Nucoal Resources : Interim Report 31 December 2016

ASX Announcement 15 March 2017

Interim Report for the half-year ended 31 December 2016

NuCoal Resources Ltd (ASX: NCR) is pleased to announce the release of its Interim Report for the half-year ended 31 December 2016.

For and on behalf of NuCoal Resources Ltd.

Megan Etcell Company Secretary Tel: [phone]

Registered Office

Unit 8, 24 Garnett Road

Greenhills NSW 2323

T [phone]

F [phone]

E [e-mail]

www.nucoal.com.au

ASX:NCR • Share Information

Issued Shares: 768.6m

Board of Directors

Chairman: G. Galt Non Executive Director: G. Lewis Non Executive Director: J. Beecher Non Executive Director: M. Davies Company Secretary: M. Etcell

NuCoal Resources Limited

ABN 29 060 352 990

Interim report for the half-year ended 31 December 2016 NuCoal Resources Limited ABN 29 060 352 990 Interim report - 31 December 2016 Contents

Page

Directors' report 1

Interim financial report

Consolidated statement of comprehensive income 5

Consolidated statement of financial position 6

Consolidated statement of changes in equity 7

Consolidated statement of cash flows 8

Notes to the consolidated financial statements 9

Directors' declaration 13

Independent auditor's review report to the members 14

Corporate directory 16

This 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 annual report for the year ended 30 June 2016 and any announcements made by NuCoal Resources Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

NuCoal Resources Limited

Directors' Report 31 December 2016

Directors' report

Your Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of NuCoal Resources Limited (referred to hereafter as the Company) and the entities it controlled at the end of, or during, the half-year ended 31 December 2016.

Directors

The following persons were directors of NuCoal Resources Limited during the whole of the half-year up to the date of this report.

Gordon Galt	Glen Lewis
Non Executive Chairman	Non Executive Director (Managing Director until 5 March 2017)
James Beecher	Michael Davies
Non Executive Director	Non Executive Director

Financial Overview

The consolidated statement of comprehensive income shows a net loss from ordinary activities for the half-year of $1.03 million compared with a net loss from ordinary activities of $7.71 million for the half-year ended 31 December 2015.

Net cash inflows from operating, investing and financing activities for the half-year ended 31 December 2016 were $2.30 million compared to net cash outflows of $413 thousand for the half-year ended 31 December 2015.

Operational Highlights

Savoy Hill Coal Project (100%)

As previously notified, the Savoy Hill tenement, Exploration Licence 6812 (EL 6812) has been extended until 20 June 2018.

The Company has completed necessary exploration across the tenement to consider the longer term mining options for the project and has undertaken initial marketing analysis for a potential open-cut operation, supplying the nearby domestic power stations. Further work will be undertaken as required.

The carrying value of EL 6812 was reduced to nil as at 31 December 2015 as the Group was unable to determine a realisable estimate of the recoverable amount in accordance with AASB 136.

Dellworth Coal Project (100%)

As previously noted, NuCoal executed a Tenement Sale Agreement (Agreement) for the sale of Exploration Licence 6594 (EL 6594). This Agreement was conditional upon the Department approving the renewal of the tenement and transfer of the tenement in accordance with Condition 36 of the Exploration Licence Conditions (Coal) 2012.

The transfer from Dellworth Pty Ltd to Glendell Tenements Pty Ltd was approved by the Minister on 24 March 2016 pursuant to Section 121(1)(a) of the Mining Act 1992, and more recently the Company received duly executed documentation regarding the renewal from the Department. Given the completion of both conditions precedent, the Company received settlement under the terms of the Agreement on 13 October 2016.

Expropriation of Doyles Creek Exploration Licence 7270 (EL 7270)

On 31 January 2014, the NSW Government passed the Mining Amendment (ICAC Operations Jasper and Acacia) Act 2014 (NSW) (Mining Amendment Act), cancelling Exploration Licence 7270 (EL 7270) with no compensation payable to NuCoal. The legislation was passed following an inquiry by the Independent Commission Against Corruption (ICAC).

During the period, NuCoal continued to implement the legal strategy previously announced to seek redress for shareholders following the unfair and unjust cancellation of EL 7270 by the NSW Government.

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