acn 007 761 186 abn 88 007 761 186 and consolidated … · we invite shareholders and investors to...

ACN 007 761 186 ABN 88 007 761 186

AND CONSOLIDATED ENTITY

ANNUAL REPORT 2011

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Intermin Resources Ltd and Consolidated Entity 2011 Annual Report

CONTENTS

CORPORATE PARTICULARS ...................................................................................................................................... 1

MANAGING DIRECTOR‟S REVIEW .............................................................................................................................. 2

ACTIVITIES REPORT .................................................................................................................................................... 3

DIRECTORS' REPORT ............................................................................................................................................... 22

AUDITOR‟S INDEPENDENCE DECLARATION .......................................................................................................... 31

DIRECTORS‟ DECLARATION ..................................................................................................................................... 32

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011 ............ 33

CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2011...................... 34

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011 ...................... 35

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS ...................................... 37

SHAREHOLDER INFORMATION ................................................................................................................................ 66

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CORPORATE PARTICULARS

DIRECTORS Peter Hunt (Chairman) Michael Ruane Jon Brien JOINT COMPANY SECRETARIES Bianca Taveira Ross Paterson (appointed 17 February 2011) John Sendziuk (retired 27 January 2011) REGISTERED OFFICE 159 Stirling Highway NEDLANDS WA 6009 Telephone 08 9386 9534 Facsimile 08 9386 9473 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 2, Reserve Bank Building 45 St George‟s Terrace PERTH WA 6000 Telephone 08 9323 2000 Facsimile 08 9323 2033 AUDITORS BDO Audit (WA) Pty Ltd 38 Station Street SUBIACO WA 6008 Telephone 08 6382 4600 Facsimile 08 6382 4601 BANKERS National Australia Bank Ltd Suite 7, 51-53 Kewdale Road WELSHPOOL WA 6106 Telephone 08 9333 4106 Facsimile 08 9353 2207 SOLICITORS Fairweather Corporate Lawyers Ground Floor 1 Havelock Street WEST PERTH WA 6005 Telephone 08 9420 5050 Facsimile 08 9420 5001 STOCK EXCHANGE LISTING ASX Codes: IRC IRCO

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MANAGING DIRECTOR’S REVIEW

Dear Shareholder

The 2010-2011 year has been a patchy one for Intermin Resources with the highly volatile market and commodity prices prevailing during the period. Notwithstanding this situation, Intermin recorded a profit on operations of $5.8 million for the 2011 year following the sale of some non-core assets and an improvement in the carrying value of the Company‟s holding in Reward Minerals Ltd to $5.68 million at 30 June 2011. Core activities were somewhat restricted during 2010-2011 by a limitation on available capital at the mid-point of the year but resumed at full pace following asset disposals and a capital raising of $2.75 million in March 2011.

The main focus of Company activities during the year has been on gold exploration at the Menzies and Binduli Projects and tidy up of metallurgy/process route for the Julia Creek Vanadium-Molybdenum project located in Queensland.

At Binduli, the Company has outlined a significant gold resource in the Teal-Peyes Farm prospect area. The Teal resource comprises an oxide resource of approximately 494,000 tonnes grading ca 2.2g/t for 35,000 contained ounces of gold. A zone of primary mineralisation which lies below the oxide zone is estimated to contain approximately 950,000 tonnes grading 2.27g/t (69,000oz Au).

The Company submitted a Mining Proposal to the Department of Mines and Petroleum for approval to mine the Teal oxide mineralisation. However, the approval has been delayed by native title issues which are currently holding up the grant of Miscellaneous Licences required for ore haulage and mine water disposal from the Teal development. It is hoped that the issues will be resolved in the near future allowing the Teal approvals process and mining operation to proceed.

Expenditure on the Menzies farm-in joint venture with Regal Resources Ltd by year end had reached the $1.2 million threshold required for Intermin to earn an 80% interest in the JV project. The Company is currently discussing ongoing exploration plans and expenditure requirements with Regal as Regal is now required to contribute its 20% portion of future expenditures or dilute its interest in the project.

While no new high grade resources have been outlined by exploration to date, the Company regards the results obtained at Menzies in the past two years as very encouraging. Drilling at Lady Shenton has confirmed extension of the mineralised zone by some 500 metres north of the previous open pit workings albeit at relatively low gold grades. Further work is warranted in this area and is now in progress aimed at providing an updated gold resource estimate for the total Lady Shenton prospect area (current resource estimate 281,555 tonnes at 3.08g/t Au) by the end of 2011.

Vigorous exploration of several other Menzies prospects is also under way including at Yundaga, First Hit, Ballarat-Menzies and Selkirk prospects. The Company is optimistic that significant results will follow this work in the near future after narrowing the focus of exploration on the basis of a consistent structural model established for the Menzies area.

The aim of Intermin to become a significant gold producer remains the focus of the Company. With recent improvement in the gold price it is hoped that the time frame for achieving producer status can be brought forward to a near term scenario.

While development at the Julia Creek-Richmond Vanadium/Molybdenum project has been subdued during 2010-2011 the Company remains of the view that this project represents a world class development opportunity. Vanadium and Molybdenum prices remain at similar levels to those in the previous annual period with V2O5 at USD6.50/lb ($14.60/kg) and MoO3 USD9.70/lb ($21.70/kg) and at levels used by the Company in financial models for project development. Resource grade Julia Creek mineralisation contains approximately 5.0kg of V2O5 and 0.4kg of MoO3 per tonne of ore.

The Company has completed its testwork and assessment of the Julia Creek project to the scoping study and engineering design stage. These studies are in progress as are negotiations with a number of potential partners interested in development of the project subject to their internal financial and technical analyses which are in progress.

Late in the year, Intermin acquired a gold resource of ca 60,000oz located at Wiluna, WA and contained within previously roasted (Calcine) concentrates grading around 5.0g/t Au. Significant quantities of this type of material exist worldwide and represent gold resources of several million ounces.

The Company has developed an unconventional but relatively low cost method which recovers around 90% of the gold from such materials and is optimistic that it can develop a highly profitable business based on this type of resource at current gold prices using the Intermin technology.

For further information on the Company‟s progress and plans please refer to the Activities and Financial Reports later in this Annual Report. We invite shareholders and investors to attend the Annual General Meeting of the Company to be held later in the year for a comprehensive update.

I would again like to express my thanks to the Board, Staff, Contractors and Shareholders for their support and assistance during the year.

MICHAEL RUANE Managing Director

27 September 2011, Perth, WA

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ACTIVITIES REPORT

CORPORATE ACTIVITES Issued Capital

In March 2011, Intermin completed the issue of 15,838,385 listed ordinary fully paid shares pursuant to a 1:4 Rights Issue to shareholders at an issue price of 12 cents per share. The issue raised $2,480,000 after costs. At 30 June 2011, the Company had 114,805,787 fully paid ordinary shares and 22,503,073 options on issue. The listed options have an exercise price of 18 cents and expiry date of 31 May 2012. Pursuant to an agreement to acquire the Wiluna Calcine Project to be completed post 30 June 2011, the Company is required to issue 2,000,000 ordinary fully paid shares and 2,000,000 options to Orex Mining Pty Ltd. The options will have the same exercise price and expiry date as the currently listed options. Reward Minerals Ltd

At year end Intermin held 6,311,943 fully paid shares in Reward Minerals Ltd (RWD) representing 8.65% of the issued capital of RWD. The holding had a value of $5,680,749. Jinka Minerals Ltd

At the commencement of the year, Intermin held 10,490,575 ordinary fully paid shares, 1,911,954 July 2011 expiry options and 8,578,621 June 2013 expiry options in Jinka Minerals Ltd. Late in the year a takeover offer was received for the Jinka shares and options by Kentor Gold Ltd. The Kentor offer was accepted by Intermin and completed in May 2011 realising the sum of $2,943,872. Regal Resources Ltd (RER)

During the year, Intermin sold its residual holding of 9,347,631 shares in Regal Resources Ltd. The Company is continuing exploration in Joint Venture with Regal Resources at the Menzies Gold Project. ActivEx Limited (AIV)

At 30 June 2011, Intermin retained its 6,400,625 ordinary fully paid shares in ASX listed explorer ActivEx Limited. Intermin also held 2,472,970 listed (AIVO) options in ActivEx. At 30 June 2011, the holding was valued at $288,028 for AIV and $2,473 for AIVO. Xtract Energy plc (XTR)

Intermin disposed of its remaining shareholding in XTR (13,000,000 shares) during the year receiving $772,454 on the sale. Heartlink Limited (HRK)

Intermin Resources Ltd holds 3,051,711 shares in Heartlink Limited (14.1%) – an unlisted Public Company engaged in medical research activities. Heartlink is continuing to advance the “Heartlink” technology which provides a means of psychiatric diagnosis based on the circadian heartbeat patterns of subjects. Heartlink is also continuing development of certain flavanoid compounds as therapeutics for treatment of cancer and certain other hormonal disorders. Dr Michael Ruane is a Director of Heartlink Limited, representing Intermin‟s interest in HRK.

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ACTIVITIES REPORT

EXPLORATION AND DEVELOPMENT ACTIVITIES Overview

Intermin Resources Ltd has direct interests in six separate resource projects all of which are in Australia. Location of the projects is shown in Figure 1. The status of the individual projects is outlined below.

Figure 1 Intermin Resources Ltd – Exploration Projects 2011

Binduli Gold Project

The Binduli North Project comprises 4 granted Mining Leases, 14 granted Prospecting Licences and 1 granted Exploration Licence located between 5 and 15km North West of Kalgoorlie, Western Australia. Total area of the tenements held is 2,606 hectares. Intermin holds 100% interest in all of the tenements except Exploration Licence E26/127 (32km

2) in which Banyan Pty Ltd holds a 15% interest free carried to mining stage. Tenements and geology of

the Binduli North Project area are shown in Figure 2.

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ACTIVITIES REPORT Binduli Gold Project (continued)

Figure 2 Binduli North Project – Tenements and Geology

During the 2010-2011 annual period, Intermin completed 14 holes for 2,001 metres of Reverse Circulation (RC) drilling and 30 holes for 1,569 metres of Air Core (AC) drilling at the Teal, Crake and Coot prospects which make up part of the Binduli North project. An additional 1,645 metres of AC drilling was completed aimed at sterilizing the areas designated for waste stockpiles which will arise from the proposed mining of the Teal gold resource. The RC drilling at Teal was designed to the extent and tenor of primary gold mineralisation at depths well below those previously tested. Difficulties were encountered with the program due to rig failures and significant water inflows in several holes. Sample recovery was problematical casting some doubt as to the validity of the results obtained. Encouraging results were obtained in holes IRBT11001-11003 in the northern sector of Teal but generally the 2011 results were somewhat disappointing. Results of the 2011 RC drilling are shown in Table 1.

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Table 1

Binduli North Project – Teal Prospect Reverse Circulation Drilling

Drill Hole Information and Gold Intersections

Further exploration is warranted in the vicinity of Teal holes IRBT11002-11003 to assess ore body structure and the potential for extensions to the higher grade mineralisation found in these holes. Four or five deep (350m) core holes are planned for this purpose but availability has delayed execution of the program proposed until October 2011. The AC drilling at Teal was conducted within the proposed pit area to improve the confidence level of gold distribution at Teal – particularly along strike and between zones covered by earlier drilling programs. Results of the program conducted in March 2011 are provided in Table 2.

Hole ID North East Depth Dip Azimuth From

metres Interval metres

AU g/t

IRBT11001 345045 6603935 240 60 243 137 2 0.92

145 1 1.09

161 7 1.37

including 162 2 1.86


IRBT11002 344880 6603814 221 60 70 83 5 1.54

including 85 2 3.25

92 8 1.69

including 94 4 3.28

134 4 0.54

159 11 2.28


188 14 2.04



IRBT11003 345050 6603805 251 60 243 188 16 0.46



204 11 4.52


240 4 0.77

IRBT11004 345104 6603720 241 60 243 160 4 2.12


202 1 0.91

207 5 1.09

228 4 1.80

IRBT11005 344923 6603670 198 60 63 56 4 0.54

155 4 1.11

161 1 1.58

187 4 1.97

IRBT11007 345155 6603544 150 60 243 44 4 1.25

including 46 2 2.96

76 4 1.27

146 2 5.27

IRBT11008 345164 6603480 140 60 243 48 4 0.63

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The new data has improved the confidence in the Teal resource model and the Company‟s plans to seek approval to mine the resource. A number of additional RC and AC holes remain to be completed prior to recalculation of the Teal gold resource and update of the mining model/pit optimization. Current pit optimisation provides for mining of 271,000 tonnes of ore grading 2.63g/t for recovered gold of ca 22,888 ounces.

Table 2 Teal – Aircore Drilling – March 2011

Significant Gold Intercepts



Au g/t

ITA11001 6603824 344904 40 -90 0 30 1 2.96

35 3 0.93

ITA11002 6603826 344914 48 -90 0 32 3 2.79

ITA11003 6603830 344921 52 -90 0 34 2 6.61

ITA11004 6603833 344928 48 -90 0 36 2 2.75

44 4 1.89

ITA11005 6603839 344935 46 -90 0 36 2 5.99

ITA11006 6603804 344928 42 -90 0 34 1 14.14

ITA11007 6603810 344944 55 -90 0 37 2 3.18

ITA11008 6603797 344955 57 -90 0 38 2 12.78

40 4 1.23

ITA11009 6603756 344943 47 -90 0 33 3 1.53

ITA11010 6603759 344951 50 -90 0 36 1 8.11

ITA11011 6603762 344959 46 -90 0 35 2 16.56

40 5 13.60

ITA11012 6603764 344967 52 -90 0 37 3 4.6

48 4 0.85

ITA11013 6603732 344958 54 -90 0 36 3 5.43

ITA11014 6603737 344968 52 -90 0 37 1 3.95

46 6 1.44

ITA11015 6603741 344977 59 -90 0 38 3 4.78

47 2 0.83

53 5 0.72

ITA11016 6603723 344978 56 -90 0 39 3 7.52

49 7 1.04

ITA11017 6603688 344998 50 -90 0 38 4 6.80

44 5 2.19

ITA11019 6603616 345035 58 -90 0 45 2 3.91

49 6 1.93

ITA11020 6603620 345043 61 -90 0 47 2 3.32

54 2 4.36

ITA11021 6603622 345051 62 -90 0 43 3 1.77

61 1 1.33

ITA11022 6603586 345064 59 -90 0 41 2 4.40

ITA11023 6603592 345074 59 -90 0 41 3 5.93

ITA11024 6603595 345084 59 -90 0 40 4 0.79

44 4 7.27

ITA11025 6603600 345092 59 -90 0 42 2 6.02

ITA11026 6603628 345057 50 -90 0 38 1 9.66

ITA11027 6603431 345200 55 -90 0 38 3 1.67

ITA11028 6603480 345173 50 -90 0 40 4 0.47

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ACTIVITIES REPORT Binduli Gold Project (continued) Teal Mining Project – Binduli North

During 2011 the Company has continued worked towards the development of the Teal Gold Project.

Heritage surveys, flora and fauna surveys, mine planning and discussions with potential toll milling operators/partners has taken place and a Mining Proposal submitted to the Mines Department. An application for discharge of saline ground waters has been made to the Department of Conservation and the Company is waiting for final approval of a Miscellaneous Licence for the pipeline route.

Resource estimation has defined a total resource of 1.44mt @ 2.25 g/t Au (uncut) and 1.44mt @ 1.98 g/t Au (20 g/t Au cut) for a total of approximately 104,000 ounces of gold at Teal based on uncut grade or 92,000 ounces based on the 20g upper cut.

Table 3 Teal Resource Estimate

Tonnes Grade A Ounces A Grade B Ounces B

Measured Oxide 494,280 2.22 35,278 1.97 31,306

Indicated Primary 947,375 2.27 69,140 1.98 60,307

Total 1,441,655 2.25 104,418 1.98 91,613

In Pit Probable Reserve ($1200/oz)

Probable 270,686 2.97 25,847 2.63 22,888

A Uncut Grade g/t Au B Cut Grade - Upper Cut 20g/t Au

Recent pit optimisation of the Teal resource suggests that a relatively low risk starter pit accessing principally soft oxide supergene mineralisation could be established and a pit design has been developed based on this scenario. Total mineralisation within the Stage 1 starter pit was estimated at 271,000 tonnes @ 2.63 g/t Au for a total of 22,888 ounces.

Metallurgical testwork has established that the upper supergene oxide zone is free milling, with recoveries of +95% returned from testwork completed, while portions of the fresh material has a refractory component. Further work to fully categorise the expected metallurgical recoveries for the deeper mineralisation is ongoing.

The free dig nature of the vast majority of the Stage 1 starter pit should ensure low mining costs and efficient productivity. The Company is yet to finalise a toll milling arrangement, but notes a number of options within 35 kilometres of the Teal deposit.

Additional potential is recognised to the south of Teal at the Peyes Farm prospect and additional drilling is planned.

Figure 3 Teal Gold Project: Looking North at Teal Stage 1 Starter Pit and Block Model

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ACTIVITIES REPORT Binduli Gold Project (continued) Crake-Coot Prospects – Binduli North

Significant gold intercepts were also obtained in the RC drilling of the Crake-Coot prospects which are located approximately 7km south west of the Teal resource. The Crake-Coot prospects lie immediately north of the Janet Ivy gold resource which Intermin discovered but sold to Delta Gold NL in 2001. The Janet Ivy resource owned and currently being mined by Paddington Gold Pty Ltd (Norton Gold Fields Ltd) is estimated to contain approximately 229,000 ounces of gold (5.79 Mt grading 1.23 g/t – Indicated and Inferred resources). The geology of the Crake and Coot prospects is considered to be similar to Janet Ivy comprising felsic porphyry, felsic tuffs, amphibolites and porphyritic latites. Results of the first six holes drilled at the Crake/Coot prospect area in 2011 are shown in Table 4. An additional 13 holes (930 metres) have also been drilled to follow up the results obtained in holes IRBC11001-006 and in earlier drilling but results were not available at the time of reporting.

Table 4 Binduli North Project – Crake-Coot Prospects

Reverse Circulation Drilling 2011 Drill Hole Information and Gold Intersections – One Metre Split Assays

* Hole ended in mineralisation



AU g/t

CRAKE

IRBC11001 6595959 344673 160 -60 50 84 4 0.47

103 2 0.59

109 3 1.15

115 7 1.04

124 1 2.18

127 1 1.12

IRBC11002 6596227 344722 50 -90 0 28 2 2.50

IRBC11003 6596077 344746 90 -60 50 32 4 0.50

60 4 0.68

70 2 0.57

79 4 4.20

IRBC11004 6596007 344603 130 -60 50 50 2 0.70

58 1 1.47

87 2 2.08

124* 6 0.67

IRBC11005 6596003 344971 60 -90 0 7 4 1.20

38 13 0.85

COOT

IRBC11006 6595669 344192 70 -60 50 13 2 1.14

23 9 1.61

including 23 2 4.52

46 3 1.22

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ACTIVITIES REPORT Menzies Gold Project

In December 2008 fully owned subsidiary Black Mountain Gold Ltd (BMG) entered a Farm-In agreement with Regal Resources Ltd (Regal) whereby BMG was entitled to earn an 80% interest in the Menzies Gold Project tenements owned by Regal by expenditure of $1.2 million over a three year period. Gold mining has occurred at Menzies since its discovery in 1893. Total gold production from the tenements subject of the Farm-In Joint Venture agreement has been approximately 800,000 ounces. A total of 902,000 tonnes of ore at 22.5g/t (654,000 ounces) was mined from underground workings and 1,683,000 tonnes grading 2.64g/t (142,700 ounces) was recovered via open pit mining during the period 1990 – 1996. Historically the Menzies goldfield has been one of the highest grade Western Australian goldfields with output in excess of 1,000,000 ounces. The BMG-Regal Farm-In at Menzies involves six granted Mining Leases of 2,988 hectares and four Prospecting Licence applications of 588 hectares. The tenements are contiguous, covering 18km of strike over the historic Menzies goldfield (Figure 4). Gold resources existing within the tenements were estimated by Regal Resources Ltd prior to the BMG Farm-In as follows:- Open Pit – Measured, Indicated and Inferred Resources 2.1 million tonnes @ 2.44g/t for 164,000 ounces of contained gold Underground – Indicated and Inferred Resources 178,000 tonnes @ 17.9g/t for 102,700 ounces of contained gold Black Mountain Gold has also concluded a Farm-In Agreement to earn up to 70% interest in granted Prospecting Licences 29/1862-1865 at Menzies (Yundaga). These licences, covering 492 hectares, immediately adjoin Mining Lease 29/184 (Regal) which covers the former Yundaga Mining Centre (see Figure 4). Prospecting Licences 29/1862-1865 cover the former Ballarat-Menzies gold workings. Drilling of these workings has provided encouraging gold intersections and exploration of this prospect is continuing. Intermin applied for a number of new tenements in its own right at Menzies during the year. These are also shown in Figure 4 and in the Company‟s revised list of tenements as at 30 June 2011 (Table 8). The additions bring the total tenement area controlled by the Company in the Menzies domain to approximately 71.21km

2.

Figure 4 Menzies Project Tenement Area

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ACTIVITIES REPORT Menzies Gold Project (continued)

Table 5

Menzies Gold Project – Gold Intercepts 2010 to 2011



AU g/t

LADY SHENTON NORTH

MZRC10110 6712629 308998 50 -60 53 16 5 1.15

MZRC10111 6712580 309035 50 -60 53 48* 2 0.53

MZRC10112 6712564 309047 50 -60 53 44 4 0.24

MZRC10113 6712634 308965 60 -60 53 32 3 0.49

50 3 11.59

MZRC10114 6712643 308965 50 -60 53 23 5 0.74

37 2 3.88

MZRC11115 6712784 308810 60 -60 53 20 5 1.85

49 1 0.74

54 1 0.87

MZRC11116 6712768 308796 78 -60 53 34 1 1.18

37 3 1.27

60 3 0.71

65 7 0.52

MZRC11117 6712747 308803 84 -60 53 39 3 2.44

51 2 3.64

65 7 0.56

MZRC11118 6712683 308819 96 -60 53 65 2 2.70

MZRC11119 6712654 308876 90 -60 53 53 3 2.06

62 1 2.15

67 4 0.96

MZRC11120 6712704 308815 90 -60 53 48 4 2.98

73 4 2.41

MZRC11121 6712695 308863 66 -60 53 42 4 1.05

MZRC11122 6712686 308877 66 -60 53 37 4 4.12

MZRC11123 6712752 308773 96 -60 53 50 2 1.28

68 2 1.50

76 2 0.58

79 2 0.81

84 3 0.58

MZRC11124 6712723 308802 90 -60 53 50 2 5.06

MZRC11125 6712730 308845 60 -60 53 29 9 2.24

inc 32 2 6.04

47 5 1.28

MZRC11126 6712675 308864 90 -60 53 48 4 0.85 For

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ACTIVITIES REPORT

Menzies Gold Project (continued)

Table 5 (continued) Menzies Gold Project – Gold Intercepts 2010 to 2011

During the 2010-2011 annual period, Intermin completed 22 Reverse Circulation (RC) drill holes for 1,660 metres on the Regal Resources Ltd (RER) Joint Venture area and three RC holes for 312 metres on the Ballarat-Menzies JV area. Results of this drilling are shown in Table 5. An additional 21 RC holes (2,073 metres) were completed in July 2011 but assay data was not available for these holes until after the reporting date. Results obtained in the Menzies drilling continue to provide encouragement for establishment of additional gold resources at the Menzies Project. Drilling at Lady Shenton (RER JV) has extended the zone of known gold mineralisation – albeit relatively low grade – to approximately 500 metres north of the former Lady Shenton open pit. Results are highlighted in the Figure 5 longitudinal section for Lady Shenton.

Figure 5 Longitudinal Section for Lady Shenton



AU g/t

FLYING FISH

MZRC11129 6712965 309025 80 -60 53 68 2 1.55

MZRC11131 6713250 308937 90 -60 53 25 3 0.69

48 2 3.02

60 3 2.30

MZRC11132 6713280 308941 84 -60 53 25 3 2.22

BADEN POWELL

MZRC11135 6711663 309903 90 -60 53 62 7 6.09

inc 63 3 12.60

MZRC11136 6711652 309907 90 -60 53 87 3 1.05

BALLARAT MENZIES

MZRC11137 6709762 311092 120 -60 49 68 2 3.99

74 1 1.71

MZRC11138 6709713 311122 96 -60 53 33 3 3.05

68 1 7.15

74 4 3.11

79 5 1.59

MZRC11139 6709721 311101 96 -60 53 80 2 0.82

89 1 0.83

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ACTIVITIES REPORT Menzies Gold Project (continued)

Drilling at the Ballarat-Menzies prospect (Van Blitterswyk JV) is difficult for logistical and structural reasons. However, exploration of this prospect continues to provide significant gold intercepts and the mineralisation remains open to the south. Further exploration is in progress on both Lady Shenton and Ballarat-Menzies projects. Work on a number of other prospects within the Company‟s Menzies Tenements is planned. This exploration includes RC drilling at the First Hit, Selkirk and Yundaga areas early in the forthcoming annual period. The Company is planning to upgrade the Menzies gold resource base in the near future on the basis of its new exploration data and an improved gold price. Calcine Tailings Project

In June 2011, Intermin Resources Ltd agreed to acquire the Wiluna Calcine Tailings stockpile from Apex Minerals NL (ASX: AXM) and Orex Mining Pty Ltd. The Wiluna Calcine stockpile is estimated to contain over 370,000 tonnes of material grading ca 5.0g/t of gold (59,600 ounces). The Calcines are the residual product from cyanidation of roasted sulfide concentrates produced prior to WWII from Wiluna refractory gold ores. Intermin plans to relocate the tailings in the near future to a dedicated “Processing Area” and seek the necessary approvals for treatment and gold recovery from the Calcine tailings at a processing facility to be constructed by the Company within the Processing Area. Consideration for acquisition of the Calcine Tailings from Apex Minerals NL is the sum of $20,000 plus a royalty of $4 per tonne of material moved from its current location of which the sum of $900,000 was paid to Apex as a prepayment of royalty upon execution of the purchase agreement. The Company also paid an introduction fee to private company, Orex Mining Pty Ltd for arranging the sale and reimbursement of costs incurred by Orex in establishing resource and metallurgical parameters relating to the project. Orex received 2 million fully paid Intermin shares and 2 million Intermin options (exercisable at 18 cents by 31 May 2012). Intermin believes that reprocessing of remnant calcine tailings is a project of significant potential based on technical information provided by Orex and confirmed by the Company during its due diligence study. Intermin testwork has demonstrated that over 90% of the gold contained in the Wiluna material can be recovered via the Company‟s unconventional but relatively low cost process route. Substantial resources of this type of material exist worldwide representing a significant gold inventory. Technology developed by Orex and Intermin for treatment of calcine tailings offers excellent potential for profitable operations based on a previously discarded material. Intermin is currently seeking Statutory Permits for processing of the Wiluna resource and continuing development of process parameters. A pilot plant is currently under construction. Nanadie Well Project

The Nanadie Well prospect is located approximately 100km south east of Meekatharra in the Murchison Mineral Field of WA and covers an area of 145km

2.

Previously, the Company retained the right to acquire an 80% interest in the project via expenditure on a farm-in Joint Venture with the tenement holders. Intermin has expended $1,000,000 on the project to date and thereby earned a 51% interest in the property. Recently, the Company reached agreement in principle to acquire the remaining interest in the Nanadie Well project taking its interest to 100%. The acquisition requires payment of $205,800 in cash plus an ongoing royalty of 0.735% of revenue received copper products sold and 0.49% of revenue received for any other mineral commodity produced from the project tenements. Previous work by Intermin at Nanadie Well outlined a large (1,000m x 100m) copper-gold system but with overall grades sub-economic until recent increases in commodity prices. Examples of copper-gold intercepts obtained at in earlier drilling at Nanadie Well are shown in Table 6.

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ACTIVITIES REPORT Nanadie Well Project (continued)

The holes are widely spaced and in some cases appear to be off target.

Table 6

Significant Intercepts – Nanadie Well Prospect

Hole Number

Easting (m)

Northing (m)

Dip °

Azimuth °

Depth (m)

From (m)

To (m)

Interval (m)

Cu %

Au g/t

NRC04011 692938 6994801 -60 270 234 208 212 4 1.06 0.15

NRC04012 692898 6994899 -60 270 204 142 143 1 5.60 1.10

NRC04013 692934 6994701 -60 270 216 108 111 3 1.15 0.22

159 163 4 1.06 0.22

NRC05017 692963 6994401 -60 270 172 125 130 5 1.57 0.40

NRC05018 692927 6994199 -60 270 136 42 44 2 1.65 0.15

93 97 4 3.30 0.43

NRC05019 692902 6994604 -60 270 176 33 36 3 0.91 0.29

109 114 5 1.15 0.28

123 131 8 2.25 0.56

NRC05020 692900 6994700 -60 270 154 33 37 4 1.25 0.34

38 52 14 2.16 0.55

inc 39 41 2 6.96 1.93

inc 49 50 1 3.44 0.46

60 72 12 1.34 0.42

NRC05024 692858 6994200 -60 90 145 96 123 27 0.56 0.16

inc 96 99 3 2.18 0.61

NRC05025 692809 6994200 -60 90 198 88 92 4 1.10 0.32

NRC05026 692826 6994400 -60 90 150 61 67 6 1.04 0.43

68 72 4 1.33 0.34

NRC05027 692810 6994650 -60 90 200 92 94 2 2.09 0.67

161 164 3 1.22 0.11

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ACTIVITIES REPORT Nanadie Well Project (continued)

Wide low grade intercepts which include those in Table 6 attest to the size potential of the mineralised system. These include: Hole 05018 – 50m @ 0.64% Cu and 0.16 g/t Au from 79m; Hole 05024 – 58m @ 0.37% Cu and 0.11 g/t Au from 75m; Hole 05025 – 112m @ 0.38% Cu and 0.14 g/t Au from 44m; Hole 05027 – 32m @ 0.43% Cu and 0.14 g/t Au from 88m. Recent airborne EM and ground magnetic surveys have identified many targets which warrant follow up with soil/bedrock geochemistry. The Company will commence this work and a new round of RC drilling immediately approvals are in place. Julia Creek Vanadium-Molybdenum Project

The Company has 100% interest in 20 Exploration Licences (Mineral) covering 4,055 km² of outcropping Vanadium-Molybdenum mineralisation near Julia Creek and Richmond in North West Queensland. The Company‟s tenements cover large areas of Cretaceous Toolebuc Formation. The very large Vanadium deposits existing at or near surface have resulted from weathering of the calcareous oil shale between surface and 15 metres vertical depth. Below this depth the Toolebuc oil shale is fresh and contains organic (kerogen) content capable of generating 60+ litres of oil per tonne of shale. Both the weathered and fresh oil shale horizons contain significant vanadium, molybdenum, nickel and copper metal values. Plans of the Company‟s tenement holdings in the Julia Creek and Richmond areas of Queensland are shown in Figure 6. Intermin has conducted numerous programmes of Air Core and Diamond Core drilling over several years in establishing the very large Vanadium-Molybdenum (V/Mo) resources now controlled by the Company. Resource estimates are tabulated below. These resources have been defined in only a small portion of the area known to host V/Mo mineralisation in the region (see Figure 6), hence much larger resources are believed to be available should commercial development proceed.

Table 7 Resource Data – Julia Creek – Richmond

SOFT OXIDE MINERALISATION

Category Tonnage (Mt) % V2O5 g/t MoO3

Measured (1) 204 0.40 300

Indicated (1) 1,032 0.40 311

Indicated (2) 2,890 0.35 290

Indicated (3*) 410 0.44 332

*including 87.7 0.55 384

Inferred (1) 772 0.39 385

Inferred (2) 0 0 0

TOTAL 5,308 0.375 312

Notes: (1) St Elmo Western tenement block Resource/Grade figures. (2) Alisona Eastern tenement block Resource/Grade figures. (3) Lilyvale Eastern tenement block. During 2010, Intermin completed 90 drill holes for 2,730 metres of Air Core drilling at Lilyvale Prospect 50km north west of Richmond. The program was designed to infill the earlier wide spaced drilling which provided the resource data in Table 7 and to provide samples of V/Mo mineralisation from the transition and fresh oil shale horizons down dip from the oxide zone previously tested.

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Activities Report Julia Creek Vanadium-Molybdenum Project (continued)

Results of the drilling confirm the tenor and width of the Lilyvale mineralisation established in earlier drilling programs including the relatively high grade (0.5% + V2O5) resource zone west of the Lilyvale homestead. Typical cross sections of mineralisation in the Julia Creek and Richmond sectors are shown Figures 7A and 7B.

Figure 6

Julia Creek Project – Tenement and Drill Hole Location Plan

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Activities Report Figure 7A

Julia Creek Project - Lindfield Prospect Area Typical Drill Hole Section - Showing Average Metal Grades

Figure 7B Julia Creek Project - Lilyvale Prospect Area

Typical Drill Hole Section - Showing Average Metal Grades

Metallurgical test work by Intermin has indicated high recovery of vanadium, molybdenum, nickel and copper can be achieved from Lilyvale mineralisation at relatively low cost by the Company‟s proprietary processes. Process flow sheets and metallurgical parameters have been established and a feasibility study for an annual output of 10,000 tonnes of V2O5 based on Lilyvale resource is in progress. The Company has recently provided project information and technical analysis to several potential Joint Venture partners for their assessment of the project.

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Activities Report White Range Exploration

At the closure of the mining operations by White Range Gold NL in 1992, the resource base was reported by the Administrator as 160,000 tonnes at 3.2g/t Au of “Proved Ore Reserves” plus 180,000 tonnes at 3.0g/t Au of “Measured Resources” for a total of 340,000 tonnes at 3.1g/t (33,800 oz). These resources remain untouched since that time.

Most of the mineralised zones mined or drilled at White Range remain open at depth and along strike and are worthy of further exploration. However, in view of its major commitments to the Julia Creek Vanadium-Molybdenum project and gold projects in Western Australia, the Company is seeking a JV partner or to divest its interest in the White Range tenements. Lehmans Project

This project lies within the Yandal greenstone belt and is located approximately 45km south of Leinster. The tenements consist of thirteen Mining Leases and three Prospecting Licences. Lionore Australia (Wildara) NL (Lionore) earned a 90% equity in the Lehmans JV tenements by expenditure of over $650,000 with Intermin retaining a 10% interest free carried to the mining stage. Lionore is now owned by Norilsk Nickel Ltd.

Intermin Resources Ltd advises in accordance with Australian Stock Exchange Limited Listing Rules 5(6) that the exploration results contained within this Annual Report are based on information compiled by Mr Nigel Cranley who is a member of the Australian Institute of Mining and Metallurgy. Mr Cranley is a consultant working for Intermin Resources Ltd and has consented in writing to the inclusion in this Annual Report of matter based on the information so compiled by him in the form and context in which it appears. Mr Cranley has sufficient experience relevant to the style of mineralisation and types of deposit under consideration to be qualified as a Competent Person as defined by the 2004 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves”. The information in this report that relates to open pit ore resources has been compiled by Mr Simon Coxhell. Mr Coxhell, who is a member of the Australian Institute of Mining and Metallurgy, is a consultant to Intermin Resources Ltd. Mr Coxhell has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity that he is undertaking to qualify as a Competent person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Coxhell consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

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ACTIVITIES REPORT Table 8

Tenement Schedule as at 30 June 2011

Prospect Area Tenement Area Registered Holders IRC Equity Notes

BINDULI NORTH P26/3578 13.6 Ha BMG 100% -

P26/3584 185 Ha BMG 100% -

P26/3585 195 Ha BMG 100% -

P26/3586 196 Ha BMG 100% -

P26/3587 70 Ha BMG 100% -

P26/3588 191 Ha BMG 100% -

P26/3589 10 Ha BMG 100% -

BINDULI EAST MLA26/616 956 Ha IRC 100% 1

MLA26/670 (P26/3576-77) 259 Ha IRC 100% 1

BINDULI NORTH - E26/127 13 Blks IRC/BAN 85% 2

BANYAN P26/3575 2 Ha IRC/BAN 85% 2

P26/3608 28 Ha IRC/BAN 85% 2

PLA26/3576 134 Ha IRC 100% -

PLA26/3577 155 Ha IRC 100% -

BINDULI - M26/346 9.71 Ha BMG 100% -

PEYES FARM M26/499 770 Ha IRC 100% 3

M26/621 200 Ha BMG 100% 3

M26/549 15 Ha BMG 100% -

P26/3582 135 Ha BMG 100% -

P26/3583 160 Ha BMG 100% -

LA26/261 69 Ha IRC 100% -

BINDULI - CRAKE P26/3579 127.45 Ha BMG 100% -

P26/3580 129.95 Ha BMG 100% -

P26/3581 127.9 Ha BMG 100% -

WHITE FLAG E24/154 11 Blks IRC 43.90% 4

P24/4251 4 Ha IRC 43.90% 4

P24/4252 179 Ha IRC 43.90% 4

P24/4235 125 Ha BMG 43.90% -

NANADIE WELL E51/1040 18 Blks IRC/TY/HTCH/WLZK 51% 5

E51/1270 11 Blks BELL BAY 100% -

E51/1351 19 Blks IRC 100% -

E51/1285 4 Blks KESLI 100% -

SOUTH ELA09/1129 70 Blks IRC 100% -

CARNARVON ELA09/1131 70 Blks IRC 100% -

LEHMANNS M36/35 (P36/1651) 197.7 Ha BMG/NNW 10% f/carried 6

P36/1651 4 Ha BMG/NNW 10% f/carried 6

M36/421 9.7 Ha BMG/NNW 10% f/carried 6




M36/513 (P36/1650) 482.5 Ha BMG/NNW 10% f/carried 6



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Tenement Schedule as at 30 June 2011 (continued)


LEHMANNS M36/527 695.4 Ha BMG/NNW 10% f/carried 6






M36/589 (P36/1649) 3.3805 Ha BMG/NNW 10% f/carried 6


JANET IVY M26/446 510.35 Ha NGF 0% 7

P26/3609 38 Ha NGF 0% 7

L26/201 23 Ha NGF 0% 7

JULIA CREEK, QLD EPM14798 70 Blks IRC 100% 8

EPM14799 72 Blks IRC 100% 8

EPM14800 25 Blks IRC 100% 8

EPM14801 19 Blks IRC 100% 8

EPM14802 61 Blks IRC 100% 8

EPM14803 69 Blks IRC 100% 8

EPM14804 31 Blks IRC 100% 8

EPM14805 78 Blks IRC 100% 8

EPM14806 80 Blks IRC 100% 8

EPM14957 46 Blks IRC 100% 8

EPM15066 10 Blks IRC 100% 8

EPM15799 3 Blks IRC 100% 8

EPM15869 100 Blks IRC 100% 8

EPM15877 70 Blks IRC 100% 8

EPM15878 95 Blks IRC 100% 8

EPM17526 1 Blk Xtract Oil Ltd 100% 8

EPM17528 14 Blks Xtract Oil Ltd 100% 8



EPM17896 33 Blks IRC 100% 8

EPM18549 100 Blks IRC 100% 8

EPM18550 100 Blks IRC 100% 8

EPM18551 100 Blks IRC 100% 8

EPMA17108 100 Blks IRC 100% 8

OTTO BORE M36/177 120 Ha PLT 0% 9

E36/435 1 Blk PLT 0% 9

WHITE RANGE, NT MLS150 583.1 Ha IRC 100% -

MLS151 20 Ha IRC 100% -

MENZIES (RER JV) M29/14 102.8 Ha RR 96% 10

M29/88 35.2 Ha Goongarrie c/- RR 96% 10



M29/184 591.85 Ha RR 100% 10

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Tenement Schedule as at 30 June 2011 (continued)


MENZIES (RER JV) M29/212 923.55 Ha RR 100% 10

L29/42 0.09 Ha RR 100% 10

L29/43 0.09 Ha RR 100% 10

L29/44 0.09 Ha RR 100% 10

P29/2094 192 Ha RR 100% 10

P29/2095 198 Ha RR 100% 10

P29/2096 190 Ha RR 100% 10

P29/2097 15 Ha RR 100% 10

P29/2112 50 Ha RR 100% 10

(WCVB JV) P26/1862 154 Ha Van Blitterswyk 96% 11

P29/1863 APPLIED FOR 160 Ha Van Blitterswyk 96% 11

P29/1864 M29/410 162 Ha Van Blitterswyk 96% 11

P29/1865 145 Ha Van Blitterswyk 96% 11

MLA29/410 499 Ha Van Blitterswyk 100% 11

(IRC) E29/772 1 Blk BMG 100% -

P29/2165 177 Ha BMG 100% -

P29/2166 139 Ha BMG 100% -

P29/2167 182 Ha BMG 100% -

P29/2172 11 Ha Orex 100% -

P29/2176 136 Ha BMG 100% -

P29/2177 178 Ha BMG 100% -

PLA29/2216 196 Ha BMG 100% -

WILUNA CALCINE M53/96 636.35 Ha Apex 100% 12

TAILINGS M53/200 331.1 Ha Apex 100% 12

GPLA53/18 6.3 Ha Apex 100% 12

GPLA53/19 8.7 Ha Apex 100% 12

Abbreviations IRC Intermin Resources Ltd Banyan Banyan Pty Ltd BMG Black Mountain Gold Ltd (IRC Subsidiary) NGF Norton Gold Fields Ltd Goongarrie Goongarrie Gold Pty Ltd PJB Pamela Jean Buchhorn NNW Norilsk Nickel Wildara Pty Ltd Apex Apex Minerals NL PLT Plutonic Operations Ltd (subsidiary of Barrick Asia Pacific Ltd) BAP Barrick Asia Pacific Ltd RER Regal Resources Ltd Orex Orex Mining Pty Ltd WCVB Wayne Craig Van Blitterswyk Notes (1) Royalty of $1 per tonne of ore mined and treated from MLAs 616 and 670 is payable by IRC to Pamela Jean Buchhorn. (2) Banyan Pty Ltd holds a 15% free carried interest to decision to mine in respect of the Banyan tenements. (3) A royalty of 0.5% of the value of gold and other minerals recovered from M26/499 and M26/621 is payable by Intermin to the Widji

people. (4) BAP hold the remaining 56.1% interest in the White Flag JV tenements. BAP and IRC are contributing pro-rata to exploration

expenditure. (5) IRC retains the right to increase its interest to 80% by achieving bankable feasibility status of E51/1040. (6) BMG/IRC retains a 10% free carried in the Lehmans tenements to the decision to mine point. (7) Royalty of $0.50 per tonne of ore mined payable to IRC after the first 2.76 million tonnes (prepaid). (8) Julia Creek/Richmond tenements 100% owned by IRC but Xtract Energy Plc retains the exclusive right to recover hydrocarbons from oil

shale deposits located within the tenements. (9) IRC is entitled to a royalty of 3% gold recovered from the Otto Bore tenements. (10) Farm-In and JV with RER and BMG earning 80% by expenditure of $1.2M. (11) Wayne Craig Van Blitterswyk (WCVB) - BMG to spend $200,000 within three years to earn 70% interest. (12) IRC acquired Calcine Tailings from Apex Minerals NL in June 2011 for $20,000. IRC to pay a royalty of $4 per tonne of material moved

from its current location in Wiluna. A prepayment of $900,000 plus GST was paid to Apex in June 2011.

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DIRECTORS' REPORT

Your Directors present their report together with the financial report of the Consolidated Entity consisting of Intermin Resources Ltd and the entities it controlled for the financial year ended 30 June 2011 and the Auditor‟s Report thereon.

DIRECTORS The following persons held office as Directors of Intermin Resources Ltd during the financial year and up to the date of this report: Peter Hayden Hunt, FCA (Chairman) Michael Ruane, PhD MRACI (Managing Director) Jon Brien, BSc (Hons)(Geol.)

INFORMATION ON DIRECTORS AND OFFICERS P H Hunt (Chairman)

Non Executive Director of Intermin Resources Ltd for over 20 years, and is a member of the Institute of Chartered Accountants in Australia and an experienced Company Director. Member of the Audit Committee. In the past three years Mr Hunt has been a Director of Strzelecki Metals Limited, formerly Primary Resources Ltd (Appointed 20 November 2005), Adelaide Energy Limited (Appointed 16 February 2007) and MUI Corporation Ltd (Appointed a Director and Chairman on 5 June 2011). M Ruane

Managing Director of Intermin Resources Ltd since 29 May 1998. He holds a PhD in Chemistry and has over 30 years experience as a Technical Consultant in the chemical and metallurgical fields. Dr Ruane is also a Director of Reward Minerals Ltd and Heartlink Ltd. No former directorships in the past three years. J W Brien

Non Executive Director of Intermin Resources Ltd. He has an Honours degree in Science majoring in Geology and has over 35 years experience in mineral exploration and the mining industry. Member of the Audit Committee. Mr Brien has not held any other directorships in the last 3 years. B Taveira and R Paterson (Company Secretaries)

Mr Sendziuk retired on 27 January 2011. Mr Paterson was appointed Joint Company Secretary on 17 February 2011. Ms Taveira was appointed Joint Company Secretary on 15 February 2010, Ms Taveira has been providing administration and secretarial services to many listed and unlisted public companies for 12 years.

MEETINGS OF DIRECTORS The number of meetings of the Consolidated Entity's Directors (including meetings of committees of Directors) held during the year ended 30 June 2011, and the number of meetings attended by each Director were:

Circular

Resolutions

Full Meetings

Of Directors

Audit

Committee Meetings

Directors

Eligible To Participate

Number

Attended

Eligible To Participate

Number

Attended

Eligible to Participate

Number

Attended

P H Hunt 5 5 5 5 1 1

M Ruane 5 5 5 5 - -

J W Brien 5 5 5 5 1 1

DIRECTORS INTERESTS As at 1 September 2011 interests of the Directors in the shares and options of the Company were:-

Ordinary Shares Options Over Ordinary Shares

Directors Direct Interest Indirect Interest Direct Interest Indirect Interest

P H Hunt - 4,174,465 - 834,893

M Ruane 1,282,075 38,955,748 58,915 7,304,173

J W Brien - 1,543,750 - 308,750

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DIRECTORS' REPORT CORPORATE INFORMATION

Intermin Resources Ltd is a Company limited by shares that is incorporated and domiciled in Australia. PRINCIPAL ACTIVITIES

The principal continuing activities during the year of the Consolidated Entity, constituted by Intermin Resources Ltd and the entities it controlled during the year, consisted of exploration for and mining of gold and other mineral resources. CONSOLIDATED RESULTS

The results of the Consolidated Entity for the year ended 30 June 2011 was a profit, after income tax expense, of $5,845,218 (2010: Loss $2,531,836). DIVIDENDS

Since the end of the previous financial year, no amount has been paid or declared by way of dividend. The Directors do not recommend that any dividend be paid. REVIEW OF OPERATIONS

A review of the operations of the Consolidated Entity is included in the Managing Directors‟ Review and the Activities Report. PROCEEDINGS ON BEHALF OF COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Consolidated Entity 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 those proceedings. The Consolidated Entity was not a party to any such proceedings during the year. SIGNIFICANT CHANGES IN STATE OF AFFAIRS

There were no significant changes to the state of the Consolidated Entity‟s affairs during the year. AFTER REPORTING DATE EVENTS

On 18 August 2011, the Company issued two million fully paid Intermin shares and two million options exercisable at 18 cents by 31 May 2012 to Orex Mining Pty Ltd in relation to the Wiluna Calcine Project, see Note 23h. FUTURE DEVELOPMENTS

In the opinion of the Directors it would prejudice the interests of the Consolidated Entity to provide additional information, beyond that reported in this Annual Report, relating to likely developments in the operations of the Consolidated Entity and the expected results of those operations in financial years ended subsequent to 30 June 2011. ENVIRONMENTAL REGULATION

The Consolidated Entity‟s exploration and mining operations are subject to environment regulation under the laws of the Commonwealth and the States. The Company holds exploration/mining tenements in Western Australia, Northern Territory and Queensland and thus is subject to the Mining Acts of these states, each with specific conditions relating to environmental management. In some instances bonds are held by the Company‟s bank in favour of the Minister for Mines to be released to the Company when the Minister is satisfied that conditions imposed on tenement licences have been met. In some jurisdictions Cash Bonds must be lodged with the relevant Department until conditions are fulfilled. Bonds currently in place in respect of the Company‟s tenement holdings are tabulated below.

Tenement Number Tenement Name Bond Held $

MLs150, 151 White Range 100,000

EPMs14957, 14805-06, 15066 Julia Creek 10,000

M36/35 Double A 40,000

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DIRECTORS’ REPORT ENVIRONMENTAL REGULATION (continued)

The Directors advise that during the year ended 30 June 2011, no claim has been made by any competent authority that any environmental issues, condition of license or notice of intent has been breached, and no claim has been made for increase of bond. 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 measurement period 1 July 2010 to 30 June 2011 the directors have assessed that there are no current reporting requirements, but may be required to do so in the future. SHARE OPTIONS

At the date of this report, there were unissued ordinary shares under options on issue. Intermin Resources Ltd issued 22,526,518 options on 3 May 2010, with an exercise price of $0.18 cents and an expiry date of 31 May 2012. They were issued to eligible shareholders pursuant to the Bonus Option issue announced on 14 April 2010. As at 30 June 2011, 5 options had been exercised. INSURANCE OF OFFICERS

During the financial year, Intermin Resources Ltd has insured certain officers of the Company and related bodies corporate. The officers of the Company covered by the insurance policy include the Directors: P H Hunt, M Ruane, J W Brien, Secretaries R Paterson and B Taveira. The liabilities insured include costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Company or a related body corporate. REMUNERATION REPORT

The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001. Details of Remuneration for the Year Ended 30 June 2011

The remuneration for each Director and Executive Officers (including five highest paid) of the Consolidated Entity receiving remuneration during the year was: Directors Remuneration

Short Term Benefits Long Term Benefits

Name

Short Term Consulting

Fees Related Parties

$

Directors’ Fee

$

Post Employment

Superannuation $

Total $

Performance Related

%

P H Hunt 2011 - 32,000 6,000 38,000 -

(Chairman) 2010 - 32,000 6,000 38,000 -

M Ruane 2011 78,500 25,000 5,000 108,500 -

(Managing Director) 2010 75,000 25,000 5,000 105,000 -

J W Brien 2011 - 20,000 - 20,000 -

(Director) 2010 412 20,000 - 20,412 -

Total 2011 78,500 77,000 11,000 166,500 -

Total 2010 75,412 77,000 11,000 163,412 -

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DIRECTORS’ REPORT

Key Management Personnel Remuneration

Name

Short Term Consulting

Fees/Salaries Related Parties

$

Post Employment Superannuation

$

Total

$

Performance Related

%

Ross Paterson * 2011 13,382 - 13,382 -

(Co. Secretary) 2010 27,239 - 27,239 -

Bianca Taveira 2011 40,297 3,627 43,924 -

(Co. Secretary) 2010 36,451 3,238 39,689 -

Total 2011 53,679 3,627 57,306 -

Total 2010 63,690 3,238 66,928 -

*(Appointed 17 February 2011) The Company has no formal policy regarding the provision of Directors‟ remuneration. Directors‟ fees in total are determined by the shareholders in a general meeting. No cash bonuses or options have been issued to Directors. There were no key management personnel or specified executives employed by the Group during the year for which disclosure of remuneration is required, apart from the directors‟ remuneration disclosed above. At the date of this report, the Company had one employee that fulfilled the role of key management personnel. Shareholders have approved Directors‟ Fees in total of $150,000 per annum. Directors are not under contract. Directors may be paid consulting fees for specialist services beyond normal duties at commercial rates calculated according to the amount of time spent on Company business. No directors have received share-based compensation or performance-related remuneration for services as directors of the Company. The share price of the Company has fluctuated with the markets and has also been influenced by the Company„s investments in other ASX listed companies. Over the past five years the directors‟ fees have remained static and have not been influenced by the fluctuating share price. Due to the nature of operation the Company currently does not offer performance based remuneration. This is the end of the remuneration report.

NON-AUDIT SERVICES No amounts were paid during the years ended 30 June 2011 or 2010 to the auditor for non-audit services.

AUDITOR’S INDEPENDENCE DECLARATION In accordance with section 307C of the Corporations Act 2001, the Directors have obtained a declaration of independence from BDO Audit (WA) Pty Ltd, the Consolidated Entity‟s auditor, as presented on page 31 of this Annual Report. This report is made in accordance with a resolution of directors, and signed for on behalf of the board by:


Perth, WA 27 September 2011

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CORPORATE GOVERNANCE STATEMENT The Group is directly managed by the Board, through the Executive Director, contractors are used to perform functions as required.

CORPORATE GOVERNANCE

A description of the Group‟s main corporate governance practices is set out below. Unless otherwise stated, all these practices were in place for the entire year. Chairman

The Chairman of the Board is a non-executive Director who is elected by the full Board. Non-Executive Directors

The performance of non-executive Directors is reviewed by the Chairman on an ongoing basis. Any Director whose performance is considered unsatisfactory is asked to resign. Explanations for Departures from Best Practice Governance Recommendations

The Directors have considered the ASX Principles of Good Corporate Governance and Best Practice Recommendations and their relevance to this Consolidated Entity, taking into account the Board, the management structure and the size of the Group. Not all of the recommendations have been implemented due to the small size of the Group and the Board. As the Group grows then adherence will become more relevant.

PRINCIPLE 1 – LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT Corporate governance is a matter of high importance in the Group and is undertaken with due regard to all of the Group‟s stakeholders and its role in the community. The main corporate governance practices are described in this corporate governance statement. The Board of Directors (hereinafter referred to as the board) and the company secretary are responsible for the corporate governance of the Group. Directors of the Group are required to act honestly, transparently, diligently, independently and in the best interests of all shareholders with the objective of increasing shareholder value. The Group operates in a framework to: o Enable the Board to provide strategic guidance for the Group and effective oversight of contractors; o Clarify the respective roles and responsibilities of board members in order to facilitate board accountability to

the Group and shareholders; o Ensure a balance of authority so that no single individual has unfettered powers.

PRINCIPLE 2 – STRUCTURE THE BOARD TO ADD VALUE 2.1 Board of Directors

The Directors have responsibility for the overall corporate governance of the Group and for protecting the rights and interests of the stakeholders in the Group.

o the Board should comprise between 3 and 8 Directors; o at least half of the Board should be non-executive Directors; o the Chairman should be a non-executive Director; o on appointment, Directors should desirably be able to serve a minimum of three years before retirement; and o the Board should comprise Directors with a broad range of skills and experience.

At the date of signing the Directors‟ Report the Board consisted of one executive Director and two non-executive Directors. Details of the Directors are set out in the Directors‟ Report under the heading on “Information on Directors and Officers.” Directors are initially appointed by the full Board, subject to election by shareholders at the next general meeting of shareholders, and re-election at three-yearly intervals.

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CORPORATE GOVERNANCE STATEMENT 2.1 Board of Directors (continued)

The most significant responsibilities and functions of the Board are: o Development of corporate strategy and performance objectives; o Approving and monitoring the progress of major capital expenditure, capital management and monitoring of the

results; o Oversight of the Group, including reviewing and ratifying systems of risk management and internal compliance

and control, codes of conduct, and legal compliance; o Approving and monitoring financial and other reporting; o Monitoring and influencing the culture, reputation and ethical standards of the Group; o Monitoring the board composition, director selection and board processes and performance; o Approving key executive appointments; o Reviewing and approving executive remuneration. The Board meets on a regular basis. All available information in connection with items to be discussed at a meeting of the Board is provided to each Director before the meeting. All Board members hold shares in the holding Company and thus are not deemed to be Independent Directors. Appointment of additional Independent Directors is not warranted due to the limited size of the group‟s operations. This is not a disadvantage to the Group. The Group‟s wellbeing is of primary interest to all of the Directors and their holdings in the holding company illustrate their confidence in the Group‟s future. 2.2 Board Appraisal

The Board has a process to review and evaluate the performance of the Board. The process involves consideration of all of the Board‟s key areas of responsibility. 2.3 Remuneration of Directors

The remuneration policy for Directors and the remuneration of each Director are set out in the Directors‟ Report in each Annual Report. The maximum aggregate remuneration for all non executive Directors of $150,000 was approved by the shareholders at an Annual General Meeting held on 29 November 2005. 2.4 Access to Independent Professional Advice

The Group has a policy that each Director may seek independent legal and other professional advice at the Group‟s expense concerning any aspect of the Group‟s operations or undertakings in order to fulfil their duties and responsibilities as Directors. The prior approval of the Chairman is required, which must not be unreasonably withheld, before incurring the expense. 2.5 Related Party Transactions

Disclosure of all related party transactions, if any, is made in the annual report. All Directors are required to disclose to the Board any other board appointments, contracts or other interests, which may give rise to a conflict with the interests of the Group. When a potential conflict of interest arises, the Director concerned does not receive copies of the relevant board papers and withdraws from the board meeting while such matters are considered. Accordingly, the Director concerned takes no part in discussions nor exercises any influence over other members of the board if a potential conflict of interest exists. 2.6 Board Meetings

The Directors are expected to attend all meetings of the Board. The frequency of board meetings and Directors‟ attendance at those meetings is set out in the Directors‟ Report. Directors are expected to adequately prepare for meetings and attend and participate at board meetings.

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CORPORATE GOVERNANCE STATEMENT 2.7 Restrictions on Share Dealings by Directors

Directors are subject to the Corporations Act 2001 restrictions on applying for, acquiring and disposing of securities in, or other relevant financial products of the Group (or procuring another person to do so), if they are in possession of inside information. Inside information is that information which is not generally available, and which if it were generally available, a reasonable person would expect it to have a material effect on the price or value of the securities in, or other relevant financial products of, the Group.

The Board does not place any restrictions on the Directors or staff in trading in the holding Company‟s shares other than that no trading is to take place unless all information which is price sensitive is first released to the market. It is the Board‟s policy to keep the market informed at all times.

PRINCIPLE 3 – PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING The Group is committed to maintaining appropriate standards of ethical behaviour required of Group Directors and key executives (that is, officers and employees who have the opportunity to materially influence the integrity, strategy and operation of the business and its financial performance) and encourage the observance of those standards. 3.1 Code of Conduct and Ethical Standards

The Board supports the following Code of Conduct issued by the Australian Institute of Company Directors: o A Director must act honestly, in good faith and in the best interests of the Group as a whole; o A Director has a duty to use due care and diligence in fulfilling the functions of office and exercising the powers

attached to that office; o A Director must use the powers of office for a proper purpose, in the best interests of the Group as a whole; o A Director must recognise that the primary responsibility is to the Company‟s shareholders as a whole but

should, where appropriate, have regard for the interests of all stakeholders of the Group; o A Director must not make improper use of information acquired as a Director; o A Director must not take improper advantage of the position of Director; o A Director must not allow personal interests, or the interests of any associated person, to conflict with the

interests of the Group; o A Director has an obligation to be independent in judgement and actions and to take all reasonable steps to be

satisfied as to the soundness of all decisions taken by the Board of Directors; o Confidential information received by a Director in the course of the exercise of directorial duties remains the

property of the Group from which it was obtained and it is improper to disclose it, or allow it to be disclosed, unless that disclosure has been authorised by that Group, or the person from whom the information is provided, or is required by law;

o A Director should not engage in conduct likely to bring discredit upon the Group; o A Director has an obligation, at all times, to comply with the spirit, as well as the letter, of the law and with the

principles of this Code.

PRINCIPLE 4 – SAFEGUARD INTEGRITY IN FINANCIAL REPORTING The Group has in place a structure of review and authorisation designed to ensure the truthful and factual presentation of the Group‟s financial position. The structure includes: The Annual Directors Declaration can only be signed, after the receipt by the Board, of a declaration in writing, by the Chief Executive Officer, Chief Financial Officer and Company Secretary; A process to ensure the independence and competence of the Group‟s external auditors.

Audit Committee

To assist it in fulfilling its responsibilities the Board has established an audit committee. The audit committee consists of two non-executive Directors being: o P H Hunt (Chairman); and o J Brien The main responsibilities of the audit committee are to: o review and report to the Board on the annual report and financial statements; o provide assurance to the Board that it is receiving adequate, up to date and reliable information; o assist the Board in reviewing the effectiveness of the organisation‟s internal control environment covering;

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CORPORATE GOVERNANCE STATEMENT Audit Committee (continued)

- effectiveness and efficiency of operations; - reliability of financial reporting; - compliance with applicable laws and regulations; and - coordination with the external auditors;

The committee is also charged with the responsibilities of recommending to the Board the appointment, removal and remuneration of the external auditors, reviewing the terms of their engagement and the scope and quality of the audit. In fulfilling its responsibilities the committee receives regular reports from external auditors. It also meets with the external auditors at least once a year. The external auditors have a clear line of direct communication at any time to the Chairman of the audit committee. The committee has authority, within the scope of its responsibilities, to: o seek any information it requires from any employee or external party, and o obtain external legal or other independent professional advice. The committee reports to the full Board after each committee meeting and relevant papers are provided to all Directors. The audit committee meets within the Board of Directors on a quarterly basis to verify the Quarterly Reports prior to lodgement with the ASX. 4.1 Managing Director to Write to the Board

The Managing Director and the Company Secretary are required to state in writing to the Board that the Group‟s financial reports present a true and fair view, in all material respects, of the Group‟s financial condition and operational results and are in accordance with relevant accounting standards. Declaration in writing by the Managing Director and Company Secretary that: o The financial records of the Group for the financial year have been properly maintained in accordance with

section 286 of the Corporations Act; o The financial statements and accompanying notes, for the financial year, comply with the applicable accounting

standards; o The financial statements and accompanying notes give a true and fair view; o Any other matter prescribed by regulations. The Annual Directors Declaration can only be signed after the receipt by the Board of a declaration in writing, by the Managing Director and Company Secretary. The Directors‟ Declaration will state that the Directors have been given a declaration required by section 295A. 4.2 Directors Report – Management Discussion and Analysis

The Directors‟ Report will include information that the members would reasonably require to make an informed assessment of: o The operations of the Group; o The financial position of the Group; and o The Group‟s business strategies and prospects for future years. Information may be omitted if it is likely to result in unreasonable prejudice to the Group. If information is omitted, the Directors Report will state this.

PRINCIPLE 5 – MAKE TIMELY AND BALANCED DISCLOSURE The Group supports the continuous disclosure policy set out in the Australian Stock Exchange Listing Rules to ensure that: o All investors have equal and timely access to material information concerning the Group, including its financial

situation, performance, ownership and governance; o Group announcements are factual and presented in a clear and balanced way.

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CORPORATE GOVERNANCE STATEMENT 5.1 Communication with Shareholders

All Group announcements are subject to appropriate vetting and authorisation to ensure that Group announcements: o Are made in a timely manner; o Are factual; o Do not omit material information; o Are expressed in a clear and objective manner that allows investors to assess the impact of the information

when making investment decisions. 5.2 Informing the Market

The Board‟s policy is that shareholders are informed of all major developments that are price sensitive, regardless of whether the information is good news or bad news. 5.3 Continuous Disclosure

The Managing Director is the nominated Australian Stock Exchange Communication Officer and is responsible for ensuring that the Group complies with its continuous disclosure requirements. The Managing Director is responsible for overseeing and coordinating the disclosure of information to the stock exchange, analysts, brokers, shareholders, the media and the public. The Group‟s compliance with its continuous disclosure obligations is reviewed at each meeting of the Board of Directors.

PRINCIPLE 6 – RESPECT THE RIGHTS OF SHAREHOLDERS The Group communicates with shareholders in an open and timely manner so that the market has sufficient information to make informed investment decisions on the operations and results of the Group. Shareholders are encouraged to submit questions at general meetings and also to participate in discussions with the board at the meetings.

PRINCIPLE 7 – RECOGNISE AND MANAGE RISK Principal 7 has not been complied with, the Group does not have a published risk management policy. A Board member is responsible for the day to day management of the Group and communicates directly with the other Board members, this ensures that any potential risk to the Group is dealt with immediately.

PRINCIPLE 8 – REMUNERATE FAIRLY AND RESPONSIBLY Principal 8 has not fully been complied with, the Board has only three members, performance evaluation by committee is thus inappropriate. The Board evaluates its own performance on the success of the Group on a yearly basis. The Chairman evaluates the performance of the other board members annually to assess their suitability and also to ensure that additional directors are not required. The shareholders also have the right and are given the opportunity to question the Board members formally at meetings or informally by direct contact. The Group does not have a remuneration policy. The Directors‟ salaries are published annually and are controlled by the shareholders. The Group‟s administrative activities are carried out by contractors under instruction from the Board. Commercial rates are paid. Work performed by Director controlled entities is at commercial rates and disclosed annually. The Board has an unwritten policy of not having employment agreements or long term contracts with the directors or associated parties.

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AUDITOR’S INDEPENDENCE DECLARATION

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DIRECTORS’ DECLARATION

In the opinion of the Directors of Intermin Resources Ltd “the Consolidated Entity”: 1. The financial statements, comprising the consolidated statement of comprehensive income, consolidated

statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and accompanying notes, set out on pages 33 to 63 are in accordance with the Corporations Act 2001 including:

(a) complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory

professional reporting requirements ; (b) giving a true and fair view of the financial position as at 30 June 2011 and of the performance for the

year ended on that date of the Consolidated Entity; and

2. The Company has included in the notes to the financial statements an explicit and unreserved Statement of

Compliance with International Financial Reporting Standards. 3. The Directors have been given the declaration by the Managing Director required by Section 295A.

4. In the Directors‟ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as

and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:


Perth, WA 27 September 2011

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011

Note

2011

$

2010

$

Revenue from continuing operations 2 200,424 258,521

Other income 3 2,104,103 347,874

2,304,527 606,395

Exploration and evaluation expenditure 4 (20,034) (685,718)

Research and development 4 - (466,329)

Depreciation expenses 4 (76,996) (95,555)

Net change in fair value on financial assets at fair value through profit or loss 4 4,150,895 (1,194,274)

Employee benefits expense (202,633) (248,217)

Finance costs 4 - -

Building and occupancy costs 4 101,862 (108,136)

Impairment loss on tenements 4 (73,919) (342,806)

Other expenses (338,484) (178,621)

Profit/(Loss) from continuing operations before income tax 5,845,218 (2,713,261)

Income tax (expense)/ benefit - 181,425

Profit/(Loss) for the year 5,845,218 (2,531,836)

Other comprehensive income

Other comprehensive income net of tax - -

Profit/(Loss) for the year and total comprehensive income attributable to owners of Intermin Resources Ltd

5,845,218

(2,531,836)

2011 2010

Basic earnings per share 18 5.99 cents (2.76) cents

Diluted earnings per share 18 5.99 cents (2.76) cents

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying

notes.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2011

Note

2011

$ 2010

$

Current assets

Cash and cash equivalents 7 1,974,699 257,328

Trade and other receivables 8a 3,960,092 1,099,782

Total current assets 5,934,791 1,357,110

Non-current assets

Financial assets at fair value through profit or loss 9a 6,066,944 2,892,216

Investments accounted for using the equity method 9b - 1,286,793

Other financial assets 10 120,000 167,035

Property, plant and equipment 11a 365,629 396,125

Exploration assets 11b 4,030,108 1,596,481

Total non-current assets 10,582,681 6,338,650

Total assets 16,517,472 7,695,760

Current liabilities

Trade and other payables 12 260,267 217,138

Borrowings 13 - 50,000

Total current liabilities 260,267 267,138

Non-current liabilities

Provisions 14 100,000 100,000

Total non-current liabilities 100,000 100,000

Total liabilities 360,267 367,138

Net assets 16,157,205 7,328,622

Equity

Contributed equity 16a 18,667,923 15,738,558

Reserves 17a 198,976 144,976

Accumulated losses 17b (2,709,694) (8,554,912)

Total equity 16,157,205 7,328,622

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011

Consolidated Entity

Contributed Equity

Asset Revaluation

Reserve

Available for Sale

Revaluation Reserve

Share based payment

Reserve Accumulated

Losses Total Equity

$ $ $ $ $ $

Balance at 1 July 2009 15,734,339 144,976 1,358,487 - (7,381,563) 9,856,239

Total comprehensive income for the year

- - - - (2,531,836) (2,531,836)

Reclassification due to early adoption of AASB 9

- - (1,358,487) - 1,358,487 -

Transactions with owners in their capacity as owners

4,219 - - - - 4,219

Balance at 30 June 2010 15,738,558 144,976 - - (8,554,912) 7,328,622

Balance at 1 July 2010 15,738,558 144,976 - - (8,554,912) 7,328,622

Total comprehensive income for the year

- - - - 5,845,218 5,845,218

Transactions with owners in their capacity as owners:

Share issues, net of transaction costs 2,659,365 - - - - 2,659,365

Shares to be issued 270,000 270,000

Options to be issued 54,000 54,000

Balance at 30 June 2011 18,667,923 144,976 - 54,000 (2,709,694) 16,157,205

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011

Note

2011

$ 2010

$

Cash flows from operating activities

Receipts from customers 48,440 130,467

Payments to suppliers and employees (505,311) (499,163)

Exploration and evaluation expenditure (65,527) (1,074,493)

Interest received 78,596 118,140

Net cash outflow from operating activities 21a (443,802) (1,325,049)

Cash flows from financing activities

Loan-related party (50,000) 50,000

Proceeds on issue of shares 2,659,365 4,219

Amount transferred to term deposit (2,522,965) (945,000)

Net cash (outflow) inflow from financing activities 86,400 (890,781)

Cash flows from investing activities

Payments for property, plant and equipment (36,500) (3,423)

Proceeds from sale of investments 4,398,278 (362,867)

Payment for investments (177,380) -

Payment for mineral exploration tenements/resources (2,109,625) (1,025,511)

Net cash inflow (outflow) from investing activities 2,074,773 (1,391,801)

Net increase (decrease) in cash and cash equivalents 1,717,371 (3,607,631)

Cash and cash equivalents at the beginning of the financial year 257,328 3,864,959

Cash and cash equivalents at the end of the financial year 7 1,974,699 257,328

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of the material accounting policies adopted by the Consolidated Entity in the preparation of the financial report. 1a Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and the Corporations Act 2001. The functional and presentation currency of Intermin Resources Ltd is in

Australian Dollars. Compliance with IFRSs

The financial statements of Intermin Resources Ltd Consolidated Entity (Group) also comply with International Financial Reporting Standards (IFRSs). At 30 June 2010, the Group elected to early adopt AASB 9 Financial Instruments. AASB 9 does not require companies that adopt the standard for reporting period beginning before 1 January 2012 to restate prior periods. The opening retained earnings on the year of adoption however were restated to recognise the effects of the adoption of AASB 9. The financial effect of this was to decrease the available for sale financial asset reserve at 1 July 2009 from $1,358,487 to nil and decrease Accumulated losses by $1,358,487. This change in accounting policy was applied prospectively and therefore had not had a material impact on prior period earnings per share. Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss and certain classes of property, plant and equipment.

New standards and interpretations not yet adopted

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods and which the Company has decided not to early adopt. A discussion of those future requirements and their impact on the Company is as follows:

(i) AASB 124 Related Party Disclosures (revised December 2009) simplifies and clarifies the intended meaning of the definition of a related party and provides a partial exemption from the disclosure requirements for government-related entities. The amendments, which will become mandatory for Group‟s 30 June 2012 financial statements, are not expected to have any impact on the financial statements.

(ii) AASB 2010-4 (issued June 2010) deletes various disclosures relating to credit risk, renegotiated loans and

receivables and the fair value of collateral held. The amendments which become mandatory for periods commencing on or after 1 January 2011 will have no impact on the financial statement as the amendments result in fewer disclosures only.

(iii) AASB 2010-4 (issued June 2010) requires a detailed reconciliation of each item of other comprehensive income

may be included in the statement of changes in equity or in the notes to the financial statements. The amendments which become mandatory for periods commencing on or after 1 January 2011 will have no impact as a detailed reconciliation of each item of other comprehensive income has always been included in the statement of changes in equity.

(iv) AASB 2010-6: Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets

[AASB 1 & AASB 7] (applicable for annual reporting periods beginning on or after 1 July 2011).

This Standard adds and amends disclosure requirements about transfers of financial assets, especially those in respect of the nature of the financial assets involved and the risks associated with them. Accordingly, this Standard makes amendments to AASB 1: First-time Adoption of Australian Accounting Standards, and AASB 7: Financial Instruments: Disclosures, establishing additional disclosure requirements in relation to transfers of financial assets. This standard is not expected to impact the Company.

(v) AASB 2010-7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB

1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] (applies to periods beginning on or after 1 January 2013).

This Standard makes amendments to a range of Australian Accounting Standards and Interpretations as a consequence of the issuance of AASB 9: Financial Instruments in December 2010. Accordingly, these amendments will only apply when the entity adopts AASB 9.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New standards and interpretations not yet adopted (continued)

The amendments brought in by this Standard introduce a more practical approach for measuring deferred tax liabilities and deferred tax assets when investment property is measured using the fair value model under AASB 140: Investment Property. Under the current AASB 112, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects to recover an asset by using it or by selling it. The amendments introduce a presumption that an investment property is recovered entirely through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale. The amendments brought in by this Standard also incorporate Interpretation 121 into AASB 112. The amendments are not expected to impact the Company.

(vi) AASB 2010-9: Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed

Dates for First-time Adopters [AASB 1] (applies to periods beginning on or after 1 July 2011).

This Standard makes amendments to AASB 1: First-time Adoption of Australian Accounting Standards. The amendments brought in by this Standard provide relief for first-time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their date of transition to Australian Accounting Standards. Furthermore, the amendments brought in by this Standard also provide guidance for entities emerging from severe hyperinflation either to resume presenting Australian-Accounting-Standards financial statements or to present Australian-Accounting-Standards financial statements for the first time. This standard is not expected to impact the Company.

(vii) AASB 2010-10: Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for First-

time Adopters [AASB 2009–11 & AASB 2010–7] (applies to periods beginning on or after 1 January 2013).

This Standard makes amendments to AASB 2009–11: Amendments to Australian Accounting Standards arising from AASB 9, and AASB 2010–7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). The amendments brought in by this Standard ultimately affect AASB 1: First-time Adoption of Australian Accounting Standards and provide relief for first-time adopters from having to reconstruct transactions that occurred before their transition date. This standard is not expected to impact the Company.

(viii) AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to

Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052] (applicable for annual reporting periods commencing on or after 1 July 2013).

AASB 1053 establishes a revised differential financial reporting framework consisting of two tiers of financial reporting requirements for those entities preparing general purpose financial statements: - Tier 1: Australian Accounting Standards; and - Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements. As a for-profit private sector entity with public accountability, Tier 1 is mandatory and therefore this will have no impact on the group.

The Company does not anticipate the early adoption of any of the above Australian Accounting Standards.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1b Principles of consolidation (i) Subsidiaries

The consolidated financial statements comprise the financial statements of Intermin Resources Ltd and its controlled entity, Black Mountain Gold Ltd. As at 30 June 2011, Intermin Resources Ltd and its subsidiary together are referred to in this financial report as the Group or the Consolidated Entity. Control exists where the Company has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with the Company to achieve the objectives of the Company. All inter-company balances and transactions between entities in the Consolidated Entity, including any unrealised profits and losses have been eliminated on consolidation. Non-controlling interests in the results and equity of the consolidated entities are shown separately in the consolidated statement of comprehensive income and consolidated statement of financial position respectively. Where control of an entity is obtained during a financial year, its results are included in the consolidated statement of comprehensive income from the date on which control commences. They are de-consolidated from the date that control ceases.

(ii) Associates

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted for in the parent entity financial statements using the cost method and in the consolidated financial statements using the equity method, after initially being recorded at cost. The Consolidated Entity‟s share of the post-acquisition profits or losses of associates is recognised in the consolidated statement of comprehensive income, and its share of post-acquisition movements in reserves is recognised in other comprehensive income. The cumulative post-acquisition movements are adjusted against the cost of the investment. Associates are those entities over which the Consolidated Entity exercises significant influence, but not control. When the Consolidated Entity‟s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured long-term receivables, the Consolidated Entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. Unrealised gains on transactions between the Consolidated Entity and its associates are eliminated to the extent of the Consolidated Entity‟s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the assets transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the Consolidated Entity.

(iii) Joint ventures

Joint ventures entered into are not separate legal entities but rather are contractual arrangements between the participants for the sharing of costs and output and do not in themselves generate revenue and profit. Details of the joint ventures are set out in note 23.

1c 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 national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

1c Income tax (continued)

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Current and deferred tax balances attributable to amounts recognised directly in other comprehensive income/equity are also recognised directly in other comprehensive income/equity.

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the reporting date. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The Group is not consolidated for income tax purposes. 1d Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for major business activities as follows: (i) Sale of gold

Revenue from the sale of gold is recognised upon the receipt of money from customers.

(ii) Interest income

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

(iii) Other services

Other debtors are recognised at the amount receivable and are due for settlement within 30 days from the end of the month in which services were provided.

1e Mineral prospects and exploration expenditure thereon

The Group‟s policy with respect to exploration expenditure is to write off all costs unless the directors and management are of the view that there is a reasonable prospect that the costs may be recovered in future income years. Costs that may reasonably be expected to be recovered are capitalised to the statement of financial position as a non-current asset and accumulated separately for each area of interest. Such expenditure comprises net direct cash and where applicable, an apportionment of related overhead expenditure. Each area of interest is limited to a size related to a known or probably mineral resource capable of supporting a mining operation. Expenditure is not carried forward in respect of any area of interest unless the Group‟s right to tenure to that area of interest is current. 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. At 30 June 2011, the Directors considered that the carrying value of the mineral tenement interests of the Consolidated Entity was as shown in the accounts and did not need adjusting. 1f Non-derivative financial assets existing on or acquired after 1 July 2009

The classification and measurement model for financial assets existing on or acquired after 1 July 2009, the date the Group adopted AASB 9, is outlined below.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Financial assets at amortised cost and the effective interest rate method

A financial asset is measured at amortised cost if the following conditions are met:

the objective of the Group‟s business model is to hold the asset to collect contractual cash flows;

the contractual cash flows give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal outstanding; and

the group does not irrevocably elect at initial recognition to measure the instrument at fair value through profit or loss to minimise an accounting mismatch.

Amortised cost instruments are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition the carrying amount of amortised cost instruments is determined using the effective interest method, less any impairment losses. Financial assets at fair value through profit or loss

Financial assets other than equity instruments that do not meet the above amortised cost criteria are measured at fair value through profit or loss. This includes financial assets that are held for trading and investments that the Group manages based on their fair value in accordance with the Group‟s documented risk management and/or investment strategy. Equity instruments are measured at fair value through profit or loss unless the Group irrevocably elects at initial recognition to present the changes in fair value in other comprehensive income as described below. Upon initial recognition, financial assets measured at fair value through profit or loss are recognised at fair value and any transaction costs are recognised in profit or loss when incurred. Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss. 1g Impairment of assets

Mining tenements assets and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets 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 flows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. 1h Plant and equipment

Plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit and loss during the financial period in which they are incurred. Depreciation is calculated on a diminishing value basis to write off the net cost of each item of plant and equipment over its expected useful life to the Consolidated Entity. The expected useful lives are as follows: Plant and equipment 5 - 10 years. The assets‟ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (note 1f).

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

1h Plant and equipment (continued)

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the profit and loss. 1i Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement no more than 30 days from the date of recognition. Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off. An allowance account (provision for impairment of trade receivables) is established when there is objective evidence that the Consolidated Entity will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is recognised in the profit and loss. 1j Trade and other payables

These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of the financial year and which are unpaid, together with assets ordered before the end of the financial year. The amounts are unsecured and are usually paid within 30 days of recognition. 1k Employee benefits (i) Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees‟ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Annual leave and sick leave have been accrued as at 30 June 2011. (ii) Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experiences of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. No such employee entitlements exist at 30 June 2011.

(iii) Share-based payments

Share-based compensation benefits are provided to directors through the granting of options. The fair value of options granted by the Group are recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted, which includes any market performance conditions but excludes the impact of any service and non-market performance vesting conditions and the impact of any non-vesting conditions. Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that are expected to vest based on the non-marketing vesting conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1l Cash and cash equivalents

For statement of cashflows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid instruments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position. 1m Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the profit and loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not incremental costs relating to the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility. Borrowings are classified as current liabilities unless the Consolidated Entity has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. 1n Leases

Leases of property, plant and equipment where the entity has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases, including hire purchase agreements, are capitalised at the lease's inception at the lower of fair value of the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other long-term payables. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the asset's useful life and the lease term. 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 profit and loss on a straight-line basis over the period of the lease. 1o Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the reporting date. The quoted market price used for financial assets held by the Company is the current bid price: the appropriate quoted market price for financial liabilities is the current ask price. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. 1p Goods and services tax

Revenues, expenses and assets are recognised net of the amount of associated goods and services tax (GST), unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the taxation authority, are presented as operating cash flows.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1q Contributed equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in the cost of acquisition as part of the purchase consideration. If the entity reacquires its own equity instruments, e.g. as the result of a share buy-back, those instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly in equity. 1r Provisions

Provisions for legal claims recognised when the Group has a present legal obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.

1s Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the steering committee that makes strategic decisions. 1t Borrowing costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the assets for its intended use or sale. Other borrowing costs are expensed. 1u Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusted 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.

1v Rehabilitation costs

The Group‟s mining, extraction and processing activities give rise to obligations for site rehabilitation. Rehabilitation obligations can include facility decommissioning and dismantling; removal or treatment of waste materials; land rehabilitation; and site restoration. The extent of work required and the associated costs are estimated based on feasibility estimates using current restoration standards and techniques. Provisions for the cost of each rehabilitation program are recognised at the time that environmental disturbance occurs.

Rehabilitation provisions are initially measured at the expected value of future cash flows required to rehabilitate the relevant site.

At each reporting date the rehabilitation liability is re-measured to account for any new disturbance, updated cost estimates, changes to the estimated lives of operations and new regulatory requirements.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

2011

$

2010

$

2 REVENUE

Sales revenue from continuing operations

Rock and sand 9,000 9,000

Other revenue

Interest income 94,736 128,625

Rental and other income from continuing operations 96,688 120,896

200,424 258,521

3 OTHER INCOME

Gain on sale of investments 1,968,500 347,874

Gain on sale of assets 10,000 -

Other income 125,603 -

2,104,103 347,874

4 EXPENSES

Profit/(loss) before income tax includes the following specific expenses:

Depreciation 76,996 95,555

Research and development - 466,329

Exploration expenditure written off 20,034 685,718

Net change in fair value on financial assets at fair value through profit or loss (4,150,895) 1,194,274

Impairment loss on tenements 73,919 342,806

Rental expenditure (101,862) 108,136

5. SEGMENT INFORMATION

Management has determined the operating segments based on the reports reviewed by the Board that are used to make strategic decisions.

The Board considers that the reportable segments are defined by the nature of the exploration activities. As such there

are two reportable segments being Vanadium/Molybdenum tenements and Gold tenements.

2011

Vanadium/ Molybdenum

Gold Total

$ $ $

Revenue - - -

Exploration expenditure - (93,953) (93,953)

Loss before Income tax - (93,953) (93,953)

Total segment assets 376,326 3,653,782 4,030,108

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5. SEGMENT INFORMATION (continued)

2010

Vanadium/ Molybdenum

Gold Total

$ $ $

Revenue - - -

Exploration expenditure (585,025) (909,828) (,1,494,853)

Loss before Income tax (585,025) (909,828) (1,494,853)

Total segment assets - 1,596,481 1,596,481

5a Segment revenue

Segment revenue reconciles to revenue from continuing operations as follows:

2011 2010

$ $

Segment revenue - -

Interest revenue 94,736 128,625

Other revenue 105,688 129,896

Revenue from continuing operations 200,424 258,521

5b Segment loss

Segment loss reconciles to Profit/(Loss) before income tax is as follows:

Segment loss before income tax (93,953) (1,494,853)

Interest revenue 94,736 128,625

Unallocated costs net of other revenue consisting of:

Impairment loss on available-for-sale financial asset - -

Net change in fair value on financial assets at fair value through profit and loss 4,150,895 (1,194,274)

Impairment loss on tenements (73,919) (342,806)

Employee benefits expense (202,633) (248,217)

Gain on sale of investments 1,968,500 347,874

Other costs net of other revenue (72,327) (70,991)

Profit/(Loss) after income tax 5,845,218 (2,531,836)

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5. SEGMENT INFORMATION (continued)

2011 2010

$ $

5c Segment assets

Segment assets reconcile to total assets as follows:

Segment assets 4,030,108 1,596,481

Unallocated assets consisting of:

Financial assets though profit or loss 6,066,944 4,179,009

Trade and other receivables 3,960,092 1,099,782

Cash and cash equivalents 1,974,699 257,328

Property, plant and equipment 365,629 396,125

Other 120,000 167,035

Total assets 16,517,472 7,695,760

5d Segment liabilities

The Group‟s liabilities are not reported to management on an individual segment basis, but rather reported on a

consolidated basis.

6 INCOME TAX

6a Income tax expense/(benefit):

Current tax - (181,425)

Deferred tax - -

Under (over) provided in prior years - -

- (181,425)

Profit/(Loss) from continuing operations before income tax expense 5,845,218 (2,713,261)

Tax at the Australian tax rate of 30% (2010: 30%) 1,753,565 (759,551)

Tax effect of amounts which are not deductible (taxable) in calculating taxable income :

Non taxable revenue - -

Other non deductible items (6,495) 762,706

Non deductible exploration expenses - -

Other non taxable items (1,700,570) (324,856)

Tax losses recouped - -

Tax losses not recognised (utilised) (46,500) 321,701

Income tax expense/(benefit) - (181,425)

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2011

$ 2010

$

6 INCOME TAX (continued)

6b The Directors estimate that the potential deferred tax asset at 30 June 2011 in

respect of tax losses not brought to account is $1,030,119 (2010: $1,792,060).

The deferred tax liability arising from capitalised exploration costs and licence acquisitions have been recognised and offset by the deferred tax asset balance above.

This benefit for tax losses will only be obtained if:

o the Consolidated Entity derives income of a nature and amount sufficient to enable the benefit from the deductions for the loss to be realised;

o the Consolidated Entity continues to comply with the conditions for deductibility imposed by the law; and

o no changes in tax legislation adversely affect the Consolidated Entity in realising the benefit from the deductions for the losses.

6c The Directors estimate that the potential deferred tax asset at 30 June 2011,

other than in respect of tax losses, not brought to account is $35,100 (2010: $34,200).

The Directors estimate that the potential deferred tax liability at 30 June 2011, on share revaluations, not brought to account is $1,276,979 (2010: $465,914).

This group is not taxed as a consolidated group.

7 CURRENT ASSETS

Cash and cash equivalents

Cash at bank and in hand 1,974,699 257,328

1,974,699 257,328

Reconciliation to cash at the end of the year

The above figures are reconciled to cash at the end of the financial year as shown in the cash flow statement as follows:

Balances as above 1,974,699 257,328

Balances per cash flow statement 1,974,699 257,328

Cash at bank and on hand

These are non-interest bearing.

Term deposits (Note 8)

The deposits have maturity periods of between 3 and 12 months, but can be readily convertible to cash at short notice, at interest rates between 6.10% and 6.20% (2010: 6.0% and 6.8%). Refer to note 29 re risk exposures. Term deposits with a maturity over three months are included in current receivables.

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Effective interest rates and credit risk

Information concerning the effective interest rate and credit risk of both current and non-current receivables is set out below.

Interest rate risk

All receivable balances are non-interest bearing.

Credit rate risk

There is no concentration of credit risk with respect to current and non-current receivables. Refer to note 29 for further information on the Consolidated Entity‟s risk management policies. Due to short term nature, fair value approximates carrying value.

9 NON-CURRENT ASSETS

Financial assets at fair value through profit or loss

9a Shares in listed companies at market value 6,066,944 2,892,216

Included is $5,680,748 (2010: $2,163,963) of shares held in Reward Minerals Ltd, a Director-related party entity (note 25). All financial assets at fair value through profit or loss are denominated in Australian or Sterling currency. Refer to Note 29 for further information concerning the price and foreign currency risk.

9b Shares in associate - 1,286,793

The share in associate relates to Jinka Minerals Ltd, an unlisted Public Company. Jinka Minerals Ltd has a related director, Dr Michael Ruane. The Company acquired its shareholding in Jinka Minerals Ltd on 12 April 2010. During the second half of the year Kentor Gold Ltd made a takeover offer for the Jinka shares and options which was accepted by the Board. The takeover was completed in May 2011 realising the sum of $2,943,872. At 30 June 2011, the Company owns 0% (2010: 35.20%) of Jinka Minerals Ltd.

2011

$ 2010

$

8 CURRENT ASSETS

8a Trade and other receivables

Trade receivables 247,898 65,047

Other receivables 142,735 49,028

Prepayment and other receivables 14,495 16,883

Accrued interest 39,964 23,824

Term deposit – maturity over 3 months 3,460,000 850,000

Term deposit – bonds 55,000 95,000

3,960,092 1,099,782

There are no receivables past due but not impaired.

There are no impaired trade receivables or any allowance for impairment against trade receivables.

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2011

$ 2010

$

10 NON- CURRENT ASSETS

Other financial assets

Security deposits 120,000 167,035

120,000 167,035

The security deposits arise from monies held in trust accounts or lodged with appropriate authorities in relation to mining tenements held. The Consolidated Entity has restricted access to these funds, but they are expected to be reimbursed in the future.

11 NON-CURRENT ASSETS – PROPERTY, PLANT & EQUIPMENT & EXPLORATION ASSETS

Plant and equipment at cost 1,617,653 1,571,153

Accumulated depreciation and impairment (1,252,024) (1,175,028)

Total plant and equipment 365,629 396,125

Mining tenements 4,030,108 1,596,481

4,395,737 1,992,606

RECONCILIATIONS

11a Plant and equipment

Carrying amount at beginning of the year 396,125 488,257

Additions 36,500 3,423

Gain on plant sold 10,000 -

Depreciation (76,996) (95,555)

Carrying amount at end of year 365,629 396,125

11b Mining tenements

Carrying amount at beginning of the year 1,596,481 913,776

Additions 2,507,546 1,025,511

Write-downs of values (73,919) (342,806)

Carrying amount at end of year 4,030,108 1,596,481

Impairment of mining tenements

An impairment loss of $73,919 (2010: $342,806) has been recorded against the mining tenements to reduce the carrying value to what is anticipated to be at least the market value of the tenements as at 30 June 2011. The expenditure above relates principally to the exploration and evaluation phase. The ultimate recoupment of this expenditure is dependent upon the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

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Note

2011

$ 2010

$

12 CURRENT LIABILITIES – TRADE AND OTHER PAYABLES

Creditors unmarketable parcel - 10,562

Trade payables 236,229 181,049

Accrued expenses 17,000 14,888

Accrued employee entitlements 7,038 10,639

260,267 217,138

13 CURRENT LIABILITIES – BORROWINGS

Unsecured

Loan from controlled entity - -

Loan from related party 20d - 50,000

Total secured current borrowings - 50,000

Interest rate exposure

Details of the Company‟s exposure to interest rate changes on borrowings are set out in note 29. There is no interest payable on loans from the controlled entity, nor related party and there is no set repayment term.

Fair value disclosures

The fair value of the borrowings of the Consolidated Entity are consistent with their carrying values.

14 NON-CURRENT LIABILITIES – PROVISIONS

Rehabilitation of mine site 100,000 100,000

100,000 100,000

Provision is made for the future estimated rehabilitation costs in relation to the White Range mine site until the bond is returned.

15 SHARE BASED PAYMENTS

Share based payment expense (Capitalised as exploration expenditure) 324,000 -

324,000 -

On 20 June 2011, 2,000,000 shares and options were granted as an introduction fee as part of the acquisition of the Calcine Tailings (See note 23h). The exercise price was 18¢ with an expiry date of 31 May 2012. The value per option of the listed options at 20 June was deemed to be the closing bid price of 2.7¢ and the value per share per the closing bid price on 20 June was 13.5¢.

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2011 No.

2010 No.

2011 $

2010 $

16 CONTRIBUTED EQUITY

16a Share capital

At the beginning of the year 91,844,625 91,821,185 15,738,558 15,734,339

Options exercised during the year 5 23,440 1 4,219

New shares issued 22,961,157 - 2,755,567 -

Capital raising costs - - (96,203) -

At the end of the financial year 114,805,787 91,844,625 18,397,923 15,738,558

Shares to be issued (See note 23h) 2,000,000 - 270,000 -

Total Contributed Equity 116,805,787 91,844,625 18,667,923 15,738,558

16b Terms and conditions of contributed equity

Ordinary shares

Ordinary shares have no par value. Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.

16c Options

At the beginning of the year 22,503,078 -

Options issued during the year - 22,526,518

Options exercised during the year (5) (23,440)

At the end of the financial year 22,503,073 22,503,078

17 RESERVES AND ACCUMULATED LOSSES

17a (i) Asset revaluation reserve

Opening balance 144,976 144,976

Closing balance 144,976 144,976

(ii) Available for sale revaluation reserve

Opening balance - 1,358,487

Revaluation of investments - -

Transferred to net profit – gross - -

Re-classification due to early adoption of AASB 9 - (1,358,487)

Closing balance - -

Total reserves 144,976 144,976

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2011

$ 2010

$

17 RESERVES AND ACCUMULATED LOSSES (continued)

17a (iiI) Share option reserve

2,000,000 Options to be issued as a result of the 20 June 2011 agreement with Apex Minerals NL. Refer to Note 23h.

54,000 -

54,000 -

17b Accumulated losses

Opening balance (8,554,912) (7,381,563)

Re-classification due to early adoption of AASB 9 - 1,358,487

Profit/ (loss) for the year 5,845,218 (2,531,836)

Closing balance (2,709,694) (8,554,912)

18 EARNINGS PER SHARE

Operating profit/(loss) after tax attributable to members of Intermin Resources Ltd 5,845,218 (2,531,836)

Basic earnings (loss) per share 5.99 cents (2.76 cents)

Diluted earnings (loss) per share 5.99 cents (2.76 cents)

Weighted average number of ordinary shares outstanding during the year used in the calculation of basic earnings per share.

97,584,918 91,824,169

Weighted average number of ordinary shares outstanding during the year used in the calculation of diluted earnings per share. 22,503,073 options outstanding at 30 June 2011 were not included in weighted average number of ordinary shares in calculation of diluted earnings per share as the exercise price ($0.18) is higher than the average share price ($0.15) for the year ending 30 June 2011.

97,584,918 91,824,169

19 REMUNERATION OF AUDITORS

Remuneration for audit services and review of the financial reports of the parent entity or any entity in the Consolidated Entity to BDO Audit (WA) Pty Ltd: No other fees were paid or payable for services provided by the auditor of the parent, related practices or non-related audit firms.

30,148 22,534

20 KEY MANAGEMENT PERSONNEL DISCLOSURES

20a Details of remuneration

Short-term benefits 155,500 216,102

Post-employment benefits 11,000 14,238

166,500 230,340

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 20 KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)

20b Directors interests in the shares of the company Shares

The number of shares in the Company held during the financial year by each director of Intermin Resources Ltd, including their personally related parties, are set out below. There were no shares granted as compensation during the year.

2011 Balance at the start of the year

Received during the year on the

exercise of options Other changes during the year

Balance at the end of the year

P H Hunt 3,339,572 - 834,893 4,174,465

M Ruane 32,127,348 - 7,385,475 39,512,823

J Brien 1,235,000 - 308,750 1,543,750

36,701,920 - 8,529,118 45,231,038


Received during the year on the

exercise of options Other changes during the year


P H Hunt 3,339,572 - - 3,339,572

M Ruane 30,506,168 - 1,621,180 32,127,348

J Brien 1,235,000 - - 1,235,000

35,080,740 - 1,657,180 36,701,920

20c Options

The number of options in the Company held during the year by each director of Intermin Resources Ltd, including their personally related parties, are set out below.


Options exercised during the year

Options transferred during the year


P H Hunt 834,893 - - 834,893

M Ruane 7,963,088 - (600,000) 7,363,088

J Brien 308,750 - - 308,750

9,106,731 - (600,000) 8,506,731


Options exercised during the year

Options transferred during the year


P H Hunt 834,893 - - 834,893

M Ruane 7,963,088 - - 7,963,088

J Brien 308,750 - - 308,750

9,106,731 - - 9,106,731

Intermin Resources Ltd issued 22,526,518 options on 3 May 2010, with an exercise price of $0.18 cents and an expiry date of 31 May 2012. They were issued to eligible shareholders pursuant to the Bonus Option issue announced on 14 April 2010.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 20 KEY MANAGEMENT PERSONNEL DISCLOSURES (continued) 20d Loans and other transactions with key management personnel

There were no loans either to or from key management personnel at 30 June 2011 or 30 June 2010, except for a loan of $50,000 made to Intermin Resources Ltd by Dr M Ruane, a Director of the Company, which was repaid in March 2011. Current liabilities at 30 June 2011 was $19,500 payable to key management personnel (2010: $21,450). See note 25 for information on other transactions with key management personnel and related parties.

2011

$ 2010

$

21 STATEMENT OF CASH FLOWS

21a Reconciliation of net cash from operating activities to Profit/(Loss) after income tax

Operating Profit/(Loss) after income tax 5,845,218 (2,531,836)

Depreciation 76,996 95,555

Net change in fair values on financial assets at fair value through profit or loss (4,150,895) 1,194,274

Gain on disposal of investments (1,968,500) (347,874)

Gain on disposal of plant (10,000) -

Impairment of tenements - 342,806

Movement in assets and liabilities:

Receivables (292,698) 3,043

Prepayments 2,388 (847)

Trade creditors and accruals 53,689 (80,170)

Net cash outflow used in operating activities (443,802) (1,325,049)

21b Non-cash investing and financing activities

There were no non-cash and financing activities during the year.

22 FINANCE FACILITIES

No credit standby facility arrangement or loan facilities existed at 30 June 2011 or 30 June 2010.

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Notes to and Forming Part of the Consolidated Financial Statements 23 JOINT VENTURES

Intermin Resources Ltd and the controlled entity Black Mountain Gold Ltd (BMG) have interests in unincorporated joint ventures as follows:

Name of Joint Venture Notes Exploration For

2011 2010

Banyan/Binduli a Gold 85% 85%

White Flag b Gold 43.9% 43.9%

Lehman‟s c Gold 10% free carried

10% free carried

Otto Bore d Gold 3% gross

gold royalty 3% gross

gold royalty

Nanadie Well e Copper 51% 51%

Menzies f Gold 50% 50%

Menzies g Gold 0% 0%

Wiluna h Calcine Tailings 0% 0%

A joint venture is not a separate legal entity. It is a contractual arrangement between the participants for the sharing of costs and output and does not in itself generate revenue and profit. 23a Banyan Pty Ltd has a 15% free carried interest in certain Binduli Project tenements. The interests are IRC 85%,

Banyan 15%. 23b A joint venture known as the White Flag Joint Venture between Intermin Resources Ltd, North Star Resources

NL and BAP commenced in April 1999, whereby Barrick Asia Pacific (BAP) may earn a 51% interest in the White Flag tenements by expending $0.4 million on exploration by March 2003. In 2002 North Star Resources NL sold its interest to Intermin and BAP and at that time the Joint Venturers agreed that respective interests in the JV would be 43.9% Intermin and 56.1% BAP. The Joint Venture partners have agreed to contribute to ongoing exploration costs pro rata with their respective interests (43.9% : 56.1%). BAP is the Manager of the Joint Venture.

23c This project was joint ventured to Lionore Australia (Wildara) NL (Lionore) who had earned a 60% interest in the

tenements by expending $400,000 before December 2002. Lionore increased its interest to 80% by further expenditure of $250,000 in the following twelve months. Thereafter Intermin had the right to contribute its 20% of funding or reduce to a 10% free-carried interest (to bankable stage). Lionore reported expenditure in excess of $800,000 and Intermin elected to reduce to a 10% free-carried interest in the project.

23d BAP, through its subsidiary Plutonic Operations Pty Ltd, earned a 75% interest in the Otto Bore Tenements.

Intermin elected in 2000 to assign the tenements to Plutonic and revert to a 3% gross gold royalty. 23e On 21 June 2003, the Company executed a Farm In Agreement with WS Hitch, KW Wolzak and Tyson

Resources Pty Ltd (HWT) to explore the Nanadie Well prospect located near Sandstone in Western Australia. The Company may increase its interest to 80% by continuing exploration and taking the project to Bankable

Feasibility status. Thereafter each of the joint venture partners are required to contribute pro rata to ongoing expenditure or dilute its interest in accordance with a standard industry formula. Should HWT not contribute to expenditure and dilute they will revert to a free carried 10% interest in the project.

Director M Ruane has declared an interest in Tyson Resources Pty Ltd which currently is the beneficial owner of

20/100ths shares in E51/1040 and would dilute to 8/100ths should Intermin earn an 80% interest in the Licence or 4/100ths if Intermin‟s interest increases to 90% under the dilution provisions.

The Company has expended in excess of $350,000 and thereby earned a 51% interest in Exploration Licence

51/1040.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 23 JOINT VENTURES (continued) 23f In December 2008, the Company, via its subsidiary Black Mountain Gold Ltd (BMG) executed a Farm-in

Agreement with Regal Resources Ltd whereby BMG may earn an 80% interest in Tenements held by Regal in the Menzies district of Western Australia by expenditure of $1,200,000 on exploration of the Tenements over a period of three years. Approval for the transaction was obtained on 29 May 2009 from shareholders of Regal at a General Meeting.

As at 30 June 2011, BMG had expended in excess of $1,200,000 and thereby is entitled to an 80% interest in the Menzies Project under the terms of the Farm In Agreement.

23g On 20 July 2009, BMG entered into a joint venture agreement with Wayne Craig Van Blitterswyk whereby BMG

may earn a 70% interest in Tenements held by Wayne Craig Van Blitterswyk in the Menzies district of Western Australia by expenditure of $200,000 on exploration of the Tenements over a period of three years.

BMG is continuing exploration and expects to have earned a 70% interest under the terms of the joint venture

agreement prior to the year end 2011.

23h On 20 June 2011, Intermin executed a Licence Deed and an Agreement for Sale of Calcine Tailings with Apex

Minerals NL and Orex Mining Pty Ltd whereby it acquired the Wiluna Calcine Tailings stockpile which is estimated to contain over 370,000 tonnes of material grading ca 5.0g/t of gold (59,600 ounces). The Calcines are the residues from cyanidation of roasted sulfide concentrates produced from Wiluna refractory gold ores prior to WWII.

Consideration for acquisition of the Calcine Tailings from Apex Minerals NL was the sum of $20,000 plus a

royalty of $4 per tonne of material moved from its current location. A $900,000 prepayment of royalty was paid to Apex on 20 June 2011. The Company also paid an introduction fee to a private company, Orex Mining Pty Ltd for arranging the sale and providing technical and testwork information to Intermin in respect of the project.

The introduction fee involved the issue of two million fully paid Intermin shares and two million options

exercisable at 18 cents by 31 May 2012 which was settled on 18 August 2011. The value of the Consideration was quantified at $324,000 and has been recorded in the financial statements (refer to note 15). The shares however were issued subsequent to the year end.

24 COMMITMENTS FOR EXPENDITURE

24a Exploration commitments

In order to maintain current rights of tenure to exploration and mining tenements, the Consolidated Entity has the following discretionary exploration expenditure requirements up until expiry of leases. These obligations, which may be met wholly or in part by joint venture farminees, and which are subject to renegotiation upon expiry of the leases, are not provided for in the financial statements and are payable:

2011

$ 2010

$

Not later than one year 2,000,000 1,244,000

Later than one year but not later than two years 2,000,000 1,244,000

Later than two years but not later than five years 2,500,000 1,250,000

Later than five years 2,500,000 1,250,000

9,000,000 4,988,000

24b Joint venture commitments

The Consolidated Entity has no commitments in respect of exploration joint ventures to which it is farming in and which are not provided for in the financial statements. 24c Lease commitments

Finance leases

The Consolidated Entity has no finance lease commitments.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 24c Lease commitments (continued) Operating leases

The Consolidated Entity leases office premises under an operating lease expiring in five years. The lease has various terms and renewal rights and commenced on 01 June 2009.

2011

$ 2010

$

Commitments for minimum lease payments in relation to operating leases are payable as follows:

Within one year 110,550 103,095

Later than one year but not later than five years 452,720 412,380

Later than five years - -

563,270 515,475

25 RELATED PARTIES 25a Directors / Key management personnel

The Directors who held office at any time during the year are as follows: P H Hunt, M Ruane and J W Brien. Information on directors' remuneration is detailed in Page 26. Further information is disclosed in Note 20 on key management personnel. Dr M Ruane is associated with Kesli Chemicals Pty Ltd, a company which received payments of $78,500 (2010: $82,500) for consulting services. He is also associated with Reward Minerals Ltd, for whom Intermin Resources Ltd provided services totalling $119,495 (2010: $240,786) which Reward Minerals reimbursed Intermin Resources Ltd for. There is a balance of $127 (2010: $22,497) owing by Reward Minerals Ltd to Intermin Resources Ltd at the year end. 25b Subsidiaries

See note 26 for details. 26 INVESTMENT IN CONTROLLED ENTITIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiary in accordance with the accounting policy described in note 1(b):

Equity Holding

Name of Entity Country of Corporation Class of Shares 2011 % 2010 %

Black Mountain Gold Ltd Australia Ordinary 100 100

27 CONTINGENT LIABILITIES

27a Black Mountain Gold NL has a contingent liability for the rehabilitation of the Double A mine site. The liability is

secured by an environmental bond of $40,000 lodged in favour of the Minister for Mines in respect of the Double A mine tenements. Norilsk Nickel Wildara Pty Ltd (formerly Lionore) now holds a 90% interest in these tenements and thereby a corresponding liability for rehabilitation costs.

27b Native title claims have been made with respect to areas which include tenements in which Intermin Resources

Ltd and certain controlled entities have interests. The entities are unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not, and to what extent, the claims may significantly affect them or their projects.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 27 CONTINGENT LIABILITIES (continued)

27c On 20 June 2011, Intermin executed a Licence Deed and an Agreement for Sale of Calcine Tailings with Apex

Minerals NL and Orex Mining Pty Ltd (refer to Note 23h). Intermin have agreed to pay $4 per tonne of material moved from its current location. A $900,000 prepayment and royalty was paid to Apex on 20 June 2011. Should Intermin move more tonnes than the value of this prepayment it will be required to pay additional royalties to Apex. At the date of this report, Intermin are unable to quantify what this cost may be,

27d Security bonds are held with respect to certain mining tenements held or applied for. Bonds are set by the

Department, however there is no certainty that such bonds will be adequate to cover any environmental damage. Intermin Resources Ltd and its controlled entities are not able to determine the nature or extent of any further liability in view of changing environmental requirements.

28 EVENTS OCCURRING AFTER REPORTING DATE

On 18 August 2011, the Company issued two million fully paid Intermin shares and two million options exercisable at 18 cents by 31 May 2012 to Orex Mining Pty Ltd in relation to the Wiluna Calcine Project, see Note 23h. 29 FINANCIAL RISK MANAGEMENT

The Consolidated Entity's activities expose it to a variety of financial risks; market risk (including fair value interest rate risk foreign currency risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Consolidated Entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Consolidated Entity. Risk management is carried out by the Board of Directors, who identify, evaluate and manage financial risks as they consider appropriate. 29a Market risk

Price risk

The Consolidated Entity is exposed to equity securities price risk. This arises from investments held by the Consolidated Entity and classified on the statement of financial position as financial assets at fair value through profit and loss of $6,066,944 (2010: $2,892,216). The investments assets are classified as financial asset at fair value through profit and loss and any changes to their value is recognised in profit and loss when incurred. The group have used an equity price change of 70% upper and lower representing a reasonable possible change based upon the weighted average historic share price volatility over the last 12 months on the investment portfolio held. If the value of the investments held had moved in accordance with the volatility, and all other factors kept constant, the impact on the profit and loss for the year ended 30 June 2011 would have been ± $4,246,860 (2010: ±$3,685,228). Fair value interest rate risk

Refer to (e) below. 29b Credit risk

The Consolidated Entity has no significant concentrations of credit risk. The Consolidated Entity has policies in place to ensure that sales of products are made to customers with an appropriate credit history. The Consolidated Entity has policies that limit the amount of credit risk exposure to any one financial institution. At all times during the financial years under review the Group‟s cash and cash equivalents maintained at bank or on deposit were invested with the National Australia Bank Limited or Australia and New Zealand Bank Limited. The Group recognises the credit risk in relation to its cash at bank, short-term deposits and receivables. However, this risk is minimised as the cash is deposited only with AA or greater (Moodys) rated financial institutions. The board considers these entities have sufficient financial strength to minimise the credit risk exposure of the Group and so has not seen fit to diversify its investments. The Group does not have any other significant credit risk exposure to a single counter party or any other group or counter parties having similar characteristics. 29c Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through the ability to raise further funds on the market and the ability to close-out market positions. Due to the dynamic nature of the underlying businesses, the Board aims at maintaining flexibility in funding through management of its cash resources. The group does not have any loan facilities in place, as there is no requirement at the present time.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 29 FINANCIAL RISK MANAGEMENT (continued) 29c Liquidity risk (continued)

Maturities of financial liabilities

30 June 2011 Group

Less than 6

months

6 – 12 months

Between 1 and 2 years


Over 5 years

Total contractual cash flows

Carrying Amount (assets)/ liabilities

Non-derivatives $ $ $ $ $ $ $

Non-interest bearing 253,229 - - - - 253,229 253,229

Variable rate - - - - - - -

Fixed rate - - - - - - -

Total non derivatives 253,229 - - - - 253,229 253,229

30 June 2010 Group

Less than 6

months

6 – 12 months



Over 5 years

Total contractual cash flows

Carrying Amount (assets)/ liabilities

Non-derivatives $ $ $ $ $ $ $

Non-interest bearing 206,499 - 50,000 - - 256,499 256,499

Variable rate - - - - - - -

Fixed rate - - - - - - -

Total non derivatives 206,499 - 50,000 - - 256,499 256,499

29d Cash flow and fair value interest rate risk

As the Consolidated Entity has no significant variable interest-bearing assets, the Consolidated Entity's income and operating cash flows are not exposed to changes in market interest rates. 29e Fair value measurements

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. AASB 7 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following fair

value measurement hierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) (b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly

(as prices) or indirectly (derived from prices) (level 2), and (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).

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29 FINANCIAL RISK MANAGEMENT (continued)

29e Fair value measurements (continued)

The following table presents the group‟s assets and liabilities measured and recognised at fair value at 30 June 2011 and 30 June 2010:

At 30 June 2011 Level 1 Level 2 Level 3 Total

Assets


- Trading Derivatives - - - -

- Trading Securities 6,066,944 6,066,944

Available- for- sale financial assets

- Listed investments - - - -

- Unlisted investments - - - -


- Security deposits 120,000 - - 120,000

Total assets 6,186,944 - - 6,186,944

At 30 June 2010 Level 1 Level 2 Level 3 Total

Assets


- Trading Derivatives - - - -

- Trading Securities 2,892,216 2,892,216

Available- for- sale financial assets

- Listed investments - - - -

- Unlisted investments - - 1,286,793 1,286,793


- Security deposits 167,035 - - 167,035

Total assets 3,059,250 - 1,286,793 4,346,043

The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

Specific valuation techniques used to value financial instruments include:

The use of quoted market prices or dealer quotes for similar instruments.

The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.

The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to present value.

Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments.

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 29 FINANCIAL RISK MANAGEMENT (continued) 29f Capital risk management

In employing its capital (or equity as it is referred to on the statement of financial position) the Group seeks to ensure that it will be able to continue as a going concern and provide value to shareholders by way of increased market capitalisation. The Group has invested its available capital in intangible assets such as acquiring and exploring mining tenements and in investments. As is appropriate at this stage, the Group is funded predominantly by equity. 30 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions 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) Exploration & Evaluation Expenditure

The Group‟s accounting policy for exploration and evaluation is set out in note 1(e). If, after having capitalised expenditure under this policy, the Directors conclude that the Group is unlikely to recover the expenditure by future exploration or sale, then the relevant capitalised amount will be written off to the Statement of Comprehensive Income. 31 PARENT INFORMATION 2011

$ 2010

$

Current assets 7,479,235 2,412,044

Non-current assets 9,020,053 5,885,954

Total assets 16,499,288 8,297,998

Current liabilities 242,083 206,490

Non-current liabilities 100,000 100,000

Total liabilities 342,083 306,490

Net assets 16,157,205 7,991,508

Equity

Contributed equity 18,397,923 15,738,558

Reserves 144,976 144,976

Accumulated losses (2,385,694) (7,892,026)

Total equity 16,157,205 7,991,508

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NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 31 PARENT INFORMATION (continued)

2011

$ 2010

$

Profit/ (Loss) for the year 5,506,330 (1,935,160)

Other comprehensive income - -

Profit/ (Loss) for the year and total comprehensive income attributable to owners of Intermin Resources Ltd 5,506,330 (1,935,160)

2011 2010

Basic earnings per share 5.64 cents (2.11) cents

Diluted earnings per share 5.64 cents (2.11) cents

22,503,073 options outstanding at 30 June 2011 were not included in weighted average number of ordinary shares in calculation of diluted earnings per share as the exercise price ($0.18) is higher than the average share price ($0.15) for the year ending 30 June 2011. Controlled entities

Intermin Resources Limited is the ultimate parent entity of the controlled entities.

Equity Holding

Name of Entity Country of Corporation Class of Shares 2011 % 2010 %

Black Mountain Gold Ltd Australia Ordinary 100 100

The results of the controlled entities inclusion in the consolidated statement of comprehensive income is a gain of $8,402 (2010: Loss $596,676). There are no commitments for the parent company.

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INDEPENDENT AUDIT REPORT TO THE MEMBERS OF INTERMIN RESOURCES LTD

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INDEPENDENT AUDIT REPORT TO THE MEMBERS OF INTERMIN RESOURCES LTD

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SHAREHOLDER INFORMATION Additional information required by the Australian Stock Exchange Limited Listing Rules, and not disclosed elsewhere in this report. SHAREHOLDINGS

The numbers of ordinary shares held by the substantial shareholders as at 31 August 2011 were: Kesli Chemicals Pty Ltd <Ruane Super Fund A/C> 25,352,567 Tyson Resources Pty Ltd 13,489,056 Bill Brooks Pty Ltd <Bill Brooks Super Fund A/C> 10,599,617 CLASS OF SHARES AND VOTING RIGHTS

As at 31 August 2011 there were 803 holders of the ordinary shares and 689 holders of listed options with expiry 31 May 2012 of the Company. The voting rights attached to the shares are:

at a meeting of members or classes of members each member entitled to vote may vote in person or by proxy or by attorney; and

on a show of hands every person present who is a member has one vote, and on a poll every person present in person or by proxy or attorney has one vote for each ordinary share held.

DISTRIBUTION OF SHAREHOLDERS (as at 31 August 2011)

Category Number of Shareholders

1 – 1,000 46

1,001 – 5,000 93

5,001 – 10,000 137

10,001 – 100,000 414

100,001 – over 113

The number of shareholders holding less than a marketable parcel as at 31 August 2011 was 113. DISTRIBUTION OF OPTIONHOLDERS (as at 31 August 2011)

Category Number of Optionholders

1 – 1,000 99

1,001 – 5,000 322

5,001 – 10,000 104

10,001 – 100,000 138

100,001 – over 26

The number of optionholders holding less than a marketable parcel as at 31 August 2011 was 583.

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SHAREHOLDER INFORMATION TWENTY LARGEST SHAREHOLDERS (as at 31 August 2011)

Name Number of Ordinary

Shares Held Percentage of Capital Held

Kesli Chemicals Pty Ltd <Ruane Super Fund A/C> 25,352,567 21.70

Tyson Resources Pty Ltd 13,489,056 11.55

Bill Brooks Pty Ltd <Bill Brooks super Fund A/C> 10,599,617 9.07

Mr Michael Alan Oddy 4,197,078 3.59

Hunt Corporate Investments Pty Ltd <Peter Hunt Super Fund A/C> 4,174,465 3.57

Mr Chris Carr and Mrs Betsy Carr 3,000,000 2.57

Mr Simon Beekenkamp 2,372,465 2.03

Orex Mining Pty Ltd 2,000,000 1.71

Oceanbay Nominees Pty Ltd 1,543,750 1.32

Scintilla Strategic Investments Limited 1,505,000 1.29

Mr Peter Howells 1,500,000 1.28

Mr Michael Ruane and Mrs Irene Margaret Ruane 1,282,075 1.10

JP Morgan Nominees Australia Limited <Cash Income A/C> 1,079,387 0.92

Mr Christopher Alan Herbert 1,000,000 0.86

Mr Peter Steven Efstathis 955,000 0.82

Mr Peter Schofield 928,000 0.79

Mrs Barbara Jean Hawkins 852,500 0.73

Mr Roger Murray Moore 850,000 0.73

Mr Thomas James Giri 800,000 0.68

Romulus Pty Ltd <John Sendziuk S/F A/C> 792,500 0.68

78,273,460 66.99

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SHAREHOLDER INFORMATION TWENTY LARGEST OPTIONHOLDERS (as at 31 August 2011)

Name Number of Options

Held Percentage of Capital Held

Kesli Chemicals Pty Ltd <Ruane Super Fund A/C> 5,083,536 22.59

Tyson Resources Pty Ltd 2,197,812 9.77

Bill Brooks Pty Ltd <Bill Brooks Super Fund A/C> 1,594,925 7.09

Hunt Corporate Investments Pty Ltd <Peter Hunt Super Fund A/C> 834,893 3.71

Miss Bianca S Taveira 725,000 3.22

Mr Robert Lawrence Hawke 608,584 2.70

Mr James Lord 550,359 2.45

Mr Neil Harris 500,000 2.22

Mr Noel McEvoy & Mrs Shelley McEvoy <The ND McEvoy S/F A/c> 500,000 2.22

ABN AMRO Clearing Sydney Nominees Pty Ltd <Custodian A/C> 365,813 1.63

Iris Sydney Holdings Pty Ltd 350,000 1.37

Oceanbay Nominees Pty Ltd 308,750 1.37

Rexbury Nominees Pty Ltd 300,000 1.33

Mr Michael Alan Oddy 277,500 1.23

JP Morgan Nominees Australia Limited <Cash Income A/C> 234,526 1.04

Mrs Rita Brooks & Mr William T Brooks <Brooks Super Fund A/C> 223,849 0.99

Mrs Barbara Jean Hawkins 213,125 0.95

Mr Peter Judocus Smolenaers 203,750 0.91

Bimedent Pty Ltd <Discretionary A/C> 200,000 0.89

Mr Tom James Giri 200,000 0.89

15,472,422 68.57

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159 Stirling Highway PO Box 1104 Nedlands WA 6009 Nedlands WA 6909 acn 007 761 186 abn 88 007 761 186

T 08 9386 9534 | F 08 9386 9473 | E [email protected]

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