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ASX Announcements: March 15, 2004

Half yearly Accounts December 2003


REPUBLIC GOLD LIMITED

A.B.N. 86 106 399 311

FINANCIAL REPORT

FOR THE PERIOD ENDED
31ST DECEMBER, 2003

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
DIRECTORS' REPORT

Your directors submit the financial report of the economic entity for the period ended 31st December, 2003.

Directors

The names of directors who held office during or since the end of the period:

Mr Thomas Linardos
Mr John Kelly
Mr Greg Barns
Mr Chris Roberts

Results

The economic entity’s loss for the period was $420,496 after an income tax benefit of $180,212.

Review of Operations

The entity was incorporated on 22nd September, 2003.

On 30th September, 2003 shareholders approved the issuing of 700,000 31st October, 2006 options to each of the four Directors of the entity. The exercise of these options is conditional on the Company increasing its gold resource base to 500,000 ounces and the exercise price is 25 cents. A condition of the admission of the entity to the Official List of the Australian Stock Exchange is that these options are escrowed for a period of two years.

In October, 2003, the entity raised $500,000 in seed capital by the issuing of 5,000,000 ordinary shares at 10 cents per ordinary share. A condition of the admission of the entity to the Official List of the Australian Stock Exchange is that 50% of these seed capital shares are escrowed for a period of one year.

On 17th November, 2003 the entity entered into an agreement with Zeus Gold Pty. Limited, an entity associated with the Directors, for the transfer of certain exploration assets and joint venture interests owned by Zeus Gold to the entity in exchange for 24,085,000 shares in the entity, issued to Republic Gold Unit Trust, an entity associated with the Directors. A condition of the admission of the entity to the Official List of the Australian Stock Exchange is that these shares are escrowed for a period of two years.

On 18 November, 2003 the entity lodged an Initial Public Offering prospectus with A.S.I.C. to raise $5,600,000 by the issuing of 28,000,000 ordinary shares at 20 cents per ordinary share plus one free 30th November, 2006 option for every two ordinary shares subscribed for. The exercise price of the options is 25 cents.

On 8th December, 2003 the entity lodged a supplementary prospectus with A.S.I.C. to extend the closing date of the 18th November, 2003 IPO prospectus.

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
DIRECTORS' REPORT

Review of Operations (continued)

Subsequent to the end of the period represented by this report, the entity’s IPO closed oversubscribed on 9th January, 2004, raising approximately $5,835,000. The entity was admitted to the Official List of the Australian Stock Exchange on 14th January, 2004 and ordinary shares and options in the entity commenced trading on the Australian Stock Exchange on 16th January, 2004.

Other than is referred to in this report, further information on the likely developments in the operations of the entity and the expected results of those operations would, in the opinion of the Directors, be speculative and would be likely to result in unreasonable prejudice to the entity.


Signed in accordance with a resolution of the directors.


Dated this 15th day of March, 2004.

T. Linardos J Kelly
Director Director

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
CONDENSED STATEMENT OF FINANCIAL PERFORMANCE
FOR THE PERIOD ENDED 31ST DECEMBER, 2003

Notes Economic Entity

31st Dec, 2003
$

Revenues from ordinary activities 2,633

Total revenue 2,633

Other expenses from ordinary activities 603,341

Loss from ordinary activities
before income tax benefit 2 (600,708)

Income tax benefit relating to
ordinary activities (180,212)

Net loss from ordinary activities
after income tax benefit (420,496)

Basic earnings per share (cents per share) (0.01)

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

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 31ST DECEMBER, 2003


31st Dec, 2003
$

CURRENT ASSETS
Cash assets 4,070,223
Receivables 55,124

TOTAL CURRENT ASSETS 4,125,347

NON-CURRENT ASSETS
Other financial assets 7,549,716
Intangibles 124,267
Other tax assets 180,212

TOTAL NON-CURRENT ASSETS 7,854,195

TOTAL ASSETS 11,979,542

CURRENT LIABILITIES
Payables 7,083,034

TOTAL CURRENT LIABILITIES 7,083,034

TOTAL LIABILITIES 7,083,034

NET ASSETS 4,896,508

EQUITY
Share capital 5,317,004
Accumulated Losses (420,496)

TOTAL EQUITY 4,896,508

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

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31ST DECEMBER 2003


31st Dec, 2003
$

CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers (296,601)
Interest received 2,633

NET CASH OUTFLOWS FROM OPERATING ACTIVITIES (293,968)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of non-current assets (56,983)

NET CASH OUTFLOWS FROM INVESTING ACTIVITIES (56,983)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 4,421,174

NET CASH INFLOWS FROM FINANCING ACTIVITIES 4,421,174

NET INCREASE IN CASH HELD 4,070,223
Cash at 1st July, 2003 -

CASH AT 31ST DECEMBER, 2003 4,070,223

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

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31ST DECEMBER 2003


1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements for the period are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Auditing Standards Board.

The financial report for the period has been prepared in accordance with the historical cost convention.

It is recommended that this financial report should be read in conjunction with any public announcements made by Republic Gold Limited during the period in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the economic entity.

The report for the period does not include full disclosures of the type normally included in an annual financial report.

2. LOSS FROM ORDINARY ACTIVITIES

Economic Entity
31st December, 2003
$

Loss from ordinary activities before income tax
benefit includes the following tax revenues and
expenses whose disclosure is relevant in explaining
the financial performance of the entity:

Revenues from Ordinary Activities

- Interest Revenue 2,633


REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
DIRECTORS' DECLARATION


The Directors of the company declare that:

1. The financial statements and notes, as set out on pages 3 to 6

(a) comply with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations; and
(b) give a true and fair view of the economic entity’s financial position as at 31st December, 2003 and of its performance for the period 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.

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


Dated this 15th day of March, 2004.

T. Linardos J. Kelly
Director Director

REPUBLIC GOLD LIMITED
A.B.N. 86 106 399 311
INDEPENDENT REVIEW REPORT TO THE MEMBERS OF REPUBLIC GOLD LIMITED

Scope

We have reviewed the financial report of Republic Gold Limited for the period ended 31st December, 2003 as set out on pages 3 to 7. The financial report includes the condensed financial statements of the company. The company’s directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements and statutory requirements, so as to present a view which is consistent with our understanding of Republic Gold Limited’s financial position, and performance as represented by the results of its operations and its cash flows, and in order for the Company to lodge the financial report with the Australian Securities and Investments Commission/Australian Stock Exchange.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of Republic Gold Limited is not in accordance with:

(a) the Corporations Act 2001, including:

(i) giving a true and fair view the Company's financial position at 31st December, 2003 and of its performance for the period ended on that date; and

(ii) complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations; and

(b) other mandatory professional reporting requirements.

DRAPER DILLON Melbourne
Chartered Accountants

Dated this 15th day of March, 2004

NORMAN DRAPER FCA
PARTNER

For more information, please contact: Greg Barns ([email protected]) on 0419 691 846 or John Kelly ([email protected]) on 0418 577579.

This news item can be viewed on the Web at http://www.republicgold.com.au/news/2004-03-15.php.