Minbos Resources : Half Year Accounts-31December2016

Interim Financial Report‌‌‌

For the half-year ended 31 December 2016

ABN 93 141 175 493

Contents

Corporate Directory	3
Directors' Report	4
Auditor's Independence Declaration	10
Consolidated Statement of Profit or Loss and Other Comprehensive Income	11
Consolidated Statement of Financial Position	12
Consolidated Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14
Notes to the Consolidated Financial Statements	15
Directors' Declaration	21
Independent Auditor's Review Report	22

Corporate Directory

Directors & Officers	Bankers
Mr Peter Wall - Non-Executive Chairman	National Australia Bank
Mr Damian Black - Non-Executive Director	West Perth Business Banking Centre
Mr Domingos Catulichi - Non-Executive Director	Level 1, 1238 Hay Street
Mr William Oliver - Non-Executive Director	West Perth WA 6005
Ms Dganit Baldar - Non-Executive Director	Website: www.nab.com.au
Mr Lindsay Reed - Chief Executive Officer
Mr Stef Weber - Chief Financial Officer & Company Secretary	Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Registered Office	Subiaco WA 6008
Suite 1, 245 Churchill Avenue	Website: www.bdo.com.au
Subiaco WA 6008
T: [phone]	Share Registry
F: [phone]	Automic Registry Services
E-mail: [e-mail]	Level 2, 267 St Georges Terrace
Website: www.minbos.com	Perth WA 6000
Website: www.automic.com.au
Principal Place of Business
Suite 1, 245 Churchill Avenue	Solicitors
Subiaco WA 6008	Steinepreis Paganin
Level 4, The Read Buildings
PO Box 162	16 Miligan street
Subiaco WA 6904	Perth WA 6000
Website: www.steinpag.com.au
Domicile and Country of Incorporation
Australia	Securities Exchange
Australian Securities Exchange Limited (ASX)
Home Exchange - Perth
Australian Company Number	ASX Code - MNB (Ordinary Shares)
ACN 141 175 493
Australian Business Number
ABN 93 141 175 493

Directors' Report

The Directors submit their half year report of the 'Consolidated Entity' or 'Group', being Minbos Resources Limited ('Minbos' or 'Company') and its Controlled entities, for the half year ended 31 December 2016 ('Period').

1. BOARD OF DIRECTORS

   The Directors of the Company at any time during or since the end of the Period are as follows.

   Directors	Position	Appointment
   Peter Wall	Non-Executive Chairman	21/02/2014
   Damian Black	Non-Executive Director	21/02/2014
   Domingos Catulichi	Non-Executive Director	20/07/2010
   William Oliver	Non-Executive Director	02/09/2013
   Dganit Baldar	Non-Executive Director	18/03/2016

2. REVIEW OF OPERATIONS

1. GROUP OVERVIEW

   Minbos Resources Limited is an ASX-listed exploration and development company focused on phosphate ore within the Cabinda Province of Angola. Through its subsidiaries and joint ventures, the Company is exploring over 200,000ha of highly prospective ground hosting phosphate bearing sediments. Minbos is currently focusing on the development of the high grade Cacata deposit that forms part of the Cabinda Project.

   Minbos announced a merger with joint venture partner Petril Phosphates Ltd(Petril) in December 2016. On completion of the merger Minbos will own three 3 phosphates projects in Angola. In addition to then holding 100% of the Cabinda Project, the Company will also add to its portfolio the Lucunga and Pedro de Feitico projects in the Zaire Province of Northern Angola.

   The Company's strategy is to specifically target the exploration and development of low cost fertiliser-based commodities in order to tap into the growing global demand for fertilisers. Phosphate is an essential component in certain agricultural fertilisers, with the market supported by the increasing global demand for food and bio-fuel products. For more information, visit www.minbos.com.

2. HIGHLIGHTS & SIGNIFICANT CHANGES IN STATE OF AFFAIRS

The highlights and significant changes in state of affairs during and subsequent to the end of the half year include:

Merger with Angolan JV Partner - On completion of the merger with Petril, Minbos will own 100% of the Cabinda Project and also two other phosphate projects in Angola - a majority interest in the Lucunga project which is a joint venture with minority partner Haifa Chemicals and Pedro de Feitico (100%). Since announcing the transaction in early December the Company has substantially advanced the binding definitive agreement, due diligence and the independent export report. Exercise of options raises $3.85 million - Minbos' largest shareholder Green Services Innovation exercised their 385 million options in December at 1cent per option, leading to proceeds of $3.85 million. The exercise option price represented a 61% premium to the 20 day VWAP at time of exercise. In terms of the merger agreement, Petril shareholders can match these exercised options by subscribing for new shares at an issue price of 1 cent per share after completion of the merger. Bankable Feasibility Study (BFS) for Cabinda Project - During the period under review Minbos continued to progress Stage 1 of the BFS for the Cabinda Project. Stage 1 requires the completion of a trade-off study to select the optimal beneficiation route for the Cabinda Project.