half-year financial reports 31 december 2011

AND ITS CONTROLLED ENTITIES

PROMESA LIMITED

ABN 36 124 541 466

Half-Year Financial Reports

31 December 2011

ABN 36 124 541 466

INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

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1. CORPORATE DIRECTORY ......................................................................................................... 3

2. DIRECTORS' REPORT ......................................................................................................... 4-14

3. AUDITOR’S INDEPENDENCE DECLARATION ........................................................................15

4. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ............................................16

5.. CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................17

6. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................18

7. CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................19

8. NOTES TO THE FINANCIAL REPORT ................................................................................ 20-27

9. DIRECTORS' DECLARATION ...................................................................................................28

10. INDEPENDENT AUDITOR’S REVIEW REPORT ................................................................. 29-30

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CORPORATE DIRECTORY

This half-year report covers Promesa Limited and controlled entities (“the Group”) during the half-year

ended 31 December 2011. The Consolidated Group’s functional and presentation currency is AUD ($).

OFFICERS Hersh Solomon Majteles (Non-Executive Chairman)

Ananda Kathiravelu (Executive Director)

Mario E. Bolivar (Non-Executive Director)

Alejandro Calderon (Non-Executive Director)

Philip Re (Company Secretary)

REGISTERED OFFICE C/ Regency Corporate Pty Ltd

Suite 1 GF, 437 Roberts Road

SUBIACO WA 6008

SOLICITORS Steinepreis Paganin

Lawyers and Consultants

Level 4, Next Building

16 Milligan Street

PERTH WA 6000

AUDITORS Bentleys

Level 1, 12 Kings Park Road

WEST PERTH WA 6005

SHARE REGISTRY Advanced Share Registry Ltd

Unit 2, 150 Stirling Highway

NEDLANDS WA 6009

Telephone: (08) 9389 8033

Facsimile: ` (08) 9389 7871

PRINCIPAL PLACE OF BUSINESS Level 28, 140 St Georges Terrace

PERTH WA 6000

Telephone: (08) 9278 2766

Facsimile (08) 9278 2525

WEBSITE www.promesa.com.au

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DIRECTORS’ REPORT

Your Directors submit the financial report of the entity and its controlled entities for the half-year ended

31 December 2011.

Directors

The names of Directors who held office during or since the end of the half-year:

Hersh Solomon Majteles Non-Executive Chairman

Ananda Kathiravelu Executive Director

Mario E. Bolivar Non-Executive Director

Alejandro Calderon Non-Executive Director

Company secretary

Philip Re held the position of company secretary during the financial period.

CORPORATE ACTIVITY

Promesa issued a Prospectus dated 24 May 2011 for the offer of 20,000,000 Shares at an issue price of

$0.60 each and 8,000,000 free attaching Options with an exercise price of $0.20 each to raise up to

$12,000,000. A Supplementary Prospectus dated 2 June 2011 was subsequently issued amending the

term of the Prospectus (together the Prospectus).

On 12 July 2011 the prospectus was closed raising $7,515,000 which was more then the minimum

subscription of $6,000,000.

The Company was reinstated on ASX on 16 August 2011 following compliance with chapter 1 and 2 of the

ASX listing rules.

Promesa has been active on the corporate development front during the half year. Activity included a well-

received presentation of the company’s project at the “South American Diggers Conference” in Sydney in

mid November 2011.

In addition, Promesa was able to increase the area of the concessions held by 267%, from 1,800 to 6,600

ha in the La Libertad province.

Further opportunities are being reviewed by the team in Peru.

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REVIEW OF OPERATION

PERU MINERAL SAC

SUMMARY OF THE PERUVIAN PROJECT

The Company’s Peruvian projects are situated in the northern end of the gold and copper rich Western

Cordillera region in Peru. The Company considers that the concessions are prospective for gold, silver,

copper and associated minerals.

Figure 1 - Project Location Map in Peru

The licences comprise 10 contigous concessions of 6,600ha, and are located in the Otuzco district, about

50 km north-east of Trujillo City which is illustrated in Figure 1 and 2. The Victoadal and Bacata licenses

host the "Cerro Curunday” gold prospect, and the Santa Rosita license hosts the “Santa Rosita” prospect, in

the department of La Libertad, Trujillo.

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Figure 2 - Promesa Concessions in Peru

The Licences are relatively close to world class deposits Yanococha, held by Newmont Mining Corporation

and Lagunas Norte and Pierina, held by Barrick Gold Corporation. These deposits are mutli-million ounces in

scale, best in class project and low cost gold producers for Newmont and Barrick. Figure 3 illustrates that

the Company’s concessions are adjacent to world class mining companies of Barrick and Vale in the La

Libertad region.

Figure 3 - Promesa Concession in Peru compared to other Mining Companies

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The geological model that best fits the mineralization present in the Licenses is that of a possible high-

sulphidation epithermal deposit on the surface, which may include an upper zone of ore oxidized with gold

and a lower zone of primary sulphide ores of gold-copper (with enargite), while the deeper zones may be

typical of porphyry mineralization, which may also host significant gold-copper mineralisation.

Since late 2008, Mineroil (one of the Vendors) had been carrying out exploration work consisting of

geological mapping, rock sampling, trenching and geophysics (magnetometer and induced polarization-

resistivity).

BACATA AND VICTOADAL LICENCES

Work completed and results have demonstrated epithermal gold mineralisation over a strike length of 2.1

km within the Bacata and Victoadal licences namely the Cerro Currunday prospect. The alteration and gold

mineralisation is believed to extend to the south for 1 km into the neighbouring licence. The Bacata and

Victoadal licences display a classic gold/copper porphyry system geology of tertiary age diorite, monzonite

and granite intrusions in Mesozoic marine sediments.

In addition there is evidence of quartz veins, hydro thermal breccias and stockworks with advanced argillic

and phyllic pervasive alteration haloes that correspond to the right environment for epithermal high

sulphidation and porphyry style deposits.

SANTA ROSITA LICENCE

The Santa Rosita Licence is considered a strategic land holding, being positioned to the south and east of

Barrick Gold Corporation’s interest in the area at the northern end of the gold and copper rich Western

Cordillera in the Peruvian Andes.

The Santa Rosita licence lies in a geological setting of sedimentary, volcanic and intrusive rocks of Jurassic

(Mesozoic) age. The intrusive rocks are basic to acid in composition from diorite to grandiorite to monzonite.

The sedimentary rocks forming the Chicama Formation comprise of a sequence of shale and sandstone,

located within an epithermal metallogenic zone and the association of Calipuy volcanics and granitic

intrusions highlight that significant potential exists for the discovery of a new epithermal gold deposit in the

licence area.

The mineralisation within the Santa Rosita licence is associated with pyrite, chalcopyrite disseminated in

veins of silica and gold in quartz veins with sulphides. In addition, other sulphide minerals and alteration

include arsenopyrite, geothite and limonite. Further, macroscopic observation of the rock samples taken in

the Santa Rosita license demonstrate the existence of hydrothermal alteration in the following order of

abundance; propylitic, silica, argillic and potassic alteration.

Fluid inclusion work on the Santa Rosita licence has shown and supports the conclusion that the fracture

filling within the Santa Rosita licence is the result of being in a porphyry system.

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PROJECT UPDATE

Infrastructure

Work has progressed on construction of a 5m wide unsealed road from La Questa to Cerro Curunday. It is

expected to be completed during the first quarter of 2012. The road is currently 80% completed. It will allow

for increased efficiencies for logistics and transport to enable quick and easy access for personnel, fuel

cartage and transport of equipment. It is worth noting that the construction of the road did not delay the

commencement of the drilling campaign (ref to Figure 4).

Figure 4 - Scaling Team on the Road Construction from La Questa to Cerro Curunday

The camp is now fully operational and is accommodating up to 30 personnel at Cerro Curunday as

illustrated in Figure 5.

Figure 5 - New Exploration Camp at Cerro Curunday

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EXPLORATION

Work at Cerro Curunday and Las Huacas is divided between the current drill program at Cerro Curunday and

further exploration at both Cerro Curunday and Las Huacas.

The drilling has taken slightly longer than expected as a result of drilling continuing beyond the initial

targeted depth of 200m and also encountering highly fractured ground conditions. These ground conditions

resulted in additional water being required for the drilling. Steps were undertaken to further source

additional water resources and improve the mud mix to increase drill productivity, which was achieved in

late November 2011.

Phase 1 Drilling Program

The aim of the Cerro Curunday drilling program is to test a series of gold-bearing zones identified by channel

sampling and rock chip sampling along a 2.1km strike length of epithermal gold mineralisation. All drilling is

being undertaken using diamond drilling from the surface to enable detailed logging and sampling.

Figure 6 – illustration of panoramic view of the project area

The Phase 1 drilling program commenced on the 24th August 2011 with hole number 8 (CU008) being

completed before the end of the first financial quarter and the forecasted Christmas and New Year break.

Drilling was completed on the eighth diamond drill hole (CU008), which has achieved a depth of 250.4m.

The ninth drill hole is located on the eastern slope of Curunday, targeting veinlets observed from recently

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field mapping activity. Please refer Figure 6 and 7 of the attached map of drill holes location. Drill hole

depths to date for CU001 to 8 are shown in the Table 1.

The geology observed by our geological team on site confirms that the diamond core obtained from the

holes CU004, 5, 6 and 7 has similar features to the first three holes drilled (CU001 to 3).

These holes represent a shallow marine sedimentary siliciclastic sequence of interlayered quartz

sandstones and siltstones belonging to Cretaceous Chimu Formation. This presents consistently as

advanced argillic, chloritic and silicification in the main alterations and the morphology of the potential ore

body is an important stockwork, with moderate to strong intensity mineralisation by pyrite, enargite and

chalcopyrite presenting as copper sulphides and there are traces of galena and sphalerite (Pb and Zn

sulphides).

Table 1 – Drill Hole Depth - Cerro Curunday

Drill Hole Number Drill

Depth

CU001 358.2m

CU002 335.3m

CU003 274.0m

CU004 201.9m

CU005 200.4m

CU006 202.5m

CU007 203.8m

CU008 250.4m

Total 2,026.5m

Drilling has been completed on the eighth diamond drill hole (CU008) which is achieved a depth of 205.4m.

The eight drill hole is located between the Curunday and Las Huacas area at a creek bed drill pad location

as illustrated in Figure 7. This will test a potential IP (Inducted Polarisation) target developed as part of early

field level exploration work.

The ongoing delays in the delivery of assay results from the laboratory are due to a backlog of samples sent

to the laboratory by other mining companies. This is indicative of the increased exploration, mining and

drilling activity in Peru. A second laboratory was investigated during the half year and was sourced to

accelerate assaying of samples from the current drilling and field level exploration activity at Curunday and

Las Huacas areas.

Additionally, further field level exploration is also underway to better understand the Cerro Curunday and

Las Huacas project areas. This will include channel sampling and mapping of the eastern slope of Curunday

and to progress field sampling and a mapping programme on the western slope of Curunday, towards the

Las Huacas project area.

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Figure 7 – Cerro Curunday Drill Plan

During December 2011 the geological team and our technical consultant completed a strategic planning

meeting and review of all geological information and exploration activity in La Libertad to date and new

project regions that could expand Promesa exploration activity in Peru.

The Company is committed to expanding its exploration activity to its newly acquired additional concessions

and will evaluate new drill targets through grass roots field level exploration programs.

The geological team have also been active in evaluating potential new projects within Peru, which

strategically fit Promesa’s in country experience and expertise. Further, the Company is in discussions with

other mining and exploration companies in Peru regarding potential acquisitions and possible joint venture

arrangements.

COMMUNITY

The company is committed to fostering good social welfare and community relationships, as well as

ensuring continuing social licence to develop projects in Peru. The Company recognises its responsibilities

to the local communities around Cerro Curunday and Las Huacas project areas has moved to increase its

commitment to social welfare and community programs. The company has people and resources engaged

to support community and social initiatives. Figure 8 and 9 illustrate community projects and activity in La

Libertad region in Peru.

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Figure 8 - Local workers prepare seedlings for

Environmental Programs supported by the community and Promesa

Figure 9 - Training Program for Local Works on Environmental Program

Social welfare and community engagement programs were commenced during the half year. Several

meetings were held with local and surrounding communities and community leaders.

The community has been employed to assist with the construction of facilities, roads and the drill program.

Furthermore, during the half year the community engagement team evaluated and assessed the potential

social welfare and environmental programmes that may be implemented. The aim of these programmes is

to improve community welfare and ensure continuing social licence to develop projects in this area. The

Company is also evaluating the use of community and environmental consultants to support this process.

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Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based

on information compiled by Mr. Rene Lugo, a Member of The Australasian Institute of Mining and

Metallurgy. Mr Lugo is a full-time employee of Peru Mineral S.A.C. Mr Lugo has sufficient experience which is

relevant to the styles of mineralisation and types of deposits under consideration and to the activity 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. Rene Lugo consents to the

inclusion in this report of the matters based on his information in the form and context in which it appears.

ATOCHA PROJECT

Previously the Company announced that perforation and testing of the second Tuscaloosa sand interval in

the HM Brian No.1 re-entry well had been completed. On perforation the well did not produce hydrocarbons

at commercial rates. Accordingly, the partners have agreed to abandon work on the well, restore the site to

its original condition and focus on evaluating a second well location within the Atocha project area.

The work completed on the re-entry and perforation on the first and second zones have been completed

within budget. The Company is continuing with evaluating the data from the re-entry to assist in the

generation of a possible second test location. Early analysis is pointing toward the possibility that

hydrocarbons may have migrated through the first zone and moved up dip from the HM Brian No.1 well

towards a fault block that has been defined by 2D seismic. Further updates on the Atocha project are

expected in the future.

The Company continues to maintain the leases in good standing. Current onshore activity in the US oil and

gas sector both in exploration and corporate activity has encouraged the Company to continue assessing

the potential of the Atocha project. The company hopes to recover some of its investment in the coming

year via the sale of its leases.

Competent Persons Statement

The information in this announcement has been reviewed by James A. Stewart (a registered professional

Petroleum Geologist in the State of Louisiana and Mississippi in the United States of America) who has

over 20 years experience in petroleum geology, drilling, well completions and production operations. Mr

Stewart reviewed this announcement and consents to the inclusion of the geological and engineering

descriptions and any estimated hydrocarbons in place or flow rates in the form and context in which they

appear. Any resource estimates contained in this report are in accordance with the standard definitions set

out by the Society of Petroleum Engineers, further information on which is available at spe.org.

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Auditor’s Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out

on page 15 for the half-year ended 31 December 2011.

This report is signed in accordance with a resolution of the Board of Directors.

Director

Ananda Kathiravelu

Dated this 13 day of March 2012

To the Board of Directors

This declaration is made in connection with our review of the financial report of Promesa

Limited and Controlled Entities for the half-year ended 31 December 2011 and in

accordance with the provisions of the Corporations Act 2001.

We declare that, to the best of our knowledge and belief, there have been:

no contraventions of the auditor independence requirements of the Corporations Act

2001 in relation to the review;

no contraventions of the Code of Professional Conduct of the Institute of Chartered

Accountants in Australia in relation to the review.

Yours faithfully

BENTLEYS CHRIS WATTS CA

Chartered Accountants Director

DATED at PERTH this 13th

day of March 2012

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The accompanying notes form part of this financial report.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER

2011

31.12.2011 31.12.2010

$ $

Revenue 143,952 24,520

Administration Expense (59,780) (17,177)

Consultancy Expense (1,144,645) -

Employee Benefit Expense (152,653) (865,768)

Exploration Expenditure Written Off (1,155,930) -

Financial Administration and Compliance Expenses (164,905) (80,111)

Legal Expenses (418) (844)

Travel and Accommodation Expense (282,536) (44,575)

Other Expenses (67,253) -

Loss before income tax (2,884,168) (983,955)

Income tax expense - -

Loss from continuing operations (2,884,168) (983,955)

Loss for the period (2,884,168) (983,955)

Other Comprehensive income - -

Total Comprehensive loss for the period (2,884,168) (983,955)

Total comprehensive income attributable to:

Members of the parent entity (2,884,168) (983,955)

(2,884,168) (983,955)

Basic loss per share (2.77) (1.53)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

31.12.2011 30.06.2011

$ $

CURRENT ASSETS

Cash and cash equivalents 4,505,726 1,206,768

Trade and Other receivables 448,843 85,573

Other assets - 125,559

TOTAL CURRENT ASSETS 4,954,569 1,417,900

NON-CURRENT ASSETS

Property Plant and equipment 161,780 79,028

Financial asset 2,000 2,000

Exploration expenditure 3,075,351 2,187,563

TOTAL NON-CURRENT ASSSETS 3,239,131 2,268,591

TOTAL ASSETS 8,193,700 3,686,491

CURRENT LIABILITIES

Trade and other payables 280,131 316,123

Other Liability - 474,002

TOTAL CURRENT LIABILITIES 280,131 790,125

TOTAL LIABILITIES 280,131 790,125

NET ASSETS 7,913,569 2,896,366

EQUITY

Issued capital 7,002,752 106,480

Reserve 1,005,099 -

Retained Profits/ (Accumulated losses) (94,282) 2,789,886

TOTAL EQUITY 7,913,569 2,896,366


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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2011

$ $ $ $

Issued Capital Accumulated Losses

Reserve Total

$ $ $ $

Balance at 1 July 2010 3,648,401 (1,092,940) - 2,555,461

Loss for the period - (983,955) - (983,955)

Other comprehensive income - - - -

Total comprehensive income for

period

-

(983,955)

-

(983,955)

Transaction with owners recorded

directly in equity

Shares issued 1,336,372 - - 1,336,372

Options issued 211,967 - - 211,967

Option Reserve - - 730,250 730,250

Capital Raising Costs (30,316) - - (30,316)

Balance at 31 December 2010 5,166,424 (2,076,895) 730,250 3,819,779

Issued Capital

Retained Profit/

(Accumulated

Losses)

Reserve Total

Balance at 1 July 2011 106,480 2,789,886 - 2,896,366

Loss for the period - (2,884,168) - (2,884,168)

Other comprehensive income - - - -

Total comprehensive income for

period

- (2,884,168) - (2,884,168)

Transaction with owners recorded

directly in equity

Shares issued 7,518,738 - - 7,518,738

Option Reserve - - 1,005,099 1,005,099

Capital Raising Costs (622,466) - - (622,466)

Balance at 31 December 2011 7,002,752 (94,282) 1,005,099 7,913,569

The accompanying notes form part of this financial report

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR HALF-YEAR ENDED 31 DECEMBER 2011

31.12.2011 31.12.2010

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees (1,079,221) (269,974)

Interest received 135,165 39,399

Payment for exploration expenditure (2,177,083) (87,323)

Net cash used in operating activities (3,121,139) (317,898)

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for property plant and equipment (83,529) -

Payment for project - (1,080,748)

Net cash used in investing activities (83,529) (1,080,748)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from application money received - 67,424

Proceed from option issue - 211,967

Proceed from share issue 7,044,626 1,336,372

Payment for capital raising costs (541,000) (30,318)

Net cash provided by financing activities 6,503,626 1,585,445

Net increase in cash held 3,298,958 186,799

Cash at beginning of period 1,206,768 1,559,143

Cash at end of period 4,505,726 1,745,942


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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

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NOTE 1: BASIS OF PREPARATION

These general purpose financial reports for the interim half-year reporting period ended 31 December 2011

have been prepared in accordance with requirements of the Corporations Act 2001 and Australian

Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with Australian

Accounting Standards ensures that the financial reports and notes also comply with International Financial

Reporting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial

reports of Promesa Ltd and its subsidiary. As such, it does not contain information that represents relatively

insignificant changes occurring during the half-year within the Group. It is therefore recommended that this

financial report be read in conjunction with the annual financial reports of the Group for the year ended 30

June 2011, together with any public announcements made during the half-year.

Comparatives

Comparative figures for the period 1 July 2010 to 31 December 2010 are those of Promesa Limited as

those of Peru Minerals could not be obtained due to the fact Promesa acquired Peru Minerals SAC on the

30 January 2011 to which we could not obtain figures before this date.

The interim financial statements have been prepared in accordance with the accounting policies adopted in

the Group's last annual financial statements for the year ended 30 June 2011, except for the adoption of

Improvements to AASBs 2010 (2010 Improvements) as of 1 January 2011. The 2010 Improvements made

several minor amendments to AASBs. The relevant amendments and their effects on the current period or

prior periods are described below.

The accounting policies have been applied consistently throughout the Group for the purposes of

preparation of these interim financial statements.

Amendment to AASB 101 Presentation of Financial Statements

The amendment provides a choice of presenting the reconciliations for each component of other

comprehensive income either in the statement of changes in equity or in the notes to the financial

statements. The Group has elected to retain reconciliations within the Consolidated Statement of Changes

in Equity as previously disclosed.

Amendments to AASB 134 Interim Financial Reporting

The amendments clarified certain disclosures relating to events and transactions that are significant to an

understanding of changes in the Group's circumstances since the last annual financial statements. The

Group's interim financial statements as of 31 December 2011 reflect these amended disclosure

requirements, where applicable.

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NOTE 2: ISSUED CAPITAL

31.12.2011 31.12.2010

$ $

Ordinary Shares

Issued Capital 7,002,752 5,166,424

a. Ordinary shares 31.12.2011 31.12.2010

No. No.

Opening balance July 94,039,999 37,000,000

8 December 2010 - 11,136,436

8 August 2010 12,525,000 -

28 September 2011 4,800 -

05 December 2011 13,334 -

At reporting date 106,583,133 48,136,436

b. Options PRAO 31.12.2011 31.12.2010

No. No.

Opening balance July 43,460,001 -

8 December 2010 - 21,196,716

8 August 2011 5,010,000 -

28 September 2011 (4,800) -

28 November 2011 3,500,000 -

05 December 2011 (13,334) -


c. Director Options 31.12.2011 31.12.2010

No. No.


12 December 2010 - 3,500,000


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NOTE 2: ISSUED CAPITAL (CONTINUED)

d. Vendor and Caldwell Options 31.12.2011 31.12.2010

No. No.


Movement in the reporting period - -

At reporting date 40,000,000 -

e. Class 1, 2 and 3 Consulting Options 31.12.2011 31.12.2010

No. No.

Opening balance July - -

9 December 2011 - Class 1 Consulting Options 1,000,000 -



At reporting date 3,000,000

There were no other movements in the ordinary share capital or other issued share capital of the company

in the current or prior half-year reporting period.

NOTE 3: OPERATING SEGMENTS

Segment Information

The Group has identified its operating segments based on the internal reports that are reviewed and used

by the Board of Directors (chief operating decision makers) in assessing performance and determining the

allocation of resources.

The Group is managed primarily on the basis of mining exploration and treasury activities. Operating

segments are therefore determined on the same basis.

Reportable segments disclosed are based on aggregating operating segments where the segments are

considered to have similar economic characteristics.

Types of reportable segments

(i) Tenement exploration and evaluation:

The exploration of current project and the evaluation of new ones are reported in this

segment. Segment assets, including acquisition costs of exploration licences and all

expenses related to the tenements are reported in this segment.

(ii) Treasury

The reporting relating to income from cash holdings is reported in this segment.

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NOTE 3: OPERATING SEGMENTS (CONTINUATION)

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with

respect to operating segments are determined in accordance with accounting policies that are consistent to

those adopted in the annual financial reports of the Group.

Segment assets

Where an asset is used across multiple segments, the asset is allocated to the segment that receives the

majority of economic value from the asset. In the majority of instances, segment assets are clearly

identifiable on the basis of their nature and physical location.

Unless indicated otherwise in the segment assets note, investments in financial assets, deferred tax assets

and intangible assets have not been allocated to operating segments.

Segment liabilities

Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and

the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group

as a whole and are not allocated.

Unallocated items

The following items of revenue, expense, assets and liabilities are not allocated to operating segments, as

they are not considered part of the core operations of any segment:

• net gains on disposal of available-for-sale investments;

• impairment of assets excluding exploration assets and other non-recurring items of

revenue or expense;

• income tax expense;

• deferred tax assets and liabilities;

• trade payable and other payables;

• intangible assets

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(i) Segment performance

Six months ended 31 December 2011

Exploration and

Evaluation

$

Treasury

$

Total

$

Interest Revenue - 143,952 143,952

Total segment revenue - 143,952 143,952

Reconciliation of segment revenue to Group revenue

Inter-segment elimination - -- --


Segment net Profit /(Loss) before tax (1,155,930) 143,952 (1,011,978)

Reconciliation of segment result to Group net profit/ (loss) before tax:

Administration Expense (59,780)

Consultancy Expense (1,144,645)

Employees Benefits Expense (152,653)

Financial Administration and Compliance Expense (164,905)

Legal Expense (418)

Travel and Accommodation Expense (282,536)

Other Expense (67,253)

Group net loss before tax (2,884,168)

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i) Segment performance (Continuation)

Six months ended 31 December 2010

Exploration and

Evaluation

$

Treasury

$

Total

$

Interest Revenue - 24,520 24,520


Reconciliation of segment revenue to Group revenue

Inter-segment elimination

Total segment revenue 24,520 24,520

Segment net Profit before tax 24,520 24,520

Reconciliation of segment result to Group net profit/ (loss) before tax:

Administration Expense (17,177)

Employees Benefits Expenses (865,768)

Financial Administration and Compliance Expense (80,111)

Legal Expenses (844)

Travel and accommodation (44,575)

Group net loss before tax (983,955)

ABN 36 124 541 466



26 | P a g e


(ii) Segment assets

31 December 2011

Exploration and

Evaluation

$

Treasury

$

Total

$

Segments assets 3,075,351 4,505,726 7,581,077

Segment asset increases for the period:

Capitalised Exploration Costs 887,788 - 887,788

Property Plant and Equipment 82,752 - 82,752

Increase in cash - 3,298,958 3,298,958

970,540 3,298,958 4,269,498

Reconciliation of segment assets to Group assets:


Unallocated assets

Other assets 612,623

Total Group assets from continuing operations 8,193,700

30 June 2011

Exploration and

Evaluation

$

Treasury

$

Total

$

Segments assets 2,187,563 1,206,768 3,394,331

Segment asset increases for the period:

Capital expenditure 1,157,899 - 1,157,899

Increase/(decrease) in cash - (352,375) (352,375)

1,157,899 (352,375) 805,524

Reconciliation of segment assets to Group assets:


Unallocated assets 292,160

Total Group assets from continuing operations 3,686,491

ABN 36 124 541 466



27 | P a g e


(iii) Revenue by geographical region

Revenue attributable to external customers is disclosed below, based on the location of the

external customer:

For the six months

ended 31.12.2011

$

For the six months

ended 31.12.2010

$

Australia 143,952 24,520

United States of America - -

Peru - -

Total revenue 143,952 24,520

(v) Assets by geographical region

The location of segment assets is disclosed below by geographical location of the assets:

Balance as at

31.12.2011

$

Balance as at

31.12.2010

$

Australia 4,369,194 1,775,107

Peru 3,824,506 1,131,021

United States of America - 1,135,949

Total Assets 8,193,700 4,042,077

NOTE 4: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

NOTE 5: EVENTS SUBSEQUENT TO REPORTING DATE

There are no significant events after balance date.

ABN 36 124 541 466


28 | P a g e

DIRECTORS’ DECLARATION

The Directors of the Company declare that:

1. The financial reports and notes, as set out on pages 16 to 27:

a. Comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations

Act; and

b. Give a true and fair view of the economic entity’s financial position as at 31 December 2011 and

of its performance for the half-year ended on that date.

2. 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.

Ananda Kathiravelu

Dated this 13 day of March 2012

We have reviewed the accompanying half-year financial report of Promesa Limited (“the

Company”) and Controlled Entities (“the Consolidated Entity”) which comprises the

consolidated statement of financial position as at 31 December 2011, and the

consolidated statement of comprehensive income, consolidated statement of changes in

equity and consolidated statement of cash flows for the half-year ended on that date, a

statement of accounting policies, other selected explanatory notes and the directors’

declaration.

The directors of the Company are responsible for the preparation of the half-year

financial report that gives a true and fair view in accordance with Australian Accounting

Standards and the Corporations Act 2001 and for such control as the directors determine

is necessary to enable the preparation of the half-year financial report that is free from

material misstatement, whether due to fraud or error.

Our responsibility is to express a conclusion on the half-year financial report based on

our review. We conducted our review in accordance with Auditing Standard on Review

Engagements ASRE 2410 Review of a Financial Report Performed by the Independent

Auditor of the Entity, in order to state whether, on the basis of the procedures described,

we have become aware of any matter that makes us believe that the financial report is

not in accordance with the Corporations Act 2001 including: giving a true and fair view of

the Consolidated Entity’s financial position as at 31 December 2011 and its performance

for the half-year ended on that date; and complying with Accounting Standard AASB 134

Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of

Promesa Limited, ASRE 2410 requires that we comply with the ethical requirements

relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other

review procedures. A review is substantially less in scope than an audit conducted in

accordance with Australian Auditing Standards and consequently does not enable us to

obtain assurance that we would become aware of all significant matters that might be

identified in an audit. Accordingly, we do not express an audit opinion.

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe

that the half-year financial report of Promesa Limited and Controlled Entities is not in accordance with the

Corporations Act 2001 including:

a. Giving a true and fair view of the Consolidated Entity’s financial position as at 31 December 2011 and of

its performance for the half-year ended on that date; and

b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations

Regulations 2001.

BENTLEYS CHRIS WATTS CA

Chartered Accountants Director

DATED at PERTH this 13th

day of March 2012

half-year financial reports 31 december 2011

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