Strategic Energy Resources : Half Year Financial Report – 31 December 2016

STRATEGIC ENERGY RESOURCES LIMITED ABN 14 051 212 429 HALF YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 Contents 31 December 2016

Corporate directory 2

Review of Operations 3

Directors' report 9

Auditor's independence declaration 10

Statement of profit or loss and other comprehensive income 11

Statement of financial position 12

Statement of changes in equity 13

Statement of cash flows 14

Notes to the financial statements 15

Directors' declaration 21

Independent auditor's review report to the members of Strategic Energy Resources Limited 22

Directors	Anthony Rechner (Technical Director)
Peter Armitage (Non-Executive Director)
Stuart Rechner (Non-Executive Director)

Company secretary

Melanie Leydin

Registered office	Level 4
100 Albert Road
South Melbourne VIC 3205
Ph: 03 9692 7222
Fax: [phone]

Principal place of business	Level 4
100 Albert Road
South Melbourne VIC 3205
Ph: 03 9692 7222
Fax: [phone]

Share register	Link Market Services Limited
Level 1, 333 Collins Street
Melbourne, VIC 3000
Ph: 1300 554 474

Auditor

Grant Thornton Audit Pty Ltd The Rialto Level 30, 525 Collins Street Melbourne VIC 3000

Stock exchange listing

Strategic Energy Resources Limited shares are listed on the Australian Securities Exchange (ASX code: SER)

Website

www.strategicenergy.com.au

MINERAL EXPLORATION

Figure 1: SER Exploration Projects

SAXBY GOLD PROJECT

QUEENSLAND (SER 100%)

During the half year, SER completed the acquisition of the Saxby Gold Project where historic drilling includes high grade intersections of 17m @ 6.75g/t Au and 15m @ 9.09g/t Au in two holes 190m apart.

SER conducted a detailed review of previous exploration at Saxby and concluded that previous drilling did not adequately test the potential demonstrated by the high grade intersections. Previous drilling failed to fully test structural and geophysical targets due to deviation (pronounced steepening) of inclined drill holes.

SER plans to drill several vertical drill holes surrounding the best intersections to test the extent and continuity of high grade gold at Saxby. Vertical holes are much less likely to deviate to the extent experienced with the earlier inclined drilling.