condensed interim financial report for the six … · brentnalls assurance chartered accountants...

TRI ORIGIN MINERALS LTD ABN 22 062 002 475

CONDENSED INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED

31 DECEMBER 2007

14 March 2008


CONTENTS

PAGE(S)

Directors’ report

1

Auditor’s independence declaration

4

Income statement

5

Balance sheet

6

Statement of changes in equity

7

Cash flow statement

8

Condensed notes to the financial statements

9

Directors’ declaration

18

Independent review report

19


Page 1

____________________________________________________________________

DIRECTORS’ REPORT ___________________________________________________________________ Your directors have pleasure in submitting the half-year financial report of the Company for the six months ended 31 December 2007 and report as follows:

Directors The names of the directors in office throughout the half-year ended 31 December 2007 and to the date of this report are:

Mr. B. D. Kay Mr. B. M. Robertson Dr. R. I. Valliant Mr. W. F. Killinger Mr. A. J. E. Snowden Mr. J. T. Shaw (resigned 15 February 2008)

Principal activities The principal activities of the Company during the half-year were the acquisition of mineral tenements, mineral exploration and evaluation.

There were no significant changes in the nature of activities of the Company that occurred during the half-year.

Review of operations During the half-year under review:

• The Company spent $3,691,957on project evaluation and exploration and $1,057,362 on administration. The project evaluation expenditure includes $1,789,779 of expenditure on evaluation studies for the redevelopment of the Woodlawn Project.

Woodlawn Zinc-Copper Projects Evaluation • Work has continued on the preparation of a bankable feasibility study for the Woodlawn Zinc-

Copper Project (WZP). This has involved the study of two stand alone projects namely, the Woodlawn Underground Project (WUP) which involves reopening the Woodlawn underground mine to access high grade mineralisation that remained when the operation ceased in 1998 and the Woodlawn Retreatment Project (WRP) which involves recovering and reprocessing tailings produced from the previous Woodlawn open cut and underground operations.

• The WUP study envisages a relatively high grade, low production rate scenario, involving higher capital and unit operating costs while the WRP study envisages a higher volume, relatively low grade operation with relatively lower unit operating and capital costs.

• The stand alone WRP feasibility study is scheduled for completion in early April 2008 and is

expected to demonstrate the feasibility of the tailings retreatment operation producing approximately 60,000 tonnes of copper and zinc concentrates per year. The study of the integrated project involving both the tailings retreatment and underground mining and processing operation will be finalized in May 2008. This study will evaluate the feasibility of an operation producing up to 80,000 tonnes of concentrates per year from underground ore giving a total project output of between 120,000 to 140,000 tonnes of concentrates per year.


Page 2

Exploration

• Exploration activities have focussed on tenements in the Woodlawn region, specifically:

Woodlawn (EL 5652/5726/6493/SML20) – Base Metals

Two diamond drilling rigs were deployed on the Woodlawn tenements. One of the rigs performed geotechnical drilling for the proposed new decline to access the existing underground workings. The second drill rig has been used to obtain additional diamond core sample for confirmatory metallurgical test work as part of the evaluation of the WUP.

In December 2007, a drill rig was deployed to drill a 55 hole programme, on a nominal 75 meter by 75 metre grid, in the North Tailings Dam with the objective of gaining sufficient metallurgical samples to provide data required to complete a resource estimate, as well as enable an optimised mine schedule to be developed for each of the North, South and West Tailings Dams.

Cullarin Joint Venture (EL 6292 and part EL 6686)

An initial programme of 1,000 metres of reverse circulation drilling commenced on the Cullarin Valley Prospect which is located towards the southern end of the Cullarin Joint Venture area. Potential exists for the delineation of a large low grade Au-Ag-Cu-Pb-Zn deposit as well as higher grade zones within this extensively mineralised envelope.

In preparation for the drilling programme, Tri Origin compiled and validated the drill hole database for the Joint Venture area. Preliminary 3D modelling of the geology and mineralisation indicates that the Cullarin Valley Prospect remains open in all directions. Short term objectives for the drilling programme are to locate the interpreted faulted offsets and near surface extensions to the east and thereafter through deeper diamond drilling begin to scope out the depth potential of the prospect to the west, ultimately leading to resource estimation.

Under the terms of the joint venture, Tri Origin may earn a 51% interest in EL 6292 from Golden Cross Operations Pty Ltd by spending $200,000 within a four year period.

Subsequent events Subsequent to the end of the period under review:

• With respect to the BFS for the WZP, a decision was taken to study a staged development scenario which commences with the development of a stand-alone tailings retreatment project followed by an incremental expansion into a fully integrated processing operation that treats both tailings and ore extracted by an underground mining operation. The integrated project development scenario is expected to: - Introduce a desired level of flexibility into the operation;

- Provide a more capital efficient approach to project development than that which would apply to two stand alone operations; and

- Achieve certain operating cost advantages, particularly within the underground project environs.

The study of the integrated tailings retreatment and underground mining and processing operation is expected to be finalized in May 2008.

• The drilling of holes WLTD004, WLTD004B and WLTD005 at Woodlawn has validated the accuracy and confidence of the underground resource model survey data at the down hole depths of 400 to 450 metres and provided samples for confirmatory metallurgical test work. The analytical results received on samples for both the C2 and C lenses confirm Tri Origin’s modelling of the resource and grade distribution of the mineralisation.


Page 3

• Assay results of samples acquired in the December 2007 WRP drilling programme of the North tailings dam have been received and are in line with expectations. Based upon the general grade tenor, the incremental quantity of tailings appears likely to be in the order of 2.0 to 2.5 Mt with a similar average grade to the 8.6 Mt of Resources contained in the South and West Tailings Dams.

• On the 7 February 2008, the Company issued 1,000,000 unquoted options to an employee as part of their remuneration package. The Options have an exercise price of $1.07 and expire on the 1 December 2012. The options vest in three tranches including 333,334 options on 1 December 2008, 333,333 options on 1 December 2009, and 333,333 options on 1 December 2010.

• On the 1 February 2008, the Company appointed Mr Jeffrey Quartermaine as Company Secretary.

• On the 18 February 2008, Mr. John Shaw resigned as a Director and Chairman of the Company and non-executive Director, Mr. Bruce Kay was appointed in his place to the role of Non-Executive Chairman.

Auditor’s independence declaration An independence declaration has been provided by the Company’s auditor, Brentnalls Assurance. A copy of this declaration is attached to, and forms part of, the half-year financial report for the six months ended 31 December 2007.

Signed in accordance with a resolution of the board of directors.

B.D. Kay Chairman

Sydney,

14 March 2008

brentnalls assurance chartered accountants

6th floor 222 Clarence St Sydney NSW 2000 Australia. Mail to: PO Box Q1023, QVB Post Office NSW 1230 Australia. Tel (02) 8221 0990. Fax (02) 9267 9592. Web: www.brentnallsassurance.com.au

Email: [email protected]

An independent member of the Brentnalls National Affiliation of Accounting Firms and of the Affilica International Affiliation of Accountancy Practices. Practitioner: Graeme Keith Day. BEc. FCA. ACIS.

Where applicable, liability is limited by a Scheme approved under Professional Standards Legislation.

Page 4

14 March 2008.

Mr. W Killinger

Chairman, Audit Committee

Tri Origin Minerals Ltd

Level 3,

50 Park Street

Sydney, NSW 2000.

Dear Mr. Killinger

Tri Origin Minerals Ltd.

We declare that to the best of our knowledge and belief, during the half - year ended 31 December 2007 there have been:

i. No contraventions of auditor independence requirements as set out in the Corporations

Act 2001 in relation to the Review, and

ii. No contraventions of any applicable code of professional conduct in relation to the Review.

Yours faithfully

GK Day

Member of the Firm of:

Brentnalls Assurance


Page 5

_____________________________________________________________________

INCOME STATEMENT for the half-year ended 31 December 2007

______________________________________________________________________ Note

31 December 2007

$

31 December 2006

$

Revenues

267,104 48,406

Capitalised exploration expenses written off - -

Salary costs (including directors fees) (167,469) (152,245)

Share based payments – Related parties 6b (569,383) (186,219)

Professional and legal fees (82,663) (65,723)

Operating lease expenses (office premises) (50,925) (26,210)

ASX and share registry expenses (34,333) (63,686)

Travel and accommodation (36,078) (30,373)

Insurance (23,254) (21,935)

Depreciation and amortisation expense (8,326) (6,357)

Interest expense (1,253) (65)

Other expenses (83,678) (63,932)

Profit/(Loss) before income tax (790,258) (568,339)

Income tax expense - -

Profit/(Loss) for the period (790,258) (568,339)

Profit/(Loss) attributable to members of the parent entity (790,258) (568,339)

Overall operations:

Basic earnings/(loss) per share (cents per share) 9 (0.82) (0.75)

Diluted earning/(loss) per share (cents per share) 9 (0.82) (0.75)

The financial statements should be read in conjunction with the accompanying notes.


Page 6

____________________________________________________________________

BALANCE SHEET As at 31 December 2007

_____________________________________________________________________

Note

31 December2007

$

30 June 2007

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5,416,341 8,406,157

Receivables 237,586 137,261

Other current assets 35,810 31,912

TOTAL CURRENT ASSETS 5,689,737 8,575,330

NON-CURRENT ASSETS

Property, plant and equipment 357,220 316,265

Exploration expenditure 7 15,529,452 11,681,965

TOTAL NON-CURRENT ASSETS 15,886,672 11,998,230

TOTAL ASSETS 21,576,409 20,573,560

CURRENT LIABILITIES

Trade and other payables (includes related parties $20,870) 1,011,741 503,545

Provision 48,399 32,414

TOTAL CURRENT LIABILITIES 1,060,140 535,959

NON-CURRENT LIABILITIES

Provision 30,000 30,000

Other Liabilities 35,913 0

TOTAL NON-CURRENT LIABILITIES 65,913 30,000

TOTAL LIABILITIES 1,126,053 565,959

NET ASSETS 20,450,356 20,007,601

EQUITY

Issued capital 6 25,454,968 25,454,968

Reserves 1,821,831 588,818

Accumulated losses (6,826,443) (6,036,185)

TOTAL EQUITY 20,450,356 20,007,601



Page 7

____________________________________________________________________________

STATEMENT OF CHANGES IN EQUITY for the half year ended 31 December 2007

____________________________________________________________________________

SHARE CAPITAL RESERVESACCUMULATED

LOSSES TOTAL

EQUITY

Note Ordinary Performance

Shares SharesShare-based

payments $ $ $ $ $

Balance at 1.7.2006 10,165,124 5,672,255 399,708 (4,925,411) 11,311,676

Shares issued during the period 673,500 - - - 673,500

Shares issue transaction costs - - - - -

Transfer from reserve 221,752 - (221,752) - -

Conversion of shares 4,315,846 (4,315,846) - - -

Options expensed during the period - - 186,219 - 186,219

Loss attributable to members of parent entity - - - (568,339) (568,339)

Sub-total 15,376,222 1,356,409 364,175 (5,493,750) 11,603,056

Dividends paid or provided for - - - - -

Balance at 31.12.2006 15,376,222 1,356,409 364,175 (5,493,750) 11,603,056

Balance at 1.7.2007 25,454,968 - 588,818 (6,036,185) 20,007,601

Employee share options - - 1,233,013 - 1,233,013

Loss attributable to members of parent entity - - - (790,258) (790,258)

Sub-total 25,454,968 - 1,821,831 (6,826,443) 20,450,356

Dividends paid or provided for - - - - -

Balance at 31.12.2007 25,454,968 - 1,821,831 (6,826,443) 20,450,356



Page 8

_____________________________________________________________________

CASH FLOW STATEMENT for the half-year ended 31 December 2007

_______________________________________________________________________

31 December 2007

$

31 December 2006

$

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees (465,511) (386,874)

Deposits repaid - 900

Interest paid (8,469) -

Interest received 267,080 48,406

Net cash used in operating activities (206,900) (337,568)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for plant and equipment (133,264) (12,021)

Payments for exploration interests (2,620,198) (529,632)

Net cash used in investing activities (2,753,462) (541,653)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares - 673,500

Payment of share issue cost (29,454) -

Net cash provided by/(used in) financing activities (29,454) 673,500

Net (decrease)/increase in cash & cash equivalents held (2,989,816) (205,721)

Cash & cash equivalents at beginning of the reporting period 8,406,157 1,628,853

Cash & cash equivalents at the end of the reporting period 5,416,341 1,423,132



Page 9

____________________________________________________________________ CONDENSED NOTES TO THE FINANCIAL STATEMENTS

for the half-year ended 31 December 2007 ____________________________________________________________________ NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES This general purpose financial report for the half-year reporting period ended 31 December 2007 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This half-year 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 2007 and any public announcements made by Tri Origin Minerals Ltd (TRO) during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The financial report was authorised for issue by the Directors on 14th March 2008. The accounting policies adopted in the preparation of the half-year financial report are consistent with those of the previous financial year and corresponding half-year reporting periods. A separate consolidated financial report covering the economic entity, being the Company and its wholly owned and controlled entities, Tri Origin Mining Pty Limited and Woodlawn Operations Pty Ltd, has not been prepared on the grounds of immateriality. Woodlawn Operations Pty Ltd was incorporated during the half year for the purposes of holding tenements relevant to the area of interest. A summary of the significant accounting policies is included below.

a) Exploration expenditure and mineral leases Expenditure incurred on exploration, evaluation and development is accumulated in respect of each identifiable area of interest of the Company. The costs are carried forward where the Company’s rights to tenure of the area of interest are current and provided further that:

i. such costs are expected to be recouped by successful development and/or exploitation of the area of interest, or

ii. by sale of the area of interest, or

iii. exploration and evaluation activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

Should any area of interest be abandoned or considered to be of no value, accumulated expenditure applicable to such area of interest is written off to the income statement in the year in which the decision is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

b) Business undertakings – joint ventures The Company has certain exploration activities conducted through joint ventures with other parties. The Company’s interest in these joint ventures is shown in the statement of financial position under the appropriate heading. Details of the interests in the joint venture assets and liabilities are set out in Note 8.


Page 10


for the half-year ended 31 December 2007 ____________________________________________________________________

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c) Earnings per share i. Basic earnings per share:

Basic earnings per share is determined by dividing the operating profit/ (loss) after income tax by the weighted average number of ordinary shares outstanding during the period.

ii. Diluted earnings per share:

Diluted earnings per share adjusts the figures used in determining earnings per share by taking into account amounts unpaid on ordinary shares and any reduction in earnings per share that will probably arise from the exercise of options outstanding during the financial year. The diluted earnings per share are capped at the basic earnings per share in circumstances of losses.

d) Remuneration of Directors and Key Management Personnel The cost to the Company of share options granted to Directors and Key Management Personnel is included at fair value as part of the Directors’ and Key Management Personnel’s aggregate remuneration in the financial year the options are granted. The fair value of the share option is calculated using the Black Scholes option pricing model, which takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradable nature of the option, the current price and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

e) Income tax The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date. Deferred tax is accounted for using the balance sheet method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised to the extent that there is convincing evidence that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.


Page 11

____________________________________________________________________

CONDENSED NOTES TO THE FINANCIAL STATEMENTS for the half-year ended 31 December 2007

____________________________________________________________________

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Director’s estimate that the potential net deferred tax asset at 31 December 2007 at 30% in respect of tax losses and timing differences not brought to account is: $806,928 (30 June 2007: $742,500)

f) Restoration, rehabilitation and environmental expenditure

Restoration, rehabilitation and environmental expenditure to be incurred during the production phase of operations is accrued when the need for such expenditure is established, and then written off as part of the costs of production of the mine property concerned. Significant restoration, rehabilitation and environmental expenditure to be incurred subsequent to the cessation of production at each mine property is accrued, in proportion to production, when its extent can be reasonably estimated.

NOTE 2: MATTERS SUBSEQUENT TO BALANCE DATE On the 7 February 2008, the Company issued 1,000,000 unquoted options to an employee as part of that employee’s remuneration package. The Options have an exercise price of $1.07 and expire on the 1 December 2012. Three hundred and thirty three thousand three hundred and thirty four (333,334) options vest on 1 December 2008, 333,333 options vest on 1 December 2009, and 333,333 options vest on 1 December 2010.

On the 1 February 2008, the Company appointed Mr. Jeffrey Quartermaine as Company Secretary to replace the previous Company Secretary, Mr. John Falconer.

On the 18 February 2008, Mr. John Shaw resigned as a director and Chairman of the Company and non-executive Director, Mr. Bruce Kay was appointed in his place to the role of Non-Executive Chairman. No other matters or circumstances have arisen since 31 December 2007 that have significantly affected or may significantly affect: (a) the Company’s operations in future years; or (b) the results of those operations in future years; or (c) the Company’s state of affairs in future years.

NOTE 3: DIVIDENDS

No dividends were declared or paid in the half-year period.

NOTE 4: SEGMENT INFORMATION

The Company operates predominantly in the one business segment and in one geographical area, namely Australia mineral exploration and evaluation.


Page 12

____________________________________________________________________

CONDENSED NOTES TO THE FINANCIAL STATEMENTS for the half-year ended 31 December 2007

_____________________________________________________________________

NOTE 5: CONTINGENT LIABILITIES

The Company has entered into performance bonds with the National Australia Bank Limited in relation to environmental rehabilitation ($127,000) and rental commitments ($44,413). These commitments are secured by a way of mortgage against the Company’s Lewis Ponds freehold land.

On the 29 September 2006 the Company and Tri Origin Mining Pty Ltd (TOM) entered into a private agreement with Collex Pty Limited (now Veolia Environmental Services (Veolia)) with regard to the transfer of Special Mining Lease 20 (SML 20) to the Company either prior to or upon the completion of a feasibility study. Under the terms of this agreement and subject to the transfer of mining lease SML20 the Company has agreed:

(i) To assume the environmental liabilities of the site, excluding Veolia’s area of operation. The value of the environment liability will be determined as part of the feasibility study and development approval process for the Woodlawn Zinc-Copper Projects. The Company has received a preliminary estimate of $10-$12 million, for the performance bond required for the rehabilitation of the site. The majority of the cost is associated with the rehabilitation of the tailings dams.

(ii) Subject to certain approvals being received by Veolia and the Company, the Company will receive “free-on-board” compost from Veolia to be utilized in the rehabilitation of the site.

(iii) To indemnify Veolia along with TOM, on a full indemnity basis for all direct and consequential loss and damage and liabilities suffered by Veolia as a result of or caused by or contributed to by any act or omission or default of the Company or TOM, connected with its operation at the site.

There is an outstanding royalty payment of approximately $500,000 that was owed by the previous operators of SML20 to the NSW Department of Primary Industries that the Company may need to pay upon the transfer of mining lease SML20 to it. The NSW Department of Primary Industries was considered an unsecured creditor when the previous operator went into administration.

None of these contingent liabilities has been provided for in the financial report.

NOTE 6: CONTRIBUTED EQUITY

31 December 2007

$

30 June 2007

$

96,308,234 fully paid ordinary shares (30 June 2007: 96,308,234)

25,454,968 25,454,968


Page 13



NOTE 6: CONTRIBUTED EQUITY (CONTINUED)

31 December

2007$

30 June 2007

$

31 December

2007 Number

30 June 2007

Number

(a) Reconciliation of Issued Capital

Ordinary Shares

Opening Balance 25,454,968 15,154,470 96,308,234 85,847,010

Shares movement during the year:

- 20 February 2007 (i) - 15,000 - 75,000

- 23 April 2007 (ii) - 9,000,000 - 7,500,000

- 14 May 2007 (iii) - 1,356,409 - 2,750,000

- 30 May 2007 (iv) - 163,500 - 136,224

Transfer from employee equity settled benefits reserve - 226,703 - -

Shares issue costs - (461,114) -

Closing Balance 25,454,968 25,454,968 96,308,234 96,308,23

Performance shares

Opening balance - 1,356,409 - 2,750,000

Shares movement during year:

- 14 May 2007 (iii) - (1,356,409) - (2,750,000)

At reporting date - - - -

Notes:

(i) On the 20 February 2007 the Company announced that it had received an application to convert 75,000 options into 75,000 fully paid ordinary shares at an exercise price of 20 cents per option.

(ii) On the 23 April 2007 the Company announced that it had completed a capital raising of $9,000,000 by the issue of 7,500,000 shares at an issue price of $1.20 per share.


Page 14

_____________________________________________________________________ CONDENSED NOTES TO THE FINANCIAL STATEMENTS

for the half-year ended 31 December 2007

______________________________________________________________________

NOTE 6: CONTRIBUTED EQUITY (CONTINUED)

(iii) On the 13 December 2006 the Company made an application to the ASX to convert 8,750,000 Performance Shares into 8,750,000 fully paid ordinary shares. These Performance Shares were issued prior to the Company listing on the ASX via an IPO. A debt of $5,672,255 owing to Tri Origin Exploration Ltd, a company incorporated in Canada, was converted into 11,500,000 Performance Shares. All 11,500,000 Performance Shares have met the criteria, including share price hurdle rates, for conversion. As at 13 December 2006 8,750,000 had been converted into 8,750,000 fully paid ordinary shares of the Company and were then subject to the rules and regulations of the ASX, the remaining balance of 2,750,000 Performance Shares were converted into fully paid ordinary shares on the 14 May 2007.

(iv) On the 30 May 2007 the Company announced that it had issued 136,224 fully paid ordinary shares via a Share Purchase Plan as announced on the 23 April 2007 at an issue price of $1.20.

(b) Reconciliation of unquoted options:

Date Details Exercise

price Expiry date Number

1 July 2007 opening balance

40.4 cents weighted average Various 6,370,000

22 August 2007 options issued 114.0 24 May 1012 60,000

22 August 2007 options issued 136.0 22 June 2012 1,400,000

22 August 2007 options issued 154.0 10 August 2012 800,000

26 September 2007 options issued 154.0 26 September 2012 200,000

26 November 2007 options issued 109.0 26 November 2012 100,000

26 November 2007 options issued 109.0 27 November 2012 20,000

31 December 2007

closing balance outstanding and exercisable

69.5 cents weighted average Various

8,950,000

The value of the Options issued to Directors, employees and consultants up to 31 December 2007 was $3,026,310 (30 June 07: $1,126,930). Of this, $569,383 (30 June 07: $588,818) has been expensed in the Income Statement for this half year and $652,430 has been capitalised in the Balance Sheet as exploration expense. The balance of $1,228,257 together with a further $437,000 arising after balance date will be expensed in future years on a pro rata basis to Options’ vesting dates up to 1 December 2010.


Page 15


for the half-year ended 31 December 2007

____________________________________________________________________

NOTE 7: EXPLORATION EXPENDITURE

31 December 2007

$

30 June 2007

$

Exploration expenditure 15,529,452 11,681,965

This item relates to the aggregate of expenditure at cost less amounts written off on mining tenements. Expenditures relating to mining leases are to be amortised when production commences, or written off to the Income Statement in accordance with AASB6. In accordance with Note 1(a), a review of the carrying values of these assets will be carried out and reflected in the Financial Statements for the year ending 30 June 2008.

The above carrying values do not purport to be the amount receivable by the Company in the event the interests in the mining tenements were farmed out or sold, with the recovery of this capitalised exploration cost dependent upon future successful exploration or realisation of this asset.

The Company is a signatory to the Mining Council of Australia Framework for Sustainable Development - Enduring Value. This commits the Company to reporting its performance in more detail than the past as well as publicly declaring its commitment to ethical business practices. This commitment requires the Company to also report on its Occupational, Health & Safety and Environmental performance at a project level. On this basis the Company has reviewed its environmental liabilities and where it would ordinarily address the outstanding issues in the normal course of its business, it has provisioned $30,000 for these liabilities which the Directors deem appropriate. As well, during the reporting period there were no lost time injuries incurred by the Company.

NOTE 8: JOINT VENTURES

31 December 2007

$

30 June 2007

$ Woodlawn South JV1

Black Range JV2

100%

70%

100%

70%

Cullarin JV (earning 51% in EL6292)

0% 0%

Woodlawn North JV (earning 60% in EL5812)

0% 0%

Interest shown in the Balance Sheet as Exploration Expenditure

$122,082 $54,067

Note 1: The Company retains a 100% interest in the Woodlawn South JV as co-venturers elected to change their JV interest to a net smelter royalty. The carrying values of these tenements have been excluded from the above amount of $122,082.

Note 2: Tri Origin Minerals Ltd holds a 100% interest in EL 5878 and has a 70% interest in the Black Range JV with Mount Conqueror Minerals NL and Central West Gold NL to explore on 5 of the 32 units that comprise EL 5878. The carrying values of these tenements have been excluded from the above amount of $122,082.


Page 16



NOTE 9: EARNINGS/ (LOSS) PER SHARE

The following reflects the income and share data used in the calculations of basic and diluted earnings per share:

Half year ended 31 December 2007

$

2006

$

Basic earnings/(loss) per share (0.82) (0.75)

Diluted earnings/(loss) per share1 (0.82) (0.75)

Weighted average number of ordinary shares outstanding during the half year 96,308,234 75,740,997

Net loss (790,258) (568,339) Note 1: Diluted loss per share is capped at the Basic loss per share

NOTE 10: COMMITMENTS FOR EXPENDITURE a) Exploration Commitments In order to maintain current rights of tenure to granted exploration tenements, the Company is required to perform minimum exploration work to meet the minimum expenditure requirements specified by various State governments. These obligations are subject to renegotiation when application for a mining lease is made and at other times. These obligations are not provided for in the financial report.

The annual minimum expenditure requirements for each of the Company’s tenements are as follows:

Tenement Number Tenement Name Annual expenditure

commitment

Exploration Licence 5583 Lewis Ponds $87,000

Exploration Licence 5726 Woodlawn $11,000

Exploration Licence 5652 Woodlawn South $20,000

S(C&PL)L 20 (Special Mining Lease) Woodlawn NA

Exploration Licence 6493 Woodlawn $38,500

Exploration Licence 6497 Gurrundah $10,000

Exploration Licence 5878 Overflow $62,000

Mining Lease 739 Calarie $35,000

Exploration Licence 6551 Pylara $ 8,500

Exploration Licence 6611 Mt Fairy $12,250

Exploration Licence 6686 Cullarin $38,500

Exploration Licence 6292 Breadalbane $46,000

Exploration License 7023 Calarie $32,500 $401,250


Page 17


for the half-year ended 31 December 2007 ____________________________________________________________________ NOTE 10: COMMITMENTS FOR EXPENDITURE (CONTINUED)

b) Operating lease commitment

Operating lease commitment on rental property amounts to $219,857over the remaining period of the lease.

NOTE 11: ECONOMIC DEPENDENCY The Company’s principal activities are mineral exploration and project evaluation and investment of funds on deposit. Other than interest derived from funds on deposit the Company does not derive income from any trading activity and is dependent on the support of shareholders to finance its on-going exploration programme.

NOTE 12: RELATED PARTY TRANSACTIONS The names of the directors in office at any time during the half-year ended 31 December 2007 and to the date of this report are:

Mr. B. D. Kay Mr. B. M. Robertson Dr. R. I. Valliant Mr. W. F. Killinger Mr. A. J. E. Snowden Mr. J. T. Shaw (resigned 15 February 2008) Transactions between related parties are on normal commercial terms and conditions unless otherwise stated. Details of options granted to Directors are set out in Note 6b.

Tri Origin Exploration Ltd, a public company listed on the TSX-Venture Exchange, holds 51% of the issued capital of the Company.

At 31 December 2007 5,321,512 Shares (30 June 2007: 5,328,506) and 8,000,000 Options (30 June 2007: 5,600,000) were beneficially held by Key Management Personnel.


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____________________________________________________________________

DIRECTORS’ DECLARATION _____________________________________________________________________

The directors of Tri Origin Minerals Ltd declare that, in their opinion:

a) the financial statements and notes for the half-year ended 31 December 2007 are in accordance with the Corporations Act 2001 (including Sections 304 and 305 thereof); Accounting Standards and Corporations Regulations 2001.

b) the financial statements and notes for the half-year ended 31 December 2007 give a true and fair view of the financial position and the performance of the Company for the half-year then ended; and

c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Made in accordance with a resolution of the directors. On behalf of the directors

B D Kay Chairman

Sydney 14 March 2008

Independent Review Report To The Members Scope

We have Reviewed the accompanying Interim Financial Report of Tri Origin Minerals Ltd (the “Company”) which comprises the Condensed Balance Sheet as at 31 December 2007, and the Condensed Income Statement, Condensed Statement of Changes in Equity and Condensed Cash Flow Statement for the half-year ended on that date, selected explanatory Notes and the Directors’ Declaration.

Directors’ Responsibility for the Interim Financial Report

The Directors of the Company are responsible for the preparation and fair presentation of the Interim Financial Report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes implementing and maintaining internal control relevant to the preparation and fair presentation of the Interim Financial Report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express a Conclusion on the Interim Financial Report based on our Review. We conducted our Review in accordance with Auditing Standard on Review Engagements ASRE 2410 “Review of an Interim Financial Report Performed by the Independent Auditor of the Entity”, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the Interim Financial Report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Company’s financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001. As the Auditor of the Company, ASRE 2410 requires that we comply with the ethical requirements relevant to the Audit of the annual Financial Report.

A Review of an Interim Financial Report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other Review procedures. A Review is substantially less in scope than an Audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an Audit. Accordingly, we do not express an Audit opinion.

Independence

In conducting our Review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the Independence Declaration required by the Corporations Act 2001, previously provided to the Directors would be in the same terms if provided to the Directors as at the date of this Review report

Conclusion

Based on our Review, which is not an Audit, we have not become aware of any matter that makes us believe that the Interim Financial Report of the Company is not in accordance with the Corporations Act 2001 including:

a. Giving a true and fair view of the Company’s financial position as at 31 December 2007 and of its financial performance for the half – year then ended; and

b. Complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Name of Member: Graeme Keith Day

Name of Firm: Brentnalls Assurance

Sixth Floor, 222 Clarence Street, Sydney NSW 2000, Australia

Date: 14 March 2008

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