Mawson West : Q3 Financial Statements

ABN: 67 072 595 576

UNAUDITED CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE THREE & NINE MONTH PERIODS ENDED 30 SEPTEMBER 2016

This unaudited 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 audited annual financial report of Mawson West Limited for the year ended 31 December 2015, the Company's management's discussion and analysis for the quarter ended 30 September 2016, the Company's Annual Information Forms and any public announcements made by Mawson West Limited during the interim reporting period in

accordance with the continuous disclosure requirements of the Corporations Act 2001 (Australia) and applicable securities laws.

All amounts in this report are stated in US dollars unless noted otherwise

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 SEP 2016 Consolidated three months ended 30 Sep Consolidated nine months ended 30 Sep

Note

2016 $'000 2015 $'000 2016 $'000 2015 $'000

Revenue - 11,554 16,09912,655

Cost of sales - (11,275) (23,396) (13,446)

Gross profit/(loss) - 279 (7,297)(791)

General administrative and marketing expenses Depreciation expense	(648) -	(2,033) -
Care and maintenance expenses	(2,120)	(708)
Exploration expenses	-	(13)
Other income	195	1
Foreign exchange gains/(losses)	(463)	10
Share-based payments gains/(losses)	-	(150)
Impairment of mine development assets	-	-
Impairment of other receivables	-	-
Gain on loan revision	-	-

(2,896)	(7,515)
-	(120)
(5,729)	(7,978)
-	(420)
4,889	2
(553)	26
-	545
-	(24,735)
-	(2,943)
4,677	-

Profit/(loss) on derivative instruments - 407 25 996

Operating Loss (3,036) (2,207) (6,884) (42,933)

Finance income - 1 15

Finance expense (1,403) (2,066) (6,298) (3,268)

Income tax benefit/(expense)	-	11
Loss after income tax	(4,439)	(4,261)

Loss before income tax (4,439) (4,272) (13,181)(46,196)

- -

(13,181) (46,196)

Other comprehensive income Total comprehensive loss for the	-	-	-	-
period	(4,439)	(4,261)	(13,181)	(46,196)

Net loss after income tax attributable to: Owners of the parent	(3,998)	(3,777)	(11,860)	(41,493)
Non-controlling interests	(441)	(484)	(1,321)	(4,703)
(4,439)	(4,261)	(13,181)	(46,196)
Total comprehensive loss attributable to:
Owners of the parent	(3,998)	(3,777)	(11,860)	(41,493)
Non-controlling interests	(441)	(484)	(1,321)	(4,703)

(4,439) (4,261) (13,181) (46,196)

(0.2) cents	(0.9) cents	(0.8) cents	(11.5) cents
(0.2) cents	(0.9) cents	(0.8) cents	(11.5) cents

Basic (loss)/earnings per share Diluted (loss)/earnings per share

The above Unaudited Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEP 2016 Consolidated

Note	30 Sep 2016 $'000	31 Dec 2015 $'000
Current Assets Cash and short term deposits	3	729	1,493
Trade and other receivables	4	5,123	6,082
Inventories	5	6,523	13,085
Advance tax receivable	6	60	168
Other assets	7	1,219	1,081
Total Current Assets	13,654	21,909
Non-Current Assets Other assets	7	4,910	2,696
Property, plant and equipment	8	11,328	13,292
Mine properties	9	15,307	16,312
Advance tax receivable	6	972	916
Total Non-Current Assets	32,517	33,216
Total Assets	46,171	55,125
Current Liabilities Trade and other payables	5,223	15,509
Derivative liabilities	79	105
Loans and borrowings	10	2,989	16,562
Provisions	277	473
Total Current Liabilities	8,568	32,649
Non-Current Liabilities Loans and borrowings	10	66,651	51,120
Provisions	6,235	6,036
Total Non-Current Liabilities	72,886	57,156
Total Liabilities	81,454	89,805
Net Liabilities	(35,283)	(34,680)
Equity Issued capital	11	228,085	215,516
Reserves	8,827	8,818
Accumulated losses	(253,672)	(241,812)
Parent entity interest	(16,760)	(17,478)
Non-controlling interest	(18,523)	(17,202)
Total Equity	(35,283)	(34,680)

The above Unaudited Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 SEP 2016 Accumulated Consolidated $'000 Non-controlling

Issued capital losses Reserves Interests Total equity

For the nine months ended 30 Sep 2016

Balance at 1 Jan 2016	215,516 (241,812) 8,818 (17,202) (34,680)
Loss for the period	- (11,860) - (1,321) (13,181)
Other comprehensive income	- - - - -
Total comprehensive loss for the period	- (11,860) - (1,321) (13,181)
Shares issued during the period	12,569 - - - 12,569
Share based payments	- - 9 - 9
Balance at 30 Sep 2016	228,085 (253,672) 8,827 (18,523) (35,283)

For the nine months ended 30 Sep 2015

Balance at 1 Jan 2015	184,232 (150,568) 9,579 (6,753) 36,490
Loss for the period	- (41,493) - (4,704) (46,197)
Other comprehensive income	- - - - -
Total comprehensive loss for the period	- (41,493) - (4,704) (46,197)
Shares issued during the period	17,387 - - - 17,387
Share based payments	- - (545) - (545)
Balance at 30 Sep 2015	201,619 (192,061) 9,034 (11,457) 7,135

The above Unaudited Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes

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