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TAW - Tawana Resources NL - Financial report for the half-year ended

Release Date: 13/09/2011 11:18:47      Code(s): TAW
TAW - Tawana Resources NL - Financial report for the half-year ended            
30 June 2011                                                                    
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")                                                     
TAWANA RESOURCES NL                                                             
ABN 69 085 166 721                                                              
FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2011                           
This information should be read in conjunction with the                         
31 December 2010 Annual Repor                                                   
Corporate Directory                                                   3         
Directors` Report                                                     4         
Auditor`s Independence Declaration                                    6         
Statement of Comprehensive Income                                     7         
Statement of Financial Position                                       8         
Statement of Changes in Equity                                        9         
Statement of Cash Flows                                               10        
Notes to the Financial Statements                                     11        
Directors` Declaration                                                14        
Independent Auditor`s Report to the Members                           15        
Directors                                                                       
Mr Warwick Grigor        Non-Executive Chairman                                 
Mr Euan Luff             Non-Executive Director                                 
Mr Julian Babarczy       Non-Executive Director                                 
Mr Matthew Bowles        Non-Executive Director                                 
Joint Company Secretaries                                                       
Mr Winton Willesee                                                              
Mr Aaron Finlay                                                                 
Principal Place of Business                                                     
and Registered Office                                                           
Suite 25                                                                        
145 Stirling Highway                                                            
Nedlands WA 6009                                                                
Contact Details                                                                 
Website:  www.tawana.com.au                                                     
Tel:      +61 8 9389 3140                                                       
Fax:      +61 8 9389 3199                                                       
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                                                                  
Auditor`s Independence Declaration                                              
Your Directors present their report on the Company and its controlled           
entities ("consolidated entity") for the half-year ended 30 June 2011.          
Directors                                                                       
The names of the Directors in office at any time during or since the end of     
the half-year are as follows.  All Directors have been in office for this       
entire period unless otherwise stated.                                          
Mr Warwick Grigor - Non-Executive Chairman                                      
Mr Euan Luff - Non-Executive Director                                           
Mr Julian Babarczy - Non-Executive Director                                     
Mr Harry Hill - Non-Executive Director (resigned 27 May 2011)                   
Mr Matthew Bowles - Non-Executive Director (appointed 30 May 2011)              
Operating results                                                               
The loss of the consolidated entity for the half-year ended 30 June 2011        
after providing for income tax amounted to $333,198 (30 June 2010:              
$553,571).                                                                      
No dividends were declared or paid during the half-year ended 30 June 2011.     
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 gold in West Africa, 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.                                  
The company also continues to expand 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 Perth, Australia.                                                            
Corporate Activities and Subsequent Events                                      
The Company announced, on 19 January 2011 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.  Following shareholder approval at a general meeting of           
shareholders on 24 February 2011, 100 million fully paid ordinary shares in     
the Company were issued to Gryphon as consideration on the acquisition as       
part of this Strategic Alliance.                                                
Exploration activities continued on the Nimba and Lofa licenses; two            
mineral permits issued in December 2010 and formally approved to Gryphon        
Minerals Ltd (ASX: GRY) on 23rd February 2011. The Lofa License covers 596      
Km2 and is along strike from the 1.52 Moz New Liberty gold deposit and the      
Nimba License covers 995 Km2 and is adjacent to the 5.0 Moz Ity gold mine.      
Both licenses host highly prospective Archean greenstone belts that have        
had no modern day exploration and have confirmed artisanal workings.            
On 16 March 2011, the Company announced that it had appointed BGF Equities      
as Lead Manager in the 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.                                          
During the period Mr Matthew Bowles was appointed a Non-Executive Director      
of the Company and the Company recruited a Senior Geologist, Rockson Coffie     
accountable for field programmes and target generation in Liberia as well       
as review and assessment of prospective opportunities throughout West           
Africa                                                                          
On 13 July 2011, the Company announced it had secured binding exclusive         
rights to perform due diligence on a significant, highly prospective            
Birimian land package in Sinoe County, South-Eastern Liberia referred to as     
the Sinoe Project. The Sinoe Project area covers 400 Km2 within arguably        
one of the most prospective Birimian gold structures currently being            
explored in Liberia; the Dugbe Shear.  On 16 August 2011, the Company           
announced the successful completion of the due diligence and completion of      
the acquisition of the Sinoe Project.  Refer Note 7 of the Financial            
Statements.                                                                     
Auditor`s independence declaration                                              
The lead auditor`s independence declaration for the half-year ended 30 June     
2011 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 13th day of September 2011                              
Consolidated Statement of Comprehensive Income                                  
For the half-year ended 30 June 2011                                            
                                           Note  30 June 2011 30 June 2010      
$            $                 
                                                                                
Revenue                                           253,564      27,855           
                                                                                
Corporate costs                                   (269,871)    (387,807)        
Depreciation                                      (1,948)      (60,634)         
Employee benefits expense                         (204,496)    (126,822)        
Exploration expenses written off                  (11,652)     -                
Other expenses                                    (68,413)     (6,163)          
Loss before income tax expense                    (302,816)    (553,571)        
Income tax expense                                -            -                
Net loss for the period from continuing           (302,816)    (553,571)        
operations                                                                      
Loss from discontinued operations after tax       (30,382)     -                
Net loss for the period attributable to           (333,198)    (553,571)        
Tawana Resources NL                                                             

Other comprehensive income                                                      
Loss on translation of foreign operations         (833,101)    (87,363)         
Other comprehensive income for the period,        (833,101)    (87,363)         
net of tax                                                                      
Total comprehensive loss for the period           (1,166,299)  (640,934)        
attributable to Tawana Resources NL                                             
                                                                                
Earnings per share from continuing and                                          
discontinuing operations                                                        
 Basic loss (cents)                              (0.04)       (0.13)            
 Diluted loss (cents)                            (0.04)       (0.13)            

Earnings per share from continuing                                              
operations                                                                      
 Basic loss (cents)                              (0.04)       (0.13)            
Diluted loss (cents)                            (0.04)       (0.13)            
The above Consolidated Statement of Comprehensive Income should be read in      
conjunction with the accompanying notes.                                        
Consolidated Statement of Financial Position                                    
As at 30 June 2011                                                              
                                           Note  30 June      31 December       
                                                 2011         2010              
                                                 $            $                 

Current assets                                                                  
Cash and cash equivalents                   2     4,766,870    835,470          
Trade and other receivables                       68,773       48,945           
Other financial assets                            2,937,851    2,960,354        
Inventories                                       52,680       75,641           
Total current assets                              7,826,174    3,920,410        
                                                                                
Non-current assets                                                              
Trade and other receivables                       56,711       42,323           
Investment in associate                           16,640       16,640           
Property, plant and equipment                     147,206      186,892          
Exploration expenditure                           7,153,905    2,923,147        
Total non-current assets                          7,374,462    3,169,002        
                                                                                
Total assets                                      15,200,636   7,089,412        

Current liabilities                                                             
Trade and other payables                          96,484       148,726          
Provisions                                        15,884       6,875            
Total current liabilities                         112,368      155,601          
                                                                                
Non-current liabilities                                                         
Provisions                                        47,562       27,387           
Total non-current liabilities                     47,562       27,387           
                                                                                
Total liabilities                                 159,930      182,988          
                                                                                
Net assets                                        15,040,706   6,906,424        
                                                                                
Equity                                                                          
Contributed equity                          4(a)  45,032,860   36,482,279       
Reserves                                          (364,960)    (281,859)        
Accumulated losses                                (29,627,194) (29,293,996)     
Total equity                                      15,040,706   6,906,424        
The above Consolidated Statement of Financial Position should be read in        
conjunction with the accompanying notes.                                        
Consolidated Statement of Changes in Equity                                     
For the half-year ended 30 June 2011                                            
                     Issued        Reserves      Accumulated    Total           
capital                     losses                         
                     $             $             $              $               
                                                                                
Balance at 1 January  36,482,279    (281,859)     (29,293,996)   6,906,424      
2011                                                                            
                                                                                
Loss for the period   -             -             (333,198)      (333,198)      
Other comprehensive   -             (833,101)     -              (833,101)      
income for the                                                                  
period                                                                          
Total comprehensive   -             (833,101)     (333,198)      (1,166,299)    
loss for the period                                                             
Transactions with                                                               
owners in their                                                                 
capacity as owners                                                              
Shares issued         9,556,931     -             -              9,556,931      
Share issue costs     (1,006,350)   -             -              (1,006,350)    
Options issued        -             750,000       -              750,000        
Balance at 30 June    45,032,860    (364,960)     (29,627,194)   15,040,706     
2011                                                                            

Balance at 1 January  35,356,374    (2,397,152)   (27,079,599)   5,879,623      
2010                                                                            
                                                                                
Loss for the period   -             -             (553,571)      (553,571)      
Other comprehensive   -             (87,363)      -              (87,363)       
income for the                                                                  
period                                                                          
Total comprehensive   -             (87,363)      (553,571)      (640,934)      
loss for the period                                                             
Transactions with                                                               
owners in their                                                                 
capacity as owners                                                              
Shares issued         1,041,670     -             -              1,041,670      
Share issue costs     (137,037)     -             -              (137,037)      
Options issued        -             27,573        -              27,572         
Balance at 30 June    36,261,007    (2,456,942)   (27,633,170)   6,170,895      
2010                                                                            
The above Consolidated Statement of Changes in Equity should be read in         
conjunction with the accompanying note                                          
Consolidated Statement of Cash Flows                                            
For the half-year ended 30 June 2011                                            
                                           Note  30 June 2011 30 June 2010      
                                                 $            $                 

Cash flows from operating activities                                            
Receipts from customers                           16,639       8,896            
Payments to suppliers and employees               (806,515)    (467,772)        
Interest received                                 70,328       18,959           
Net cash flows used in operating activities       (719,548)    (439,917)        
                                                                                
Cash flows from investing activities                                            
Payments for plant and equipment                  (10,727)     -                
Proceeds from sale of plant and equipment         36,393       6,671            
Proceeds from sale of discontinued                14,604       -                
operation                                                                       
Payments for exploration                          (176,830)    (20,215)         
Net cash flows used in investing activities       (136,560)    (13,544)         
                                                                                
Cash flows from financing activities                                            
Proceeds from issue of shares                     5,050,000    1,041,670        
Capital raising costs                             (256,350)    (137,037)        
Net cash from financing activities                4,793,650    904,633          
                                                                                
Net increase in cash and cash equivalents         3,937,542    451,172          
Cash and cash equivalents at beginning of         835,470      348,609          
period                                                                          
Effects of exchange rates on cash holdings        (6,142)      (75)             
in foreign currencies                                                           
Cash and cash equivalents at end of period  2     4,766,870    799,706          
The above Consolidated Statement of Cash Flows should be read in                
conjunction with the accompanying notes.                                        
Notes to the Financial Statements                                               
For the half-year ended 30 June 2011                                            
1.                                                                              
    Basis of preparation                                                        
The half-year consolidated financial statements are general purpose         
    financial statements prepared in accordance with the requirements of        
    the Corporations Act 2001, Australian Accounting Standard AASB 134:         
    Interim Financial Reporting, Australian Accounting Interpretations and      
other authoritative pronouncements of the Australian Accounting             
    Standards Board ("AASB").                                                   
    It is recommended that these financial statements be read in                
    conjunction with the annual financial report for the year ended 31          
December 2010 and any public announcements made by Tawana Resources NL      
    and its controlled entities during the half-year in accordance with         
    continuous disclosure requirements arising under the Corporations Act       
    2001.                                                                       
The half-year financial statements do not include full disclosures of       
    the type normally included in annual financial statements.                  
    The same accounting policies and methods of computation have been           
    followed in these interim financial statements as were applied in the       
most recent annual financial statements except for the adoption of the      
    following new and revised Accounting Standards, as noted below:             
    Reporting Basis and Conventions                                             
    The half-year financial statements have been prepared on an accruals        
basis and are based on historical costs modified by the revaluation of      
    selected non-current assets, financial assets and financial                 
    liabilities for which the fair value basis of accounting has been           
    applied.                                                                    
2.   Cash and cash equivalents                                                  
    For the purposes of the half-year statement of cash flows, cash and         
    cash equivalents comprised of the following:                                
                                            30 June       31 December           
2011          2010                  
                                            $             $                     
  Cash at bank and in hand                  4,746,870     815,470               
  Cash on short-term deposit                20,000        20,000                
4,766,870     835,470               
3.   Dividends                                                                  
    No dividend has been declared or paid during the half-year or the           
    previous corresponding period.                                              
The Company does not have any franking credits available for current        
    or future years as it is not in a tax paying position.                      
4.   Contributed equity                                                         
(a)  Movements in share capital                                                 
30 June       31 December       
                                                2011          2010              
                                                $             $                 
  Ordinary shares, fully paid                   45,032,860    36,482,279        

  Movement in ordinary shares on issue                                          
                                                Number        $                 
  Balance at beginning of period                601,455,755   36,482,279        
Shares issued                                 255,173,288   9,556,931         
  Share issue costs                             -             (1,006,350)       
  Balance at end of period                      856,629,043   45,032,860        
(b)  Share options                                                              
Exer-   Expiry     Balance at  Issued  Exercis  Expire  Balance at    
          cise    date       beginning   during  ed       d or    end of        
          price              of period   the     during   forfei  period        
                                         period  the      ted                   
period   during                
                                                          the                   
                                                          period                
                             Number      Number  Number   Number  Number        

  Listed  $0.10   1 Apr 11   13,240,053  -       -        (13,24  -             
  option                                                  0,053)                
  s                                                                             
Unlist  $0.35   30 Nov 11  1,420,000   -       -        -       1,420,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.10   17 Jan 14  6,750,000   -       -        -       6,750,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.07   18 Jun 12  4,000,000   -       -        -       4,000,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.10   17 Jan 13  6,000,000   -       -        -       6,000,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.07   17 Jan 13  6,750,000   -       -        -       6,750,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.01   23 Feb 13  50,000,000  -       -        -       50,000,000    
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.01   31 Jul 12  50,000,000  -       (30,000  -       20,000,000    
  ed                                             ,000)                          
  option                                                                        
  s                                                                             
Unlist  $0.01   30 Jul 13  50,000,000  -       -        -       50,000,000    
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.03   9 Sep 12   5,000,000   -       -        -       5,000,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.03   9 Sep 14   5,000,000   -       -        -       5,000,000     
  ed                                                                            
  option                                                                        
  s                                                                             
Unlist  $0.01   8 Mar 14   -           50,000  -        -       50,000,000    
  ed                                     ,000                                   
  option                                                                        
  s                                                                             

                             198,160,05  50,000  (30,000  (13,24  204,920,000   
                             3           ,000    ,000)    0,053)                
5.   Segment information                                                        
The Board of Directors has considered the operating segments standard       
    but does not currently have operating segments at this time.  As the        
    Company operates wholly in one business segment, being mineral              
    exploration and in one geographical segment, being Africa, the Company      
has not identified and therefore, not disclosed, any segment                
    information on the basis of the internal reports being provided to the      
    chief decision maker, which is the board as a whole.                        
6.   Contingent assets and liabilities                                          
The consolidated entity does not have any material contingent assets        
    or liabilities other than as disclosed in this report.                      
7.   Subsequent events                                                          
    On 13 July 2011, the Company announced it had secured binding               
exclusive rights to perform due diligence on a significant, highly          
    prospective Birimian land package in Sinoe County, South-Eastern            
    Liberia referred to as the Sinoe Project. The Sinoe Project area            
    covers 400 Km2 within arguably one of the most prospective Birimian         
gold structures currently being explored in Liberia; the Dugbe Shear.       
    On 16 August 2011, the Company announced the successful completion of       
    the due diligence and completion of the acquisition of the Sinoe            
    Project.                                                                    
The Company and Global Mineral Investments LLC (`GMI`), a private           
    Liberian company signed a binding Heads of Agreement for an option to       
    purchase outright the mineral exploration licence over the Sinoe            
    Project held by GMI. Under the terms of the agreement the Company has       
the option to purchase outright the mineral exploration licence after       
    meeting the following terms and conditions:                                 
    1.   US$10,000 Option payment to secure exclusivity - PAID                  
    2.   US$40,000 Execution payment on successful due diligence - PAID         
3.   US$50,000 Execution payment within 6 months of the commencement        
         of exploration or announcing to market a significant exploration       
         target                                                                 
    The Company is to fund exploration during the first year after which        
it has the right to purchase the licence outright or walk away              
    unencumbered. Should the Company choose to purchase the licence             
    outright it does so at the following terms:                                 
    1.   US$350,000 payment and 6 million shares in the Company                 
2.   US$1 million payment at announcement of 1 Moz JORC compliant           
         resource                                                               
    3.   Additional US$1 million payments for each additional 500 Koz JORC      
         compliant resource announced to market up to a maximum JORC            
compliant resource of 2.5 Moz                                          
    4.   US$5 million payment at pouring first gold from a mining               
         operation within the licence area.                                     
Independent Auditor`s review report to the members of                           
Tawana resources nl can be found on the company`s website.                      
Auditor`s Independence declaration under section                                
307c of the Corporations Act 2001 to the directors                              
Of Tawana Resources NL can be found on the company`s website.                   
For further information contact:                                                
Winton Willesee                                                                 
Joint Company Secretary                                                         
Tawana Resources NL                                                             
13 September 2011                                                               
Sponsor                                                                         
PricewaterhouseCoopers Corporate Finance (Pty) Ltd                              
Date: 13/09/2011 11:18:46 Supplied by www.sharenet.co.za                     
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