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Redbank Copper Limited ABN 66 059 326 519

FINANCIAL REPORT

For the half year ended 31 December 2018

Redbank Copper Limited

ABN 66 059 326 519

-(i)-

CORPORATE DIRECTORY

CONTENTS

BOARD OF DIRECTORS

Directors’ Report........................................................ 1

Auditor’s Independence Declaration ........................ 14

Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income........................... 15

Condensed Consolidated Statement of Financial Position .................................................................... 16

Condensed Consolidated Statement of Changes in Equity ...................................................................... 17

Condensed Consolidated Statement of Cash Flows 18

Condensed Notes to the Consolidated Financial Statements .............................................................. 19

Declaration by Directors .......................................... 25

Independent Auditor’s Review Report ..................... 26

Michael Fotios Neil Porter Craig Hall

Executive Chairman Non-executive Director Non-executive Director

COMPANY SECRETARY

Carol New REGISTERED OFFICE 24 Mumford Place Balcatta WA 6021 Telephone: +61 8 6241 1888 Facsimile: +61 8 6241 1811 Email: admin@redbankcopper.com.au Website: www.redbankcopper.com.au SHARE REGISTRY Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth WA 6000 Telephone: (61 8) 9323 2000 Facsimile: (61 8) 9323 2033 Email: perth.services@computershare.com.au Website: www.computershare.com.au AUDITORS Stantons International Audit and Consulting Pty Ltd SOLICITORS Lavan Legal Squire Patton Boggs Cozens Johansen Lawyers SECURITIES EXCHANGE LISTING Shares are quoted on the Australian Securities Exchange (ASX) under trading code RCP.

This half year financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 30 June 2018 and any

public announcements made by Redbank Copper Limited during the half year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

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DIRECTORS' REPORT

The Directors present their financial report of Redbank Copper Limited (“Redbank” or the “Company”) and of the consolidated group, being the Company and its controlled entities for the half year ended 31 December 2018. DIRECTORS

The names of the Directors of the Company in office during the course of the half year and up to the date of this report are as follows: Michael Fotios (Executive Chairman) Neil Porter (Non-executive Director) Craig Hall (Non-executive Director) – Appointed 21 January 2019 Craig Readhead (Non-executive Director) – Resigned 21 January 2019 All Directors held their position as a Director throughout the entire half year and up to the date of this report, unless otherwise indicated. REVIEW OF OPERATIONS AND ACTIVITIES

The net loss of the consolidated group for the half year ended 31 December 2018 was $368,956 (31 December 2017: profit of $248,849).

MILLERS CREEK, SOUTH AUSTRALIA During the quarter the company announced the granting and additional application for IOCG prospective tenements in the Gawler Craton in South Australia (refer ASX:RCP 7/11/2018). EL6247 (to be known as Millers Creek), is 154 km2 in size, and located in the Millers Creek area approximately 140 km northwest of Woomera. The Company has also applied for an additional licence contiguous with the Millers Creek tenement. Application EL2008-164 (“Kingoonya”) is 957 km2 in size, and brings the combined project size under grant and application to 1,111 km2. The second application takes in two partially drill-tested gravity anomalies (Billa Kalina and Mt Paisley) in the vicinity of Millers Creek. The company regards the Gawler Craton as a world-class IOCG Belt, and as a premier search location for IOCG deposits such as Olympic Dam, Prominent Hill, and Carrapateena, reinforced by the recent Oak Dam IOCG discovery announced by BHP (refer ASX:BHP 27/11/2018)

Figure 1. Location of Millers Creek in SA relative to the Redbank Project in NT. The Company has identified at least one compelling undrilled gravity anomaly at Millers Creek from density modelling imagery generated from open file gravity data, which it intends to confirm and drill test. The company considers it has at least one compelling undrilled gravity anomaly on EL6247 from density modelling imagery generated from open file gravity data that it intends to confirm and drill test, around 100km northwest of Olympic Dam. The company considers the target may represent an Iron Ore Copper-Gold (IOCG) system underneath basement cover.

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Figure 2. Location of Millers Creek relative to significant base and precious metal mines and deposits.

https://www.ozminerals.com/uploads/media/171121_Prominent_Hill_2017_Mineral_Resource_and_Ore_Reserve.pdf p1 https://www.bhp.com/-/media/documents/investors/annual-reports/2018/bhpannualreport2018.pdf p259 https://www.ozminerals.com/uploads/docs/170824_ASX_Release_Resource_and_Reserve_Statement_-_Carrapateena_August_2017.pdf p5

Figure 3. Location of Millers Creek relative to significant mines and major company tenure Discussion of Geology and mineralisation.

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The Gawler Craton (see Figure 2) is a region of Archaean to Mesoproterozoic crystalline basement, underlying most of South Australia, which has not undergone substantial deformation in the past 1450 million years. Significant middle Proterozoic deposits (and the Millers Creek target) are typically covered by conductive post-mineral cover sedimentary rocks of the Stuart Shelf. These sediments are usually barren, and can be of variable thickness, for example at Prominent Hill, depth to basement (mineralisation) is approximately 100 m; at Olympic Dam, 350 m; and at Carrapeteena, 450 m. Depth to basement can vary significantly in short lateral extent, for example at the Acropolis deposit, south-west of Olympic Dam, depth to basement can vary from 600-1000 m over several hundred metres lateral extent. The depth to mineralising systems deems conventional surface geochemistry and most electrical geophysical techniques ineffective. Significantly, large mineralised systems typically show a density contrast between stratigraphy and alteration systems, and to a certain extent show sub-vertical, cylindrical geometry, which can be targeted as potential field anomalies, typically through examination of gravity surveys. Systems tend to be paleo- topographic highs (i.e. resistant ridges in the basement terrain) which amplify the anomaly contrast. However, post-mineral cover can subdue the response to the level of geological noise if basement depth is excessive. The Company has selected Millers Creek from available open ground and utilised images from available gravity data in order to discriminate gravity anomalies, after preparation of a density model and targets selected from the 1500 m depth slice (refer Figures 4, 5). The Millers Creek gravity anomaly compares favourably with known deposits and prospects in the region. The Company considers anomalies which persist at depth are more likely to represent mineralised systems. Examining the well-documented discovery history of the larger known IOCG deposits (refer Figures 3, 4 and 5) highlights the risk and reward in the exploration for such systems.

▪ At Olympic Dam (approximately 350 m of cover), a target was modelled on a coincident magnetic and gravity high, and

discovery hole RD1 drilled in June 1975 intersected 38 m @1.05% Cu, 0.27 g/t Au, 70 ppm U3O8 from 353 m

immediately after passing through the cover, however four of the next five completed holes were barren. The deposit

was finally confirmed in September 1976 when hole RD10 intersected 174 m @ 2.03% Cu, 0.66 g/t Au and 620 ppm

U3O8 from 344 m.

▪ At Prominent Hill (approximately 100 m of cover) high-grade copper-gold mineralization at was discovered in October

2001 through drill testing of the non-magnetic portion on the flank of a gravity anomaly. Results from discovery hole

URAN1 included; 20 metres @ 3.0g/t Au, 107 metres @ 1.9% Cu and 0.65g/t Au and, deeper, 152 metres @ 1.1% Cu

and 0.6 g/t Au.

▪ At Carrapeteena (approximately 450 m of cover) two drill holes were planned in mid-2005, one on the bullseye gravity

anomaly, with a near coincident magnetic response; and a second designed to test the MIMDAS (then propriety IP and

MT) conductivity anomaly. The first hole CAR01 was barren, intersecting an extremely copper-depleted mafic, while

discovery hole CAR02, sited south 800 m south, intersected 178.2 m @ 1.83% Cu, and 0.64 g/t Au, from 476 m,

including 75 m @ 2.89% Cu & 0.4 g/t Au.

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Figure 4. Location of Millers Creek gravity anomaly relative to Olympic Dam and Prominent Hill deposit footprints at same scale (refer Figure 3). Base image is 1500 m vertical depth slice of gravity model, anomalies are red to magenta.

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Figure 5. Location of Millers Creek gravity anomaly relative to Carrapateena and Oak Dam deposit footprints at same scale (refer Figure 3). Base image is 1500 m vertical depth slice of gravity model, anomalies are red to magenta.

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Two local gravity prospects have been partially drilled-tested in proximity to Millers Creek (refer Figures 4, 5). The company has recently applied for ground which takes in these prospects.

▪ At the Billa Kalina prospect, some 18 km to the north of the Millers Creek anomaly, Eromanga Uranium Limited (earning

50% under JV with Maximus Resources) drilled 2 holes in 2007. Drillhole BKDDH01, sited on the peak of the gravity

anomaly, intersected 248 m of Mesozoic and Permian sedimentary cover before penetrating into a sequence of

alternating mafic and andesitic volcanics, with the hole terminated at 600 m depth. Drillhole BKDDH02, sited on the

flank of the gravity anomaly some 800 m to the north-west of BKDDH01, intersected 317 m of Mesozoic and Permian

sedimentary cover before penetrating into a similar sequence of alternating mafic and andestic volcanics to the bottom

of hole at 596 m. Within the mafic units intersected, common quartz-hematite veining and minor pyrite was noted,

however no iron-oxide copper gold mineralisation was intersected. Eromanga advised that while these two holes drilled

did not fully explain the source of the gravity anomaly it was satisfied that the target had been adequately tested within

current acceptable economic limits.

The Company intends to review this drilling and lithologies encountered for confirmation that the mafic sequence did

in fact constitute basement, and assess residual targets in the area.

▪ At Mt Paisley, some 15 km north west of Millers Creek, Esso completed grid-based gravity and ground magnetic

surveys further outline two broad gravity highs associated with discrete magnetic anomalies, which it was hoped might

have potential for Olympic Dam style Cu-U-Au deposits in the early 1980’s. These features were tested by 2 diamond

drillholes. DP1 (total depth 616.6 m) entered volcanics of a similar density to the Pandurra Formation at 166 m depth.

DP2 entered un-mineralised Pandurra Formation below the Mesozoic cover, and remained in it over the depth interval

204.5 - 860 m. Neither tested basement. A subsequent detailed gravity survey indicated the existence of a fault

between the two drill sites, which was thought to account for the major stratigraphic displacement between them.

In February 2008, IMX Resources drilled a single vertical diamond hole, MPD001, to a depth of

1683.7 m, intersecting basement rocks at 1288 m, testing what was referred to as the Marshall gravity anomaly. Core

from the basement included a 185 m thick sequence of dense hematite-rich banded iron formation with minor zones of

brecciation, underlain and intruded by dolerite dykes. The combination of a dense BIF sequence and intrusions of

magnetic dolerites was thought to explain the geophysically modelled deep-sourced, large gravity and magnetic

anomaly. No haematitic alteration or other distal vectors to an IOCG mineralised system were observed in the basement

drill core. Although trace chalcopyrite was present in the BIF and shales, this copper sulphide mineralisation was not

regarded with any significance.

The Company considers that the Mt Paisley gravity anomalism is complex and large, and the presence of mineralised

systems in the area cannot be discounted on the basis of the single hole to basement completed to this point.

The Company expects to undertake work at Millers Creek as a compliment to its Redbank Project during the wet season in the Northern Territory. The Company anticipates that the government release of the new depth to basement model in conjunction with the new aeromagnetic data in 2019, in conjunction with its own studies, will assist in the understanding of the potential of this area, and the Company looks forward to updating the market with advances at this exciting project.

REDBANK, NORTERN TERRITORY The Company holds over 1,000 km2 of granted tenure within the South McArthur River Basin in the Northern Territory (see Figures 6, 7) that it considers prospective for copper, cobalt and other base metal mineralisation. Known copper mineralisation at the historic mining centre of Redbank is hosted by multiple occurrences of steeply-dipping brecciated zones forming cylindrical ‘pipes’ of up to and over 100 metres in diameter and drilled to depths of approximately 300 metres at certain deposits.

The Redbank Copper Project currently contains an indicated and inferred Mineral Resource of some 96,000 tonnes of copper, from an inventory of 6.2Mt of ore averaging 1.5% Cu (refer Appendix 2- also refer 2011 Annual Report released to ASX on 27 October 2011 and Prospectus released to ASX 13 February 2013). While the Redbank pipes are predominantly copper-mineralised, the Company believes that the cobalt tenor may change in targets to the east and north.

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Figure 6. Redbank location map (relative to significant and relevant deposits).

Open cut mining and processing of sulphide copper ore was undertaken briefly between 1994 and 1996 at the Sandy Flat mine with the concentrate transported to Mt Isa for smelting. High grade (>5% average) copper oxide ore from the mine was stockpiled and later treated via vat leaching. Smaller-scale mining also occurred at the Redbank, Azurite and Prince prospects between 1916 and 1960. The site is currently on care and maintenance. The Company recently undertook a review of cobalt prospectivity within its tenure. The review included geochemical databases and historic drilling records, with the work highlighting an area of some 50km2 about 5km to the east of Redbank on EL10335, where anomalous cobalt values (>50ppm) are recorded in stream sediment samples (refer Figure 8). This priority area contains numerous copper showings and targets, most of which remain untested for copper, and in particular for associated cobalt, to the east of the known copper resources at Redbank. The company also reviewed previous work on its GC2 prospect on EL24654 for cobalt prospectivity. Ground gravity surveys are planned on both EL10335 and EL24654, to assist in the definition of prospective targets within the priority areas from aeromagnetic lows, certain topographic features and the inversion of gravity data. From previous work, the Company considers coincident magnetic and gravity lows, combined with TEM highs are indicators of breccia-style copper and copper-cobalt mineralisation. The company was unable to undertake this work in the December quarter prior to the wet season hiatus. The Company has also planned a comprehensive helicopter-supported Versatile Time Domain Electromagnetic (VTEM) programme on 80m line spacing to discern advanced targets for further field reconnaissance, for the coming field season.

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Figure 7: Redbank -Northern Territory tenure location map

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Figure 8: Regional Cobalt stream sediment values, overlain on local DTM imagery, highlighting areas of interest, and proposed area for VTEM surveys.

CORPORATE During the half-year the company conducted its AGM (refer ASX:RCP 29/11/18), with Messers Craig Readhead and Neil Porter being returned as Directors. A 10% placement capacity was approved. The Remuneration report received more than 25% of votes cast against its adoption, constituting a first strike for the purposes of the Corporations Act 2001 (Cth). On 24th September 2018, the Company renegotiated the terms of the Loan Facility agreement with Michael Fotios (Chairman and substantial shareholder) and his associated entities. The term has been extended to 31 December 2019 and the loan facility has been increased to $1,500,000. Interest is charged at 8% per annum (on a simple basis). During the half-year, the Company continued its efforts to identify and review suitable corporate, copper and base metal opportunities within Australia. The Board continues to work on capital raising initiatives that will fund exploration and development on the Group’s tenements.

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EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD

On 16 January 2019, the Company announced the appointment of Ms Carol New as Company Secretary. Mr Brendon Morton

resigned from this position.

On 21 January 2019, the Company announced the appointment of Mr Craig Hall as a Non-executive Director. Mr Craig

Readhead resigned from this position. There are no additional matters or circumstances that have arisen since 31 December 2018 other than as disclosed in Note 8 to the financial statements. AUDITOR’S INDEPENDENCE A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is included on page 14 of this financial report. Signed in accordance with a resolution of the Board of Directors.

Michael Fotios Executive Chairman Perth, Western Australia 15 March 2019

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Appendix 1: Tenement Schedule Mining tenements held at the end of the half-year and their location.

TENEMENT No. LOCATION INTEREST % HOLDER

EL10335 NT 100 Gulf Copper Pty Ltd1

EL24654 NT 100 Redbank Operations Pty Ltd2

EL28288 NT 100 Redbank Operations Pty Ltd2

EL28289 NT 100 Redbank Operations Pty Ltd2

EL28290 NT 100 Redbank Operations Pty Ltd2

EL31316 NT 100 Redbank Operations Pty Ltd2

ELR94 NT 100 Redbank Operations Pty Ltd2

MLN634 NT 100 Redbank Operations Pty Ltd2

MLN635 NT 100 Redbank Operations Pty Ltd2

EL6247 SA 100 Redbank Copper Limited

*ELA 2018/00164 SA 0 Redbank Copper Limited3

Note 1: The tenement is currently in the process of being transferred to Redbank.

Note 2: Redbank Operations Pty Ltd is a wholly owned subsidiary of Redbank Copper Limited.

Note 3: *Application, number is SARIG file reference.

Competent Persons Statement

The information in this report that relates to the Exploration Results and Mineral Resources at the Redbank is based on information

reviewed by Mr Craig Hall, whom is a member of the Australian Institute of Geoscientists. Mr Hall is a contractor to Redbank Copper Limited

and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity

he is undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves (JORC Code 2012)’. Mr Hall consents to the inclusion of the data in the form and context in

which it appears.

The information in this report that relates to the Redbank Mineral Resource is based on information originally compiled by Mr Phil

Jankowski, whom is a full-time director of Baltica Consulting; then employed by SRK Consulting, and reviewed by Mr Hall. This information

was originally issued in the Company’s ASX announcement “Redbank increases copper resource and grade”, released to the ASX on 8th

December 2009. The Company confirms that it is not aware of any new information or data that materially affects the information included

in the original market announcements. The company confirms that the form and context in which the findings are presented have not

materially modified from the original market announcements. The information has not been updated since to comply with the JORC Code

2012 on the basis that the information has not materially changed since it was last reported.

REDBANK COPPER LIMITED

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Appendix 2: Mineral Resources, Redbank Project, NT

By Deposit

Indicated Inferred Total

tonnes Cu% Cu Metal

(t) tonnes Cu%

Cu Metal (t)

tonnes Cu% Cu Metal

(t)

Azurite 222,000 1.6 3,500 20,000 1.3 200 242,000 1.5 3,700

Redbank 196,000 2.2 4,300 185,000 1.1 2,000 381,000 1.7 6,300

Punchbowl 435,000 1.2 5,100 259,000 1.6 4,200 694,000 1.3 9,300

Roman Nose - - - 1,287,000 1.4 17,900 1,287,000 1.4 17,900

Bluff 1,062,000 1.6 17,400 922,000 1.6 14,600 1,984,000 1.6 32,000

Prince - - - 101,000 1.7 1,700 101,000 1.7 1,700

Sandy Flat 851,000 1.5 12,800 688,000 1.8 12,000 1,539,000 1.6 24,800

Stockpiles - - - 40,000 2.0 800 40,000 2.0 800

Total Project 2,766,000 1.55 43,100 3,502,000 1.52 53,400 6,268,000 1.53 96,500

By Style

Oxide Indicated Inferred Total

tonnes Cu% Cu Metal

(t) tonnes Cu%

Cu Metal (t)

tonnes Cu% Cu Metal

(t)

Azurite 132,000 1.6 2,100 5,000 1.2 100 137,000 1.6 2,200

Redbank 101,000 2.1 2,100 59,000 1.1 600 160,000 1.7 2,700

Punchbowl 20,000 0.7 100 - - - 20,000 0.7 100

Roman Nose - - - 46,000 0.7 300 46,000 0.7 300

Bluff 436,000 1.3 5,700 - - - 436,000 1.3 5,700

Prince - - - 43,000 2.2 900 43,000 2.2 900

Sandy Flat - - - - - - - - -

Stockpiles - - - 27,000 1.9 500 27,000 1.9 500

Total Oxide 689,000 1.5 10,000 180,000 1.3 2,400 869,000 1.4 12,400

Transitional Indicated Inferred Total

tonnes Cu% Cu Metal

(t) tonnes Cu%

Cu Metal (t)

tonnes Cu% Cu Metal

(t)

Azurite 11,000 1.4 200 1,000 1.3 - 12,000 1.4 200

Redbank 31,000 2.4 800 14,000 1.8 200 45,000 2.2 1,000

Punchbowl - - - - - - - - -

Roman Nose - - - - - - - - -

Bluff - - - - - - - - -

Prince - - - - - - - - -

Sandy Flat - - - - - - - - -

Stockpiles - - - 13,000 2.3 300 13,000 2.3 300

Total Transition

42,000 2.4 1,000 28,000 1.8 500 70,000 2.1 1,500

Sulfide Indicated Inferred Total

tonnes Cu% Cu Metal

(t) tonnes Cu%

Cu Metal (t)

tonnes Cu% Cu Metal

(t)

Azurite 79,000 1.5 1,200 14,000 1.4 200 93,000 1.5 1,400

Redbank 64,000 2.2 1,400 112,000 1.1 1,200 176,000 1.5 2,600

Punchbowl 415,000 1.2 5,000 259,000 1.6 4,200 674,000 1.4 9,200

Roman Nose - - - 1,241,000 1.4 17,500 1,241,000 1.4 17,500

REDBANK COPPER LIMITED

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Bluff 626,000 1.9 11,700 922,000 1.6 14,600 1,548,000 1.7 26,300

Prince - - - 58,000 1.3 800 58,000 1.3 800

Sandy Flat 851,000 1.5 12,800 688,000 1.8 12,000 1,539,000 1.6 24,800

Stockpiles - - - - - - - - -

Total Sulfide 2,035,000 1.57 32,100 3,294,000 1.53 50,500 5,329,000 1.55 82,600

Total Project 2,766,000 1.55 43,100 3,502,000 1.52 53,400 6,268,000 1.53 96,500

Notes accompanying Mineral Resource Statement

1. Rounding may result in apparent summation differences between tonnes, grade and contained Cu metal content.

2. Rounding is to the nearest 1,000 tonnes, 0.1% Cu and 100 tonnes Cu metal.

3. Significant figures do not imply an added level of precision.

4. The Roman Nose Resource is wholly classified as Inferred, as there is currently insufficient drill-hole density.

PO Box 1908

West Perth WA 6872

Australia

Level 2, 1 Walker Avenue

West Perth WA 6005

Australia

Tel: +61 8 9481 3188

Fax: +61 8 9321 1204

ABN: 84 144 581 519

www.stantons.com.au

Liability limited by a scheme approved

under Professional Standards Legislation

Stantons International Audit and Consulting Pty Ltd

trading as

Chartered Accountants and Consultants 15 March 2019 Board of Directors Redbank Copper Limited 24 Mumford Place BALCATTA WA 6021 Dear Directors RE: REDBANK COPPER LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Redbank Copper Limited. As the Audit Director for the review of the financial statements of Redbank Copper Limited for the half-year ended 31 December 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the

review; and (ii) any applicable code of professional conduct in relation to the review. Yours faithfully STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (Trading as Stantons International) (Authorised Audit Company) Samir Tirodkar Director

REDBANK COPPER LIMITED

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the half year ended 31 December 2018

Note 31 December 31 December

2018 2017

$ $

Continuing operations

Interest received 1 32,882

R&D offset received

3 - 552,983

Finance costs (25,098) (3,576)

Employee and directors – remuneration expenses (54,000) (54,000)

Depreciation and amortisation - -

Corporate and administrative expenses (85,808) (134,565)

Redbank Copper NT care and maintenance (4,988) (4,168)

Exploration and evaluation expenditure (199,063) (140,707)

Profit/(Loss) from continuing operations (368,956) 248,849

Income tax expense - -

(Loss)/Profit for the period after income tax attributable to

members of the parent company (368,956) 248,849

Other comprehensive income for the period, net of

income tax

Items that may be reclassified to profit or loss - -

Items that will not be reclassified subsequently to profit or loss - -

Other comprehensive income for the period - -

Other comprehensive income/(loss) for the period, net of

income tax - -

Total comprehensive (loss)/income for the period

attributable to members of the parent company

(368,956)

248,849

Earnings per share

Basic and diluted loss per share (cents per share)

7 (0.32) 0.21

The accompanying condensed notes form part of these financial statements.

REDBANK COPPER LIMITED

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2018

NOTE

31 December

30 June

2018 2018

$ $

CURRENT ASSETS

Cash and cash equivalents 1,643 50,375

Trade and other receivables 24,971 20,014

TOTAL CURRENT ASSETS 26,614 70,389

NON-CURRENT ASSETS

Trade and other receivables 23,225 23,225

TOTAL NON-CURRENT ASSETS 23,225 23,225

TOTAL ASSETS 49,839 93,614

CURRENT LIABILITIES

Trade and other payables 4 1,404,851 1,243,901

Loans and borrowings 5 720,779 556,548

TOTAL CURRENT LIABILITIES 2,125,630 1,800,449

NON-CURRENT LIABILITIES

Provisions 23,750 23,750

TOTAL NON-CURRENT LIABILITIES 23,750 23,750

TOTAL LIABILITIES 2,149,380 1,824,199

NET LIABILITIES (2,099,541) (1,730,585)

EQUITY

Issued capital 6 99,004,337 99,004,337

Accumulated losses (102,832,306) (102,463,350)

Reserves 1,728,428 1,728,428

TOTAL DEFICIENCY (2,099,541) (1,730,585)

The accompanying condensed notes form part of these financial statements.

REDBANK COPPER LIMITED

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half year ended 31 December 2018

Issued

capital Reserves

Accumulated

losses

Total

Deficiency

$ $ $ $

At 1 July 2018 99,004,337 1,728,428 (102,463,350) (1,730,585)

Loss for the period - - (368,956) (368,956)

Other comprehensive income - - - -

Total comprehensive loss for the period - - (368,956) (368,956)

At 31 December 2018 99,004,337 1,728,428 (102,832,306) (2,099,541)

Issued

capital Reserves

Accumulated

losses

Total

Deficiency

$ $ $ $

At 1 July 2017 99,004,337 1,728,428 (102,580,783) (1,848,018)

Profit for the period - - 248,849 248,849

Other comprehensive income - - - -

Total comprehensive income for the period - - 248,849 248,849

At 31 December 2017 99,004,337 1,728,428 (102,331,934) (1,599,169)

The accompanying condensed notes form part of these financial statements.

REDBANK COPPER LIMITED

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the half year ended 31 December 2018

31 December

31 December

2018 2017

$ $

Cash flows from operating activities

Receipts from customers 771 -

Payments to suppliers and employees (78,589) (39,757)

R&D offset received - 552,983

Interest received 1 32,899

Interest paid (10) (27)

Net cash (outflow)/inflow from operating activities (77,827) 546,098

Cash flows from investing activities

Net cash from investing activities -

-

Cash flows from financing activities

Loans advanced from other entities 29,000 -

Repayment of loans from other entities 95 (483,904)

Net cash inflow/(outflow) from financing activities 29,095

(483,904)

Net (decrease)/increase in cash and cash equivalents (48,732) 62,194

Cash and cash equivalents at the start of the half year 50,375 2,916

Cash and cash equivalents at the end of the half year 1,643 65,110

The accompanying condensed notes form part of these financial statements.

REDBANK COPPER LIMITED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance

These general purpose interim financial statements for the half year reporting period ended 31 December 2018 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. This interim financial report is intended to provide users with an update on the latest annual financial statements of Redbank Copper Limited (the “Company”) and its controlled entities (referred to as the "consolidated Group" or "Group"). 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 statements of the Group for the year ended 30 June 2018, together with any public announcements made during the half year ended 31 December 2018.

(b) Basis of Preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except, were applicable, for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The accounting policies and methods of computation adopted in the preparation of the interim financial report are consistent with those adopted and disclosed in the Group’s 2018 annual financial report for the financial year ended 30 June 2018 except as listed below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. Significant accounting judgments and key estimates The preparation of the interim financial report requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. In the process of applying the Group’s accounting policies, management has made the following significant accounting judgements and estimates in relation to exploration and evaluation: Exploration and evaluation Exploration and evaluation expenditure is carried forward on the basis that exploration and evaluation activities have not yet reached a stage which permits reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing. In the event that significant operations cease and/or economically recoverable resources are not assessed as being present, this expenditure will be expensed to the income statement. In preparing this interim financial report, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2018. The board recommended a write off of all exploration and evaluation costs. Changes in accounting policy

A number of new or amended standards became applicable for the current reporting period for which the Group has adopted

• AASB 15 Revenue from Contracts with Customers; and

• AASB 9 Financial Instruments

The new accounting policies are disclosed below. There is no impact on the Group for the period ended 31 December 2018.

REDBANK COPPER LIMITED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

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AASB 15 Revenue from contracts with Customers

AASB 15 Revenue from contracts with Customers replaces AASB 118 Revenue. AASB 15 was adopted by the Group pn 1 July 2018. AASB 15 provides a single, principles-based five-step model to be applied to all contracts with customers. Redbank Copper Limited has considered AASB 15 and determined that there is no impact on the Groups’ financial statements as the Group is not generating sales revenue at this stage.

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaces the provisions of AASB 139 Financial Instruments. Recognition and Measurement that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting. The adoption of AASB 9 Financial Instruments from 1 July 2018 did not give rise to any transitional adjustments. Going Concern The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Group incurred a net loss of $368,956 (31 December 2017: net profit of $248,849) and a net cash outflow from operating activities of $77,827 in the period ended 31 December 2018 (31 December 2017: $546,098 inflow). The Directors are of the opinion that there are reasonable grounds to believe that the Company will be able to continue as a going concern. On 26 October 2017, the Company announced it had entered into an agreement with Mr Michael Fotios (Chairman and substantial shareholder), whereby Mr Fotios and his associated entities agreed to provide funding of up to $1,000,000 to the Company. On 26 September 2018, the terms of this agreement were varied resulting in an increase of the facility limit to $1,500,000 and an extension of the completion date of the Capital Raising until 31 December 2019 with interest payable at 8% per annum on a simple interest basis. The Company has received a letter of support from M Fotios and associated entities dated 6 March 2019, confirming continued support and that loans will not be recalled within 12 months of the date of the letter. The Group is also working towards capital raising initiatives and the Directors are confident that it will receive sufficient additional funding from shareholders or other parties. The Directors, having compared the Group’s cash position to committed expenditures in respect of the above matters and are of the opinion that the use of the going concern basis for accounting is appropriate in the circumstances. In the event that the Company does not obtain additional funding and/or reduce expenditure in line with available funding, it may not be able to continue its operations as a going concern.

REDBANK COPPER LIMITED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

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2. SEGMENT INFORMATION

AASB 8 requires a “management approach” under which operating segment information is presented on the basis as that used for internal reporting purposes and are reviewed by the Board (chief operating decision maker) in order to allocate resources to the segment and to assess its performance. Segments have been identified for those specifically allocated to the ongoing care and maintenance, exploration activities and the remainder allocated to corporate. The Group operates in one geographical segment – Australia.

Segment information

Care and

Maintenance Exploration Corporate Consolidated

Half year ended 31 December 2018 $ $ $ $

Segment revenue - - 1 1

Segment (loss)/profit (4,988) (199,063) (164,905) (368,956)

Included within segment loss:

Finance cost - - (25,098) (25,098)

Interest revenue - - 1 1

Half year ended 31 December 2017 $ $ $ $

Segment revenue - - 585,865 585,865

Segment (loss)/profit (4,168) (140,707) 393,724 248,849

Included within segment loss:

Finance cost - - (3,576) (3,576)

Interest revenue - - 32,882 32,882

Segment Assets

At 31 December 2018 8,494 23,225 18,120 49,839

At 30 June 2018 8,494 23,225 61,895 93,614

Segment Liabilities

At 31 December 2018 - (446,001) (1,703,379) (2,149,380)

At 30 June 2018 - (439,476) (1,384,723) (1,824,199)

REDBANK COPPER LIMITED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

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Terms

Trade creditors and accruals are non-interest bearing and normally settled on 30 day terms. At the reporting date,

certain trade and other payables are past due. The ageing of trade and other payables at 31 December 2018 is shown

below.

Current 30-60 Days 60-90 Days >90 Days Total

$32,336 $55,373 $33,686 $1,169,811 $1,291,206

5. LOANS AND BORROWINGS 31 December

2018

30 June

2018

$ $

Current

Other loan – non-interesting bearing - (95)

Other loan – interesting bearing 720,779 556,643

720,779 556,548

Reconciliation of carrying amount:

Opening amount 556,548 605,739

Loans from related parties1 139,329 329,989

Interest on loans from related parties 24,807 32,924

Loans repaid by/(to) related parties 95 (412,104)

Closing amount 720,779 556,548

(1) On 26 October 2017, the Company announced it had entered into an agreement with Michael Fotios (Chairman and substantial shareholder), whereby Mr Fotios and his associated entities agreed to provide funding of up to $1,000,000 to the Company. The loan facility with M Foltios and associated entities is to be repaid in cash within 7 days of the successful completion of a capital raising. Prior to a capital raising, any lender may convert all or some of the outstanding balance of the loan in ordinary shares at the price at which the capital raising is to be completed. Conversion of the loan to ordinary shares is subject to compliance with the applicable laws and regulations including the requirement to seek shareholder approval for a related party transaction.

(2) On 27 September 2018, the terms of the agreement were varied as follows:

• The loan amount was increased to $1,500,000; and

• Within 10 days of receipt by the Company of sufficient funds from future capital raising (the terms of which have not been determined) provided that, if any such capital raising is not completed by 31 December 2019, then interest, repayment terms and/or conversion of the loan will be re-negotiated between the parties. The Loan will be repayable upon demand in the discretion of the Lenders until those revised terms are agreed.

3. OTHER INCOME 31 December

2018

$

31 December

2017

$

R&D offset received(1) - 552,983

- 552,983 (1)The R&D offset received relates to research and development rebates associated with the 30 June 2014 and 30 June 2015 tax returns.

4. TRADE AND OTHER PAYABLES

31 December

2018

$

30 June

2018

$

Trade creditors 1,291,206 1,131,285

Accruals 113,500 112,500

Other payables 145 116

1,404,851 1,243,901

REDBANK COPPER LIMITED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

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9. EXPENDITURE COMMITMENTS

Non-discretionary tenement expenditures

The Group’s beneficially held tenements are located in the Northern Territory and South Australia. To maintain the

tenements current right of tenure, the minimum expenditure requirements and annual rental obligations, as stipulated by

the Northern Territory Department of Primary Industry and Resources (“NTDPIRS”) and the South Australian Department

for Energy and Mining (“SADEM”) must be met, and paid during each tenement anniversary year.

The NTDPIRS provides benchmark guidelines on actual minimum exploration expenditure on exploration licences, and

where expenditure commitments have not been met for 2 consecutive years (and for each consecutive subsequent

year/s), the Department will impose a penalty by way of partial relinquishment of tenure based on the shortfall in

commitment. Where a tenement has not met its expenditure obligations, it must also submit a Variation of Covenant

application – this does not affect block loss penalties being imposed by the Department, but the holder may request to

be waived of such block loss penalty.

The SADEM requires expenditure obligations to be met over the term of the tenement. The term of a tenement from the

initial term and a subsequent renewal are aggregated and must not exceed 5 years. If expenditure is not met over the

initial term of the tenement then the SADEM impose a 25% reduction of the area of the tenement unless otherwise agreed.

The Group has an annual exploration expenditure commitment of $577,500.

Operating leases

Rental of premises – 3 months’ notice 9,000 9,000

6. ISSUED CAPITAL

31 December

2018

$

30 June

2018

$

Ordinary shares

116,971,891 (30 June 2018: 116,971,891) ordinary fully paid shares 99,004,337 99,004,337

Movements in ordinary share capital Shares $

Balance 1 July 2018 116,971,891 99,004,337

No. ordinary shares were issued during the period - -

Balance 31 December 2018 116,971,891 99,004,337

7. EARNINGS PER SHARE

The earnings per share is calculated using the weighted average number of shares on issue of 116,971,891 (2017 –

116,971,891).

8. SUBSEQUENT EVENTS

On 16 January 2019, the Company announced the appointment of Ms Carol New as Company Secretary. Mr Brendon

Morton resigned from this position.

On 21 January 2019, the Company announced the appointment of Mr Craig Hall as a Non-executive Director. Mr Craig

Readhead resigned from this position.

There are no additional matters other than as noted above that have arisen since 31 December 2018.

REDBANK COPPER LIMITED

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2018

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10. INVESTMENTS IN CONTROLLED ENTITIES During and at the end of the interim period, the Company had the following subsidiaries Name

Country of incorporation

Class Holding

percentage

31 December

2018

%

30 June

2018

%

Redbank Operations Pty Ltd Australia1 Ordinary 100% 100%

Volley Oil Pty Ltd Australia1,2 Ordinary 100% 100%

1 These entities are members of the tax consolidated group of which Redbank is the head entity 2 Dormant

11. CONTINGENCIES The Directors are of the opinion that there are no material contingent liabilities or contingent assets of the Group at reporting date.

REDBANK COPPER LIMITED

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DECLARATION BY DIRECTORS In the opinion of the Directors: 1. the financial statements and notes are in accordance with the Corporations Act 2001, including:

(a) complying with Australian Accounting Standard AASB134 Interim Financial Reporting; and (b) giving a true and fair view of the Group’s financial position as at 31 December 2018 and of its

performance for the half year ended on that date; and 2. at the date of this declaration and as set out in Note 1(b), 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 Directors.

Michael Fotios Executive Chairman Perth, Western Australia

15 March 2019

PO Box 1908

West Perth WA 6872

Australia

Level 2, 1 Walker Avenue

West Perth WA 6005

Australia

Tel: +61 8 9481 3188

Fax: +61 8 9321 1204

ABN: 84 144 581 519

www.stantons.com.au

Liability limited by a scheme approved

under Professional Standards Legislation

Stantons International Audit and Consulting Pty Ltd

trading as

Chartered Accountants and Consultants

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF

REDBANK COPPER LIMITED

Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of Redbank Copper Limited, which comprises the condensed consolidated statement of financial position as at 31 December 2018, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity, and condensed consolidated statement of cash flows for the half-year ended on that date, condensed notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration for Redbank Copper Limited (“the consolidated entity”). The consolidated entity comprises both Redbank Copper Limited (“the Company”) and the entities it controlled during the half year. Directors’ Responsibility for the Half-Year Financial Report The directors of Redbank Copper Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal 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. Auditor’s Responsibility 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 half year 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 2018 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 Redbank Copper 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. Whilst we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls. Our review did not involve an analysis of the prudence of business decisions made by the directors or management.

Independence In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, has been provided to the directors of Redbank Copper Limited on 15 March 2019. Conclusion 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 Redbank Copper Limited 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

2018 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.

Material Uncertainty Regarding Going Concern Without modification to the review conclusion expressed above, attention is drawn to the following matter. As referred to in Note 1(b) of the financial report which states that the financial report has been prepared on a going concern basis. At 31 December 2018, the consolidated entity had net liabilities of $2,099,541, cash and cash equivalents of $1,643 and a net working capital deficit of $2,099,016. The consolidated entity had generated a loss for the period ended 31 December 2018 of $368,956. The ability of the consolidated entity to continue as a going concern and meet its administration and other commitments is dependent upon the consolidated entity raising further working capital and/or successfully exploiting its mineral assets and/or the continued support of related party entities. In the event the consolidated entity is unable to raise further working capital and/or commence profitable operations and/or continue to rely on the support of related party entities, the consolidated entity may not be able to meet its liabilities as they fall due, or to realise its assets at their stated values. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (Trading as Stantons International) (An Authorised Audit Company) Samir Tirodkar Director West Perth, Western Australia 15 March 2019