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TAW - Tawana Resources NL - Annual Report for the year ended 31 December 2009

Release Date: 01/04/2010 11:46:08      Code(s): TAW
TAW - Tawana Resources NL - Annual Report for the year ended 31 December 2009   
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 REPORT FOR THE YEAR ENDED 31 DECEMBER 2009                               
PDF version of this annual report can be found on Tawana`s website.             
CONTENTS                                                                        
Corporate Directory                                         3                   
Chairman`s Statement                                        4                   
Directors` Report                                           5                   
Corporate Governance Statement                              22                  
Auditor`s Independence Declaration                          28                  
Statement of Comprehensive Income                           29                  
Statement of Financial Position                             30                  
Statement of Changes in Equity                              31                  
Statement of Cash Flows                                     32                  
Notes to the Financial Statements                           33                  
Directors` Declaration                                      56                  
Independent Auditor`s Report to the Members                 57                  
Schedule of Mining Tenements                                60                  
ASX Additional Information                                  61                  
Directors                                                                       
Mr Euan Luff   Executive Chairman                                               
Mr Julian Babarczy  Non-Executive Director                                      
Mr Harry Hill  Non-Executive Director                                           
Joint Company Secretaries                                                       
Mr Winton Willesee                                                              
Mr Aaron Finlay                                                                 
Principal Place of Business                                                     
and Registered Office                                                           
Level 1                                                                         
2 Ross Place                                                                    
South Melbourne VIC 3205                                                        
Contact Details                                                                 
Website:  www.tawana.com.au                                                     
Tel: +61 3 9602 4133                                                            
Fax: +61 3 9670 6643                                                            
Solicitors to the Company                                                       
Wilmoth Field Warne                                                             
Level 13                                                                        
440 Collins Street                                                              
Melbourne VIC 3000                                                              
Share Registry                                                                  
Computershare Investor Services Pty Ltd                                         
GPO Box 2975                                                                    
Melbourne VIC 3001                                                              
Tel: +61 3 9415 5000                                                            
Fax: +61 3 9473 2500                                                            
Auditors                                                                        
William Buck                                                                    
Level 1                                                                         
465 Auburn Road                                                                 
Hawthorn East VIC 3123                                                          
Stock Exchange                                                                  
Australian Securities Exchange                                                  
ASX Code:  TAW                                                                  
CHAIRMAN`S STATEMENT                                                            
There is no denying that the past year has been full of                         
challenges for the Company and its shareholders.  The                           
performance of the Company has been disappointing and to                        
this end significant changes have been made to the Board.                       
During the year Brian Phillips, Wolf Marx, Neil Barrie and                      
Nonkqubela Mazwai resigned from the Board.  Stirling Horne,                     
Harry Hill and Julian Babarczy were appointed to the Board.                     
The new Board has the knowledge, breadth of experience and                      
determination to fulfill our vision which is to establish                       
Tawana as a significant exploration and mining Company.                         
Members of the new Board are all successful people in their                     
own right and bring a complementary blend of backgrounds in                     
operating within the Public Company arena.                                      
Due to personal business commitments Stirling Horne resigned                    
in February 2010, and we appreciated his contribution as a                      
Board member.                                                                   
To re-establish market credibility and ensure the Company                       
has the financial flexibility to succeed, it was necessary                      
for the new Board to raise funds to reduce the significant                      
debt that had accumulated within the Company.  This was done                    
with total raisings, net of costs, of $647,642, in addition                     
to a successful rights issue raising a further $1,120,858                       
completed in February 2010.  Consequently both debt and                         
creditors were reduced and the Company now operates with a                      
modest net cash balance enabling it to now maintain the                         
Company`s obligations on the current projects and to explore                    
new opportunities from a position of greater strength.                          
Over the previous year the Company had been unable to                           
maintain its obligations with regard to the legacy projects                     
it held.  The new Board reviewed each of those projects and                     
decided that the most prudent use of the limited remaining                      
shareholder funds was to endeavour to enter into joint                          
venture arrangements on each project where the joint venture                    
partner funds the project and Tawana takes a reduced equity                     
interest in each project.  We were pleased to advise in                         
December that the Company entered into a joint venture                          
agreement with Firestone Diamonds Plc in respect of the                         
Botswana Project and we are hopeful of achieving the same                       
arrangement with the South African Projects.                                    
The current Board continues to systematically work through                      
the remaining assets and projects in which the Company has                      
an interest and is confident that additional material value                     
can be realised for shareholders.                                               
I am particularly pleased with the direction the current                        
Board has agreed to follow and with their efforts to date.                      
The Company is now in a much stronger financial and                             
strategic position and I am confident the ensuing twelve                        
months will be an exciting time as the Board strives to add                     
shareholder value to the Company.  I would also like to                         
thank the Company`s advisors and shareholders for their                         
continued support and patience.                                                 
Euan Luff                                                                       
CHAIRMAN                                                                        
DIRECTORS` REPORT                                                               
Your directors submit their report for the year ended 31                        
December 2009.                                                                  
Directors                                                                       
The names and details of the Company`s directors in office                      
during the financial year and until the date of this report                     
are as follows.  Directors were in office for the entire                        
period unless otherwise stated.                                                 
Mr Euan Luff - Executive Chairman                                               
Appointed 16 November 1998                                                      
Mr Luff is a Senior Partner of Wilmoth Field Warne,                             
Solicitors.  In his professional capacity he acts as a legal                    
adviser to a number of private and public companies.                            
Over the past 3 years, Mr Luff has held no other                                
directorships with ASX-listed companies.                                        
Mr Harry Hill - Non-Executive Director                                          
Appointed 21 August 2009                                                        
Mr Hill is a Certified Practising Accountant and a Fellow of                    
the Chartered Institute of Secretaries.  He has over 30                         
years` experience having been a director of several                             
Australian publicly listed companies involved in minerals                       
exploration, mine development and mining operations, where                      
he was involved in restructuring corporations and re-                           
purposing businesses and initial public offers.  His skills                     
encompass business and strategic planning, finance and                          
corporate secretarial functions.                                                
Over the past 3 years, Mr Hill has held directorships with                      
the following ASX-listed companies:                                             
Company                    Commenced     Ceased                                 
Future Corporation         17 Jun 2008   -                                      
Australia Limited                                                               
Hawk Resources Limited     19 Apr 2006   28 July 2008                           
Mr Julian Babarczy - Non-Executive Director                                     
Appointed 9 December 2009                                                       
Mr Babarczy is currently a Portfolio Manager at Regal Funds                     
Management, where he has primary responsibility for                             
investments within the mining, oil and gas,                                     
telecommunications, health and technology sectors.  Prior to                    
this role, Mr Babarczy worked in investment banking for                         
Lazard, where he provided advice to both listed and unlisted                    
companies on capital raising and merger and acquisition                         
transactions.  Before joining Lazard, Mr Babarczy held several                  
roles in corporate finance, where he was instrumental in a                      
range of successful transactions including IPOs, secondary                      
market capital raisings, listed company advisory mandates and                   
equities research across a broad range of industry sectors.                     
Julian holds a Bachelor of Business from Monash University in                   
Melbourne, is a Chartered Financial Analyst charterholder, and                  
has a graduate diploma in Applied Finance and Investment from                   
the Securities Institute of Australia.                                          
Over the past 3 years, Mr Babarczy has held no other                            
directorships with ASX-listed companies.                                        
Mr Stirling Horne                                                               
Appointed 31 July 2009                                                          
Resigned 4 February 2010                                                        
Mr Horne has worked almost exclusively in the insolvency field                  
since 1965, when he commenced work in the Official Receivers                    
Office.  During that time he has been a leading practitioner                    
in both the corporate and personal insolvency areas including                   
receivership, voluntary administration, liquidations of all                     
types, Part X and bankruptcy.  In addition he has been                          
involved in numerous workouts where insolvency appointments                     
were not appropriate.                                                           
As part of his role he has carried out investigations into                      
such issues as incorrect accounting, insolvent trading, undue                   
preference payments, uncommercial loans, hidden assets, etc.                    
Flowing from these investigations many expert reports have                      
been written by him, which in turn, lead on occasion, to Mr                     
Horne being a witness for either the plaintiff or defendant in                  
court proceedings.  In a career spanning 40 years Mr Horne has                  
had experience in a very wide range of industries.                              
Over the past 3 years, Mr Horne has held no other                               
directorships with ASX-listed companies.                                        
Ms Nonkqubela Mazwai                                                            
Appointed 30 October 2008                                                       
Resigned 21 August 2009                                                         
Ms Mazwai is the CEO and founding shareholder of Motjoli                        
Resources Pty Ltd.  She has advised blue chip mining companies                  
(including Anglo American and De Beers) on mining compliance                    
matters.  She has also designed business processes for the                      
implementation of the Mineral and Petroleum Resources                           
Development Act for the South African government`s Department                   
of Minerals and Energy.                                                         
Over the past 3 years, Ms Mazwai has held no other                              
directorships with ASX-listed companies.                                        
Mr Neil Barrie                                                                  
Appointed 20 June 2008                                                          
Resigned 31 July 2009                                                           
Mr Barrie has over 20 years` experience in mining evaluation                    
and corporate development throughout Australia, South Africa                    
and Botswana.  Mr Barrie was a former director of KPMG.                         
Over the past 3 years, Mr Barrie has held no other                              
directorships with ASX-listed companies.                                        
Mr Brian Phillips                                                               
Appointed 4 April 2005                                                          
Resigned 27 July 2009                                                           
Mr Phillips is a qualified mining engineer and has over 40                      
years` experience in the mining industry.  Mr Phillips is a                     
past director of the Australian Gold Council and past                           
President of the Victorian Minerals and Energy Council.                         
Over the past 3 years, Mr Phillips has held directorships with                  
the following ASX-listed companies:                                             
Company                    Commenced     Ceased                                 
Indophil Resources NL      21 Apr 2005   -                                      
Panoramic Resources Ltd    27 Mar 2007   -                                      
Leviathan Resources Ltd    15 Nov 2004   24 Jan 2007                            
Perseverance Corporation   24 Jan 2007   18 Feb 2008                            
Ltd                                                                             
Mr Wolfgang Marx                                                                
Appointed 16 November 1998                                                      
Resigned 31 January 2009                                                        
Mr Marx is a qualified geologist and has over 25 years`                         
experience in geology, particularly in the field of gold and                    
diamond exploration.                                                            
Over the past 3 years, Mr Marx has held no other directorships                  
with ASX-listed companies.                                                      
Interests in the shares and options of the Company                              
As at the date of this report, the interests of the directors                   
in the shares and options of Tawana Resources NL were:                          
Name             Number of       Number of                                      
ordinary        options over                                    
                shares          ordinary                                        
                                shares                                          
Mr E Luff        14,689,740      6,104,150                                      
Mr H Hill        -               -                                              
Mr J Babarczy    10,000,000      -                                              
Company Secretaries                                                             
Mr Winton Willesee                                                              
Mr Willesee is an experienced Director and Company Secretary                    
in the small capitalisation sector of the ASX and brings to                     
the Company a broad range of experience in company                              
administration, corporate governance and corporate finance.                     
Mr Willesee has a Master of Commerce, Post-Graduate Diploma in                  
Business (Economics and Finance), a Diploma in Education and a                  
Bachelor of Business.  He is a Fellow of the Financial                          
Services Institute of Australasia and a member of CPA                           
Australia.                                                                      
Mr Willesee is a Director of Base Iron Limited, Future                          
Corporation Australia Limited, Incitive Limited and Newera                      
Uranium Limited.  He is currently the Company Secretary of                      
Base Iron Limited, Boss Energy Limited, Future Corporation                      
Australia Limited, Greenvale Mining NL, Incitive Limited,                       
Mantle Mining Corporation Ltd and Newera Uranium Limited as                     
well as Joint Company Secretary of Uran Limited.                                
Mr Aaron Finlay                                                                 
Mr Finlay is a Chartered Accountant and Chartered Company                       
Secretary with over 18 years` experience in the accounting and                  
finance profession.                                                             
Mr Finlay is Chief Financial Officer and Company Secretary for                  
ASX-listed HalcyGen Pharmaceuticals Limited.  Prior to this he                  
was Chief Financial Officer and Company Secretary for ASX and                   
NASDAQ listed pSivida Limited and previously INVESCO                            
Australia`s Chief Financial Officer where he had                                
responsibility for the operations of finance, as well as the                    
compliance, legal, and human resources functions.  Prior to                     
that position, Mr Finlay was head of group tax and treasury                     
for INVESCO`s global operations in London.  Prior to joining                    
INVESCO, Mr Finlay worked for PricewaterhouseCoopers (then                      
Price Waterhouse) in London and Perth for 7 years.                              
Operating results                                                               
The loss of the economic entity for the year ended 31 December                  
2009 after providing for income tax amounted to $974,886                        
(2008: $3,826,156).                                                             
Financial position                                                              
The net assets of the Company are $5,879,623 as at 31 December                  
2009 (2008: $6,033,714).                                                        
Principal activities and significant changes in affairs                         
Tawana Resources NL`s principal activities consisted of                         
mineral exploration, in particular diamond exploration.  There                  
were no significant changes in the nature of the activities of                  
the consolidated entity during the year that have not been                      
covered generally in this Annual 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 and Botswana. The Company`s                           
objective is to establish viable ore reserves and turn such                     
projects into profitable operations.                                            
Recently the company has expanded its interests in evaluating                   
other resources.                                                                
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.                                 
Corporate Activities                                                            
On 10 August 2009 the Company announced it had entered into                     
funding arrangements with Cygnet Capital Pty Ltd (Cygnet) on                    
the following terms:                                                            
1.   Placement of $500,000 by issuing 100,000,000 shares at                     
$0,005 to Sophisticated Investors (s708) to be split into two                   
tranches; and                                                                   
2.   Underwriting of a rights issue to raise $1,085,694 by way                  
of a 1:1 non-renounceable rights issue at $0.005.                               
On 25 August 2009 the first tranche of 17,560,414 placement                     
shares was issued within the Company`s 15% capacity to raise                    
$87,802, with the balance of the placement shares being                         
subject to shareholder approval at a meeting to be convened                     
later.                                                                          
On 27 November 2009 the second tranche of 82,439,586 fully                      
paid ordinary shares were issued to institutional and                           
sophisticated investors who participated in a private                           
placement undertaken by Tawana to raise $412,197.93 to augment                  
working capital requirements as approved by shareholders at                     
the General Meeting held on 23 November 2009.                                   
On 8 December 2009 the Company announced a 1 for 1 pro-rata                     
non-renounceable rights issue of up to 262,331,772 fully paid                   
ordinary shares in the capital of the Company (including                        
provisions for options exercises) (New Shares) at $0.005 per                    
New Share to Eligible Participants (as defined in the Offer                     
Document) (Rights Issue).                                                       
The Rights Issue closed for acceptances at 5.00 pm AEDT for                     
ASX and 5.00 pm Johannesburg time for JSE on 13 January 2010.                   
The Company received valid acceptances for 151,898,275 New                      
Shares raising $759,491.                                                        
The shortfall under the Rights Issue was approximately                          
72,273,444 ordinary shortfall shares.  As the Rights Issue was                  
underwritten all New Shares not applied for under the Rights                    
Issue were issued to Cygnet Capital Pty Ltd or its nominees at                  
an issue price of $0.005 per share in accordance with the                       
Underwriting Agreement dated 7 December 2009 between the                        
Company and Cygnet Capital Pty Ltd.                                             
On 2 February 2010 the Company announced that the shortfall                     
from the recently completed Rights Issue, being 72,273,400                      
shares, had been allotted.                                                      
The injection of funds raised through the Rights Issue has                      
strengthened the financial position of the Company. The                         
Company completed a partial rights issue raising $87,802.07 by                  
the issue of 17,560,414 shares.                                                 
The Company successfully negotiated and settled a loan to the                   
Company of $350,000 which was secured by a debenture over the                   
assets of the Company.  This will, subject to shareholders`                     
approval, be converted into convertible notes to the value of                   
$350,000, by issuing notes which, if converted will mean                        
70,000,000 shares will be issued.  These convertible notes                      
cannot be converted for six (6) months post the receipt of                      
funds.                                                                          
The injection of funds through the partial rights issue and                     
the loan funds has strengthened the financial position of the                   
Company.                                                                        
Cygnet was granted 50 million options exercisable within 3                      
years at an exercise price of 1 cent per share as part of its                   
fee on completion of the rights issue.                                          
Otherwise no matters or circumstances have arisen since the                     
end of the reporting period, not otherwise disclosed in this                    
report, which significantly affected or may significantly                       
affect the operations of the economic entity, the result of                     
those operations or the state of affairs of the economic                        
entity in subsequent financial years.                                           
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; 100% owned by Tawana.)                                     
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.                                                                       
On 27 October 2008 the Directors of Tawana announced the                        
conclusion of an agreement with Risk Free Investments 2                         
(Proprietary) Limited t/a  Agio Diamond Investments ("Agio")                    
for the sale of a 26% interest in Tawana`s Kareevlei Project                    
for Rand 12Million (Approximately A$1.7million at current                       
exchange rates).                                                                
The above mentioned payment has been not been paid to date.                     
In December 2008 Tawana commenced legal proceedings in the                      
South African Supreme Court to obtain the full payment of the                   
amount in question.  The Company has obtained judgment against                  
Agio and has attempted to but been unsuccessful in executing                    
upon the judgment.                                                              
The Company has over the past year been pursuing and having                     
discussions with a number of different groups regarding a                       
possible joint venture on this project to enable the                            
commencement of a 20,000 ton trial mining exercise.  No work                    
has been done on this project over the past 12 months.                          
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; 100% owned by Tawana).                                     
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.                        
(Figure 1) These deposits resulted from the discovery by                        
Tawana during early exploration of targets generated by BHP                     
Billiton.                                                                       
Figure 1: Image showing location of Tawana Alluvials                            
immediately downstream of the De Beers owned Finsch diamond                     
mine.                                                                           
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.                                                 
(PIC REMOVED HERE)                                                              
The proposed next stage for the Tawana Alluvial Project is a                    
large scale operating trial mining.  The Company has not                        
activated this proposal and has only committed expenditure to                   
maintain the tenements.  It has also attempted over the past                    
12 months to find a joint venture partner to assist with trial                  
mining.                                                                         
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.                                                                     
A drilling program to confirm the presence or absence of                        
kimberlite or related rock types in the two targets was                         
completed during 2008.                                                          
A total of seven 6.5 inch holes were drilled using percussion                   
air flush drilling. All holes were logged at 1m intervals and                   
a total of 220m was drilled during the 3 day drilling program.                  
The location of the 7 drill holes is shown in Figure 1.                         
Of the 7 holes drilled, 6 were sited to determine the cause of                  
the gravity low anomalies and one (hole 4) was sited to                         
determine the cause of the gravity high.   The hole that was                    
drilled into the gravity high was distinctly different to the                   
remaining 6 holes in that it intersected 7m of weathered to                     
fresh dolerite between 2 to 9m.  This is compatible with what                   
can be observed in the sidewalls of the Kimberley mine.  All                    
other holes drilled were completely devoid of dolerite and                      
intersected weathered shale below the dump debris.                              
The gravity low anomalies are therefore attributed to                           
weathered shale and no kimberlitic material was intersected                     
during the drilling program.                                                    
Figure 1:  Gravity image showing location of 7 drill holes                      
within Prospecting Right south of the St Augustine road.(PIC                    
REMOVED)                                                                        
Prospecting activities over the northern portion of the                         
Prospecting Right will continue when the Company has available                  
funds in order to evaluate the area associated with the old St                  
Augustine kimberlite mine area.                                                 
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.                                            
No work was conducted on this project during 2009.                              
Rakana Consolidated Mines Pty Ltd                                               
(26% owned by Tawana; 74% owned by Seven Falls                                  
Rakana owns 26% of a joint venture with Aquila Resources                        
Limited in the Thabazimbi joint venture project at Avontuur.                    
This gives Tawana an indirect interest of 6.8% in the project.                  
The Chairman of Aquila Resources Limited, Tony Poli, has made                   
a number of announcements in respect of the Avontuur Project                    
and quoted below is a passage from their announcement to the                    
ASX on the 20th October 2009 which will give you some idea of                   
this project and where it is in its development.                                
Avontuur                                                                        
The Avontuur tenement hosts the Avontuur Manganese Basin,                       
located north of the Kalahari Manganese Field in the Northern                   
Cape Province of South Africa (see figure 1).  The tenement                     
currently hosts a JORG Compliant Inferred Resource of 34                        
million tonnes of manganese oxide ore averaging 40% Mn, as                      
notified to the ASX on 17 March 2008.  A follow-up drilling                     
program is underway, with up to 5 drilling rigs in operation,                   
to increase the tonnage and enhance the grade of this                           
Resource.                                                                       
FIGURE 1: LOCATION OF AVONTUUR (PIC REMOVED)                                    
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.                      
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.                                                                        
Tawana has been advised by Nowak that the sinking of shafts on                  
the BK24 kimberlite commenced in June 2008 but was suspended                    
during the December quarter to allow for the implementation of                  
certain additional safety measures.  A small amount of fresh                    
kimberlite sample was processed and results are pending.                        
Nowak has also collected 120 soil samples in the Moshaiwa                       
Prospecting Licence with the aim to locate the source of the                    
kimberlitic indicator minerals (including diamonds) found here                  
previously.  Processing of these samples has been completed                     
and results are pending.                                                        
In December 2009 Tawana entered into a Joint Venture Agreement                  
with Firestone Diamonds plc ("Firestone") a diamond mining and                  
exploration company, over its kimberlite exploration and                        
evaluation projects in Botswana, which includes 8 kimberlites                   
in the Orapa kimberlite field.  Under this agreement Firestone                  
has the opportunity to earn initially up to a 70% interest in                   
any kimberlites in the prospecting licences controlled by                       
Tawana.                                                                         
Firestone is an international diamond mining and exploration                    
company with operations in Botswana and South Africa.                           
Firestone is the largest holder of mineral rights in                            
Botswana`s diamondiferous kimberlite fields, controlling over                   
25,000 square kilometres around the major Orapa and Jwaneng                     
mines and the entire Tsabong kimberlite field.                                  
Highlights                                                                      
Firestone to acquire an interest in Tawana`s kimberlite                         
projects in Botswana:                                                           
Firestone can earn 70% by carrying out costs for the first                      
stage bulk stamping;                                                            
Tawana has the option to fund its remaining 30% interest from                   
that point and in the event it does not its interests shall                     
reduce to 15%.                                                                  
Orapa prospecting licence:                                                      
contains 8 kimberlites and covers 57 square kilometers;                         
located close to Debswana`s Damtshaa Mine;                                      
26 kilometers from Firestone`s BK11 mine development project;                   
Francistown prospecting licenses                                                
cover an area of 1,500 square kilometers;                                       
located in the right geological setting for discovery of                        
diamondiferous kimberlites;                                                     
Euan Luff, chairman of Tawana commented "with Firestone`s                       
major project close to Tawana`s project, Tawana now has the                     
ability to access the infrastructure of Firestone to develop                    
and exploit the economic potential of its kimberlites in the                    
Orapa area quickly and at relatively low cost.  We are excited                  
about the potential of our kimberlites in the Opara area, and                   
look forward to updating our shareholders about the results of                  
Firestone`s initial review of the project in early 2010."                       
Orapa prospecting licence                                                       
The Orapa prospecting licence covers an area of 57 square                       
kilometres in the Orapa kimberlite field and contains a                         
cluster of 8 kimberlites, BK19-26.  The largest of these                        
kimberlites, BK24, is located 2.5 kilometres from Debswana`s                    
Damtshaa Mine and 26 kilometres from Firestone`s BK11                           
kimberlite, which is due to commence commercial production in                   
Q2 2010. Firestone has commenced a review of the historical                     
data available from work carried out by Tawana and other                        
operators on BK19-26.                                                           
Francistown prospecting licences                                                
The Francistown prospecting licenses cover an area of 1,500                     
square kilometres close to the town of Francistown in eastern                   
Botswana.  Although no kimberlites have been discovered in                      
this area before now, the prospecting licenses are located in                   
the right geological setting for the discovery of                               
diamondiferous kimberlites.  Firestone also commenced a review                  
of the historical data available from work carried out by                       
Tawana and other operators in this area.                                        
Firestone can earn a 70% interest in any kimberlite by                          
financing all evaluation work on that kimberlite up to the                      
completion of a bulk sample of a minimum of 150 tonnes from                     
kimberlites less than 1 hectare in size, and of a minimum of                    
250 tonnes from kimberlites greater than 1 hectare in size.                     
Tawana will then have an option to fund its pro-rata share of                   
all further work on that kimberlite. If Tawana is unwilling or                  
unable to exercise this option, Firestone will be entitled to                   
earn an additional 15% by financing all further evaluation                      
work up to and including the making of a mine development                       
decision on that kimberlite. The agreement is subject to the                    
approval of the Minister of Minerals, Energy & Water                            
Resources.                                                                      
Current Status of Projects in Australia                                         
Tawana currently has no active involvement in exploration in                    
Australia.  The status of projects in Australia is as follows:                  
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 Mines Limited (FMS) in April 2007 under the                       
terms of which FMS 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 FMS earns 70%                    
interest in the project, Tawana`s interest will reduce to 15%.                  
During 2009 a report was produced by Orogenic which detailed                    
all the exploration activity conducted since the grant of the                   
license and recommended further drilling to investigate                         
geophysical targets.                                                            
Eyre Peninsula Project, South Australia                                         
(80% owned by Tawana and 20% owned by Orogenic                                  
Exploration/Flinders Diamonds Ltd ("FMS") earning in.)                          
Tawana and Orogenic entered into a joint venture agreement                      
with FMS in April 2007 under the terms of which FMS 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 FMS earns 70% interest in the project, Tawana`s                  
interest will reduce to 15%.                                                    
During 2009 the exploration activity included further surface                   
loam sampling for heavy mineral kimberlite indicator minerals.                  
Dividends paid or recommended                                                   
The Directors do not recommend the payment of a dividend and                    
no amount has been paid or declared by way of a dividend to                     
the date of this report.                                                        
Events subsequent to balance date                                               
The Rights Issue closed for acceptances at 5.00 pm AEDT for                     
ASX and 5.00 pm Johannesburg time for JSE on 13 January 2010.                   
The Company received valid acceptances for 151,898,275 New                      
Shares raising $759,491.37.                                                     
On 2 February 2010 the Company announced that the shortfall                     
from the recently completed Rights Issue, being 72,273,400                      
shares, had been allotted at an issue price of $0.005 per                       
share.                                                                          
On 4 February 2010 the Company announced that Mr Stirling                       
Horne had resigned as a director of Tawana Resources NL.                        
On 24 February 2010 the Company announced the issue of 50                       
million options, expiring 23 February 2013 at an exercise                       
price of $0.01 in accordance with the shareholders meeting                      
approving the issue on 23 November 2009.                                        
Future developments, prospects and business strategies                          
The consolidated entity will continue to concentrate on                         
mineral exploration particularly diamond exploration with                       
emphasis on the development of its existing projects.                           
Environmental issues                                                            
The Company is aware of its environmental obligations with                      
regards to its exploration activities and ensures that it                       
complies with all regulations at all times.                                     
REMUNERATION REPORT                                                             
This report details the nature and amount of remuneration for                   
each Director of Tawana Resources NL, and for the executives                    
receiving the highest remuneration.                                             
Remuneration policy                                                             
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.                                                                     
Remuneration policy is based on industry practice rather than                   
Company performance and takes into account the risks and                        
liabilities assumed by the directors and executives as a                        
result of their involvement in the activities undertaken by                     
the Company.                                                                    
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.                    
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 component 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 determined in accordance with                  
the rules set out in the Company`s Constitution and 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 is subject to                        
shareholder approval in accordance with the ASX Listing Rules.                  
The aggregate remuneration, and the manner in which it is                       
apportioned amongst Non-Executive Directors, is reviewed                        
annually.  The Board considers the amount of director fees                      
being paid by comparable companies with similar                                 
responsibilities and levels of 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                  
levels of experience of the executive when undertaking the                      
annual review process.                                                          
Details of remuneration for year ended 31 December 2009                         
Details of the remuneration of the Directors of Tawana                          
Resources NL and its controlled entities, are set out in the                    
following tables.                                                               
During the year ended 31 December 2009 there were no key                        
management personnel other than the directors of Tawana                         
Resources NL.                                                                   
Details of remuneration for years ended 31 December 2009 and                    
31 December 2008                                                                
2009        Salary Post    Cash   Non-    Share- Total   Perfor                 
           , fees Employ  Bonus  cash    based          m-ance                  
and    ment           Benefi  paymen         relate                  
           comm-  Benefi         ts      ts             d                       
           ission ts                     *                                      
           s      (Super-                                                       
annuat                                                        
                  ion)                                                          
           $      $       $      $       $      $       %                       
Directors                                                                       
Mr E Luff   52,000 -       -      -       27,468 79,468  -                      
Mr H Hill   14,409 -       -      -       -      14,409  -                      
Mr J        -      -       -      -       -      -       -                      
Babarczy                                                                        
Mr S        20,000 -       -      -       -      20,000  -                      
Horne                                                                           
Ms N        -      -       -      -       -      -       -                      
Mazwai                                                                          
Mr N        -      -       -      -       41,202 41,202  -                      
Barrie                                                                          
Mr B        -      -       -      -       13,734 13,734  -                      
Phillips                                                                        
Mr W Marx   -      -       -      -       27,468 27,468  -                      
           86,409 -       -      -       109,87 196,28                          
                                         2      1                               
*    These amounts represent the non-cash expense accrual for share options     
granted in prior financial years but not yet vested at the start of the 2009    
financial year.  No options were issued to directors in the year ended 31       
December 2009.                                                                  
2008        Salary Post    Cash   Non-    Share- Total   Perfor                 
, fees Employ- Bonus  cash    based          m-ance                  
           and    ment           Benefi  paymen         relate                  
           comm-  Benefi         ts      ts             d                       
           ission ts                                                            
s      (Super-                                                       
                  annuat                                                        
                  ion)                                                          
           $      $       $      $       $      $       %                       
Directors                                                                       
Mr W Marx   201,84 18,165  -      -       10,257 230,26  -                      
           0                                    2                               
Mr B        24,465 2,202   -      -       5,129  31,796  -                      
Phillips                                                                        
Mr E Luff   25,000 -       -      -       17,999 42,999  -                      
Mr N        35,833 -       -      -       2,559  38,392  -                      
Barrie                                                                          
Ms N        -      -       -      -       -      -       -                      
Mazwai                                                                          
           287,13 20,367  -      -       35,944 343,44                          
           8                                    9                               
Key                                                                             
Managemen                                                                       
t                                                                               
Personnel                                                                       
Mr A        107,99 9,720   -      -       1,252  118,97  -                      
Berryman    9                                    1                              
Mr C        150,00 13,500  -      -       5,115  168,61  -                      
Bailey      0                                    5                              
257,99 23,220  -      -       6,367  287,58                          
           9                                    6                               
           545,13 43,587  -      -       42,311 631,03                          
           7                                    5                               
Options granted as remuneration                                                 
All options issued to Directors and Key Management Personnel are issued for nil 
consideration.                                                                  
All options issued have been granted for up to a five year period, vesting      
within 12 and 24 months from contract or issue date.                            
All options issued carry no dividend or voting rights.  When exercised, each    
option is converted into one ordinary share pari passu with existing ordinary   
shares.                                                                         
The terms and conditions of each grant of options affecting the remuneration of 
Directors and Key Management Personnel in this, or future reporting periods,    
are as follows:                                                                 
The following table discloses the options granted as part of remuneration:      
Options   Options    Options   Total     Value of                     
          granted   exercised  lapsed    value of  options                      
                                         options   included in                  
                                         granted,  remuneration                 
exercised for the year                 
                                         and                                    
                                         lapsed                                 
          Value at  Intrinsic  Value at                                         
grant     value at   time of                                          
          date      exercise   lapse                                            
                    date                                                        
          $         $          $         $         $                            
2009                                                                            
During the 2009 year there were no options granted as                           
remuneration to directors or key management personnel.                          
                                                                                
2008                                                                            
Directors                                                                       
Mr W Marx  10,257    -          -         10,257    10,257                      
Mr B       5,129     -          -         5,129     5,129                       
Phillips                                                                        
Mr E Luff  17,999    -          -         17,999    17,999                      
Mr N       2,559     -          -         2,559     2,559                       
Barrie                                                                          
Ms N       -         -          -         -         -                           
Mazwai                                                                          
          35,944    -          -         35,944    35,944                       
Key                                                                             
Management                                                                      
Personnel                                                                       
Mr A       1,252     -          -         1,252     1,252                       
Berryman                                                                        
Mr C       5,115     -          -         5,115     5,115                       
Bailey                                                                          
          6,367     -          -         6,367     6,367                        
          42,311    -          -         42,311    42,311                       
Shares issued on exercise of compensation options                               
During the year no share options were exercised.                                
Employment contracts of directors and senior executives                         
There are no contracts between the Company and the Directors, the Executives or 
the Consultants.                                                                
Meetings of directors                                                           
During the financial year, 10 meetings of Directors were held.  Attendances by  
each Director during the year were as follows:                                  
Board meetings       Audit, risk and                               
                                  compliance                                    
                                  committee meetings                            
             Number    Number     Number    Number                              
attended  eligible   attended  eligible                            
                       to                   to                                  
                       attend               attend                              
Mr E Luff     10        10         -         -                                  
Mr H Hill     7         7          -         -                                  
Mr J          1         1          -         -                                  
Babarczy                                                                        
Mr S Horne    7         7          -         -                                  
Ms N Mazwai   1         3          -         -                                  
Mr N Barrie   3         3          -         -                                  
Mr B          1         2          -         -                                  
Phillips                                                                        
Mr W Marx     -         -          -         -                                  
Options                                                                         
At the date of this report, the unissued ordinary shares of Tawana Resources NL 
under option are as follows:                                                    
Grant       Date of      Exercise    Number                                     
date        expiry       price       under                                      
                                    option                                      
22 Jul      1 Apr 2011   $0.10       13,240,05                                  
2008                                 3                                          
22 Aug      30 Nov 2011  $0.35       1,420,000                                  
2007                                                                            
18 Jun      18 Jun 2012  $0.07       4,000,000                                  
2008                                                                            
17 Jan      17 Jan 2013  $0.10       6,000,000                                  
2009                                                                            
17 Jan      17 Jan 2014  $0.10       6,750,000                                  
2009                                                                            
17 Jan      17 Jan 2013  $0.07       6,750,000                                  
2009                                                                            
23 Feb      23 Feb 2013  $0.01       50,000,00                                  
2010                                 0                                          
                                    88,160,05                                   
                                    3                                           
During the years ended 31 December 2009 and 31 December 2008,                   
no options were exercised.                                                      
No person entitled to exercise the option had or has any right                  
by virtue of the option to participate in any share issue of                    
any other body corporate.                                                       
Indemnifying officers or auditor                                                
In accordance with the constitution, except as may be                           
prohibited by the Corporations Act 2001 every officer of the                    
Company shall be indemnified out of the property of the                         
Company against any liability incurred by him in his capacity                   
as officer, auditor or agent of the Company or any related                      
corporation in respect of any act or omission whatsoever and                    
howsoever occurring or in defending any proceedings, whether                    
civil or criminal.  The terms of the policy prevent disclosure                  
of the amount of the premium payable and the level of                           
indemnification under the insurance contract.                                   
Proceedings on behalf of the Company                                            
No person has applied for leave of Court to bring proceedings                   
on behalf of the Company or 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 any part of                  
these proceedings.                                                              
The Company was not a party to any such proceedings during the                  
year.                                                                           
Non-audit services                                                              
The Company did not engage its external auditor to provide any                  
non-audit services during or since the end of the financial                     
year.                                                                           
Auditor`s independence declaration                                              
The lead auditor`s independence declaration for the year ended                  
31 December 2009 has been received and can be found on page 28                  
of annual report.                                                               
Signed in accordance with a resolution of the Board of                          
Directors.                                                                      
HARRY HILL                                                                      
Director                                                                        
Dated at Melbourne this 31st day of March 2010                                  
CORPORATE GOVERNANCE STATEMENT                                                  
The Board members of Tawana Resources NL 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 Securities                  
Exchange (ASX) Corporate Governance Council in March 2003.  In                  
August 2007, the ASX Corporate Governance Council released a                    
second edition of the principles.  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 consolidated entity                    
in this statement.                                                              
The relationship between the Board and Senior Management is                     
critical to the consolidated entity`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 consolidated entity as a whole.  Their                    
focus is to enhance the interests of shareholders and other                     
key stakeholders and to ensure the consolidated entity is                       
properly managed.                                                               
Day to day management of the consolidated entity`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                       
consolidated entity`s Delegated Authorised Policy.                              
A description of the Company`s main corporate governance                        
practices is set out below.  All of 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 consolidated entity.  The Board                   
remains primarily responsible for the strategic direction and                   
financial aspirations of the consolidated entity, whilst                        
delegating the responsibility of management to the Managing                     
Director and/or 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 consolidated entity employees act with integrity                   
and due diligence in the interests of the Company and                           
stakeholders; and                                                               
Review and approval of all significant policies and procedures                  
across the consolidated entity.                                                 
Board composition                                                               
The Board 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 was chaired throughout the financial year by                          
Executive (Non-Independent) Chairmen.                                           
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 member of the                      
consolidated entity, 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                     
member of the consolidated entity, or an employee materially                    
associated with the service provided;                                           
is not a material supplier or customer of the Company or other                  
member of the consolidated entity, or an officer of or                          
otherwise associated directly with a material supplier or                       
customer;                                                                       
has no material contractual relationship with the Company or                    
another member of the consolidated entity 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; and                                                                    
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 for the whole of the financial                      
year it was not comprised of a majority of independent non-                     
executive Directors or chaired by an independent non-executive                  
director.  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.  As                   
at the date of this report the Board is comprised of a                          
majority of independent directors.                                              
Due to the stage of the Company`s development, the Board                        
believes that the most appropriate person for the position of                   
Chairman is an executive officer of the Company.  The                           
Executive Officer`s overall expertise is crucial to the                         
Company`s development and negates any perceived lack of                         
independence.                                                                   
The following were Directors during the 2009 year:                              
Director Capacity        Position       Held       Held                         
                                       office     office                        
                                       from       to                            
E Luff   Executive       Non-           31 Jul     Current                      
        Chairman        Independent    2009                                     
        Non-Executive   Non-           16 Nov     31 Jul                        
        Director        Independent    1998       2009                          
H Hill   Non-Executive   Independent    21 Aug     Current                      
        Director                       2009                                     
J        Non-Executive   Independent    9 Dec      Current                      
Babarczy Director                       2009                                    
S Horne  Non-Executive   Independent    31 Jul     4 Feb                        
        Director                       2009       2010                          
N Mazwai Director        Non-           30 Oct     21 Aug                       
                        Independent    2008       2009                          
N Barrie Executive       Non-           20 Jun     31 Jul                       
        Chairman        Independent    2008       2009                          
B        Non-Executive   Independent    4 Apr      27 Jul                       
Phillips Director                       2005       2009                         
W Marx   Managing        Non-           16 Nov     31 Jan                       
        Director        Independent    1998       2009                          
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 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.                                      
Responsibilities                                                                
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,                    
and                                                                             
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, to                     
assess the performance of each of the Directors.  Due to the                    
changes to the Board, the Board did not conduct performance                     
reviews during the 2009 year.                                                   
Corporate reporting                                                             
The Chairman and Company Secretary have made attestations                       
recommended by the ASX Corporate Governance Council as to the                   
Company`s financial condition prior to the Board signing this                   
report.                                                                         
Board committees                                                                
The Board has established an Audit Risk and Compliance                          
Committee.  In view of the Company`s current stage and the                      
small size of the Board, the roles that would otherwise be                      
performed by a remuneration committee and nomination committee                  
are performed by the full Board.                                                
Audit Risk and Compliance Committee                                             
The current members of the committee are:                                       
E Luff (Chairman)                                                               
H Hill                                                                          
The joint company secretaries also attend meetings of the                       
Audit Risk and Compliance Committee.                                            
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.                                                         
The Audit Risk and Compliance Committee is not comprised of a                   
majority of independent non-executive directors.  In light of                   
the Company`s current stage and constraints on the number of                    
independent non-executive directors the Board believes that                     
this committee composition is optimal in the circumstances.                     
External auditors                                                               
The Audit Risk and Compliance 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. William Buck Audit (Vic) Pty Ltd was                          
appointed as the external auditor in 2009.  It is William Buck                  
Audit (Vic) Pty Ltd 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 Risk and Compliance Committee, is                  
responsible for ensuring there are adequate policies in                         
relation to risk management, compliance and internal control                    
systems. 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 Company`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`s risk management policy and the operation of the                   
risk management and compliance system is managed by the                         
Company`s Audit Risk and Compliance Committee.                                  
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.                                     
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 consolidated entity 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 Company`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.                                                         
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 Board undertakes a review of the remuneration packages of                   
all Directors and executive officers on an annual basis.                        
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, and                                             
Other benefits                                                                  
Details of Directors and Key Management Personnel 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 website, within a                  
reasonable time, any public statements by the Company.                          
All policies referred to in this section are available by                       
contacting the Company.                                                         
AUDITOR`S INDEPENDENCE DECLARATION                                              
31 March 2010                                                                   
The Board of Directors                                                          
Tawana Resources NL                                                             
Level 1, 2 Ross Place                                                           
SOUTH MELBOURNE   VIC   3205                                                    
Dear Board Members                                                              
AUDITOR`S INDEPENDENCE DECLARATION IN ACCORDANCE WITH SECTION                   
307C OF THE CORPORATIONS ACT 2001                                               
TO THE DIRECTORS OF TAWANA RESOURCES NL                                         
In accordance with section 307C of the Corporations Act 2001,                   
I am pleased to provide the following declaration of                            
independence to the directors of Tawana Resources NL.                           
As lead audit partner for the audit of the financial report of                  
Tawana Resources NL for the financial year ended 31 December                    
2009, I declare that to the best of my knowledge and belief,                    
there have been no contraventions of:                                           
the auditor independence requirements of the Corporations Act                   
2001 in relation to the audit; and                                              
any applicable code of professional conduct in relation to the                  
audit.                                                                          
Yours sincerely                                                                 
Jeffrey Luckins                                                                 
Director                                                                        
William Buck Audit (VIC) Pty Ltd                                                
ABN 59 116 151 136                                                              
Dated in Melbourne, Australia on this 31th day of March 2010                    
STATEMENT OF COMPREHENSIVE INCOME                                               
FOR THE YEAR ENDED 31 DECEMBER 2009                                             
Not  Consolidated             Parent                            
                e                                                               
                     2009        2008         2009        2008                  
                     $           $            $           $                     

Revenue          4    23,173      56,996       5,848       47,039               
                                                                                
Corporate costs       (330,266)   (674,389)    (227,782)   (595,211)            
Depreciation          (174,766)   (294,353)    (112,590)   (212,647)            
Employee              (105,909)   (512,293)    (105,909)   (344,666)            
benefits                                                                        
expense                                                                         
Exploration           (3,945)     (1,651,383)  (3,945)     (1,649,647)          
expenses                                                                        
written off                                                                     
Foreign               -           18,700       -           18,700               
exchange gain                                                                   
Impairment of         -           -            (227,361)   (955,237)            
financial                                                                       
assets                                                                          
Prospecting fee       -           -            -           (211,928)            
Travel costs          -           (135,344)    -           (100,346)            
Finance costs         (19,408)    -            (19,408)    -                    
Other expenses   5    (363,765)   (634,090)    (244,494)   (442,776)            
Loss before           (974,886)   (3,826,156)  (935,641)   (4,446,719)          
income tax                                                                      
expense                                                                         
Income tax       6    -           -            -           -                    
expense                                                                         
Net loss for          (974,886)   (3,826,156)  (935,641)   (4,446,719)          
the period                                                                      
                                                                                
Other                                                                           
comprehensive                                                                   
income                                                                          
Foreign               39,245      (620,563)    -           -                    
currency                                                                        
translation                                                                     
Other                 39,245      (620,563)    -           -                    
comprehensive                                                                   
income for the                                                                  
period, net of                                                                  
tax                                                                             
Total                 (935,641)   (4,446,719)  (935,641)   (4,446,719)          
comprehensive                                                                   
income for the                                                                  
period                                                                          
                                                                                
Earnings per                                                                    
share                                                                           
 Basic loss     25   (0.75)      (3.71)                                         
(cents)                                                                         
Diluted loss   25   (0.75)      (3.71)                                         
(cents)                                                                         
The above Statement of Comprehensive Income should be read in conjunction with  
the accompanying notes                                                          
STATEMENT OF FINANCIAL POSITION                                                 
AS AT 31 DECEMBER 2009                                                          
         No  Consolidated                Parent                                 
         te                                                                     
2009          2008          2009         2008                      
             $             $             $            $                         
                                                                                
Current                                                                         
assets                                                                          
Cash and  7   348,609       18,090        342,284      4,995                    
cash                                                                            
equivalen                                                                       
ts                                                                              
Trade and 8   55,474        30,996        55,441       25,265                   
other                                                                           
receivabl                                                                       
es                                                                              
Inventori 9   77,131        81,268        -            -                        
es                                                                              
Total         481,214       130,354       397,725      30,260                   
current                                                                         
assets                                                                          
                                                                                
Non-                                                                            
current                                                                         
assets                                                                          
Trade and 8   43,021        82,095        -            38,500                   
other                                                                           
receivabl                                                                       
es                                                                              
Investmen 10  16,640        16,640        16,640       16,640                   
t in                                                                            
associate                                                                       
Other     11  -             -             2,893,720    3,045,550                
financial                                                                       
assets                                                                          
Property, 12  310,769       495,222       94,058       206,648                  
plant and                                                                       
equipment                                                                       
Explorati 13  5,950,734     5,883,355     3,258,784    3,146,194                
on                                                                              
expenditu                                                                       
re                                                                              
Total non-    6,321,164     6,477,312     6,263,202    6,453,532                
current                                                                         
assets                                                                          
                                                                                
Total         6,802,378     6,607,666     6,660,927    6,483,792                
assets                                                                          
                                                                                
Current                                                                         
liabiliti                                                                       
es                                                                              
Trade and 14  357,763       424,389       208,620      321,122                  
other                                                                           
payables                                                                        
Provision     14,992        40,575        14,992       40,575                   
s                                                                               
Borrowing 15  200,000       -             200,000      -                        
s                                                                               
Total         572,755       464,964       423,612      361,697                  
current                                                                         
liabiliti                                                                       
es                                                                              

Non-                                                                            
current                                                                         
liabiliti                                                                       
es                                                                              
Trade and 14  -             80,689        -            80,689                   
other                                                                           
payables                                                                        
Provision     -             28,299        -            -                        
s                                                                               
Borrowing 15  350,000       -             357,692      7,692                    
s                                                                               
Total non-    350,000       108,988       357,692      88,381                   
current                                                                         
liabiliti                                                                       
es                                                                              

Total         922,755       573,952       781,304      450,078                  
liabiliti                                                                       
es                                                                              

Net           5,879,623     6,033,714     5,879,623    6,033,714                
assets                                                                          
                                                                                
Equity                                                                          
Contribut 16  35,356,374    34,708,732    35,356,374   34,708,732               
ed equity                                                                       
Reserves  17  (2,397,152)   (2,570,305)   593,222      459,314                  
Accumulat 18  (27,079,599)  (26,104,713)  (30,069,973) (29,134,332)             
ed losses                                                                       
Total         5,879,623     6,033,714     5,879,623    6,033,714                
equity                                                                          
The above Statement of Financial Position should be read in conjunction with    
the accompanying notes.                                                         
                Consolidated                                                    
                Issued         Reserves     Accumulated   Total                 
capital                     losses                              
                $              $            $             $                     
                                                                                
Balance at 1     34,708,732     (2,570,305)  (26,104,713)  6,033,714            
January 2009                                                                    
                                                                                
Net loss for     -              -            (974,886)     (974,886)            
the period                                                                      
Shares issued,   647,642        -            -             647,642              
net of costs                                                                    
Share options    -              133,908      -             133,908              
expense                                                                         
Foreign          -              39,245       -             39,245               
currency                                                                        
translation                                                                     
adjustments                                                                     
Balance at 31    35,356,374     (2,397,152)  (27,079,599)  5,879,623            
December 2009                                                                   
                                                                                
Balance at 1     33,339,335     (2,148,733)  (22,278,557)  8,912,045            
January 2008                                                                    
                                                                                
Net loss for     -              -            (3,826,156)   (3,826,156)          
the period                                                                      
Shares issued,   1,369,397      -            -             1,369,397            
net of costs                                                                    
Share options    -              198,991      -             198,991              
expense                                                                         
Foreign          -              (620,563)    -             (620,563)            
currency                                                                        
translation                                                                     
adjustments                                                                     
Balance at 31    34,708,732     (2,570,305)  (26,104,713)  6,033,714            
December 2008                                                                   
STATEMENT OF CHANGES IN EQUITY                                                  
FOR THE YEAR ENDED 31 DECEMBER 2009                                             
Parent                                                            
              Issued       Reserves  Accumulated    Total                       
              capital                losses                                     
              $            $         $              $                           

Balance at 1   34,708,732   459,314   (29,134,332)   6,033,714                  
January 2009                                                                    
                                                                                
Net loss for   -            -         (935,641)      (935,641)                  
the period                                                                      
Shares issued, 647,642      -         -              647,642                    
net of costs                                                                    
Share options  -            133,908   -              133,908                    
expense                                                                         
Balance at 31  35,356,374   593,222   (30,069,973)   5,879,623                  
December 2009                                                                   

Balance at 1   33,339,335   260,323   (24,687,613)   8,912,045                  
January 2008                                                                    
                                                                                
Net loss for   -            -         (4,446,719)    (4,446,719)                
the period                                                                      
Shares issued, 1,369,397    -         -              1,369,397                  
net of costs                                                                    
Share options  -            198,991   -              198,991                    
expense                                                                         
Balance at 31  34,708,732   459,314   (29,134,332)   6,033,714                  
December 2008                                                                   
The above Statement of Changes in Equity should be read in conjunction with the 
accompanying notes.                                                             
STATEMENT OF CASH FLOWS                                                         
FOR THE YEAR ENDED 31 DECEMBER 2009                                             
Note  Consolidated            Parent                            
                      2009       2008         2009        2008                  
                      $          $            $           $                     
                                                                                
Cash flows from                                                                 
operating                                                                       
activities                                                                      
Receipts from          18,205     40,943       16,379      40,943               
customers                                                                       
Payments to            (507,950)  (1,298,519)  (486,865)   (998,867)            
suppliers and                                                                   
employees                                                                       
Interest               15,477     10,122       -           165                  
received                                                                        
Other                  -          5,931        -           5,931                
Net cash flows   23(b  (474,268)  (1,241,523)  (470,486)   (951,828)            
used in          )                                                              
operating                                                                       
activities                                                                      
                                                                                
Cash flows from                                                                 
investing                                                                       
activities                                                                      
Proceeds from          7,776      23,567       -           23,567               
sale of plant                                                                   
and equipment                                                                   
Purchase of            -          (341)        -           -                    
plant and                                                                       
equipment                                                                       
Payments for           (202,167)  (537,650)    (116,535)   (263,893)            
exploration                                                                     
Environmental          39,074     -            38,500      -                    
bonds refunded                                                                  
Investments in         -          -            (75,531)    (176,187)            
subsidiaries                                                                    
Net cash flows         (155,317)  (514,424)    (153,566)   (416,513)            
used in                                                                         
investing                                                                       
activities                                                                      
                                                                                
Cash flows from                                                                 
financing                                                                       
activities                                                                      
Proceeds from          500,000    1,497,904    500,000     1,497,904            
issue of shares                                                                 
Capital raising        (88,659)   (258,599)    (88,659)    (258,599)            
costs                                                                           
Proceeds from          550,000    -            550,000     -                    
borrowings                                                                      
Net cash from          961,341    1,239,305    961,341     1,239,305            
financing                                                                       
activities                                                                      

Net decrease in        331,756    (516,642)    337,289     (129,036)            
cash and cash                                                                   
equivalents                                                                     
Cash and cash          18,090     149,862      4,995       134,031              
equivalents at                                                                  
beginning of                                                                    
period                                                                          
Net foreign            (1,237)    384,870      -           -                    
exchange                                                                        
differences                                                                     
Cash and cash    7     348,609    18,090       342,284     4,995                
equivalents at                                                                  
end of period                                                                   
The above Statement of Cash Flows should be read in conjunction with the        
accompanying notes.                                                             
NOTES TO THE FINANCIAL STATEMENTS                                               
FOR THE YEAR ENDED 31 DECEMBER 2009                                             
1.   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 NL as an individual entity   
and the consolidated entity consisting of Tawana Resources NL and its           
subsidiaries.                                                                   
(a)  Basis of preparation                                                       
This general purpose financial report has been prepared in accordance with      
Australian Accounting Standards, other authoritative pronouncements and the     
Australian Accounting Standards Board, Urgent Issues Group Interpretations and  
the Corporations Act 2001.                                                      
The financial report is presented in Australian dollars and rounded to the      
nearest dollar.                                                                 
The financial report is prepared on a going concern basis.                      
These financial statements have been prepared under the historical cost         
convention.                                                                     
Compliance with AIFRS                                                           
The financial report complies with Australian Accounting Standards, which       
include Australian equivalents to International Financial Reporting Standards   
("AIFRS"). Compliance with AIFRS ensures that the financial report, comprising  
the financial statements and notes thereto, complies with International         
Financial Reporting Standards ("IFRS").                                         
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 consolidated entity`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                                                
Subsidiaries                                                                    
The consolidated financial statements incorporate the assets and liabilities of 
all subsidiaries of Tawana Resources NL as at 31 December 2009 and the results  
of all subsidiaries for the year then ended.  Tawana Resources NL 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 consolidated entity 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 consolidated entity controls another entity.                                
Subsidiaries are fully consolidated from the date on which control is           
transferred to the consolidated entity.  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 consolidated entity.                                        
1.   Summary of significant accounting policies (continued)                     
(b)  Principles of consolidation (continued)                                    
Intercompany transactions, balances and unrealised gains on transactions        
between consolidated entity 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          
consolidated entity.                                                            
Investments in subsidiaries are carried at cost less impairment losses in the   
individual financial statements of Tawana Resources NL.                         
Associates                                                                      
Associates are all entities over which the consolidated entity 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 consolidated entity`s share of its associates` post acquisition profits or  
losses is recognised in the Statement of Comprehensive Income, 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 Statement of Comprehensive Income, while in the consolidated    
financial statements they reduce the carrying amount of the investment.         
When the consolidated entity`s share of losses in an associate equals or        
exceeds its interest in the associate, including other unsecured long-term      
receivables, the consolidated entity does not recognise further losses, unless  
it has incurred obligations or made payment on behalf of the associate.         
Unrealised gains on transactions between the consolidated entity and its        
associate are eliminated to the extent of the consolidated entity`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 consolidated entity.               
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.                                                           
(c)  Foreign currency translation                                               
The presentation currency of Tawana Resources NL and its subsidiaries is        
Australian dollars (A$).  The functional currency of Tawana Resources NL 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 revalued  
at the rate of exchange prevailing at the balance date.                         
1.   Summary of significant accounting policies (continued)                     
(c)  Foreign currency translation (continued)                                   
As at the reporting date the assets and liabilities of these overseas           
subsidiaries are translated into the presentation currency of Tawana Resources  
NL at the rate of exchange prevailing at the balance date and the Statement of  
Comprehensive Income is 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          
Statement of Comprehensive Income.                                              
(d)  Revenue recognition                                                        
Revenue is measured at the fair value of consideration received or receivable.  
Revenue is recognised to the extent that it is probable that the economic       
benefits will flow to the consolidated entity 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.                                                                         
(e)  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 with the    
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 at 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 and assets 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 be reversed in the foreseeable future.                                 
1.   Summary of significant accounting policies (continued)                     
(e)  Income tax (continued)                                                     
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 that are attributable to amounts recognised   
directly in equity, are also recognised directly in equity.                     
(f)  Impairment of assets                                                       
Assets, except for exploration and evaluation (refer to Note 1(g)) 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.                                              
(g)  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.                                                                    
(h)  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                                           
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(f).                                       
1.   Summary of significant accounting policies (continued)                     
(i)  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.                      
(j)  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.       
(k)  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 consolidated entity 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 Statement of             
Comprehensive Income 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 Statement of Comprehensive Income.       
(l)  Cash and cash equivalents                                                  
Cash and short-term deposits in the Statement of Financial Position 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.                                                                     
1.   Summary of significant accounting policies (continued)                     
(m)  Employee entitlements                                                      
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.                                                        
Share-based payments                                                            
Share-based compensation benefits are provided to employees in accordance with  
the Tawana Resources Employee Option Plan, an employee share scheme.            
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.                                                                        
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.                                                          
(n)  Provisions                                                                 
Provisions are recognised when the consolidated entity has a present            
obligation, legal or constructive, as a result of a past event and 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.                                                       
(o)  Leases                                                                     
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 Statement of Comprehensive Income on a straight-line basis over the      
period of the lease.                                                            
(p)  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 Statement of Comprehensive Income 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).                   
(q)  Trade and other payables                                                   
These amounts represent liabilities for goods and services provided to the      
consolidated entity prior to the end of financial year which are unpaid.  The   
amounts are unsecured and are usually paid within 30 days of recognition.       
1.   Summary of significant accounting policies (continued)                     
(r)  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 Statement of Financial    
Position.                                                                       
Cash flows are included in the Statement of Cash Flows 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.                        
(s)  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.                          
(t)  Earnings per share                                                         
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.                                         
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.         
1.   Summary of significant accounting policies (continued)                     
(u)  New accounting standards and interpretations                               
Accounting standards not previously applied                                     
The consolidated entity has adopted the following new and revised Australian    
Accounting Standards issued by the AASB which are mandatory to apply to the     
current period.  Disclosures required by these Standards that are deemed        
material have been included in this financial report on the basis that they     
represent a significant change in information from that previously made         
available.                                                                      
Presentation of Financial Statements                                            
AASB 101 prescribes the content and structure of the financial statements.      
Changes reflected in this report include:                                       
the replacement of Income Statement with Statement of Comprehensive Income.     
Items of income and expense not recognised in profit or loss are now disclosed  
as components of "other comprehensive income";                                  
the adoption of the separate income statement approach to the presentation of   
the Statement of Comprehensive Income; and                                      
other financial statements are renamed in accordance with the Standard.         
Share-Based Payments                                                            
From 1 January 2009, AASB 2 has been clarified to show that vesting conditions  
consist of service and performance conditions only.  Other elements of a share- 
based payment transaction should therefore be considered for the purposes of    
determining fair value.  Cancellations are also required to be treated in the   
same manner whether cancelled by the entity or by another party.                
2.   Financial risk management                                                  
The consolidated entity`s exploration activities are being funded by equity and 
do not expose the consolidated entity 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.            
(a)  Market risk                                                                
Foreign currency risk                                                           
The consolidated entity operates internationally and is exposed to foreign risk 
arising from currency exposure to the South African Rand (ZAR) and Botswana     
Pula (BWP).  Exposure is limited to maintaining sufficient funds in the         
particular countries to meet expenditure commitments.                           
Management does not actively manage foreign exchange risk.                      
2.   Financial risk management (continued)                                      
(a)  Market risk (continued)                                                    
Foreign currency risk (continued)                                               
The consolidated entity`s exposure to foreign currency risk at the reporting    
date was as follows:                                                            
                        31 December 2009   31 December 2008                     
ZAR       BWP      ZAR       BWP                        
                        $         $        $         $                          
  Financial assets                                                              
  and liabilities                                                               
Trade receivables     34        -        34        1,633                      
  Cash and cash         4,296     2,029    11,515    1,575                      
  equivalents                                                                   
  Trade payables        (139,842  (9,302)  (38,998)  (64,249)                   
)                                                       
  Net exposure          (135,512  (7,273)  (27,449)  (61,041)                   
                        )                                                       
The carrying amounts of the parent entity`s financial assets and liabilities    
are denominated in Australian dollars (AUD).                                    
The consolidated entity has conducted a sensitivity analysis of its exposure to 
foreign currency risk.  The sensitivity analysis below is conducted on a        
currency by currency basis based on the year-end spot rates average annual      
movement in the AUD/ZAR and AUD/BWP exchange rate over the past 5 years, being  
1% and 2% respectively.                                                         
This analysis assumes that all other variables, in particular interest rates,   
remain consistent.  The analysis is performed on the same basis for 2008.       
31 December 2009   31 December 2008                     
                        AUD       AUD      AUD       AUD                        
                        +/-1%     +/-2%    +/-1%     +/-2%                      
                        $         $        $         $                          
Financial assets                                                              
  and liabilities                                                               
  Increase                                                                      
  - Trade receivables   -         -        -         33                         
- Cash and cash       63        124      115       31                         
  equivalents                                                                   
  - Trade payables      1,533     3,035    (390)     (1,285)                    
  Decrease                                                                      
- Trade receivables   -         -        -         (33)                       
  - Cash and cash       (63)      (124)    (115)     (31)                       
  equivalents                                                                   
  - Trade payables      (1,533)   (3,035)  390       1,285                      
The foreign denominated balances are not accounted for as hedges in accordance  
with AASB 139 therefore all foreign exchange movements would be recognised      
within the current period Statement of Comprehensive Income and within retained 
earnings.                                                                       
(b)  Credit risk                                                                
Management does not actively manage credit risk.                                
The consolidated entity has no significant exposure to credit risk from         
external parties at period end given all the counterparties to its credit       
exposures are related entities of the consolidated entity.  The maximum         
exposure to credit risk from related entities of the consolidated entity at the 
reporting date is equal to the carrying value of financial assets at 31         
December 2009.                                                                  
Other receivables are of a low value.  Activity with trade debtors is limited   
and the recoverability has not been brought into question.  There is no history 
of bad debts.                                                                   
2.   Financial risk management (continued)                                      
(c)  Liquidity and capital risk management                                      
The consolidated entity`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 consolidated entity may adjust 
the amount of dividends paid to shareholders, return capital to shareholders,   
issue new shares or sell assets to reduce debt.                                 
During 2009, the consolidated entity`s strategy, which was unchanged from 2008, 
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.             
(d)  Cash flow and fair value interest rate risk                                
As the consolidated entity has no significant interest-bearing assets, the      
consolidated entity`s income and operating cash flows are not materially        
exposed to changes in market interest rates.                                    
(e)  Fair value estimation                                                      
The carrying amount of financial assets and financial liabilities recorded in   
the financial statements represents their respective fair values determined in  
accordance with the accounting policies disclosed in Note 1.                    
3.   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 consolidated entity 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.                                    
(i)  Recoverability of exploration expenditure                                  
The consolidated entity 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(g).                                                                      
Activity at the following projects ceased during 2008; Pilbara, Black Top,      
Daniel Kimberlite, Riverton and Vleiplaats.  Consequently the Company wrote off 
exploration expenditure relating to these projects that was previously          
capitalised in the 2008 year.  Refer to Note 13 for details.                    
3.   Critical accounting estimates and judgements (continued)                   
Critical accounting estimates and assumptions (continued)                       
(ii) Impairment of assets                                                       
The consolidated entity tests annually whether assets have suffered any         
impairment, in accordance with Note 1(f).  The recoverable amount of            
investments in subsidiaries is based on the net asset book value of the         
investments in the subsidiaries, which management considers equal to net asset  
values.  Refer to Note 11 for details.                                          
4.   Revenue and other income                                                   
                        Consolidated       Parent                               
                        2009      2008     2009      2008                       
$         $        $         $                          
                                                                                
  Revenue from                                                                  
  continuing                                                                    
operations                                                                    
  Interest received     15,477    10,122   -         165                        
  Laboratory income     6,035     40,943   5,848     40,943                     
                        21,512    51,065   5,848     41,108                     

  Other income                                                                  
  Profit on sale of     1,661     5,931    -         5,931                      
  assets                                                                        
5.   Expenses                                                                   
  Other expenses from                                                           
  continuing                                                                    
  operations                                                                    
includes:                                                                     
  Administration        102,658   89,368   84,165    57,260                     
  costs                                                                         
  Auditors`             43,803    78,183   13,773    60,245                     
remuneration                                                                  
  Listing fees          78,707    74,151   78,707    74,151                     
  Occupancy costs       99,522    198,251  67,849    128,839                    
  Repairs and           3,362     46,273   -         -                          
maintenance                                                                   
  Other expenses        35,713    147,864  -         122,281                    
                        363,765   634,090  244,494   442,776                    
6.   Income tax                                                                 
(a)  Income tax expense                                                         
  Current tax           -         -        -         -                          
  Deferred tax          -         -        -         -                          
  Income tax expense    -         -        -         -                          
6.   Income tax (continued)                                                     
(b)  Reconciliation of income tax expense to prima facie tax payable            
                        Consolidated       Parent                               
                        2009      2008     2009      2008                       
$         $        $         $                          
                                                                                
  Loss before income    (974,886  (3,826,1 (935,641  (4,446,7                   
  tax expense           )         56)      )         19)                        
Tax at 30%            (292,466  (1,147,8 (280,692  (1,334,0                   
  (Australian rate)     )         47)      )         16)                        
                                                                                
  Tax effect of                                                                 
amounts that are /                                                            
  are not deductible                                                            
  / (taxable) in                                                                
  calculating income                                                            
tax:                                                                          
  - Impairment of       -         -        68,208    286,571                    
  assets                                                                        
  - Exploration         60,402    97,716   34,960    79,689                     
expenditure                                                                   
  - Other               -         27,340   -         27,340                     
  Tax losses not        234,087   1,010,67 177,524   940,416                    
  brought to account              6                                             
2,023     (12,115) -         -                          
  Difference in         (2,023)   12,115   -         -                          
  overseas tax rates                                                            
  Income tax expense    -         -        -         -                          
(c)  Amounts recognised directly in equity                                      
No amounts in respect of tax expense or benefit have been included directly in  
equity.                                                                         
(d)  Tax losses                                                                 
Unused tax losses     35,003,6  34,230,1 23,474,4  22,882,7                   
  for which no          81        35       78        31                         
  benefit has been                                                              
  recognised                                                                    
10,389,3  10,155,2 7,042,34  6,864,81                   
  Potential tax         80        93       3         9                          
  benefit 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 consolidated entity derives future assessable income of a nature and        
sufficient amount to enable the benefit of losses to be realised;               
the consolidated entity continues to comply with the conditions of              
deductibility imposed in each legislative environment, and                      
no changes in tax legislation adversely affect the consolidated entity in       
realising the benefit from the deduction for the losses.                        
7.   Cash and cash equivalents                                                  
                        Consolidated       Parent                               
                        2009      2008     2009      2008                       
$         $        $         $                          
                                                                                
  Cash on hand and at   348,609   18,090   342,284   4,995                      
  bank                                                                          
8.   Trade and other receivables                                                
  Current                                                                       
  Trade debtors         11,425    23,595   11,392    21,923                     
  GST / VAT             44,049    7,401    44,049    3,342                      
receivable                                                                    
                        55,474    30,996   55,441    25,265                     
                                                                                
  Non-current                                                                   
Other deposits        43,021    82,095   -         38,500                     
9.   Inventories                                                                
  Rough diamonds - at   77,131    81,268   -         -                          
  lower of cost and                                                             
recoverable value                                                             
10.  Investment in associate                                                    
  Vecto Trade 436       16,640    16,640   16,640    16,640                     
  (Pty) Ltd - at cost                                                           
Tawana Resources NL 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.                                                   
11.  Other financial assets                                                     
  Investment in         -         -        11,811,9  11,736,4                   
  subsidiaries - at                        60        29                         
cost                                                                          
  Less accumulated      -         -        (8,918,2  (8,690,8                   
  impairment losses                        40)       79)                        
                        -         -        2,893,72  3,045,55                   
0         0                          
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 the recoverable value of the              
subsidiaries.  The current year impairment expense is $227,361 (2008 $955,237). 
Movement in carrying values                                                     
  Balance at            -         -        3,045,55  3,887,73                   
  beginning of year                        0         8                          
Additions             -         -        75,531    113,049                    
  Impairment            -         -        (227,361  (955,237                   
                                           )         )                          
  Balance at end of     -         -        2,893,72  3,045,55                   
year                                     0         0                          
12.  Property, plant and equipment                                              
                Consolidated                  Parent                            
                2009            2008          2009       2008                   
$               $             $          $                      
                                                                                
  Freehold      339,341         343,868       -          -                      
  land and                                                                      
buildings -                                                                   
  at cost                                                                       
  Accumulated   (149,532)       (119,759)     -          -                      
  depreciatio                                                                   
n                                                                             
                189,809         224,109       -          -                      
                                                                                
  Plant and     1,251,897       1,740,059     788,133    788,133                
equipment -                                                                   
  at cost                                                                       
  Accumulated   (1,137,655)     (1,496,675)   (694,075)  (581,485)              
  depreciatio                                                                   
n                                                                             
                114,242         243,384       94,058     206,648                
                                                                                
  Motor         29,767          170,351       -          -                      
vehicles -                                                                    
  at cost                                                                       
  Accumulated   (23,049)        (142,622)     -          -                      
  depreciatio                                                                   
n                                                                             
                6,718           27,729        -          -                      
                                                                                
                310,769         495,222       94,058     206,648                
Movement in carrying values                                                     
  Freehold land                                                                 
  and buildings                                                                 
  Carrying        224,109       274,150     -           -                       
value at 1                                                                    
  January                                                                       
  Foreign         (2,844)       (20,525)    -           -                       
  currency                                                                      
translation                                                                   
  Depreciation    (31,456)      (29,516)    -           -                       
  expense                                                                       
  Carrying        189,809       224,109     -           -                       
value at 31                                                                   
  December                                                                      
                                                                                
  Plant and                                                                     
equipment                                                                     
  Carrying        243,384       510,447     206,648     442,862                 
  value at 1                                                                    
  January                                                                       
Additions                     341         -           -                       
  Disposals       (6,115)       (23,567)    -           (23,567)                
  Foreign         (431)         (10,232)    -           -                       
  currency                                                                      
translation                                                                   
  Depreciation    (122,596)     (233,605)   (112,590)   (212,647)               
  expense                                                                       
  Carrying        114,242       243,384     94,058      206,648                 
value at 31                                                                   
  December                                                                      
                                                                                
  Motor                                                                         
vehicles                                                                      
  Carrying        27,729        66,292      -           -                       
  value at 1                                                                    
  January                                                                       
Foreign         (297)         (7,331)     -           -                       
  currency                                                                      
  translation                                                                   
  Depreciation    (20,714)      (31,232)    -           -                       
expense                                                                       
  Carrying        6,718         27,729      -           -                       
  value at 31                                                                   
  December                                                                      

                  310,769       495,222     94,058      206,648                 
13.  Exploration expenditure                                                    
The exploration and evaluation expenditure relates to the consolidated entity`s 
projects in South Africa, Botswana and Australia.  Exploration in Australia is  
operated under a joint venture.                                                 
                     Consolidated           Parent                              
                     2009       2008        2009        2008                    
$          $           $           $                       
                                                                                
  At cost            5,950,734  5,883,355   3,258,784   3,146,194               
                                                                                
Expenditure                                                                   
  written off                                                                   
  during the year                                                               
  is as follows:                                                                
Australian         3,945      572,989     3,945       572,989                 
  projects                                                                      
  South African      -          1,078,394   -           1,076,658               
  projects                                                                      
3,945      1,651,383   3,945       1,649,647               
Movement in carrying values                                                     
  Balance at        5,883,355   7,971,366     3,146,194  4,531,948              
  beginning of                                                                  
year                                                                          
  Expenditure       201,340     537,650       116,535    263,893                
  during the                                                                    
  year                                                                          
Expenditure       (3,945)     (1,651,383)   (3,945)    (1,649,647)            
  written off                                                                   
  during the                                                                    
  year                                                                          
Foreign           (130,016)   (974,278)     -          -                      
  currency                                                                      
  translation                                                                   
  Balance at end    5,950,734   5,883,355     3,258,784  3,146,194              
of year                                                                       
14.  Trade and other payables                                                   
  Current                                                                       
  Trade creditors       338,355   148,088  189,212   44,821                     
Other creditors and   19,408    276,301  19,408    276,301                    
  accruals                                                                      
                        357,763   424,389  208,620   321,122                    
                                                                                
Non-current                                                                   
  Other creditors       -         80,689   -         80,689                     
Trade creditors and other current 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 $154,730 or South African Rand  
($ZAR) 963,403 and Botswana Pula (BWP) 56,500.  These are non-interest bearing  
and their carrying value approximates their fair value.                         
15.  Borrowings                                                                 
  Current                                                                       
  Convertible notes     200,000   -        200,000   -                          
  (i)                                                                           

  Non-current                                                                   
  Convertible notes     350,000   -        350,000   -                          
  (ii)                                                                          
Loans from            -         -        7,692     7,692                      
  subsidiaries (iii)                                                            
                        350,000   -        357,692   7,692                      
(i)  Convertible notes are convertible at $0.03 per share, with interest        
payable at the Bank Bill Rate plus 3% per annum and maturing 13 July 2010.      
(ii) Convertible notes are convertible at $0.005 per share, with interest       
payable every 6 months at a rate of 11.00% per annum, for a term of 2 years.    
(iii)     Loans from subsidiaries are repayable on demand, and are non-interest 
bearing.                                                                        
16.  Contributed equity                                                         
(a)  Issued capital                                                             
                        Consolidated       Parent                               
2009      2008     2009      2008                       
                        $         $        $         $                          
                                                                                
  Ordinary shares,      35,356,3  34,708,7 35,356,3  34,708,7                   
fully paid            74        32       74        32                         
(b)  Movements in share capital                                                 
                        Parent             Parent                               
                        2009      2008     2009      2008                       
Number    Number   $         $                          
                                                                                
  Balance at            113,763,  92,397,4 34,708,7  33,339,3                   
  beginning of year     134       81       32        35                         
Shares issued         103,375,  21,365,6 736,300   1,627,99                   
  during year           720       53                 6                          
  Transaction costs     -         -        (88,658)  (258,599                   
  relating to share                                  )                          
issues                                                                        
  Balance at end of     217,138,  113,763, 35,356,3  34,708,7                   
  year                  854       134      74        32                         
(c)  Terms and conditions of contributed equity                                 
Holders of ordinary shares are entitled to receive dividends as declared from   
time to time and are entitled to one vote per share at shareholders` meetings.  
In the event of winding up of the Company, ordinary shareholders rank after all 
other shareholders and creditors and are fully entitled to any proceeds of      
liquidation.                                                                    
17.  Reserves                                                                   
                        Consolidated       Parent                               
                        2009      2008     2009      2008                       
$         $        $         $                          
                                                                                
  Foreign currency      (2,990,3  (3,029,6 -         -                          
  translation           74)       19)                                           
Options               570,338   436,430  570,338   436,430                    
  Asset revaluation     22,884    22,884   22,884    22,884                     
                        (2,397,1  (2,570,3 593,222   459,314                    
                        52)       05)                                           
(a)  Foreign currency translation reserve                                       
Exchange differences arising from the translation of foreign controlled         
entities are taken to the foreign currency translation reserve, as described in 
Note 1(c).                                                                      
Balance at            (3,029,6  (2,409,0 -         -                          
  beginning of year     19)       56)                                           
  Foreign currency      39,245    (620,563 -         -                          
  translation                     )                                             
differences                                                                   
  Balance at end of     (2,990,3  (3,029,6 -         -                          
  year                  74)       19)                                           
17.  Reserves (continued)                                                       
(b)  Options reserve                                                            
The options reserve records the fair value of options issued but not exercised. 
                  Note  Consolidated       Parent                               
                        2009      2008     2009      2008                       
$         $        $         $                          
                                                                                
  Balance at            436,430   237,439  436,430   237,439                    
  beginning of                                                                  
year                                                                          
  Options issued  25    133,908   198,991  133,908   198,991                    
  during year                                                                   
  Balance at end        570,338   436,430  570,338   436,430                    
of year                                                                       
(c)  Asset revaluation reserve                                                  
The asset revaluation reserve records revaluations of non-current assets.  This 
is a historical reserve and there have been no movements in the years ended 31  
December 2009 and 2008.                                                         
  Balance at end of     22,884    22,884   22,884    22,884                     
  year                                                                          
18.  Accumulated losses                                                         
Balance at    (26,104,713)   (22,278,557) (29,134,332)  (24,687,613)          
  beginning                                                                     
  of year                                                                       
  Net loss      (974,886)      (3,826,156)  (935,641)     (4,446,719)           
for the                                                                       
  year                                                                          
  Balance at    (27,079,599)   (26,104,713) (30,069,973)  (29,134,332)          
  end of year                                                                   
19.  Key management personnel disclosures                                       
(a)  Directors and other key management personnel                               
The following persons were directors of Tawana Resources NL during the          
financial year:                                                                 
Euan Luff                                                                       
Harry Hill (appointed 21 August 2009)                                           
Julian Babarczy (appointed 9 December 2009)                                     
Stirling Horne (appointed 31 July 2009, resigned 4 February 2010)               
Nonkqubela Mazwai (resigned 21 August 2009)                                     
Neil Barrie (resigned 31 July 2009)                                             
Brian Phillips (resigned 27 July 2009)                                          
Wolfgang Marx (resigned 31 January 2009)                                        
(b)  Compensation of key management personnel                                   
                                           Consolidated                         
                                           2009      2008                       
                                           $         $                          

  Short-term employee                      86,409    545,137                    
  benefits                                                                      
  Post-employment                          -         43,587                     
benefits                                                                      
  Share-based                              109,872   42,311                     
  payments                                                                      
                                           196,281   631,035                    
19.  Key management personnel disclosures (continued)                           
(c)  Equity instrument disclosures relating to key management personnel         
(i)  Option holdings                                                            
The number of options over ordinary shares in the Company held during the       
financial year by each director of Tawana Resources NL and other key management 
personnel of the Company, including their personally related parties, are set   
out below.                                                                      
2009                                                                            
Name        Balance   Granted    Ex.    Other        Balance at    Options      
           at start  during     during changes      end of year   vested        
           of year   year as    year   during year                and           
                     remun-            *                          exercisa      
eration                                      ble at        
                                                                  end of        
                                                                  year          
           Number    Number     Number Number       Number        Number        
Directors                                                                       
Mr E Luff   2,104,15  4,000,000  -      -            6,104,150     6,104,15     
           0                                                      0             
Mr H Hill   -         -          -      -            -             -            
Mr J        -         -          -      -            -             -            
Babarczy                                                                        
Mr S        -         -          -      -            -             -            
Horne                                                                           
Ms N        -         -          -      -            -             -            
Mazwai                                                                          
Mr N        4,270,00  6,000,000  -      (10,270,000  -             -            
Barrie      0                           )                                       
Mr B        312,500   2,000,000  -      (2,312,500)  -             -            
Phillips                                                                        
Mr W Marx   2,814,00  4,000,000  -      (6,814,000)  -             -            
           0                                                                    
9,500,65  16,000,00  -      (19,396,500  6,104,150     6,104,15      
           0         0                 )                          0             
*    Balance at date of resignation                                             
2008                                                                            
Name         Balance at  Granted  Exer  Other        Balance at  Options        
            start of    during   cise  changes      end of year vested          
            year        year as  d     during year              and             
                        remun-   duri                           exercisa        
eration  ng                             ble at          
                                 year                           end of          
                                                                year            
            Number      Number   Numb  Number       Number      Number          
er                                             
Directors                                                                       
Mr N Barrie  4,270,000   -        -     -            4,270,000   4,270,00       
                                                                0               
Mr B         41,133      -        -     271,367      312,500     312,500        
Phillips                                                                        
Mr E Luff    3,021,462   -        -     (917,312)    2,104,150   1,937,48       
                                                                3               
Ms N Mazwai  -           -        -     -            -           -              
Mr W Marx    1,999,500   -        -     814,500      2,814,000   2,814,00       
                                                                0               
            9,332,095   -        -     168,555      9,500,650   9,333,98        
3               
Other key                                                                       
management                                                                      
personnel                                                                       
Mr A         100,000     -        -     -            100,000     66,666         
Berryman                                                                        
Mr C Bailey  400,000     -        -     -            400,000     183,333        
            500,000     -        -     -            500,000     249,999         
Total        9,832,095   -        -     168,555      10,000,650  9,583,98       
                                                                2               
19.  Key management personnel disclosures (continued)                           
(c)  Equity instrument disclosures relating to key management personnel         
(continued)                                                                     
(ii) Shareholdings                                                              
The number of shares in the Company held during the financial year by each      
director of Tawana Resources NL, including their personally related parties, is 
set out below.  There were no shares granted during the reporting year as       
remuneration.                                                                   
2009                                                                            
 Name        Balance    Balance   Receiv  Other      Balance at   Balance       
at start   at date   ed      changes    date of      at end        
             of the     of        during  during     resignation  of the        
             year       appoint-  the     the year                year          
                        ment      year    *                                     
on                                            
                                  exerci                                        
                                  se of                                         
                                  option                                        
s                                             
             Number     Number    Number  Number     Number       Number        
 Directors                                                                      
 Mr E Luff   7,344,870  -         -       -          -            7,344,87      
0             
 Mr H Hill   -          -         -       -          -            -             
 Mr J        -          5,000,00  -       -          -            5,000,00      
 Babarczy               0                                         0             
Mr S Horne  -          257,550   -                  (257,550)    -             
 Ms N Mazwai 5,437,457  -         -       3,375,720  (8,813,177)  -             
 Mr N Barrie 1,246,154  -         -       -          (1,246,154)  -             
 Mr B        508,700    -         -       -          (508,700)    -             
Phillips                                                                       
 Mr W Marx   7,062,500  -         -       -          (7,062,500)  -             
             21,599,68  5,257,55  -       3,375,720  (17,888,081  12,344,8      
             1          0                            )            70            
*    Refer to Note 23(c)                                                        
2008                                                                            
 Name        Balance    Balance   Received Other     Balance at   Balance       
             at start   at date   during   changes   date of      at end of     
of the     of        the year during    resignation  the year      
             year       appoint-  on       the year                             
                        ment      exercise                                      
                                  of                                            
options                                       
             Number     Number    Number   Number    Number       Number        
 Directors                                                                      
 Mr N Barrie -          684,984   -        561,170   -            1,246,154     
Mr B        194,800    -         -        313,900   -            508,700       
 Phillips                                                                       
 Mr E Luff   8,262,270  -         -        (917,400  -            7,344,870     
                                           )                                    
Ms N Mazwai -          5,437,45  -        -         -            5,437,457     
                        7                                                       
 Mr W Marx   6,248,500  -         -        814,000   -            7,062,500     
             14,705,57  6,122,44  -        771,670   -            21,599,68     
0          1                                         1             
 Other key                                                                      
 management                                                                     
 personnel                                                                      
Mr A        -          -         -        -         -            -             
 Berryman                                                                       
 Mr C Bailey -          -         -        -         -            -             
             -          -         -        -         -            -             
14,705,57  6,122,44  -        771,670   -            21,599,68     
             0          1                                         1             
19.  Key management personnel disclosures (continued)                           
(d)  Loans to key management personnel                                          
There were no loans to key management personnel of the consolidated entity,     
including their personally related parties, as at 31 December 2009 or 31        
December 2008.                                                                  
(e)  Other transactions with key management personnel                           
Mr E Luff, a director of the Company, is a senior partner of the legal firm     
Wilmoth Field Warne, which received fees for the provision of legal services.   
Payments were based on commercial terms and conditions.                         
20.  Details of controlled entities                                             
Name                Country   Interest   Book value of the                    
                      of        held by    investment                           
                      incorpor  the                                             
                      ation     consolidat                                      
ed entity                                       
                                2009  2008 2009      2008                       
                                %     %    $         $                          
                                                                                
Parent                                                                        
  Tawana Resources    Australi                                                  
  NL                  a                                                         
                                                                                
Controlled                                                                    
  entities                                                                      
  Seolo Botswana      Botswana  100   100  73,237    77,080                     
  (Pty) Ltd                                                                     
Tawana Resources    South     100   100  2,820,48  2,968,47                   
  (Pty) Ltd           Africa               3         0                          
  Diamond Resources   South     100   100  -         -                          
  (Pty) Ltd           Africa                                                    
2,893,72  3,045,55                   
                                           0         0                          
21.  Contingent liabilities and commitments                                     
The consolidated entity is currently defending outstanding claims brought       
against the consolidated entity by creditors in relation to past activities.    
The consolidated entity is currently receiving legal advice and all claims are  
expected to settle within the next 12 months.  The directors are confident      
these matters will be successfully resolved.                                    
22.  Segment information                                                        
The consolidated entity operates wholly in one business segment, being mineral  
exploration and predominantly in one geographical segment, being Africa.        
23.  Notes to the Statement of Cash Flows                                       
(a)  Reconciliation of cash and cash equivalents                                
For the purposes of the Statement of Cash Flows, cash includes cash on hand and 
at call in deposits with banks, net of bank overdrafts.  Cash at the end of the 
year is shown in the Statement of Financial Position as:                        
Consolidated       Parent                               
                        2009      2008     2009      2008                       
                        $         $        $         $                          
                                                                                
Cash on hand and at   348,609   18,090   342,284   4,995                      
  bank                                                                          
(b)  Reconciliation of net loss after tax to net cash flows from operations     
                 Not                                                            
e                                                              
  Net loss            (974,886)  (3,826,156)  (935,641 (4,446,71                
                                              )        9)                       
                                                                                
Adjustments                                                                   
  for:                                                                          
  Depreciation        174,766    294,353      112,590  212,647                  
  Option              133,908    198,991      133,908  198,991                  
expense                                                                       
  Impairment          3,945      1,651,383    231,306  2,606,620                
  and write off                                                                 
  of non-                                                                       
current                                                                       
  assets                                                                        
  Profit on           (1,661)    -            -        -                        
  sale of                                                                       
property,                                                                     
  plant and                                                                     
  equipment                                                                     
  Foreign             174,898    (18,700)     -        (18,700)                 
exchange loss                                                                 
  Prospecting         -          -            -        211,928                  
  fees                                                                          
  Shares issued  23(  236,300    -            236,300  -                        
for corporate  c)                                                             
  costs                                                                         
                                                                                
  Changes in                                                                    
assets and                                                                    
  liabilities                                                                   
  (Increase) /                                                                  
  decrease in:                                                                  
- Inventories       4,137                   -        (1)                      
  - Trade and         (24,478)   57,985       (30,176) 52,155                   
  other                                                                         
  receivables                                                                   
- Non-current       -          (34,673)     -        (38,500)                 
  receivables                                                                   
                                                                                
  Increase /                                                                    
(decrease)                                                                    
  in:                                                                           
  - Trade and         (147,314)  511,108      (193,191 345,565                  
  other                                       )                                 
payables                                                                      
  - Provisions        (53,883)   (75,814)     (25,582) (75,814)                 
  Net cash from       (474,268)  (1,241,523)  (470,486 (951,828)                
  operating                                   )                                 
expenses                                                                      
(c)  Non-cash financing and investing activities for the year                   
During the year, 3,375,720 fully paid ordinary shares were issued to director   
Ms N Mazwai at $0.07 per share for nil cash consideration in respect of         
corporate administrative work she had undertaken on behalf of the consolidated  
entity.  The total amount was expensed as corporate costs in the Statement of   
Comprehensive Income.                                                           
24.  Auditors` remuneration                                                     
Audit services        43,803    78,183   13,773    60,245                     
  Non-audit             -         -        -         -                          
  services                                                                      
                        43,803    78,183   13,773    60,245                     
25.  Loss per share                                                             
Classification of securities as ordinary shares                                 
The Company has only one category of ordinary shares included in basic loss per 
share.                                                                          
Classification of securities as potential ordinary shares                       
There are currently no securities to be classified as dilutive potential        
ordinary shares on issue.                                                       
                                     2009          2008                         
Number        Number                       
                                     129,622,559   103,028,406                  
  Weighted average number of                                                    
  ordinary shares used in the                                                   
calculation of basic loss per                                                 
  share                                                                         
                                                                                
                                     $             $                            
(974,886)     (3,826,156)                  
  Net loss                                                                      
The loss per share calculation as disclosed on the Statement of Comprehensive   
Income does not include instruments that could potentially dilute basic         
earnings per share in the future as these instruments were anti-dilutive in the 
periods presented.  A summary of such instruments is as follows:                
  Equity securities                        Number of     Number of              
                                           securities    potential              
ordinary               
                                                         shares                 
                                           38,160,053    37,130,053             
  Options over ordinary shares                                                  
Subsequent to year end the Company issued additional options which resulted in  
the following additional potential ordinary shares:                             
  Equity securities              Number of     Number of                        
                                 securities    potential                        
ordinary                         
                                               shares                           
                                 50,000,000    50,000,000                       
  Options over ordinary shares                                                  
26.  Share-based payments                                                       
Summary of options on issue                                                     
  Issue      Quantity    Grant     Expiry    Exercise                           
  date                   date      date      price                              
Various    13,240,053  Various   1 Apr     $0.10                              
                                   2011                                         
  Various    1,420,000   Various   30 Nov    $0.35                              
                                   2011                                         
18 Jun     4,000,000   18 Jun    18 Jun    $0.07                              
  2008                   2008      2012                                         
  17 Jan     6,000,000   18 Dec    17 Jan    $0.10                              
  2009                   2008      2013                                         
17 Jan     6,750,000   18 Dec    17 Jan    $0.10                              
  2009                   2008      2014                                         
  17 Jan     6,750,000   18 Dec    17 Jan    $0.07                              
  2009                   2008      2013                                         
38,160,053                                                         
26.  Share-based payments (continued)                                           
Fair value of options granted during the year                                   
The assessed fair value at grant date of options granted to individuals is      
allocated equally over the period from grant date to vesting date.  Fair values 
at grant date are independently determined using a Binomial Tree option pricing 
model that takes into account the exercise price, term of the option, 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.                                                     
Included as an expense in the Statement of Comprehensive Income is $133,908     
(2008: $198,991) which relates to equity-settled share-based payment            
transactions.                                                                   
No options were issued during the year ended 31 December 2009.   The model      
inputs for the options granted during the 2008 year were as follows:            
                     A         B          C         D                           
Quantity           4,000,000 6,000,000  6,750,000 6,750,000                   
  Grant date         18 Jun    18 Dec     18 Dec    18 Dec                      
                     2008      2008       2008      2008                        
  Expiry date        18 Jun    17 Jan     17 Jan    17 Jan                      
2012      2013       2013      2014                        
  Share price at     $0.07     $0.03      $0.03     $0.03                       
  grant date                                                                    
  Exercise price     $0.07     $0.10      $0.07     $0.10                       
Expected           76%       76%        76%       76%                         
  volatility                                                                    
  Option life        4 years   4 years    4 years   5 years                     
  Expected dividend  0%        0%         0%        0%                          
yield                                                                         
  Risk free rate at  6.69%     3.57%      3.57%     3.57%                       
  grant date                                                                    
27.  Subsequent events                                                          
The Rights Issue closed for acceptances at 5.00 pm AEDT for ASX and 5.00 pm     
Johannesburg time for JSE on 13 January 2010.  The Company received valid       
acceptances for 151,898,275 New Shares raising $759,491.37.                     
On 2 February 2010 the Company announced that the shortfall from the recently   
completed Rights Issue, being 72,273,400 shares, had been allotted at an issue  
price of $0.005 per share.                                                      
On 4 February 2010 the Company announced that Mr Stirling Horne had resigned as 
a director of Tawana Resources NL.                                              
On 24 February 2010 the Company announced the issue of 50 million options,      
expiring 23 February 2013 at an exercise price of $0.01 in accordance with the  
shareholders meeting approving the issue on 23 November 2009.                   
In accordance with a resolution of the directors of Tawana Resources NL, I      
state that:                                                                     
In the opinion of the directors:                                                
the financial statements and notes as set out on pages 29 to 55 of the Company  
and of the consolidated entity are in accordance with the Corporations Act      
2001, including:                                                                
giving a true and fair view of the Company`s and the consolidated entity`s      
financial position as at 31 December 2009 and of their performance for the year 
ended on that date; and                                                         
complying with Accounting Standards and Corporations Regulations 2001; and      
there are reasonable grounds to believe that the Company will be able to pay    
its debts as and when they become due and payable.                              
This declaration has been made after receiving the declarations required to be  
made to the directors in accordance with section 295A of the Corporations Act   
2001 for the financial year ended 31 December 2009.                             
On behalf of the Board                                                          
Harry Hill                                                                      
Director                                                                        
Melbourne, 31 March 2010                                                        
INDEPENDENT AUDITOR`S REPORT                                                    
Tawana Resources NL & Controlled Entities                                       
ABN 69 085 166 721                                                              
Independent Auditor`s Report To the members of Tawana Resources NL              
Report on the Financial Report                                                  
We have audited the accompanying financial report of Tawana Resources NL (the   
company) and Tawana Resources NL and Controlled Entities (the consolidated      
group), which comprises the statement of financial position as at 31 December   
2009, the statement of comprehensive income, statement of changes in equity and 
statement of cash flows for the year then ended, a summary of significant       
accounting policies, other explanatory notes and the directors` declaration of  
the consolidated entity comprising the company and the entities it controlled   
at the year`s end or from time to time during the financial year.               
Directors` responsibility for the financial report                              
The directors of the company are responsible for 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, 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 (IFRS) ensures that  
the financial report, comprising the financial statements and notes, complies   
with IFRS.                                                                      
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.                                                          
An audit involves performing procedures to obtain audit evidence about the      
amounts and disclosures in the financial report. The procedures selected depend 
on the auditor`s judgement, including the assessment of the risks of material   
misstatement of the financial 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 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 
directors, as well as evaluating the overall presentation of the financial      
report.                                                                         
We believe that the audit evidence we have obtained is sufficient and           
appropriate to provide a basis for our audit opinion.                           
Matters Relating to the Electronic Presentation of the Audited Financial Report 
This audit report relates to the financial report of consolidated entity for    
the year ended 31 December 2009 included on the website of Tawana Resources NL. 
The Directors of the consolidated entity are responsible for the integrity of   
the website and we have not been engaged to report on its integrity. The review 
report refers only to the financial report identified above and it does not     
provide an opinion on any other information which may have been hyperlinked to  
or from the financial report.  If users of this report are concerned with the   
inherent risks arising from electronic data communications they are advised to  
refer to the hard copy of the reviewed financial report to confirm the          
information included in the reviewed financial report presented on the          
company`s website.                                                              
Independence                                                                    
In conducting our audit, we have complied with the independence requirements of 
the Corporations Act 2001. We have given to the directors of the company a      
written Auditor`s Independence Declaration, a copy of which is included in the  
directors` report.                                                              
Audit Opinion                                                                   
In our opinion:                                                                 
(a)  the financial report of Tawana Resources NL is in accordance with the      
Corporations Act 2001, including:                                               
(i)  giving a true and fair view of the company`s and consolidated group`s      
financial position as at 31 December 2009 and of its 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;              
(b)  the financial report also complies with International Financial Reporting  
Standards as disclosed in Note 1.                                               
Report on the Remuneration Report                                               
We have audited the Remuneration Report included in pages 8 to 11 of the report 
of the directors for the year ended 31 December 2009. The directors of the      
company are responsible for the preparation and presentation of the             
Remuneration Report in accordance with s300A of the Corporations Act 2001. Our  
responsibility is to express an opinion on the Remuneration Report, based on    
our audit conducted in accordance with Australian Auditing Standards.           
Audit Opinion                                                                   
In our opinion the Remuneration Report of Tawana Resources NL for the year      
ended 31 December 2009, complies with s300A of the Corporations Act 2001.       
Jeffrey Luckins                                                                 
Director                                                                        
William Buck Audit (VIC) Pty Ltd                                                
ABN 59 116 151 136                                                              
Dated in Melbourne, Australia on this 31th day of March 2010                    
SCHEDULE OF MINERAL TENEMENTS                                                   
Mining tenements currently held by the consolidated entity are as follows:      
Location      Title held by          % held by  Title                           
Tawana                                      
                                    group                                       
                                                                                
Daniel        BHP Billiton World     Various    NC30/5/1/1/088PR                
Project       Exploration Inc                                                   
South Africa                                                                    
Kareevlei Wes Diamond Resources Pty  100%       NC30/5/1/2/2/081MR              
South Africa  Ltd                                                               
St Augustines Vecto Trade 436 Pty    30%        NC30/5/1/1/5/402PR              
South Africa  Ltd                    (indirect)                                 
Lexshell      Lexshell 366 Mining    50%        NC30/5/1/2/2/054MR              
South Africa  (Pty) Ltd                                                         
Flinders      Orogenic Exploration   80%        EL 3200                         
Island        Pty Ltd / Tawana                                                  
SA, Australia Resources NL                                                      
Eyre          Orogenic Exploration   80%        EL 3928                         
Peninsula     Pty Ltd / Tawana                                                  
SA, Australia Resources NL                                                      
Flinders      Orogenic Exploration   80%        ELA 06/648                      
Island        Pty Ltd / Tawana                                                  
SA, Australia Resources NL                                                      
Borolong /    Seolo Botswana (Pty)   100%       PL 37/2003, PL                  
Mashaiwa      Ltd                               38/2003                         
Botswana                                        PL 86/2007, PL                  
87/2007                          
Orapa         Seolo Botswana (Pty)   100%       PL 61/2007                      
Botswana      Ltd                                                               
ASX ADDITIONAL INFORMATION                                                      
AS AT 29 MARCH 2010                                                             
Additional information included in accordance with the Listing Rules of the     
Australian Securities Exchange Limited.  The information is current as at 29    
March 2010.                                                                     
1.   Substantial shareholders                                                   
The names of substantial shareholders who had notified the Company in           
accordance with section 671B of the Corporations Act are:                       
Spring Plains Pastoral Co (VIC) Pty Ltd  40,000,000 shares   
Mutual Trust Pty Ltd     25,500,000 shares             
Trayburn Pty Ltd    22,850,000 shares                                           
Deck Chair Holdings Pty Ltd   33,130,000 shares                                 
Acorn Capital Limited    8,082,097 shares                                       
ITA Nominees Pty Ltd     7,245,733 shares                                       
2.   Statement of issued capital                                                
(a)  Distribution of fully paid ordinary shareholders                           
  Size of holding       Number       Shares held                                
of                                                      
                        holders                                                 
  1 - 1,000             180          117,831                                    
  1,001 - 5,000         412          1,264,969                                  
5,001 - 10,000        293          2,339,452                                  
  10,001 - 100,000      530          17,276,843                                 
  100,001 and over      194          420,416,934                                
                        1,609        441,416,029                                
(b)  All ordinary shares (whether fully paid or not) carry one vote per share   
without restriction.                                                            
(c)  At the date of this report there were 1,138 shareholders who held less     
than a marketable parcel of shares.                                             
3.   Options                                                                    
                     Exercise  Expiry     Number of  Number                     
                     price     date       options    of                         
                                                     holders                    
Listed options     $0.10     1 Apr      13,240,053 241                        
                               2011                                             
  Unlisted options   $0.35     30 Nov     1,240,000  7                          
                               2011                                             
Unlisted options   $0.07     18 Jun     4,000,000  1                          
                               2012                                             
  Unlisted options   $0.10     17 Jan     6,000,000  1                          
                               2013                                             
Unlisted options   $0.10     17 Jan     6,750,000  6                          
                               2014                                             
  Unlisted options   $0.07     17 Jan     6,750,000  6                          
                               2013                                             
Unlisted options   $0.01     23 Feb     50,000,000 1                          
                               2013                                             
4.   Quotation                                                                  
Listed securities in Tawana Resources NL are quoted on the Australian           
Securities Exchange and the Johannesburg Stock Exchange.                        
5.   Twenty largest shareholders                                                
The twenty largest shareholders hold 69.51% of the issued capital of the        
Company as at 29 March 2010.                                                    
No   Shareholder                  Number of      Percentag                    
                                    shares         e of                         
                                                   issued                       
                                                   capital                      

  1    Spring Plains Pastoral Co    40,000,000     9.06%                        
       (Vic) Pty Ltd                                                            
                                                             
2    Deck Chair Holdings Pty Ltd  32,000,000     7.25%                        
  3    Mutual Trust Pty Ltd         25,500,000     5.78%                        
                                                       
  4    Mikonos Investments Pty Ltd  23,731,000     5.38%                        
5    Trayburn Pty Ltd             22,850,000     5.18%                        
  6    Gregorach Pty Ltd            19,850,000     4.50%                        
  7    BT Portfolio Services        18,850,000     4.27%                        
       Limited                                                                  
                                               
  8    PLC Nominees (Proprietary)   18,256,508     4.14%                        
       Limited                                                                  
  9    RL Holdings Pty Ltd          18,027,986     4.08%                        
                                                             
  10   Seven Falls Trading 155      17,626,354     3.99%                        
       (Pty) Ltd                                                                
  11   Mrs Margot Louise            10,850,000     2.46%                        
Brandenburg                                                              
                                                                            
  12   Mr Julian Babarczy           10,000,000     2.27%                        
13   Mahsor Holdings Pty Ltd      8,775,000      1.99%                        
                                                       
  14   Lufgan Nominees Pty Ltd      7,687,808      1.74%                        
                                                         
15   Azalea Family Holdings Pty   6,000,000      1.36%                        
       Ltd                                                            
  16   Kea Holdings Pty Ltd                                                             
17   Domain Carpet Mills Pty Ltd  5,411,455      1.23%                        
                                                                            
  18   Nomathata Diamonds Inc       5,350,000      1.21%                        
19   Lufgan Nominees Pty Ltd      5,000,000      1.13%                        
  20   Mr Ronald Russell Wilson     5,000,000      1.13%                        
                                    306,766,111    69.51%                       
6.   Twenty largest listed option holders                                       
No   Option holder                Number       Percentag                      
                                    of           e of                           
                                    options      option                         
                                                 class                          

  1    PLC Nominees (Proprietary)   1,949,99     13.23%                         
       Limited                      9                                           
  2    National Nominees Limited    1,656,78     11.24%                         
6                                           
  3    RL Holdings Pty Ltd                          0                                           
  4    Mr Geoffrey John Clatworthy  1,000,00     6.79%                          
0                                           
  5    Clatworthy Nominees Limited  1,000,00     6.79%                          
                                    0                                           
  6    Mrs Sally Copeland           1,000,00     6.79%                          
Clatworthy                   0                                           
  7    Walker & Hall Fine Gifts     1,000,00     6.79%                          
       Ltd                          0                                           
  8    Lufgan Nominees Pty Ltd      937,500      6.36%                          
                                                  
  9    Hudson Holdings Pty Ltd      625,000      4.24%                          
                                                                            
10   Mrs Natalie Laufmann         352,500      2.39%                          
  11   Mr Brian Phillips            312,500      2.12%                          
  12   Mr John Rowe                 312,500      2.12%                          
  13   Katherine Pastoral Company   270,000      1.83%                          
Pty Ltd                                                                  
  14   Domain Carpet Mills Pty Ltd  252,537      1.71%                          
                                                                            
15   Rare Earths & Minerals Pty   250,000      1.70%                          
       Ltd                                                                      
  16   Hudson Holdings Pty Ltd      189,000      1.28%                          
  17   Mr Ian Gallash & Mrs Helen   182,010      1.24%                          
Ruth Gallash                                                             
  18   Mr Frank Wong & Mrs Lee Lee  150,000      1.02%                          
       Wong & Mr Mark Chui                                                      
                                                          
19   Bristen Pty Ltd              100,000      0.68%                          
  20   Fitba Pty Ltd                                                           
                                    12,740,3     86.46%                         
32                                          
Date: 01/04/2010 11:46:01 Supplied by www.sharenet.co.za                     
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