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

BOREALIS EXPLORATION LIMITED

Registered number: 66632

COMPANY STATEMENT OF FINANCIAL POSITION

30 September 2013

30 September 31 March 30 September

2013 2013 2012

ASSETS $ $ $

NON-CURRENT ASSETS

Intangible assets 741,881 705,775 668,934

Tangible assets 18,140 20,730 23,323

Investments in subsidiaries 83,950 83,950 83,950

843,971 810,455 776,207

CURRENT ASSETS

Trade and other receivables 1,720,445 1,527,796 1,574,795

Cash and cash equivalents 20,400 108,326 64,161

1,740,845 1,636,122 1,638,956

TOTAL ASSETS 2,584,816 2,446,577 2,415,163

EQUITY AND LIABILITIES

Called up share capital 50,000 50,000 50,000

Share premium account 24,241,030 24,241,030 24,241,030

Retained earnings (57,119,931) (56,457,647) (56,804,783)

NET ASSETS (32,828,901) (32,166,617) (32,513,753)

LIABILITIES

NON-CURRENT LIABILITIES 2,429,180 1,784,948 2,050,940

CURRENT LIABILITIES

Trade and other payables 32,984,537 32,828,246 32,877,976

2,584,816 2,446,577 2,415,163

Called

Up Share Non Non-

Share Premium distributable controlling Retained

Capital Account reserve interest earnings Total

$ $ $ $ $ $

Balance at 1

April 2011 50,000 24,241,030 10,318,968 14,533,085 (32,974,506) 16,168,577

Total

Comprehensive

Income for

the Year - - - - (3,885,139) (3,885,139)

Impairment - - (10,318,968) - - (10,318,968)

Minority interest - - - (313,811) - (313,811)

Post year-end

Adjustment - - - (5,661,470) 5,661,470 -

Balance at 1

April 2012 50,000 24,241,030 - 8,557,804 (31,198,175) 1,650,659

Total Comprehensive

Income

for the Period - - - - 2,095,866 2,095,866

Minority interest - - - 599,206 - 599,206

Balance at 31

March 2013 50,000 24,241,030 - 9,157,010 (29,102,309) 4,345,73

Total Comprehensive

Loss for the Period - - - - (1,402,783) (1,402,783)

Minority interest 191,380 191,380

Balance at 30

September 2013 50,000 24,241,030 - 9,348,390 (30,505,092) 3,134,328