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TAW - Tawana Resources NL - Annual Report

Release Date: 31/03/2011 13:54:05      Code(s): TAW
TAW - Tawana Resources NL - Annual Report                                       
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")                                                     
Corporate Directory                                                             
Chairman`s Statement                                                            
Directors` Report                                                               
Corporate Governance Statement                                                  
Auditor`s Independence Declaration                                              
Statement of Comprehensive Income                                               
Statement of Financial Position                                                 
Statement of Changes in Equity                                                  
Statement of Cash Flows                                                         
Notes to the Financial Statements                                               
Directors` Declaration                                                          
Independent Auditor`s Report to the Members                                     
Schedule of Mining Tenements                                                    
ASX Additional Information                                                      
CORPORATE DIRECTORY                                                             
Directors                                                                       
Mr Warwick Grigor   Non-Executive Chairman                                      
Mr Euan Luff   Executive Director                                               
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                                                            
Auditor                                                                         
William Buck                                                                    
Level 1                                                                         
465 Auburn Road                                                                 
Hawthorn East VIC 3123                                                          
Stock Exchange                                                                  
Australian Securities Exchange                                                  
ASX Code:  TAW                                                                  
JSE Limited                                                                     
JSE Code:  TAW                                                                  
CHAIRMANS STATEMENT                                                             
Dear Shareholders                                                               
This is the first time I have written to you as Chairman, following an approach 
by major shareholders of Tawana in mid 2010, with a request to become Chairman  
and oversee the rebuilding of the Company following a number of events that     
included some unsuccessful exploration programs and the GFC.  Many junior       
exploration companies go through a similar cycle.  It is a tough industry in    
which to operate and it is not uncommon for companies to need to regenerate     
themselves.                                                                     
The starting point involves an evaluation of existing projects.  Consequently,  
we are actively rationalising the diamond interests that have formed the        
backbone of the Company since its inception.                                    
Simultaneously we need to look to new management as the Company needs new ideas 
and fresh enthusiasm.  Management is the most critical aspect of any company and
to this end we have recruited Mr Len Kolff as CEO of the Company.  Len is a     
geologist with over a decade of experience working with blue chip companies in  
Africa on a number of exploration projects.  We are most fortunate that he has  
joined the company, bringing with him a strong level of discipline and          
professionalism. His multi-lingual skills will be a real asset.                 
On the management front we are also very pleased to deliver the strategic       
alliance with Gryphon Minerals Limited.  Gryphon, one of the most successful    
West African gold explorers, has selected Tawana as a company which it would    
like to work with to identify exciting gold exploration projects at an early    
stage, in frontier countries in West Africa.  Liberia is the first such country.
Tawana has issued 15% of its shares to Gryphon in consideration for its         
expertise and support, and access to licences.  Gryphon`s commitment to Tawana  
has been confirmed by its participation in the recent capital raising,          
maintaining its equity.                                                         
The recent capital raising, being the issue of 100 million shares at 4.5 cents  
to raise $4.5m net of costs, places the Company in the strongest financial      
position that it has been in for many years.  We would like to thank the Lead   
Manager to the placement, BGF Equities Pty Ltd, for its support in this         
placement as well as for its consistent support throughout 2010, a period which 
was at times very difficult.                                                    
We go forward in 2011, with new projects in Liberia, new management, a solid    
bank balance, and a very valuable asset with our 26% holding in Rakana, which   
provides us with an indirect 7% holding in the Thabazimbi Joint Venture managed 
by Aquila.  We are on the front foot now and look forward to the future with    
enthusiasm.                                                                     
Of course, our success is directly attributable to the teamwork, dedication and 
hard work of my colleagues and staff. I would like to thank them for their      
continued dedication to the business.  I would also like to thank all of our    
shareholders for their confidence and support.  I look forward to the           
opportunities ahead for Tawana.                                                 
Mr Warwick Grigor                                                               
Non-executive Chairman                                                          
DIRECTORS` REPORT                                                               
Your directors submit their report for the year ended 31 December 2010 for      
Tawana Resources NL ("the "Company") and its controlled entities (the           
"Consolidated Entity").                                                         
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 Director                                               
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.                                                               
Mr Luff is a member of the Audit Risk and Compliance Committee.                 
Over the past 3 years, Mr Luff has held no other directorships with ASX-listed  
companies.                                                                      
Mr Warwick Grigor - Non-Executive Chairman                                      
Appointed 20 April 2010                                                         
Mr Grigor is a graduate of the Australian National University, having completed 
degrees in law and economics.  He went straight from university to Hamersley    
Iron Pty Ltd in Perth before being employed as a senior mining analyst and      
research partner with stockbroking firms in Sydney.  Mr Grigor retired from     
County Natwest Securities Australia in 1991 to found Far East Capital Limited   
("FEC"), a specialist research-based mining company financier and corporate     
adviser.                                                                        
In 2008, the FEC business was backed into a new stockbroker, BGF Equities Pty   
Ltd, in return for a substantial shareholding.  Mr Grigor is the Executive      
Chairman of BGF which operates offices in Sydney, Melbourne and Hong Kong.  It  
is an institutional and high net-worth investor stockbroker with a strong focus 
on the resources sector.  In 2002, Mr Grigor was an inaugural inductee to the   
ANU Economics and Commerce Department Hall of Fame.                             
Over the past 3 years, Mr Grigor has held directorships with the following ASX- 
listed companies:                                                               
Company                   Commenced           Ceased                            
Heritage Gold NZ Limited  19 Apr 2007         -                                 
Peninsula Energy Limited  11 Apr 2005         -                                 
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.                                                
Mr Hill is a member of the Audit Risk and Compliance Committee.                 
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 and oil and gas    
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 engagements
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.                                                                      
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 ordinary        Number of options                    
                shares                    over ordinary                         
shares                                
Mr E Luff        21,589,740                6,104,150                            
Mr W Grigor      27,850,000                -                                    
Mr H Hill        -                         -                                    
Mr J Babarczy    25,173,288                -                                    
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 Tawana 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 Resources Limited, Coretrack Limited, Cove    
Resources Limited, Future Corporation Australia Limited and Newera Resources    
Limited.  He is also currently the Company Secretary of listed companies Base   
Resources Limited, Boss Energy Limited, Future Corporation Australia Limited,   
Greenvale Mining NL, Mantle Mining Corporation Ltd and Newera Resources Limited 
along with a number of private and unlisted public companies.                   
Mr Aaron Finlay                                                                 
Mr Finlay is a Chartered Accountant and Chartered Company Secretary with over 19
years` experience in the accounting and finance profession.                     
Mr Finlay is Finance Director and Company Secretary for ASX-listed Cleveland    
Mining Company Limited.  Prior to this he was Chief Financial Officer and       
Company Secretary for ASX listed Mayne Pharma Group 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 Consolidated Entity for the year ended 31 December 2010 after   
providing for income tax amounted to $2,214,397 (2009: $974,886).               
Financial position                                                              
The net assets of the Consolidated Entity are $6,906,424 as at 31 December 2010 
(2009: $5,879,623).                                                             
Principal activities and significant changes in affairs                         
Tawana Resources NL`s principal activities consisted of mineral exploration, in 
particular diamond and gold exploration.  There were no significant changes in  
the nature of the activities of the consolidated entity during the year that    
have not been covered 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 mineral     
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 and Subsequent Events                                      
On 1 July 2010 the Company completed the placement of 66,000,000 shares at 1    
cent per share to raise $660,000.  Subsequently, on 22 March 2011, the Company  
announced that it had raised an additional $4.5 million via share placement of  
100 million shares at 4.5 cents with BGF Equities Pty Ltd acting as the lead    
manager.                                                                        
The Company announced the resignation of Stirling Horne as a Director on 4      
February 2010.  On 20 April 2010 the Company announced the appointment of       
Warwick Grigor as non-executive Director and Chairman.  Mr Grigor is the        
Executive Chairman and Head of Research at BGF Equities Pty Ltd, and an         
inaugural inductee of the ANU Economics and Commerce Department Hall of Fame in 
2002.                                                                           
The Company announced the appointment of Lennard Kolff van Oosterwijk (Len      
Kolff) as CEO on 2 June 2010.  Len joined Tawana having worked over the past    
decade at Rio Tinto, where he was involved in a range of high profile projects  
including the Simandou iron ore project and Northparkes Cu-Au mine.  His        
responsibilities have encompassed a broad range of disciplines, including the   
design, implementation and supervision of multi-commodity exploration and       
prefeasibility study resource drilling programs in West Africa and Australia.   
On 19 January the Company announced a Strategic Alliance with Gryphon Minerals  
Ltd (ASX: GRY) and the acquisition of initially five, now seven permit          
applications, in Liberia, West Africa. Under the terms of the Alliance Gryphon  
will assist Tawana with the identification, acquisition and exploration of      
mineral permits in West Africa which are outside Gryphon`s core growth strategy.
Gryphon will also assist Tawana establish itself in West Africa and provide high
level technical, operational and logistical support.                            
As part of the agreement and after shareholder approval on 24 February 2010,    
Tawana issued Gryphon 100 million fully paid ordinary shares, representing      
approximately 14% of the issued capital on an undiluted basis.  Gryphon is now  
Tawana`s largest shareholder and as part of the agreement has the right to      
nominate one nominee to the Board of Directors.                                 
The Kareevlei Project Area is comprised of a cluster of five kimberlites located
approximately 100km northwest of Kimberley.  On 18 August 2010 the Company      
announced signing of a Heads of Agreement (HoA) for the sale of Kareevlei Wes to
Rolatseng Mining CC of South Africa.  The key terms of the HoA were as follows: 
*    Payment of a ZAR150,000, non-refundable deposit within 14 days of the      
signing of the HoA,                                                         
*    Payment of ZAR1.35 million non-refundable sum within 30 days of the signing
    of the HoA subject to the mining right being transferred to the purchaser,  
*    Payment of ZAR23.5 million within seven days of the completion of a Trial  
Mining exercise.                                                            
The Company reported that there had been ongoing discussions that may lead to a 
reduction of the total transaction price, in the range of 10-20%, due to an     
expectation of a lower grade of the underlying mineral resource.                
On 25 January 2011 the Company announced that an Addendum to the Heads of       
Agreement for the sale of Kareevlei was signed with Rolatseng Mining CC.  The   
Purchase price was revised from ZAR25 million to ZAR22 million due to an        
expectation of a lower grade as announced in the previous quarter.  The revised 
terms of the HoA were as follows:                                               
*    Payment of a ZAR150,000 non-refundable deposit within fourteen (14) days of
    the signing of the HoA,                                                     
*    Payment of a ZAR250,000 non-refundable deposit on 30th November 2010,      
*    Payment of ZAR1.1 million in five monthly instalments commencing 31st      
    January 2011 into trust or escrow and released to the vendor on transfer of 
    the Mining Right,                                                           
*    Payment of ZAR20.5 million within seven days of completion of the Trial    
Mining and reporting exercise and to be held in trust or escrow pending     
    transfer of the Mining Right.                                               
The first two payments of ZAR150,000 and ZAR250,000 have been received by the   
Company and steps are underway to transfer the Mining Right.                    
On 2 March 2011, the Company announced that two highly prospective mineral      
permits have been formally approved by the Liberian Minister of Lands Mines and 
Energy Dr. Roosevelt G. Jayjay, allowing Tawana to start exploration activities 
before the onset of the wet season in June 2011.                                
On 22 March 2011, the Company announced that following the appointment of BGF   
Equities as Lead Manager, the Company completed a placement of 100 million      
shares at an issue price of 4.5 cents to raise $4.5 million before costs.  The  
funds raised by the placement will be used primarily to advance exploration     
activities in Liberia, to fund initial drilling on targets defined and on       
working capital on Tawana`s West African growth plans.                          
On 30 March 2011, the Company announced that it had issued 25 million fully paid
ordinary shares in the Company following the exercise of options previously on  
issue.                                                                          
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.               
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 (audited)                                                   
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.                                          
REMUNERATION REPORT (audited) (continued)                                       
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 Remuneration                                                          
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 2010                         
Details of the remuneration of the Directors of Tawana Resources NL and its     
controlled entities, are set out in the following tables.                       
Details of remuneration for years ended 31 December 2010 and 31 December 2009   
Short-term benefits   Post   Share-  Total      Perf                 
                                 employ based              orm-                 
                                 ment   paymen             ance                 
                                        ts                 rela                 
ted                  
           Salary    Ca  Non-    Super-                                         
           and fees  sh  cash    annuat                                         
                     bo  benefi  ion                                            
nu  ts                                                     
                     s                                                          
2010        $         $   $       $      $       $          %                   
Directors                                                                       
Mr E Luff   63,000    -   -       -      11,513  74,513     -                   
Mr W        27,889    -   -       -      -       27,889     -                   
Grigor                                                                          
Mr H Hill   40,000    -   -       -      -       40,000     -                   
Mr J        42,521    -   -       -      -       42,521     -                   
Babarczy                                                                        
Mr S        4,166     -   -       -      -       4,166      -                   
Horne                                                                           
Key                                                                             
Managemen                                                                       
t                                                                               
Personnel                                                                       
Mr L        89,842    -   -       21,971 34,208  146,021    -                   
Kolff                                                                           
           267,418   -   -       21,971 45,721  335,110                         
During the 2010 year former director, Mr W Marx was paid $50,000 in settlement  
of past services to the Company as Chief Executive Officer.                     
REMUNERATION REPORT (audited) (continued)                                       
           Short-term benefits  Post    Share-  Total    Perf                   
                                employ  based            orm-                   
ment    paymen           ance                   
                                        ts               rela                   
                                        *                ted                    
           Salary   Cash  Non-  Super-                                          
and      bonu  cash  annuat                                          
           fees     s     bene  ion                                             
                          fits                                                  
2009        $        $     $     $       $       $        %                     
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  196,281                         
                                        2                                       
*    These amounts represent the non-cash expense accrual for share options     
granted in prior financial years.                                               
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         Option  Option  Total    Value    Number                 
       granted         s       s       value of of       of                     
exerci  lapsed  options  options  options                
                       sed             granted, include  vested                 
                                       exercise d in     at end                 
                                       d and    remun-   of year                
lapsed   ration                          
                                                for the                         
                                                year                            
       Number   Fair   Intrin  Value                                            
granted  value  sic     at                                               
                at     value   time                                             
                grant  at      of                                               
                date   exerci  lapse                                            
se                                                       
                       date                                                     
2010    Number   $      $       $       $        $        Number                
Mr L    10,000,  109,8  N/A     N/A     109,828  34,208   -                     
Kolff   000      28                                                             
During the 2009 year there were no options granted as remuneration to directors 
or key management personnel.                                                    
Shares issued on exercise of compensation options                               
During the year no share options were exercised.                                
REMUNERATION REPORT (audited) (continued)                                       
Employment contracts of directors and senior executives                         
There are no contracts between the Company and the Directors.  The Company has  
entered into a standard appointment agreement with Mr Len Kolff which provides  
for an appointment term of two years from 14 June 2010 and a notice period of   
three months, together with an issue of options over fully paid ordinary shares 
in the Company as noted above.                                                  
Meetings of directors                                                           
During the financial year, 20 meetings of Directors were held.  Attendances by  
each Director during the year were as follows:                                  
             Board meetings       Audit, risk and                               
compliance,                                   
                                  Remuneration and                              
                                  Nomination                                    
                                  committee meetings                            
Number    Number     Number    Number                              
             attended  eligible   attended  eligible                            
                       to                   to                                  
                       attend               attend                              
Mr E Luff     19        20         2         2                                  
Mr W Grigor   13        13                                                      
Mr H Hill     20        20         2         2                                  
Mr J          19        20                                                      
Babarczy                                                                        
Mr S Horne    2         2                                                       
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 under                            
date        expiry       price          option                                  
22 Jul      1 Apr 2011   $0.10          13,240,053                              
2008                                                                            
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 2013  $0.07          6,750,000                               
2009                                                                            
17 Jan      17 Jan 2014  $0.10          6,750,000                               
2009                                                                            
23 Feb      23 Feb 2013  $0.01          50,000,000                              
2010                                                                            
9 Sep       31 Jul 2012  $0.01          50,000,000                              
2010                                                                            
9 Sep       9 Sep 2012   $0.03          5,000,000                               
2010                                                                            
9 Sep       30 Jul 2013  $0.01          50,000,000                              
2010                                                                            
9 Sep       9 Sep 2014   $0.05          5,000,000                               
2010                                                                            
8 Mar       8 Mar 2014   $0.01          25,000,000                              
2011                                                                            
                                       223,160,053                              
During the years ended 31 December 2010 and 31 December 2009, no options were   
exercised.                                                                      
No person entitled to exercise an 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.            
CORPORATE GOVERNANCE STATEMENT                                                  
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 2010 
has been received and is attached to this Directors` Report.                    
Signed in accordance with a resolution of the Board of Directors.               
Mr Warwick Grigor                                                               
Non-executive Chairman                                                          
Dated at Melbourne this 31st day of March 2011                                  
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 fulfill 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 initially chaired at the commencement of the financial year by an 
Executive (Non-Independent) Chairman.  On the appointment of Mr Warwick Grigor, 
the Board was subsequently chaired by a Non-executive (Independent) Chairman.   
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 it was not comprised of a majority of independent non-executive            
Directors or chaired by an independent non-executive director for the whole     
of the year.  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 and chaired by an independent non-executive director.     
The following were Directors during the 2010 year:                              
Director Capacity          Position     Held       Held office                  
                                       office     to                            
from                                     
E Luff   Executive         Non-         20 Apr     Current                      
        Director          Independent  2010                                     
        Executive         Non-         31 Jul     20 Apr 2010                   
Chairman          Independent  2009                                     
        Non-Executive     Non-         16 Nov     31 Jul 2009                   
        Director          Independent  1998                                     
W Grigor Non-Executive     Independent  20 Apr     Current                      
Chairman                       2010                                     
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 2010                   
        Director                       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:                               
(a)  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.                                                                
(b)  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 ealizationon 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 2010 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 ealizatio 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.                      
When analysts are briefed on aspects of the Company`s operations, the material  
used in the presentation is released to the ASX.  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 ealiza 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.   
All policies referred to in this section are available by contacting the        
Company.                                                                        
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 2010, I declare that to the best of 
my knowledge and belief, there have been no contraventions of:                  
(i)  the auditor independence requirements of the Corporations Act 2001 in      
    relation to the audit; and                                                  
(ii)      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 31st day of March 2011                    
STATEMENT OF COMPREHENSIVE INCOME                                               
FOR THE YEAR ENDED 31 DECEMBER 2010                                             
                             Note  Consolidated                                 
2010          2009                           
                                   $             $                              
                                                                                
Revenue                       4     68,751        23,173                        

Corporate costs                     (1,291,848)   (330,266)                     
Depreciation                        (99,496)      (147,461)                     
Employee benefits expense           (454,986)     (105,909)                     
Exploration expenses written        -             (3,945)                       
off                                                                             
Finance costs                       (54,779)      (19,408)                      
Impairment of exploration           (259,754)     -                             
expenditure                                                                     
Other expenses                5     (55,109)      (236,489)                     
Loss before income tax              (2,147,221)   (820,305)                     
expense                                                                         
Income tax expense            6     -             -                             
Net loss for the period from        (2,147,221)   (820,305)                     
continuing operations                                                           
Loss from discontinued        17    (67,176)      (154,581)                     
operations after tax                                                            
Net loss for the period             (2,214,397)   (974,886)                     
attributable to Tawana                                                          
Resources NL                                                                    

Other comprehensive income                                                      
(Loss) / gain on translation        (199,348)     39,245                        
of foreign operations                                                           
Other comprehensive income          (199,348)     39,245                        
for the period, net of tax                                                      
Total comprehensive income          (2,413,745)   (935,641)                     
for the period attributable                                                     
to Tawana Resources NL                                                          
                                                                                
Earnings per share from                                                         
continuing and discontinuing                                                    
operations                                                                      
 Basic loss (cents)          24    (0.47)        (0.75)                         
 Diluted loss (cents)        24    (0.47)        (0.75)                         
                                                                                
Earnings per share from                                                         
continuing operations                                                           
 Basic loss (cents)          24    (0.46)        (0.63)                         
 Diluted loss (cents)        24    (0.46)        (0.63)                         
The above Statement of Comprehensive Income should be read in conjunction with  
the accompanying notes                                                          
STATEMENT OF FINANCIAL POSITION                                                 
FOR THE YEAR ENDED 31 DECEMBER 2010                                             
Note  Consolidated                                
                                    2010          2009                          
                                    $             $                             
                                                                                
Current assets                                                                  
Cash and cash equivalents      22(a) 835,470       348,609                      
Trade and other receivables    7     48,945        55,474                       
Other financial assets         8     2,960,354     -                            
Inventories                    9     75,641        77,131                       
Total current assets                 3,920,410     481,214                      
                                                                                
Non-current assets                                                              
Trade and other receivables    7     42,323        43,021                       
Investment in associate        10    16,640        16,640                       
Property, plant and equipment  11    186,892       310,769                      
Exploration expenditure        12    2,923,147     5,950,734                    
Total non-current assets             3,169,002     6,321,164                    
                                                                                
Total assets                         7,089,412     6,802,378                    
                                                                                
Current liabilities                                                             
Trade and other payables       13    148,726       357,763                      
Provisions                           6,875         14,992                       
Borrowings                     14    -             200,000                      
Total current liabilities            155,601       572,755                      
                                                                                
Non-current liabilities                                                         
Provisions                           27,387        -                            
Borrowings                     14    -             350,000                      
Total non-current liabilities        27,387        350,000                      
                                                                                
Total liabilities                    182,988       922,755                      

Net assets                           6,906,424     5,879,623                    
                                                                                
Equity                                                                          
Contributed equity             15    36,482,279    35,356,374                   
Reserves                       16    (281,859)     (2,397,152)                  
Accumulated losses                   (29,293,996)  (27,079,599)                 
Total equity                         6,906,424     5,879,623                    
The above Statement of Financial Position should be read in conjunction with the
accompanying notes.                                                             
STATEMENT OF CHANGES IN EQUITY                                                  
FOR THE YEAR ENDED 31 DECEMBER 2010                                             
Consolidated                                                 
                   Issued     Reserves     Accumulated   Total                  
                   capital                 losses                               
                   $          $            $             $                      

Balance at 1        35,356,37  (2,397,152)  (27,079,599)  5,879,623             
January 2010        4                                                           
                                                                                
Loss for the        -          -            (2,214,397)   (2,214,397)           
period                                                                          
Other               -          (199,348)    -             (199,348)             
comprehensive                                                                   
income for the                                                                  
period                                                                          
Total               -          (199,348)    (2,214,397)   (2,413,745)           
comprehensive loss                                                              
for the period                                                                  
Disposal of         -          454,759      -             454,759               
foreign operation                                                               
Transactions with                                                               
owners in their                                                                 
capacity as owners                                                              
Shares issued, net  1,125,905  -            -             1,125,905             
of costs                                                                        
Share options       -          1,859,882    -             1,859,882             
issued and vested                                                               
Balance at 31       36,482,27  (281,859)    (29,293,996)  6,906,424             
December 2010       9                                                           

Balance at 1        34,708,73  (2,570,305)  (26,104,713)  6,033,714             
January 2009        2                                                           
                                                                                
Loss for the        -          -            (974,886)     (974,886)             
period                                                                          
Other               -          39,245       -             39,245                
comprehensive                                                                   
income for the                                                                  
period                                                                          
Total               -          39,245       (974,886)     (935,641)             
comprehensive loss                                                              
for the period                                                                  
Transactions with                                                               
owners in their                                                                 
capacity as owners                                                              
Shares issued, net  647,642    -            -             647,642               
of costs                                                                        
Share options       -          133,908      -             133,908               
vested                                                                          
Balance at 31       35,356,37  (2,397,152)  (27,079,599)  5,879,623             
December 2009       4                                                           
The above Statement of Changes in Equity should be read in conjunction with the 
accompanying notes.                                                             
STATEMENT OF STATEMENT OF CASHFLOWS                                             
FOR THE YEAR ENDED 31 DECEMBER 2010                                             
                              Note  Consolidated                                
                                    2010          2009                          
$             $                             
                                                                                
Cash flows from operating                                                       
activities                                                                      
Receipts from customers              26,696        18,205                       
Payments to suppliers and            (1,172,155)   (507,950)                    
employees                                                                       
Interest received                    41,325        15,477                       
Interest paid                        (25,666)      -                            
Net cash flows used in         22(b) (1,129,800)   (474,268)                    
operating activities                                                            
                                                                                
Cash flows from investing                                                       
activities                                                                      
Proceeds from sale of plant          9,276         7,776                        
and equipment                                                                   
Purchase of plant and                (2,425)       -                            
equipment                                                                       
Proceeds from sale of                57,544        -                            
discontinued operation                                                          
Payments for exploration             (11,527)      (202,167)                    
Environmental bonds refunded         -             39,074                       
Net cash flows used in               52,868        (155,317)                    
investing activities                                                            

Cash flows from financing                                                       
activities                                                                      
Proceeds from issue of shares        1,851,670     500,000                      
Capital raising costs                (137,036)     (88,659)                     
Repayment of borrowings              (120,000)     -                            
Proceeds from borrowings             -             550,000                      
Net cash from financing              1,594,634     961,341                      
activities                                                                      
                                                                                
Net increase in cash and cash        517,702       331,756                      
equivalents                                                                     
Cash and cash equivalents at         348,609       18,090                       
beginning of period                                                             
Effects of exchange rates on         (30,841)      (1,237)                      
cash holdings in foreign                                                        
currencies                                                                      
Cash and cash equivalents at         835,470       348,609                      
end of period                                                                   
The above Statement of Cash Flows should be read in conjunction with the        
accompanying notes                                                              
NOTES TO THE FINANCIAL STATEMENT                                                
FOR THE YEAR ENDED 31 DECEMBER 2010                                             
1.   Summary of significant accounting policies                                 
The principal accounting policies adopted in the preparation of these financial 
statements are set out below.  These policies have been consistently applied to 
all the years presented, unless otherwise stated.  The financial statements     
include 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                                                           
These financial statements comply with Australian Accounting Standards          
("AASBs"). Compliance with AASBs ensures that these financial statements,       
comprising the financial statements and notes thereto, comply with International
Financial Reporting Standards ("IFRS").                                         
Critical accounting estimates                                                   
The preparation of financial statements in conformity with AASBs 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 2010 and the results  
of all subsidiaries for the year then ended.  Tawana Resources NL and its       
subsidiaries together are referred to in these financial statements 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.                                                            
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.                                                                         
1.   Summary of significant accounting policies (continued)                     
(b)  Principles of consolidation (continued)                                    
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 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 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.               
(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 end of the reporting period.  Foreign 
exchange gains and losses resulting from the settlement of such transactions and
from translation at financial year end exchange rates are recognised in the     
profit and loss.                                                                
As at the end of the reporting period the assets and liabilities of overseas    
subsidiaries are translated into the presentation currency of Tawana Resources  
NL at the rate of exchange prevailing at the end of the reporting period and the
Statement of Comprehensive Income is translated at the weighted average exchange
rates for the period.  All translation differences are recognised in the foreign
currency translation reserve.                                                   
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.                                                        
1.   Summary of significant accounting policies (continued)                     
(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 or on provision of the services.  
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 ealiza 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.                                             
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.                     
1.   Summary of significant accounting policies (continued)                     
(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 the profit and loss 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 and buildings are stated at cost less accumulated           
depreciation and any impairment losses.  Land is stated at cost less any        
impairment losses.  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 all assets are reviewed for impairment when events or    
changes in circumstances indicate the carrying value may not be recoverable in  
accordance with Note 1(f).                                                      
Gains and losses on disposals are determined by comparing proceeds with the     
carrying amount.  These are included in the Statement of Comprehensive Income.  
(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.                                         
1.   Summary of significant accounting policies (continued)                     
(j)  Inventories                                                                
Inventories consisting of rough diamonds are stated at lower of cost or         
estimated net ealizatio 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 ealizationon, 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 statement of cash flows, cash and cash equivalents consist  
of cash and cash equivalents as defined above, net of outstanding bank          
overdrafts.                                                                     
(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.                                                                        
1.   Summary of significant accounting policies (continued)                     
(m)  Employee entitlements (continued)                                          
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.       
(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.                                    
1.   Summary of significant accounting policies (continued)                     
(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                                                         
xBasic 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.             
(u)  Preparation of financial statements in relation to the consolidated entity 
From 28 June 2010, the Corporations Act 2001 no longer requires the preparation 
of parent entity accounts, for the purpose of streamlining parent entity        
reporting.  Where the entity is required to prepare financial statements in     
relation to the consolidated entity, the Corporations Regulations 2001 (the     
Principal Regulations) specify supplementary information about the parent entity
that is to be included in a note to the consolidated financial statements. This 
information is disclosed in Note 27.                                            
(v)  New accounting standards and interpretations                               
The AASB has issued new and amended accounting standards and interpretations    
that have mandatory application dates for the current and future reporting      
periods.  With the exception of Interpretation 1053, which is not applicable to 
the consolidated entity, the consolidated entity has decided to adopt all of    
these accounting standards and interpretations.  There was no significant change
to these financial statements, nor is there expected to be any significant      
change arising from the adoption of these standards and interpretations.        
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 derivative financial instruments.  Funds are invested for     
various short term periods to match forecast cash flow requirements.            
(a)  Market risk                                                                
Foreign currency risk                                                           
The consolidated entity has foreign operations with functional currencies in the
South African Rand and the Botswana Pula.  Both the parent company and each     
subsidiary transacts predominantly in its own functional currency with little or
no foreign currency risk.  Cash invested into each foreign operation through    
intercompany loan accounts, with no fixed date of maturity on those loans, from 
the parent to its foreign operations is considered to form part of the parent   
company`s net investment in its foreign operations and therefore is considered  
by the parent company to not represent a foreign currency risk.                 
2.   Financial risk management (continued)                                      
(b)  Credit risk                                                                
Management does not actively manage credit risk.                                
On 18 August 2010 the Company announced that a Heads of Agreement for the sale  
of Kareevlei was signed with Rolatseng Mining CC.  The Purchase price is ZAR22  
million and the terms of the HoA are as follows:                                
*    Payment of a ZAR150,000 non-refundable deposit within fourteen (14) days of
    the signing of the HoA,                                                     
*    Payment of a ZAR250,000 non-refundable deposit on 30 November 2010,        
*    Payment of ZAR1.1 million in five monthly instalments commencing 31 January
2011 into trust or escrow and released to the vendor on transfer of the     
    Mining Right,                                                               
*    Payment of ZAR20.5 million within seven days of completion of the Trial    
    Mining and reporting exercise and to be held in trust or escrow pending     
transfer of the Mining Right.                                               
The first two payments of ZAR150,000 and ZAR250,000 have been received by the   
Company and steps are underway to transfer the Mining Right.  The amount of     
ZAR21.6 million remains outstanding from Rolatseng in relation to the sale of   
Kareevlei in accordance with the terms and conditions of the sale agreement.    
Other than the receivables from Rolatseng on the sale of Kareevlei, as noted    
above, 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 2010.    
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.                                                                   
(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 2010, the consolidated entity`s strategy, which was unchanged from 2009, 
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 approximate 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).                                                                      
(ii) Share based payment valuations                                             
Details relating to the shares based payment valuations are detailed in Note 25.
4.   Revenue and other income                                                   
                                    Consolidated                                
                                    2010         2009                           
$            $                              
  Revenue from continuing                                                       
  operations                                                                    
  Interest received                 41,325       15,477                         
Other revenue                     27,426       7,696                          
                                    68,751       23,173                         
5.   Expenses                                                                   
  Expenses from continuing                                                      
operations includes:                                                          
  Auditors` remuneration            51,725       43,803                         
  Compliance and regulatory         85,147       78,707                         
  fees                                                                          
Consultancy and legal fees        1,050,664    264,090                        
  Occupancy costs                   -            99,522                         
  Travel expenses                   61,188       17,632                         
                                                                                
Employee benefits expense                                                     
  includes:                                                                     
  Salaries and wages                174,256      -                              
  Superannuation                    15,096       -                              
Directors` fees                   177,575      105,909                        
  Share-based payments              86,083       -                              
  Other employee expenses           1,976        -                              
                                    454,986      105,909                        
.    Income tax                                                                 
(a)  Income tax expense                                                         
                                    Consolidated                                
                                    2010         2009                           
$            $                              
  Current tax                       -            -                              
  Deferred tax                      -            -                              
  Income tax expense                -            -                              
(b)  Reconciliation of income tax expense to prima facie tax payable            
  Loss before income tax            (2,214,397)  (974,886)                      
  expense                                                                       
  Tax at 30% (Australian            (664,319)    (292,466)                      
rate)                                                                         
                                                                                
  Tax effect of amounts that                                                    
  are / are not deductible /                                                    
(taxable) in calculating                                                      
  income tax:                                                                   
  - Exploration expenditure         -            60,402                         
  Tax losses not brought to         664,319      234,087                        
account                                                                       
                                    -            2,023                          
  Difference in overseas tax        -            (2,023)                        
  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 for             35,668,000   35,003,681                     
  which no benefit has been                                                     
  recognised                                                                    
Potential tax benefit at          10,588,046   10,389,380                     
  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 ealization.  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.   Trade and other receivables                                                
                                    Consolidated                                
2010         2009                           
                                    $            $                              
  Current                                                                       
  Trade debtors                     5,175        11,425                         
GST and VAT receivable            19,043       44,049                         
  Prepayments                       24,727       -                              
                                    48,945       55,474                         
                                                                                
Non-current                                                                   
  Other deposits                    42,323       43,021                         
8.   Other financial assets                                                     
  Receivable for disposal of        2,960,354    -                              
Kareevlei Project - at net                                                    
  present value                                                                 
9.   Inventories                                                                
  Rough diamonds - at lower         75,641       77,131                         
of cost and recoverable                                                       
  value                                                                         
10.  Investment in associate                                                    
  Vecto Trade 436 (Pty) Ltd         16,640        16,640                        
- 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.  Property, plant and equipment                                              
  Freehold land and                 186,142      339,341                        
buildings - at cost                                                           
  Accumulated depreciation          -            (149,532)                      
                                    186,142      189,809                        
                                                                                
Plant and equipment - at          1,206,989    1,251,897                      
  cost                                                                          
  Accumulated depreciation          (1,206,989)  (1,137,655)                    
                                    -            114,242                        

  Motor vehicles - at cost          29,192       29,767                         
  Accumulated depreciation          (28,442)     (23,049)                       
                                    750          6,718                          

                                    186,892      310,769                        
12.  Exploration expenditure                                                    
The exploration and evaluation expenditure relates to the consolidated entity`s 
projects in South Africa, Botswana and Angola.                                  
Movement in carrying values                                                     
                                    Consolidated                                
                                    2010         2009                           
$            $                              
  Balance at beginning of           5,950,734    5,883,355                      
  year                                                                          
  Expenditure during the            11,527       201,340                        
year                                                                          
  Disposal of exploration           (2,633,499)  -                              
  projects during the year                                                      
  Expenditure written off           (259,754)    (3,945)                        
during the year                                                               
  Foreign currency                  (145,861)    (130,016)                      
  translation                                                                   
  Balance at end of year            2,923,147    5,950,734                      
During the financial year exploration expenditure was written off in relation to
the Moshaiwa licenses PL86-87/2007 and Borolong license PL37/2003 which were    
relinquished as part of Tawana`s ongoing project prioritisation.                
13.  Trade and other payables                                                   
Current                                                                       
  Trade creditors                   56,878       338,355                        
  Other creditors and               91,848       19,408                         
  accruals                                                                      
148,726      357,763                        
14.  Borrowings                                                                 
  Current                                                                       
  Convertible notes                 -            200,000                        

  Non-current                                                                   
  Convertible notes                 -            350,000                        
15.  Contributed equity                                                         
(a)  Issued capital                                                             
  Ordinary shares, fully            36,482,279   35,356,374                     
  paid                                                                          
(b)  Movements in share capital                                                 
2010           2009        2010         2009              
                      Number         Number      $            $                 
                                                                                
 Balance at           217,138,854    113,763,134 35,356,374   34,708,732        
beginning of year                                                              
 Shares issued        384,316,901    103,375,720 2,402,975    736,300           
 during year                                                                    
 Transaction costs    -              -           (1,277,070)  (88,658)          
relating to share                                                              
 issues                                                                         
 Balance at end of    601,455,755    217,138,854 36,482,279   35,356,374        
 year                                                                           
15.  Contributed equity (continued)                                             
(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.                                                                    
16.  Reserves                                                                   
Note  Consolidated                                
                                    2010         2009                           
                                    $            $                              
  Foreign currency            (a)   (2,734,963)  (2,990,374)                    
translation                                                                   
  Options                     (b)   2,430,220    570,338                        
  Asset revaluation           (c)   22,884       22,884                         
                                    (281,859)    (2,397,152)                    
(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)I.                                                                          
(b)  Options reserve                                                            
The options reserve records the fair value of options issued but not exercised. 
  Balance at beginning of           570,338      436,430                        
  year                                                                          
Options issued during year  25    1,859,882    133,908                        
  Balance at end of year            2,430,220    570,338                        
(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 2010 and 2009.                                                         
  Balance at end of year            22,884       22,884                         
17.  Discontinued operations                                                    
On 18 August 2010, the consolidated group announced its decision to sell its    
interest in its Kareevlei deposit, thereby discontinuing its operations in this 
business segment.  A binding heads of agreement between the consolidated entity 
and the purchaser, Rolatseng Mining CC, was signed on this day, effecting the   
sale.  A gain of approximately ZAR$2.7m (AUD$384,293) has been recognised on the
sale of the Kareevlei deposit with tax losses having been applied to any        
resulting capital gain on sale.  The consolidated group has not recognised any  
tax expense from the transaction of sale due to the existence of previously     
unrecognised tax losses.                                                        
17.  Discontinued operations (continued)                                        
The financial performance of the discontinued operation to the date of the sale 
which is included in the profit or loss from discontinued operations, and       
adjusted to the previous year`s comparatives, is as follows:                    
                                    Consolidated                                
                                    2010         2009                           
                                    $            $                              
Revenue                           26,696       -                              
  Consideration received and        3,017,792    -                              
  receivable                                                                    
  Written down value of area        (2,610,806)  -                              
of interest sold                                                              
  Realised foreign currency         (454,759)    -                              
  loss on disposal of foreign                                                   
  operation                                                                     
Other expenditure                 (46,099)     (154,581)                      
                                    (67,176)     (154,581)                      
18.  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                                                                      
Julian Babarczy                                                                 
Warwick Grigor (appointed 20 April 2010)                                        
Stirling Horne (resigned 4 February 2010)                                       
Key management personnel of the group for the year was as follows:              
Lennard Kolff (Chief Executive Officer, appointed 2 June 2010)                  
(b)  Compensation of key management personnel                                   
                                    Consolidated                                
                                    2010         2009                           
$            $                              
  Short-term employee               267,418      86,409                         
  benefits                                                                      
  Post-employment benefits          21,971       -                              
Share-based payments              45,721       109,872                        
                                    335,110      196,281                        
(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.                                                                      
18.  Key management personnel disclosures (continued)                           
(c)  Equity instrument disclosures relating to key management personnel         
(continued)                                                                     
(i)  Option holdings (continued)                                                
2010                                                                            
Name      Balance    Granted     Exerci  Other   Balance at   Options           
         at start   during      sed     changes end of year  vested and         
         of year    year as     during  during               exercisabl         
remun-      year    year                 e at end           
                    eration                                  of year            
         Number     Number      Number  Number  Number       Number             
Director                                                                        
s                                                                               
Mr E      6,104,150  -           -       -       6,104,150    6,104,150         
Luff                                                                            
Mr H      -          -           -       -       -            -                 
Hill                                                                            
Mr J      -          -           -       -       -            -                 
Babarczy                                                                        
Mr W      -          -           -       -       -            -                 
Grigor                                                                          
Mr S      -          -           -       -       -            -                 
Horne                                                                           
Key                                                                             
manageme                                                                        
nt                                                                              
personne                                                                        
l                                                                               
Mr L      -          10,000,000  -       -       10,000,000   -                 
Kolff                                                                           
         6,104,150  10,000,000  -       -       16,104,150   6,104,150          
2009                                                                            
Name      Balance    Granted     Exer  Other        Balance    Options          
         at start   during      cise  changes      at end of  vested            
         of year    year as     d     during year  year       and               
                    remun-      duri  *                       exercisab         
eration     ng                            le at end         
                                year                          of year           
         Number     Number      Numb  Number       Number     Number            
                                er                                              
Director                                                                        
s                                                                               
Mr E      2,104,150  4,000,000   -     -            6,104,150  6,104,150        
Luff                                                                            
Mr H      -          -           -     -            -          -                
Hill                                                                            
Mr J      -          -           -     -            -          -                
Babarczy                                                                        
Mr S      -          -           -     -            -          -                
Horne                                                                           
Ms N      -          -           -     -            -          -                
Mazwai                                                                          
Mr N      4,270,000  6,000,000   -     (10,270,000) -          -                
Barrie                                                                          
Mr B      312,500    2,000,000   -     (2,312,500)  -          -                
Phillips                                                                        
Mr W      2,814,000  4,000,000   -     (6,814,000)  -          -                
Marx                                                                            
         9,500,650  16,000,000  -     (19,396,500) 6,104,150  6,104,150         
*    Balance at date of resignation                                             
(ii) Shareholdings                                                              
The number of shares in the Company held during the financial year by each      
director of Tawana Resources NL and other key management personnel, including   
their personally related parties, is set out below.  There were no shares       
granted during the reporting year as remuneration.                              
18.  Key management personnel disclosures (continued)                           
(c)  Equity instrument disclosures relating to key management personnel         
(continued)                                                                     
(ii) Shareholdings (continued)                                                  
2010                                                                            
Name      Balance at  Balance at  Receiv  Other      Bala  Balance at           
         start of    date of     ed      acquisitio nce   end of the            
the year    appoint-    during  n of       at    year                  
                     ment        the     shares     date                        
                                 year    during the of                          
                                 on      year       resi                        
exerci             gnat                        
                                 se of              ion                         
                                 option                                         
                                 s                                              
Number      Number      Number  Number     Numb  Number                
                                                    er                          
Director                                                                        
s                                                                               
Mr E      7,344,870   -           -       13,344,870 -     20,689,740           
Luff                                                                            
Mr H      -           -           -       -          -     -                    
Hill                                                                            
Mr J      5,000,000   -           -       20,000,000 -     25,000,000           
Babarczy                                                                        
Mr W      -           19,850,000  -       8,000,000  -     27,850,000           
Grigor                                                                          
Mr S      -           -           -       -          -     -                    
Horne                                                                           
Key                                                                             
manageme                                                                        
nt                                                                              
personne                                                                        
l                                                                               
Mr L      -           -           -       -          -     -                    
Kolff                                                                           
         12,344,870  19,850,000  -       41,344,870 -     73,539,740            
2009                                                                            
Name      Balance at  Balance    Recei  Other     Balance at   Balance          
start of    at date    ved    changes   date of      at end            
         the year    of         durin  during    resignation  of the            
                     appoint-   g the  the year               year              
                     ment       year                                            
on                                              
                                exerc                                           
                                ise                                             
                                of                                              
optio                                           
                                ns                                              
         Number      Number     Numbe  Number    Number       Number            
                                r                                               
Director                                                                        
s                                                                               
Mr E      7,344,870   -          -      -         -            7,344,87         
Luff                                                           0                
Mr H      -           -          -      -         -            -                
Hill                                                                            
Mr J      -           5,000,000  -      -         -            5,000,00         
Babarczy                                                       0                
Mr S      -           257,550    -                (257,550)    -                
Horne                                                                           
Ms N      5,437,457   -          -      3,375,720 (8,813,177)  -                
Mazwai                                                                          
Mr N      1,246,154   -          -      -         (1,246,154)  -                
Barrie                                                                          
Mr B      508,700     -          -      -         (508,700)    -                
Phillips                                                                        
Mr W      7,062,500   -          -      -         (7,062,500)  -                
Marx                                                                            
         21,599,681  5,257,550  -      3,375,720 (17,888,081  12,344,8          
                                                 )            70                
(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 2010 or 31        
December 2009.                                                                  
(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 $229,630 in fees for the provision of legal 
services.  Payments were based on commercial terms and conditions.              
19.  Details of controlled entities                                             
  Name                  Country of   Interest held                              
                        incorporati  by the                                     
                        on           consolidated                               
entity                                     
                                     2010   2009                                
                                     %      %                                   
  Parent                                                                        
Tawana Resources NL   Australia                                               
                                                                                
  Controlled entities                                                           
  Seolo Botswana (Pty)  Botswana     100    100                                 
Ltd                                                                           
  Tawana Resources      South        100    100                                 
  (Pty) Ltd             Africa                                                  
  Diamond Resources     South        100    100                                 
(Pty) Ltd             Africa                                                  
                                                                                
20.  Contingent liabilities and commitments                                     
The consolidated entity does not have any material contingent assets or         
liabilities.                                                                    
21.  Segment information                                                        
The consolidated entity operates wholly in one business segment, being mineral  
exploration and within one geographical segment, being Africa.                  
22.  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                                
                                    2010         2009                           
                                    $            $                              
Cash on hand and at bank          815,470      348,609                        
  Cash on deposit                   20,000       -                              
                                    835,470      348,609                        
22.  Notes to the Statement of Cash Flows (continued)                           
(b)  Reconciliation of net loss after tax to net cash flows from operations     
                                    Consolidated                                
                                    2010         2009                           
                                    $            $                              
Net loss                          (2,214,397)  (974,886)                      
                                                                                
  Adjustments for:                                                              
  Depreciation                      99,496       174,766                        
Impairment and write off          259,754      3,945                          
  of non-current assets                                                         
  Profit on sale of                 -            (1,661)                        
  property, plant and                                                           
equipment                                                                     
  Discontinued operation            67,176       -                              
  Share-based payments              799,564      370,208                        
  Interest paid through             29,113       -                              
share issues                                                                  
  Unrealised foreign                10,544       174,898                        
  currency gain / loss on                                                       
  translation                                                                   

  Changes in assets and                                                         
  liabilities                                                                   
  (Increase) / decrease in:                                                     
Trade and other                   7,227        (24,478)                       
  receivables                                                                   
  Inventories                       1,490        4,137                          
                                                                                
Increase / (decrease) in:                                                     
  Trade and other payables          (209,037)    (147,314)                      
  Provisions                        19,270       (53,883)                       
  Net cash from operating           (1,129,800)  (474,268)                      
expenses                                                                      
23.  Auditor`s remuneration                                                     
  William Buck                                                                  
  Audit services                    51,725       43,803                         
Non-audit services                -            -                              
                                    51,725       43,803                         
  Auditor of subsidiaries                                                       
  Pricewaterhouse Coopers                                                       
Audit services                    8,142        30,030                         
  Non-audit services                -            -                              
                                    8,142        30,030                         
24.  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.                                                       
24.                                                                             
Loss per share (continued)                                                      
2010        2009                            
                                    Number      Number                          
                                    468,512,169 129,622,559                     
Weighted average number of                                                      
ordinary shares used in the                                                     
calculation of basic loss per                                                   
share                                                                           
                                                                                
$           $                               
                                    (2,214,397) (974,886)                       
Net loss from continuing and                                                    
discontinuing operations                                                        
(2,147,221) (820,305)                       
Net loss from continuing                                                        
operations                                                                      
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                          
                                    198,160,053 198,160,053                     
Options over ordinary shares                                                    
Subsequent to year end the Company issued additional options which resulted in  
the following additional potential ordinary shares as at the reporting date:    
Equity securities                    Number of   Number of                      
securities  potential                       
                                                ordinary                        
                                                shares                          
                                    223,160,053 223,160,053                     
Options over ordinary shares                                                    
25.  Share-based payments                                                       
Summary of options on issue                                                     
Issue date    Quantity     Grant date  Expiry date  Exercise price              
Various       13,240,053   Various     1 Apr 2011   $0.10                       
Various       1,420,000    Various     30 Nov 2011  $0.35                       
18 Jun 2008   4,000,000    18 Jun      18 Jun 2012  $0.07                       
                          2008                                                  
17 Jan 2009   6,000,000    18 Dec      17 Jan 2013  $0.10                       
                          2008                                                  
17 Jan 2009   6,750,000    18 Dec      17 Jan 2013  $0.07                       
                          2008                                                  
17 Jan 2009   6,750,000    18 Dec      17 Jan 2014  $0.10                       
                          2008                                                  
23 Feb 2010   50,000,000   23 Feb      23 Feb 2013  $0.01                       
                          2010                                                  
9 Sep 2010    50,000,000   9 Sep 2010  31 Jul 2012  $0.01                       
9 Sep 2010 *  5,000,000    9 Sep 2010  9 Sep 2012   $0.03                       
9 Sep 2010    50,000,000   9 Sep 2010  30 Jul 2013  $0.01                       
9 Sep 2010 *  5,000,000    9 Sep 2010  9 Sep 2014   $0.05                       
190,160,053                                                        
With the exception of the options marked with an asterisk, which vest on 9      
September 2011, all share options are exercisable.                              
25.  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 Black Scholes option pricing 
model that takes into account the exercise price, term of the option, the share 
price at grant date and expected price volatility of the underlying share, the  
expected dividend yield and the risk free interest rate for the term of the     
option.                                                                         
The following options were issued during the year ended 31 December 2010:       
  Issue    Quantity     Grant    Expiry   Exercise  Fair     Total              
  date                  date     date     price     value    fair               
                                                    per      value              
option                      
  23 Feb   50,000,000   23 Feb   23 Feb   $0.01     $0.0079  $396,500           
  2010                  2010     2013                                           
  9 Sep    50,000,000   9 Sep    31 Jul   $0.01     $0.0133  $663,817           
2010                  2010     2012                                           
  9 Sep    5,000,000    9 Sep    9 Sep    $0.03     $0.0100  $50,099            
  2010                  2010     2012                                           
  9 Sep    50,000,000   9 Sep    30 Jul   $0.01     $0.0143  $713,481           
2010                  2010     2013                                           
  9 Sep    5,000,000    9 Sep    9 Sep    $0.05     $0.0119  $59,728            
  2010                  2010     2014                                           
           160,000,000                                                          
The model inputs for the options granted during the year were as follows:       
                     A          B           C         B           E             
  Quantity           50,000,000 50,000,000  5,000,000 50,000,000  5,000,000     
  Grant date         23 Feb 10  9 Sep 10    9 Sep 10  9 Sep 10    9 Sep 10      
Expiry date        23 Feb 13  31 Jul 12   9 Sep 12  30 Jul 13   9 Sep 14      
  Grant date share   $0.015     $0.025      $0.025    $0.025      $0.025        
  price                                                                         
  Exercise price     $0.01      $0.01       $0.03     $0.01       $0.05         
Expected           120%       120%        120%      120%        120%          
  volatility                                                                    
  Option life        2.7        1.7         1.9       2.6         3.7           
  (years)                                                                       
Expected dividend  0%         0%          0%        0%          0%            
  yield                                                                         
  Risk free rate at  4.43%      4.60%       4.64%     4.62%       4.73%         
  grant date                                                                    
No options were issued during the year ended 31 December 2009.                  
The cost of the issue of options was recorded in the financial statements as    
follows:                                                                        
*    options issued during the financial year for consulting work and employee  
remuneration, with a cost of $747,690 (2009: nil) were charged to the       
    profit or loss;                                                             
*    options issued during 2008, and not yet vested at the commencement of the  
    financial year for director remuneration, with a cost of $51,874 (2009:     
$133,908) were charged to the profit or loss; and                           
*    options issued in satisfaction of capital raising costs, with a value of   
    $1,060,317 (2009: nil) were charged directly to equity.                     
26.  Subsequent events                                                          
On 19 January 2011, the Company announced that the Strategic Alliance with      
Gryphon Minerals Limited had been formally executed by both Boards and two      
highly prospective mineral permits had been issued to Gryphon, allowing Tawana  
to start exploration activities before the onset of the wet season in June 2011.
West Africa is the fastest growing gold producing region in the world and while 
Liberia has significant potential to host large, world class deposits of gold,  
copper, iron ore and other minerals it remains largely underexplored.           
26.  Subsequent events (continued)                                              
On 2 March 2011, the Company announced that two highly prospective mineral      
permits have been formally approved by the Liberian Minister of Lands Mines and 
Energy Dr. Roosevelt G. Jayjay, allowing Tawana to start exploration activities 
before the onset of the wet season in June 2011.                                
On 22 March 2011, the Company announced that following the appointment of BGF   
Equities as Lead Manager, the Company completed a placement of 100 million      
shares at an issue price of 4.5 cents to raise $4.5 million before costs.  The  
funds raised by the placement will be used primarily to advance exploration     
activities in Liberia, to fund initial drilling on targets defined and on       
working capital on Tawana`s West African growth plans.                          
On 30 March 2011, the Company announced that it had issued 25 million fully paid
ordinary shares in the Company following the exercise of options previously on  
issue.                                                                          
27.  Supplementary information about the parent entity                          
                                    Parent                                      
                                    2010         2009                           
$            $                              
  Assets                                                                        
  Current assets                    865,010      397,725                        
  Total assets                      7,110,335    6,660,927                      

  Liabilities                                                                   
  Current liabilities               103,425      423,612                        
  Total liabilities                 103,425      781,304                        

  Net assets                        7,006,910    5,879,623                      
                                                                                
  Equity                                                                        
Issued capital                    36,482,279   35,356,374                     
  Reserves                          2,453,104    593,222                        
  Total equity                      7,006,910    5,879,623                      
                                                                                
Profit and loss                                                               
  Profit / (loss)                   (1,858,499)  (935,641)                      
                                                                                
  Comprehensive income                                                          
Total comprehensive income        (1,858,499)  (935,641)                      
There were no contingent liabilities, guarantees or capital commitments of the  
parent entity not otherwise disclosed in these financial statements.            
DIRECTORS` DECLARATION                                                          
In accordance with a resolution of the directors of Tawana Resources NL, I state
that:                                                                           
In the opinion of the directors:                                                
(a)  the financial statements and notes as set out on pages 21 to 45 of the     
Company and of the consolidated entity are in accordance with the           
    Corporations Act 2001, including:                                           
(i)  giving a true and fair view of the Company`s and the consolidated entity`s 
    financial position as at 31 December 2010 and of their performance for the  
year ended on that date; and                                                
(ii)      complying with Accounting Standards and Corporations Regulations 2001;
         and                                                                    
(b)  there are reasonable grounds to believe that the Company will be able to   
pay its debts as and when they become due and payable.                      
`                                                                               
2    The attached financial statements and notes thereto comply with            
    International Financial Reporting Standards as issued by the International  
Accounting Standards Board as described in Note 1 to the financial          
    statements.                                                                 
3    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 2010.        
On behalf of the Board                                                          
Mr Warwick Grigor                                                               
Non-executive Chairman                                                          
Melbourne, 31st March 2011                                                      
INDEPENDENT AUDITOR`S REPORT TO THE MEMBERS OF TAWANA RESOURCES NL and          
controlled entities                                                             
ABN 69 085 166 721                                                              
Report on the Financial Report                                                  
We have audited the accompanying consolidated financial report comprising       
Tawana Resources NL (the Company) and the entities it controlled at the         
year`s end or from time to time during the financial year, which comprises      
the statement of financial position as at 31 December 2010, the statement of    
comprehensive income, the statements of changes in equity and the statements    
of cash flows for the year then ended, notes comprising a summary of            
significant accounting policies and other explanatory information, and the      
directors` declaration.                                                         
Directors` Responsibility for the Financial Report                              
The directors of the company are responsible for the preparation of the         
financial report that gives a true and fair view in accordance with             
Australian Accounting Standards and the Corporations Act 2001 and for such      
internal controls as the directors determine is necessary to enable the         
preparation of the financial report that is free from material misstatement,    
whether due to fraud or error.  In Note 1, the directors also state, in         
accordance with Accounting Standard AASB 101 Presentation of Financial          
Statements, that the financial statements comply with International Financial   
Reporting Standards.                                                            
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.  Those standards require that we comply with relevant ethical        
requirements relating to audit engagements and plan and perform the audit to    
obtain reasonable assurance about 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 the 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.                           
Independence                                                                    
In conducting our audit, we have complied with the independence requirements    
of the Corporations Act 2001.                                                   
INDEPENDENT AUDITOR`S REPORT TO THE MEMBERS OF TAWANA RESOURCES NL and          
controlled entities (CONT)                                                      
ABN 69 085 166 721                                                              
Auditor`s Opinion                                                               
In our opinion:                                                                 
a.                  the financial report of the consolidated entity is in       
                   accordance with the Corporations Act 2001, including:        
                   i.  giving a t                                               
                       INDEPENDENT AUDITOR`S REPORT TO THE MEMBERS OF           
TAWANA RESOURCES NL and controlled entities              
                                                                                
                       ABN 69 085 166 721                                       
                       Report on the Financial Report                           

                       We have audited the accompanying consolidated            
                       financial report comprising Tawana Resources NL          
                       (the Company) and the entities it controlled at          
the year`s end or from time to time during the           
                       financial year, which comprises the statement of         
                       financial position as at 31 December 2010, the           
                       statement of comprehensive income, the statements        
of changes in equity and the statements of cash          
                       flows for the year then ended, notes comprising a        
                       summary of significant accounting policies and           
                       other explanatory information, and the directors`        
declaration.                                             
                                                                                
                                                                                
                       Directors` Responsibility for the Financial              
Report                                                   
                                                                                
                       The directors of the company are responsible for         
                       the preparation of the financial report that             
gives a true and fair view in accordance with            
                       Australian Accounting Standards and the                  
                       Corporations Act 2001 and for such internal              
                       controls as the directors determine is necessary         
to enable the preparation of the financial report        
                       that is free from material misstatement, whether         
                       due to fraud or error.  In Note 1, the directors         
                       also state, in accordance with Accounting                
Standard AASB 101 Presentation of Financial              
                       Statements, that the financial statements comply         
                       with International Financial Reporting Standards.        
                                                                                

                       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.  Those standards require that        
                       we comply with relevant ethical requirements             
relating to audit engagements and plan and               
                       perform the audit to obtain reasonable assurance         
                       about 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 the 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.                           
                                                                                
                                                                                
Independence                                             
                                                                                
                       In conducting our audit, we have complied with           
                       the independence requirements of the Corporations        
Act 2001.                                                
                                                                                
                                                                                
                       rue and fair view of the consolidated entity`s           
financial position as at 31 December 2010 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; and                                                
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 the directors` report       
for the year ended 31 December 2010.  The directors of the company are          
responsible for the preparation and presentation of the Remuneration            
Report in accordance with section 300A 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.        
Auditor`s Opinion                                                               
In our opinion, the Remuneration Report of Tawana Resources NL for the          
year ended 31 December 2010, complies with section 300A of the                  
Corporations Act 2001.                                                          
ABN 69 085 166 721                                                              
Matters Relating to the Electronic Presentation of the Audited Financial        
Report                                                                          
This auditor`s report relates to the financial report of Tawana Resources       
NL and the entities it controlled for the year ended 31 December 2010           
included on Tawana Resources NL web site.  The company`s directors are          
responsible for the integrity of the Tawana Resources NL web site.  We          
have not been engaged to report on the integrity of the Tawana Resources        
NL web site.  The auditor`s report refers only to the financial report          
and remuneration report.  It does not provide an opinion on any other           
information which may have been hyperlinked to/from these statements.  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 audited financial report to confirm the information included in          
the audited financial report presented on this web site.                        
Jeffrey Luckins                                                                 
Director                                                                        
William Buck Audit (VIC) Pty Limited                                            
ABN 59 116 151 136                                                              
Dated in Melbourne, Australia on this 31st day of March 2011                    
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    NC 30/5/1/1/088                 
Project       Exploration Inc                   PR                              
South Africa                                                                    
Kareevlei Wes Diamond Resources Pty  100%       NC                              
South Africa  Ltd                               30/5/1/2/2/081                  
                                               MR                               
St Augustines Vecto Trade 436 Pty    30%        NC                              
South Africa  Ltd                    (indirect) 30/5/1/1/5/402                  
                                               PR                               
Lexshell      Lexshell 366 Mining    50%        NC                              
South Africa  (Pty) Ltd                         30/5/1/2/2/054                  
                                               MR                               
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                                                      
Orapa         Seolo Botswana (Pty)   100%       PL 61/2007                      
Botswana      Ltd                                                               
Perdevlei     Tawana Resources       100%       MTR 371/2007 PR                 
South Africa  (Pty) Ltd / Motjoli                                               
Additional information included in accordance with the Listing Rules of the     
Australian Securities Exchange Limited.  The information is current as at 25    
March 2011.                                                                     
ASX ADDITIONAL INFORMATIO                                                       
AS AT 25 MARCH 2011                                                             
1.   Substantial shareholders                                                   
The names of substantial shareholders who had notified the Company in accordance
with section 671B of the Corporations Act are:                                  
Gryphon Minerals Limited 100,000,000 shares                                     
Spring Plains Pastoral Co (VIC) Pty Ltd  40,000,000 shares   
Deck Chair Holdings Pty Ltd   33,130,000 shares                                 
Trayburn Pty Ltd    27,850,000 shares                                           
Mutual Trust Pty Ltd     25,500,000 shares             
2.   Statement of issued capital                                                
(a)  Distribution of fully paid ordinary shareholders                           
  Size of holding       Number       Shares held                                
                        of                                                      
holders                                                 
  1 - 1,000             177          112,860                                    
  1,001 - 5,000         394          1,202,305                                  
  5,001 - 10,000        281          2,255,362                                  
10,001 - 100,000      653          25,191,478                                 
  100,001 and over      343          772,867,038                                
                        1,848        801,629,043                                
(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 860 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     1,420,000  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   $0.07     17 Jan     6,750,000  6                          
2013                                             
  Unlisted options   $0.10     17 Jan     6,750,000  6                          
                               2014                                             
  Unlisted options   $0.01     23 Feb     50,000,000 1                          
2013                                             
  Unlisted options   $0.01     31 Jul     50,000,000 1                          
                               2012                                             
  Unlisted options   $0.03     9 Sep      5,000,000  1                          
2012                                             
  Unlisted options   $0.01     30 Jul     50,000,000 1                          
                               2013                                             
  Unlisted options   $0.05     9 Sep      5,000,000  1                          
2014                                             
  Unlisted options   $0.01     8 Mar      25,000,000 1                          
                               2014                                             
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 60.61% of the issued capital of the Company
as at 25 March 2011.                                                            
No   Shareholder                     Number of         Percenta                 
                                    shares            ge of                     
                                                      issued                    
capital                   
                                                                                
1    Gryphon Minerals Limited        100,000,000       12.47%                   
2    Merriwee Pty Ltd                54,191,667        6.76%                    
                                                   
3    Spring Plains Pastoral Co       40,000,000        4.99%                    
    (Vic) Pty Ltd                                                               
                                                             
4    Deck Chair Holdings Pty Ltd     35,428,934        4.42%                    
5    BT Portfolio Services Limited   33,042,791        4.12%                    
                                                      
6    Mahsor Holdings Pty Ltd         27,596,575        3.44%                    
                                                   
7    Trayburn Pty Ltd                25,850,000        3.22%                    
8    Mr Julian Babarczy              25,173,288        3.14%                    
9    Gregorach Pty Ltd               19,850,000        2.48%                    
                                                      
10   RL Holdings Pty Ltd             19,500,000        2.43%                    
                                                                    
11   Gryphon Minerals Limited        14,250,000        1.78%                    
12   Mikonos Investments Pty Ltd     14,246,183        1.78%                    
13   Lufgan Nominees Pty Ltd         13,975,308        1.74%                    
                                                         
14   I E Properties Pty Ltd          13,000,000        1.62%                    
15   Mrs Margot Louise Brandenburg   11,800,000        1.47%                    
                                                    
16   HSBC Custody Nominees           10,286,202        1.28%                    
    (Australia) Limited                                                         
17   Gregorach Pty Ltd               8,000,000         1.00%                    
18   ABN Amro Clearing Sydney        6,725,600         0.84%                    
    Nominees Pty Ltd                                                            
                                                                 
19   Domain Carpet Mills Pty Ltd     6,540,455         0.82%                    
                                                  
20   Baystreet Pty Ltd               6,500,000         0.81%                    
                                                                   
485,957,003       60.61%                    
Date: 31/03/2011 13:53:59 Supplied by www.sharenet.co.za                     
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