16,640       -             16,640       -                
Ltd - at cost                                                                   
Tawana Resources N.L. acquired 30% of the issued shares in Vecto Trade 436      
(Pty) Ltd in September 2007 for the purpose of pursuing the St Augustines       
Project.  No expenditure has been committed to date.  The associate has been    
dormant in its operations pending the outcome of a Judicial Review over the     
Prospecting Rights for this project area.                                       
OTHER FINANCIAL ASSETS                                                          
Non-current                                                                     
Investment in          -            -             11,623,380   12,795,181       
subsidiaries - at cost                                                          
Less: Accumulated      -            -             (7,735,642)  (5,065,030)      
impairment losses                                                               
                      -            -             3,887,738    7,730,151         
The investment in subsidiaries includes non-interest bearing long-term          
receivables, which have no fixed repayment terms.  The investment in            
subsidiaries has been written down to their recoverable value of the            
subsidiary.  The current year impairment expense is $2,670,612 (2006            
$2,145,166)                                                                     
Consolidated               Parent Entity                  
                      2007         2006          2007         2006              
                      $            $             $            $                 
Movement in impairment                                                          
Foreign currency       -            -             1,651,625    -                
translations                                                                    
Tawana SA (Pty) Ltd    -            -             1,018,987    2,145,166        
Diamond Resources      -            -             -            (23,474)         
(Pty) Ltd                                                                       
                      -            -             2,670,612    2,121,692         
Investments have been impaired to their recoverable value.                      
PROPERTY, PLANT &                                                               
EQUIPMENT                                                                       
Land and buildings -   369,865      400,033       -           -                 
at cost                                                                         
Accumulated            (95,715)     (66,145)      -           -                 
depreciation                                                                    
                      274,150      333,888       -           -                  
                                                                                
Plant and equipment -  2,153,231    2,347,020     1,151,233   1,310,004         
at cost                                                                         
Accumulated            (1,642,784)  (1,433,409)   (708,371)   (531,590)         
depreciation                                                                    
                      510,447      913,611       442,862     778,414            

Motor vehicles - at    185,308      224,553       -           -                 
cost                                                                            
Accumulated            (119,016)    (100,505)     -           -                 
depreciation                                                                    
                      66,292       124,048       -           -                  
                      850,889      1,371,547     442,862     778,414            
Movement in Carrying                                                            
Value                                                                           
Freehold Land and                                                               
Buildings                                                                       
Carrying value at 1    333,888      1,993,882     -           1,550,000         
January                                                                         
Disposals              -            (1,498,333)   -           (1,498,333)       
Foreign currency       (24,726)     (69,678)                  -                 
translation                                                                     
Depreciation expense   (35,012)     (91,983)      -           (51,667)          
Carrying Value at 31   274,150      333,888       -           -                 
December                                                                        
                                                                                
Plant and Equipment                                                             
Carrying value at 1    913,611      1,666,379     778,414     1,060,779         
January                                                                         
Additions              44,726       8,570         -           -                 
Disposals              (78,475)     -             (77,575)    -                 
Foreign currency       (3,940)      (69,201)      -           -                 
translation                                                                     
Depreciation expense   (365,475)    (692,137)     (257,977)   (282,365)         
Carrying Value at 31   510,447      913,611       442,862     778,414           
December                                                                        
                                                                                
Motor Vehicles                                                                  
Carrying value at 1    124,048      199,724       -           -                 
January                                                                         
Additions              -            1,867         -           -                 
Disposals              (12,271)     -             -           -                 
Foreign currency       (9,183)      (29,145)      -           -                 
translation                                                                     
Depreciation expense   (36,302)     (48,398)      -           -                 
Carrying Value at 31   66,292       124,048       -           -                 
December                                                                        
                                                                                
EXPLORATION EXPENDITURE                                                         
The exploration and evaluation expenditure relates to the economic              
entity`s projects in South Africa, Botswana and Australia.  Exploration in      
Australia is operated under a joint venture as set out in note 14.              
                     Consolidated                Parent Entity                  
                     2007          2006          2007       2006                
$             $             $          $                   
At cost               14,064,021    12,037,202    4,531,948  8,931,447          
                     14,064,021    12,037,202    4,531,948  8,931,447           
Expenditure brought   12,037,202    9,749,360     8,931,447  7,109,772          
forward at the                                                                  
beginning of the year                                                           
Expenditure in the    928,417       1,460,567     594,754    994,400            
year, excluding joint                                                           
venture activities                                                              
Expenditure in the    294,666       3,266,852     294,666    3,266,852          
year, under joint                                                               
venture arrangements                                                            
(refer note 14)                                                                 
Expenditure written   (5,288,919)   (2,439,577)   (5,288,919 (2,439,577)        
off during the year                               )                             
Expenditure carried   7,971,366     12,037,202    4,531,948  8,931,447          
forward at the end of                                                           
the year                                                                        
                                                                                
Expenditure written off during the year is as follows:                          
Australian projects   3,142,767     2,439,577     3,142,767  2,439,577          
South African         2,146,152     -             2,146,152  -                  
projects                                                                        
                     5,288,919     2,439,577     5,288,919  2,439,577           

INTEREST IN JOINT                                                               
VENTURE                                                                         
The economic entity has a majority interest in one unincorporated               
exploration joint venture.  Total expenditure to date is capitalised in         
the balance sheet as Exploration Expenditure and the total value of the         
write down of JV assets in 2007 was $3,063,292 (2006: Nil)                      
                     Consolidated                Parent Entity                  
2007          2006          2007       2006                
                     %             %             %          %                   
% Interest held in                                                              
joint venture                                                                   
- Pilbara joint       66.66         66.66         66.66      66.66              
venture                                                                         
                                                                                
                     $             $             $          $                   
Carrying amount of    498,226       3,266,852     498,226    3,266,852          
investment in                                                                   
exploration                                                                     
activities (refer                                                               
note 13)                                                                        
                                                                                
Share of joint                                                                  
venture                                                                         
assets/liabilities                                                              
Non-current assets    498,226       3,266,852     498,226    3,266,852          
Net assets            498,226       3,266,852     498,226    3,266,852          
Share of joint                                                                  
venture                                                                         
revenue/expenses                                                                
Revenues              -             -             -          -                  
Expenses              -             -             -          -                  
Loss before income    -             -             -          -                  
tax                                                                             
Share of joint                                                                  
venture commitments                                                             
Expenditure           116,988       1,359,000     116,988    1,359,000          
commitments                                                                     
Total commitments     116,988       1,359,000     116,988    1, 359,000         
                                                                                
Consolidated               Parent Entity                  
                      2007         2006          2007        2006               
                      $            $             $           $                  
TRADE AND OTHER                                                                 
PAYABLES                                                                        
Current                                                                         
Trade creditors (a)    110,761      117,158       22,510      117,158           
Other creditors        32,000       363,506       32,000      2,732             
142,761      480,664       54,510      119,890            
Trade creditors are non-interest bearing and are normally settled on 30 day     
terms. Their carrying value approximates their fair value.                      
Non-hedged foreign currency payables consist of $A 88,251 and is                
represented by South African Rand of 244,170 and Botswana Pula of 262,395.      
These are non-interest bearing and their carrying value approximates their      
fair value.                                                                     
                      Consolidated               Parent Entity                  
2007         2006          2007        2006               
                      $            $             $           $                  
PROVISIONS                                                                      
Current                                                                         
Provision for          116,389      71,760        116,389     71,760            
employee entitlements                                                           
Movement in provision                                                           
for employee                                                                    
entitlements                                                                    
Carrying amount at     71,760       -             71,760      -                 
start of the year                                                               
Leave taken            (46,088)     -             (46,088)    -                 
Annual leave           57,717       71,760        57,717      71,760            
provision recognised                                                            
Long service leave     33,000       -             33,000      -                 
provision recognised                                                            
Carrying amount at     116,389      71,760        116,389     71,760            
end of year                                                                     
                                                                                
Nature and obligation                                                           
of provision                                                                    
The employee entitlements relate to annual leave which has accrued and is       
due and payable.                                                                
                                                                                
Non-current                                                                     
Provision for          30,784       51,291        -           -                 
rehabilitation                                                                  
                                                                                
Movement in provision                                                           
for rehabilitation                                                              
Carrying amount at     51,291       13,427        -           -                 
start of the year                                                               
Unused amounts         (16,639)     -             -           -                 
reversed                                                                        
Foreign currency       (3,868)      (5,348)       -           -                 
translation and other                                                           
movements                                                                       
Additional provisions  -            43,212        -           -                 
recognised                                                                      
Carrying amount at     30,784       51,291        -           -                 
end of year                                                                     
                                                                                
Nature and obligation                                                           
of provision                                                                    
The provision has been raised with regard to exploration sites which are        
required to be rehabilitated once the exploration activity ceases.              
NON CURRENT                                                                     
LIABILITIES                                                                     
-            -             7,692       7,692              
Non-interest bearing                                                            
loans                                                                           
                                                                                
Consolidated               Parent Entity                  
                      2007         2006          2007        2006               
                      $            $             $           $                  
CONTRIBUTED EQUITY                                                              

Issued and paid up     33,339,335   32,544,335    33,339,335  32,544,335        
capital                                                                         
                                                                                
Ordinary Shares                                                                 
Movements in ordinary share capital of the company during the past year         
were as follows:                                                                
Details                2007         2006          2007        2006              
No. of       No. of        $           $                  
                      Shares       Shares                                       
Beginning of           87,097,481   65,609,529    32,544,335  25,744,021        
financial year                                                                  
Options exercised      -            -             -           -                 
during the year(*)                                                              
Employee options       -            -             -           -                 
issued during the                                                               
year                                                                            
Shares allotted        5,300,000    21,487,952    795,000     6,800,314         
during the year                                                                 
(**)(i)                                                                         
End of financial year  92,397,481   87,097,481    33,339,335  32,544,335        
                                                                                
* Weighted average     Nil          Nil                                         
issue price                                                                     
** Weighted average    15 cents     31.65 cents                                 
issue price                                                                     
(i) Net of share issue costs of Nil.  The shares allotted were the result of    
a placement to institutional and sophisticated investors.  Each share was       
issued with a free attached option exercisable at 15 cents on or before 11      
September 2011.  The funds were used for the Riverton Project, for the          
construction of the trail mining plant at Kareevlei Wes and working capital.    
Ordinary shares participate in dividends and the proceeds on winding up of      
the parent entity in proportion to the number of shares held.                   
At shareholders meetings each ordinary share is entitled to one vote when a     
poll is called, otherwise each shareholder has one vote on a show of hands.     
Ordinary shares participate in dividends and the proceeds on winding up of      
the parent entity in proportion to the number of shares held.                   
Options                                                                         
Movements in listed options of the company during the past year were as         
follows                                                                         
Details                           2007            2006                         
                                   No. of Options  No. of                       
                                                   Options                      
 Beginning of financial year       22,344,144      21,869,144                   
Granted during the year           -               475,000                      
 Exercised during the year         -               -                            
 Lapsed during the year            -               -                            
 End of financial year             22,344,144      22,344,144                   

 * Weighted average exercise       $1.00           $1.00                        
 price of options                                                               
Information relating to the Tawana Resources Employee Option Plan, including    
details of options issued, exercised and lapsed during the financial year and   
options outstanding at the end of the financial year, is set out in note 27.    
Unlisted options                                                                
Unlisted Options to acquire ordinary shares have been granted to directors,     
staff and contractors and consultants.  No voting or other rights are           
attached to the options.  1,640,000 options have been granted of which          
760,000 have vested.  Details are set out in the Remuneration Report under      
Share Based Compensation Schemes.                                               
Consolidated               Parent Entity                  
                      2007         2006          2007        2006               
                      $            $             $           $                  
RESERVES                                                                        

Foreign currency       (2,409,056)  (1,691,089)   -           -                 
translation reserve                                                             
(a)                                                                             
Option reserve (b)     237,439      183,563       237,439     183,563           
Asset revaluation      22,884       22,884        22,884      22,884            
reserve (c)                                                                     
                      (2,148,733)  (1,484,642)   260,323     206,447            
(a) Movement in                                                                 
Foreign Currency                                                                
Translation Reserve                                                             
Balance at beginning   (1,691,089)  (179,431)     -           -                 
of year                                                                         
Currency translation   (717,967)    (1,511,658)   -           -                 
differences                                                                     
                      (2,409,056)  (1,691,089)   -           -                  

(b) Movement in                                                                 
Option Reserve                                                                  
Balance at beginning   183,563      136,000       183,563     136,000           
of year                                                                         
Cost of share based    53,876       47,563        53,876      47,563            
payments                                                                        
                      237,439      183,563       237,439     183,563            

(c) Movement in Asset                                                           
Revaluation Reserve                                                             
Balance at beginning   22,884       22,884        22,884      22,884            
of year                                                                         
                      22,884       22,884        22,884      22,884             
(d) Nature and Purpose of Reserves                                              
(i) Foreign Currency Translation Reserve                                        
Exchange differences arising on translation of the foreign controlled           
entities are taken to the foreign currency translation reserve, as described    
in note 1 (c).                                                                  
(ii) Option Reserve                                                             
This share based payment reserve is used to recognise the fair value of         
options issued but not exercised.                                               
(iii) Asset Revaluation Reserve                                                 
This is an historical reserve and there is no movement in the current or        
prior years.                                                                    
                      Consolidated               Parent Entity                  
                      2007         2006          2007        2006               
                      $            $             $           $                  
ACCUMULATED LOSSES                                                              
                                                                                
Balance at beginning   14,892,557   10,126,288    15,092,900  9,273,873         
of year                                                                         
Current period losses  7,386,000     4,766,269    9,594,713   5,819,027         
                      22,278,557   14,892,557    24,687,613  15,092,900         
KEY MANAGEMENT PERSONNEL DISCLOSURES                                            
Directors                                                                       
The following persons were directors of Tawana Resources NL during the          
financial year:                                                                 
  Name                Position                                                  
  B. Phillips         Non-executive Chairman                                    
W. Marx             Managing Director                                         
  E. Luff             Non-executive Director                                    
Other key management personnel                                                  
The following persons also had authority and responsibility for planning,       
directing and controlling the activities of the group, directly or              
indirectly, during the financial year:                                          
  Name                Position                  Employer                        
  A. Berryman         Laboratory Manager        Tawana Resources N.L.           
C. Bailey           General Manager           Tawana Resources N.L.           
Key management personnel compensation                                           
The company has taken advantage of the relief provided by Corporation           
Regulations 2M.6.04 and has transferred the detailed remuneration disclosures   
to the directors` report.  The relevant information can be found in pages 15    
to 17 of the remuneration report.                                               
Aggregate Key Management Personnel compensation by category is as follows;      
                   Short- Term  Post           Share        Total               
Benefits     Employment     Based                            
                                Benefits       Payment                          
                   Cash Salary  Superannuation Options                          
                   and Fees                                                     
$            $              $            $                   
  2007 Aggregate   480,837      108,238        30,425       619,500             
  2006 Aggregate   817,639      173,912        43,850       1,035,401           
Equity instrument disclosures relating to key management personnel              
(i)   Options Provided as Remuneration and Shares Issued on Exercise of such    
Options                                                                         
Details of options provided as remuneration and shares issued on the exercise   
of such options, together with terms and conditions of the options, can be      
found in the remuneration report on pages 15 to 17.                             
(ii)  Option Holdings                                                           
The numbers of options over ordinary shares in the company held during the      
financial year by each director of Tawana Resources N.L. and other key          
management personnel of the Group, including their personally related parties   
are set out below:                                                              
2007                                                                            
Name          Balance    Granted   Exer-     Other      Balance    Vested       
at start   during    cised     acquisi-   at end of  and exer-     
             of year    the year  during    tions      year       cisable       
                                  the year  during                at end of     
                                            the year              year          
Directors                                                                       
W. Marx       1,999,500  -         -         -          1,999,500  1,999,500    
B. Phillips   41,133     -         -         -          41,133     41,133       
E. Luff       1,854,812  500,000   -         666,650    3,021,462  2,688,128    

                                                                                
Other Key                                                                       
Management                                                                      
Personnel of                                                                    
the Group                                                                       
A. Berryman   100,000    -         -         -          100,000    66,666       
C. Bailey     150,000    250,000   -         -          400,000    183,333      
No options are vested and unexercisable at the end of the year.                 
2006                                                                            
Name          Balance    Granted   Exer-     Other      Balance    Vested and   
             at start   during    cised     acquisi-   at end of  exer-         
of year    the year  during    tions      year       cisable at    
                                  the year  during                end of        
                                            the year              year          
Directors                                                                       
W. Marx       1,999,500  -         -         -          1,999,500  1,999,500    
B. Phillips   41,133     -         -         -          41,133     41,133       
L. Daniels    1,797,166  -         -         -          1,797,166  1,797,166    
E. Luff       1,854,812  -         -         -          1,854,812  1,854,812    

                                                                                
Other Key                                                                       
Management                                                                      
Personnel of                                                                    
the Group                                                                       
B. Tambanis   -          1,000,00  -         -          1,000,000  1,000,000    
                        0                                                       
A. Berryman   -          100,000   -         -          100,000    33,333       
C. Bailey     -          150,000   -         -          150,000    50,000       
No options are vested and unexercisable at the end of the year.                 
(iii) Shareholdings                                                             
The number of shares in the company held during the financial year by each      
director of Tawana Resources N.L. and other key management personnel of the     
Group, including their related parties, are set out below. There were no        
shares granted during the reporting period as compensation.                     
2007                                                                            
Name         Balance at      Received       Other          Balance at           
            start of year   during the     acquisitions   the end of            
            (Ordinary       year on        during the     the year              
Shares)         exercise of    year           (Ordinary             
                            options                       Shares)               
Directors                                                                       
of Tawana                                                                       
Resources                                                                       
N.L.                                                                            
W. Marx      6,148,500       -              100,000        6,248,500            
B. Phillips  194,800         -              -              194,800              
E. Luff      6,443,620       -              1,818,650      8,262,270            
                                                                                
Other Key                                                                       
Management                                                                      
Personnel                                                                       
of the                                                                          
Group                                                                           
A. Berryman  -               -              -              -                    
C. Bailey    -               -              -              -                    
2006                                                                            
Name         Balance at      Received       Other          Balance at           
            start of year   during the     acquisitions   the end of            
(Ordinary       year on        during the     the year              
            Shares)         exercise of    year           (Ordinary             
                            options                       Shares)               
Directors                                                                       
of Tawana                                                                       
Resources                                                                       
N.L.                                                                            
W. Marx      5,998,500       -              150,000        6,148,500            
B. Phillips  123,400         -              71,400         194,800              
L. Daniels   5,391,499       -              25,501         5,417,000            
E. Luff      5,564,436       -              879,184        6,443,620            
                                                                                
Other Key                                                                       
Management                                                                      
Personnel                                                                       
of the                                                                          
Group                                                                           
H. Hill      -               -              -              -                    
B. Tambanis  -               -              -              -                    
A. Berryman  -               -              -              -                    
C. Bailey    -               -              -              -                    
Loans to key management personnel                                               
There were no loans to key management personnel of the Group, including their   
personally related parties.                                                     
Other transactions with key management personnel                                
Mr E. Luff, a director of Tawana Resources N.L. is a senior partner of the      
legal firm Wilmoth Field and Warne which received legal fees of $4,415 (2006    
$154,803) for the provision of legal services. These services were provided     
on normal commercial terms and conditions.                                      
Mr A.B. Horwitz, a director of the subsidiary Tawana Resources S.A. (Pty) Ltd   
is a partner of A.B. Horwitz & Associates , a law firm in Kimberly, South       
Africa which received an amount of Nil - Rand Nil (2006: A$28,363 - Rand        
146,110) during the year. This payment was based on normal commercial terms     
and conditions.                                                                 
Aggregate amounts of each of the above types of other transactions with key     
personnel of the Group:                                                         
Consolidated         Parent Entity                   
                           2007      2006       2007       2006                 
                           $         $          $          $                    
                                                                                
Amounts recognised as                                                           
expense                                                                         
Legal fees                  4,415     183,266    4,415      183,266             
                                                                                
There is no amounts payable to or receivable from key management personnel of   
the Group at the balance date.                                                  
DETAILS OF CONTROLLED    Book value of             Interest held by the         
ENTITIES AND THE         investment                economic entity              
COMPANY                                                                         
                        2007        2006          2007         2006             
                        $           $             %            %                
                                                                                
Controlled entities                                                             
Seolo Botswana (Pty)     555,080     358,892       100          100             
Ltd (ii)                                                                        
Tawana Resources S.A.    3,332,653   7,371,253     100          100             
(Pty) Ltd (iii)                                                                 
Diamond Resources (Pty)  -           -             100          100             
Ltd (iv)                                                                        
                        3,887,733   7,730,145                                   

Joint venture                                                                   
Tawana Diamonds          5           5             66.6         66.6            
Australia P/L(v)                                                                
(i)  Tawana Resources N.L. is incorporated in Australia.                        
(ii) Seolo Botswana (Pty) Ltd is incorporated in Botswana. Tawana Resources     
SA (Pty) Ltd is incorporated in South Africa.                                   
Diamond Resources (Pty) Ltd is incorporated in South Africa.                    
Tawana Diamonds Australia P/L is incorporated in Australia.                     
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                          
                     2007         2006          2007          2006              
                     $            $             $             $                 
Segment Revenue                                                                 
External sales        38,946       55,099        -             -                
Intersegment sales    -            -             212,415       202,855          
Other revenue         2,781        81,787        78,307        96,315           
Total Segment         41,727       136,886       290,722       299,170          
revenue                                                                         
                                                                                
Segment Expenses                                                                
Segment expenses      (4,527,786   (3,631,366)   (5,648,860)   (3,489,796)      
Intersegment          -            -             (212,415)     (202,855)        
expenses                                                                        
Unallocated expenses  -            -             -             -                
Total Segment         (4,527,786)  (3,631,366)   (5,861,275)   (3,692,651)      
expense                                                                         
                                                                                
Segment Assets                                                                  
Segment assets        855,258      4,025,106     12,242,151    20,483,588       
Unallocated assets    -            -             -             -                
Total Segment         855,258      4,025,106     12,242,141    20,483,588       
Assets                                                                          

Segment Liabilities                                                             
Segment liabilities   (170,899)     (191,650)    (4,014,465)   (8,149,908)      
Unallocated           -             -            -             -                
liabilities                                                                     
Total Segment         (170,899)     (191,650)    (4,014,465)   (8,149,908)      
liabilities                                                                     
                                                                                
Other                                                                           
Acquisition of non-                                                             
current segment                                                                 
assets                                                                          
- Exploration assets  318,121       4,261,252    904,962       466,167          
- Property plant and  -             -            -             10,437           
equipment                                                                       
Depreciation          257,977       334,031      178,812       498,784          
Foreign exchange      -             27,457       -             34,204           
losses / (gain)                                                                 
Impairment of assets  2,670,612     2,121,692    -             -                
Exploration written   3,063,292     2,439,577    2,225,627     -                
off                                                                             
                      Eliminations               Consolidated Entity            
                      2007         2006          2007          2006             
                      $            $             $             $                
Segment Revenue                                                                 
External sales         -            -             38,946        55,099          
Intersegment sales     (212,415)    (202,855)     -             -               
Other revenue          -            -             81,088        178,102         
Total Segment revenue  (212,415)    (202,855)     120,034       233,201         
                                                                                
Segment Expenses                                                                
Segment expenses       2,670,612    2,121,692     (7,506,034)   (4,999,470)     
Intersegment expenses  212,415      202,855       -             -               
Unallocated expenses   -            -             -             -               
Total Segment expense  2,883,027    2,324,547     (7,506,034)   (4,999,470)     
                                                                                
Segment Assets                                                                  
Segment assets         (3,895,430)  (7,737,843)   9,201,979     16,770,851      
Unallocated assets     -            -             -             -               
Total Segment          (3,895,430)  (7,737,843)   9,201,979     16,770,851      
Assets                                                                          
                                                                                
Segment Liabilities                                                             
Segment liabilities    3,895,430    7,737,843     (289,934)     (603,715)       
Unallocated            -            -             -             -               
liabilities                                                                     
Total Segment          3,895,430    7,737,843     (289,934)     (603,715)       
liabilities                                                                     

Other                                                                           
Acquisition of non-                                                             
current segment assets                                                          
- Exploration assets   -             -            1,223,083     4,727,419       
- Property plant and   -             -            -             10,437          
equipment                                                                       
Depreciation           -             -            436,789       832,815         
Foreign exchange       -             -            -             61,661          
losses / (gain)                                                                 
Impairment of assets   (2,670,612)   (2,121,692)  -             -               
Exploration written    -             -            5,288,919     2,439,577       
off                                                                             
Secondary Reporting - Business Segments                                         
The entity operates solely in the area of mineral exploration                   
                        Consolidated             Parent Entity                  
2007         2006        2007          2006             
                        $            $           $             $                
AUDITORS` REMUNERATION                                                          
                                                                                
PricewaterhouseCoopers   65,396       40,085      65,396        40,085          
Australian firm                                                                 
Audit and review of                                                             
financial reports and                                                           
other audit work under                                                          
the Corporations Act                                                            
2001                                                                            
Related practices of                                                            
PricewaterhouseCoopers                                                          
Australian firm                                                                 
Audit of the group`s     35,214       37,169      -             -               
subsidiaries                                                                    
Total Audit Fees         100,610      77,254      65,396        40,085          
                                                                                
EARNINGS PER SHARE                                                              
                                                                                
Basic earnings/(loss)    (0.083)      (0.061)                                   
per share                                                                       
Diluted earnings/(loss)  (0.083)      (0.061)                                   
per share                                                                       

Weighted average number                                                         
of ordinary shares used                                                         
in the calculation of :                                                         
Basic earnings/ (loss)   88,723,782   78,144,168                                
per share                                                                       
Diluted earnings/(loss)  88,723,782   78,144,168                                
per share                                                                       
Listed options and unlisted options over ordinary shares could potentially      
dilute earnings per share, but have been excluded from the calculation of       
diluted earnings per share because of the uncertainty that the option will be   
exercised.                                                                      
RELATED PARTY TRANSACTIONS                                                      
Parent entity                                                                   
Tawana Resources N.L. is the ultimate Australian parent company                 
Subsidiaries                                                                    
Interests in subsidiaries are set out in note 22.                               
Key management personnel                                                        
Disclosures relating to key management personnel are set out in note 21.        
Outstanding balances arising from sale/purchase of goods and services           
No balances are outstanding at the reporting date in relation to transactions   
with related parties.                                                           
Terms and conditions                                                            
All related party transactions were made on normal commercial terms and         
conditions except that there are no fixed terms for repayment of loans          
between the parties and no interest is charged on loans.                        
26. RELATED PARTY TRANSACTIONS (continued)                                      
Transactions with related parties                                               
The following transactions occurred with related parties:                       
                        Consolidated             Parent Entity                  
                        2007         2006        2007          2006             
                        $            $           $             $                

Legal fees               4,415        154,903     4,415         154,903         
(Wilmoth Field and                                                              
Warne, a legal firm of                                                          
which Mr E. Luff is a                                                           
senior partner received                                                         
legal fees for the                                                              
provision of legal                                                              
services)                                                                       
Legal fees               -            28,363      -             -               
(A.B. Horwitz &                                                                 
Associates, a legal firm                                                        
in Kimberley controlled                                                         
by A.B. Horwitz, who is                                                         
a director of the                                                               
subsidiary, Tawana                                                              
Resources SA (Pty) Ltd                                                          
received payment for                                                            
services)                                                                       
Prospecting fees         -            -           212,415       202,855         
(Prospecting fees were                                                          
paid by Tawana Resources                                                        
N.L. to its two                                                                 
subsidiaries, Tawana                                                            
Resources SA (Pty) Ltd                                                          
and Diamond Resources                                                           
(Pty) Ltd for                                                                   
prospecting services)                                                           
4,415        183,266     216,830       357,758          
Loans to/from related parties                                                   
                        Consolidated             Parent Entity                  
                        2007         2006        2007          2006             
Loans to subsidiaries    $            $           $             $               
Beginning of the year    -            -           7,652,577     5,515,404       
Loans advanced           -            -           196,188       4,258,865       
Loans repaid             -            -           (1,367,989)   -               
Impairment recognised    -            -           (2,670,612)   (2,121,692      
                                                               )                
End of year              -            -           3,810,164     7,652,577       
These loans are included in the net investments in subsidiaries.  Refer to      
Note 11.                                                                        
Loans from subsidiaries                                                         
Beginning of the year    -            -           7,692         7,692           
End of year              -            -           7,692         7,692           
These loans are included in non current liabilities.  Refer to Note 17.         
SHARE-BASED PAYMENTS                                                            
Employee Option Plan                                                            
The establishment of the Tawana Resources Employee Option Plan was approved     
by shareholders at the 2005 annual general meeting.                             
All staff are eligible to participate in the plan.  Options are granted under   
the plan for no consideration.  Option are granted for a five year period,      
and 1/3 vests on the date of granting the options, 1/3 on the first             
anniversary of the date of granting and 1/3 on the second anniversary of the    
date of granting.                                                               
Options are granted under the plant carry no dividends or voting rights.        
When exercisable, each option is converted into one ordinary share.             
Set out below is a summary of options granted under the plan:                   
Consolidated and parent entity                                                  
Grant Date  Expiry     Exercise   Balance at   Granted     Exercised            
           Date       price      start of     during the  during the            
year         year        year                  
                      $          Number       Number      Number                
30/11/06    30/11/11   0.35       390,000      -           -                    
30/11/06    30/11/11   0.35       250,000      -           -                    
31/05/07    30/11/11   0.35       -            500,000     -                    
25/06/07    30/11/11   0.35       -            500,000     -                    
                                                                                
                                 $            $                                 
Weighted average exercise price   0.35         0.35                             
                                                                                
Grant Date  Expiry     Exercise   Expired      Balance at  Exercisable          
           Date       price      during the   end of year at end of             
year                     year                  
                      $          Number       Number      Number                
30/11/06    30/11/11   0.35       -            390,000     260,000              
30/11/06    30/11/11   0.35       -            250,000     166,667              
31/05/07    30/11/11   0.35       -            500,000     166,667              
25/06/07    30/11/11   0.35       -            500,000     166,667              
                                                                                
                                              $           $                     
Weighted average                               0.35        0.35                 
exercise price                                                                  
No options were forfeited during the periods covered by the above table.        
The fair value of options granted                                               
The assessed fair value at grant date of options granted to the individuals     
is allocated equally over the period from grant date to vesting date, and the   
amount is remuneration. Fair values at grant date are independently             
determined using a Binominal Tree 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.                                                             
No Directors or employees exercised options during 2007.                        
The model inputs for options granted during the year ended 31 December          
2007 included:                                                                  
(a)   options are granted for no consideration, 33.3% of each tranche           
vests and is exercisable on the date of granting ,and on the two           
     anniversary days of granting                                               
(b)   exercise price: $0.35 (2006 - $0.35)                                      
(c)   500,000 options were granted on 31 May 2007 and 500,000 options           
were granted on 25 June 2007 (2006 - 30 November 2006)                     
(d)   expiry date: 30 November 2011 (2006 - 30 November 2011)                   
(e)   share price at grant date of 31 May 2007:  $0.193; share price at         
     grant date of 25 June 2007:  $0.167 (2006 - $0.20)                         
(f)   expected price volatility of the company`s shares: 49% at both            
     dates (2006 - 67%)                                                         
(g)   expected dividend yield: 0.0% at both dates (2006 - 0.0%)                 
(h)   Risk-free interest rate at grant date of 31 May 2007:  6.18%, and         
at grant date of 25 June 2007:  6.39% (2006 - 5.88%)                       
Expenses arising from share-based payment transactions                          
Total expenses arising from share-based payment transactions recognised         
during the period as part of employee benefit expense were as follows:          
Consolidated         Parent Entity                   
                           2007      2006       2007       2006                 
                           $         $          $          $                    
Options issued under        53,876    47,563     53,876     47,563              
employee option plan                                                            
                           53,876    47,563     53,876     47,563               
                                                                                
SUBSEQUENT EVENTS                                                               
On 28 March 2008 the company completed of a renounceable rights issue which     
raised $540,510 before estimated transaction costs of $200,000. The funds       
raised will be utilised for Tawana`s high potential exploration projects in     
Southern Africa and for corporate and other costs.                              
The directors reserve the right to place the shortfall within the next three    
months, in accordance with ASX Listing Rules.                                   
In February 2008 Tawana Resources NL signed a joint venture with Nowak          
Investments (Pty) Ltd over the Orapa, Borolong and Moshaiwa projects. This      
will enable significant further exploration in these projects at minimal cost   
to Tawana. Details of the agreement are contained in the Directors report       
under Review of Operations.                                                     
Other than the above items there have not been any matters or circumstances,    
that have arisen since the end of the year that have significantly affected     
or may significantly affect the operations of the Group, the results of those   
operations, or the state of affairs of the Group in subsequent financial        
years.                                                                          
CONTINGENT LIABILITIES AND COMMITMENTS                                          
(a)  An Indemnity Guarantee of $7,500 is held by the bank for Tawana            
Resources N.L for the Timber Creek Project mining tenement held in the          
Northern Territory.                                                             
(b)  Commitments                                                                
    In order to maintain current rights of tenure to exploration tenements,     
the Company and economic entity is required to outlay lease rentals and to      
meet the minimum expenditure requirements of the Mines Departments.  These      
obligations, which relate only to the parent company Tawana Resources NL, are   
subject to renegotiation upon expiry of the exploration leases or when          
application for a mining licence is made.                                       
    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.               
    These obligations are not provided for in the accounts and are payable      
as follows:-                                                                    
                                         2007        2006                       
$           $                          
No later than one year                    256,988     984,000                   
Later than one year but not later than    326,667     1,604,000                 
five years                                                                      
Later than five years                     -           46,667                    
               Note Consolidated                Parent Entity                   
                    2007           2006         2007          2006              
                    $              $            $             $                 
NOTES TO STATEMENTS OF CASH FLOWS                                               
(a)                                                                             
Reconciliation                                                                  
of cash                                                                         
For the                                                                         
purposes of                                                                     
this statement                                                                  
of cash flows,                                                                  
cash includes                                                                   
cash on hand                                                                    
and in `at                                                                      
call` deposits                                                                  
with banks,                                                                     
net of bank                                                                     
overdrafts.                                                                     
Cash at the                                                                     
end of the                                                                      
year is shown                                                                   
in the Balance                                                                  
Sheet as:                                                                       
Cash and cash        149,862        2,655,399    134,031       278,558          
equivalents                                                                     
                                                                                
(b)                                                                             
Reconciliation                                                                  
of net cash                                                                     
provided by                                                                     
operating                                                                       
activities to                                                                   
operating loss                                                                  
after income                                                                    
tax.                                                                            
Operating            (7,386,000)    (4,766,269)  (9,594,713)   (5,819,027)      
(loss) after                                                                    
income tax                                                                      
                                                                                
Non-cash flows                                                                  
in operating                                                                    
(loss)                                                                          
Depreciation         436,789        832,518      257,977       334,031          
expense                                                                         
Options              53,876         47,563       53,876        47,563           
expense                                                                         
Exploration          5,288,919      2,439,577    5,288,919     2,439,577        
expenditure                                                                     
written off                                                                     
Foreign              -              61,661       -             27,457           
exchange loss                                                                   
Prospecting          -              -            212,415       -                
fees                                                                            
Profit on sale  4    -              (216,242)    -             (216,242)        
of assets                                                                       
Loss on sale    5    75,634         -            30,908        -                
of assets                                                                       
Impairment of        -              -            2,670,612     2,121,692        
assets                                                                          

Changes in                                                                      
assets and                                                                      
liabilities                                                                     
Increase/            (337,903)      322,057      (65,380)      26,456           
(decrease) in                                                                   
payables                                                                        
Increase in          24,122         109,624      44,629        71,760           
provisions                                                                      
Decrease/            17,363         (40,142)     -             -                
(increase) in                                                                   
inventories                                                                     
Decrease in          3,868          10,033       -             -                
non current                                                                     
receivables                                                                     
Decrease in          472,250        145,377      61,237        125,183          
receivables                                                                     
                                                                                
Net cash             (1,351,082)    (1,054,243)  (1,039,520)   (841,550)        
outflow from                                                                    
operating                                                                       
activities                                                                      
GOING CONCERN                                                                   
The consolidated entity has incurred a loss of $7,386,000 for the year ended    
31 December 2007, has net current assets of $56,511 and a net asset balance     
of $8,912,045.  The 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 and meet its debts    
and commitments as they fall due is dependent on obtaining additional funding   
to finance ongoing activities, including future production, mine development    
and exploration activities.  A renounceable rights issue was completed on 28    
March 2008, which raised $540,510 before estimated transaction costs of         
$200,000.  The rights issue was not underwritten. Refer to note 28 for          
further details. Management`s plans to obtain further financing include         
seeking a joint venture partner to fund certain exploration projects and/or     
raising additional funds through an equity placement. If the Company is         
unable to implement its plans, it could be forced to modify, curtail or cease   
operations.                                                                     
As a result of these matters, there is significant uncertainty whether the      
Company will continue as a going concern and therefore, whether it will         
realise its assets and settle its liabilities and commitments in the normal     
course of business and at the amounts stated in the financial report.           
However, the directors believe that the Company will be successful in the       
above matters and, accordingly have prepared the financial report on a going    
concern basis. At this time, the directors are of the opinion that no asset     
is likely to be realised for an amount less than the amount at which it is      
recorded in the financial statement at 31 December 2007. Accordingly, the       
accompanying financial statements do not include any adjustments relating to    
the recoverability and classification of the asset carrying amount or the       
amount and classification of liabilities that might be necessary if the         
Company is unable to continue as a going concern.                               
DIRECTORS` DECLARATION                                                          
In the directors` opinion:                                                      
(a)  The financial statements and notes set out on pages 28 to 59 are in        
accordance with the Corporations Act 2001 including:                            
(i)  complying with Accounting Standards, the Corporations Regulations 2001     
and                                                                             
other mandatory professional reporting requirements; and                        
(ii)  giving a true and fair view of the company`s and consolidated entity`s    
financial position as at 31 December 2007 and of their performance for the      
financial year ended on that date; and                                          
(b)  there are reasonable grounds to believe that the Company will be able to   
pay its debts as and when they become due and payable; and                      
(c)  the audited remuneration disclosures set out in pages 14 to 18 of the      
directors` report comply with Accounting Standards AASB 124 Related Party       
Disclosures and the Corporations Regulations 2001.                              
The directors have been given the declarations by the Managing Director and     
the Company Secretary required by section 295A of the Corporations Act 2001.    
This declaration is made in accordance with a resolution of the board of        
directors.                                                                      
On behalf of the directors                                                      
W.T.Marx                                                                        
Managing Director                                                               
Dated at Melbourne this 31st day of March 2008.                                 
PricewaterhouseCoopers                                                          
ABN 52 780 433 757                                                              
Freshwater Place                                                                
2 Southbank Boulevard                                                           
SOUTHBANK VIC 3006                                                              
GPO Box 1331L                                                                   
MELBOURNE VIC 3001                                                              
Telephone +61 3 8603 1000                                                       
Facsimile +61 3 8603 1999                                                       
Independent auditor`s report to the members of Tawana Resources N.L             
Report on the financial report and the AASB 124 remuneration disclosures        
contained in the directors` report                                              
We have audited the accompanying financial report of Tawana Resources (the      
company), which comprises the balance sheet as at 31 December 2007, and the     
income statement, statement of changes in equity and cash flow statement for    
the year ended on that date, a summary of significant accounting policies,      
other explanatory notes and the directors` declaration for both Tawana          
Resources and the Tawana Resources Group (the consolidated entity). The         
consolidated entity comprises the company and the entities it controlled at     
the year`s end or from time to time during the financial year.                  
We have also audited the remuneration disclosures contained in the directors`   
report under the heading "remuneration report" in pages 14 to 19 of the         
directors` report and not in the financial report.                              
Directors` responsibility for the financial report and the AASB 124             
remuneration disclosures contained in the directors` report.                    
The directors of the company are responsible for the preparation and fair       
presentation of the financial report in accordance with Australian Accounting   
Standards (including the Australian Accounting Interpretations) and the         
Corporations Act 2001. This responsibility includes establishing and            
maintaining internal control relevant to the preparation and fair               
presentation of the 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. In Note 1(a), the directors also state, in accordance with       
Accounting Standard AASB 101 Presentation of Financial Statements, that         
compliance with the Australian equivalents to International Financial           
Reporting Standards ensures that the financial report, comprising the           
financial statements and notes, complies with International Financial           
Reporting Standards.                                                            
The directors of the company are also responsible for the remuneration          
disclosures contained in the directors` report.                                 
Auditor`s responsibility                                                        
Our responsibility is to express an opinion on the financial report based on    
our audit. We conducted our audit in accordance with Australian Auditing        
Standards. These Auditing Standards require that we comply with relevant        
ethical requirements relating to audit engagements and plan and perform the     
audit to obtain reasonable assurance whether the financial report is free       
from material misstatement. Our responsibility is to also express an opinion    
on the remuneration disclosures contained in the directors` report based on     
our audit.                                                                      
Liability limited by a scheme approved under Professional Standards             
Legislation An audit involves performing procedures to obtain audit evidence    
about the amounts and disclosures in the financial report and the               
remuneration disclosures contained in the directors` report. The procedures     
selected depend on the auditor`s judgement, including the assessment of the     
risks of material misstatement of the financial report and the remuneration     
disclosures contained in the directors` report, whether due to fraud or         
error. In making those risk assessments, the auditor considers internal         
control relevant to the entity`s preparation and fair presentation of the       
financial report and the remuneration disclosures contained in the directors`   
report in order to design audit procedures that are appropriate in 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 the directors, as well as        
evaluating the overall presentation of the financial report and the             
remuneration disclosures contained in the directors` report.                    
Our procedures include reading the other information in the Annual Report to    
determine whether it contains any material inconsistencies with the financial   
report.                                                                         
For further explanation of an audit, visit our website                          
http://www.pwc.com/au/financialstatementaudit.                                  
Our audit did not involve an analysis of the prudence of business decisions     
made by directors or management.                                                
We believe that the audit evidence we have obtained is sufficient and           
appropriate to provide a basis for our audit opinions.                          
Independence                                                                    
In conducting our audit, we have complied with the independence requirements    
of the Corporations Act 2001.                                                   
Auditor`s opinion on the financial report                                       
In our opinion:                                                                 
(a) the financial report of Tawana Resources is in accordance with the          
Corporations Act 2001, including:                                               
(i) giving a true and fair view of the company`s and consolidated entity`s      
financial position as at 31 December 2007 and of their performance for the      
year ended on that date; and                                                    
(ii) complying with Australian Accounting Standards (including the Australian   
Accounting Interpretations) and the Corporations Regulations 2001; and          
(b) the financial report also complies with International Financial Reporting   
Standards as disclosed in Note 1(a). Auditor`s opinion on the AASB 124          
remuneration disclosures contained in the directors` report (13(h))             
In our opinion, the remuneration disclosures that are contained in pages 14     
to 19 of the directors` report comply with section 300A of the Corporations     
Act 2001.                                                                       
Material Uncertainty Regarding Continuation as a Going Concern                  
Without qualifying our opinion, we draw attention to Note 31 in the financial   
report which indicates that the company incurred a net loss of $7,386,000 and   
has negative cash flows from operations during the year ended 31 December       
2007. The company`s continuation as a going concern depends on its success in   
obtaining additional capital or other funds and ultimately its ability to       
generate revenues. These conditions, along with other matters as set forth in   
note 31, indicate there is significant uncertainty as to whether the company    
will continue as a going concern and, therefore whether it will realise its     
assets and extinguish its liabilities in the normal course of business and at   
the amounts stated in the financial report.                                     
PricewaterhouseCoopers                                                          
Tim Goldsmith Melbourne                                                         
Partner 31 March 2008                                                           
Additional Shareholder Information as at 29 February 2008                       
Distribution of Equity Securities                                               
The distribution of members and their holdings are as follows:                  
Range               No. of Shareholders      No. of Option Holders              
1-1,000             228                      564                                
1,001-5,000         557                      724                                
5,001-10,000        418                      196                                
10,001-100,000      702                      228                                
100,001 and over    124                      29                                 
Total               2,029                    1,661                              
Twenty Largest Equity Security Holders                                          
The names of the twenty largest holders of quoted equity securities are         
listed below:                                                                   
    Name                            Units Held     % Holding                    
1.   National Nominees Ltd           7,342,644      16.23                       
2.   ANZ Nominees Ltd                6,737,037      14.89                       
3.   Lufgan Nominees Pty Ltd         6.250,036      13.81                       
4.   Hudson Holdings Pty Ltd         6,248,500      13.81                       
5.   Nomathata Diamonds Inc          5,350,000      11.82                       
6.   Osborne Flexible Fund           2,688,623      5.94                        
7.   HSBS Custody Nominees           2,162,002      4.78                        
8.   GRBK Investments                1,010,145      2.23                        
9.   K Hemachandra                   950,000        2.10                        
10.  Darcy Brennan Super Pty Ltd     812,000        1.79                        
11.  I and H Galash                  780,000        1.72                        
12.  Merrill Lynch (Australia)       775,178        1.71                        
13.  N Gutta                         670,000        1.48                        
14.  F and L Wong and M Chui         600,000        1.33                        
15.  T Gray                          580,000        1.28                        
16.  Forbar Custodians Ltd           546,066        1.20                        
17.  Manfree Nominees                505,000        1.12                        
18.  D Oakley                        457,165        1.01                        
19.  Eighty Eight Macorp Nominees    450,000        0.99                        
20.  Macjon Pry Ltd                  429,000        0.95                        
Percentage holding of twenty largest shareholders - 49.07 %                     
Twenty Largest Option Holders at 29 February 2008 - Options Expiry 30/04/08 @   
$1.00                                                                           
    Name                            Units Held     % Holding                    
1.   Hudson Holdings Pty Ltd         1,999,499      18.04                       
2.   Lufgan Nominees Pty Ltd         1,840,477      16.61                       
3.   Nomathata Diamonds Inc          1,777,166      16.04                       
4.   National Nominees Ltd           816,836        7.37                        
5.   Victorian Pojects (Keen         556,599        5.02                        
    Retirement)                                                                 
6.   G and W Butcher                 500,000        4.51                        
7.   Crescent Nominees               438,172        3.95                        
8.   J Nugent                        370,772        3.35                        
9.   HSBS Custody Nominees           360,773        3.26                        
10.  K Hemachandra                   316,666        2.86                        
11.  I and H Galash                  301,334        2.72                        
12.  Rare Earths & Minerals Pty Ltd  250,000        2.26                        
13.  T Tabikh                        250,000        2.26                        
14.  Forbar Custodians Ltd           245,770        2.22                        
15.  Victorian Projects (Keen        210,709        1.90                        
    Family)                                                                     
16.  Drasco Pty Ltd                  200,000        1.80                        
17.  J. O`keefe                      167,646        1.51                        
18.  KB (CI) Nominees Ltd            166,666        1.50                        
19.  BHP Billiton Minerals Pty Ltd   156,675        1.41                        
20.  Douglas Mitchell Pty Ltd        155,295        1.40                        
Percentage holding of twenty largest option holders - 49.59%                    
Escrowed Securities                                                             
There are no securities subject to escrow.                                      
Voting Rights                                                                   
A registered holder of shares in the Company may attend general meetings of     
the Company in person or by proxy and on a poll may exercise one vote for       
each share held. There are no voting rights attached to options for ordinary    
shares until the options have been exercised.                                   
Corporate Details                                                               
The Company Secretary is Edward Derrick Ehmke                                   
A Register of Securities is held at Computershare Investor Services Pty.Ltd.    
Yarra Falls, 452 Johnston Street, Abbotsford, Victoria. 3067. Telephone         
Number: (03) 9415 5000, Facsimile : (03) 9473 2500,                             
The address of the Principal Registered Office in Australia is 60 Wilson        
Street, South Yarra Victoria.3141 Telephone : (03) 9863 5222,Facsimile: (03)    
9863 5288,                                                                      
E-mail address wolf.marx@tawana.com.au                                          
Stock Exchange Listing                                                          
The Company`s shares are listed on the Australian Stock Exchange Ltd and the    
ASX code is TAW and on the JSE Limited where the JSE code is TAW.               
The Company`s options are listed on the Australian Stock Exchange Ltd and the   
ASX code is TAWO and on the JSE Limited where the code is TAWO.                 
CORPORATE DIRECTORY                                                             
DIRECTORS                                                                       
Brian Phillips (Non-Executive Chairman)                                         
Wolfgang Marx (Managing Director)                                               
Euan Luff (Non-Executive Director)                                              
COMPANY SECRETARY                                                               
Edward Derrick Ehmke                                                            
NOTICE OF ANNUAL GENERAL MEETING                                                
The annual general meeting of Tawana Resources NL will be held at 60 Wilson     
Street, South Yarra, Victoria on Friday 16 May 2008 at 11:00 am                 
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                                                       
SHARE REGISTRY                                                                  
Computershare Investor Services Pty Ltd                                         
Yarra Falls                                                                     
452 Johnston Street                                                             
Abbotsford, Victoria, 3067                                                      
AUDITORS                                                                        
PricewaterhouseCoopers                                                          
G.P.O.Box 1331L                                                                 
Melbourne, Victoria, 3001                                                       
SOLICITORS                                                                      
WilmothFieldWarne                                                               
Level 13, 440 Collins St                                                        
Melbourne VIC 3000                                                              
BANKERS                                                                         
ANZ Banking Group Limited                                                       
1401 Toorak Road                                                                
Burwood VIC 3124                                                                
STOCK EXCHANGE LISTING                                                          
Home Exchange is the Australian Stock Exchange                                  
Secondary Listing on the JSE Limited                                            
ASX/JSE Code: Shares TAW                                                        
ASX/JSE Code: Options TAWO                                                      
SPONSOR                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 31/03/2008 13:46:11 Supplied by www.sharenet.co.za                     
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