OROPA LIMITED ACN 009 241 374 HALF YEAR FINANCIAL REPORT 31 DECEMBER 2007 OROPA LIMITED 2 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 CONTENTS Directors’ Report 3 Condensed Consolidated Income Statement 17 Condensed Consolidated Balance Sheet 18 Condensed Consolidated Statement of Changes in Equity 19 Condensed Consolidated Cash Flow Statement 20 Notes to the Condensed Consolidated Financial Statements 21 Directors’ Declaration 26 Independent Review Report 27 Auditor Independence Declaration 29 OROPA LIMITED 3 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 DIRECTORS’ REPORT For the Half Year Ended 31 December 2007 Your directors present their report on the consolidated entity consisting of Oropa Limited (“Oropa”) and the entities it controlled at the end of, or during the half-year ended 31 December 2007. DIRECTORS The following persons were directors of Oropa during the whole of the half-year and up to the date of this report: BJ Hurley PCJ Christie RG Murchison BNV Tomich RESULT The loss for the half-year ended 31 December 2007 was $1,823,215 and for the half year ended 31 December 2006 the loss was $2,029,935. REVIEW OF OPERATIONS Corporate On the 18th December 2007 the Company placed 10,000,000 ordinary fully paid shares at a price of 5 cents each to raise $500,000 before costs. The placement was made to sophisticated investors. Oropa is applying the funds to ongoing drilling programs at the Hutabargot Julu prospect and other exploration activities at the Pungkut gold prospect in Indonesia. At the Company’s Annual General Meeting which was convened on 28 November 2007, all resolutions as set out in the Notice of Meeting were carried with the required majorities. On 28 November 2007, the Company’s directors announced that a meeting of shareholders was to be convened at a date to be fixed to consider and if thought fit, to pass a resolution for the Company to issue up to 13,280,376 new options, each at an issue price of $0.002 per new option and expiring on 31 January 2011 (“2011 Options”) to those persons recorded as holders of unexercised options that expired on 31 December 2007. This Notice of Meeting is presently being prepared to be dispatched to shareholders. If this resolution is passed, the Company will make the offer to the holders of the expired 31 December 2007 options and those who accept the offer will be issued with the 2011 Options. The Company’s directors reserve the right to issue the shortfall to allottees no later than 3 months from the date of the shareholders meeting. Earlier, on 17 October 2007, the Company announced that it had raised interim working capital of $463,525.00 before costs via a placement of 10,300,555 ordinary fully paid shares at a price of 4.5 cents each to overseas and sophisticated investors. Oropa is applying these funds towards ongoing drilling at its Sihayo 1 North and Hutabargot Julu prospects at its 75% owned Pungkut gold project in Indonesia, plus funding the establishment of its field operations in Malawi including initial sampling programs at its Mzimba Northwest and Chitunde uranium prospects. OROPA LIMITED 4 HALF YEAR REPORT Exploration Indonesia Pungkut Gold Project, Sumatra (75%) Following the appraisal of the project by Richard Sillitoe in the July last year, Oropa’s exploration objectives are now clearly focused on increasing the gold resource base along the Sihayo 1 North - Sambung trend, while investigating the mineral potential at the Hutabargot Julu epithermal quartz veins prospect, which is located approximately 6 kilometres south-east of Sambung. A resource extension drilling program that was completed in January this year generated numerous encouraging results at the Sihayo 1 North deposit, prompting Oropa to initiate a revised resource calculation which is currently in progress. Upon completing this revised estimate, Oropa will undertake a mining scoping study on the combined resources at Sihayo 1 North and Sambung with a view to advancing the Pungkut Project to the development stage. While the resource calculation is underway to be followed by the scoping study, exploration will continue at Hutabargot Julu where drilling is targeting parallel sets of epithermal quartz veins interpreted to be up to 3km in length. Figure 1: Pungkut Contract of Work, showing principal prospects OROPA LIMITED 5 HALF YEAR REPORT Figure 2: Pungkut Active Prospects Activities – Northern Block: �� Sihayo 1 North: - 19 diamond drill holes (1121.0m) completed. - Drilling completed to the west of the existing Inferred Resource. �� Sihayo 1: - 6 diamond drill holes (351.4m) completed. - Drill testing of a 1,400 metre-long coincident geophysical Induced Polarisation (“IP”) and gold in soil anomaly. �� Hutabargot Julu: - 13 diamond drill holes completed (1,566.1m, Sarahan & Sunday veins). - Rock-chip sampling and mapping of epithermal quartz veins exposed in historic Dutch exploration tunnels on the Sarahan and Sunday veins. - Rock-chip and soil sampling at the Sihorbo vein. OROPA LIMITED 6 HALF YEAR REPORT Sihayo 1 North A step-out drilling program was completed during the half year to the west of the Sihayo 1 North Inferred Resource targeting high grade outcropping jasperoid. This program returned significant gold intersections from most holes drilled, which are summarised in Table 1 and include: SHDD081: 32m @ 3.87 g/t Au from 14m SHDD085: 15m @ 1.99 g/t Au from 23m SHDD087: 22m @ 2.87 g/t Au from surface SHDD094: 10m @ 3.62 g/t Au from 25m SHDD095: 8m @ 2.17 g/t Au from surface SHDD096: 17.55m @ 1.82 g/t Au from surface SHDD097: 6m @ 3.66 g/t Au from 1m 13m @ 1.53 g/t Au from 15m SHDD098: 6m @ 2.15 g/t Au from surface SHDD100: 7m @ 1.33 g/t Au from surface SHDD101: 3m @ 2.59 g/t Au from 7m SHDD103: 22m @ 3.96 g/t Au from surface 6m @ 1.45 g/t Au from 25m SHDD104: 22.75m @ 4.84 g/t Au from 41m SHDD105: 2m @ 6.38 g/t Au from 2m Prior to any upgrade, the Sihayo 1 North prospect is estimated to contain a total of 7.1 Mt @ 2.7 g/t Au for 610,000 oz Au as obtained from a resource calculation undertaken in early 2004. However, resulting from the encouraging results returned from the step-out drilling, the Company considers that there is strong potential to add to these inferred resource ounces. Upon receiving the upgraded resource calculation a mining scoping study will be required to fully evaluate the economic potential of the Pungkut Project, particularly taking into account the current gold prices. In preparation for the new resource calculation all drill collars were surveyed, along with revised geological interpretation and updating of the previous Sihayo 1 North digital database. The upgraded database and quality controls were then validated from which a digital terrain model (DTM) was generated for the Sihayo area. OROPA LIMITED 7 HALF YEAR REPORT Table 1: Significant Sihayo 1 North Western Extension Drilling Results Notes 1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories in Jakarta 2. Lower cut of 1.0ppm Au used 3. A maxium of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection 4. All interval grades were calculated as a weighted average 5. All intervals reported as down hole lengths 6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core 7. Quality Assurance and Quality Control (QAQC): 8. Coordinates in local UTM grid system OROPA LIMITED 8 HALF YEAR REPORT Test pits dug to the north-west of the recent drilling to evaluate areas that were not outcropping also returned positive results. These pits confirm the presence of extensive regolith gold in the area. A recent geological re-interpretation of the Sihayo 1 North resource indicates the test pit area as containing a fault-bounded favourable limestone stratigraphy, which is coincident with a strong soil geochemistry and geophysical IP anomaly indicating a high likelihood of mineralising jasperoid. This area is as yet untested by drilling. Figure 3 shows the locations of these test pits in relation to the drill holes; best results include: Test Pit B: 1m @ 4.43 g/t Au from surface Test Pit H: 4m @ 3.07 g/t Au from 1m, including 7.09 g/t Au grab sample from 2-4m Test Pit D: 4m @ 1.73 g/t Au from surface Test Pit F: 1m @ 2.16 g/t Au from surface including 6.19 g/t Au grab sample Figure 3: Sihayo 1 North re-interpreted geology, test pits and target areas; in Local Grid Coordinates Table 2: Sihayo 1 Significant Drill Results OROPA LIMITED 9 HALF YEAR REPORT Notes 1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories in Jakarta 2. Lower cut of 1.0ppm Au used 3. A maxium of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection 4. All interval grades were calculated as a weighted average 5. All intervals reported as down hole lengths 6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core 7. Quality Assurance and Quality Control (QAQC): 8. Coordinates in local UTM grid system Hutabargot Julu The Hutabargot Julu prospect comprises north striking epithermal quartz veins of up to 3km inferred strike length at the south-eastern end of the Sihayo-Sambung gold trend (Figure 1). Historical Dutch reports record vein widths of up to 3m averaging 20 g/t Au from exploration tunnels. The Sarahan vein adits and drives were located and where safely accessible, mapped and the veining and wallrock sampled (52 channel samples mostly of length 1 metre or 2 metres, total length sampled 78.7 metres; and 5 grab samples). Six grab samples were collected from the Sihorbo vein (2 surface outcrop and 4 adit samples), and 2 from the Sisangkil adit. Samples were analysed at Intertek - Caleb Brett laboratories in Jakarta. Epithermal veining occurs in Miocene volcanics which overlie Permian sedimentary-volcanic basement. The presence of gold mineralisation in jasperoid at the nearby Dolok prospect, which lies to the north in an erosion window of underlying Permian rocks, demonstrates the continuity from Permian to Miocene and jasperoid to epithermal veins. The extent and thickness of veining indicates a very large hydrothermal system, both in terms of strike length and depth. Hutabargot Julu is regarded as an exploration priority owing to the gold mineralisation potential of sub-parallel north-south striking epithermal quartz vein zones up to 3km in length, along with its proximity to Sihayo and Sambung, enhancing its strategic value as a potential supplementary resource for a centrally located treatment plant. The vein system is interpreted as being mid-sulphidation epithermal, with upper level exposure interpreted from predominantly chalcedonic quartz textures observed in outcrops and exposures in shallow historic Dutch exploration tunnels. The system is interpreted to be preserved in almost its entirety, with potential for substantial high-grade gold accumulation(s) at depth. Epithermal quartz vein systems require careful and systematic exploration, as barren or low grade quartz veins often overlie economic grade gold mineralisation which is typically located in high grade shoots separated by low grade veining along strike. Oropa committed to a comprehensive drilling program to test these vein systems at depth to evaluate their full potential. The program included near surface drilling beneath outcropping veins to determine their strike orientation and dip to facilitate drill targeting for follow-up of the structures at depth. At this early stage, most drilling has been focused on the Sarahan vein, which has produced the most consistent surface and adit sampling results, including numerous 1-2 g/t Au rock and channel chip samples, along with higher grade results up to 27.1 g/t Au. Limited work undertaken to date suggests that this vein is not continuously mineralised. The first phase of drilling has confirmed that the Sarahan vein dips consistently at around 60º to the west, with a strike dip of 170º, and vein-zone thickness of 2-12 metres. Veining consists of massive solidification, dogstooth quartz and calcite veining, and minor adularia. A halo of hydrothermal brecciation flooded with silica and quartz stockwork is common in wallrock surrounding the veins. Most drilling to date has explored relatively shallow depths similar to those of the deepest historical Dutch exploration adits. The first deeper hole (HUTDD010) tested intervals nearly 100 metres vertically down-dip, probing for bonanza grade mineralisation but unfortunately had to be abandoned. A second deep hole (HUTDD013) was drilled to 248 metres and results are awaited. The second rig was relocated from Sihayo 1 North and commenced drilling in January at the Sunday vein, where three drill holes were completed to test the vein orientation and for continuity of mineralisation beneath mineralised outcrop, which grades up to 3.83 g/t Au in rock-chip samples. OROPA LIMITED 10 HALF YEAR REPORT Concurrently with drilling, surface work for the area included ongoing mapping and sampling of the extensive Dutch exploration adits in the Sunday vein area, along with a soil auger grid and surface rock-chip sampling program in the Sihorbo vein area to identify the strongest geochemical anomalism prior to drill target selection. Recent outcrop sampling of newly discovered vein sets has returned some exciting results, including: Sarahan Vein channel samples (across-strike from various locations within 275m of vein strike – Figure 4) • 2m @ 17.5 g/t Au & 102 g/t Ag; 2m @ 4 g/t Au & 22 g/t Ag (contiguous samples) • 2m@ 9.8 g/t Au & 24g/t Ag; 2m@ 5.32 g/t Au & 12 g/t Ag ( “ “ ) • 1m@ 7.48 g/t Au & 18g/t Ag; 1m@ 2.5 g/t Au & 5 g/t Ag ( “ “ ) Length weighted average grades of all 52 samples; 1.82 g/t Au & 10 g/t Ag. Sihorbo Vein grab samples • 24.6 g/t Au & 261 g/t Ag (creek outcrop; quartz vein with sulphides and silicified dacitic volcaniclastic) • 2.85 g/t Au & 21 g/t Ag (main adit; quartz vein with manganese oxides & sulphide spots) • 1.97 g/t Au & 76 g/t Ag (banded quartz vein with traces of sulphides) Sisangkil Adit • 4.69 g/t Au & 16 g/t Ag (grab sample of banded quartz vein with manganese oxides) Sarahan Creek 400m west and sub-parallel to Sarahan Vein:- �� 61 g/t Au & 149 g/t Ag from 1m wide silicified breccia with pyrite and chalcopyrite �� 2.18 g/t Au in adjacent vuggy quartz vein with manganese Siborok Creek east of Sarahan Vein:- �� 7.18 g/t Au & 216 g/t Ag from a 2m quartz vein breccia with trace sphalerite, galena and chalcopyrite These results confirm the information provided in the Dutch reports, and are considered to be very encouraging especially due to the presence in the samples of banded chalcedony that may be indicative of shallow level exposure with likely preservation of any high grade shoots. OROPA LIMITED 11 HALF YEAR REPORT Figure 4: Hutabargot Julu Drill Location Plan OROPA LIMITED 12 HALF YEAR REPORT Table 3: Hutabargot Julu Drilling Significant Results Notes 1. All assays determined by 50gm fire assay with AAS finish by Intertek- Caleb Brett Laboratories in Jakarta 2. Lower cut of 1.0ppm Au used 3. A maxium of 2m of consecutive internal waste (material less than 1.0ppm Au) per reported intersection 4. All interval grades were calculated as a weighted average 5. All intervals reported as down hole lengths 6. Sampling regime as quarter core for PQ diameter core and half core for HQ diameter core 7. Quality Assurance and Quality Control (QAQC): 8. Coordinates in local UTM grid system Southern Block: No significant activities in the southern block during the reporting period. Malawi During the past 18 months, the Southern African country of Malawi has gained significant prominence as an emerging uranium region with an increase in exploration activities from several foreign explorers including Paladin (Africa) Ltd. (“Paladin”) with its advanced Kayelekera uranium deposit – 25.08 million lbs U3O8) (“Kayelekera”) and Globe Uranium Ltd (“Globe”) with its advanced Kanyika project in central Malawi. Paladin has recently commenced the development of Kayelekera where roll-front style mineralisation is hosted within the Karroo sandstone, mudstone and carbonaceous sediments. The project is scheduled to be commissioned in late 2008 with a forecast annual production of 3.3Mlbs of U3O8 over a mine life of 7 years based reportedly on proven and probable ore reserves of 10.46Mt at 0.108% U3O8. As is evidenced by the number of applications recently granted by the Government of Malawi, mineral exploration in the country is on the increase and it is important to explorers that the government permits the mining of uranium to develop the country’s export earnings. OROPA LIMITED 13 HALF YEAR REPORT Recent exploration in Malawi, a country which is substantially under-explored has already demonstrated that the country is highly prospective for minerals. Globe is presently conducting a scoping study at Kanyika, scheduled for completion in Q2 2008 for its uranium-niobium-tantalum-zirconium deposit, which is encouraging, given the limited amount of exploration undertaken throughout the country to date. Oropa’s wholly owned subsidiary, Oropa Exploration Pty Ltd (“OEPL”), has been granted 100% ownership of three Exclusive Prospecting Licences (“EPLs”) for uranium covering the Mzimba Northwest, Chitunde, and Chizani project areas. Additionally, OEPL has entered into joint ventures for a 90% interest in the mineral rights for uranium and other minerals (excluding coal) in two contiguous EPLs to the north of Kayelekera with local EPL holders who were previously licensed to explore for coal. OEPL has established an office and transit base in Lilongwe and stocked necessary field supplies for ongoing exploration campaigns. A regional geochemical survey was initiated in November 2007 over the areas of Mzimba Northwest and Chitunde which continued through until the commencement of the wet season in mid-December. Results from the samples collected from the two project areas have been correlated and interpreted, with an announcement to be made later this month. During the past six months, OEPL has become the holder of a substantial and diverse tenement portfolio (in excess of 3,800km2) in Malawi, which it intends to actively explore during 2008 and over the coming years. Field activities are scheduled to resume in April. Figure 5: Project Locations OROPA LIMITED 14 HALF YEAR REPORT Mzimba Northwest Project (100%) Mzimba Northwest comprises EPL0211/2007, covering an area of 2,169km2, and is situated in the north-central portion of Malawi. Immediately after acquiring the EPL, Oropa commissioned two independent interpretive studies to identify and prioritize targets for the initial sampling programs. The first study, conducted by Southern Geoscience Consultants, considered data available from a country-wide airborne radiometric uranium and magnetic geophysical survey flown in 1984/85 by Hunting Geology and Geophysics Ltd based at the time in the United Kingdom. The second study, completed by Mackay and Schnellmann Pty Ltd, interpreted Landsat satellite imagery with the aid of Malawian Geological Survey geological maps and bulletins, combined with the Hunting airborne geophysical survey, to produce a geological interpretation of the project area. The combined results from these interpretive studies have outlined targets for Karroo sediments with potential for ‘roll front’ style uranium mineralisation, similar to that at Paladin’s Kayelekara project; Mafingi quartzites for unconformity style uranium mineralisation; and circular anomalies potentially associated with intrusives and uranium-niobium-tantalum mineralisation, such as that at Globe’s Kanyika project. Last November, OEPL commenced ground geochemical surveys of selected targets identified in the interpretive studies. Due to the lack of any previous systematic exploration of the project areas, regional sampling programs together with ground radiometrics, will need to be completed before follow up exploration is undertaken. Stream sediment sampling of fine fractions at creek junctions, with panned concentrate samples at major sites was the chosen exploration method, with samples being assayed for uranium plus 28 other elements to evaluate the potential for a broad suite of other minerals. Upon interpretation of the results from these analyses, targets will be re-rated according to their mineral potential for more advanced exploration. Sampling at Mzimba Northwest concentrated on the Emoneni district in the west of the block where a north-south striking ridge coincident with uranium radiometric anomalies has been interpreted to be caused by Mafingi quartzites. These quartzites, formed from the erosion of the basement sediments during the Proterozoic era, filled valleys, basins and other topographic low areas. Subsequently, the entire Proterozoic sequence has experienced deformation and high grade metamorphism. The contact between the quartzites and gneiss is unconformable, and has been associated with uranium mineralisation. Sixty eight stream sediment samples, 14 panned concentrate samples, and 26 rock chip samples were collected to complete the initial exploration program for this target area. Chitunde Project (100%) The Chitunde project (EPL0212/2007 covering an area of 196km2 is situated some 86km west-northwest of Lilongwe and is accessible in most parts by sealed roads. The target area is a coincident airborne radiometric anomaly over an outcropping hill of quartz-syenite. The focus of exploration within the Chitunde EPL is a prominent circular airborne radiometric anomaly measuring some 4km in diameter coincident with a syenite intrusive complex. Similar intrusions in the north of Malawi, notably the Ilomba Hill locality, are known to host uranium and niobium mineralisation. Radiometric and satellite imagery covering the Chitunde Project area were evaluated to rank targets for ground investigation, prompting an initial sampling program last December in conjunction with the Mzimba Northwest program. The program comprised rock chip sampling, spectrometer readings and stream sediment sampling from creeks radiating from the hill. A total of 58 rock chip samples were collected, along with 10 stream sediment samples. OROPA LIMITED 15 HALF YEAR REPORT Table 4: Sampling Details Projects Rock Chips Stream Sediments Panned Concentrates Mzimba Northwest 26 68 14 Chitunde 58 10 0 Chizani Project (100%) EPL0223/2007, with an area of 1,283km2) was the third tenement selected by OEPL due to the area covering a major deformation zone, which is often an environment where mineralisation occurs. The area is geologically diverse, and contains many uranium radiometric anomalies. Globe’s multielement uranium-niobium-tantalum-zirconium Kanyika project borders Chizani’s southern boundary. Considering that Globe commenced field programs as recent as July 2006 generated from a radiometric anomaly demonstrates the potential of the area. The granting of Chizani by the Malawian government in mid-December 2007 was too late for any exploration to be undertaken prior to the onset of the wet season. Similar interpretative studies as completed for Mzimba Northwest and Chitunde are being initiated to permit OEPL to commence stream geochemical surveys early in the coming field season. Ngana and Ngana East Projects (90%) Ngana and Ngana East are the subject of two separate Memorandum of Understandings (“MOUs”) with two local EPL holders who hold the mineral rights for coal exploration and development. Substantial coal occurrences are thought to exist in the areas, although no systematic coal exploration has been completed to date. Ngana and Ngana East are located in the far north of the country, with their northern boundaries coincident with the Tanzanian border. The two prospects are in a strategic location, containing basins of Karroo sediments, with the nearest mapped Karroo occurrence being located some 20km to the south at Kayelekera. Uranium can be hosted in strata bound deposits in the Karroo sediments, particularly where mobile uranium is trapped by carbonaceous mudstone or sandstone layers. Brief site inspections of both locations were undertaken as part of the MOU agreements. Formal Shareholders Agreements have been prepared and forwarded to Malawi for the respective joint venture partners’ evaluation. Thereafter, two new Malawian joint venture companies will be incorporated prior to field activities, which are scheduled to commence in the coming field season. India Block D-7 Diamond Project, Chhattisgarh; (9% plus 9% buy back) With little apparent progress towards an outcome to the protracted high court case in Chhattisgarh during the latter part of 2007, Oropa continued to concentrate its exploration efforts at Pungkut and more recently, initiate exploration programs in Malawi. Owing to inordinate ongoing delays with this high court matter, Oropa decided not to contribute to a number of cash calls made by the Indian partners, preferring to dilute its equity in B. Vijaykumar Exploration Pvt Ltd (“BVTS”) with the right to buy back the additional 10% equity in BVTS at a future date. Throughout the latter half of 2007, Oropa maintained regular contact with its Indian joint venture partners to monitor any progress and an Oropa director attended board meetings in Mumbai during the year to obtain updates on the Block D-7 court case and the status of the two Krishna River Reconnaissance Permit applications in Andhra Pradesh. OROPA LIMITED 16 HALF YEAR REPORT Project Evaluation Oropa’s appraisals of a number of areas in Kenya and Malawi during late 2006 and early 2007 paid dividends with the Company presently holding 100% interests in three granted EPLs in Malawi, with two others awaiting the execution of Shareholders Agreements with the local partners. In Kalimantan, Indonesian numerous coal projects were assessed involving a number of site visits to meet with property vendors, local government officials and to review all available historical data and licence documents, etc. Although the vast majority of these projects were rapidly discarded, the Company continues to investigate exploration and mining opportunities in this emerging coal province. Oropa has recently entered into more advanced negotiations with two Indonesian groups in connection with areas in East and South Kalimantan that exhibit the potential to host medium to large coal resources. These assessments have established that the attrition rates are high, requiring a thorough due diligence and technical appraisal of each prospect, prior to entering into any formal commitments to enter into option agreements or joint ventures. However, the Company considers that these ongoing evaluations are justifiable and the processes continue. AUDITOR’S INDEPENDENCE DECLARATION A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 29. Signed in accordance with a resolution of the Board of Directors. PHILIP C CHRISTIE Director 14 March 2008 OROPA LIMITED 17 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 241 374 CONDENSED CONSOLIDATED INCOME STATEMENT For the Half Year Ended 31 December 2007 CONSOLIDATED 31.12.2007 31.12.2006 Note $ $ Revenue 13,925 55,115 Total Revenue 13,925 55,115 Corporate secretarial expenses (29,675) (24,731) Depreciation (7,153) (2,460) Directors’ fees (-) (7,750) Employee benefits expense (63,139) (71,392) Exchange rate loss (223,292) (421,102) Exploration expenditure written off (1,289,133) (1,278,534) External consultancy expenses (99,317) (102,132) Insurance expenses (16,329) (31,545) Legal costs (1,391) (3,337) Postage (4,619) (13,251) Printing and stationary (11,536) (17,384) Rates and taxes (5,847) (3,148) Rental expense (22,257) (21,379) Travel and entertainment (19,510) (20,103) Other expenses (43,942) (66,802) Loss before income tax 3 (1,823,215) (2,029,935) Income tax expense - - Loss after income tax (1,823,215) (2,029,935) Loss attributable to members of Oropa Limited (1,823,215) (2,029,935) Basic loss per share (cents per share) (1.21) (0.02) Diluted earnings per share is not disclosed as this would not reflect an inferior position. The accompanying notes form part of these financial statements. OROPA LIMITED 18 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 CONDENSED CONSOLIDATED BALANCE SHEET As at 31 December 2007 CONSOLIDATED Note 31.12.2007 30.06.2007 $ $ Current Assets Cash and cash equivalents 8 738,385 1,451,496 Trade and other receivables 122,929 131,302 Financial assets 1,333 1,333 Total Current Assets 862,647 1,584,131 Non-Current Assets Plant & equipment 98,340 92,880 Other 61,864 63,725 Total Non-Current Assets 160,204 156,605 Total Assets 1,022,851 1,740,736 Current Liabilities Trade and other payables 167,910 192,124 Provisions 370,732 331,697 Other 27,270 24,242 Total Current Liabilities 565,912 548,063 Non-Current Liabilities Non interest bearing loans 36,544 37,760 Total Non-Current Liabilities 36,544 37,760 Total Liabilities 602,456 585,823 Net Assets 420,395 1,154,913 Equity Issued capital 7 34,322,825 33,411,976 Reserves 1,661,958 1,484,110 Accumulated losses (35,662,839) (33,839,624) Total parent entity interest 321,944 1,056,462 Minority interest in controlled entities 98,451 98,451 Total Equity 420,395 1,154,913 The accompanying notes form part of these financial statements. OROPA LIMITED 19 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the Half Year ended 31 December 2007 CONSOLIDATED $ $ $ $ $ Share Capital Reserves Accumulated Outside Equity Total Losses Interest Balance at 1.7.06 31,525,228 479,003 (29,725,559) 98,451 2,377,123 Issue of shares 933 - - - 933 Share issue costs - - - - - Foreign currency reserve - 359,915 - - 359,915 Issue of options - 16,011 - - 16,011 Loss for the half year - - (2,029,935) - (2,029,935) Balance at 31.12.06 31,526,161 854,929 (31,755,494) 98,451 724,047 $ $ $ $ $ Share Capital Reserves Accumulated Outside Equity Total Losses Interest Balance at 1.7.07 33,411,976 1,484,110 (33,839,624) 98,451 1,154,913 Issue of shares 963,525 - - - 963,525 Share issue costs (52,676) - - - (52,676) Foreign currency reserve - 177,848 - - 177,848 Issue of options - - - - - Loss for the half year - - (1,823,215) - (1,823,215) Balance at 31.12.07 34,322,825 1,661,958 (35,662,839) 98,451 420,395 The accompanying notes form part of these financial statements. OROPA LIMITED 20 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 CONDENSED CONSOLIDATED CASH FLOW STATEMENT For the Half Year Ended 31 December 2007 CONSOLIDATED 31.12.2007 31.12.2006 Note $ $ Cash flows from operating activities Payments to suppliers and employees (838,568) (324,151) GST input credit refunds received - 43,787 Interest received 13,925 55,115 Net cash (used in) operating activities (824,643) (225,249) Cash flows from investing activities Purchase of plant & equipment (22,195) (9,196) Mining exploration and evaluation expenditure (745,960) (1,299,567) Payment for investments - (488) Net cash (used in) investing activities (768,155) (1,309,251) Cash flows from financing activities Proceeds from share issue 963,525 933 Share issue costs (52,676) - Net cash provided by financing activities 910,849 933 Net increase /(decrease) in cash and cash equivalents held (681,949) (1,533,567) Cash and cash equivalents at the beginning of the reporting period 1,451,496 2,502,065 Effects of exchange rate changes on cash and cash equivalents (31,162) (37,339) Cash and cash equivalents at the end of the reporting period 8 738,385 931,159 The accompanying notes form part of these financial statements. OROPA LIMITED 21 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Half Year Ended 31 December 2007 1. Corporate Information Oropa Limited (the Company) is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange. The consolidated half year report of the Company as at and for the six months ended 31 December 2007 comprises the Company and its subsidiaries, together referred to as the “Group”. The consolidated annual financial report of the Group as at and for the year ended 30 June 2007 is available upon request from the Company’s registered office at 25 Charles Street, South Perth, Western Australia or at www.oropa.com.au . 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES (a) Basis of preparation The general purpose financial report for the half-year ended 31 December 2007 has been prepared in accordance with the requirements of the Corporations Act and AASB 134 Interim Financial Reporting. The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. It is recommended that the half year financial report should be read in conjunction with the Annual Financial Report of Oropa Limited as at 30 June 2007 and considered together with any public announcements made by Oropa Limited and its controlled entities during the half-year ended 31 December 2007 in accordance with its continuous disclosure obligations of the ASX Listing Rules. The half-year financial report has been prepared on a historical cost basis. (b) Significant accounting policies The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2007, except for the adoption of amending standards mandatory for annual periods beginning on or after 1 July 2007 as described in Note 2(c). (c) Changes in accounting policies Since 1 July 2007 the Group has adopted the following Standards and Interpretations mandatory for annual periods beginning on or after 1 January 2007. Adoption of these Standards and Interpretations did not have any effect on the financial performance or position of the Group. • AASB 7 Financial Instruments: Disclosures • AASB 2005-10 Amendments to Australian Accounting Standards (AASB 132,101,114,117,133,139,1,4, 1023 and 1038) • AASB 2007-04 Amendments to Australian Accounting Standards arising from ED 151 and other amendments • AASB 2007-7 Amendments to Australian Accounting Standards (AASB 1, 2, 4, 5, 107 and 108) OROPA LIMITED 22 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Half Year Ended 31 December 2007 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED (d) Going Concern The condensed consolidated financial statements have also been prepared on the going concern basis. The ability of the Company and consolidated entity to actively explore and continue as a going concern, and to meet their debts and commitments as they fall due is dependant upon further capital raisings. The directors are confident that the Company will be successful in raising further capital and, accordingly, have prepared the financial report on a going concern basis. (e) Basis of consolidation The half year condensed consolidated financial statements comprise the financial statements of Oropa Limited and its subsidiaries as at 31 December 2007. CONSOLIDATED 31.12.2007 31.12.2006 $ $ 3. OPERATING LOSS Operating loss from ordinary activities before income tax has been determined after: (a) Crediting as revenue: Interest received 13,925 51,115 Foreign exchange gain - - (b) Charging as expense: Depreciation 7,153 2,460 Exploration expenditure 1,289,133 1,278,534 written off Foreign exchange loss 223,292 421,102 OROPA LIMITED 23 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Half Year Ended 31 December 2007 4. SEGMENT INFORMATION Primary Reporting – geographical segments The geographical segments of the consolidated entity are as follows: Half year 2007 Australia $ South East Asia $ India $ Unallocate d $ Consolidate d $ Total Segment Revenue 13,925 - - - 13,925 Segment Result (973,270) (831,026) (18,919) - (1,823,215) Half year 2006 Australia $ South East Asia $ India $ Unallocate d $ Consolidate d $ Total Segment Revenue 51,115 - - - 51,115 Segment Result (839,005) (1,190,930 ) - - (2,029,935) 5. SUBSEQUENT EVENTS Consultancy Contract Director Philip Christie trading as Yellowmoon Gold Mines Pty Ltd has renegotiated his consultancy agreement with Oropa Limited. This agreement comes into effect on 10 January 2008 and runs for a period of three years. Consultancy fees of $17,500 is payable per month. Should the contract be terminated prior to the expiry date of the consultancy agreement a termination fee will be payable up to a maximum of $425,000. The directors of Oropa Limited have passed a directors resolution to effect this. Share Placement On 14 March 2008 a placement of 13,347,483 ordinary shares at 4c each was made by the company. Funds of $533,900 were raised from the placement and costs of $3,550 were incurred being ASX listing fees. 6. CONTINGENT LIABILITIES There has been no change in contingent liabilities since the previous annual reporting date. OROPA LIMITED 24 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Half Year Ended 31 December 2007 31.12.2007 30.06.2007 $ $ 7. ISSUED CAPITAL Ordinary shares Issued & fully paid 34,322,825 33,411,976 31.12.2007 31.12.2007 Number $ Movements in ordinary shares on issue: As at 1 July 2007 145,349,328 33,411,976 12 October 1 - 17 October 2007 10,300,555 463,525 16 December 2007 10,000,000 500,000 Share issue costs - (52,676) 165,649,884 34,322,825 Options As at 28 February 2008, the Company had the following listed options: - 12,791,440 options to subscribe for fully paid ordinary shares exercisable at 20 cents at any time on or before the expiry date of 31 January 2010. The above options are quoted on the Australian Securities Exchange Limited (“ASX”). The following options are unlisted: - 2,700,000 to subscribe for fully paid ordinary shares exercisable at 13 cents at any time on or before the expiry date of 31 January 2009. - 500,000 options to subscribe for fully paid ordinary shares exercisable at 12 cents at any time on or before the expiry date of 20 October 2008. 31.12.2007 31.12.2006 $ $ 8. RECONCILIATION OF CASH Cash and cash equivalents 738,385 931,159 Restricted cash - 12,643 738,385 943,802 Included in cash and cash equivalents is restricted cash of $23,948. The restricted cash at bank is unclaimed monies from the sale of un-marketable parcels of shares. The amount represents the cheques sent to shareholders that were returned to Oropa Limited. Cash at bank at 31 December 2007 includes a Bank Guarantee of AUS $20,000 and an Import Letter of Credit of US $24,267. OROPA LIMITED 25 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the Half Year Ended 31 December 2007 9. RELATED PARTIES Wholly-owned Group The wholly-owned group consists of Oropa Limited and its wholly-owned subsidiaries Inland Goldmines Pty Limited, Excelsior Resources Limited, Oropa Technologies Pty Limited and Oropa Indian Resources Pty Limited and Oropa Exploration Pty Ltd. Oropa owns 100% of the shares in Aberfoyle Pungkut Investments Pte Ltd (API). API holds a 75% interest in PT Sorikmas Mining, with the Indonesian Government mining company, P.T. Aneka Tambang holding the remaining 25%. Transactions between Oropa Limited and related parties in the wholly-owned group during the period ended 31 December 2007 consist of loans on an interest free basis with no fixed term and no specific repayment arrangement. Oropa Limited made an additional provision for doubtful debts of $518,093 in its accounts for the period ended 31 December 2007 in relation to the loans made to its subsidiaries. No other amounts were included in the determination of operating loss before tax of the parent entity that resulted from transactions with related parties in the wholly-owned group. Other related parties Aggregate amounts receivable from related parties in the wholly owned group at balance date were as follows: 31.12.2007 30.06.2007 $ $ Non current receivables 11,049,349 10,531,257 Provision for Doubtful Debts (11,049,349) (10,531,257) - - OROPA LIMITED 26 HALF YEAR REPORT OROPA LIMITED AND CONTROLLED ENTITIES ACN 009 241 374 DIRECTORS’ DECLARATION The directors declare that 1. The condensed consolidated financial statements and notes set out on pages 17 to 25: (a) comply with Accounting Standard AASB 134: – Interim Financial Reporting, the Corporations Regulations; and (b) give a true and fair view of the consolidated entity’s financial position as at 31 December 2007 and of its performance for the half-year ended on that date. 2. In the directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the directors. Dated at Perth this 14h day of March 2008 PC CHRISTIE Director
ORP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
