Brockman Mining : ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 30 JUNE 2016

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BROCKMAN MINING LIMITED

布 萊 克 萬 礦 業 有 限 公 司 *

(incorporated in Bermuda with limited liability)

(SEHK Stock Code: 159) (ASX Stock Code: BCK) ANNUAL RESULTS ANNOUNCEMENT FOR THE yEAR ENDED 30 JUNE 2016

The board of directors (the "Board") of Brockman Mining Limited (the "Company") announces the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 30 June 2016, together with the comparative figures for the year ended 30 June 2015.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2016

year ended 30 June

Note	2016 HK$'000	2015 HK$'000
Revenue	4	11,590	36,525
Cost of sales	10	(16,918)	(38,497)
Gross loss	(5,328)	(1,972)
Other income	6	1,949	940
Other losses, net	7	(18,182)	(6,878)
Selling and administrative expenses	10	(36,794)	(73,479)
Exploration and evaluation expenses	10	(19,869)	(76,560)
Impairment losses	8	(678,391)	(1,441,618)
Operating loss	(756,615)	(1,599,567)
Finance income	356	1,014
Finance costs	(895)	-
Finance (costs)/income, net	9	(539)	1,014
Share of losses of joint ventures	(909)	(5,031)
Loss before income tax	(758,063)	(1,603,584)
Income tax credit	11	130,905	367,036
Loss for the year	(627,158)	(1,236,548)
* For identification purpose only

year ended 30 June

Note	2016	2015
HK$'000	HK$'000

Other comprehensive loss:

Item that may be reclassified to profit or loss

Exchange differences arising on translation of foreign

operations	(39,479)	(380,776)
Other comprehensive loss for the year	(39,479)	(380,776)
Total comprehensive loss for the year	(666,637)	(1,617,324)
Loss for the year attributable to equity holders of the Company	(627,158)	(1,236,548)

Total comprehensive loss attributable to equity holders of the Company (666,637) (1,617,324) Loss per share attributable to the equity holders of the

Company during the year Basic loss per share	13	HK cents (7.48)	HK cents (14.75)
Diluted loss per share	13	(7.48)	(14.75)

CONSOLIDATED BALANCE SHEET As at 30 June 2016
Note	As at 30 June 2016 2015 HK$'000 HK$'000
Non-current assets Mining properties	14	797,807 1,504,573
Property, plant and equipment	653 27,815
Interests in joint ventures	242 288
Other non-current assets	273 14,377
798,975 1,547,053
Current assets Inventories	- 4,274
Other receivables, deposits and prepayments	2,030 5,480
Amounts due from related parties	2,176 2,358
Cash and cash equivalents	32,772 98,297
36,978 110,409
Total assets	835,953 1,657,462
Equity Share capital	16	838,198 838,198
Reserves	(350,781) 315,607
Total equity	487,417 1,153,805
Non-current liabilities Other payables	25,540 26,995
Deferred income tax liabilities Borrowings Provisions	237,521 381,510 8,085 - 1,065 940
272,211 409,445

Current liabilities

Trade payables	15	10,872	10,201
Other payables and accrued charges	64,208	83,842
Amounts due to related parties	1,245	169
76,325	94,212
Total liabilities	348,536	503,657
Total equity and liabilities	835,953	1,657,462

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION

   Brockman Mining Limited (the "Company") and its subsidiaries (collectively, the "Group") principally engage in the acquisition, exploration and towards future development of iron ore project in Australia; and in the exploitation, processing and sales of mineral resources, including copper ore concentrates and other mineral ore products in the People's Republic of China ("PRC").

   The Company is a public limited company incorporated in Bermuda as an exempted company with limited liability and its shares are listed on The Stock Exchange of Hong Kong Limited (the "SEHK") and Australian Securities Exchange (the "ASX"). The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.

   These consolidated financial statements are presented in thousands of Hong Kong dollars ("HK$"), unless otherwise stated.

2. BASIS OF PREPARATION

   The consolidated financial statements of Brockman Mining Limited have been prepared in accordance with all applicable International Financial Reporting Standards ("IFRS"). The consolidated financial statements have been prepared under the historical cost convention.

   The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies.
3. Going concern basis

For the year ended 30 June 2016, the Group recorded a net loss attributable to equity holders of the Company of HK$627,158,000 and had operating cash outflows of HK$45,147,000. The loss for the year was primarily attributable to the impairment losses recognsied on the mining rights in the PRC as well as mining properties in Australia as a result of sustained weakness noted in both copper and iron ore prices. As at 30 June 2016, the Group's current liabilities exceeded its current assets by HK$39,347,000, and its cash and cash equivalents was reduced from HK$98,297,000 as at 30 June 2015 to HK$32,772,000.

For the year ended 30 June 2016, all of the Group's revenue were derived from its sales of copper ore concentrates produced from its copper mine in PRC for which the production was put on halt since January 2016. On 1 September 2016, the Group announced that in light of the sustained copper price weakness and the potential increase in capital expenditure to meet the new local requirements for environmental protection in the PRC, the directors resolved that it will no longer finance the continuing development of its copper mine in the PRC.

The Group intends to focus its resources on developing its core iron ore mining projects in Western Australia (the "Marillana project"), which is currently still at the exploration and evaluation stage. Before commencement of commercial production of the Marillana project, the Group would require significant amounts of financing for its development which are currently yet to be secured.