Interim Statement For The Six Months Ended 31st December 2012

Spitfire Oil Limited (“Spitfire” or “the Company”) is pleased to publish its unaudited interim results for the six months ended 31st December 2012.

Spitfire and its subsidiaries (together “the Group”) recorded a loss before tax for the six  months ended 31st December 2012 of A$182,907 (2011: A$211,889). With cash balances of A$7.2m, the Group has benefited from interest receipts of A$122,584 (2011 A$180,660) in the period. Operating costs have been reduced to A$305,491 (2011 A$392,549) with action taken during the period to further reduce costs, including a reduction in directors’ fees.

On 4th September 2012 Spitfire Oil Pty Ltd was granted a five year renewable retention licence covering the Salmon Gums lignite resource area with no annual exploration  expenditure commitments attaching tothis licence other than the prescribed licence fees.

Developing processing technologies, and in particular developments in pyrolysis technology, are being kept under review for possible application to process the Salmon Gums lignite. In the meantime the directors continue to evaluate numerous alternative natural resources projects.

Chairman’s Statement

Chairman Mladen Ninkov commented,

“Having ensured long term tenure over the Salmon Gums lignite deposits with minimal financial commitment, costs have been further reduced to ensure the financial stability of the Company for the foreseeable future. The directors will continue to review all possible acquisition opportunities for the Company. “

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
(expressed in Australian dollars)

Half-year Full-year
Note 31
December
2012
Unaudited
A$
31
December
2011
Unaudited
A$
30
June
2012
Audited
A$
OTHER INCOME 122,584 180,660 332,569
EXPENDITURE
Corporate expenses (284,001) (331,357) (656,805)
Other expenses (21,490) (61,192) (106,751)
LOSS BEFORE INCOME TAX (182,907) (211,889) (430,987)
Income tax
LOSS AFTER INCOME TAX (182,907) (211,889) (430,987)
OTHER COMPREHENSIVE INCOME, NET OF TAX
LOSS AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF SPITFIRE OIL LIMITED (182,907) (211,889) (430,987)
Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company (cents per share). 6 (0.4) (0.5) (1.0)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 December 2012
(expressed in Australian dollars)

Note 31
December
2012
Unaudited
A$
31
December
2011
Unaudited
A$
30
June
2012
Audited
A$
CURRENT ASSETS
Cash and cash equivalents 7,216,454 7,519,328 7,367,957
Trade and other receivables 3,266
Other current assets 30,447 26,128 12,961
TOTAL CURRENT ASSETS 7,246,901 7,548,722 7,380,918
NON-CURRENT ASSETS
Plant and equipment 1,085
Capitalised exploration and evaluation costs 8,373,897 8,332,730 8,373,897
Other non-current assets 45,000 45,000
TOTAL NON-CURRENT ASSSETS 8,373,897 8,378,815 8,418,897
TOTAL ASSETS 15,620,798 15,927,537 15,799,815
CURRENT LIABILITIES
Trade and other payables 22,999 6,909 45,800
TOTAL CURRENT LIABILITIES 22,999 6,909 45,800
TOTAL LIABILITIES 22,999 6,909 45,800
NET ASSETS 15,597,799 15,920,628 15,754,015
EQUITY
Issued capital 5 20,854,412 20,854,412 20,854,412
Reserves 308,544 229,368 281,853
Accumulated losses (5,565,157) (5,163,152) (5,382,250)
TOTAL EQUITY 15,597,799 15,920,628 15,754,015

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
(expressed in Australian dollars)

Issued
Capital
Options
Reserve
Accumulated
Losses
Total
A$ A$ A$ A$
BALANCE AT 1 JULY 2011 20,854,412 149,937 (4,951,263) 16,053,086
Loss for the period (211,889) (211,889)
LOSS AND TOTAL COMPREHENSIVE INCOME (211,889) (211,889)
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Issuance of employee share options 79,431 79,431
BALANCE AT 31 DECEMBER 2011 20,854,412 229,368 (5,163,152) 15,920,628
Loss for the period (219,098) (219,098)
LOSS AND TOTAL COMPREHENSIVE INCOME (219,098) (219,098)
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Issuance of employee share options 52,485 52,485
BALANCE AT 30 JUNE 2012 20,854,412 281,853 (5,382,250) 15,754,015
Loss for the period (182,907) (182,907)
LOSS AND TOTAL COMPREHENSIVE INCOME (182,907) (182,907)
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Issuance of employee share options 26,691 26,691
BALANCE AT 31 DECEMBER 2012 20,854,412 308,544 (5,565,157) 15,597,799

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
(expressed in Australian dollars)

Half-year Full-year
31
December
2012
Unaudited
A$
31
December
2011
Unaudited
A$
30
June
2012
Audited
A$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees (228,360) (335,362) (602,446)
Interest received 122,584 180,660 332,569
Net cash outflow from operating activities (105,776) (154,702) (269,897)
CASH FLOWS FROM INVESTING ACTIVITIES
Refund of tenement rents
Payments for exploration and evaluation expenditure (41,167) (311,275) (348,213)
Net cash (outflow)/inflow from investing activities (41,167) (311,275) (348,213)
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (146,943) (465,977) (618,110)
Cash and cash equivalents at the beginning of the period 7,367,957 7,985,012 7,985,012
Effects of exchange rate changes on cash and cash equivalents (4,560) 293 1,055
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 7,216,454 7,519,328 7,367,957

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

SPITFIRE OIL LIMITED
Notes to the CONDENSED CONSOLIDATED financial statements

NOTE 1: BASIS OF PREPARATION OF THE SIX MONTH FINANCIAL REPORT

This condensed consolidated interim financial report for the six month reporting period ended 31 December 2012 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The summary accounts set out above do not constitute statutory accounts as defined by Section 84 of the Bermuda Companies Act 1981 or Section 435 of the UK Companies Act 2006. The condensed consolidated statement of financial position at 30 June 2012 and the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended have been extracted from the Group’s 2012 statutory financial statements upon which the auditors’ opinion is unqualified. The condensed consolidated statement of comprehensive income has been prepared using information extracted from the Group’s 2012 statutory financial statements.

This condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2012 and any public announcements made by Spitfire Oil Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Copies of this interim report are being sent to all registered shareholders. Additional copies are available from the Company’s London office, 60 St James’s Street, London, SW1A 1LE.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the six months ended 31 December 2012. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group accounting policies.

NOTE 2: SEGMENT INFORMATION

The Group operates in predominantly one operating segment, being the exploration and mining for valuable resources that produce energy in Australia. The results, revenue and operating assets reported all relate to exploration and mining for valuable resources that produce energy in Australia.

NOTE 3: DIVIDENDS

The Company has not declared any dividends in the period ended 31 December 2012.

NOTE 4: CONTINGENCIES

There has been no change in contingent liabilities or contingent assets since the last annual reporting date.

NOTE 5: ISSUED CAPITAL

31 December 2012 31 December 2011 30 June 2012
No A$ No A$ No A$
Issued
and Paid Up Capital
Fully
Paid Ordinary Shares
42,550,668 20,854,412 42,550,668 20,854,412 42,550,668 20,854,412
Total
Issued Capital
20,854,412 20,854,412 20,854,412

NOTE 6: LOSS PER SHARE

31
December
2012
31
December
2011
30
June
2012
Basic and diluted loss per share (cents) (0.4) (0.5) (1.0)
a) Net loss used in the calculation of basic and diluted loss per share (182,907) (211,889) (430,987)
b) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic and diluted loss per share 42,550,668 42,550,668 42,550,668

Options that are considered to be potential ordinary shares are excluded from the weighted average number of ordinary shares used in the calculation of basic loss per share. Where dilutive, potential ordinary shares are included in the calculation of diluted loss per share.

All the options on issue do not have the effect to dilute loss per share. Therefore they have been excluded from the calculation of diluted loss per share. There have been no other conversions to, call of, or subscriptions for ordinary shares since the reporting date and before the completion of this report.

NOTE 7: NET TANGIBLE ASSETS

31 December 2012 31 December 2011 30 June 2012
Net Tangible Assets (A$) 7,223,902 7,587,898 7,380,118
Shares (No) 42,550,668 42,550,668 42,550,668
Net Tangible Assets (cents) 17.0 17.8 17.8

NOTE 8: SUBSEQUENT EVENTS

No matter or circumstance has arisen since 31 December 2012, which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial years.