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RNI NL AND ITS CONTROLLED ENTITIES ABN 77 085 806 284 34 BAGOT ROAD SUBIACO WESTERN AUSTRALIA 6008 PO BOX 298 WEST PERTH WA 6872 T +61 8 9489 9200 F +61 8 9489 9201 E [email protected]

INTERIM CONSOLIDATED FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

ASX Code: RNI

INTERIM CONSOLIDATED FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014 CORPORATE INFORMATION

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RNI NL AND ITS CONTROLLED ENTITIES

ABN 77 085 806 284

Corporate Information 1

Directors’ Report 2

Auditor Independence Declaration 10

Interim Statement of Profit or Loss and Other Comprehensive Income 11

Interim Statement of Financial Position 12

Interim Statement of Changes in Equity 13

Interim Statement of Cash Flows 14

Notes to the Interim Financial Statements 15

Directors’ Declaration 19

Independent Auditor’s Review Report 20

Competent Persons Statement 22

Classified Gold Resources 23

Schedule of Mining Tenements 24

ABN 77 085 806 284 Directors Royce R McAuslane Managing Director Miles A Kennedy Non-Executive Chairman Albert G Thamm Non-Executive Director Thomas J Mann Non-Executive Director Company Secretary Mark A Clements Registered Office and Principal Place of Business 34 Bagot Road Subiaco WA 6008 Tel: +61 8 9489 9200 Fax: +61 8 9489 9201 Email: [email protected] Web: www.rninl.com.au

Share Registry Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153 Tel: +61 8 9315 2333 Fax: +61 8 9315 2233 Email: [email protected] Auditors Somes Cooke Level 2, 35 Outram Street West Perth WA 6005 Home Exchange Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade Perth WA 6000 ASX Code Ordinary fully paid shares: RNI

INTERIM CONSOLIDATED FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014 DIRECTORS’ REPORT

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ABN 77 085 806 284

The directors present their report together with the interim financial report of RNI NL (formerly Resource and Investment NL) and its controlled entities for the six months ended 31 December 2014 and the independent auditor’s review report thereon.

1. Directors

The directors of the Company at any time during or since the end of the interim period are set out below. Directors were in office for the entire period unless otherwise stated.

Name Position Changes Mr Royce R McAuslane Managing Director Appointed 11 November 2014 Mr Miles A Kennedy Non-Executive Chairman Non-Executive with effect from

28 November 2014 Mr Albert G Thamm Non-Executive Director Non-Executive with effect from

28 November 2014 Mr Thomas J Mann Non-Executive Director Mr John R Hutton Non-Executive Director Resigned 5 November 2014

2. Review and results of operations

RNI NL continues to advance its project development and exploration programs in Western Australia’s Bryah Basin region.

RNI is pursuing a low-cost and near-term gold production pathway at the 100% owned Grosvenor Gold Project, utilising the Company’s existing 1Mtpa gold processing plant (Figure 2), ~2Moz Grosvenor and Peak Hill gold resource base and supporting infrastructure.

The Company also continues to develop a strong pipeline of priority copper-gold drilling targets within its dominant Bryah Basin tenement holding, which increased to 1,940km2 as at 31 December 2014 (Figure 1).

This tenement package includes the Forrest copper-gold discovery and other targets along approximately 120 strike km of prospective volcanic hosted massive sulphide (VHMS) target horizons.

Figure 1: RNI’s dominant 1,940km2 Bryah Basin tenure and project locations


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GROSVENOR GOLD PROJECT - REVISED MODELLING

As announced to the ASX on 23 January 2015, RNI updated its financial modelling for the Grosvenor Gold Project to reflect the stronger prevailing $A gold price of $A1,620/oz.

The revised modelling produced significant improvements in the economics of the project over the previous financial models released to the ASX on 22 September 2014.

The updated results are shown in Table 1. In particular, the new modelling showed a 95% increase in free cash flow from the previous Upside Case model to $172 million.

Significantly, the revised modelling does not account for cost reductions which may be achieved from lower diesel prices. A lower diesel price has a significant cost impact on pre-strip mining costs and ongoing operating costs.

Figure 2: RNI’s 100% owned 1Mtpa Grosvenor gold plant

Key Metrics

Revised

Base Case

Revised

Upside Case

Material Mined Kt 6,036 10,420

Diluted Head Grade g/t Au 1.77 1.80

Recovered Gold Koz 318 510

Mine Life Years 4.75 6.1

Revenue $Am 516 825

Expenditure $Am -424 -653

Free Cash Flow $Am 92 172

Debt Payback Period Years 2.25 3.25

Table 1: Revised modelling at prevailing $A1,620/oz gold price


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Notes: All scenarios are consistent with those released by RNI to the ASX on 22 September 2014 but have been remodelled using the prevailing $A gold price of $A1,620/oz. Please see ASX announcement of 22 September 2014 when all modelling information was supplied.

Debt payback period assumes $45 million debt.

Base Case is based on JORC 2012 reserves only. Upside Case includes additional resources from Peak Hill heap leach and additional underground resources from Grosvenor. These are concept studies on JORC 2004 and 2012 resources (See ASX announcement 22 September 2014), which include mining dilution and metallurgical recovery within optimised pit shells.

PROJECT FINANCING

RNI remains in advanced discussions with multiple parties for project financing to bring the Grosvenor Gold Project into production.

The pre-production capital requirement to commence production at Grosvenor is estimated to be $38.2 million, which includes a $2 million contingency.

The higher $A gold price and the improved market sentiment towards gold mining companies has resulted in an increase in the number of parties participating in the project financing process.

RNI has maintained all existing mining-related permits and licences to enable the rapid development of the Grosvenor Gold Project. The Company believes mining can commence at Grosvenor within nine months of project financing being secured.

As announced to the ASX on 5 February 2015, RNI has reached agreement with the Company’s bridging finance provider, Taurus Resources No 2 Fund, to extend the repayment date of the Company’s existing debt facility by two months to 7 April 2015.

EXPLORATION

RNI continues to advance a series of copper-gold targets across the Company’s dominant 1,940km2 Bryah Basin tenement holding (Figure 1).

Work undertaken in H2 2014 included programs of fixed loop electromagnetic (FLEM) surveys at the Morck’s Well Project and the Beatty Park prospect within the Cashmans Project. Also, reverse circulation (RC) drilling was conducted at the T10 Prospect at Cashmans to test an FLEM target.

These programs are in addition to the ongoing planning for the next stage of exploration at the Forrest copper-gold discovery and the broader 12km VHMS zone which extends north from Forrest.

Forrest Copper-Gold Discovery (RNI 80%, Fe Ltd 20% (ASX: FEL))

Forrest is located within the Grosvenor Project approximately 12km from the Grosvenor gold plant and 24km from the Horseshoe Lights VMS mine (Figures 1 and 3). It is at the southern end of a 12km VHMS mineralised trend which hosts a series of high priority targets including Big Billy (drilling - 5m @1.02% Cu) and Wodger (drill chip samples -13.8% Cu and 5.7% Cu).

This trend has had little or no previous exploration for copper-gold mineralisation.

RNI made the Forrest copper-gold discovery in H1 2014, with all subsequent holes drilled intersecting significant copper mineralisation. The results from the diamond drilling at Forrest are summarised in Table 2, along with previous RC results.

The results demonstrate the extensive continuity of the copper mineralisation at Forrest, with the mineralisation (oxide, transitional and primary) so far defined over a strike length of 300m and 350m down dip plunge. The mineralisation at Forrest remains totally open down-plunge.

The most recent holes drilled – FGDD006 and FGDD004b – both intersected zones of stringer copper sulphides (chalcopyrite and minor bornite), grading up to 4% Cu.


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Figure 3: Priority 12km VHMS trend including Forrest copper-gold discovery

Significantly, the copper mineralisation at Forrest also contains the pathfinder elements (bismuth, tellurium, silver and barium) consistent with a close VHMS source, though it is now clear that that mineralisation is structurally modified and largely remobilised. The interpretation is that the currently defined copper mineralisation represents a fault controlled remobilisation that is likely to be proximal to a primary VHMS source.

Planning is underway for the next stage of drilling at the broader 12km VHMS corridor which includes Forrest (Figure 3).

A ~1,000m RC infill drilling program is also proposed to complete a JORC-compliant resource over the Forrest oxide gold cap to support a Mining Licence application.


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Hole No. Result

FGDD001 9.1m @ 5.27% Cu

FGDD002 5.15m @ 4.0% Cu

FGDD003 16.2m @ 1.8% Cu (including 9.6m @ 2.6% Cu)

FGDD004b [email protected]% Cu

0.80m @ 4.0% Cu

0.45m @2.20% Cu

FGDD006 7.75m @ 1.2% Cu (including 2.65m @ 2.2% Cu)

FGRC002 8m @ 1.01% Cu

FGRC003 3m @ 1.03% Cu

FGRC004 11m @ 1.04% Cu

FGRC005 5m @ 1.82% Cu

FGRC006 4m @ 2.11% Cu

FPRC007 9m @ 2.52% Cu

FPRC011 11m @ 1.0% Cu

FPRC012 11m @ 1.0% Cu (including 5m @ 1.61% Cu)

FGRC016 7m @ 1.21% Cu

Table 2: Drilling results from the Forrest copper-gold discovery

Morck’s Well Project (RNI 80%; Fe Ltd 20% (ASX: FEL))

Morck’s Well is located in the eastern part of the Bryah Basin covering a large area of the prospective Narracoota Volcanic Formation (~40km strike length). The northern boundary of Morck’s Well is contiguous with Sandfire Resources NL’s DeGrussa-Doolgunna exploration property (Figures 1 and 4).

Morck’s Well has been the subject of a program of high quality, systematic regional data collection designed to explore for copper-gold and gold deposits. This is the first time comprehensive geological, geochemical and geophysical data has been collected over this extensive area. Key datasets collected include:

· Detailed regional gravity survey

· Re-evaluation and targeting of a previously flown versatile time electromagnetic (VTEM) survey

· Collection of geochemical data

· Compilation of the available (limited) open file data; and

· Most recently the completion of three detailed FLEM surveys to better define targets generated in the VTEM

data


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RNI identified three late-time conductors at Morck’s Well from VTEM survey data (Figure 4). The Company completed ground-based FLEM surveys over each of these VTEM targets to confirm and better define the anomalies with the aim of generating drilling targets.

Figure 4: VTEM targets at the Morck’s Well Project

The results of the FLEM surveys on the three original targets were:

a) Target 3 - Jacques Copper-Gold Prospect

The FLEM survey confirmed the original anomaly identified in the VTEM data. This has since been modelled as a flat lying feature at a depth of 200m. In addition, a separate conductive zone to the north-west of the original feature was identified. This zone is modelled at a relatively shallow depth (50-75m) as either a sub-vertical or flat lying body.

Significantly, the target zone is located to the immediate south of a series of previous high-grade gold intersections.

The Jacques prospect has developed into a significant exploration target for RNI. The nature of the highly-anomalous copper and gold drilling results, in broad association with the FLEM anomalies, clearly requires additional exploration.

b) Target 2 - Mt Leake Prospect

The FLEM survey confirmed and better constrained the original anomaly identified in the VTEM data. This is now modelled as a moderately south dipping body at a depth of 200m.

The modelling to date has identified a well-defined and relatively localised target that can be tested with a single 300m drill hole.


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c) Target 1 - Central Morck’s

The FLEM survey at this location downgraded the original Central Morck’s target. It is likely that the VTEM anomaly represents a paleodrainage feature. As such, no further work is planned at this target.

T10 – Cashmans Project (RNI earning 70% from Northern Star Resources Ltd (ASX: NST))

The T10 Prospect is part of the Cheroona JV within the Cashmans Project (Figure 1).

T10 is located ~1.5km south of the Orient Prospect, where strong zones of VHMS-style mineralisation, including rock chip samples of up to 12.8% copper, have been collected. T10 is interpreted to be located on a folded repeat of this prospective VHMS contact.

RNI completed a three-hole RC drilling program over both the FLEM conductor and beneath the gossan position. Results of the drilling program are:

· Hole CTRC001 drilled to test the FLEM conductor intersected two magnetite enriched interflow chert horizons in the targeted VHMS horizon. The chert units are considered to be elevated in copper and zinc and are interpreted to be part of a distal VHMS system.

· Holes CGRC001 and CGRC002 were drilled beneath the gossan zone and intersected a sequence of mafic volcanics and dolerite intrusive rocks. The assays returned low-level base metal values (copper and zinc), most likely indicating surficial upgrading.

The intersection of the interflow chert horizon in the target zone at T10 confirms the presence of a horizon that has been subject to exhalative VHMS processes and potentially represents a distal position from a productive mineralised system.

Beatty Park Prospect – Cashmans Project

The Beatty Park prospect is also part of the Cheroona JV within the Cashmans Project (Figure 1). An 11km ground-based FLEM survey conducted at Beatty Park identified a late-time conductor, which represents a priority drilling target. The FLEM survey was carried out as a follow-up to an airborne VTEM survey which generated the Beatty Park target.

Beatty Park is a large (~900m x ~400m) and well-defined conductor approximately 200m below surface at its shallowest point.

RNI plans to drill the centre of the Beatty Park conductor with a ~450m hole, subject to heritage approvals.

CORPORATE

During the period, RNI announced the appointment of Royce McAuslane as Managing Director following a review of the Board’s executive structure (See ASX announcement 11 November 2014). As part of the executive review, Executive Chairman Miles Kennedy was appointed Non-Executive Chairman and Executive Technical Director Albert Thamm was appointed Non-Executive Director.

As announced to the ASX on 15 September 2014, shareholders approved a change in the Company’s name to RNI NL.

As announced to the ASX on 14 October 2014, RNI raised $4 million, less costs, through a placement of 40 million fully paid ordinary shares with attaching unlisted 15c options expiring 20 October 2015, on a one for two basis.

As announced to the ASX on 22 December 2014, RNI raised $1.2 million, less costs, for working capital through a placement of 16 million fully paid ordinary shares at 7.5c per share and 16 million unlisted 15c options, expiring 20 October 2015, at no additional cost.

On 30 December 2014, RNI announced it had issued 150,000 fully paid ordinary shares to Taurus Funds Management Pty Ltd as consideration for the deferral of quarterly interest due on the Company’s debt facility.

During the period RNI issued 12.5 million unlisted 26c options, expiring 8 October 2019 under the terms and conditions of the Company’s share option plan approved by shareholders at the annual general meeting held on 21 November 2013.

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

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ABN 77 085 806 284

Note 31 Dec 2014

$ 31 Dec 2013

$

Finance income 22,534 62,997

Administrative expenses (1,789,592) (1,444,957)

Finance costs (2,477,943) (821,375)

Share based payments expense 9 (1,598,916) (711,579)

Write-off of exploration assets 6 (311,466) -

Loss before income tax (6,155,383) (2,914,914)

Income tax benefit 553,755 611,874

Loss from continuing operations (5,601,628) (2,303,040)

Other comprehensive income for the period, net of tax - -

Total comprehensive income for the period (5,601,628) (2,303,040)

Loss per share

Basic and diluted loss per share attributable to ordinary equity holders

(0.025) (0.015)

The interim consolidated statement of comprehensive income is to be read in conjunction with the accompanying notes.

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

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Note 31 Dec 2014

$ 30 Jun 2014

$

ASSETS

Cash and cash equivalents 558,575 4,508,176

Trade and other receivables 640,691 186,663

Total current assets 1,199,266 4,694,839

Financial assets 10,488 10,488

Inventory 1,165,698 1,120,094

Property, plant and equipment 5 8,509,730 8,596,208

Exploration, evaluation and development assets 6 41,713,973 38,010,107

Total non-current assets 51,399,889 47,736,897

TOTAL ASSETS 52,599,155 52,431,736

LIABILITIES

Trade and other payables 2,971,132 1,640,321

Borrowings 7 17,458,077 19,500,000

Current provisions 268,851 304,608

Total current liabilities 20,698,060 21,444,929

Provisions 13,116,063 13,116,063

Total non-current liabilities 13,116,063 13,116,063

TOTAL LIABILITIES 33,814,123 34,560,992

NET ASSETS 18,785,032 17,870,744

EQUITY

Issued capital 8 101,617,114 96,872,788

Reserves 9 3,356,163 1,584,573

Accumulated losses (86,188,245) (80,586,617)

TOTAL EQUITY 18,785,032 17,870,744

The interim consolidated statement of financial position is to be read in conjunction with the accompanying notes.

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

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Note

Issued capital

$

Accumulated losses

$

Share based

payments reserve

$

Total equity

$

For the six months ended 31 December

Opening balance at 1 July 2014 96,872,788 (80,586,617) 1,584,573 17,870,744

Total comprehensive income for the period

Loss for the period - (5,601,628) - (5,601,628)

Total comprehensive income for the period - (5,601,628) - (5,601,628)

Transactions with owners and other

Shares issued 8 5,211,250 - - 5,211,250

Share issue costs 8 (466,924) - - (466,924)

Share based payments 9 - - 1,771,590 1,771,590

Balance as at 31 December 2014 101,617,114 (86,188,245) 3,356,163 18,785,032

For the six months ended 31 December

Opening balance at 1 July 2013 86,964,996 (75,016,327) 2,864,684 14,813,353

Total comprehensive income for the period

Loss for the period - (2,303,040) - (2,303,040)

Total comprehensive income for the period - (2,303,040) - (2,303,040)

Transactions with owners and other

Shares issued 270,000 - - 270,000

Exercise of options 2 - - 2

Share based payments - - 794,898 794,898

Expiry of options - 1,127,310 (1,127,310) -

Balance as at 31 December 2013 87,234,998 (76,192,057) 2,532,272 13,575,213

The interim consolidated statement of changes in equity is to be read in conjunction with the accompanying notes

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

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31 Dec 2014 $

31 Dec 2013 $

Cash flows from operating activities

Cash receipts from customers - 611,874

Cash paid to suppliers and employees (1,360,746) (1,186,299)

Interest paid (929,066) (821,288)

Interest received 22,281 98,870

Net cash (outflow) from operating activities (2,267,531) (1,296,843)

Cash flows from investing activities

Payments for exploration (2,670,768) (2,467,204)

Payments for evaluation (533,220) (1,326,023)

Payments for project development (811,344) (1,044,378)

Bonds released 34,000 1,788,000

Proceeds on disposal of vehicles 32,218 -

Reduction / (increase) in inventory 6,975 (31,499)

Payments for property, plant and equipment (22,931) (56,269)

Net cash (outflow) from investing activities (3,965,070) (3,137,373)

Cash flows from financing activities

Proceeds from issue of shares 5,200,000 2

Share issue costs (283,000) -

Repayment of borrowings (2,800,000) -

Proceeds from borrowings 166,000 5,000,000

Net cash inflow from financing activities 2,283,000 5,000,002

Net (decrease) / increase in cash and cash equivalents (3,949,601) 565,786

Cash and cash equivalents at the beginning of the period 4,508,176 2,415,511

Cash and cash equivalents at the end of the period 558,575 2,981,297

The interim consolidated statement of cash flows is to be read in conjunction with the accompanying notes.

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014

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1 Basis of preparation

RNI NL (the Company or RNI) is a company domiciled and incorporated in Australia. The address of the Company’s registered office is 34 Bagot Road, Subiaco WA 6008. The interim consolidated financial report of the Company as at and for the six months ended 31 December 2014 comprised the Company and its wholly owned subsidiary (together referred to as the “Group”).

The interim consolidated report has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001. The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the entity as the full financial report. It is recommended that the interim consolidated financial report be read in conjunction with the annual report for the year ended 30 June 2014 and considered together with any public announcements made by the Company during the six months ended 31 December 2014 in accordance with the continuous disclosure obligations of the ASX listing rules. The annual report of the Company as at and for the year ended 30 June 2014 is available on request from the Company’s registered office or at www.rninl.com.au.

This interim consolidated financial report was approved by the Board of Directors on 12th March 2015.

Going Concern

This report has been prepared on the going concern basis, which contemplates the continuation of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

The directors recognise that the ability of the Group to continue as a going concern and to pay its debts as and when they all due is dependent on the ability of the Group to secure additional funding through either the issue of further shares and or options.

The directors have reviewed the business outlook and are of the opinion that the use of the going concern basis of accounting is appropriate as they believe the Group will achieve the matters set out above. As such, the directors believe that they will continue to be successful in securing additional funds as and when the need to raise working capital arises.

Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different from those stated in the financial report.

The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that may be necessary should the Group be unable to continue as a going concern.

2 Accounting policies

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

The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these Accounting standards and Interpretations did not have any significant impact on the financial performance or position of the Group.

Any new, revised or amending Accounting Standards of Interpretations that are not yet mandatory have not been adopted early.

3 Estimates

The preparation of interim financial reports requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this interim financial report, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual financial report as at and for the year ended 30 June 2014.


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4 Operating segments

The Group operates within one reportable segment, being the exploration, evaluation and development of mineral tenements in Western Australia. As the Group is focused on exploration and development, the Board monitors the Group based on actual versus budgeted expenditure incurred by area of interest. This internal reporting framework is the most relevant to assist the Board with making decisions regarding the Group and its ongoing exploration activities, while also taking into consideration the results of exploration work that has been performed to date.

5 Property, plant and equipment 5 $

Carrying amount at 1 July 2014 8,596,208

Assets acquired 22,931

Disposal of asset (13,180)

Depreciation expense (96,229)

Carrying amount at 31 December 2014 8,509,730

6 Exploration, evaluation and development assets

Exploration Evaluation

Project Development Total

$ $ $ $

Carrying amount at 1 July 2014 12,095,059 21,988,226 3,926,822 38,010,107

Exploration, evaluation and project development costs incurred during the period

2,670,768 533,220 811,344 4,015,332

Impairment of exploration assets (311,466) - - (311,466)

Carrying amount at 31 December 2014 14,454,361 22,521,446 4,738,166 41,713,973

The impairment of exploration assets relates to tenements which were due to expire or where surrendered.

7 Borrowings

$ Taurus Fund Management Pty Ltd interim debt facility 17,292,077 Other short term debt 166,000

17,458,077

Grosvenor Gold Pty Ltd initially entered in a facility agreement to secure access to funding. On 29 January 2014, the facility was extended to 7 February 2015 and increased to $19,500,000. On 23 October 2014 a repayment of $2,800,000 was made. On 31 December 2014 the interest for that quarter of $592,077 was capitalised. On 5 February 2015 the facility was extended by a further two months to 7 April 2015. The following is a summary or the current conditions applicable to the facility:

· All interest and fees are to be capitalised with effect from 31 December 2014 · The current interest rate is 15% · The loan is repayable in full on 7 April 2015

Other short term debt consists of unsecured funds advanced by MA Kennedy and DA Fullarton which were fully repaid during February 2015.


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8 Issued capital

Movement in ordinary shares

Number $ Issued capital at 1 July 2014 426,055,957 96,872,788 Issue of shares 56,150,000 5,211,250 Share issue costs - (466,924) Issued capital at 31 December 2014 482,205,957 101,617,114

Movement in shares under option

Options expiring on or before

Exercise Price

On issue 1 Jul 14

Issued

Exercised

Expired

On issue 31 Dec 14

27 Mar 2015 $0.4375 3,597,621 - - - 3,597,621

11 Nov 2016 $0.20 2,100,000 - - - 2,100,000

21 Nov 2016 $0.12 7,000,000 - - - 7,000,000

31 Jan 2017 $0.35 2,100,000 - - - 2,100,000

31 Jan 2017 $0.095 3,000,000 - - - 3,000,000

13 Mar 2017 $0.35 4,000,000 - - - 4,000,000

9 Nov 2017 $0.60 1,500,000 - - - 1,500,000

3 Oct 2018 $0.12 7,400,000 - - - 7,400,000

15 Sep 2017 $0.25 - 3,000,000 - - 3,000,000

8 Oct 2019 $0.26 - 12,500,000 - - 12,500,000

20 Oct 2015 $0.15 - 42,500,000 - - 42,500,000

30,697,621 58,000,000 - - 88,697,621

9 Reserves

$

Reserves at 1 July 2014 1,584,573

Fair value of options issued and expensed to profit and loss (i) 1,598,916

Fair value of options issued and expensed to share issue costs (ii) 172,674

Reserves at 31 December 2014 3,356,163

(i) During the six month period ended 31 December 2014, the Company issued the following unlisted options which were expensed as share based payments:

· 3,000,000 unlisted options to Directors, vesting on 15 September 2014 following shareholder approval at the General Meeting held 15 September 2014. The options are to subscribe for ordinary fully paid shares in the Company at any time on or before 15 September 2017 at an exercise price of $0.25 each.

· 12,000,000 unlisted options to employees, vesting on 9 October 2014. The options are to subscribe for ordinary fully paid shares in the Company at any time on or before 8 October 2019 at an exercise price of $0.26 each.

· 500,000 unlisted options to employees, vesting on 5 December 2014. The options are to subscribe for ordinary fully paid shares in the Company at any time on or before 8 October 2019 at an exercise price of $0.26 each

(ii) During the six month period ended 31 December 2014, the Company issued the following unlisted options which were expensed as share issue costs:

· The issue of 5,000,000 unlisted $0.15 options expiring 20 October 2015 pursuant to the placement as announced on 14 October 2014

· The issue of 1,500,000 unlisted $0.15 options expiring 20 October 2015 pursuant to the placement as announced on 22 December 2014.


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The fair value of the options issued was estimated at the date of grant using the Black-Scholes option pricing model. The following table sets out the assumptions made in determining the fair value of the options granted.

Options expiring 20 Oct 2015


Options expiring 15 Sep 2017



Grant date 5 Dec 2014 30 Dec 2014 15 Sep 2014 8 Oct 2014 5 Dec 2014 Dividend yield 0% 0% 0% 0% 0% Expected volatility 132% 132% 132% 132% 132% Risk-free interest rate 2.65% 2.65% 2.78% 2.65% 2.65% Option exercise price $0.15 $0.15 $0.25 $0.26 $0.26 Expected life (years) 0.87 0.80 3 5 5 Share price on date of grant

$0.087 $0.076 $0.185 $0.12 $0.087

10 Events subsequent to reporting date

Other than the following, the directors are not aware of any significant events since the end of the interim period.

On 23 January 2015 and 30 January 2015 the Company announced that it was in advanced discussions with multiple parties to secure the necessary project financing to bring the Grosvenor Gold Project into production.

On 30 January 2015 the Company announced improvements in the A$ gold price had signification improved the economics of the Project over the previous models which were released to the ASX on 22 September 2014. In particular resulting in an increase in free cash flow.

On 5 February 2015 the Company announced that agreement had been reached to extend the repayment date of the bridging debt facility with Taurus No 2 Fund by two months to 7 April 2015 in order to enable RNI to conclude project financing and potential joint venture discussions for the 100% owned Grosvenor Gold Project.

On 16 February 2015 the Company announced the completion of $1.25 million placement with the issue of 18,340,588 fully paid ordinary shares at 6.8c per share and the issue of 9,170,294 unlisted 15c options expiring 19 February 2016.

COMPETENT PERSONS STATEMENT

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ABN 77 085 806 284

Competent Persons Statement

Information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation prepared and compiled by Peter Langworthy BSc (Hons.) MSc, who is a Member the Australasian Institute of Mining and Metallurgy. The information in this announcement that relates to exploration results has been previously disclosed under JORC Code 2012. Mr Langworthy is a consultant to RNI NL and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Langworthy consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Information in this announcement relates to mineral resources is based on and fairly represents information and supporting documentation prepared and compiled by Albert Thamm BSc (Hons) MSc, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy. Mr Thamm is a Director of RNI NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. The information in this announcement in relation to the material assumptions underpinning the production targets has been previously disclosed under JORC Code 2012. These assumptions continue to apply and have not materially changed. Mr Thamm consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

Forward Looking Statement

This statement has been prepared for RNI NL. This statement is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.

This report may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted.

This report does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of RNI. Actual values, results, outcomes or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing RNI does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based.

CLASSIFIED GOLD RESOURCES

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Classified Gold Resources at the Grosvenor Project – February 2015

Summary of Project Resources, Resource Classification and metrics

Mineral Resource

Cut-off Tonnes

(kt)

Grade Tonnes

(kt)

Grade Tonnes

(kt)

Grade Tonnes

(kt)

Grade

Au Koz

Grade (Au g/t) (Au g/t) (Au g/t)

(Au g/t)

(g/t) Measured Indicated Inferred Total

Yarlarweelor 0.5 5498 1.6 1511 1.6 7,009 1.60 361

Starlight 1 1558 3 924 3.4 2,482 3.21 253

Starlight Hanging Wall

1 145 4.3 503 2.9 648 3.20 68

Twilight 1 1138 2.7 316 2.6 1,454 2.68 125

Ricks 1 232 1.9 63 2.1 295 1.94 19

Midnight 1 229 2.3 124 2.7 353 2.44 27

Dougies 1 99 3.1 123 2.9 222 2.99 21

Eldorado 1.5 134 1.5 12 1.8 146 1.52 7

Toms & Sams

1 42 1.64 1031 1.53 272 1.66 1,345 1.56 67

Horseshoe, Cassidy & Pod

0.5 2,012 1.96 315 2.11 419 1.85 2,746 1.96 173

Nathans 0.75 1081 1.9 1,081 1.90 67

Callies 0.5 2326 1.43 1527 1.1 3,854 1.30 161

Labouchere 1 278 1.7 534 1.8 812 1.77 45

Regent 0.6 328 1.4 328 1.40 14

TOTAL 2,054 12,983 7,737 22,775 1.93 1,408

Note: Tonnage and grade have been rounded, totals may not compute.

SCHEDULE OF MINING TENEMENTS

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Schedule of Mining Tenements as at 31 December 2014

Tenement Number

Registered Holder Date Granted Area Graticular blocks(bk) /

Hectares (ha)

Notes

Grosvenor Gold Project

E51/1033 Grosvenor Gold Pty Ltd 40% 22/09/2005 53bk 1,2

Jackson Minerals Pty Ltd 20%

PepinNini Robinson Range Pty Ltd 40%

E51/1053 Grosvenor Gold Pty Ltd 22/09/2005 35bk








E52/1641 Grosvenor Gold Pty Ltd Application

E52/1659 Grosvenor Gold Pty Ltd 80% 27/01/2004 13bk 1





















L52/102 Grosvenor Gold Pty Ltd 11/11/2008 9.00ha


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ABN 77 085 806 284

M52/5 Grosvenor Gold Pty Ltd 20/04/1983 464.85ha











P52/1147 Grosvenor Gold Pty Ltd 03/01/2007 130.00ha

P52/1160 Grosvenor Gold Pty Ltd 03/01/2007 133.00ha

P52/1493 Grosvenor Gold Pty Ltd Application

Peak Hill Project

E52/2237 Peak Hill Metals Pty Ltd 24/02/2009 4bk


E52/2471 Peak Hill Metals Pty Ltd 85% Wilson, Walter Scott 15%

16/10/2009 49bk 4


L52/2 Peak Hill Metals Pty Ltd 27/04/1983 3.68ha






M52/35 Peak Hill Metals Pty Ltd 16/01/1985 917.15ha




M52/801 Peak Hill Metals Pty Ltd 85% Horseshoe Gold Mine Pty Ltd 15%

19/05/2003 981.00ha 5

P52/1189 Peak Hill Metals Pty Ltd 85% Horseshoe Gold Mine Pty Ltd 15%

14/01/2009 186.00ha 5


14/01/2009 188.00ha 5


14/01/2009 189.00ha 5


14/01/2009 191.00ha 5


14/01/2009 155.00ha 5


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ABN 77 085 806 284

P52/1234 Peak Hill Metals Pty Ltd 14/01/2009 49.75ha

P52/1343 Peak Hill Metals Pty Ltd 85% Wilson, Walter Scott 15%

20/01/2010 137.25ha 4


20/01/2010 189.00ha 4


20/01/2010 162.00ha 4


20/01/2010 195.00ha 4


30/12/2011 22.15ha 4


30/12/2011 22.15ha 4


30/12/2011 81.93ha 4

Doolgunna Project

E52/2438 Ascidian Prospecting Pty Ltd 11/02/2010 7bk 6

Cheerona Project

E51/1391 Northern Star Resources Ltd 11/11/2010 35bk 7

E52/2509 Northern Star Resources Ltd 16/06/2011 6bk 7

Horseshoe West Project

E52/2595 RNI NL 09/09/2010 1bk

E52/2668 RNI NL 20/04/2011 1bk

E52/3005 RNI NL 17/12/2013 1bk

M52/251 RNI NL 11/03/1992 274.55ha

P52/1239 RNI NL 27/12/2007 156.00ha

P52/1248 RNI NL 12/06/2008 105.00ha

P52/1257 RNI NL 13/10/2008 106.00ha

P52/1259 RNI NL 19/01/2009 126.00ha

P52/1337 RNI NL 26/10/2009 37.75ha

P52/1338 RNI NL 26/10/2009 1.73ha

P52/1339 RNI NL 26/10/2009 9.71ha

P52/1340 RNI NL 26/10/2009 50.00ha

P52/1341 RNI NL 26/10/2009 200.00ha

P52/1383 RNI NL 02/09/2010 1.17ha

Horseshoe West Project (Mineral Rights Deed)

M52/1048 Auvex Horseshoe Pty Ltd 22/02/2011 797.00 ha 8


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ABN 77 085 806 284

Notes:

Grosvenor Gold Pty Ltd (GG) is a wholly owned subsidiary of RNI NL and Peak Hill Metals Pty Ltd (PHM) is a wholly owned subsidiary of Grosvenor Gold Pty Ltd. 1. Peak Hill Sale Agreement – GG 80%, Jackson Minerals Pty Ltd (JM) 20% and free carried to a decision

to mine. 2. Jackson Iron Ore JV Agreement – GG 40%, PepinNini Robinson Range Pty Ltd (PRR) 40%, JM 20% iron

ore with GG contributing 60% and JM free carried to a decision to mine. GG 80%, JM 20% all other minerals with JM free carried to a decision to mine

3. Robinson Range JV Agreement – GG 50%, PRR 50% iron ore with GG contributing 50%. GG 100% all other minerals.

4. Introduction Agreement – PHM 85%, Walter Scott Wilson (WSW) 15% and free carried to a decision to mine. WSW also holds the manganese rights.

5. Durack Joint Venture Agreement – PHM 85% and Horseshoe Gold Mine Pty Ltd 15% and free carried to a decision to mine.

6. Option to purchase. 7. Earning 51% JV interest 8. RNI NL gold mineral rights only

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