Borealis Exploration Limited Consolidated Financial Statements for the Six Months Ended 30 September

BOREALIS EXPLORATION LIMITED

Registered number: 66632

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED 30 SEPTEMBER 2013

the second quarter of Fiscal Year 2014

CONTENTS PAGE

Consolidated statement of comprehensive income 2

Consolidated statement of financial position 3

Company statement of financial position 4

Consolidated statement of changes in equity 5

Company statement of changes in equity 6

Consolidated statement of cash flows 7

Notes 9

1

BOREALIS EXPLORATION LIMITED

Registered number: 66632

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended 30 September 2013

30 September 30 September Year ended

2013 2012 31 March 2013

Note $ $ $

EXPENDITURE (1,468,089) (1,568,059) (3,349,388)

OPERATING

LOSS 6 (1,468,089) (1,568,059) (3,349,388)

Profit (Loss) on disposal of

marketable investments - (265,390) (26,160)

Unrealised (loss)/gain on

revaluation of marketable

securities (241,300) (64,330) (987,647)

Financing gain (loss) (662,232) 1,590,092) (1,334,039)

Interest received 18 18 -

Interest paid (816) - (3,393)

Foreign exchange gain

(loss) (3,526) - 8,718

LOSS ON ORDINARY ACTIVITIES

BEFORE TAX (2,375,945) (3,487,853) (5,691,909)

Tax - - -

LOSS ON ORDINARY

ACTIVITIES AFTER TAX (2,375,945) (3,487,853) (5,691,909)

Profit on sale of shares

in subsidiary companies 1,163,436 2,424,580 8,415,955

Loss on (increase)/decrease

in stake in business 1,106 1,367 (28,974)

Equity non-controlling interest (191,380) 379,553 (599,206)

Equity non-controlling interest

- (Sept 2012 prior year adjustment) 5,661,479

TOTAL COMPREHENSIVE INCOME

(LOSS) FOR THE PERIOD (1,402,783) 4 ,979,126 2,095,866

EARNINGS/(LOSS) PER SHARE

ATTRIBUTABLE ($0.28) ($0.14) $0.42