Metaliko Resources Limited - ASX · the directors report as follows: The names of the directors of the company during or since the end of the half-year are: Name Michael M Michael

M:\TMS\Metaliko\Accounts\Metaliko Final Interim December 2011 half year accounts Signed.DOCX

Metaliko Resources LimitedABN: 11 120 974 567

Interim Financial report for the half-year ended31 December 2011

www.metaliko.com.au

Metaliko Resources Limited

2

Interim Financial report for thehalf-year ended 31 December 2011

Page

Corporate directory 3

Directors’ report 4 – 14

Auditor’s independence declaration 15

Independent review report 16 - 17

Directors’ declaration 18

Statement of comprehensive income 19

Statement of financial position 20

Statement of changes in equity 21

Statement of cash flows 22

Notes to the interim financial statements 23-25


3

Company Directory

DIRECTORS

Michael M. Michael(Executive Chairman)

Dr. Donald J Searle(Managing Director)

Agapitos M. G. Micheal(Non-Executive Director)

Ian Murray(Independent Non-Executive Director)

COMPANY SECRETARY

Stephen Hewitt-Dutton

PRINCIPAL OFFICE

Barringtons House283 Rokeby Road

SUBIACO WA 6008Telephone: (08) 6382 5300Facsimile: (08) 9481 1947

REGISTERED OFFICE

Crowe HorwathSuite 1 34 Hasler Road

OSBORNE PARK WA 6017

AUDITORS

BDO Audit (WA) Pty Ltd38 Station Street

SUBIACO WA 6008

SHARE REGISTRY

Security Transfer Registrars Pty Ltd770 Canning Highway

APPLECROSS WA 6153

STOCK EXCHANGE LISTING

Australian Stock ExchangeHome Exchange: Perth, Western Australia

Code: MKO


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Directors’ ReportThe directors of Metaliko Resources Limited (“Metaliko” or the “Company”) submit herewith the financial reportfor the half-year ended 31 December 2011. In order to comply with the provisions of the Corporations Act 2001,the directors report as follows:

The names of the directors of the company during or since the end of the half-year are:

Name

Michael M Michael

Dr. Donald J Searle (James)

Agapitos M G Michael (Geoff)

Ian L Murray

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Operating Results

The operating loss of the company for the six months amounted to $415,104 (December 2010: Loss of $449,352).

Review of Operations

During the half year Metaliko made progress in a number of matters. Key Developemnts were as follows:

(a) Exploration Activity

OPERATIONAL OVERVIEW TO DECEMBER 31ST 2011

Metaliko is focused on gold exploration on its extensive tenement holdings in the Eastern Goldfields of WesternAustralia (Figure1). Metaliko’s strategy is to achieve cash flow as soon as possible from several small gold depositsit has drilled to fund major exploration projects seeking substantial new gold discoveries. Metaliko has definedresources at its Anthill and Goongarrie projects. Regulatory approval for open cut mining of both projects is beingsought. The intention is to have the ore treated at existing plants in the Eastern Goldfields under ore sale or tolltreatment arrangements. Metaliko is also evaluating other areas of known mineralisation to determine if they canalso be developed on a similar “mine truck and treat” (“MTT”) basis.

GOONGARRIE LADY PROJECT

The Goongarrie Lady Project is located 80 kilometres north of Kalgoorlie in Western Australia in the vicinity of thehistorical Goongarrie mining area on the western side of the Lake Goongarrie (Figure 1). Numerous small goldworkings were developed in the Goongarrie area mainly between 1893 and 1901. Gold was won from narrow highgrade quart reefs. In the late 1980’s a treatment plant was developed at Goongarrie by ASX listed company JuliaMines Ltd (“Julia Mines”). Julia Mines mined several small open pits in the vicinity of the treatment plant includingone at the Goongarrie Lady workings.

In 1989 Julia Mines commenced mining at the Goongarrie Lady pit on a resource estimated at 58,000 at 4.5g/tAu(8,405oz). After 6 months of mining heavy rains from a cyclonic depression flooded much of the Eastern Goldfieldsand caused slips on the eastern side of the pit, mining ceased and was not recommenced. Julia Mines ceasedoperations at Goongarrie soon after and the plant was removed. Treatment plant records indicate Julia Mines mined28,606 tonnes at a head grade of 2.7g/tAu (2,270oz) from the Goongarrie Lady open pit. The Goongarrie Lad pitwas 20 to 25m deep when mining ceased. Drill hole data from the era indicates that the mineralisation extends to adepth of at least 40m.

In early 2011 Metaliko completed a 28 hole reverse circulation (“RC”) drilling program around the pit perimeter.SRK Consulting was then commissioned to produce a resource model and JORC resource statement (Table 1) usingthe Metaliko and historical drilling results. Subsequently Minecomp consultants of Kalgoorlie then used the blockmodel to run pit shell optimisations using typical Eastern Goldfields treatment and mining costs. The resultsindicated the potential for robust cash surpluses from re-development of the Goongarrie Lady open pit down to adepth of around 40m.


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Figure 1 Metaliko’s Eastern Goldfields Western Australia Projects


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Goongarrie Lady

Indicated 2.30 100,000 2.29 7,300

Inferred 2.31 128,500 1.47 6,100

Total 2.29 228,500 1.83 13,400

Table 1 Resources inventory by SRK Consulting on a 0.5g/ lower cut-off (note rounding errors may occur).Reported in full to the ASX 26 May 2011.

Metaliko is now seeking to gain regulatory approval to re-develop the Goongarrie Lady open pit down to about 40mand have the ore treated off site at an existing treatment plant. Regulatory approval involves the granting of amining license and the submission of a mining proposal to the Department of Mines. Application for the mininglicense is underway. Preparation of the mining proposal is also underway with the following completed:

Hydrologic studies. Flora surveys. Fauna studies. Materials movement schedules. Site layout design.

The Company is also undertaking the next phase of technical investigations to support the project development, thisincludes:

Detailed metallurgical tests. Further resource drilling to enhance the definition of the resource model. Development of a new resource model and JORC resource. Development of a detailed final pit design using the new resource model. A final economic assessment of the project.

Discussions are underway with treatment plant operators for sale of the ore or toll treatment arrangements.

Pending regulatory approvals and a satisfactory treatment arrangement it hoped to commence mining at GoongarrieLady in the third quarter of this calendar year. The project is expected to take 5 to 6 months to complete. A secondstage of the project will depend on further drilling defining more resources outside the currently planned pit.

ANTHILL GOLD PROJECT

The Anthill Gold Project is located 54 kilometres North West of Kalgoorlie (Figure 1). Metaliko has defined aresource of 5 million tonnes at 1g/t Au for 160,600oz (Table 2). Metaliko is seeking to mine a portion of thisresource down to about 80m and have it transported for treatment.

Anthill

Indicated 2.30 917,800 0.98 28,900

Inferred 2.56 4,268,000 0.96 131,700

Total 2.51 5,185,800 0.96 160,600

Table 2 Resources inventory by SRK Consulting on a 0.5g/ lower cut-off (note rounding errors may occur).Reported in full to the ASX 26 May 2011.

In December 2011 Metaliko entered into a mining and treatment Joint Venture agreement with the KalgoorlieMining Company Ltd (“KMC”) for its Anthill Gold Project. KMC would mine the deposit and the proceeds wouldbe split 50/50 after recovery of costs on an open book basis. KMC intends to construct a treatment plant at itsBullant Project 6 kilometres south of Anthill by the end of 2012. KMC has subsequently announced that it hasceased mining from underground at Bullant pending re-capitalisation of the company. There is no information atthis time on any changes to the timing or intention for KMC to develop a treatment plant. Metaliko will continue toconsider alternative treatment scenarios for Anthill.

During the December 2011 Quarter Metaliko continued to prepare the Anthill Project for regulatory approval bycompleting flora and fauna surveys and hydrologic investigations. No major issues have been encountered.


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BADEN POWELL PROJECT

The Baden Powell Project is located 50 kilometres North of Kalgoorlie in the Bardoc Tectonic Zone (Figure 1).Metaliko considers that Baden Powell has the potential to be a third near term MTT project for the Company.

Historical gold workings and prospecting pits are spread over a strike length of 2km. Historical production from theBaden Powell shaft was 582 tonnes of ore with a recovered grade of 35.6g/t Au. In the 1980s, a 5 to 8m deep trialopen pit was dug by Mistral Mines and 913 tonnes of ore were treated for a recovered grade of 3.4g/t Au. This wasbelow the expected grade and no further production was undertaken.

Between about 1980 and the early 1990s, a series of rotary air blast (RAB) and RC drill holes and several RC withdiamond core tails were drilled around the Baden Powell workings. Gold mineralisation at Baden Powell is hostedby a felsic porphyry intrusion that is sheared by some of the North-North-West trending structures of the BardocTectonic Zone. Historical drilling indicates several steeply west-dipping mineralised lodes extend over a strikelength of up to 300m and down to at least 90m vertical.

During the December 2011 Quarter, an RC drilling program comprised of 12 RC drill holes for a total of 850m wascompleted (Figure 2). The broadest intercepts are from a zone of mineralisation up to 14m true width that extendsfrom the base of the test pit to at least 90m (Figure 3) where it remains open at depth. Significant results arecontained in Table 3.

Figure 2 Metaliko’s RC drilling around the Baden Powell open pit.


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Figure 3 Cross section of the Baden Powell trial pit showing Metaliko and historical drilling intercepts (see locationof section in Figure 2)

HoleID East NorthEOH_Depth Azimuth Dip mFrom mTo Width

Au_ppm

BPRC0005 329045 6653349 50 235 -60 47.00 48.00 1.00 0.73BPRC0009 328980 6653445 70 235 -45 19.00 31.00 12.00 1.05BPRC0009 328980 6653445 70 235 -45 33.00 34.00 1.00 0.60BPRC0009 328980 6653445 70 235 -45 39.00 42.00 3.00 1.16BPRC0010 328982 6653444 50 235 -60 23.00 37.00 14.00 1.25BPRC0010 328982 6653444 50 235 -60 39.00 43.00 4.00 1.43BPRC0013 328955 6653522 50 235 -60 39.00 40.00 1.00 0.98BPRC0014 328968 6653531 50 235 -60 10.00 11.00 1.00 1.29BPRC0014 328968 6653531 50 235 -60 39.00 40.00 1.00 1.00

Table 3 Significant intercepts (based on a lower cut off of 0.5g/tAu and up to 1m of internal dilution of subgradematerial)


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The continuity of the mineralisation down to a depth of 90m, below which it remains open, is encouraging. Furtherdrilling is required to fully test the strike extent of the mineralisation and to eventually define a resource.

SEVEN SEAS PROJECT

Metaliko’s Seven Seas Project is located on the Zulekia Shear Zone, 70km North West of Kalgoorlie, WesternAustralia (Figure 1). The Seven Seas Project area was subject to historical exploration with much of the activityoccurring between 1980 and 2000. Metaliko is now evaluating a consolidated tenement holding previously exploredin a fragmented fashion. A common feature of this historical exploration was the problem with clay-prone soils andthe shallow part of the regolith profile, both of which have been poor geochemical media for gold exploration.

Metaliko collated data from more than 800 RAB and RC drill holes over the consolidated tenement area and hasdetermined a consistent gold trend in the deeper regolith and bedrock. Peak values in the drill holes show nearcontinuous trends of significant gold anomalism from 100ppb Au to 16700 ppb Au over a strike length in excess of7km (Figure 4).

Metaliko completed its first drilling program at Seven Seas in November 2011. The program, consisting of 13 RCdrill holes for a total of 850m of drilling, was designed to test the continuity of mineralisation encountered in thewider spaced historical drilling. The results are shown in Figures 5 and 6 and listed in Table 4. The best interceptswere:

3m at 3.31g/t Au from 58m 3m at 3.13g/t Au from 69m 1m at 10.30g/t Au from 90m

The drill results demonstrate continuity of gold mineralisation in the oxidised and partially oxidised bedrock. It issignificant to note that the highest assay was the deepest at 90m down hole (78m vertical) and about 20m below thebase of complete oxidation.

The extent of the bedrock gold anomalism at Seven Seas indicates a major mineralisation system associated withthe Zulekia Shear Zone. More drilling is required to test further the continuity of the mineralisation intersected inthe drilling and to potentially define substantial gold resources.

Hole ID Eastingm

Northingm

Fromm

Widthm

Grade g/tAu

ETRC0001 290902 6639671 21 5 1.156

32 1 0.694

ETRC0002 289980 6639742 23 1 1.147

ETRC0004 290550 6639370 52 1 1.435

90 1 10.298

ETRC0005 295540 6637380 52 1 1.035

ETRC0006 295590 6637465 50 1 0.673

57 1 0.528

ETRC0008 295330 6637495 39 1 0.742

42 2 0.908

58 3 3.309

63 4 0.959

69 3 3.133

Table 4 Seven Seas >0.5g/t Au intercepts calculated with up to 1m of internal dilution. All holes drilled at 60o

declination to 225o.


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Figure 4 Seven Seas deep regolith and bedrock gold anomalism over 7km long, and Metaliko RC drilling program.


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Figure 5 Metaliko RC drill holes and historical drill hole peak gold values, western area, see Figure 4.

Figure 6 Metaliko RC drill holes and historical drill hole peak gold values, eastern area see Figure 4.


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BULLABULLING PROJECT

Metaliko has 75km² of tenure at Bullabulling, southwest of Kalgoorlie (Figure 1). The tenure covers southeaststrike extensions of the Bullabulling Shear from the 3.2 million-ounce resource defined by Ausex Ltd and GGG Ltd(Figure 7). A lack of surface exposure and apparent depletion of geochemical signatures due to deep weathering hasmeant that much previous exploration has been poorly focused.

Figure 7 Metaliko’s Bullabulling Project.

Metaliko flew a high resolution aeromagnetic survey early 2011 and then commissioned Southern GeoscienceConsultants to provide interpretation of the data and define gold exploration targets. Interpretation of thegeophysical data has revealed a wealth of new detail in the underlying geology and highlighted a number ofpreviously unrecognized high priority target areas (Figure 8). The geophysical interpretation confirms that theBullabulling Shear Zone intersects with the Reptile Shear Zone within the Metaliko tenure. In the vicinity of thismajor structural intersection the geophysical signature indicates wide spread bedrock alteration. A series ofgeophysical targets have been identified (Figure 8).

In Figure 8 historical drilling results have been superimposed on the geophysical interpretation. It is clear that themain geophysical structural and alteration target zones have been largely untested by previous exploration. Themajor structural features, alteration and proximity to the 3.2 million oz Ausex/GGG resource, indicate strongly thatMetaliko’s Bullabulling Project has the potential for large gold discoveries.


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Figure 8 Metaliko tenure at Bullabulling, geophysical interpretation and historical exploration drilling.


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OPERATIONAL PROGRAM JANUARY TO JUNE 2012

Metaliko’s operational focus over the next 6 months to the end of July 2012 is to advance the regulatory approval ofthe Goongarrie and Anthill Projects and prepare them technically and commercially for production. Subject to theregulatory process it is intended to have Goongarrie ready for production during the third quarter of the calendaryear. Similarly it is intended to have Anthill ready by the end of the calendar year.

Competent Person’s StatementUnless otherwise specified information in this report relating to exploration and related technical or commercialcomments have been compiled by Dr James Searle, a Member of the Australian Institute of Mining and Metallurgy,Managing Director of the company and with over 30 years experience in gold exploration, development and miningand as such qualifies as a Competent Person as defined in the 2004 Edition of the Australasian Code of Reportingfor Exploration Mineral Resources and Ore Reserves. Dr Searle consents to the inclusion of this information inform and context in which it appears.

Subsequent Events

There are no matters or circumstances that have arisen since 31 December 2011 that have or may significantlyaffect the operations, results, or state of affairs of the Company in future financial periods.

Dividends Paid or RecommendedNo dividends were paid during the period and no recommendation was made as to payments of future dividends.

Auditor’s independence declaration

The auditor’s independence declaration is included on page 15 of the half-year financial report.

Signed in accordance with a resolution of directors made pursuant to s.306 (3) of the Corporations Act 2001.

On behalf of the Directors

Michael M. Michael

Chairman

13 March 2012

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

13 March 2012 Board of Directors Metaliko Resources Limited Barrington House 283 Rokeby Road SUBIACO WA 6008 Dear Sirs, DECLARATION OF INDEPENDENCE BY PETER TOLL TO THE DIRECTORS OF METALIKO RESOURCES LIMITED As lead auditor for the review of Metaliko Resources Limited for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been: • no contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the review; and

• no contraventions of any applicable code of professional conduct in relation to the review.

Peter Toll Director BDO Audit (WA) Pty Ltd Perth, Western Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF METALIKO RESOURCES LIMITED

Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of Metaliko Resources Limited, which comprises the statement of financial position as at 31 December 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement of significant accounting policies and other explanatory information, and the directors’ declaration. Directors’ Responsibility for the Half-Year Financial Report The directors of the disclosing entity are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such 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 disclosing entity’s financial position as at 31 December 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Metaliko Resources 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. 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, which has been given to the directors of Metaliko Resources Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

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 Metaliko Resources Limited is not in accordance with the Corporations Act 2001 including: (a) giving a true and fair view of the disclosing entity’s financial position as at 31 December 2011

and of its performance for the half-year ended on that date; and (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations

Regulations 2001. Emphasis of Matter Without modifying our conclusion, we draw attention to note 1 in the financial report which indicates that the company incurred a net loss of $415,104 for the six months ended 31 December 2011, and for the six months period the company experienced net cash outflows from operating activities of $494,144. These conditions along with other matters as set forth in note 1 of the financial report indicate the existence of a material uncertainty which may cast significant doubt on the entity’s ability to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. BDO Audit (WA) Pty Ltd

Peter Toll Director Perth, Western Australia Dated this 13th day of March 2012


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Directors’ declaration

The directors of the Company declare that:

1. The financial statements and notes set out on pages 19 to 25 are in accordance with the Corporations Act2001, including:

(a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatoryprofessional reporting requirements; and

(b) giving a true and fair view of the company’s financial position as at 31 December 2011 and of itsperformance, as represented by the results of its operations and its cash flow, for the half-year ended onthat date.

2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay itsdebts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

________________________________Chairman – Michael M. Michael

Date: 13 March 2012


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Statement of Comprehensive Incomefor the six months ended 31 December 2011

Note Half-year ended31 Dec 2011

$

Half-year ended31 Dec 2010

$

Revenue

Interest received 70,730 54,999

Other income 26,681 10,937

Total Revenue 97,411 65,936

Expenses

Employee and contractors expenses (222,888) (40,542)

Occupancy expenses (47,410) (29,196)

Administration expenses (55,819) (19,383)

Consultants expenses and professional costs (73,372) (126,893)

Depreciation (19,301) (7,959)

Travel expenses (38,017) (41,058)

Other expenses (55,708) (97,202)

Share based payments 2 - (153,055)

Total expenses (512,515) (515,288)

(Loss) before income tax expense (415,104) (449,352)

Income tax expense - -

Loss for the half year attributable to ownersof Metaliko Resources Limited (415,104) (449,352)

Other comprehensive income - -

Total comprehensive income for the period - -

Total comprehensive loss for the period (415,104) (449,352)

(Loss) per share:

Basic loss (cents per share) (0.69) (1.12)

Diluted earnings per share is not disclosed as the company incurred a loss and the options are not deemed to bedilutive.

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


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Statement of Financial Position

as at 31 December 2011

Note 31 December2011

$

30 June2011

$

CURRENT ASSETSCash assets 1,670,096 2,993,022Receivables 97,271 138,310Other assets 8,246 14,909

TOTAL CURRENT ASSETS 1,775,613 3,146,241

NON CURRENT ASSETSProperty, plant & equipment 81,978 93,591Capitalised exploration and evaluation expenditure 4 6,350,101 5,661,978

TOTAL NON CURRENT ASSETS 6,432,079 5,755,569

TOTAL ASSETS 8,207,692 8,901,810

CURRENT LIABILITIESTrade and other payables 126,740 405,754

TOTAL CURRENT LIABILITIES 126,740 405,754

TOTAL LIABILITIES 126,740 405,754

NET ASSETS 8,080,952 8,496,056

EQUITYIssued capital 3 8,376,788 8,376,788Reserves 1,477,861 1,477,861Accumulated losses (1,773,697) (1,358,593)

TOTAL EQUITY 8,080,952 8,496,056

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


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Statement of changes in equityfor the half-year ended 31 December 2011

Attributable to equity holders

For the period ended31 December 2010

OrdinaryShares

$

OptionReserve

$

AccumulatedLosses

$

Total Equity$

At beginning of period 979,098 - (599,418) 379,680

(Loss) for the period - - (449,352) (449,352)

Total comprehensive income for the period (449,352) (449,352)

Transactions with owners in their capacityas owners:Issue of shares and options during the period 8,023,100 1,477,861 - 9,500,961

Share issue costs (602,455) - - (602,455)

At end of period 8,399,743 1,477,861 (1,048,770) 8,828,834

Attributable to equity holders

For the period ended31 December 2011

OrdinaryShares

$

OptionReserve

$

AccumulatedLosses

$

Total Equity$

At beginning of period 8,376,788 1,477,861 (1,358,593) 8,496,056

(Loss) for the period - - (415,104) (415,104)

Total comprehensive income for the period (415,104) (415,104)

Transactions with owners in their capacityas owners:Issue of shares and options during the period - - - -

Share issue costs - - - -

At end of period 8,376,788 1,477,861 (1,773,697) 8,080,952

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


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Statement of Cash flowsfor the half-year ended 31 December 2011


$


$

Cash flows from operating activities

Payments to suppliers and employees (564,844) (281,687)

Interest received 70,730 54,999

Interest and other cost of finance paid - (495)

Net cash used in operating activities (494,114) (227,183)

Cash flows from investing activities

Capitalised exploration and evaluation expenditure (688,123) (466,622)

Payment for acquisition of mineral interests (123,000) (531,400)

Payments for property, plant and equipment (7,689) (76,038)

Net cash used in investing activities (818,812) (1,074,060)

Cash flows from financing activities

Proceeds from issues of ordinary shares - 5,755,100

Share issue costs - (429,036)

Payment of security bonds (10,000) (10,000)

Net cash (used) / provided by financing activities (10,000) 5,316,064

Net increase/ (decrease) in cash and cash equivalents (1,322,926) 4,014,821

Cash and cash equivalents at the beginning of the half-year 2,993,022 309,267

Cash and cash equivalents at the end of the half-year 1,670,096 4,324,088

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


23

Notes to the interim financial statementsfor the half-year ended 31 December 2011

1. Basis of Accounting and Statement of Compliance

The half-year financial report is a general purpose financial report prepared in accordance with therequirements of the Corporations Act 2001, applicable Accounting Standards including AASB 134 ‘InterimFinancial Reporting’ and other mandatory professional reporting requirements. The interim financialstatements were approved by the Board of Directors on 13 March 2012. The accounting policies applied bythe Company in this interim financial report are the same as those applied by the Company in its financialreport for the year ended 30 June 2011.

It is also recommended that the half year financial report be considered together with any publicannouncements made by Metaliko during the half year ended 31 December 2011 in accordance with thecontinuous disclosure obligations arising under the Corporations Act 2001.

Going Concern

This report has been prepared on the going concern basis, which contemplates the continuity of normalbusiness activity and the realisation of assets and settlement of liabilities in the normal course of business.

The Company has incurred a net loss after tax for the half year ended 31 December 2011 of $415,104 (2010:$449,352) and experienced net cash outflows from operating activities of $494,114 (2010: $227,183). At 31December 2011, the Company had net current assets of $1,648,873 (30 June 2011: net current assets of$2,740,487).

The Directors believe there are sufficient funds to meet the Company’s working capital requirements and asat the date of this report the Company believes it can meet all liabilities as and when they fall due. Howeverthe Directors recognise that additional funding either through the issue of further shares, convertible notes ora combination of both will be required for the Company to continue to actively explore its mineral properties.

The Directors have reviewed the business outlook and the assets and liabilities of the Company and are of theopinion that the use of the going concern basis of accounting is appropriate as they believe the Company willcontinue to be successful in securing additional funds through debt or equity issues or partial sale of itsmineral properties as and when the need to raise working capital arises.

Should the Directors not achieve the matters set out above, there is significant uncertainty whether theCompany will continue as a going concern and therefore whether it will realise its assets and liabilities in thenormal course of business.

The financial report does not include any adjustments that may be necessary if the Company is unable tocontinue as a going concern.

2. (Loss) for the half year

The following expense items are relevant in explaining the financial performance for the interim period:

31.12.2011 31.12.2010Share based paymentsIssue of options to employees - 41,355Issue of options to directors - 111,700

- 153,055


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3. Issued Capital

(a) Movements in share capital during the six months to 31 December 2011 were as follows:

IssuePrice

Fully PaidOrdinary

Shares $

01/07/11 Opening balance 60,335,832 8,376,788

31/12/11 Closing balance 60,335,832 8,376,788

Movements in share capital during the six months to 31 December 2010 were as follows:

IssuePrice

Fully PaidOrdinary

Shares $

01/07/10 Opening balance 20,220,332 979,098Shares issued pursuant to issue ofprospectus 0.20 28,775,500 5,755,100Shares issued as consideration fortenement acquisition 11,340,000 2,268,000Share issue costs - (602,455)

31/12/10 Closing balance 60,335,832 8,399,743

(b) Options

Total unlisted options issued as at 31 December 2011 are 20,089,999, exercisable at $0.20 each on or before30 June 2014 and 450,000 exercisable at $0.30 each on or before 6 December 2015.

4. Capitalised Exploration and Evaluation Expenditure

For the six months to 31 December 2011 31.12.2011 30.06.2011

Opening balance 5,661,978 72,310Costs related to interests acquired during the period - 474,090Exploration and evaluation expenditure during the period 688,123 1,522,772Issue of shares for acquisitions of tenements - 2,268,000Issue of options for acquisition of tenements - 1,324,806Closing balance 6,350,101 5,661,978


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5. Segment Reporting

The company operates predominantly in one industry and one geographical segment, being the Miningindustry within Australia. Exploration is undertaken in Western Australia. The operations in WesternAustralia relate to exploration for gold.

31.12.2011$

30.06.2011$

Revenue from external sources - -Reportable segment loss - -Reportable segment assets 6,350,101 5,661,978Reportable segment liabilities - (123,000)

Reconciliation of reportable segment assetsReportable segment assets 6,350,101 5,661,978Unallocated:- Cash 1,670,096 2,993,022- Receivables 97,271 138,310- Other 8,246 14,909- Property, plant and equipment 81,978 93,591

Total assets 8,207,692 8,901,810

Reconciliation of reportable segment liabilitiesReportable segment liabilities - (123,000)Unallocated:- Trade and other payables (126,740) (282,754)

Total liabilities (126,740) (405,754)

Reconciliation of reportable segment lossReportable segment loss - -Other revenue 97,411 183,825Unallocated expenses (512,515) (943,000)Loss before tax (415,104) (759,175)

6. Contingent Liabilities

There are no known contingent liabilities at reporting date.

7. Subsequent events

There are no matters or circumstances that have arisen since 31 December 2011 that have or may significantlyaffect the operations, results, or state of affairs of the Company in future financial periods.

Documents

Metaliko Resources Limited - ASX · the directors report as follows: The names of the directors of the company during or since the end of the half-year are: Name Michael M Michael