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1 APPENDIX 4D: RESULTS FOR ANNOUNCEMENT TO THE MARKET Current Reprting Perid: Half-year ended 31 December 2012 Previus Reprting Perid: Half-year ended 31 December 2011 Results fr annuncement t the market A$ Revenue frm rdinary activities Dwn 100% 0 Prfit/(Lss) after tax attributed t members Previus perid lss Change is -172% 2,409,547 Prfit/(Lss) fr the half-year attributed t members Previus perid lss Change is -172% 2,409,547 The prfit f GBM Gld Limited ( GBM ) and i ts subsidiaries (the cnslidated entity ) fr the halfyear ended 31 December 2012, after incme tax, amunted t $2,409,547 (2011: lss $3,346,352). The result includes accunting fr the Grup s interest in Inglewd Gld Mining Cmpany Pty Ltd ( INGMC ) as a dispsal grup held fr sale - as prfessinal advice has stipulated that this treatment is required by the relevant accunting standards, ntwithstanding that GBM has n intentin f dispsing f this interest in INGMC and views it as an imprtant investment fr the grup ging frward. T he result als includes the sale f subsidiary Industrial Sands & Gravels Pty Ltd ( ISG ) and t he $750,000 initial payment made in respect f the ISG sale, as well as a r ange f activities t prgress the grup s ther interests at Gldsbrugh-Mliagul, Wilsn Hill and Avca- Fiddlers Creek. A significant cst cutting prgramme was embarked upn and Administrative csts were dwn 61% cmpared t the same perid in the previus year. The absence f revenue reflects the abve accunting treatment f the Inglewd investment required by the relevant accunting standards. Dividends It is nt prpsed t pay dividends Other infrmatin 31 December December 2011 Net Tangible Assets per rdinary share The financial infrmatin prvided in the Appendix 4D is based n the half-year cndensed financial reprt (attached), which has been prepared in accrdance with Australian equivalents t Internatinal Financial Reprting Standards (AIFRS). The half-year financial reprt has been independently reviewed and is nt subject t a qualified independent review cnclusin. PO BOX 2709 BENDIGO VIC 3550 P: F: E: inf@gbmgld.cm.au abn ASX:GBM A MEMBER OF THE GBM GOLD GROUP

2 (ABN ) and Cntrlled Entities INTERIM REPORT fr the half-year ended 31 December 2012

3 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 DIRECTORS' REPORT The directrs present their reprt tgether with the cnslidated financial reprt f GBM Gld Limited ("GBM" r "the Cmpany") and f the GBM Grup being the Cmpany, its subsidiaries and the Grup's interest in assciates and jintly cntrlled entities ( GBM r the GBM Grup ) fr the half year ended 31 December 2012 and the Auditr's review reprt theren. DIRECTORS The directrs f the Cmpany at any time during r since the end f the half-year are: Mr Ian W Smith (BSc) Executive Chairman Mr Eric Ng, Independent Nn-Executive Directr, Member f the Audit & Remuneratin cmmittee Mr Stuart D Hall (B.Bus, ACA), Independent Nn-Executive Directr, Member f the Audit & Remuneratin cmmittee Mr Paul H. K. Chan, Independent Nn-Executive Directr, Member f the Remuneratin cmmittee Mr Andy Lai, Independent Nn-Executive Directr, Member f the Audit cmmittee Mr Jhn ER Cahill (BSc Gelgy, MAIG) Resurce Directr, retired 24 Feb 2013 Mr Wayne Jhnsn, Independent Nn-Executive Directr, Chair Audit & Remuneratin cmmittee, retired 29 Nvember 2012 COMPANY SECRETARY The Cmpany Secretary f the Cmpany is Mr Stuart D. Hall GBM GOLD LTD 2

4 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 MAJOR EVENTS DURING THE HALF YEAR Inglewd prjects - Maxwell prcessing site and assciated Resurce blcks Maxwells mine and mill management streamlined, with adjustment s that site activities are nw verseen by an internally appinted site manager Mr Steve Hawkes In December bth mine and mill placed n care and maintenance whilst further funding btained t allw sme key expenditure n tailings facilities, secndary crusher and upgrade f cmpressed air supply and varius parts f the CIP circuit. Investment cmmitment f A$9m secured frm Wiltshire Asset management Ltd (WAM) with $1.08m delivered during the half year, $350k delivered pst the half year and a further A$ m expected by end March 2013 and the balance due prir t the end f the current financial year. Planning undertaken fr an expanded peratin at Inglewd t recmmence prir t end f the current financial year, utilising further funds delivered frm WAM Explratin and planning wrk prgressed re the Inglewd prject especially re : Gwks Hill resurce blck at Wedderburn -with the bjective being develpment f this area as an pen cut mine. Part f the funding being btained frm WAM is t be targeted at cmpletin f the planning and apprvals required t bring Gwks Hill n stream as a resurce feed fr the Maxwells mill Planning wrk cntinuing in respect f develpment f access t the Wlff Sht surface & undergrund resurce blcks. Explratin wrk cntinued n further Resurce blcks and Explratin Targets n the Inglewd licence including Cminsky and the cntiguus Jersey, Old Inglewd and Ophir lines where a significant explratin target has been utlined Wilsn Hill prject Planning fr further drilling and Relgging f cre prduced by WMC t assess new mineralisatin mdels develped fr the area Mliagul-Gldsbrugh area - Harvest Hme and Queens Birthday jv s Area Wrk plan fr Drilling being assessed n Queens Birthday area. Explratin target calculated f between 55,000 t 200,000 unces frm pen pit and ptential extensin suth and belw the existing wrkings Harvest Hme resurce subject t diamnd drilling and awaits interpretatin and assays Fiddlers Creek prcessing site and Fiddlers Creek-Avca Resurce prjects New mineralisatin mdel identified and wrk plan cmmenced Further gelgical assessment undertaken n the Fiddlers Creek MIN s (4023 & 4548). Remedial wrk carried ut n Fiddlers Creek Mill Further wrk n Ore surces fr the Fiddlers Creek mill GBM GOLD LTD 3

5 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 ISG Beavis prject - SOLD Beavis Resurce further defined and annunced, markets fr Beavis industrial prducts further researched and wrk plans prgressed fr initial mining Sale by GBM f Industrial Sands & Gravels Pty Ltd (ISG), wner f the Beavis prject fr A$5m t Wiltshire Asset Management (WAM) $750k depsit paid by WAM with balance t be paid ver 17mnths cmmencing July 2013 t Nvember 2014 Cnfirmatry drilling carried ut by WAM prvided lwer than expected results, leading t WAM intentin t cnduct a further large diameter cnfirmatry drill prgramme in first half GBM Gld Ltd Crprate Issue f 8,333,333 rdinary fully paid GBM shares at 1.2c in cnsideratin f $100,000 received frm an investment fund Receipt f A$305,000 frm Sterlingtn Resurces, presently shwn as a lan in the GBM accunts, which alng with $700,000 t be received in March 2013 is t be cnverted t GBM shares in satisfactin f the lans. Fllwing Supreme curt victry ver frmer directr Duglass Wakley Cahill & thers, fr remval f prperty frm the GBM Grup withut as a minimum fully infrmed bard cnsent, 2 parcels f freehld land were transferred back frm frmer directr Duglass Wakley Cahill & thers and registered back t GBM subsidiary Gldsbrugh Mining Pty Ltd. Receipt f $750,000 frm the sale f ISG subsidiary Cntract signed fr investment by Wiltshire Asset Management Ltd (WAM) f A$9m in t subsidiary Inglewd Gld Mining C P/L (INGMC) f which A$1m flws up t GBM, with receipt by INGMC f $1.08m frm WAM in respect f the abve during the half year reprting perid GBM GOLD LTD 4

6 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 OPERATING AND FINANCIAL REVIEW OVERVIEW OF OPERATING PERFORMANCE The principal activities f the Grup during the perid were activities related t explratin t prve up further gld Resurces and mining fr and prductin f gld, at present in limited quantities. The Cmpany aims t becme a significant gld prducer, initially via grwth at its current 2 prcessing sites in Central Victria.at Inglewd and near Avca. The cmpany has a range f Resurce prjects assciated with these tw prcessing sites. The aim is t accelerate grwth f Resurce and Prductin via increased wrk n its present prjects and ptentially via acquisitin f ther prjects elsewhere. During the half year the Maxwell s Mine and Mill (Inglewd) perating teams were streamlined, with site based management csts cut substantially including remval f financial management and administratin functins frm site and an internal appintment f Steve Hawkes t rle f peratinal site Manager, Inglewd. Operatinal issues cntinued with the secndary crushing circuit, with bth impact Mill and Rlls crusher slutins implemented prving unsatisfactry. As the year came t a clse it was determined t place the Mine and Mill crews n stand-dwn and the site n care and maintenance - pending availability f the investment funds frm WAM t prvide fr (i) a VSI t be purchased as the secndary crusher (ii) cmpletin f upgrade and separatin f the cmpressed air slutins at Mine and Mill (iii) establishment f the extended tailings facilities apprved fr cnstructin at tw lcatins n the Mining licence; and (iv) upgrade and installatin fr a range f ther cmpnents fr better efficiency f the CIP circuit. Cntinued lw mill up time and peratin, when it was perating in the half year, shws thrugh in the lw sales fr the half year. Wrk cntinued n better defining Resurce - and especially resurce amenable t pen pit mining - fr nging high vlume, lw extractin cst mill feed. Taking varius Resurce blcks amenable t pen pit mining thrugh t prductin was hampered by lack f funds t pay fr planning, apprvals and ther wrk required prir t bulk sampling, peratinal permitting and prductin. Target areas cntinue t be Gwks Hill at Wedderburn and n the Inglewd mining tenement, the pen cut area abve the Wlff Sht, as well as the cntiguus Jersey- Old Inglewd-Ophir structures and the Daly and Cminsky reefs In terms f undergrund Mill feed this cntinued t be frm the Maxwell mine and planning has been nging as t hw t access the current 11,000 z Resurce at the Wlf sht, lcated 400m suth f the Maxwell Mine at ~80m depth. Lnger term planning undergrund has been in respect f prgrammes t drill the large undergrund Explratin Targets in an effrt t take them thrugh t inferred and/r indicated Resurce. Crprate wrk was mainly fcused n funding and n researching ther ptential prjects. There was cntinued imprvement f administratin systems GBM GOLD LTD 5

7 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 INGLEWOOD OPERATIONS Maxwell Mill CIP circuit - Agitatr and Pachuka tanks Maxwell Mill crushing and gravity circuit viewed frm in grund feed bin GBM GOLD LTD 6

8 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Inglewd Operatins (cnt) MAXWELLS MILL PROCESSING SITE AND ITS SURROUNDING RESOURCE PROJECTS : GBM GOLD LTD 7

9 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Inglewd Operatins (cnt) The Maxwells Mill is an integrated gravity and CIP Mill tuned t perate at 15tph, with capacity t mve up t 20tph. It is a flexible plant able t prcess hardrck, alluvial &/r sand re surces. Significant wear issues have been experienced with the secndary crushing circuit, meaning that hard rck prcessing has been bth spradic and limited. Sand prcessing via the twin ball mills has been effective but limited the feed t reprcessing f lw grade tailings. Twards the end f the half year due t a number f factrs pr secndary crushing perfrmance, diminished tailings strage capacity, mbile plant requiring repair, lw air cmpressr perfrmance and capacity and lack r perfrmance r lack f varius ther items - it was decided t place the Mine and Mill n care and maintenance pending receipt f further funds frm the WAM investment int Inglewd Gld Mining C Pty Ltd. The decisin was made t wait until that funding is banked, whereupn the abve issues can be prperly addressed and the Mine and Mill taken be back in t mre effective prductin within a shrt perid thereafter. At the date f this reprt ~A$1.43m f the WAM funds have been received by INGMC with a further $ m expected by the end f March 2013 and the balance by the end f the financial year. The ttal amunt f this will allw the Mill t be taken back in t peratin. Once the Mill is restred t peratin it is planned t initially achieve a cnsistent ~600t/wk target frm single 12 hr shift 5 day peratins. The target is then t increase t ~ 900 t/wk arising frm 15 t/hr (f 20t/hr ptential) x 10hr/day uptime (f 12 hrs available) x 6 days per week perating uptime (with all 7 days wrked per week with tw single shift crews wrking 4 days n, 4 days ff). The next increase, nce sufficient vlume f ave 3g/t+ grade pen pit re is available, is t take the Mill t 24 hur peratin, 7 days (2 x 12 hur shifts per day). As this will require apprx 100,000t f re per annum, this is nt a step that can immediately prceed, and requires ne r mre f the targeted pen pits t be in prductin scheduled in the next 18 mnths.. Maxwells Mill is an effective unit, and culd be used as the prcessing site fr material frm all GBM Resurce prjects fr within 35km f Inglewd (see diagram previus page). RESOURCE PROJECTS INGLEWOOD AND SURROUNDING TENEMENTS FOR MILL FEED Inglewd Prject Inglewd MIN and EL (Mining and Explratin licences) Maxwells Mine : nging expansin f Maxwells Mine in t : Level 1, sublevel 1> 2, 63S & 63N; Level 1, sublevel 0, 200N; (this intended t als develp as a N & S heading) the develpments are aimed at achieving 4 stpes that can be mined n a daily basis t deliver a cnsistent weekly tnnage f t/wk f 5-10 g/t re t the Mill - t prvide a higher grade fractin f re t the Mill t blend with its lwer grade tailings (1 g/t), which are as sn as pssible are t be replaced by a blend with pen pit (~3g/t) Resurce. Wlff sht: Planning wrk cntinued fr develpment f the Wlff Sht area, fcused n its surface expressin but mre imprtantly the high grade undergrund pd at 50-80m belw surface. Wrk invlved analysis f : the prcess fr accessing the near surface depsit f ~15,000t fr 1,100 z; GBM GOLD LTD 8

10 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Mre imprtantly, the best means f accessing the Wlff Sht undergrund Resurce f 19,500t at 19g/t (fr 11,900 z) which has been defined frm drilling at 25m intersectins at a depth f 50-80m. As annunced in the last half year reprt three ptins have been identified and are being cmparatively csted: restratin f an existing drive frm Maxwell shaft, restratin f the ld Laidlaw shaft fr either re &/r man access r a new mini decline frm surface. Numerus lines f reef frming large near surface Explratin Target: Wrk cntinued n further defining the numerus surface Explratin Targets n the Inglewd tenement, frm analysis f histrical recrds and explratin data, with the aim f prviding lng term, clse t Mill feed surces. At present this Explratin Target ttals ~1.5m-2.5m tns f 2-4g/t fr ~150,000 t 300,000z (fr full details and parameters f these Explratin Targets please refer t the table in this reprt). Ntable results were: Cntinued analysis f the Daley reef drill data, which has identified a +1 g/t anmaly ver 400m f the utcrpping reef. Further analysis is nging t define nuggety gld impact and further refine structural mdel t allw an inferred resurce t be estimated. Further analysis f the existing Cminsky reef drilling (cmpleted by Gldquest N.L) and gaining f drill planning apprval, the drill prgramme aimed at upgrading the resurce t indicated status by RC drilling Further analysis f the histrical data btained re the Jersey - Suth Grdn Ophir structure: a 1.5 Km metres wide fault zne with regular high grade shts. Past drilling has utlined significant widths at lw grades indicating a bulk mining target f magnitude, requiring further drilling. Pstulatin f a new mineralisatin mdel fr the gldfield, which will be tested by the targeted drill prgrammes. A Wrk Authrity has been applied fr t undertake gravel extractin at Scandinavian Gully several Km frm the Maxwells Mine. A resurce f clean white quartz gravels and sands is t be mined and screened int varius prduct sizes and sent t markets. The apprval prcess cntinues. Wedderburn EL & MINA (explratin licence and mining licence under applicatin) Gwks Hill : Further planning apprvals and drilling at Gwks Hill resurce blck : Analysis wrk nging related t the diamnd drilling prgram cmpleted in 2012 Additinally a bulk sample wrk plan variatin is nging with bidiversity having cnsiderable input causing delay. Granting f a mining licence re Gwks Hill was prgressed with Native Title dcuments prgressed t signing stage Preparatin f a Wrk Plan t mine Gwks hill has been cmmenced. This cntinues and it is hped that it will be well prgressed in the secnd half f the calendar year Queens Gully: Explratin Target identified Analysis f previus drill data has shwn a Nrthern extensin f the Gwks Hill structure t an area knwn as Queen s gully. At present this is in Explratin Target status, but nce funds are available wrk will be carried ut t further test and mdel this extensin aiming t take it t Resurce GBM GOLD LTD 9

11 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Further planning apprvals and drilling will be undertaken t dvetail this int the Gwks Hill Mining Mdel. Gldsbrugh Prject Harvest Hme (HH) EL & MINA- (explratin licence & mining licence under applicatin) The Harvest Hme Resurce blck has previusly been annunced f a 1m tn Resurce at 2.4 g/t fr 80,000 z A 3 hle drill prgram has been cmpleted and wrk cntinues n analysis and sampling f this cre. Crprate wrk n the JV within which the HH EL is held led t : A decisin t implement the transfer f the GBM grup interest in the HH jv t a standalne subsidiary t allw mre fcused management f the jv. Resulting in sale f the GBM grup interest in the HH jv frm INGMC t anther 100% GBM subsidiary Greater Bendig Gld Mines Pty Ltd (GBGM) A previusly drafted frmal jv dcument was updated fr varius changes t a frm that GBGM was prepared t sign. The new JV partner, Silver Bright investments, has nt yet apprved the updated frmat r agreed t sign same prgress n the MINA (Mining Licence applicatin) ver the Harvest Hme tenement; Queen s Birthday (QB) EL (explratin licence) Wrk n the Queen s Birthday tenement reinfrced the ptential f the ,000 z explratin target defined (refer table herein fr full parameters) Crprate wrk n the QB jv, as with the HH jv, led t : A decisin t implement the transfer f the GBM grup interest in the QB jv and the QB tenement t a standalne subsidiary t allw mre fcused management f the jv. Resulting in sale f the GBM grup interest in the QB jv and the QB tenement frm INGMC t anther 100% GBM subsidiary Greater Bendig Gld Mines Pty Ltd (GBGM) A previusly drafted frmal jv dcument was updated fr varius changes t a frm that GBGM was prepared t sign. The new JV partner, Silver Bright investments, has nt yet apprved the updated frmat r agreed t sign same Wilsn Hill prject Wilsn Hill EL (explratin licence) GBM has cntinued analysis f the Wilsn Hill data base and the 17 trays f WMC drill cre cllected and stred at GBM s premises. Further analysis f this data has re-affirmed the belief that the Bendig style gelgical mdel applies t Wilsn Hill. Planning wrk cntinues in respect f the intended lcatins f a substantial drill prgramme designed t cnvert a significant GBM GOLD LTD 10

12 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 amunt f the Explratin Target at Wilsns Hill t Resurce in the next 18 mnths, again subject t funding availability fr same. Chinese explratin grup visited Wilsns Hill with a view t a ptential JV t funds and carry ut this explratin prgramme Overall during the half year, as during the previus half year, the GBM gelgical team cntinued t analyse the available data and develp the Mineralisatin mdels fr the Resurce prjects at Inglewd and surrunds, t allw precise targeting f explratin dllars. As a result the ttal Explratin Target unces have been further refined and the aim cntinues t be t cnvert as much as pssible f the current Explratin target t Resurce and inferred Resurce t Indicated Resurce ver the next 18 mnths GBM GOLD LTD 11

13 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Inglewd Operatins (cnt) RESOURCE & EXPLORATION TARGETS, INGLEWOOD & SURROUNDING PROJECTS Resurce - Inglewd & related prjects If applic Measured Indicated Inferred Cubic Meters Tnnes Au (g/t) Oz Tnnes Au (g/t) Oz Tnnes Au (g/t) Oz Inglewd Tailings (sg 1.5) 28,403 42, ,366 Undergrund 34, ,418 71, ,853 Open-cut 406, ,464 Alluvial 182, , ,004 Sub TOTAL 210,403 42, ,366 34, , , ,321 Wilsn Hill Undergrund 132, ,994 Open-cut 99, ,123 Sub TOTAL 231, ,117 Gldsbrugh Tailings (sg 1.5) 13,500 20, Open-cut * Nte GBM has 50% f Gldsbrugh 1,040, ,051 Sub TOTAL 1,060, ,372 Ttal 434,306 42,605 1,366 34,598 19,418 2,060, ,811 Tnnes Grade g/t Oz Ttal Resurce all Categries 2,138, ,595 Less JV interest 40,026 TOTAL GBM Oz 206, GBM GOLD LTD 12

14 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Inglewd Prject Explratin Target Parameters Inglewd Tenements Open-Cut targets Strike m Width L m Explratin Target table Open Cuts t 50 metres Depth Width H m Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Cminsky -suth , , ,753 44,259 Farrell Reef - /c ,525 31, ,494 4,979 Welcme - /c ,150 48, ,549 4,647 Daly-/c , , ,788 21,576 Jersey 1, , , ,259 73,765 Exhibitin , , ,130 55,324 Rbbie Burns , , ,363 32,272 Rising Sun , , ,831 23,052 Humbldt , , ,831 23,052 Ttal Inglewd pen cut 1,273,050 2,057, , ,927 Wedderburn Tenements Strike m Width L m Width H m Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Gwks Hill , , ,149 27,662 Queens Gully ,500 69, ,660 11,065 Lanes Reef , , ,809 38,727 Ttal Wedderburn Open Cut 241, , ,618 77,453 Wilsn Hill - Bendig Strike L Strike H Width Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Wilsn reef , , ,236 44,613 Ttal Wilsn Hill Open Cut 181, ,840 23,236 44,613 Gldsbrugh Prject Strike L Strike H Width Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H GBM 50% Queens Birthday Open Cut Ttal , , ,901 17,704 Harvest Hme ,000 80, ,951 10,327 Ttal Gldsbrugh Open Cut 138, ,500 8,852 28,031 Ttal Open Cut Explratin Target 1,833,675 2,990, , , GBM GOLD LTD 13

15 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Undergrund Explratin Target - Extensins and Repetitins t knwn Mineralisatin t 500 metres belw surface Inglewd Undergrund Strike Width L m Width H m Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Undergrund Max / Max Nrth Deeps ,000 75, ,243 48,108 Clumbian deeps , , , ,269 Cminsky - u/g ,000 75, ,243 48,108 Jersey , , , ,269 March Unity - Mrning Star - u/g , , , ,323 Rck f Cashel ,000 75, ,829 28,865 Kelvertn u-g ,000 75, ,243 48,108 Old Inglewd ,000 75, ,243 48,108 Ophir et al ,000 75, ,243 48,108 Ttal Inglewd Undergrund 600, , , ,266 Wilsn Hill - Bendig 250m R.L Strike Width L m Width H m Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Wilsns a/c , , ,092 69,275 Albin , , ,092 69,275 Slate , , ,092 69,275 Ttal 250m 360, ,000 69, , m R.L Wilsns , , ,092 69,275 Albin , , ,092 69,275 Greys , , ,092 69,275 Slate , , ,092 69,275 Ttal 500m 480, ,000 92, ,101 Ttal Wilsn Hill Undergrund Nte: sme runding has ccurred 161, ,926 Gldsbrugh Undergrund Strike L Strike H Width Height S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Queens Birthday Undergrund Undergrund Suth Extent ,725 99, ,569 38,275 QB deeps , , , ,104 Ttal Gldsbrugh Undergrund 260, , , ,378 Ttal Undergrund Explratin Target values 481,140 1,339,570 All measurements in metres g/ounce SG estimated n lcal experience Dimensins based n existing wrkings TOTAL Open Pit & Undergrund Explratin Target values 3,273,675 5,150, ,844 1,772, GBM GOLD LTD 14

16 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 AVOCA OPERATIONS With the ISG subsidiary sld the fcus f the Avca peratins is n (i) develpment f the Fiddlers Creek Mine t an perating mine (ii) restratin f the Fiddlers Creek mill t prductin and (iii) nging explratin f the Fiddlers Creek and Avca tenements in an effrt t turn the existing Explratin Targets in t Resurce and verall t expand the Resurce base at Avca. ADJOINING BEAVIS+FIDDLERS CREEK PROCESSING SITE GBM GOLD LTD 15

17 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Fiddlers Ck Ball Mill Beavis Prject shwing histrical diggings and cmpany prperty bundary - SOLD GBM GOLD LTD 16

18 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 RESOURCE PROJECTS AVOCA AND RELATED TENEMENTS FOR MILL FEED Fiddlers Creek Prject 2 x MIN (mining licences) Further analysis f drill data relating t a dwnward extensin f the existing Fiddlers Creek mine Resurce nging with revised resurce t be prepared. Wrk Plan under cnstructin and related peratinal planning being cnsidered t allw access t this lwer extensin, targeted by way f small scale decline. Planning fr further testing f surface anmaly shwing ptential fr a small pen pit resurce nearby the Mill. All this further wrk subject t suitable prject funding being available fr this prject frm GBM r jv partner in the prject, with discussins underway in respect f same. Avca EL (explratin licence) Significant Explratin target identified fr future review as ptential alluvial and hardrck surces. New Mineralisatin mdel fr the area develped and a wrk plan t test this under preparatin. The mdel effectively ntes existing narrw reefs as part f a larger fault system and in varius lcatins, mineralisatin can carry frm ftwall t hanging wall ver 10 t 15 metres in width. Drill testing these areas t identify larger scale pen pit depsits t be undertaken subject t funding. Beavis Prject - freehld land cvered by WA (wrk authrity) SOLD Cnceptual planning f prductin lgistics undertaken in respect f prcessing the inferred Resurce f 33,000 z in the basal layer frm 25 metres and the in excess f 2 millin cubic metres f silica based industrial prducts Wrk cntinued n identifying ptential users f the silica and kalin industrial prducts Prir t any actin in respect f the abve GBM subsidiary Industrial Sands & Gravels Pty Ltd (ISG), the wner f this Beavis prject, was sld t Wiltshire Asset Management fr A$5m. An initial A$750,000 f this was paid during the half year GBM GOLD LTD 17

19 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Avca Operatins (cnt) RESOURCE & EXPLORATION TARGETS, AVOCA SEGMENT Resurces Fiddlers Creek Measured Indicated Inferred Tnnes Au (g/t) Ounces Tnnes Au (g/t) Ounces Tnnes Au (g/t) Ounces Tailings (sg 1.6) Sub TOTAL Tails Hard Rck Fiddlers Ck Mine , , ,774 Fiddlers Hanging wall 10, ,586 Belw 920 m R.L. 7, ,847 Ftwall 11, ,956 Sub TOTAL - u/g , , ,163 Grand Ttal fr Fiddlers Creek 45, ,518 Avca - Fiddlers Ck Explratin Target table Explratin Target Estimate criteriaopen pits t 50 metres Prjects Strike L Strike H Height Width S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Min ,250 34, ,213 11,065 Min ,000 46, ,951 14,753 Beavis Extensin , , ,811 14,432 Alluvial N 1 Gully ,000 1,125, ,635 36,081 1,050,000 1,575, ,609 76,331 EL 4936 Targets Strike L Strike H Height Width S.G Tnnes L Tnnes H Grade L Grade H Ounces L Ounces H Mt Warrenmang , ,242 Halls Reef ,577 40,411 Bannisters ,031 84,189 Ttal , ,842 Grand Ttal Avca Explratin Target 2,545,000 5,015,000 68, , GBM GOLD LTD 18

20 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 GBM GOLD LTD CORPORATE ACTIVITY During the half year the fllwing crprate activity was undertaken: Cllectin f initial $750,000 due t GBM as the initial depsit re the sale f subsidiary Industrial Sand & gravels Ltd (ISG) Transactin als entered with Wiltshire Assets Management Ltd (WAM) t invest A$9m in t GBM subsidiary Inglewd Gld Mining Cmpany Pty Ltd (INGMC) with initial payment f $1.08m received by INGMC during the perid and a further A$350,000 pst reprting perid Land registered back in t name f GBM subsidiary Gldsbrugh Mining Pty Ltd as a result f litigatin victry ver frmer directr Duglass Wakeley Cahill & thers Streamlining f management verhead and site management within Inglewd peratin Streamlining f grup administratin and cntinued imprvement f all in-huse prcesses and systems Issue f A$100,000 f shares in GBM at price f 1.2c per share Further A$425,000 received frm Sterlingtn Resurces Ltd in line with the funding agreement made with Sterlingtn, $305,000 f which still shws as a lan in GBM bks at the half year and is t be cnverted t shares during the secnd half f the financial year Onging wrk t secure substantial internatinal prjects in which t invest. INVESTMENTS FOR FUTURE PERFORMANCE The main investments fr future perfrmance were: Inglewd: Investment t imprve the effectiveness f the Maxwell Mill Investment int develpment f further prductin stpes at the Maxwell Mine Further explratin wrk carried ut and much larger explratin targets identified Gldsbrugh-Mliagul Wilsn Hill Avca-Fiddlers Creek : Change f wnership f the Harvest Hme and Queens Birthday jint ventures t 100% GBM subsidiary Greater Bendig Gld Mines Pty Ltd with registratin f the Queen s Birthday tenement transfer still t ccur. Onging wrk t finalise and execute frmal jv agreements, arising frm the dcument drafted at the time the new jv partner invested in t the jv s Onging wrk n the Harvest Hme jv t psitin it fr bulk sampling and expected mine planning thereafter Onging wrk n the Queen s Birthday jv develping extensive explratin prgramme Onging wrk develping explratin prgramme and presenting same t ptential jv investrs Wrk n prgressing apprvals and preliminary wrk plans t take the Fiddlers Creek prcessing site twards prductin GBM GOLD LTD 19

21 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Crprate: Onging effrt prgressing varius funding arrangements in place and ther ptential funding arrangements Wrk n varius ptential crprate acquisitins, nne sufficiently advanced t annunce as at the date f this reprt In Summary wrk was fcused n delivering GBM back t a state in which it can deliver strng future perfrmance. Substantial effrt and resurce was expended during the half year n : increasing the Explratin Targets and planning extensive explratin prgrammes t cnvert same t Resurce. n implementing mre streamlined and imprved business prcesses at Inglewd, mre fcused n bttm line perfrmance leading t a decisin in December t place the peratin n care and maintenance fr the time being until further funds and higher grade mineable surface Resurce available t the peratin imprved financial cntrl within the verall grup - as well as the supprting plicies and prcedures FINANCIAL PERFORMANCE The grup achieved a ttal gld sales f $167,351 (31 December 2011: $250,351) and incurred an after tax prfit fr the half year ended 31 December 2012 f $2,409,547 (31 December 2011: lss f $3,346,352). Sales were significantly less than prjected fr the perid due t the limited peratin f the Maxwell mill. CURRENT STRUCTURE OF THE GROUP Percentage Owned Cntrlling Entity: CAN 31 December 2012 GBM Gld Ltd Cntrlled Entities Gldsbrugh Mining Pty Ltd % GBM Fiddlers Creek Pty Ltd % Inglewd Gld Mining Cmpany Pty Ltd % Greater Bendig Gld Mines Pty Ltd % GBM Wilsn Hill Pty Ltd % GBM Avca Pty Ltd % Industrial Sands & Gravels Pty Ltd Nminal 100% Beneficial wnership 0% Kralcpic Pty Ltd % DIVIDENDS N dividends have been paid r prvided fr in the perid f this reprt r since balance date. EVENTS SUBSEQUENT TO REPORTING DATE N significant events pst reprting date, nting that $350,000 further payment received frm Wiltshire relating t its Inglewd investment agreement and a further $70,000 received frm Sterlingtn relating its investment agreement in t GBM GBM GOLD LTD 20

22 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 LIKELY DEVELOPMENTS The likely develpments in the peratins f the Grup are as fllws: 1. Inglewd Gld Mining Cmpany Pty Ltd (INGMC), at present a 100% subsidiary, t mve t initially a 50% assciate cmpany, fllwing : a. cnversin f $1.08m f what is presently Current Financial Liability within the GBM grup t rdinary fully paid shares in Inglewd Gld Mining Cmpany Pty Ltd b. Cmpletin f delivery f ~$3.5m f further funds frm WAM t INGMCO f which c. $1m flws t GBM 2. Cnversin f $305,000 f what is presently Current Financial Liability f GBM t rdinary fully paid GBM shares at 1.2c 3. a further fund raising and issues f shares by GBM f nt less than the A$700,000 balance due frm Sterlingtn resurces and likely t be ~$1 1.5m 4. Delivery f a further $4m frm WAM t INGMC 5. Cntinued develpment f the Inglewd prject with its stand alne funding frm WAM thrugh : a. explratin and cntinued expansin f the Inglewd prject Resurce and the surrunding Resurce prjects bth pen pit and undergrund - with bulk sampling fllwed by mining t cmmence at bth Gwks Hill and Wlff Sht and varius assciated Resurce upgrade annuncements b. further develpment f the Maxwells Mill, especially in respect f enhancing perfrmance via imprved crushing, carbn handling and regeneratin systems 6. Annuncement that varius ther explratin prgrammes are cmmencing and that due diligence is t cmmence n ptential acquisitin f ne r mre further substantial Internatinal Resurce prject(s) AUDITOR'S INDEPENDENCE DECLARATION The auditr's independence declaratin is set ut n page 22 and frms part f the Directrs' Reprt fr the half-year ended 31 December This reprt is made in accrdance with a reslutin f the directrs: I W Smith, Executive Chairman Bendig, 18 March GBM GOLD LTD 21

23 Level 10, 530 Cllins Street Melburne VIC 3000 T +61 (0) F +61 (0) Auditr s Independence Declaratin under Sectin 307C f the Crpratins Act 2001 t the directrs f GBM Gld Limited I declare that, t the best f my knwledge and belief, during the half-year ended 31 December 2012 there have been: (i) (ii) N cntraventins f the auditr independence requirements as set ut in the Crpratins Act 2001 in relatin t the review, and N cntraventins f any applicable cde f prfessinal cnduct in relatin t the review. MOORE STEPHENS Chartered Accuntants Nick Michael Partner Melburne, 18 March 2013 Mre Stephens ABN Liability limited by a scheme apprved under Prfessinal Standards Legislatin. An independent member f Mre Stephens Internatinal Limited members in principal cities thrughut the wrld. The Melburne Mre Stephens firm is nt a partner r agent f any ther Mre Stephens firm. And is a separate partnership in Victria.

24 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Fr the half year ended 31 December 2012 Nte 31-Dec Dec-11 $ $ Sales Revenue - - Cst f Sales - - Grss prfit/lss - - Other incme 1, ,193 Administrative expenses (706,406) (1,813,758) Net gain frm dispsal f subsidiary 3 4,709,210 - Prfit (Lss) befre incme tax 4,003,963 (1,432,565) Incme Tax Expense Prfit / (Lss) fr the half year befre discntinued peratins - - 4,003,963 (1,432,565) Other cmprehensive incme Results frm dispsal grup classified as held fr sale Ttal Cmprehensive Prfit / (Lss) fr the half year 4 (1,594,389) (1,913,787) 2,409,547 (3,346,352) Lss is attributable t: Owners f GBM Gld Ltd Ttal Cmprehensive lss attributable t Owners f GBM Gld Ltd Earnings per share fr lss attributable t wners f GBM Gld Ltd: Basic Prfit (Lss) per share (cents per share) (0.007) Diluted Prfit (Lss) per share (cents per share) (0.007) The accmpanying ntes frm part f these cnslidated financial statements GBM GOLD LTD 23

25 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2012 Cnslidated Nte 31-Dec Jun-12 $ $ Assets Current assets Cash and cash equivalents 4 35, ,940 Trade and ther receivables 159, ,938 Inventry - 423,893 Receivable - dispsal f subsidiary 1,500,000 - Assets f dispsal grup reclassified as held fr sale 4 8,352,916 - Ttal current assets 10,048, ,771 Nn-current assets Receivable - dispsal f subsidiary 2,750,000 - Other financial assets 723, ,377 Prperty, plant and equipment 890,111 9,577,893 Explratin and evaluatin 673,068 1,113,998 Other intangible assets - 64,250 Ttal nn-current assets 5,036,315 11,418,518 Ttal assets 15,084,543 12,334,289 Liabilities Current liabilities Trade and ther payables 846,158 2,420,746 Financial liabilities 451, ,040 Prvisins 55,147 3,134,146 Liabilities f dispsal reclassified as held fr sale 4 5,088,474 - Ttal current liabilities 6,441,608 6,074,932 Ttal nn-current liabilities 10,896 46,865 Ttal liabilities 6,452,504 6,121,797 Net assets 8,632,039 6,212,492 Equity Share Capital 8 24,063,357 23,963,357 Reserves 510, ,000 Accumulated lsses (15,941,318) (18,350,865) Ttal equity 8,632,039 6,212,492 The accmpanying ntes frm part f these cnslidated financial statements GBM GOLD LTD 24

26 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Fr the half year ended 31 December 2012 Cnslidated Nte Share capital Reserves Accumulated lsses Ttal $ $ $ $ Balance at 30 June ,900, ,000 (11,519,572) 6,980,715 Cmprehensive Incme fr the Year Lss fr the year - - (1,432,565) (1,432,565) Results frm dispsal grup reclassified as held fr sale (1,913,787) (1,913,787) Ttal Cmprehensive Incme fr the Year - - (3,346,352) (3,346,352) Transactins with Owners in their Capacity as Owners: Shares Issued 3,750, ,750,870 Transactin Csts (152,499) - - (152,499) Ttal transactins with Owners in their capacity as Owners 3,598, ,598,371 Balance at 31 December ,498, ,000 14,865,924 7,232,734 Balance at 30 June ,963, ,000 (18,350,865) 6,212,492 Cmprehensive Incme fr the perid Prfit fr the perid - - 4,003,963 4,003,963 Adjustment - Dispsal f Subsidiary - (90,000) - (90,000) Results frm dispsal grup reclassified as held fr sale (1,594,389) (1,594,389) Ttal Cmprehensive Incme fr the Perid - (90,000) 2,409,547 2,319,547 Shares Issued 100, ,000 Transactin Csts Balance at 31 December ,063, ,000 (15,941,318) 8,632,039 The accmpanying ntes frm part f these cnslidated financial statements GBM GOLD LTD 25

27 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 CONSOLIDATED STATEMENT OF CASH FLOWS Fr the half-year ended 31 December 2012 Cnslidated Nte 31-Dec Dec-11 Cash flws frm perating activities Cash receipts frm custmers 167, ,600 Deferred gld sales - 2,951,613 Cash paid t suppliers and emplyees Interest received Interest paid Net cash inflw/(utflw) frm perating activities (2,111,444) (2,726,686) 3,996 4,078 (90,857) (327,116) (2,030,954) 345,489 Cash flws frm investing activities Prceeds fr Intangibles 205,268 - Net Prceeds frm the sale f a subsidiary 369,210 - Prceeds frm sale f prperty, plant & equipment 395,704 (159,955) Acquisitin f prperty, plant & equipment (157,424 ) (797,034) Net cash utflw frm investing activities 812,758 (956,989) Cash flws frm financing activities Prceeds frm the issue f share capital 100,000 1,750,870 Payments fr additins t Jint Ventures (60,759) - Cst f share issue - (152,499) Prceeds frm New Lans / ( repayment f brrwings) 1,041,762 (250,469) Net cash frm financing activities 1,081,003 1,347,902 Net increase/(decrease) in cash and cash equivalents (137,193) 736,402 Cash and cash equivalents at start f reprting perid 184, ,063 Cash and cash equivalents at end f reprting perid 4 47, ,465 The accmpanying ntes frm part f these cnslidated financial statements GBM GOLD LTD 26

28 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS Fr the half-year ended 31 December STATEMENT OF PREPARATION AND ACCOUNTING POLICIES These general purpse financial statements fr the half-year reprting perid ended 31 December 2012 has been prepared in accrdance with the requirements f the Crpratins Act 2001 and Australian Accunting Standard AASB 134 Interim Financial Reprting The half-year financial statements are intended t prvide users with an update n the last annual financial statements f GBM Gld Limited and its cntrlled entities (The Grup). As such it des nt cntain infrmatin that represents relatively insignificant changes ccurring during the half-year within the Grup. It is therefre recmmended that these financial statements be read in cnjunctin with the annual financial statements f the grup fr the year ended 30 June 2012, tgether with any public annuncements made during the half-year in accrdance with the cntinuus disclsure requirements in the Crpratins Act The accunting plicies applied in the presentatin f these financial statements are cnsistent with thse applied in the mst recent annual financial statements and the cmparative interim reprting perid. GOING CONCERN The cnslidated grup generated a net prfit fr the six mnth perid ended 31 December 2012 f $2,409,547 (six mnth ended 31 December 2011 Lss: $3,346,352) and shws a wrking capital deficiency at 31 December 2012 f $4,392,848 (30 June 2012 $5,159,161) befre reclassificatin f nn-current assets relating t the dispsal grup as current assets held fr sale. The grup has net assets f $8,632,039 (30 June 2012: 6,212,492). As disclsed, the grup has entered int an agreement with Wiltshire Asset Management Ltd (WAM) whereby its subsidiary, Inglewd Gld Mining Cmpany Pty Ltd ( INGMC ), is t receive an injectin f A$9m as equity in that cmpany frm WAM, subject t any and all required apprvals. The ASX clarified n 13 March 2013 that sharehlder apprvals were nt required fr the transactin. The first A$1.08m f this was paid in the reprting perid. A further A$350,000 was paid pst the reprting perid in March 2013 and a further amunt f between A$1.3m and 3.5m is expected by end March The ttal balance due is expected in the secnd half f the current financial year. Withut these funds, significant dubt exists as t whether the grup can cntinue as a ging cncern. These funds will allw INGMC t settle all its bligatins in respect f creditrs and accruals and bring its deferred payment bligatins current. A decisin will be made at that time as t whether t repay the apprx A$2.9m principal relating t the deferred gld revenue facility. All f the abve funds will be cnverted t shares in INGMC in 3 tranches tranche 1 being cnversin f the first A$1m injected by WAM t 20% f INGMCO, tranche 2 sees the next $4m being cnverted t give WAM in ttal 50% f INGMC and tranche 3 sees the next $4m being cnverted t give WAM 80% f the shares in INGMC GBM GOLD LTD 27

29 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Of the abve injectin f funds in t INGMC A$1m will be paid t GBM, which will allw it t settle all f its and its ther subsidiaries bligatins, presently ttalling apprximately $600,000. The Grup currently has sme liabilities which are in arrears. Hwever with the nging supprt frm these creditrs, liabilities in arrears will be settled upn receipt f cash as detailed in this nte. In additin GBM has an agreement with Sterlingtn Resurces Ltd whereby a further ~A$700,000 is t be injected as equity at 1.2c per share. This is expected t be received by end March 2013 and it, alng with ~$300k f what are presently shwn as current liabilities, will upn receipt be cnverted t shares in GBM. Sterlingtn als has discussins with a range f ther investrs wh are indicating willingness t becme sharehlders in GBM. Again these discussins are aimed at resulting in funding arrangements r equity injectin being received in March r first half April In additin GBM has a receivable frm WAM f A$4.25m relating t the sale t WAM f its subsidiary Industrial Sands & Gravels Pty Ltd (ISG). The ISG sale ccurred in September 2012 fr an amunt f A$5m. Of this $750,000 has been received and a further A$4.25m is t be paid at $250,000 per mnth fr 17 mnths frm July 2013 t Nvember The directrs are cnfident that this and ther capital raising prjects in the pipeline fr the shrt term future will be successful given the cmpany s histric successful capital raising recrd, as well as the agreements entered int and cmmitments received frm investrs. The directrs are f the pinin that as a result f the abve the grup remains a ging cncern and that the financial statements shuld be prepared n a ging cncern basis which cntemplates the cntinuity f nrmal business activities and the realisatin f assets and settlement f liabilities in the rdinary curse f business. This is based n the Directrs cnfidence in the Grup s strategic future plans; the investment and funding arrangements entered int as described abve, including the directrs expectatin that the fllwing planned capital raising prjects in the shrt term will be successful: $700,000 due frm Sterlingtn Resurce t be received by GBM by end March 2013 Nt less than $1,300,000 and up t $3,500,000 due frm WAM t be received by INGMC by end March 2013 Further equity f A$500,000 1,000,000 t be received by GBM during April 2013 A further A$4,000,000 t be received by INGMC in cash, cash equivalents r equipment during the secnd half f the financial year and prir t the end f this financial year. During the next financial year A$3,000,000 f the GBM receivable re the ISG sale t be received by GBM The directrs have develped a strategic plan fr the Inglewd site. This invlves the Inglewd Gld Mining cmpany cntinuing a tw fld apprach f (i) rapidly increasing its Resurce inventry, in the shrt term mre fcused n taking its existing near surface Resurce and explratin targets thrugh t a stage where they can be cnfidently mined and (ii) attending t varius peratinal issues at the Maxwell Mill by further Capex and returning it t peratin initially cntinuing t prcess the existing ROM heap, nearby tailings and small quantities f undergrund re frm the Maxwell Mine GBM GOLD LTD 28

30 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 Whilst in the shrt term the Inglewd peratin is prjected t be breakeven at best, nce the first f the higher grade and higher vlume pen pits is n stream INGMC prjects it can cmmence generating cnsistent and grwing prfits - with an nging ability t extract and prduce cmmercial quantities f gld frm its tenements at a prfitable margin. Based n this plan, and the INGMC transactin with WAM, the directrs are cnfident that INGMC has sufficient resurces and will have the infrastructure in place t ensure INGMC starts prducing prfitably in the medium term. Histrical reliability f the INGMC plant and equipment has prevented prfitable prductin. Hwever, the significant issues with the plant and equipment have been largely reslved - with the further required actins identified and plans made t implement the remaining required actins which are mainly in respect f the secndary crusher, cmpressed air supply, tankage, imprvement t the carbn handling, additin f carbn regen circuit and cmpletin f further apprved tailings facilities. With these matters reslved and mining access t the first f a number f planned pen pits in place, the directrs are cnfident that INGMC will perate effectively and prfitably in the medium term. In additin GBM and the ther grup cmpanies have significant explratin and ther crprate expansin bjectives aimed t bring in t place further significant Resurce and ther prductin sites. Subject t GBM receiving the funds as set ut abve, which are required t sustain the Grup in the shrt term, further funding will then be surced mst likely at the prject level. This is needed t expand the explratin prgrammes at and develpment f the ther existing prjects and t review and ptentially acquire ne r mre f varius Internatinal prjects which are being investigated. The Bard als remains cmmitted t the Grup s nging explratin prgrammes, althugh there is sme flexibility in the timing and funds that will be cmmitted. If the cnslidated entity is unable t cntinue as a ging cncern it shall be required t realise its assets and extinguish its liabilities ther than in the nrmal curse f business and at amunts different t thse stated in the financial statements. N adjustments have been made t the financial reprt relating t the recverability and classificatin f the asset carrying amunts r the classificatin f liabilities that might be necessary shuld the cnslidated entity nt cntinue as a ging cncern 2 SEGMENT INFORMATION Segment infrmatin is presented using a management apprach, being segment infrmatin prvided fr internal reprting purpses used by the executive management cmmittee. DESCRIPTION OF SEGMENTS Management has determined the perating segments based n reprts reviewed by the executive management cmmittee fr making strategic decisins. The executive management cmmittee cmprises the executive chairman and subsidiary/divisinal managers. cmmittee mnitrs the business based n the stage f explratin and develpment and gegraphic lcatin f tenements. This has resulted in the identificatin f the fllwing reprtable segments: Inglewd Segment and Operatinal fcus (Victria) The Operatinal fcus at Inglewd is based arund the Maxwells Mill site, and at present represents the majrity f the cmpany s activity. The GBM GOLD LTD 29

31 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 The Maxwells Mill cmprises an established and functinal gravity and CIP prcessing base capable f prcessing ,000t f material per annum, prcessing tnnage based n either single shift 12 hur per day, 7 day peratin r 24 hur 7 day peratin. This prcessing site is presently fed frm a range f lw grade histrical surface depsits as well as small quantities f undergrund re frm the adjacent Maxwells. The Maxwells Mine has had 3 prductin phases being the histrical apprx 1880 fllwed by a revival in the 1920 s - ver which perids apprx 120,000 z were prduced; when ~10,000 z were prduced ; and the recent phase under GBM wnership frm 2006 when recent mining activity has prduced apprx 1,000 z. Inglewd and its related resurce prjects (refer diagram in this reprt) cver ~10,000ha, and cntain apprx 200,000 Oz f Resurce with extensive well defined Explratin Targets f upwards f 600,000 Oz (refer t table herein fr details f the Explratin Target parameters) Avca Segment and Operatinal Fcus (Victria) With the sale f ISG and its Beavis prject the Operatinal fcus at Avca is based n the tw adjacent Mining licences cmprising the Fiddlers Creek site with its mill and mine. The Fiddlers Creek mill and mine are nt presently perating, but subject funding initiatives being successful it is intended that the Mill will be taken back in t peratin and a new access t the mine t be established t allw prductin in the next 18 mnths, with the Mill available t prcess ther material frm the larger Avca area as well as the Fiddlers Creek mine. The tenements related t the Avca peratinal fcus cver ~9,500 ha, and cntain apprx 10,000 Oz f Resurce with Explratin Targets f apprximately a further ,000z (refer Explratin Target table herein fr full parameters f same) Segment Avca Operatin 31-Dec-12 Inglewd Operatin (Held fr sale) Rest f Grup Half year ended 30 December 2012 $ $ $ Ttal Ttal segment revenue and ther incme ,216 4,710,048 4,880,558 Segment result (1,768) (1,594,389) 4,005,704 2,409,547 Segment asset 145,848 8,352,916 6,585,779 15,084,543 Segment Avca Operatin 31-Dec-11 Inglewd Operatin (Held fr sale) Rest f Grup Half year ended 30 December 2011 $ $ $ Ttal Ttal segment revenue and ther incme , ,163 Segment result (22,064) (2,389,397) (934,891) (3,346,352) Segment asset 1,166,658 11,119,926 47,705 12,334, GBM GOLD LTD 30

32 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 There is revenue between the head ffice and segments which has been eliminated as bth cst and revenue in the abve, s that segment revenues and csts shwn are nly revenues frm external custmers. The executive management cmmittee mnitrs segment perfrmance based n prfit r lss befre incme tax. The recnciliatin f the segment result t the lss befre incme tax is as fllws: 31-Dec Dec-11 $ $ Trading Segment Results (1,596,157) (2,411,461) Interest received 1,240 2,694 Dispsal f subsidiary 4,709,210 0 Other Incme 2,756 77,771 Prfessinal, cnsulting and management fees Finance cst Other expenses Prfit (Lss) befre incme tax benefit (261,413) (95,967) (90,857) (327,022) (355,232) (592,367) 2,409,547 (3,346,352) 3 DISPOSAL OF SUBSIDIARY During the perid, the shares in Industrial Sands and Gravel Pty Ltd were dispsed fr a ttal f $5m with $750,000 paid n depsit. The Balances is due in 17 instalments f $250,000 cmmencing July Breakdwn as fllws : Prceeds Less : Accunting Cash flw $ $ 5,000, ,000 Dispsal f Assets 24, ,187 Dispsal f subsidiary (315,416) (315,416) Adjustment - Reserves - (90,000) Net Prfit / Prceeds 4,709, , GBM GOLD LTD 31

33 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE As disclsed in nte 1, Ging Cncern, the Grup has entered int an arrangement with Wiltshire Asset Management (WAM) whereby the subsidiary Inglewd Gld Mining Cmpany Pty Ltd will receive a cash injectin in exchange fr equity. The Grup s resulting interest in this entity will be diluted t a nn-cntrlling interest and therefre the results, assets and liabilities f this entity are stated as thse f a dispsal grup held fr sale in accrdance with accunting standards. The accunting standards deem this the apprpriate treatment despite it nt being the Grup s intentin t dispse f its Inglewd investment. 31-Dec Jun 2012 $ $ Assets reclassified as held fr sale Plant, prperty & equipment 7,699,555 8,583,630 Explratin and evaluatin 235, ,692 Intangible assets 64,250 64,250 Inventries 337, ,891 Trade and ther receivables 3,813 16,404 Cash at Bank 11,821 52,145 8,352,916 9,370,012 Liabilities reclassified as held fr sale Financial Liabilities 1,145,942 67,989 Prvisins 3,180,009 3,111,333 Trade and ther payables 762,523 1,709,708 5,088,474 4,889,030 Results frm dispsal grup classified as held fr sale Revenue 170, ,351 Cst f sales (958,653) (1,464,444) Expenses (805,952) (699,694) (1,594,389) (1,913,787) Cash flws generated in the perid by the dispsal grup classified as held fr sale are as fllws: 31-Dec-12 Cash utflws frm perating activities (1,392,849) Cash inflws frm financing activities 209,985 Cash inflws frm investing activities 1,142,540 Recnciliatin f cash flws t the statement f cash flws: Cash and cash equivalents at start f perid 52,145 Net decrease in cash and cash equivalents (40,324) Cash and cash equivalents at end f perid 11,821 Recnciliatin f cash Cash and cash equivalents f cntinuing peratins 35,926 Cash and cash equivalents f dispsal grup reclassified as held fr sale 11,821 47, GBM GOLD LTD 32

34 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December DIVIDENDS N dividends have been paid r prvided fr in the current perid 6 ISSUED CAPITAL Includes rdinary shares and ptins issued as part f nging Capital restructure 667,784,944 (30 June 2012: 659,451,611) fully paid rdinary shares 31-Dec-12 Cnslidated 30-Jun-12 $ $ 24,063,357 23,963,357 Cnslidated 31-Dec Jun-12 N. N. Ordinary Shares At the beginning f the reprting perid 659,451, ,483,877 Shares issued during the year - Private placement (During the perid) 8,333, ,967,734 At the end f the reprting perid 667,784, ,451,611 Optins exercisable at n r befre 31 December 2012 At the beginning f the reprting perid Optins issued during the perid Optins expired during the perid 102,088,691-62,281,533 - (164,370,224) EVENTS SUBSEQUENT TO REPORTING DATE N material events have ccurred subsequent t the Reprting Date. A further $350,000 was received frm Wiltshire Asset management under the Inglewd investment agreement and $70,000 frm Sterlingtn under its investment agreement with GBM. 8 CONTINGENT LIABILITIES AND ASSETS There has been n change in cntingent liabilities r assets since the last annual reprting date GBM GOLD LTD 33

35 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December LEASE DISCLOSURES 2012 $ 2011 $ Cmmitments under nn-cancellable perating leases: Nt later than 1 year 104,541 72,000 Later than 1 year and nt later than 5 years 42, , SIGNIFICANT TRANSACTIONS IN THE PERIOD Investment cmmitment f A$9m secured by INGMC frm Wiltshire Asset management Ltd (WAM). Receipt f initial A$1.08m f these funds in the perid Receipt f A$750,000 frm the sale f ISG in the perid GBM GOLD LTD 34

36 GBM Gld Limited Interim Reprt Fr The Half Year Ended 31 December 2012 DIRECTORS' DECLARATION The Directrs f GBM Gld Limited declare that: (a) (b) the financial statements and ntes set ut n pages 19 t 27 are in accrdance with the Crpratins Act 2001 and: i. cmply with Accunting Standard AASB 134 Interim Financial Reprting and the Crpratins Regulatins 2001; and ii. give a true and fair view f the cnslidated entity s financial psitin as at 31 December 2012 and f its perfrmance fr the half-year ended n that date. In the directr s pinin, there are reasnable grunds t believe that the cmpany will be able t bring all f its bligatins current ver the next 4 weeks and thereafter t cntinue t pay its debts as and when they becme due and payable. This declaratin is made in accrdance with a reslutin f the Bard f Directrs and is signed fr and behalf f the directrs by: Ian W Smith Directr Bendig 18 March GBM GOLD LTD 35

37 Level 10, 530 Cllins Street Melburne VIC 3000 T +61 (0) F +61 (0) INDEPENDENT AUDITOR S REVIEW REPORT TO THE MEMBERS OF GBM GOLD LIMITED Reprt n the Half-Year Financial Reprt We have reviewed the accmpanying half-year financial reprt f GBM Gld Limited and cntrlled entities (the cnslidated entity ) which cmprises the cnslidated statement f financial psitin as at 31 December 2012, and the cnslidated statement f cmprehensive incme, cnslidated statement f changes in equity and cnslidated statement f cash flws fr the half-year ended n that date, ntes cmprising a summary f significant accunting plicies and explanatry infrmatin and the directrs declaratin. Directrs Respnsibility fr the Half-Year Financial Reprt The directrs f GBM Gld Limited ( the cmpany ) are respnsible fr the preparatin f the half-year financial reprt that gives a true and fair view in accrdance with Australian Accunting Standards (including the Australian Accunting Interpretatins) and the Crpratins Act 2001, and fr such internal cntrl as the directrs determine is necessary t enable the preparatin f the half-year financial reprt that is free frm material misstatement, whether due t fraud r errr. Auditr s Respnsibility Our respnsibility is t express a cnclusin n the half-year financial reprt based n ur review. We cnducted ur review in accrdance with Auditing Standard ASRE 2410: Review f a Financial Reprt Perfrmed by the Independent Auditr f the Entity, in rder t state whether, n the basis f the prcedures described, we have becme aware f any matter that makes us believe that the half-year financial reprt is nt prepared, in all material aspects, in accrdance with Accunting Standard AASB 134: Interim Financial Reprting and the Crpratins Act As the auditr f GBM Gld Limited, ASRE 2410 requires that we cmply with the ethical requirements relevant t the audit f the annual financial reprt. A review f a half-year financial reprt cnsists f making enquiries, primarily f persns respnsible fr financial and accunting matters, and applying analytical and ther review prcedures. A review is substantially less in scpe than an audit cnducted in accrdance with Australian Auditing Standards and cnsequently des nt enable us t btain assurance that we wuld becme aware f all significant matters that might be identified in an audit. Accrdingly, we d nt express an audit pinin. Independence In cnducting ur review, we have cmplied with the independence requirements f the Crpratins Act We cnfirm that the independence declaratin required by the Crpratins Act 2001, which has been given t the directrs f GBM Gld Limited, wuld be n the same terms if prvided t the directrs at the time f this auditr s review reprt. Mre Stephens ABN Liability limited by a scheme apprved under Prfessinal Standards Legislatin. An independent member f Mre Stephens Internatinal Limited members in principal cities thrughut the wrld. The Melburne Mre Stephens firm is nt a partner r agent f any ther Mre Stephens firm. And is a separate partnership in Victria.

38 Cnclusin Based n ur review, which is nt an audit, nthing has cme t ur attentin that causes us t believe that the half-year financial reprt f GBM Gld Limited and cntrlled entities is nt in accrdance with the Crpratins Act 2001 including: (i) giving a true and fair view f the cnslidated entity s financial psitin as at 31 December 2012 and f its perfrmance fr the half-year ended n that date; and (ii) cmplying with AASB 134: Interim Financial Reprting and the Crpratins Regulatins Significant Uncertainty Regarding Ging Cncern Withut qualificatin t the cnclusin expressed abve, we draw yur attentin t Nte 1, Ging Cncern, in the financial statements. The Grup has a wrking capital deficiency f $4,392,848 at 31 December 2012 (30 June 2012: $5,159,161) befre reclassificatin f nn-current assets held fr sale t current assets. These cnditins, alng with ther matters set frth in Nte 1, Ging Cncern, indicate the existence f a material uncertainty that may cast significant dubt regarding the Grup s ability t cntinue as a ging cncern. In the event that the Grup is unable t cntinue as a ging cncern it shall be required t realise its assets and extinguish its liabilities ther than in the nrmal curse f business and at amunts different t thse stated in the financial statements. In particular, any such adjustments wuld be expected t impact the carrying value f the explratin and evaluatin asset, the Grup s prperty, plant and equipment and inventries. The ttal carrying value f these assets amunted t $9,836,211 at 31 December 2012 (30 June 2012: $11,115,784). Mre Stephens Chartered Accuntants Nick Michael Partner Melburne, 18 March 2013