Annual Financial Report for Year End 30 June 2012

1 October 2012

Australian Securities Exchange

Level 4, 20 Bridge Street

SYDNEY NSW 2000

Via e-lodgement

ANNUAL REPORT FOR THE YEAR ENDED - 30 JUNE 2012

Please find attached extracts from the Company's Annual Report for the year
ended 30 June 2012, being the:

- Letter to Shareholders;

- Directors Report

- Statement of Comprehensive Income;

- Statement of Financial Position;

- Statement of Changes in Equity; and

- Statement of Cashflow.

A copy of the full Annual Report is available on the company's website:
www.rangeresources.com.au.

Yours faithfully

Peter Landau

Executive Director

All of the technical information, including information in relation
to reserves and resources, that is contained in this document, has been
reviewed internally by the Company's technical consultant, Mr Mark Patterson.
Mr Patterson is a geophysicist who is a suitably qualified person with over 25
years experience in assessing hydrocarbon reserves and has reviewed the
release and consents to the inclusion of the technical information.

LETTER TO SHAREHOLDERS

I don't think any shareholder would argue that Range has
experienced the highs and lows of both share price and operational
fluctuations as the Company delivered on its activity program for financial
year 2012 with mixed success. Our flagship Trinidad project has become the
primary focus of Range's operational objectives moving forward as our
development plans continue to meet and exceed expectations from a production
and reserve enhancement perspective.

The Company's commitment to its Trinidad operations with respect to
financial, drilling and human resource cannot be understated with circa 300
employees (and growing), six operating drilling rigs, a focus on local
training and employment and an aggressive development plan targeting to
achieve 8,000 bopd in 2014. The proposed changes to both existing and 'new
well' fiscal terms has further incentivized Range to increase its efforts to
ensure that it materially capitalizes on any proposed fiscal changes that may
arise.

From an exploration perspective, wildcat success was not
forthcoming with our wells in Puntland and Georgia. Whilst we are immensely
proud of our success in ensuring that the first two (of many) exploration
wells were completed in Puntland, the Board fully appreciates that unless the
results are reflected in discoveries (and ultimately share price growth) it is
of little comfort to shareholders in tough economic times. Range will continue
to fund and drive its Puntland interests either in its current form or through
a spin out vehicle which shareholders will participate in through a capital
distribution.

The key priorities in Georgia are to secure our strategic partner
in the Tkibuli CBM project and complete the current seismic program on both
blocks VIa and VIb. These two milestones should pave the way for the Company
to attract a farm in partner/s of note to assist with the exploration and
development efforts in Georgia.

The current sale of our Texas interests should be completed this
year allowing the Company to increase its exploration activity in Colombia
with at least one well and the 3D seismic program being completed on the
Putamayo blocks over the coming 12 months.

Range's work program through to 30 June 2013 comprises over 40
wells in Trinidad including up to four deeper Herrera exploration targets that
many shareholders are anxious to see drilled given their potential for
significant daily production rates.

I would like to thank my fellow Board members, employees and
consultants who all have made significant contributions over the past year.

On behalf of the Board of Directors, we sincerely thank
shareholders for their continued support and patience over the past year. We
are extremely encouraged by our projects over the next 12 months (and beyond)
and look forward to regularly updating shareholders on our progress.

___________________________

Mr P Landau

Executive Director

DIRECTORS

The names of the directors in office and at any time during, or
since the end of, the year are:

   Sir Samuel Jonah

   Mr Peter Landau

   Mr Marcus Edwards-Jones

   Mr Anthony Eastman

Directors have been in office since the start of the financial year
to the date of this report unless otherwise stated.

COMPANY SECRETARY

The following persons held the position of company secretary at the
end of the financial year:

   Mr Anthony Eastman

   Ms Jane Flegg

PRINCIPAL ACTIVITIES

The principal activity of the economic entity during the financial
year was hydrocarbon exploration and development within Somalia, Republic of
Georgia, Texas, Trinidad and Colombia.

The following significant changes in the nature of the principle
activity occurred during the financial year:

- The shares in SOCA were received at the beginning of the current
year thus finalising the acquisition of the 100% interest in Trinidad company
that holds three onshore oil and gas licenses and a fully operational drilling
subsidiary.

  - The Company has secured a 65% (possibility to increase to 75%)
    farm-in opportunity (350m of 3D seismic, 2 new wells and 1 well re-entry)
    on two highly prospective licenses in the on shore Putamayo basin in
    Southern Columbia. The Company will undertake a 350km2 3D seismic program
    across the two licences and drill one well per licence, as well as looking
    to re-enter a previously suspended well that had a significant historical
    reserve estimate.

OPERATING RESULTS

The consolidated loss of the economic entity for the financial year
after providing for income tax amounted to $9,049,907 (2011: loss of
$15,506,885)

DIVIDENDS PAID OR RECOMMENDED

The directors recommend that no dividend be paid for the year ended
30 June 2012, nor have any amounts been paid or declared by way of dividend
since the end of the previous financial year.

REVIEW OF OPERATIONS

- Commencement of the historic two well exploration program on the
Company's onshore Puntland assets with the first well (Shabeel 1) successfully
completed during the year and the second (Shabeel North) completed subsequent
to year end

- Commencement of the development drilling program on the Morne
  Diablo license in Trinidad which has seen three of the Company's six drilling
  rigs being operational during the year, with the fourth rig joining operations
  subsequent to year end. All wells drilled to date have been successful.

- Entered into an economic participation agreement that will see
  the Company earn a 65% economic interest (option to move to 75%) in Blocks
  PUT-6 and PUT-7 in the Putamyo Basin in southern Colombia.

- Entered into an agreement with the Puntland Government with
  respect to obtaining a 100% working interest in the prospective Nugaal Basin
  Offshore Block which comprises over 10,000km.

- Completed the first exploration well in Georgia - the Mukhiani
  well

Trinidad

During the year, the Company commenced its development drilling
program following the completion of the 100% acquisition in a Trinidad holding
company whose two wholly owned subsidiaries hold production licences for three
blocks in producing onshore oilfields in Trinidad (see Figure 1) together with
a local drilling company.

This development drilling program commenced on the Company's Morne
Diablo license and based on the early success of the shallow wells targeting
the Lower Forest trend, the Company has been expanding this trend with great
success, utilising the Company's three shallow capacity rigs. Encountered at a
depth of circa 1,000 ft, wells in the Lower Forest formation are capable of
adding 100-150 bopd initial production per well with the average initial
production to date from the successfully completed wells of circa 60 bopd.

The Lower Forest wells that have been drilled and tested to date
are showing sands congruent with the sands encountered in the QUN16 well that
was drilled and tested in 1942, which is located in the east of the Morne
Diablo licence, some 3,500 ft from the completed QUN127 well highlighted below
(on the edge of the red proposed drill locations per the Figure 3 below).
Given the encouraging similarities that the recently drilled wells have had to
the QUN16 well, the Company is looking at a 60+ well program for the Lower
Forest horizon, utilising the Company's shallow capacity rigs, that will look
to `bridge the gap' between the existing wells drilled to date and the QUN16
well.

During the current Morne Diablo drilling campaign, two wells were
drilled to target the deeper Upper Cruse formation (circa 2,000-2,500 ft) in
addition to the shallower Lower Forest formation (circa 1,000 ft) with
extremely pleasing results from the Upper Cruse formation. In addition to the
Upper Cruse formation that these wells are currently producing from, Range
also has the Lower Forest sands that can be perforated at a later date. Given
the early success of these wells in the deeper formation, the Company is
looking at the potential to focus a separate drilling program targeting the
Upper Cruse formation, in a similar way the early success on the Lower Forest
formation has been targeted.

This success of the current drilling program has seen production
from its three onshore Trinidad licenses exceed 1,000 bopd for the first time
since the acquisition of the assets in 2011.

Along with gains in production, the current drilling program will
also seek to add reserves to the rapidly-expanding Range portfolio in
Trinidad. Significant upward revisions to the Company's Trinidad P1 and P2
reserves are expected to be certified later this year.

As a compliment to the ongoing exploration and development of the
Morne Diablo and South Quarry Blocks, Range is moving rapidly ahead with its
secondary recovery projects on Morne Diablo through the expansion of the
existing pilot program, as well as on the Beach Marcelle Block. Applications
for environmental approval, expansion of technical and visualization
infrastructure in the new San Fernando office, and utilization of in-house
reservoir modelling software are all underway in support of the enhanced oil
recovery ("EOR") projects. An aggressive work program is expected to begin in
each area once reservoir simulation work is completed and all necessary
approvals are in hand.

In addition to the anticipated waterflood program forecast for the
Beach Marcelle license, the Company's technical team has also identified a
number of conventional well locations covering in-fill, step out and well
deepening opportunities. Range is in the process of finalising its technical
analysis and preparing a drilling program to pursue these conventional
drilling opportunities at Beach Marcelle. This work program will be in
addition to the waterflood program planned for the Beach Marcelle licence.

During the year the Company received the results of the independent Reserves
and Valuation Report as prepared by the Company's Reserves Auditors, Forest
Garb, which included the 490% Proved (1P) Reserve increase in Trinidad
following the completion of engineering work on the secondary recovery
potential of the Company's Beach Marcelle block.

Following the results of the report, the Company's attributable interest in
the net recoverable reserves on its Trinidad development and production assets
as classified in the two reports from Forest Garb.

Category        Oil (MMbbls)
                      *
Proved (P1)         15.4
Probable (P2)        2.2
Possible (P3)        2.0
Total Reserves      19.6
* which is net of government and overriding royalties and
represents Range's economic

Subsequent to year end, the Company's fourth drilling rig, with the
deepest capabilities of the Company's fleet spud the MD 248 well and is
targeting multiple horizons; the Lower Forest formation (circa 1,000 ft.), the
Upper Cruse formation (circa 2,000 ft.) and the Middle & Lower Cruse
formations (circa 4,000 ft. and 6,500 ft. respectively). Rig 8 is capable of
drilling to approximately 11,000 ft, a depth believed to be sufficient to test
the highly prospective Herrera exploration targets.

The MD248 well is the first well that will target development of
the Middle Cruse sands at 4,000 ft as well as explore the Lower Cruse
formation at 6,500 ft. Upon completion of the MD248 well, Rig 8 is then
scheduled to move on to drill the first of a series of wells that will
primarily target the prolific Herrera formation as an exploratory targets, in
conjunction with also looking to test multiple objectives as it penetrates
both the Forest and Cruse formation targets.

The Company is extremely pleased with its achievements in its first year of
operations in Trinidad and is confident that once all six of the Company's
drilling rigs are in operation, coupled with the commencement of the EOR
projects on both the Morne Diablo and Beach Marcelle licenses, this success
will continue and will accelerate increases in production and add to the
already significant reserve base.

Puntland

During the year, Range together with its joint venture partners
successfully spud the historic Shabeel 1 well in the Dharoor Valley, the first
in a two well exploration program and the first exploration well in Puntland
in over 25 years, with the Shabeel North well having been spud soon after the
completion of the Shabeel 1 well and was successfully completed subsequent to
the year-end, having reached a target depth of 3,945m, with the joint venture
having tested the upper Jessoma sands which only produced fresh water,
resulting in additional testing of the Jessoma sands on the Shabeel well not
being warranted.

Despite the non-commercial nature of the two wells the joint
venture partners were extremely encourage that all of the critical elements
exist for oil accumulations, namely a working petroleum system, good quality
reservoirs and thick seal rocks, and have entered into the next exploration
period in both the Nugaal and Dharoor Valley Production Sharing Contracts
which carry a commitment to drill one well in each block within an additional
3 year period. It is the intention that further seismic will also be acquired
in the Dharoor Valley to delineate new structural prospects for the upcoming
drilling campaign plus to hold discussions with the Puntland Government to
gain access regarding drill ready prospects in the Nugaal Valley block.

Puntland Offshore

During the year, Range entered into an agreement with the Puntland
Government with respect to obtaining a 100% working interest in the highly
prospective Nugaal Basin Offshore Block which is an extension of the onshore
Nugaal Region which has the potential for deltaic deposits from the Nugaal
Valley drainage system and comprises over 10,000km.

Range will commit to a 2D seismic program within the first three
years, with further 3D seismic and an exploration well to follow in the second
three year period. The agreement is subject to a formal Production Sharing
Agreement (PSA) which is currently being finalised and the receipt of all
necessary regulatory approvals with commercial terms being similar to the
current on-shore PSAs.

Texas

North Chapman Ranch

During the year the Company engaged independent petroleum consultants Forrest
A. Garb and Associates ("Forrest Garb") to complete a review of the North
Chapman Ranch reserves following the successful completion of the Smith #2 and
Albrecht wells that saw a significant reclassification of the previous
Possible (P3) reserves into the Proved (P1) and Probable (P2) categories.

Set out below is a comparison of the gross reserves (100% basis)
for the Company's North Chapman Ranch asset between the previous reserve
update in December 2011 and the current gross reserves update for June 2012.

Category               Oil              Natural Gas       Natural Gas Liquids
                     (MMbbls)              (Bcf)                (MMBbls)
               Dec `11 Jun `12 %age Dec `11 Jun `12 %age Dec `11 Jun `12  %age
                               Mvmt                 Mvmt                  Mvmt
Proved (P1)      5.1     8.4   +64%  64.3    106.0  +65%   5.0     8.0    +60%
Probable (P2)    3.7     4.4   +19%  48.6    56.7   +17%   3.8     4.4    +16%
Possible (P3)    9.9     5.0   -50%  129.6   64.8   -50%  10.1     5.1    -50%
Total Reserves  18.7    17.8         242.5   227.5        18.9    17.5

Set out below is the comparison between June 2012 and December 2011
of Range's attributable interest in the net reserves on the Company's North
Chapman Ranch asset which is net of government and overriding royalties and
represents Range's economic interests in its development and production assets
as classified in the report from Forest Garb.

Category               Oil              Natural Gas       Natural Gas Liquids
                     (MMbbls)              (Bcf)                (MMBbls)
               Dec `11 Jun `12 %age Dec `11 Jun `12 %age Dec `11 Jun `12  %age
                               Mvmt                 Mvmt                  Mvmt
Proved (P1)      0.7     1.1   +57%   7.6    11.7   +54%   0.7     1.1    +57%
Probable (P2)    0.5     0.6   +20%   5.5     6.4   +16%   0.5     0.6    +16%
Possible (P3)    1.3     0.7   -46%  14.6     7.3   -50%   1.3     0.7    -46%
Total Reserves   2.5     2.4         27.7    25.4          2.5     2.4

With the field having now been largely appraised and value demonstrated, the
Company is looking at the divestment of its North Chapman Ranch interests so
that it can focus its capital on higher value adding opportunities in its
portfolio. Any such divestiture decision will be based on market conditions
and the ability to achieve a sales price that appropriately reflects the value
of the project interest.

East Texas Cotton Valley Prospect

During the quarter, work continued on the Company's East Texas Cotton Valley
project area, where additional sections of the Ross 3H horizontal well were
recently fracture stimulated and are currently unloading frac fluids. With
approximately 5,000 barrels of load left to recover, the well has already
yielded early indications of oil saturation, consistent with strong oil shows
recorded during drilling.

If successful, the Ross 3H well is expected to form the basis of a new
horizontal development of the shallow oil reservoir within the Cotton Valley
formation. The project is considered to be analogous to the neighbouring
Clarksville Field, which is expected to ultimately produce more than 7 million
barrels of oil.

Colombia

During the year Range entered into an economic participation agreement with
Petro Caribbean Resources Limited, a private oil and gas company focussed on
the development of petroleum and natural gas reserves in Colombia ("PCR" the
official operator of the blocks), that will see the Company earn a 65%
economic interest (option to move to 75%) in Blocks PUT-6 and PUT-7 in return
for funding (on a cost recoverable basis) the commitments under the Production
Sharing Agreement ("PSA") with the National Hydrocarbons Agency of Colombia
("ANH"). This includes a 350km2 3D seismic program across the two blocks
followed by one exploration well in each block.

In addition to the completion of the PSA work commitments of the two blocks,
the joint venture partners will also (subject to ANH regulatory approval)
undertake an extensive review (and possible re-entry) of a Putumayo well that
was drilled and subsequently suspended in the mid 1980's on Block PUT-7. The
well had a historically reported estimate of 7.9 million barrels of
recoverable oil. However, in light of the low oil price (approximately $12-15
per barrel) and infrastructure constraints at the time, the well was suspended
and has not been re-assessed since.

The reservoir modelling and underlying data for this estimate have not yet
been reviewed in sufficient detail by Range or its consultants to provide a
reserve estimate compliant with the SPE reporting guidelines.+

Georgia

During the year, the Company, along with its joint venture
partners, successfully spudded the first exploration well - Mukhiani 1, on the
Vani 3 Prospect on Block VIa with a planned target depth of circa 3,500m. The
Mukhiani Well reached a total depth of circa 1,550m, and following the
analysis of the re-interpretation of the seismic supported by the Mukhiani-1
Vertical Seismic Profiling ("VSP"), results indicated that the well
encountered previously unrecognised faults that led to possible basement being
encountered far earlier than predicted.

New fault trap and stratigraphic trapping potential were also
identified in the vicinity of the well and based on these findings, the
Company is looking to obtain further seismic over Mukhiani during the 2D
seismic program which is currently underway.

The Company engaged new independent technical consultants, NTD
Energy during the year, to provide overall technical support with respect to
current operations. During the year, the Company along with its joint venture
partners and NTD performed a strategic review of the current operations in
Georgia and has embarked on a revised exploration and appraisal strategy for
Blocks VIa and VIb in Georgia.

The revised strategy will focus on low-cost, shallow appraisal
drilling of historically defined Contingent Resources around the
Tkibuli-Shaori ("Tkibuli") CBM field, which straddles the central sections of
the Company's two blocks.

Tkibuli has been estimated by Advanced Resources International to
contain Contingent Resources (mean) of approximately 0.4 trillion cubic feet
("tcf") of coal-bed methane ("CBM") gas (Range's attributable 40% interest is
0.16 tcf). Sand horizons have also been identified around the coal beds, which
could add additional, conventional hydrocarbon resources to those estimated
for CBM at Tkibuli alone.

By prioritising exploration around the productive coal seams, the
Company has the opportunity to make early discoveries, add proven reserves and
look to provide revenue potential from the Tkibuli CBM play within 18 months
from commencement of drilling, in conjunction with satisfying its Production
Sharing Agreement ("PSA") commitments.

Range and its partners also executed a conditional agreement with
the Georgian Industrial Group ("GIG") regarding the joint development of the
project and providing a commercial offtake for 100% of the gas produced.

Corporate

During the year the Company raised circa $62.8m through the
exercise of options, drawdown on its equity line of credit facility and
placement with institutional and sophisticated investors.

The Company also upgraded the trading if its American Depository
Receipts ("ADR's") from the OTC to the OTCQX International trading platform.
The ADR's trade under the code, RGRYY, with each ADR representing 40 ordinary
shares listed on the Australian Securities Exchange.

FINANCIAL POSITION

The net assets of the economic entity have increased by
$77,212,619, from $186,562,801 at 30 June 2011 to $263,775,420 in 2012. This
increase has largely resulted from the acquisitions and associated exploration
and development expenditure during the year.

The directors believe the economic entity is in a strong and stable
financial position to expand and grow its current operations.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

The following significant changes in the state of affairs of the
parent entity occurred during the financial year:

- The shares in SOCA were received at the beginning of the current year thus
finalising the acquisition of the 100% interest in Trinidad company that holds
three onshore oil and gas licenses and a fully operational drilling
subsidiary.

- The Company has secured 65% farm-in opportunity (350m of 3D
seismic, 2 new wells and 1 well re-entry) on two highly prospective licenses
in the onshore Putamayo basin in Southern Colombia. The Company will undertake
a 350km2 3D seismic program across the two licences and drill one well per
license, as well as looking to re-enter a previously suspended well that had a
significant historical reserve estimate.

- During the year the Company successfully raised circa $62.8m
through the exercise of options, drawdown on the Company's Equity Line of
Credit Facility and a placement.

EVENTS SUBSEQUENT TO REPORTING DATE

  - Production on the Trinidad assets broke through the 1,000 barrels
    of oil per day milestone in late July 2012 which was a significant
    milestone for the Company given the fact it was achieved with just three
    of the Company's six drilling rigs, with the fourth and deepest capacity
    rig spudding in early September.

  - The second (Shabeel North) of two historical exploration wells in
    Puntland was completed subsequent to the year-end, having reached a target
    depth of 3,945m, with the joint venture having tested the upper Jessoma
    sands which only produced fresh water, resulting in additional testing of
    the Jessoma sands on the Shabeel well not being warranted. Despite the
    non-commercial nature of the two wells the joint venture partners were
    extremely that all of the critical elements exist for oil accumulations,
    namely a working petroleum system, good quality reservoirs and thick seal
    rocks, and have entered into the next exploration period in both the
    Nugaal and Dharoor Valley Production Sharing Contracts which carry a
    commitment to drill one well in each block within an additional 3 year
    period. It is the intention that further seismic will also be acquired in
    the Dharoor Valley to delineate new structural prospects for the upcoming
    drilling campaign plus to hold discussions with the Puntland Government to
    gain access regarding drill ready prospects in the Nugaal Valley block.

FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES

To further improve the economic entity's profit and maximise
shareholders wealth, the Company is committed to further developing the
exploration potential of its Puntland and Georgian Exploration Projects and
invite interested parties into joint venture arrangements along with the
potential disposal of the Company's Texan interests. Following on from the
acquisition of the Trinidad assets, the Company is looking to accelerate the
development across all of the three licenses with regards to both conventional
and unconventional - waterflooding - means, leading to increases in production
and reserves. Range is also looking to consolidate its position on the South
American region through the farm in opportunity in the Putamayo basin in
Colombia as detailed above.

LIKELY DEVELOPMENTS

Other than information disclosed elsewhere in this annual report,
information on likely developments in the operations of the economic entity
and the expected results of those operations in future financial years has not
been included in this directors' report because the directors believe, on
reasonable grounds, that to include such information would be likely to result
in unreasonable prejudice to the economic entity.

ENVIRONMENTAL REGULATION

The economic entity's operations are not regulated by any
significant environmental regulation under a law of the Commonwealth or of a
state or territory.

The Directors have considered compliance with the National
Greenhouse and Energy Reporting Act 2007 which requires entities to report
annual greenhouse gas emissions and energy use. For the first measurement
period 1 July 2008 to 30 June 2009 and subsequent periods the directors have
assessed that there are no current reporting requirements, but may be required
to do so in the future.

       CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                     FOR THE YEAR ENDED
                        30 JUNE 2012
                                                  Note        Consolidated
                                                            2012         2011
                                                             $            $
 
Revenue from continuing operations
Revenue from sale of goods                          3     24,216,748    3,074,492
Other income                                        3      6,354,975      400,017
                                                          30,571,723    3,474,509
Expenses from continuing operations
Cost of sales                                      4a   (25,481,179)  (1,439,653)
Finance costs                                      4b    (2,738,846)     (55,595)
Depreciation - general                             4b       (45,347)    (195,839)
Directors fees                                      6      (529,998)    (474,996)
Corporate management services                              (940,000)    (995,000)
Consultants                                              (5,296,443)  (3,194,748)
Foreign exchange loss                                      (899,902)    (752,057)
Share-based payment                                      (1,449,052)  (1,826,250)
Marketing and public relations                             (507,855)    (256,741)
Costs associated with AIM listing                          (433,320)    (167,454)
Travel expenditure                                       (1,597,306)  (1,227,326)
Impairment loss on available for sale assets               (112,000)     (55,500)
Share of net loss on investment in associates              (394,596)            -
Acquisition option extension fees                                  -  (7,217,387)
Other expenses                                     4b    (1,801,803)  (1,122,848)
 
Loss before income tax expense from continuing
operations                                              (11,655,924) (15,506,885)
 
Income tax expense                                  5      2,606,017            -
Loss for the year attributable to equity holders
of Range
Resources Limited                                        (9,049,907) (15,506,885)
 
Other comprehensive income/(loss)
Revaluation of available for sale assets           27d       745,639          295
Exchange difference on translation of foreign      27c
operations                                               (2,800,410)            -
 
Other comprehensive income/(loss) for the year,
net of tax                                               (2,054,771)          295
 
Total comprehensive loss attributable to equity
holders of
Range Resources Limited                                 (11,104,678) (15,506,590)
 
Overall operations
EPS from continuing operations:
Basic loss per share (cents per share)              8         (0.46)       (1.18)
Diluted loss per share (cents per share)            8            n/a          n/a
 
The Company's potential ordinary shares were not considered dilutive (refer
Note 8).
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 2012
                                              Note        Consolidated
                                                        2012         2011
                                                         $            $
ASSETS
CURRENT ASSETS
Cash and cash equivalents                       9     10,410,363   17,359,870
Trade and other receivables                    10     11,192,719    3,002,395
Other current assets                           11        911,566      309,013
                                                      22,514,648   20,671,278
Non-current asset classified as held for sale  13      6,618,518            -
TOTAL CURRENT ASSETS                                  29,133,166   20,671,278
 
NON-CURRENT ASSETS
Goodwill                                       15     40,676,589            -
Available for sale financial assets            12      3,246,579      912,342
Property, plant and equipment                  16     12,419,393       19,883
Exploration & Evaluation Expenditure           17    115,424,733   87,809,879
Development Assets                             18     83,803,651    6,140,208
Prepayments for Investments                    19              -   54,426,730
Deferred tax asset                              5        342,578
Investments in Associates                      20     29,850,740    5,891,595
Non-Current Receivable                         21      4,762,762   12,122,177
 
TOTAL NON-CURRENT ASSETS                             290,527,025  167,322,814
 
TOTAL ASSETS                                         319,660,191  187,994,092
 
CURRENT LIABILITIES
Trade and other payables                       22      2,862,132    1,419,646
Current tax liabilities                                4,180,021            -
Provision                                      23        592,800       11,645
TOTAL CURRENT LIABILITIES                              7,634,953    1,431,291
 
NON-CURRENT LIABILITIES
Other non-current liabilities                  25b     3,472,993            -
Deferred tax liabilities                       24     44,146,582            -
Employee service benefit                       25a       630,243            -
TOTAL NON-CURRENT LIABILITIES                         48,249,818            -
 
TOTAL LIABILITIES                                     55,884,771    1,431,291
 
NET ASSETS                                           263,775,420  186,562,801
 
EQUITY
Contributed equity                             26    307,772,709  227,671,125
Reserves                                       27     24,869,329   18,708,387
Accumulated losses                                  (68,866,618) (59,816,711)
 
TOTAL EQUITY                                         263,775,420  186,562,801

The above consolidated statement of financial position should be read in
conjunction with the accompanying notes.

                       STATEMENTS OF CHANGES IN EQUITY

                              FOR THE YEAR ENDED

                                 30 JUNE 2012

Consolidated                                                      Foreign   Available for
                                                                 Currency       Sale
                                         Share-based   Option   Translation  Investment
                             Contributed   Payment    Premium     Reserve    Revaluation  Accumulated
                        Note   Equity      Reserve    Reserve                  Reserve       Losses    Total Equity
                                  $           $          $           $            $            $            $
 
Balance at 30 June 2010      137,327,825   4,667,099 11,811,411           -        12,250 (44,309,826)  109,508,759
Other comprehensive
income/(loss)                          -           -          -           -           295            -          295
Loss attributable to
members of the
company                                -           -          -           -             - (15,506,885) (15,506,885)
Total comprehensive
income and
expense for the year                   -           -          -           -           295 (15,506,885) (15,506,590)
Cost of share-based
payment                                -   2,217,332          -           -             -            -    2,217,332
Transactions with
owners in their
capacity as owners:
Issue of share capital   26   81,705,992           -          -           -             -            -   81,705,992
Exercise of options      26   13,612,661           -          -           -             -            -   13,612,661
Issue costs              26  (4,975,353)           -          -           -             -            -  (4,975,353)
Balance at 30 June 2011      227,671,125   6,884,431 11,811,411           -        12,545 (59,816,711)  186,562,801
Other comprehensive
income/(loss)                          -           -          - (2,800,410)       745,639            -  (2,054,771)
Loss attributable to
members of the
company                                -           -          -           -             -  (9,049,907)  (9,049,907)
Total comprehensive
income and
expense for the year                                            (2,800,410)       745,639  (9,049,907) (11,104,628)
Cost of share-based
payment                                -   7,482,078    733,635           -             -            -    8,215,713
Transactions with
owners in their
capacity as owners:
Issue of share capital   26   57,603,519           -          -           -             -            -   57,603,519
Exercise of options      26   26,211,929           -          -           -             -            -   26,211,929
Issue costs              26  (3,713,864)           -          -           -             -            -  (3,713,864)
Balance at 30 June 2012      307,772,709  14,366,509 12,545,046 (2,800,410)       758,184 (68,866,618)  263,775,420
 
     The above consolidated statement of changes in equity should be read
                 in conjunction with the accompanying notes.

                          STATEMENT OF CASH FLOWS
                               FOR YEAR ENDED
                                30 JUNE 2012
                                             Note        Consolidated
                                                       2012         2011
                                                        $            $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers                              21,443,971    2,098,870
Payments to suppliers and employees                (16,207,291)  (7,445,160)
Interest received                                       315,565      399,930
Interest & other finance costs                                -     (46,717)
 
Net cash inflow/(outflow) from operating      31
activities                                            5,552,245  (4,993,077)
 
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant & equipment            (12,213,747)            -
Payment for available for sale financial
assets                                              (2,424,368)    (830,865)
Sale of available for sale financial assets           2,523,500            -
Payment for development assets                     (12,970,410)  (1,162,644)
Payment for investments                            (12,231,565) (63,425,758)
Payments for exploration and evaluation
assets                                             (22,376,122)  (6,714,573)
Payments for acquisition of subsidiary, net
of cash acquired                                    (4,557,327)            -
Loans to external parties                           (6,228,075)            -
 
Net cash outflow from investing activities         (70,478,114) (72,133,840)
 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of equity                        62,786,097   90,534,113
Payment of equity issue costs                       (4,910,190)  (3,445,796)
Proceeds from borrowings                                      -            -
 
Net cash inflow from financing activities            57,875,907   87,088,317
 
Net increase / (decrease) in cash and cash
equivalents                                         (7,049,963)    9,961,400
Cash and cash equivalents at beginning of
financial year                                       17,359,870    7,398,470
Effect of exchange rate changes on the
balance of cash held in
foreign currencies                                      100,456            -
Cash and cash equivalents at end of            9
financial year                                       10,410,364   17,359,870


       The above consolidated statement of cash flows should be read in
                   conjunction with the accompanying notes.