Financial Results 2005

Net assets of the Economic Entity increased by $13,343,185 (Parent Entity $13,995,793) from $1,485,192 at 30 June 2004 to $14,828,377 (Parent Entity $14,980,865) at 30 June 2005.

The Group is in a strong financial position and has no interest-bearing liabilities and a healthy working capital ratio. The Economic Entity's working capital improved from a working capital deficiency of $115,151 (Parent Entity $115,151) to a working capital surplus of $1,595,090 (Parent Entity $2,681,493).

Murchison acquired a number of tenements and invested in exploration and evaluation of these tenements. The Company has also expended funds in moving towards production on its Stage 1 Jack Hills Project. To fund the construction costs and working capital requirements of the Stage 1 Jack Hills Project subsequent to the year end the Company has completed an equity raising and is sourcing project finance.

Financial Results 2006

Net assets of the Group have increased by $38,887,982 (Parent Entity $39,839,121) from $15,765,377 (Parent Entity $15,872,865) at 30 June 2005 to $54,655,359 (Parent Entity $55,711,986) at 30 June 2006. This significant increase in the Group's net assets is predominantly due to the increase in the mining development and infrastructure assets, relating to Stage 1, amounting to $31,060,460.

Cash and cash equivalents of the Group increased by $5,465,089 in the current year to $6,692,824 (2005: $1,227,735).

Trade payables increased by $6,046,200 in the current year to $7,464,665 (2005: $1,418,465) in the current year due to increased expenditure on the development of the project. The Group has a net deferred taxation asset of $2,790,593 (2005: $936,604). The increase in trade and other receivables in the current year of $2,499,673 to $2,764,493 (2005: $264,820) relates to the increase in the amounts receivable from the Australian Taxation Office.

The Group is in a strong financial position with no interest-bearing liabilities and a healthy working capital ratio. The Group's working capital, being current assets less current liabilities, has improved by $625,438 in the current year to $2,220,528 (2005: $1,595,090).

Financial Results 2007

The net assets of the Group have decreased by $17,429,000 (Parent Entity $8,944,000) from $54,655,000 (Parent Entity $55,712,000) at 30 June 2006 to $37,226,000 (Parent Entity $46,768,000) at 30 June 2007.

As at 30 June 2007, all assets and liabilities directly associated with the disposal group held for sale have been reclassified as such. Assets of the disposal group classified as held for sale amounted to $127,070,000 (2006: $nil) and the liabilities directly associated with these assets amounted to $71,593,000 (2006: $nil).

Cash and cash equivalents from continuing operations decreased by $5,153,000 to $1,540,000 in the current year (2006: $6,693,000). Cash and cash equivalents included in the disposal groups assets amounts to $5,586,000 (2006: $nil).
Property, plant and equipment from continuing operations has decreased to $nil in the current year (2006: $42,395,000). All property, plant and equipment, amounting to $65,023,000 in the current year (2006: $nil) has been included in the disposal group assets. Additions for the year amounted to $29,479,000 (2006: $32,049,000). These additions were predominantly due to earthworks carried out on the Cue-Beringarra road during the year.

Exploration and evaluation from continuing operations has decreased by $5,998,000 for the current year to $1,250,000 (2006: $7,248,000). Exploration and evaluation expenditure recognised in the disposal group amounts to $25,936,000 (2006: $nil).

Inventory valued at $8,468,000 (2006: $nil) has been recognised in the disposal group held for sale.

Trade and other payables from continuing operations has decreased by $5,980,000 to $1,485,000 in the current year (2006: 7,465,000). Trade and other payables directly associated with the disposal group amounted to $30,440,000 (2006: $nil). These payables related to the Stage 1 mining operations and the continued exploration and feasibility studies for Stage 2.

Interest bearing debt from continuing operations amounted to $20,000,000 in the current year (2006: $nil). Interest bearing debt associated with the disposal group amounted to $25,258,000 (2006: $nil). Interest bearing debt relates to the CBA facility, MDP facility and finance leases.

Financial Results 2008

The net assets of the Group have increased by $216,181,000 (Parent Entity $119,078,000) from $37,226,000 (Parent Entity $46,768,000) at 30 June 2007 to $253,407,000 (Parent Entity $165,846,000) at 30 June 2008.

Cash and cash equivalents from continuing operations increased by $40,523,000 to $42,063,000 in the current year (2007: $1,540,000).

Other financial assets amounted to $138,960,000 (Parent Entity: $73,484,000) and predominantly consists of Murchison's investment in Midwest Corporation Limited. The revaluation reserve for this listed investment amounts to $19,024,000 (Parent Entity $466,000) after accounting for deferred tax.

Property, plant and equipment from continuing operations has increased to $465,000 in the current year (2007: $nil). All property, plant and equipment, amounting to $65,023,000 in the prior year has been included in the disposal group assets. Additions for the year amounted to $490,000 (2007: $29,479,000).

Investments accounted for using the equity method amounted to $66,653,000 and represents the Group's 50% interest in Crosslands Resources Ltd, a jointly controlled entity.

Exploration and evaluation from continuing operations amounts to $19,227,000 for the current year. Additions to exploration and evaluation expenditure for the year related to the acquisition of the Rocklea tenements and the Group's share of the jointly controlled assets.

Trade and other payables from continuing operations has increased by $13,573,000 to $15,058,000 in the current year (2007: $1,485,000). Included in the payables is an amount of $8,920,000 payable to the Oakajee Port joint venture operation for Murchison's share of the infrastructure assets.

Interest bearing debt amounting to $20,000,000 has been repaid during the year.

Contributed equity increased by $141,586,000 to $221,470,000 in the current year (2007: $79,884,000). This increase was mainly due to a capital raising during the year amounting to $113,000,000. The balance of the increase consists of share option conversions and issuing of Murchison shares in exchange for Midwest shares under the takeover offer.

Financial Results 2009

The net assets of the Group have decreased by $16,860,000 (Parent Entity $4,832,000) from $253,407,000 (Parent Entity $165,846,000) at 30 June 2008 to $236,547,000 (Parent Entity $161,014,000) at 30 June 2009. This decrease is due to the sale of the Midwest Corporation Ltd shares, which was offset to an extent by the increase in cash and cash equivalents.

Cash and cash equivalents from continuing operations increased by $83,476,000 to $125,539,000 in the current year (2008: $42,063,000). Proceeds on the disposal of the Midwest Corporation Ltd shares amounted to $135,684,000. Cash outflows for the year consisted of corporate expenditure and the cash calls from the joint ventures.

Other financial assets decreased by $136,960,000 (Parent Entity $71,484,000) to $2,000,000 (Parent Entity: $2,000,000) from $138,960,000 (Parent Entity $73,484,000) in the previous financial year. This decrease was due to the sale of the investment in Midwest Corporation Ltd during the year.

Property, plant and equipment has increased to $599,000 (Parent Entity $541,000) in the current year compared to the prior year of $465,000 (Parent Entity $465,000). Additions for the year amounted to $275,000 (Parent Entity $214,000) and depreciation expense amounted to $137,000 (Parent Entity $134,000).

Investments accounted for using the equity method amounted to $88,853,000 and represents the Group’s 50% interest in Crosslands Resources Ltd, a jointly controlled entity.

Exploration and evaluation amounts to $29,326,000 (Parent Entity $11,229,000) for the current year, compared to the prior year of $19,227,000 (Parent Entity $9,057,000). Additions to exploration and evaluation expenditure for the year related to the exploration activities at the Rocklea tenements and the Group’s share of jointly controlled assets.

Trade and other payables decreased by $3,728,000 to $11,330,000 in the current year (2008: $15,058,000). Included in the payables in the prior year was an amount of $8,920,000 payable to the Oakajee Port joint venture for Murchison’s share of the expenditure on infrastructure assets. In the current year, the litigation settlement with Evans and Koh has been included in payables. This was settled subsequent to year end.

Contributed equity increased by $109,000 to $221,579,000 in the current year (2008: $221,470,000). This increase was due to option conversions during the year.