eldore mining corporation limited annual report 30 … experience, mr bassett has been involved with...

ELDORE MINING CORPORATION LIMITED

ABN 82 110 884 252

ANNUAL REPORT

30 JUNE 2010

ElDore Mining Corporation Limited 1

CONTENTS PAGE

CORPORATE DIRECTORY ............................................................................................................................................ 2

DIRECTORS REPORT ..................................................................................................................................................... 3

AUDITOR‟S INDEPENDENCE DECLARATION ........................................................................................................ 30

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ......................................................................... 31

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................... 32

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................... 33

CONSOLIDATED STATEMENT OF CASH FLOWS .................................................................................................. 34

NOTES TO THE FINANCIAL STATEMENTS ............................................................................................................. 35

DIRECTORS' DECLARATION ...................................................................................................................................... 63

INDEPENDENT AUDITOR'S REPORT ........................................................................................................................ 64

STOCK EXCHANGE INFORMATION ......................................................................................................................... 67

CORPORATE GOVERNANCE STATEMENT ............................................................................................................. 69


CORPORATE DIRECTORY

DIRECTORS

Anthony Hamilton (Chairman)

Ron Cotton

John Geary

Tony Izelaar

SECRETARY

Neville Bassett

REGISTERED AND PRINCIPAL OFFICE

1186 Hay Street

West Perth WA 6005

Telephone: (08) 9226 1246

Facsimile: (08) 9226 1257

SHARE REGISTRY

Security Transfer Registrars Pty Ltd

770 Canning Highway

Applecross WA 6153

Telephone: (08) 9315 2333

Facsimile: (08) 9315 2233

AUDITORS

Mack & Co

2nd

Floor

35 Havelock Street

West Perth WA 6005

AUSTRALIAN SECURITIES EXCHANGE

Eldore Mining Corporation Limited shares (EDM) and

options (EDMOA) are listed on the Australian Securities

Exchange.


DIRECTORS REPORT

Your Directors present their report on the Company and its controlled entities during or at the end of the financial year

ended 30 June 2010.

DIRECTORS

The names of the Directors of the Company in office during the financial year and up to the date of this report are as

follows:

Anthony Hamilton – appointed 20 January 2010

Ron Cotton AM

John Geary – appointed 13 January 2010

Bastiaan (Tony) Izelaar

Martin Pawlitschek – resigned 24 August 2009

Andrew Waller – resigned 20 January 2010

Directors were in office from the beginning of the financial year until the date of this report unless otherwise stated.

The particulars of the qualifications, experience and special responsibilities of each director are as follows:

Anthony Hamilton Executive Chairman

Mr Hamilton is a fellow of the Institute of Directors in London and previously CEO of an International Mining

company based in London.

He has extensive public company and corporate governance experience with both Australian and International

resource expertise in gold, diamonds, oil & gas and base metals, having established operations in Africa, North

America and Australia.

During the past 3 years, Mr Hamilton has also served as a director of the following listed companies:

Acclaim Exploration NL (26 October 2009 to present)

Modena Resources Ltd (2 November 2009 to present)

Ron Cotton AM Non-Executive Director

Mr Cotton has had an extensive business career across a variety of industries. He served Ampol Petroleum Ltd for 20

years, the last 12 years as Controller and Group General Manager. In 1981 he was appointed as Chief Financial

Officer, and was subsequently Group Managing Director – Operations for the John Fairfax Publishing Group, which

included newspapers, magazines, Macquarie radio and the Seven Television network.

In 1989 he commenced a consultancy practice in business strategy, negotiation and corporate advice, and now has an

extensive portfolio of activities in the public and private sectors.

Currently the Chair of the Advisory Board of Crown & Marks Executive Search, as well as providing a number of

other advisory, consulting and mentoring services.

Director since 11 November 2008.

No other directorships in listed companies in the last 3 years.


DIRECTORS REPORT CONTINUED

John Geary, B. Bus, Grad. Dip Acctg, Grad Dip Adv. Taxation – Non Executive Director

John Geary was born and educated in Perth, Western Australia. He has over thirty years experience in the mineral

exploration industry both in Australia and overseas. His experience includes prospecting, tenement acquisition,

owner/operator of a contract drilling company and the promotion, listing and management of an exploration company

on the Australian Securities Exchange. He has been actively involved in the planning and implementation of many

exploration programmes.

This „hands on‟ experience is complemented by Tertiary qualifications in Economics and Financial Management,

Accounting and Taxation.

Director since 13 January 2010.

During the past 3 years, Mr Geary has also served as a director of the following listed companies:

Greater Pacific Gold Ltd (23 March 2005 to 24 November 2008)

Yellow Rock Resources Ltd (13 September 2005 to 11 December 2008)

Aurium Resources Ltd (2 April 2007 to 30 June 2008)

ORT Limited (24 May 2007 to present)

Acclaim Exploration NL (22 June 2009 to present)

Tony Izelaar Non-Executive Director

Mr Izelaar born in the Netherlands has been educated as a chartered accountant. The early days of his career he

worked with KPMG in the Netherlands, before moving in 1990 to the Netherlands Antilles. Mr. Izelaar has been

employed as controller, involved in finance and re-insurance divisions, of quoted companies (UK and Amsterdam)

before founding an audit and advisory firm under the BDO network.

After 15 years Mr Izelaar decided to remigrate to Europe (Monaco) where he is engaged in financial planning and

consulting activities for global clients, both individuals and corporations.

Director since 26 October 2007.

During the past 3 years, Mr Izelaar has also served as a director of the following listed companies:

Arturus Capital Ltd (March 2009 – 8 April 2010)

Martin Pawlitschek Non-Executive Director

Mr Pawlitschek is a qualified geologist and one of the founding directors of Birrimian (Pty) Ltd, the private mining

syndicate which established the portfolio of gold exploration tenements in Burkina Faso recently acquired by the

Company. Over the past four years he has held country exploration manager roles in Africa with two Australian listed

mining and exploration companies. Prior to that, for a period in excess of 10 years he held senior exploration roles

with BHP Billiton in both Australia and Africa.

Mr Pawlitschek was appointed a director on 11 November 2008 and resigned 24 August 2009.

Andrew Waller Executive Chairman

Mr Waller‟s background is in technology development / manufacturing, property development and resources. He was

the founder of the telecommunications division of the UDC Group Pty Ltd that formed Cable and Telecoms Limited.

Mr Waller was an executive director of Cable and Telecoms Limited.

Mr Waller has extensive public company experience, particularly in the area of capital raising and business

development.

Mr Waller was appointed a director on 26 April 2007 and resigned 20 January 2010.



Interests in the shares and options of the company and related bodies corporate

As at the date of this report, the interests of the directors in the shares and options of Eldore Mining Corporation

Limited were:

Number of

Ordinary Shares

Number of Options

Over Ordinary Shares A Hamilton 100,000 -

R Cotton - -

J Geary - -

T Izelaar - -

COMPANY SECRETARY

Neville Bassett B.Bus, CA

Mr Bassett was appointed company secretary on 14 December 2007. As a chartered accountant with over 30 years

experience, Mr Bassett has been involved with a diverse range of Australian public listed companies in directorial,

company secretarial and financial roles.

CORPORATE INFORMATION

Corporate Structure

Eldore Mining Corporation Limited is a limited liability company that is incorporate and domiciled in Australia.

Eldore Mining Corporation Limited has prepared a consolidated financial report incorporating the entities that it

controlled during the financial year as follows:

Eldore Mining Corporation Limited - parent entity

Knights Landing Limited - 100% owned controlled entity

Birrimian Pty Ltd - 100% owned controlled entity

Nature of Operations and Principal Activities

The principal continuing activities during the year of entities within the consolidated entity were exploration for and

evaluation of mineral resources.



OPERATING AND FINANCIAL REVIEW

Review of Operations

Corporate

During the year, the Company raised capital and issued securities as outlined under the heading „Financing Activities‟.

Operating Results

Consolidated loss after income tax for the financial year was $1,458,815 (2009: $951,171).

Financial Position

At 30 June 2010, the Company had cash reserves of $405,185.

Financing and Investing Activities

The company issued the following securities during the year:

In December 2009, the company issued 6,115,384 ordinary fully paid shares (together with 6,115,384 free

attaching options exercisable at $0.03 each on or before 30 September 2011) at an issue price of 1.3 cents each,

raising gross proceeds of $79,500;

In December 2009, the company issued 25,000,000 ordinary fully paid shares at an issue price of 0.5 cents each,


In December 2009, the company issued 29,000,000 free attaching options exercisable at $0.03 each on or before

30 September 2011 for the ordinary shares issued on 23 December 2008.

In January 2010, the company issued 37,804,000 ordinary fully paid shares (together with 18,902,000 free

attaching options exercisable at $0.03 each on or before 31 December 2012) at an issue price of 1.0 cent each,


In March 2010, the company issued 5,296,000 ordinary fully paid shares (together with 2,648,000 free attaching

options exercisable at $0.03 each on or before 31 December 2012) at an issue price of 1 cent each, raising gross

proceeds of $52,960;

In March 2010, the company issued 15,000,000 ordinary fully paid shares at an issue price of 1 cent each as

consideration for the acquisition of a mining tenement;

In March 2010, the company issued 449,900,002 ordinary fully paid shares (together with 224,949,991 free

attaching options exercisable at $0.03 each on or before 31 December 2012) at an issue price of 1 cent each,

raising gross proceeds of $4,499,000;

In April 2010, the company issued 50,000,000 ordinary fully paid shares at an issue price of 1 cent each in

satisfaction of outstanding loan funds; and

In April 2010, the company issued 208,500,000 options exercisable at $0.03 each on or before 31 December

2012 at an issue price of 0.001 cents, raising gross proceeds of $208,500.

Dividends

No dividends were paid during the year and no recommendation is made as to dividends.



Project Review

Burkino Faso - Knights Landing Limited (100% reducing to 40%)

In January 2010, the Company entered into an agreement with Predictive Discovery Pty Ltd (PD) to farm-in on the

Company‟s Burkina Faso project by expending A$2 million for a 60% interest. The agreement requires PD to

undertake exploration programs on the Burkina Faso properties, which after expending A$600,000 it can abandon or

continue by completing A$2 million in total by 2012.

PD is a private Australian exploration company with access to advanced Australian-developed technology for

identifying high probability drilling targets in gold ore systems. Its Managing Director, Mr Paul Roberts, has over 25

years of mineral exploration experience in Australia and South America, and led the research team that developed the

technology within the industry and government-funded Predictive Mineral Discovery Cooperative Research Centre.

PD‟s Non-Executive Directors are Mr Phil Harman (Chairman), formerly, Managing Director of Gravity Diamonds

Ltd and currently Chairman of Gippsland Offshore Petroleum and a Director of Callabonna Uranium Ltd, Dr Tom

Whiting, former VP-Exploration of BHP Billiton, Dr Bobby Danchin, former Managing Director of Anglo

American‟s Exploration and Acquisition Division and a current Director of Cluff Gold plc and Mineral Deposits

Limited and Mr Phil Henty, an investment and equity markets specialist.

The Farm-in includes the following four exploration permits,

Fouli exploration permit, Burkina Faso

The exploration permit 352 covers 248 km2.

Tantiabongou exploration permit, Burkina Faso

The exploration permit TBA covers 120 km2.

Sirba exploration permit, Burkina Faso


Madyabari exploration permit, Burkina Faso


Burkina Faso is a landlocked nation in West Africa surrounded by six countries, Mali to the north, Niger to the east,

Benin to the south east, Togo & Ghana to the south and Cote d‟Ivoire to the south west. The country has a

democratically elected government, with mineral exploration for gold, copper, iron ore and manganese currently

active.

Exploration

The main focus of PD‟s exploration work during the period was on preparing for and carrying out a RAB

drilling program on the Fouli and Tantiabongou permits, prior to the beginning of the rainy season. With

this in mind, activities included geological mapping, rock and soil sampling, trenching and aeromagnetic

data re-processing. A large program of ground magnetic surveys yielded useful structural information

which helped guide the drilling program. In addition, results were received from soil and trench sampling

carried out on the Sirba and Madyabari permits.

RAB drilling identified a gold anomalous zone at Fouli extending for approximately 1.8km in a north-

easterly direction along a structure identified using wavelet processing of the new ground magnetic data. A

large number of +1g/t Au intercepts were obtained, the best of which were:

FORAB079 – 10m at 1.4 g/t Au from 25m depth

FORAB081 - 15m at 2.3 g/t Au from 12m depth

FORAB106 3m at 9.4 g/t Au from 18m depth



RAB drilling results at Watamtonga were less encouraging although the mineralised trend remains open

along strike in both directions.

Figure 1: Location of ElDore exploration permits and principal target areas

Geological Mapping

A rapid geological mapping program was carried out over six areas in the tenements with a total coverage of

approximately 120 sq km (Figure 2). The method employed was to map on 500m spaced traverses with contact

mapping between them. The purpose of the mapping was to obtain verifiable fact geology to assist with preparing

geological interpretations of these areas in combination with magnetic data in preparation for the RAB program. The

two small areas at the NE and SW extremities of the tenement area were added on based on an assessment of historical

data while the mapping program was underway.



Figure 2: Location of PD mapping areas outlined in red.

Rock and Soil Sampling

In keeping with PD‟s philosophy of only taking samples of saprolite or saprock, and in the absence of an available

power auger rig in Burkina Faso this field season, only one area was selected for soil sampling. This was over the

Newmont anomaly area on the Madyabari permit (Figure 1) where outcrop is relatively plentiful. Sampling was

carried out using a combination of standard digging implements supplemented by hand augers to push sample depths

down as much as 2 metres. 115 soil samples were collected on a 400m x 40m grid spacing. Saprolite/saprock was

obtained mostly at the north-western end of the grid with approximately 50% coverage achieved. The samples were

submitted to ALS in Ouagadougou for gold and arsenic assays. The remainder of the grid will be sampled with a

power auger rig next field season.

Rock chip sampling was carried out over the Newmont anomaly area along with some at the Bongou site in the west

of the Madyabari permit and in the Tanebya area at the west end of the Sirba permit. 88 samples were submitted for

fire assay, of which 12 contained over 1g/t Au, the highest value being 9.5g/t Au from the Madyabari area.

The Bongou site (Figure 1) was visited by PD‟s Chief Geologist, Dr Barry Murphy, in March, where he noted

impressive quartz vein stockworks in an irregular open pit mining area about 150m long and up to 50m wide (Figure

3). Rock chip sampling from here gave values of up to 4.5 g/t Au.



Figure 3: part of the Bongou open pit artisanal mining site

Trenching

Two trenches were dug at the Bongou site, each approximately 100m long (Figure 4).

Figure 4: Bongou site - western trench

As far as PD is aware, the Bongou mineralisation has never been drill tested. It is exposed because it abuts a hill of

gabbro on its north side. Along strike to the west and east, there appears to be transported cover which may be an

appropriate target area for RAB drilling.



Geochemistry

196 rock samples were analysed for gold and arsenic during the period at the ALS laboratories in Ouagadougou and

Bamako respectively. Most of the samples were obtained from trenching undertaken in the March and June Quarters,

of which 200m was completed prior to the end of March and 142m shortly thereafter. Trenches were approximately

2m deep, and were channel sampled at 2m intervals where weathered bedrock or laterite was exposed.

A 36m trench at the Djemoanga prospect (Figure 5) obtained 18m at 1.0 g/t Au including 6m at 2.7 g/t Au.

Anomalous values (0.1-0.4 g/t Au) persist into the lateritic cover at the northern end of the trench, where the sampling

was terminated, indicating that the mineralised system is open in that direction.

Two trenches totaling 106m in length and 150m apart were completed at Laterite Hill (Figure 5). Anomalous values

(0.1-0.9 g/t Au) were encountered in the southern 15-20m of each trench indicating that the gold-bearing system is

open to the south under cover where the alluvium is too thick to penetrate with hand implements. The eastern trench

also recorded 2m at 8.4 g/t Au near its northern end.

The 115 soil samples collected from the Newmont anomaly area were analysed for gold and arsenic. Gold assays were

by a BLEG cyanide leach method. Weak to moderate gold anomalism (20-70ppb) was obtained on all lines with one

high value of 664ppb Au, however sampling was restricted to areas of shallow (<1m) weathered bedrock. More than

half of the grid remains un-sampled and will be tested using a power auger rig in the December Quarter.

Figure 5: Location of Sirba and Madyabari exploration permits and areas where geochemical sampling was

undertaken in the June Quarter

The principal conclusion drawn from this work was that the area is covered by shallow alluvium over too large an area

to allow for effective use of RAB drilling. This is especially the case over the Sirba deposit trend (Figure 2) where re-

processing of the aeromagnetic data in the March Quarter indicated that the prospective zone could be as much as 1km

wide. For this reason, the remaining field work in the quarter was focused on the Fouli and Tantiabongou permits

where more immediate opportunities were present for testing by the scheduled RAB drilling program.



Aeromagnetic Survey Data Reprocessing

Historic aeromagnetic data collected over the Sirba-Madyabari areas has been purchased. This data was re-processed

by Intrepid Geophysics. Reduced to the pole and reduced to the equator data sets were prepared and subjected to

wavelet analysis (“worming”) – see Figure 6. The data is being used to develop interpretative geological maps and to

help target the RAB drilling program.

Figure 6: Aeromagnetic re-processing of historical aeromagnetic data with 200m line spacing. The image is of

wavelet processed (or ―worm‖) reduced to the equator magnetic data. Note the strong ENE trending structure which

approximately coincides with the magenta triangles, which denote the location of artisanal working sites on the

Laterite Hill trend. The NW oriented features are dolerite dykes that probably post-date mineralisation.

Ground Magnetic Surveys

Ground magnetics surveys totalling 331 line km were completed during the quarter over the Fouli and Watamtonga

prospect areas (Figure 7). The surveys were carried out by BUMIGEB, the Burkina Faso Government‟s geological

agency. Lines were spaced 200m apart and station spacing was 25m along lines.

The aim of this work was to provide structural geological control, which in combination with the results of the

geological mapping could be used to help design the RAB program. Wavelet (“worm”) re-processing of the Fouli

magnetic data was also completed in order to assist with RAB drill program design.



Figure 7: Raw magnetic data images showing location of ground magnetic surveys and RAB drilling at Fouli and

Watamtonga prospects.

Figure 8: Fouli prospect - first vertical derivative ground magnetic image illustrating the curvilinear east-west fault

identified by the survey. Note also the WNW trending feature which terminates the major fault at its western end.



At Watamtonga, the ground magnetics identified two east-west structures, the southern of which follows the sheared

margin of the large granite body to the south, which was observed in earlier geological mapping. At Fouli (Figure 8),

the magnetics identified a strong curvilinear east-west structure located under cover. Wavelet (“worm”) processing of

the data (Figure 9) also indicated a deeply penetrating NE trending structure cross-cutting the east-west zone in the

vicinity of the Fouli artisanal mining zone.

Figure 9: Fouli prospect – wavelet processed or magnetic ―worm‖ map illustrating deep cross structure. Depth

extent is indicated by warm line colours. Note how it cuts through the middle of the Fouli artisanal gold workings

which recovered gold from the base of a laterite layer overlying the bedrock.

RAB Drilling Program

A total of 6,102m of RAB drilling in 202 holes was completed at two prospects – 154 holes at Fouli and 48 holes at

Watamtonga (Figure 7).

The program was designed to test the structural zones identified by the magnetics and, at Watamtonga, an untested

zone of artisanal workings and geochemical anomalism. In addition, at Fouli, some holes were designed to follow up

on previous RAB drilling where isolated anomalous results had been obtained but the orientation of the mineralised

trend was unclear.

At Fouli, the holes were drilled on lines either 200m or 400m apart, with drill hole spacing mostly at 50m, with a few

selected sections with holes spaced 25m apart. At Watamtonga, the line spacing was 200m and holes were placed 50m

apart along lines except for one central line where holes were 25m apart. The holes were designed to test the main

zone of artisanal workings and extended south to test the faulted granite contact.



Holes were angled at -60 degrees along north-south lines and drilled to 40m or refusal whichever came first. A few

holes were extended slightly beyond 40m where the geologist noted potentially mineralised material (e.g. quartz veins

or alteration). The orientation of the drill lines was determined using geological observations indicating strike and dip

of rock foliations and/or mineralised veins. All of the holes were assayed in 4m composites with samples above 0.5 g/t

Au re-analysed in 1m intervals by fire assay. Analytical standards and blanks were inserted alternately every 25th

sample and no QC problems were identified. Average assays of plus 1g/t Au intercepts derived from the 1m re-assay

program are provided in Table 1.

RAB is primarily a geochemical method designed to provide a reliable indication of bedrock geochemical anomalism.

RAB assay results cannot be used for JORC resource calculations because of the potential for inter-sample

contamination. Nonetheless, they do give some indication of the likely tenor of gold mineralisation. In this RAB

program, the holes provided less than 50% overlap along lines so there is substantial additional potential for untested

gold mineralisation between drill holes along each drill line.

At Fouli, the RAB program indicated a somewhat sinuous bedrock gold geochemical anomaly extending in a north

easterly direction over a distance of at least 1.7 km (Figure 10). This zone is open to the north-east where there is no

outcrop. A new zone associated with a west north westerly oriented cross structure may be present at the western

extremity of the drill grid.

Figure 10: Fouli prospect – contours of averaged RAB drill intercepts below 4m. Results from both the PD RAB and

the earlier ElDore drilling are shown. Contour intervals are 50ppb Au. The contour plot is superimposed on the

magnetic ―worm‖ plot to show the coincidence with the deep NE trending cross-fault. Note also a second zone

appearing on the westernmost RAB line coincident with a WNW cross structure noted previously.

The overall control on the Fouli mineralised zone is now clear, however it is possible that ore lenses are oriented in an

east-west to east-south-east direction possibly along the foliation direction and/or rock contacts. RC drilling to follow

up these results will be carried out in the next field season. Bedrock sampling using a power auger rig to test for

further extensions of the north-eastern and western extension of the RAB anomalous zones will commence

immediately after the rainy season and may provide additional RC drill targets.

At Watamtonga (Figure 11), the overall tenor was weaker, although holes did terminate at generally shallower depths

so coverage was somewhat less.



Figure 11: Watamtonga prospect – contours of averaged RAB drill intercepts below 4m superimposed on the results

of the Anmercosa soil sampling. PD RAB holes are marked as small black diamonds. Contour intervals are 25ppb Au.

Hole

number

From

(m)

To

(m)

Interval

(m)

Average

(g/t Au)

Hole

number

From

(m)

To

(m)

Interval

(m)

Average

(g/t Au)

Fouli

prospect

FORAB106

18 21 3 9.4

FORAB009 12 14 2 1.9 FORAB107 21 22 1 1.0

FORAB009 19 20 1 1.8 FORAB109 14 16 2 1.4

FORAB009 22 23 1 1.1 FORAB112 25 27 2 1.4

FORAB011 35 39 4 1.4 FORAB113 21 23 2 1.1

FORAB053 32 33 1 4.2 FORAB113 26 27 1 1.0

FORAB068 8 9 1 2.3 FORAB117 24 25 1 1.7

FORAB073 1 2 1 4.1 FORAB123 38 42 4 1.9

FORAB073 10 11 1 2.0 FORAB130 30 31 1 1.1

FORAB074 2 3 1 1.4 FORAB130 34 35 1 1.3

FORAB078 12 15 3 1.5 FORAB134 13 14 1 1.4

FORAB079 26 31 5 2.3 FORAB135 15 16 1 1.7

FORAB080 5 8 3 1.2 FORAB140 9 11 2 1.3

FORAB081 12 27 15 2.3 FORAB151 15 17 2 2.2

FORAB082 13 18 5 1.2 Watamtonga

prospect

FORAB090 20 21 1 3.1 WARAB007 26 30 4 2.4

FORAB095 31 32 1 1.1 WARAB040 11 12 1 1.0

Table 1 – RAB drill intercepts above 1 g/t Au



New Artisanal Discovery – Sirba Permit

Within the Laterite Hill trend (Figure 1), a substantial new artisanal mining site or orpaillage developed in the last six

weeks of the March 2010 quarter. When the PD geologists were mapping through the area, there were less than 100

people carrying out dry blowing of surface material. Since then, the artisanal miners have discovered a new deposit of

gold bearing gravels at the base of approximately 5m of alluvium. The number of people on site has swelled to

between 500 and a 1000 (see Figure 12) covering an area some 600m long and 200m wide. Gold being derived from

the site is quite coarse (see inset in Figure 12). The source of the gold is not known and may be quite distant from the

current site, however the orpaillage seems to overly part of the Sirba Shear trend so there is significant hope that it is

derived from a nearby primary gold deposit. The thickness of the alluvium reinforces PD‟s view that surface sampling

has not been effective in this area. While some RAB drilling may be carried out near the Laterite Hill (or Koundi)

prospect itself, the entire area is too large to be tested cost effectively with RAB, so a program of power auger drilling

is planned over the 10km long Laterite Hill zone early in the next field season, which commences in November.

Figure 12: New Tamboana artisanal working site

The information in this report that relates to exploration, mineral resources or ore reserves is based on information compiled by

Mr Paul Roberts (BSc, MSc and FAIG) of Predictive Discovery and have been by reviewed by Mr Peter Cook (B.AppSc.) MSc

(Min Econ.) MAusIMM who is a consultant/advisor to ElDore Mining Corporation Limited. Mr Cook has sufficient experience

which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking

to qualify as a competent person as described by the 2004 Edition of the ―Australasian Code for Reporting of Exploration Results,

Mineral Resources and Ore Reserves. Mr Cook consents to the inclusion in this report of the matters based on his information in

the form and context in which they appear.



Mt Hagen JV (Earning 60%)

In January 2010, the Company executed an agreement with Pacific Niugini Limited (ASX:PNR) to earn a 60%

interest in its Mt Hagen Project EL1613, located immediately North of the town of Mt Hagen, the capital of the

Western Highlands Province of Papua New Guinea. The EL covers an area of approximately 855 square kilometers in

the highly prospective Highlands province.

The Company has the right to earn a 60% interest in the project by spending A$2.0 million on exploration. Eldore

will spend a minimum of $500,000 in each year, including a minimum of $500,000 in the first before it can withdraw.

The on-ground activities and technical management will be provided by a team of PNG national geologists and

specialists from Pacific Niugini Limited‟s wholly owned subsidiary, Pacific Niugini Minerals (PNG) Ltd.

EL1613 is located near Mt Hagen city in the Western Highlands Province, Papua New Guinea. Mt Hagen city is

Papua New Guineas, third largest city. Excellent road network exists, with infrastructure and other services easily

accessible from Mt Hagen.

The licence covers prospective areas of the northwest-southeast striking mineralized Bismarck Fault Zone corridor

which hosts numerous copper gold and other base-metal occurrences including the copper molybdenum Yandera

deposit (127MT @0.7% copper) which is being progressed to Prefeasibility Study.

Basement rocks consist of cretaceous to Upper Jurassic volcanic and metasediments. The metasediments complex

consists of greywacke, sandstones, siltstones, volcaniclastics and shale. These uncomformly overlay the Kubor

granodiorite. The volcanic comprises basic to intermediate agglomerates, volcanic breccia, tuff, basic lava and

volcaniclastics. The Kubor granodiorite and metasediments are both intruded by Miocene granodiorite and by

Pliocene diorites, dolerites, gabbro and microdiorites.

Gold, copper and molybdenum mineralisation occurs associated with diorite and dacite emplacement along the

Bismarck Fault and Bundi Zone Complex.

The Bismarck - Bundi Fault Zone is a major tectonic Fault Zone trending northwest - southeast. This Fault Zone is up

to 43km wide and has a strike length of 200km. The fault is an integral part of the New Guinea Mobile Belt (NMB)

development with its characteristic NW trending anatomising transverse faults.

The Bismarck and Bundi Fault Zone corridor towards the northern and northeastern margin of EL 1613, hosts

widespread occurrences of copper and molybdenum mineralisation with zinc and gold associations coincidental with

diorite intrusions.

There has been minor exploration on the area in the past and Pacific Niugini Minerals continues to compile historical

data. The Yandera copper molybdenum (127MT Cu equiv.) and Simbai gold deposits are located on the Bismarck

and the Bundi Fault Zones nearby and the Kuta epithermal gold and base metal prospect is located immediately south.

The Company believes the project has significant potential for the discovery of large porphyry copper–gold–

molybdenum deposits within the mineralised Bismarck Fault Zone and related late dioritic intrusives. In addition the

projects are highly prospective for the discovery of epithermal gold and base metal deposits within structurally

controlled environs.

A detailed aeromagnetic survey has been recently completed by the PNG Department of Mineral Resources which

reveals areas of significant promise for diorite intrusive stocks.

Eldore believes this is an excellent opportunity for the Company to get involved in copper and gold exploration in a

region which includes mature mining operations at Porgera and Ramu.



Figure 1: EL1613 Geology and Gold and Copper Occurrences

Exploration

In the March 2010 quarter, the first phase of exploration at the Mt Hagen Joint Venture returned significant assay

results including copper, gold, and molybdenum from float samples believed to be shedding from a porphyry copper

system.

The first phase of reconnaissance works has focused on the Paglum (centre of lease) and Kotna (northeast portion of

lease) areas. A total of 186 samples consisting of 120 stream sediment samples and 66 float samples were collected.

At Paglum, best rock chip (float) sample results included:

Sample 87706 – 1.22g/t Au, 18 g/t Ag, 0.36% Pb

Sample 85707 – 0.95% Cu, 80ppm Mo

Sample 85708 – 0.70% Cu, 54g/t Ag

Sample 85714 – 0.26 g/t Au, 11g/t Ag, 0.27% Pb, 0.15% Zn

Sample 85718 – 2.6% Cu, 0.20g/t Au, 321g/t Ag, 130ppm Mo

Sample 85720 – 0.45% Cu, 110ppm Mo, 0.014% Zn

Sample 85721 – 0.41% Cu, 0.16g/t Au, 93g/t Ag, 0.55%Pb, 0.27% Zn

Sample 85754 – 0.30% Cu, 0.087% Zn

Historical rock chip sampling data of the area by private explorer Regional Resources Pty Ltd (as recorded in

Company reports) had discovered porphyry copper-gold style mineralization with the best rock chip results returning:

1.56% Cu, 0.14 g/t Au

2.76% Cu, 0.35 g/t Au

3.08% Cu, 0.15 g/t Au

At Kotna, best results included:

Sample 85750 – 0.58% Cu, 1.29% Pb

Sample 85751 – 0.21% Cu, 0.035% Mo



In addition historic sampling data by Regional Resources Pty Ltd from this area had returned a best rock chip result 0f

1.37% Cu and 0.27% g/t Au.

Further sampling in both the Paglum and Kotna areas will be focused on identification of the source mineralisation in

outcrop with the aim of identifying a substantial porphyry system.

Figure 2: Significant float results

Stage 2 work program

Paglum Copper basemetal Anomaly.

Work during the June 2010 quarter focused on expanding on the copper and gold mineralisation located to outcrop.

Two sampling and mapping teams continued surface sampling and geological mapping of creek outcrops. A total of

5.0 kms, of creek exposure, 10km of ridge and spur soil sampling and 140m of manual trenching was completed with

364 soil and 160 rock samples collected and sent for analysis.

Best results received to date include:

2.53 % Cu ( in outcrop) in sample 86338

2.84 % Cu & 0.29 g/t Au (float) in sample 86326

1.61 % Cu & 0.26 g/t Au in sample 86323

0.29% Cu and 0.70 g/t Au, in sample 623748

0.15% Cu & 3.95 g/t Au in sample 623749

0.42 g/t Au in sample 623750

The Paglum area is underlain mostly by rocks of volcanic and sedimentary origin which have been intruded by

Miocene granodiorite and Pliocene diorites. A number of tensional structures trending northwest/southeast, parallel to

the Bismarck Fault Zone occur in the area. Gold, copper and base metal mineralisation are closely associated with the

northeast – southwest structures.



Figure 3: Significant Assay Results.

Figure 4: Regional trend of mineralized structures in outcrop

The information in this report relating to Mt Hagen exploration, mineral resources or ore reserves is based on information compiled

by Mr Peter Cook (B.AppSc.) MSc (Min Econ.) MAusIMM who is a consultant to Eldore Mining Corporation Limited and is the

Chairman of Pacific Niugini Limited. Mr Cook has sufficient experience which is relevant to the style of mineralisation and type of

deposit under consideration and to the activity which he is undertaking to qualify as a competent person as described by the 2004

Edition of the ―Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‖. Mr Cook advises a

company in which he is a shareholder is a shareholder of Eldore. Mr Cook consents to the inclusion in this report of the matters

based on his information in the form and context in which it appears.



Wyo Well Project (100%)

The Wyo Well Project is located in the Kurnalpi region of WA approximately 60km east north east of Kalgoorlie. The

Project is strategically located in greenstone terrain in close proximity to a number of significant nickel sulphide mines

and prospects, notably the Silver Swan mine, approximately 60km to the WNW of the project.

The project was acquired in January 2010. The consideration for the acquisition was satisfied by the issue of

15,000,000 ordinary fully paid shares in the capital of the Company.

Subsequently, the Company entered into a Farm-In Agreement with ASX-listed AusQuest Limited (“AusQuest”).

Under this Agreement, AusQuest can earn up to an 80% unencumbered beneficial interest in the nickel rights by

spending a total of $2.0 million on exploration and evaluation over a four year period.

At Wyo Well, leached gossanous material occurs at the base of an inferred channel within a komatiitic unit in a

geological setting akin to that at the high-grade Silver Swan nickel sulphide mine.

During the period under review, an RC drilling program was initiated to define the channel location at depth prior to

sighting a deeper drill-hole to test for buried accumulations of massive nickel sulphides within the channel.

A total of 14 holes for 1,962 metres were drilled along two sections positioned progressively down-dip of the mapped

location of the channel. Preliminary results suggest a channel in the basal contact of the komatiite has been intersected

however final confirmation awaits assay results.

Down-hole electromagnetic surveys (DHEM) within the deeper drill-holes are scheduled to commence in Q3 2010.



SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

During the financial year, the company:

entered into an agreement with Predictive Discovery Pty Ltd (PD) to farm-in on the Company‟s Burkina Faso

project by expending A$2,000,000 for a 60% interest. The agreement requires PD to undertake exploration

programs on the Burkina Faso properties, which after expending A$600,000 it can abandon or continue by

completing A$2 million in total by 2012;

reached agreement to acquire 100% of the Wyo Well Project at Kurnalpi in Western Australia, the consideration

for the acquisition being the issue and allotment of 15,000,000 ordinary fully paid shares;

executed an agreement with Pacific Niugini Limited to earn a 60% interest in its Mt Hagen Project EL1613,

located immediately North of the town of Mt Hagen, the capital of the Western Highlands Province of Papua

New Guinea. The EL covers an area of approximately 855 square kilometers in the highly prospective

Highlands province. The Company will have the right to earn a 60% interest in the project by spending

A$2,000,000 on exploration. Eldore will spend a minimum of A$500,000 in each year, including a minimum of

A$500,000 in the first before it can withdraw; and

executed an agreement with AusQuest Limited to farm-in to the company‟s Wyo Well Project at Kurnalpi in

Western Australia. AusQuest Limited can earn up to an 80% interest by expending A$2,000,000 over 4 years.

In the opinion of the directors, there were no other significant changes in the state of affairs of the consolidated entity

that occurred during the financial year under review not otherwise disclosed in this report or in the financial report.

EVENTS SUBSEQUENT TO BALANCE DATE

No matters or circumstances have arisen, since the end of the financial year, which significantly affected, or may

significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of

the consolidated entity in subsequent financial years, other than as outlined under the heading „Operating and

Financial Review‟ of this Report.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

The consolidated entity will continue to pursue its principal activity of exploration and evaluation, particularly in

respect to the Projects as more particularly outlined under the heading „Operating and Financial Review‟ of this

Report. The company will also continue to pursue other potential investment opportunities to enhance shareholder

value.

MEETINGS OF DIRECTORS

The numbers of meetings of directors (including meetings of committees of directors) held during the year and the

number of meetings attended by each director were as follows:

Board of Directors

Number eligible

to attend

Number

attended

A Hamilton 10 10

R Cotton 18 18

J Geary 11 11

T Izelaar 18 15

M Pawlitschek 1 1

A Waller 8 8



REMUNERATION REPORT (AUDITED)

This report details the nature and amount of remuneration for each director and executive of Eldore Mining

Corporation Limited. The information provided in the remuneration report includes remuneration disclosures that are

audited as required by the Corporations Act 2001 and its regulations.

For the purposes of this report Key Management Personnel of the Group are defined as those persons having authority

and responsibility for planning, directing and controlling the major activities of the group, directly or indirectly,

including any director (whether executive or otherwise) of the parent company, and includes five executives in the

parent group receiving the highest remuneration.

For the purposes of this report the term “executive” includes those key management personnel who are not directors of

the parent company.

Remuneration Committee

The full Board carries out the role and responsibilities of the Remuneration Committee and is responsible for

determining and reviewing the compensation arrangements for the Directors themselves, the Managing Director and

any Executives.

Executive remuneration is reviewed annually having regard to individual and business performance, relevant

comparative remuneration and internal and independent external advice.

A. Remuneration policy

The board policy is to remunerate directors at market rates for time, commitment and responsibilities. The board

determines payments to the directors and reviews their remuneration annually, based on market practice, duties and

accountability. Independent external advice is sought when required. The maximum aggregate amount of non-

executive directors‟ fees that can be paid is subject to approval by shareholders in general meeting, from time to time.

Fees for non-executive directors are not linked to the performance of the consolidated entity. However, to align

directors‟ interests with shareholders interests, the directors are encouraged to hold shares in the company.

The company‟s aim is to remunerate at a level that will attract and retain high-calibre directors and employees.

Company officers and directors are remunerated to a level consistent with the size of the company.

All remuneration paid to directors and executives is valued at the cost to the company and expensed.

The Company does not have a policy for limiting directors and executives exposure to compensation shares or

options.

B. Remuneration structure

In accordance with best practice corporate governance, the structure of non-executive director and executive

compensation is separate and distinct.



REMUNERATION REPORT (AUDITED) CONTINUED

Non-executive Director Compensation

Objective

The Board seeks to set aggregate compensation at a level that provides the company with the ability to attract and

retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.

Structure

The Constitution and the ASX Listing Rules specify that the aggregate fees of non-executive directors shall be

determined from time to time by a general meeting. An amount not exceeding the amount determined is then divided

between the directors as agreed. The latest determination approved by shareholders was an aggregate fees of $250,000

per year.

The amount of aggregate compensation sought to be approved by shareholders and the manner in which it is

apportioned amongst directors is reviewed annually. The Board considers advice from external consultants as well as

the fees paid to non-executive directors of comparable companies when undertaking the annual review process. Non-

Executive Directors‟ remuneration may include an incentive portion consisting of options, as considered appropriate

by the Board, which may be subject to Shareholder approval in accordance with ASX listing rules.

Separate from their duties as Directors, the Non-Executive Directors undertake work for the Company directly related

to the evaluation and implementation of various business opportunities, including mineral exploration/evaluation and

new business ventures, for which they receive a daily rate. These payments are made pursuant to individual

agreement with the non-executive Directors and are not taken into account when determining their aggregate

remuneration levels.

Executive Compensation

Objective

The entity aims to reward executives with a level and mix of compensation commensurate with their position and

responsibilities within the entity so as to:

reward executives for company and individual performance against targets set by appropriate benchmarks;

align the interests of executives with those of shareholders;

link rewards with the strategic goals and performance of the company; and

ensure total compensation is competitive by market standards.

Structure

In determining the level and make-up of executive remuneration, the Board negotiates a remuneration to reflect the

market salary for a position and individual of comparable responsibility and experience. Due to the limited size of the

Company and of its operations and financial affairs, the use of a separate remuneration committee is not considered

appropriate. Remuneration is regularly compared with the external market by participation in industry salary surveys

and during recruitment activities generally. If required, the Board may engage an external consultant to provide

independent advice in the form of a written report detailing market levels of remuneration for comparable executive

roles.

Remuneration consists of a fixed remuneration and a long term incentive portion as considered appropriate.

Compensation may consist of the following key elements:

Fixed Compensation; and

Variable Compensation;

Short Term Incentive (STI); and

Long Term Incentive (LTI).




Fixed Remuneration

The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the

position and is competitive in the market. Fixed remuneration is reviewed annually by the Board having regard to the

Company and individual performance, relevant comparable remuneration in the mining exploration sector and

external advice.

The fixed remuneration is a base salary or monthly consulting fee.

Variable Pay — Long Term Incentives

The objective of long term incentives is to reward directors/executives in a manner which aligns this element of

remuneration with the creation of shareholder wealth. The incentive portion is payable based upon attainment of

objectives related to the director‟s/executive‟s job responsibilities. The objectives vary, but all are targeted to relate

directly to the Company‟s business and financial performance and thus to shareholder value. Due to the exploration

phase of the Company current remuneration is not linked to performance conditions and the Board has not established

detailed performance conditions.

Long term incentives (LTI‟s) granted to directors/ executives are delivered in the form of options.

LTI grants to Executives are delivered in the form of employee share options. These options are issued at an exercise

price determined by the Board at the time of issue. The employee share options generally vest over a selected period.

The objective of the granting options is to reward Executives in a manner which aligns the element of remuneration

with the creation of shareholder wealth. As such LTI‟s are made to Executives who are able to influence the

generation of shareholder wealth and thus have an impact on the Company‟s performance. The Board feels that the

expiring date and exercise price of options currently on issue to the directors and the executives are sufficient to align

those of directors and executives with those of the shareholders. The Board will continue to monitor this policy to

ensure that it is appropriate for the Company in future years.

The level of LTI granted is, in turn, dependent on the Company‟s recent share price performance, the seniority of the

Executive, and the responsibilities the Executive assumes in the Company.

Typically, the grant of LTIs occurs at the commencement of employment or in the event that the individual receives a

promotion and, as such, is not subsequently affected by the individual‟s performance over time.

C. Employment contracts of directors and senior executives

The employment arrangements of directors and executives are not formalised in a contract of employment.

D. Details of remuneration for year

Directors

The following persons were directors of Eldore Mining Corporation Limited during the financial year:

Anthony Hamilton Chairman (non-executive) – appointed 20 January 2010

Ron Cotton Director (non-executive)

John Geary Director (non-executive) – appointed 13 January 2010

Tony Izelaar Director (non-executive)

Martin Pawlitschek Director (non-executive) – resigned 24 August 2009

Andrew Waller Chairman (non-executive) – resigned 20 January 2010




The following persons were directors of controlled entities during the financial year:

Craig Willis

Brian Thomas

Linton Scott

Trevor Gillard

Executives

The following persons were executives of Eldore Mining Corporation Limited during the financial year:

Neville Bassett Company Secretary – appointed 14 December 2007

There were no other persons that fulfilled the role of a key management person, other than those disclosed as

Executive Directors.

Remuneration

Details of the remuneration of each Director and named executive officer of the company, including their personally-

related entities, during the year was as follows:

Short Term

Benefits

Post

Employment

Share Based

Payments

Year Salary and

fees

Superannuat

ion

Options Total Remuneration

consisting of

options during

the year

Performance

Related

$ $ $ $ % %

Directors

A Hamilton (i)

Appointed 20/1/2010 2010

2009 101,986

- -

-

-

- 101,986

-

-

-

-

-

R Cotton

2010

2009 48,000

32,000

-

-

-

- 48,000

32,000

-

-

-

-

J Geary (ii) 2010

2009 25,000

-

-

-

-

- 25,000

-

-

-

-

-

T Izelaar

2010

2009 36,000

36,000

-

-

-

- 36,000

36,000

-

-

-

-

M Pawlitschek Resigned 24/8/2009

2010

2009

-

-

-

-

-

- -

-

-

-

-

-

A Waller Resigned 20/1/2010

2010

2009 68,877

275,791 -

-

-

- 68,877

275,791

-

-

-

- Executives

N Bassett

2010

2009 75,875

86,800

-

-

-

- 75,875

86,800

-

-

-

-

C Willis (iii) 2010

2009

140,000

30,000

-

-

-

- 140,000

30,000

-

-

-

-

B Thomas 2010

2009

-

50,000

-

-

-

- -

50,000

-

-

-

- Total 2010

2009 495,738

510,591 -

-

-

- 495,738

510,591

-

-

-

-

(i) The amount was paid to CMIH Enterprise Pty Ltd, a company controlled by A Hamilton.

(ii) The amount was paid to Covella Pty Ltd and Copley Pty Ltd , a company controlled by J Geary.

(iii) The amount was paid to Giarc Investments Pty Ltd, a company controlled by C Willis.

Details of related corporations

There were no performance related payments made during the year. Performance hurdles are not attached to

remuneration options; however the Board determines appropriate vesting periods to provide rewards over a period of

time to key management personnel.




E. Compensation options to key management personnel

No options were granted as equity compensation benefits to Directors and Executives during the year.

F. Shares issued to key management personnel on exercise of compensation options

No shares were issued to Directors and Executives on exercise of compensation options during the year.

DIRECTORS INDEMNIFICATION

The company has not, during or since the financial year, in respect of any person who is or has been an officer or

auditor of the company or a related body corporate:

(a) indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including

costs and expenses of successfully defending legal proceedings; or

(b) paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the

costs or expenses to defend legal proceedings.

SHARE OPTIONS

At the date of this report, the unissued ordinary shares of Eldore Mining Corporation Limited under option are as

follows

Grant

Date

Date of

Expiry

Exercise

Price

Number under

Option

17 October 2005 17 October 2010 $0.30 1,000,000

17 October 2005 17 October 2010 $0.3750 750,000

17 October 2005 17 October 2010 $0.4375 500,000

23 December 2009 30 September 2011 $0.03 35,115,384

Various 31 December 2012 $0.03 454,999,991

492,365,375

No person entitled to exercise these options had or has any right, by virtue of the option, to participate in any share

issue of any other body corporate.

ENVIRONMENTAL REGULATIONS

There have been no recorded incidents of non-compliance with any applicable international, national or local

declarations, treaties, conventions or regulations associated with environmental issues during the reporting period.

There have not been any known significant breaches of any environmental regulations during the year under review

and up until the date of this report.

PROCEEDINGS ON BEHALF OF COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on

behalf of the company, and no proceedings have been brought or intervened in on behalf of the company with leave of

the Court under section 237.

CORPORATE GOVERNANCE

In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Eldore

Mining Corporation Limited support and have adhered to the principles of corporate governance and have established

a set of policies and manuals for the purpose of managing corporate governance. The Company‟s detailed corporate

governance policy statement is contained in the section headed „Corporate Governance Statement‟ of the annual

report.



AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

The auditor‟s independence declaration for the year ended 30 June 2010, as required under section 307C of the

Corporations Act 2001, has been received and is included within the financial report.

Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor are

outlined in Note 4 to the financial statements. The directors are satisfied that the provision of non-audit services is

compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

The directors are of the opinion that the services do not compromise the auditor‟s independence as all non-audit

services have been reviewed to ensure that they do not impact the integrity and objectivity of the auditor and none of

the services undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110

Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.

Signed in accordance with a resolution of directors.

__________________________________________

A Hamilton

Chairman

Perth, Western Australia

Dated: 30 September 2010

Eldore Mining Corporation Limited 30

AUDITOR’S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF ELDORE MINING CORPORATION LIMITED

I declare that, to the best of my knowledge and belief, during the year ended Eldore Mining Corporation Limited there

have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation

to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Eldore Mining Corporation Limited and the entities it controlled during the year.

MACK & CO

N A CALDER

PARTNER

WEST PERTH

DATE: 30 SEPTEMBER 2010


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2010

Consolidated

Note

2010

$

2009

$

Revenue 2(a) 32,059 3,072

Other income 2(b) 32,049 -

Exploration and evaluation expenditure (12,745) -

Depreciation and impairment - (13,837)

Directors fees and benefits expense (419,863) (423,791)

Administration, consulting and other expenses 2(c) (952,855) (516,615)

Interest and finance costs (137,460) -

Loss before income tax expense (1,458,815) (951,171)

Income tax expense 3 - -

Net Loss for the year (1,458,815) (951,171)

Other comprehensive income

Exchange differences on translation of foreign operations 16,936 7,638

Total comprehensive loss for the year (1,441,879) (943,533)

Earnings per Share:

Basic and diluted earnings per share (cents per share) 5 (0.36) (0.51)

The accompanying notes form part of these financial statements.


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2010

Consolidated

Note

2010

$

2009

$

ASSETS

Current Assets

Cash and cash equivalents 6 405,185 125,490

Trade and other receivables 7 1,784,556 28,195

Total Current Assets 2,189,741 153,685

Non-Current Assets

Exploration and evaluation expenditure 8 3,043,682 2,620,655

Total Non-Current Assets 3,043,682 2,620,655

Total Assets 5,233,423 2,774,340

LIABILITIES

Current Liabilities

Trade and other payables 9 646,166 2,190,047

Total Current Liabilities 646,166 2,190,047

Total Liabilities 646,166 2,190,047

Net Assets 4,587,257 584,293

EQUITY

Issued capital 10 19,353,835 14,117,492

Reserves 11 1,026,768 801,332

Accumulated losses 12 (15,793,346) (14,334,531)

Total Equity 4,587,257 584,293



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Consolidated Issued

Capital

Accumulated

Losses

Options

Reserve

Foreign

Currency

Translation

Reserve

Total

$ $ $ $ $

Balance at 1 July 2008 12,736,054 (13,383,360) 801,332 (7,638) 146,388

Loss for the year (951,171) (951,171)


Foreign currency translation differences 7,638 7,638

Total comprehensive loss for the year - (951,171) - 7,638 (943,533)

Transactions with owners, recorded

directly in equity:

Securities issued during the year 1,381,438 - - - 1,381,438

Capital raising costs - - - - -

Total equity transactions 1,381,438 - - - 1,381,438

Balance at 30 June 2009 14,117,492 (14,334,531) 801,332 - 584,293

Loss for the year - (1,458,815) - - (1,458,815)


Foreign currency translation differences - - - 16,936 16,936

Total comprehensive loss for the year - (1,458,815) - 16,936 (1,441,879)

Transactions with owners, recorded

directly in equity:

Securities issued during the year 5,784,500 - 208,500 - 5,993,000

Capital raising costs (548,157) - - - (548,157)

Total equity transactions 5,236,343 - 208,500 - 5,444,843

Balance at 30 June 2010

19,353,835

(15,793,346)

1,009,832

16,936

4,587,257



CONSOLIDATED STATEMENT OF CASH FLOWS


Consolidated

Note

2010

$

2009

$

Inflows/

(Outflows)

Inflows/

(Outflows)

Cash flows from operating activities

Payments to suppliers and employees (2,102,152) (402,841)

Interest received 32,059 3,072

Net cash used in operating activities

6(i)

(2,070,093)

(399,769)

Cash flows from investing activities

Payments for exploration expenditure (171,275) (144,024)

Loan to other entity (1,750,000) -

Net cash on acquisition of controlled entity - 28,001

Net cash used in investing activities

(1,921,275)

(116,023)

Cash flows from financing activities

Proceeds from issue of shares 5,263,500 456,500

Payment of share issue costs (539,903) -

Proceeds from borrowings 295,000 15,000

Repayment of borrowings (747,534) -

Net cash provided by financing activities

4,271,063

471,500

Net increase/(decrease) in cash held 279,695 (44,292)

Cash at beginning of the financial year 125,490 174,237

Effect of exchange rate changes - (4,455)

Cash at end of the financial year

6

405,185

125,490



NOTES TO THE FINANCIAL STATEMENTS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Eldore Mining Corporation Limited (the "Company") is a company domiciled in Australia.

The address of the Company's registered office is 1186 Hay Street, West Perth WA 6055. The consolidated

financial statements of the Company as at and for the year ended 30 June 2010 comprise the Company and its

subsidiaries (together referred to as the "Group" and individually as "Group entities").

The Group primarily is involved in mining and exploration activity.

Basis of Preparation

The accounting policies set out below have been consistently applied to all years presented.

Statement of Compliance

The financial report is a general purpose financial report which has been prepared in accordance with Australian

Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting

Standards Board (AASB) and the Corporations Act 2001. The consolidated financial report of the Group and

the financial report of the Company comply with International Financial Reporting Standards (lFRSs) and

interpretations adopted by the International Accounting Standards Board (IASB).

The consolidated financial statements were authorised for issue by the Board of Directors on 17 September

2010.

Basis of Measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following

material items in the statement of financial position:

derivative financial instruments are measured at fair value

financial instruments at fair value through profit or loss are measured at fair value

available-for-sale financial assets are measured at fair value

liabilities for cash-settled share-based payment arrangements are measured at fair value

the defined benefit asset is measured as the net total of the plan assets, plus unrecognised past

service cost and unrecognised actuarial losses, less unrecognised actuarial gains and the present

value of the defined benefit obligation.

Functional and Presentation Currency

These consolidated financial statements are presented in Australian dollars, which is the Company's functional

currency.

Use of Estimates and Judgements

The preparation of financial statements in conformity with AASBs requires management to make judgements,

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimates are revised and in any future periods affected.




1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

Going Concern

The financial report has been prepared on the basis of accounting principles applicable to a going concern,

which assumes the commercial realisation of the future potential of the Company‟s and consolidated entity‟s

assets and the discharge of their liabilities in the normal course of business.

As disclosed in the financial report, the consolidated entity recorded an operating loss of $1,458,815 and a cash

outflow from operating activities of $2,070,093 for the year ended 30 June 2010 and at balance date, had net

current assets of $1,543,575.

The Board considers that the Company is a going concern and recognises that additional funding is required to

ensure that the Company can continue to fund the Group‟s operations for the 12 month period from the date of

this financial report.

The Directors believe after consideration of the above matters, there are reasonable grounds to believe that the

consolidated entity will be able to pay its debts as and when they become due and payable and is a going concern

because of the following factors:

The ability to issue additional under the Corporations Act 2001 and ASX Listing Rule 7.1 or otherwise;

and,

The Company‟s commitment to exploration expenditure is discretionary and expenditure requirements

are minimal.

Accordingly, the Directors believe that subject to prevailing equity market conditions, the Company will obtain

sufficient funding to enable it and the consolidated entities to continue as going concerns and that it is

appropriate to adopt that basis of accounting in the preparation of the financial report. Should the company be

unable to obtain sufficient funding as outlined above, there is significant uncertainty whether the Company and

the consolidated entity will continue as going concerns and therefore whether they will realise their assets and

extinguish their liabilities in the normal course of business and at the amounts stated in the financial report.

The financial statements do not include any adjustments relating to the recoverability and classification of

recorded asset amounts, or to the amounts or classification of liabilities that might be necessary should the

Company and the consolidated entity not be able to continue as going concerns.

Reporting Basis and Conventions

The financial statements have also been prepared on an accruals basis and are based on historical costs, except

for derivative financial instruments and available for-sale financial assets that have been measured at fair

value.

Critical Accounting Judgements, Estimates and Assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions

of future events. The key estimates and assumptions that have a significant risk of causing a material

adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

Share Based Payment Transactions

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the

equity instruments at the date at which they are granted. The fair value is determined by an internal valuation

using Black-Scholes option pricing model.





Exploration and Evaluation Costs

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.

These costs are carried forward in respect of an area that has not at balance sheet date reached a stage which

permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active

and significant operations in, or relating to, the area of interest are continuing.

Impairment of Exploration and Evaluation Assets and Investments in and Loans to Subsidiaries

The ultimate recoupment of the value of exploration and evaluation assets, the company‟s investment in

subsidiaries, and loans to subsidiaries is dependent on the successful development and commercial

exploitation, or alternatively, sale, of the exploration and evaluation assets.

Impairment tests are carried out on a regular basis to identify whether the asset carrying values exceed their

recoverable amounts. There is significant estimation and judgement in determining the inputs and assumptions

used in determining the recoverable amounts.

The key areas of judgement and estimation include:

Recent exploration and evaluation results and resource estimates;

Environmental issues that may impact on the underlying tenements;

Fundamental economic factors that have an impact on the operations and carrying values of assets and

liabilities.

Classification of Investments

The Company has decided to classify investments in listed securities as available for sale. These securities are

accounted for at fair value. Any increments or decrements in their value at year end are charged or credited to

the asset revaluation reserve.

Income Tax Expenses

Judgement is required in assessing whether deferred tax assets and liabilities are recognised on the balance

sheet. Deferred tax assets, including those arising from temporary differences, are recognised only when it is

considered more likely than not that they will be recovered, which is dependent on the generation of future

assessable income of a nature and of an amount sufficient to enable the benefits to be utilised.

Principles of Consolidation

A controlled entity is any entity Eldore Mining Corporation Limited has the power to control the financial and

operating policies of so as to obtain benefits from its activities.

A list of controlled entities is contained in Note 14 to the financial statements. All controlled entities have a

June financial year-end.

All inter-company balances and transactions between entities in the economic entity, including any unrealised

profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been

changed where necessary to ensure consistencies with those policies applied by the parent entity.

Where controlled entities have entered or left the economic entity during the year, their operating results have

been included/excluded from the date control was obtained or until the date control ceased.

Subsidiary acquisitions are accounted for using the purchase method of accounting. Investments in

subsidiaries are accounted for at cost in the individual financial statements of Eldore Mining Corporation

Limited.





Foreign Currency Translation

Both the functional and presentation currency of Eldore Mining Corporation Limited and its Australian

subsidiaries is Australian Dollars, while for the subsidiary with operations overseas, namely Birrimian Pty Ltd,

it is US Dollars.

Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling

at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are converted

at the rate of exchange ruling at the balance sheet date.

As at the reporting date the assets and liabilities of the subsidiaries operating overseas are translated into the

presentation currency of Eldore Mining Corporation Limited at the rate of exchange ruling at the balance sheet

date and the income statements are translated at the weighted average exchange rates for the period.

The exchange differences arising on the retranslation are taken directly to a separate component of equity. On

disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular

foreign operation is recognised in the income statement.

Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief

operating decision maker. The chief operating decision maker, who is responsible for allocating resources and

assessing performance of the operating segments, has been identified as the Board of Directors of the

Company.

Change in accounting policy

The Group has adopted AASB 8 Operating Segments from 1 July 2009. AASB 8 replaces AASB 114 Segment

Reporting. The new standard requires a „management approach‟, under which segment information is

presented on the same basis as that used for internal reporting purposes. This has not resulted in a change in the

number of reportable segments presented by the Group as operating segments are reported in a manner that is

consistent with internal reporting provided to the chief operating decision maker.

Income Tax

Current Tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the

taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or

substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or

asset) to the extent that it is unpaid (or refundable).

Deferred tax

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of

assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences:

except where the deferred income tax liability arises from the initial recognition of an asset or liability

in a transaction that is not a business combination and, at the time of the transaction, affects neither that

accounting profit nor taxable profit or loss; and

in respect of taxable temporary differences associated with investments in subsidiaries, associates and

interests in joint ventures, except where the timing of the reversal of the temporary differences will not

reverse in the foreseeable future.





Income Tax (continued)

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused

tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against

which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses

can be utilised:

except where the deferred income tax asset relating to the deductible temporary difference arises from

the initial recognition of an asset or liability in a transaction that is not a business combination and, at

the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

in respect of deductible temporary differences with investments in subsidiaries, associates and interests

in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the

temporary differences will reverse in the foreseeable future and taxable profit will be available against

which the temporary differences can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the

extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the

deferred income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year

when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or

substantively enacted at the balance sheet date.

Income taxes relating to items recognised directly in equity are recognised in equity are not in the income

statement.

Exploration and Evaluation Expenditure

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable

area of interest. These costs are carried forward only if they relate to an area of interest for which rights of

tenure are current and in respect of which:

such costs are expected to be recouped through successful development and exploitation or from sale of

the area; or

exploration and evaluation activities in the area have not, at balance date, reached a stage which permit

a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active

operations in, or relating to, the area are continuing.

Accumulated costs in respect of areas of interest which are abandoned are written off in full against profit in

the year in which the decision to abandon the area 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.

The recoverability of the carrying amount of the exploration and development assets is dependent on the

successful development and commercial exploitation or alternatively sale of the respective areas of interest.





Rehabilitation, Restoration and Environmental Costs

Long-term environmental obligations are based on the Company‟s environmental management plans, in

compliance with current environmental and regulatory requirements.

The costs will include obligations relating to reclamation, waste site closure, plant closure and other costs

associated with the restoration of the site, when relevant.

Full provision is made based on the net present value of the estimated cost of restoring the environmental

disturbance that has been incurred as at the balance date. Increases due to additional environmental

disturbance (to the extent that it relates to the development of an asset) are capitalised and amortised over the

remaining lives of the mines.

Annual increases in provision relating to the change in the present value of the provision are accounted for in

earnings.

The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in

legislation, technology or other circumstances. Cost estimates are not reduced by the potential proceeds from

sale of assets or from plant clean-up at closure.

Property, Plant and Equipment

Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses.

Impairment

The carrying amounts of plant and equipment are reviewed for impairment when events or changes in

circumstances indicate the carrying value may not be recoverable. For an asset that does not generate largely

independent cash flows, the recoverable amount is determined for the cash-generating unit to which the asset

belongs. If any such indication exists and where the carrying values exceed the recoverable amount, the assets

or cash generating units are written down to their recoverable amount.

The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks specific to the

asset. Impairment losses are recognised in the income statement in the cost of sales line item.

Depreciation

The depreciable amount of all fixed assets is depreciated on a diminishing value basis over their useful lives to

the Company commencing from the time the asset is held ready for use. The depreciation rates used for each

class of depreciable assets vary from 20% to 40%.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are

included in the income statement.





Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but

not the legal ownership, are transferred to entities in the Company are classified as finance leases.

Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum

lease payments, including any guaranteed residual values.

Leased assets are depreciated on a diminishing value basis over their estimated useful lives where it is likely

that the Company will obtain ownership of the asset or over the term of the lease.

Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the

period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are

charged as expenses in the periods in which they are incurred.

Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing the net loss attributable to members for the

reporting period, after excluding any costs of servicing equity, by the weighted average number of ordinary

shares of the Company, adjusted for any bonus issue.

Diluted EPS is calculated as net loss attributable to members, adjusted for, costs of servicing equity (other than

dividends) and preference share dividends; the after tax effect of dividends and interest associated with dilutive

potential ordinary shares that would have been recognised as expenses; and other non-discretionary changes in

revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided

by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any

bonus element.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and

the revenue can be reliably measured. The following specific recognition criteria must also be met before

revenue is recognised:

Interest

Revenue is recognised as the interest accrues.

Cash and Cash Equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits

with an original maturity of three months or less.

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as

defined above, net of outstanding bank overdrafts.





Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST

incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is

recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and

payables in the Balance Sheet are shown inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in

the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows

arising from investing and financing activities which are recoverable from, or payable to, the ATO are

classified as operating cash flows.

Impairment

(i) Financial Assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence

that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one

or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the

difference between its carrying amount, and the present value of the estimated future cash flows

discounted at the effective interest rate. An impairment loss in respect of an available-for-sale financial

asset is calculated by reference to its fair value. Individually significant financial assets are tested for

impairment on an individual basis. The remaining financial assets are assessed collectively in groups

that share similar credit risk characteristics. All impairment losses are recognised either in the income

statement or revaluation reserves in the period in which the impairment arises.

(ii) Exploration and Evaluation Assets

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that

the carrying amount of the asset may exceed its recoverable amount at the reporting date.

Exploration and evaluation assets are tested for impairment in respect of cash generating units, which are

no larger than the area of interest to which the assets relate.

(iii) Non-Financial Assets Other Than Exploration and Evaluation Assets

The carrying amounts of the Consolidated Entity‟s non-financial assets, are reviewed at each reporting

date to determine whether there is any indication of impairment. If any such indication exists then the

asset‟s recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or

that are not yet available for use, the recoverable amount is estimated at each reporting date.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair

value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their

present value using a pre-tax discount rate that reflects current market assessments of the time value of

money and the risks specific to the asset.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds

its recoverable amount. Impairment losses are recognised in the income statement. Impairment losses

recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any

goodwill allocated to the units, then to reduce the carrying amount of the other assets in the unit on a pro

rata basis.





Impairment (continued)

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses

recognised in prior periods are assessed at each reporting date for any indications that the loss has

decreased or no longer exits. An impairment loss is reversed if there has been a change in the estimates

used to determine the recoverable amount. An impairment loss is reversed only to the extent that the

asset‟s carrying amount does not exceed the carrying amount that would have been determined, net of

depreciation or amortisation, if no impairment loss has been recognised.

Investments

All investments are initially recognised at cost, being the fair value of the consideration given and including

acquisition charges associated with the investment.

After initial recognition, investments, which are classified as held for trading and available-for-sale, are

measured at fair value. Gains or losses on investments held for trading are recognised in the income statement.

Gains or losses on available-for-sale investments are recognised as a separate component of equity until the

investment is sold, collected or otherwise disposed of, or until the investment is determined to be impaired, at

which time the cumulative gain or loss previously reported in equity is included in the income statement.

For investments that are actively traded in organised financial markets, fair value is determined by reference to

Stock Exchange quoted market bid prices at the close of business on the balance sheet date.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a

past event, it is probable that an outlay of resources embodying economic benefits will be required to settle the

obligation and a reliable estimate can be made of the amount of the obligation.

Where the Company expects some or all of a provision to be reimbursed, for example under an insurance

contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually

certain. The expense relating to any provision is presented in the income statement net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected

future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and,

where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision

due to the passage of time is recognised as a finance cost.

Employee Benefits

Provision is made for the Company‟s liability for employee benefits arising from services rendered by

employees to balance date. Employee benefits expected to be settled within one year together with

entitlements arising from wages and salaries, annual leave and sick leave which will be settled after one year,

have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.

Other employee benefits payable later than one year have been measured at the present value of the estimated

future cash outflows to be made for those benefits.

Contributions are made by the Company to employee superannuation funds and are charged as expenses when

incurred.





Share-Based Payment Transactions

Equity settled transactions:

The Group provides benefits to executive directors, employees and consultants of the Group in the form of

share-based payments, whereby those individuals render services in exchange for shares or rights over shares

(equity-settled transactions).

When provided, the cost of these equity-settled transactions with these individuals is measured by reference to

the fair value of the equity instruments at the date at which they are granted. The fair value is determined using

a binomial model.

In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions

linked to the price of the shares Eldore Mining Corporation Limited (market conditions) if applicable.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the

period in which the performance and/or service conditions are fulfilled, ending on the date on which the

relevant individuals become fully entitled to the award (the vesting period).

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date

reflects (i) the extent to which the vesting period has expired and (ii) the Group‟s best estimate of the number of

equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance

conditions being met as the effect of these conditions is included in the determination of fair value at grant date.

The income statement charge or credit for a period represents the movement in cumulative expense recognised

as at the beginning and end of that period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only

conditional upon a market condition.

If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any

expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for

the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new

award are treated as if they were a modification of the original award, as described in the previous paragraph.

Trade and Other Payables

Liabilities for trade creditors and other amounts are carried at cost which is the fair value of consideration to be

paid in the future for goods and services received, whether or not billed to the Group.

Payables to related parties are carried at the principal amount. Interest, when charged by the lender, is

recognised as an expense on an accrual basis.

Issued Capital

Ordinary shares are classified as equity.

Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of

the share proceeds received.





Trade and Other Receivables

Trade receivables, which generally have 30-90 day terms, are recognised initially at fair value and

subsequently measured at amortised cost using the effective interest method, less an allowance for any

uncollectible amounts.

Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible

are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that

the group will not be able to collect the debt.

New Standards and Interpretations Not Yet Adopted

The following standards, amendments to standards and interpretations have been identified as those which may

impact the entity in the period of initial application. They are available for early adoption at 30 June 2010, but

have not been applied in preparing this financial report.

AASB 9 Financial Instruments 6 includes requirements for the classification and measurement of financial

assets resulting from the first part of Phase 1 of the project to replace AASB 139 Financial Instruments:

Recognition and Measurement. AASB 9 will become mandatory for the Group's 30 June 2014 financial

statements. Retrospective application is generally required, although there are exceptions, particularly if

the entity adopts the standard for the year ended 30 June 2012 or earlier. The Group has not yet

determined the potential effect of the standard.

AASB 124 Related Party Disclosures (revised December 2009) simplifies and clarifies the intended

meaning of the definition of a related party and provides a partial exemption from the disclosure

requirements for government-related entities. The amendments, which will become mandatory for

Group's 30 June 2012 financial statements, are not expected to have any impact on the financial

statements.

AASB 2009-5 Further amendments to Australian Accounting Standards arising from the Annual

Improvement Process affect various AASBs resulting in minor changes for presentation, disclosure,

recognition and measurement purposes. The amendments, which become mandatory for the Group's 30

June 2011 financial statements, are not expected to have a significant impact on the financial statements.

AASB 2009-8 Amendments to Australian Accounting Standards - Group Cash settled Share-based

Payment Transactions resolves diversity in practice regarding the attribution of cash-settled share-based

payments between different entities within a group. As a result of the amendments AI 8 Scope of AASB 2

and AI 11 AASB 2 - Group and Treasury Share Transactions will be withdrawn from the application date.

The amendments, which become mandatory for the Group's 30 June 2011 financial statements, are not

expected to have a significant impact on the financial statements.

AASB 2009-10 Amendments to Australian Accounting Standards - Classification of Rights Issue [AASB

132] (October 2010) clarify that rights, options or warrants to acquire a fixed number of an entity's own

equity instruments for a fixed amount in any currency are equity instruments if the entity offers the rights,

options or warrants pro-rata to all existing owners of the same class of its own non-derivative equity

instruments. The amendments, which will become mandatory for the Group's 30 June 2011 financial

statements, are not expected to have any impact on the financial statements.

AASB 2009-14 Amendments to Australian Interpretation - Prepayments of a Minimum Funding

Requirement -AASB 14 make amendments to Interpretation 14 AASB 119 - The Limit on a Defined

Benefit Asset Minimum Funding Requirements removing an unintended consequence arising from the

treatment of the prepayments of future contributions in some circumstances when there is a minimum

funding requirement. The amendments will become mandatory for the Group's 30 June 2012 financial

statements, with retrospective application required. The amendments are not expected to have any impact

on the financial statements.

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments addresses the accounting by an

entity when the terms of a financial liability are renegotiated and result in the entity issuing equity

instruments to a creditor of the entity to extinguish all or part of the financial liability. IFRIC 19 will

become mandatory for the Group's 30 June 2011 financial statements, with retrospective application

required. The Group has not yet determined the potential effect of the interpretation.





Capital management

The group‟s objectives when managing capital are to safeguard the group‟s ability to continue as a going

concern, so as to maintain a strong capital base sufficient to maintain future exploration and development of its

projects. In order to maintain or adjust the capital structure, the group may return capital to shareholders, issue

new shares or sell assets for in-specie distributions.

The group‟s focus has been to raise sufficient funds through equity to fund exploration and evaluation

activities. The group monitors capital on the basis of the gearing ratio, however there are no external

borrowings as at balance date. Capital includes accumulated profits and fair value reserve.

The group encourages employees to be shareholders through the issue of free share options to employees.

There were no changes in the group‟s approach to capital management during the year. Neither the Company

nor any of its subsidiaries are subject to externally imposed capital requirements.

Consolidated Consolidated

2010 2009

$ $

Capital Risk Management

Total liabilities 646,166 2,190,047

Less: cash and cash equivalents (405,185) (125,490)

Net cash and cash equivalents deficiency 240,981 2,064,557

Total equity 4,587,257 584,293

Debt to equity ratio at 30 June 5% 353%




Consolidated

2010

$

2009

$

2. REVENUE AND EXPENSES

(a) Revenue

Interest received – other corporations 32,059 3,072

(b) Other income

Foreign exchange gains (net) 32,049 -

(c) Administration, consulting and other expenses

Loss has been determined after the following specific expenses:

Corporate consulting fees 496,566 86,800

Audit fee 43,000 84,200

ASX & registry fees 77,525 28,099

Office rent 46,000 36,000

Accounting fees 28,200 28,200

Other expenses 261,564 253,316

952,855 516,615

3. INCOME TAX EXPENSE

(a) Income Tax Expense

The income tax expense for the year differs from the prima facie

tax as follows:

Loss before income tax (1,458,815) (951,171)

Prima facie income tax benefit @ 30% 437,645 285,351

Tax effect of non-deductible items - -

Deferred tax assets not brought to account (437,645) (285,351)

Total income tax expense - -

(b) Deferred Tax Assets

Deferred tax assets not brought to account arising from tax

losses, the benefits of which will only be realised if the

conditions for deductibility set out in Note 1 occur:

1,425,870

988,225

There are no franking credits available to the Group.




Consolidated

2010

$

2009

$

4. AUDITORS REMUNERATION

Amounts, received or due and receivable by auditor, Mack &

Co, for:

- auditing or reviewing the financial report 43,000 45,000

- Other services - 1,200

43,000 46,200

Amounts, received or due and receivable by previous auditor,

Ernst & Young, for:

- auditing or reviewing the financial report - 38,000

- Other services - -

- 38,000

Cents Cents

5. EARNINGS PER SHARE (EPS)

Basic and diluted earnings per share

(0.36)

(0.51)

The earnings and weighted average number of ordinary shares

used in the calculation of basic and dilutive earnings per share is

as follows:

Earnings – Net loss for year (1,458,815) (951,171)

No. No.

Weighted average number of ordinary shares used in the

calculation of basic and dilutive EPS

403,305,997

187,806,891

The options are not considered in dilutive EPS as the company is in a loss making position.

Consolidated

2010

$

2009

$

6. CASH AND CASH EQUIVALENTS

Cash at bank and on hand 405,185 125,490

Cash at bank earns interest at floating rates based on daily bank deposit rates.

(i) Reconciliation of loss for the year to net cash flows used in

operating activities:

2010

$

2009

$

Loss for the year (1,458,815) (951,171)

Depreciation - 13,837

Borrowing costs 137,460 -

Exploration expenditure 12,745 -

Foreign exchange (gain) loss (32,049) 12,092

Changes in assets and liabilities

Receivables (26,115) (9,630)

Payables (703,319) 535,103

Net cash flows (used in) operating activities (2,070,093) (399,769)




6. CASH AND CASH EQUIVALENTS CONTINUED

(ii) Non-cash financing and investing activities

During the year the company:

(a) issued 15,000,000 ordinary fully paid shares at an issue price of 1 cent each as consideration for the

acquisition of a mining tenement; and

(b) issued 50,000,000 ordinary fully paid shares at an issue price of 1 cent each in satisfaction of outstanding

loan funds.

During the previous financial year, the company acquired 100% of the issued capital of Knights Landing Ltd and

Birrimian Pty Ltd, the consideration being the issue of 50,221,900 ordinary fully paid shares, inclusive of

transaction facilitation fees. The fair value of the consideration at date of acquisition was $1,004,438. Refer to

Note 14 Business Combinations.

Consolidated

2010

$

2009

$

7. TRADE AND OTHER RECEIVABLES

Current

Loan to other entity 1,735,000 -

GST recoverable 33,014 18,195

Other receivables 16,542 10,000

1,784,556 28,195

Terms and conditions relating to the above financial instruments:

Loan to other entity is repayable within 90 days of the date of the advance, together with a facility fee of

$200,000.

Other receivables are non-interest bearing and generally repayable within 30 days.

Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair

value.

Consolidated

Note

2010

$

2009

$

8. EXPLORATION AND EVALUATION EXPENDITURE

Expenditure brought forward 2,620,655 -

Tenement acquired from acquisition of controlled entity 14 - 2,476,631

Tenement acquisition 6(ii)(a) 150,000 -

Expenditure incurred 285,772 144,024

Expenditure written off (12,745)

Allowance for impairment - -

Expenditure carried forward 3,043,682 2,620,655

The ultimate recoupment of the mining tenements, exploration and evaluation expenditure carried forward is

dependent upon the successful development and commercial exploitation and/or sale of the relevant areas of

interest, at amounts at least equal to book value.




Consolidated

2010

$

2009

$

9. TRADE AND OTHER PAYABLES

Current

Trade payables and accruals (i)

- Deferred

- Other

-

383,519

1,600,524

30,358

Owing under contract of sale (ii) 262,647 559,165

646,166 2,190,047

(i) Trade creditors are non-interest bearing and are normally settled on 30 day terms. Deferred trade creditors

have undertaken to not demand payment of their debts until the Company has sufficient funds to be able to

meet its ongoing financial commitments. Due to the short term nature of these payables, their carrying

value is assumed to approximate their fair value.

(ii) Owing under contract of sale represents the final instalment outstanding pursuant to the agreement for the

acquisition of Birrimian Pty Ltd as noted in Note 14 Business Combinations.

10. ISSUED CAPITAL

(a) Issued and paid up capital

Ordinary shares fully paid 19,353,835 14,117,492

Number $

(b) Movement in ordinary shares on issue

At 1 July 2008 143,345,284 12,736,054

Issue on acquisition of Knights Landing Ltd – 28/11/2008 25,000,000 500,000

Issue on acquisition of Birrimian Pty Ltd – 28/11/2008 19,221,900 384,438

Issue in satisfaction of facilitation fee – 28/11/2008 6,000,000 120,000

Issue for cash – 23/12/2008 29,000,000 377,000

Expenses of issue - -

At 1 July 2009 222,567,184 14,117,492

Issue for cash – 23/12/2009 6,115,384 79,500

Issue for cash – 23/12/2009 25,000,000 125,000

Issue for cash – 30/01/2010 37,804,000 378,040

Issue for cash – 11/03/2010 5,296,000 52,960

Issue for acquisition of mining tenement – 11/03/2010 15,000,000 150,000

Issue for cash – 15/03/2010 449,900,002 4,499,000

Issue in satisfaction of loan funds – 15/04/2010 50,000,000 500,000

Expenses of issue - (548,157)

At 30 June 2010 811,682,570 19,353,835

(c) Share Options

At the end of the year, the following options over unissued ordinary shares were outstanding:

1,000,000 unlisted options expiring 17 October 2010 at an exercise price of 30 cents each.

750,000 unlisted options expiring 17 October 2010 at an exercise price of 37.5 cents each.

500,000 unlisted options expiring 17 October 2010 at an exercise price of 43.75 cents each.

35,115,384 unlisted options expiring 30 September 2011 at an exercise price of 3 cents each.

454,999,991 listed options expiring 31 December 2012 at an exercise price of 3 cents each.

35,115,384 unlisted options expiring 30 September 2011 at an exercise price of 3 cents each and

454,999,991 listed options expiring 31 December 2012 at an exercise price of 3 cents each were granted

during the financial year. No options were exercised and 68,700,000 options exercisable at 4 cents each

lapsed during the financial year.




10. ISSUED CAPITAL CONTINUED

(d) Terms and conditions of contributed equity

Ordinary shares have the right to receive dividends as declared and, in the event of winding up the

company, to participate in proceeds from the sale of all surplus assets in proportion to the number of and

amounts paid up on shares held.

Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the company.

Consolidated

2010

$

2009

$

11. RESERVES

Option reserve 1,009,832 801,332

Foreign currency translation reserve 16,936 -

1,026,768 801,332

Option reserve:

Nature and purpose of reserve

The option issue reserve is used to accumulate amounts received on the issue of options and records items

recognised as expenses on valuation of share options.

Movements in reserve

Opening balance 1 July 801,332 801,332

Issue of options for cash 208,500 -

Closing balance 30 June 1,009,832 801,332

2010

No

2009

No

Number of options:

Opening balance 1 July 70,950,000 70,950,000

Issue of options for cash 490,115,375 -

Options expired during the year (68,700,000) -

Closing balance 30 June 492,365,375 70,950,000

Foreign currency translation reserve:

Nature and purpose of reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of

the financial statements of foreign subsidiaries.

Movements in reserve

Opening balance 1 July - (7,638)

Currency translation differences 16,936 7,638

Closing balance 30 June 16,936 -

12. ACCUMULATED LOSSES

Balance at 1 July (14,334,531) (13,383,360)

Net loss attributable to members (1,458,815) (951,171)

Balance at 30 June (15,793,346) (14,334,531)




13. COMMITMENTS

Share Sale Deed

Pursuant to a Share Sale Deed for the acquisition of Birrimian Pty Ltd, the consolidated entity has a commitment to

issue further ordinary fully paid shares as consideration for the acquisition of all the issued capital of Birrimian Pty

Ltd upon a feasibility study with respect to any of the mining tenements held by Birrimian Pty Ltd becoming

bankable and an offer being made to Knights Landing Ltd by a recognised resource financier on terms which are

acceptable to Knights Landing Ltd in its absolute discretion ("Feasibility Study Condition"). The number of

Eldore Shares to be issued in the second tranche shall be equal to US$2,000,000 worth of Eldore Shares based

on the conversion rate stipulated by the Reserve Bank of Australia on the date the Feasibility Study Condition is

achieved, at a deemed issue price equal to the volume weighted average price of fully paid ordinary shares in the

capital of Eldore trading on ASX in the 30 days prior to the achievement of the Feasibility Study Condition.

Exploration Commitments

The company has certain obligations to perform minimum exploration work and to expend minimum amounts

of money on such work on mining tenements. These obligations may be varied from time to time subject to

approval and are expected to be fulfilled in the normal course of the operations of the Group. These

commitments have not been provided for in the accounts. Due to the nature of the Group‟s operations in

exploring and evaluating areas of interest, it is difficult to accurately forecast the nature and amount of future

expenditure beyond the next year. Expenditure may be reduced by seeking exemption from individual

commitments, by relinquishment of tenure or any new joint venture arrangements. Expenditure may be

increased when new tenements are granted or joint venture agreements amended. The minimum expenditure

commitment on the tenements is:

Consolidated 2010

$

2009

$

Not later than one year 591,645 462,980

If the company decides to relinquish certain leases and/or does not meet these obligations, assets recognised in

the balance sheet may require review to determine the appropriateness of carrying values. The sale transfer or

farm-out of exploration rights to third parties will reduce or extinguish these obligations.

14. BUSINESS COMBINATIONS

During the financial year ended 30 June 2009, the company acquired 100% of the voting shares of Knights

Landing Ltd and facilitated the acquisition by Knights Landing Ltd of 100% of the voting shares of Birrimian Pty

Ltd.

The total cost of the combination was $1,004,438 ($620,000+$384,438) and comprised an issue of equity

instruments and the payment of cash. The Group issued 50,221,900 ordinary fully paid shares, being 31,000,000

shares in respect to Knights Landing Ltd and 19,221,900 shares in respect to Birrimian Pty Ltd, with an issue price

based on the quoted price of shares at the date of exchange.




14. BUSINESS COMBINATIONS CONTINUED

The fair value of the identifiable assets and liabilities of Knights Landing Ltd and its controlled entity as at the date

of acquisition were:

Note

Recognised on

acquisition

$

Carrying

Value

$

Cash and cash equivalents 28,001 28,001

Trade and other receivables 12,062 12,062

Tenement interests, exploration and evaluation expenditure 8 2,476,631 480,000

Trade and other payables (953,091) (953,091)

Fair value of identifiable net assets 1,563,603 (433,028)

Cost of the combination:

Deferred cash consideration – Birrimian Pty Ltd 559,165

Shares issued, at fair value

- Knights Landing Ltd

- Birrimian Pty Ltd

620,000

384,438

Direct costs relating to the acquisition -

Total cost of the combination 1,563,603

The cash inflow (outflow) on acquisition is as follows:

Net cash acquired with subsidiary 28,001

Cash paid -

Net cash inflow 28,001




15. FINANCIAL REPORTING BY SEGMENTS

The consolidated entity has identified its operating segments based on the internal reports that are reviewed

and used by the chief operating decision maker to make decisions about resources to be allocated to the

segments and assess their performance.

Operating segments are identified by Management based on the mineral resource and exploration activities in

Australia, Burkina Faso and Papua New Guinea. Discrete financial information about each project is reported

to the chief operating decision maker on a regular basis.

The reportable segments are based on aggregated operating segments determined by the similarity of the

economic characteristics, the nature of the activities and the regulatory environment in which those segments

operate.

The consolidated entity has three reportable segments based on the geographical areas of the mineral resource

and exploration activities in Australia, Burkina Faso and Papua New Guinea. Unallocated results, assets and

liabilities represent corporate amounts that are not core to the reportable segments.

(i) Segment performance

Burkina

Faso

PNG Australia Total

Year ended 30 June 2010

Revenue

Interest revenue - - 32,059 32,059

Foreign exchange gain 32,049 - - 32,049

Total segment revenue 32,049 - 32,059 64,108

Segment net profit/(loss) before tax 32,049 - 32,059 64,108

Reconciliation of segment result to net loss before

tax

Amounts not included in segment result but

reviewed by the Board

- Exploration expenditure written off

(12,745)

(12,745)

Unallocated items

- Director fees and benefit expense

- Interest and finance costs

- Administration, management, consulting and

other expenses

(419,863)

(137,460)

(952,855)

Net loss before tax from continuing operations (1,458,815)

Year ended 30 June 2009

Revenue

Interest revenue - - 3,072 3,072

Total segment revenue - - 3,072 3,072

Segment net profit/(loss) before tax - - 3,072 3,072

Reconciliation of segment result to net loss before

tax

Amounts not included in segment result but

reviewed by the Board

- Depreciation expense

(13,837)

(13,837)

Unallocated items

- Director fees and benefit expense

- Administration, management, consulting and

other expenses

(423,791)

(516,615)

Net loss before tax from continuing operations (951,171)




15. FINANCIAL REPORTING BY SEGMENTS CONTINUED

(ii) Segment assets

Burkina

Faso

PNG Australia Total

As at 30 June 2010

Segment assets as at 1 July 2009 2,620,655 - - 2,620,655

Segment asset increases/(decreases) for the year

- Exploration and evaluation 114,673 158,354 150,000 423,027

2,735,328 158,354 150,000 3,043,682

Reconciliation of segment assets to total assets:

Other assets 2,189,741

Total assets from continuing operations 5,233,423

As at 30 June 2009

Segment assets as at 1 July 2008 - - 13,837 13,837

Segment asset increases/(decreases) for the year

- Exploration and evaluation 2,620,655 - - 2,620,655

- Plant & equipment - - (13,837) (13,837)

2,620,655 - - 2,620,655

Reconciliation of segment assets to total assets:

Other assets 153,685

Total assets from continuing operations 2,774,340

(iii) Segment liabilities

Burkina

Faso

PNG Australia Total

As at 30 June 2010

Segment liabilities as at 1 July 2009 1,039,165 - - 1,039,165

Segment liability increases/(decreases) for the year (776,518) 113,150 - (663,368)

262,647 113,150 - 375,797

Reconciliation of segment liabilities to total

liabilities:

Other liabilities 270,369

Total liabilities from continuing operations 646,166

As at 30 June 2009

Segment liabilities as at 1 July 2008 - - - -

Segment liability increases/(decreases) for the year 1,039,165 - - 1,039,165

1,039,165 - - 1,039,165

Reconciliation of segment liabilities to total

liabilities:

Other liabilities 1,150,882

Total liabilities from continuing operations 2,190,047




16. RELATED PARTY DISCLOSURE

(a) Controlled entities

The consolidated financial statements include the financial statements of Eldore Mining Corporation Limited

and the subsidiaries listed in the following table.

County of

Incorporation

% Equity Interest Investment at cost

2010 2009 2010 2009

At cost % % $ $

Robust Mines Ltd Fiji - 100 - 500,000

Knights Landing Ltd Australia 100 100 620,000 620,000

Birrimian Pty Ltd Burkino Faso 100 100 384,438 384,438

1,004,438 1,504,438

Allowance for impairment (108,614) (608,614)

895,824 895,824

(b) Parent entity

Eldore Mining Corporation Limited is the ultimate Australian parent entity and ultimate parent of the Group.

Consolidated Consolidated

2010 2009

$ $

(c) Key management personnel compensation

The key management personnel compensation comprised:

Short term employment benefits 495,738 510,591

Post employment benefits - -

Share based payments - -

495,738 510,591

(d) Individual directors’ and executives’ compensation disclosure

Information regarding individual directors‟ and executives‟ compensation and some equity instruments

disclosures as required by Corporation Regulation 2M.3.03 is provided in the remuneration report section of the

directors‟ report.

Apart from the details disclosed in this note, no director has entered into a material contract with the group since

the end of the previous financial year and there were no material contracts involving directors‟ interest existing

at year end.




17. DIRECTORS AND EXECUTIVES DISCLOSURES

(a) Details of Key Management Personnel

(i) Directors

Anthony Hamilton Chairman (non-executive) – Appointed 20 January 2010

Ron Cotton Director (non-executive)

John Geary Director (non-executive) – Appointed 13 January 2010

Tony Izelaar Director (non-executive)

Martin Pawlitschek Director (non-executive) – Resigned 24 August 2009

Andrew Waller Chairman (executive) – Resigned 20 January 2010

(ii) Executives

Neville Bassett Company Secretary

Key management personnel remuneration has been included in the remuneration Report section of the

Directors‟ Report.

(b) Option holdings of Key Management Personnel The movement during the reporting period in the number of options over ordinary shares in Eldore

Mining Corporation Limited held, directly, indirectly or beneficially, by each key management person,

including related parties, is as follows:

Balance

01/07/09

Granted as

Remuneration

Options

Exercised

Net Change

Other

Balance

30/06/10

Vested and

Exercisable

Directors

A Hamilton - - - - - -

R Cotton - - - - - -

J Geary - - - - - -

T Izelaar - - - - - -

M Pawlitschek - - - - - -

A Waller 28,700,000 - - (28,700,000) 1 - -

Executives

N Bassett - - - 2,500,000 2,500,000 2,500,000

1. Options lapsed on 31 December 2009

Balance

01/07/08

Granted as

Remuneration

Options

Exercised

Net Change

Other #

Balance

30/06/09

Vested and

Exercisable

Directors

A Waller 28,700,000 - - - 28,700,000 28,700,000

T Izelaar - - - - - -

R Cotton - - - - - -

M Pawlitschek - - - - - -




17. DIRECTORS AND EXECUTIVES DISCLOSURES CONTINUED

(c) Shareholdings of Key Management Personnel

The movement during the reporting period in the number of shares in Eldore Mining Corporation

Limited held, directly, indirectly or beneficially, by each key management person, including related

parties, is as follows:

Balance

01/07/09

Granted as

Remuneration

Acquired Disposed Net Change

Other

Balance

30/06/10

Directors

A Hamilton - - - - - -

R Cotton - - - - - -

J Geary - - - - - -

T Izelaar - - - - - -

M Pawlitschek 6,407,300 - - - (6,407,300) 1 -

A Waller 23,000,000 - - - (23,000,000) 2 -

Executives

N Bassett - - 5,000,000 - - 5,000,000

1. Martin Pawlitschek resigned on 24 August 2009.

2. Andrew Waller resigned on 20 January 2010.

Balance

01/07/08

Granted as

Remuneration

Acquired Disposed Net Change

Other

Balance

30/06/09

Directors

A Waller 23,000,000 - - - - 23,000,000

T Izelaar - - - - - -

R Cotton - - - - - -

M Pawlitschek - - - - 6,407,300 6,407,300

All equity transactions with key management personnel have been entered into under terms and

conditions no more favourable than those the Group would have adopted if dealing at arm‟s length.

(d) Loans with Key Management Personnel

There were no loans to key management personnel or their related entities during the financial year.




18. PARENT ENTITY DISCLOSURES

2010

$

2009

$

Financial Position

Assets

Current Assets 2,178,594 122,808

Non-current asset 2,843,818 1,039,848

Total assets 5,022,412 1,162,656

Liabilities

Current Liabilities 352,984 578,363

Non-current liabilities - -

Total liabilities 352,984 578,363

Equity

Issued capital 19,353,835 14,117,492

Reserves

Option reserve

1,009,832

801,332

Accumulated losses (15,694,239) (14,334,531)

Total equity 4,669,428 584,293

2010

$

2009

$

Financial Performance

Loss for the year (1,359,708) 943,533

Other comprehensive income - -

Total comprehensive income (1,359,708) 943,533

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company‟s principal financial instruments comprise receivables, payables, cash and short-term deposits.

The Company manages its exposure to key financial risks in accordance with the Company‟s financial risk

management policy. The objective of the policy is to support the delivery of the Company‟s financial targets

while protecting future financial security.

The main risks arising from the Company‟s financial instruments are interest rate risk, credit risk, liquidity risk

and foreign currency risk. The Group does not speculate in the trading of derivative instruments. The Company

uses different methods to measure and manage different types of risks to which it is exposed. These include

monitoring levels of exposure to interest rates and assessments of market forecasts for interest rates. Ageing

analysis of and monitoring of receivables are undertaken to manage credit risk, liquidity risk is monitored

through the development of future rolling cash flow forecasts.

The Board reviews and agrees policies for managing each of these risks as summarised below.

Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews

and agrees policies for managing each of the risks identified below, including for interest rate risk, credit

allowances and cash flow forecast projections.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the

basis of measurement and the basis on which income and expenses are recognised, in respect of each class of

financial asset and financial liability are disclosed in note 1 to the financial statements.




19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES CONTINUED

Risk Exposures and Responses

Interest Rate Risk

The Company‟s exposure to risks of changes in market interest rates relates primarily to the Company‟s cash

balances. The Company constantly analyses its interest rate exposure. Within this analysis consideration is given

to potential renewals of existing positions, alternative financing positions and the mix of fixed and variable

interest rates. As the company has no interest bearing borrowings its exposure to interest rate movements is

limited to the amount of interest income it can potentially earn on surplus cash deposits. The following

sensitivity analysis is based on the interest rate risk exposures in existence at the balance sheet date.

At balance date, the Group had the following financial assets exposed to variable interest rates that are not

designated in cash flow hedges:

Consolidated

2010

$

2009

$

Financial Assets

Cash and cash equivalents (interest-bearing accounts) 405,185 125,490

Net exposure 405,185 125,490

The following sensitivity analysis is based on the interest rate risk exposures in existence at the balance sheet

date. The 0.5% sensitivity is based on reasonably possible changes, over a financial year, using an observed

range of historical LIBOR movements over the last 3 years.

At 30 June 2010, if interest rates had moved, as illustrated in the table below, with all other variables held

constant, post tax profit and equity relating to financial assets of the Group would have been affected as

follows:

Judgements of reasonably possible movements:

Post tax profit – higher / (lower)

+ 0.5% 2,026 627

- 0.5% (2,026) (627)

Equity – higher / (lower)

+ 0.5% 2,026 627

- 0.5% (2,026) (627)

Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The

Group‟s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient

liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring

unacceptable losses or risking damage to the Group‟s reputation.

The Company anticipates a need to raise additional capital in the next 12 months to meet forecasted

operational activities. The decision on how the Company will raise future capital will depend on market

conditions existing at that time.

Typically the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a

period of 60 days, including the servicing of financial obligations; this excludes the potential impact of

extreme circumstances that cannot reasonably be predicted, such as natural disasters.

The Group has no access to credit standby facilities or arrangements for further funding or borrowings in

place.





Liquidity Risk continued

The financial liabilities the Group had at reporting date were trade payables incurred in the normal course of

the business and an amount owing pursuant to a contract of sale. Trade payables were non interest bearing and

were due within the normal 30-60 days terms of creditor payments.

Maturities of financial liabilities

The table below analyses the Group‟s financial liabilities into relevant maturity groupings based on the

remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are

the contractual undiscounted cash flows.

Credit risk

Credit risk arises from the financial assets of the Company, which comprise deposits with banks and trade and

other receivables. The Company‟s exposure to credit risk arises from potential default of the counter party,

with the maximum exposure equal to the carrying amount of these instruments. The carrying amount of

financial assets included in the Balance Sheet represents the Company‟s maximum exposure to credit risk in

relation to those assets.

The Company does not hold any credit derivatives to offset its credit exposure.

As at 30 June 2010, there is a short term bridging loan of $1,735,000 owed by Acclaims Exploration NL with a

facility fee of $200,000 repayable within 60 days. Project Mangalisa has been used as the security charge for

the bridging loan.

Except for the above mentioned, the Company trades only with recognised, credit worthy third parties and as

such collateral is not requested nor is it the Company‟s policy to securitise its trade and other receivables.

Receivable balances are monitored on an ongoing basis with the result that the Company does not have a

significant exposure to bad debts. Trade and other receivables are expected to have a maturity of less than 6

months, for both year ends.

There are no significant concentrations of credit risk within the Company.

Consolidated Less

than 1

month

1 - 3

months

3 months

- 1 year

1 - 5

years

5+

years

Total

contractual

cash flows

Carrying

amount

(assets)/

liabilities

$ $ $ $ $ $ $

As at 30 June 2010

Trade and other

payables

383,519 -

- - - 383,519 383,519

Financial liabilities

- Non-interest bearing 262,647 - - - - 262,647 262,647

646,166 - - - - 646,166 646,166

As at 30 June 2009

Trade and other

payables

30,358 1,600,524

- - - 1,630,882 1,630,882

Financial liabilities

- Non-interest bearing 559,165 - - - - 559,165 599,165

589,523 1,600,524 - - - 2,190,047 2,190,047





Commodity Price and Foreign Currency Risk

The Group‟s exposure to price and foreign currency risk is minimal given the Group is still in an exploration

phase.

Fair Value

The methods of estimating fair value are outlined in the relevant notes to the financial statements. All financial

assets and liabilities recognised in the balance sheet, whether they are carried at cost or fair value, are recognised

at amounts that represent a reasonable approximation of fair values unless otherwise stated in the applicable

notes.

Capital Management

The objective of capital management of the Group is to maximise the shareholders wealth and ensure that the

group can fund its operations and continue as a going concern.

Management effectively manages the group‟s capital by assessing the group‟s financial risks and future cash

flow requirements and adjusting its capital structure in response to changes in these risks and in the market.

These responses include the management of expenditure and debt levels and share and option issues.

There have been no changes in the strategy adopted by management to control capital of the group since the

prior year.

20. EVENTS SUBSEQUENT TO YEAR END

There are no matters or circumstances that have arisen since 30 June 2010 that have or may significantly affect

the operations, results, or state of affairs of the consolidated entity in future financial years.

21. COMPANY DETAILS

The registered office and principal place of business address is:

Eldore Mining Corporation Limited

1186 Hay Street

West Perth

WA 6005


DIRECTORS' DECLARATION

The directors of the company declare that:-

1. The financial statements, notes and the Remuneration Report in the Directors‟ Report designated as audited are

in accordance with the Corporations Act 2001 including:

(a) complying with Australian Accounting Standards and Corporations Regulations 2001;

(b) containing an explicit and unreserved statement of compliance with International Financial Reporting

Standards in note 1; and

(c) giving a true and fair view of the financial position of the company and the consolidated group as at 30

June 2010, and of their performance for the year ended on that date.

2. In the directors‟ opinion, there are reasonable grounds to believe that the company will be able to pay its debts

as and when they become payable.

3. This declaration has been made after receiving the declarations required by Section 295A of the Corporations

Act 2001 from the Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June

2010.

This declaration is made in accordance with a resolution of the Board of Directors:

__________________________________________

A Hamilton

Chairman

Perth, Western Australia

Dated: 30 September 2010


INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF

ELDORE MINING CORPORATION LIMITED

Report on the Financial Report

We have audited the accompanying financial report of Eldore Mining Corporation (the Company) and the

consolidated entity, which comprises the statement of financial position as at 30 June 2010, and statement of

comprehensive income, statement of changes in equity and cash flow statement for the year ended on that date, a

summary of significant accounting policies, other explanatory notes and the Directors’ declaration of the

consolidated entity comprising the Company and the entities it controlled at the year end or from time to time

during the financial year.

Directors’ responsibility for the financial report

The Directors of the Company are responsible for the preparation and fair presentation of the financial report in

accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the

Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the

preparation and fair presentation of the 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. In Note 1, the Directors also state, in accordance with Accounting Standard

AASB 101: Presentation of Financial Statements, that compliance with the Australian equivalents to

International Financial Reporting Standards (IFRS) ensures that the financial report, comprising the financial

statements and notes, complies with IFRS.

Auditor’s responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in

accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant

ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance

whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks

of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial

report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by the

Directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

http://www.taxpoint.com.au/taxpoint/tpbin/tp.dll?f=id$id=mfa%3Ar%3A32a$cid=mfa$t=hyperlink.htm$an=JD_T_10_0600_note1$3.0#JD_T_10_0600_note1


Basis for qualified auditor’s opinion

Opening balances

As a result of a disclaimer of an audit opinion for the year ended 30 June 2009 due to our inability to obtain sufficient appropriate audit evidence in relation to Eldore Mining Corporation Limited and its controlled entities to enable us to form an opinion on the financial report, we are unable to conclude on whether the opening balances as at 1 July 2009 are free from material misstatement. As such we are unable to provide audit assurance in relation to the comparative figures presented in the statement of financial position as at 30 June 2009, and the statement of comprehensive income for the year ended 30 June 2009.

Recoverability of loan

As disclosed in Note 7 to the financial statements, the company advanced $1,735,000 to another entity during the financial year ended 30 June 2010. The terms for repayment were 90 days from the date of advance. The 90 days has expired and the loan amount, including a facility fee of $200,000 is due and payable. The directors are of the opinion that the loan will be recovered. Going concern

In the event that the loan as detailed in the ‘recoverability of loan’ paragraph above is not recovered, the entity may not be able to extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. If the loan is recovered, the directors are of the opinion that the company and the consolidated group are able to continue as going concerns and will be able to pay their debts as and when they fall due, and realise their assets and extinguish their liabilities in the normal course of business and at amounts stated in the financial report. The financial report of the Group does not include any adjustments in relation to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities that might be necessary should the Company and/or the Group not continue as going concerns.

Qualified auditor’s opinion

In our opinion: a. except for the effects of such adjustments, if any, as might have been determined to be necessary had we been

able to satisfy ourselves as to the matters discussed in the ‘basis for qualified auditors opinion’ paragraphs above, the financial report of Eldore Mining Corporation is in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the Company’s and consolidated entity’s financial position as at 30 June 2010

and of their performance for the year ended on that date; and ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and

the Corporations Regulations 2001; and

b. the financial report also complies with International financial Reporting Standards as disclosed in Note 1.

Report on the Remuneration Report

We have audited the Remuneration Report included in the Directors’ Report under the heading “Remuneration Report – Audited” for the year ended 30 June 2010. The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

http://www.taxpoint.com.au/taxpoint/tpbin/tp.dll?f=id$id=mfa%3Ar%3A32a$cid=mfa$t=hyperlink.htm$an=JD_T_10_0600_note1$3.0#JD_T_10_0600_note1


Auditor’s Opinion

In our opinion the remuneration report of Eldore Mining Corporation and the consolidated entity for the year ended 30

June 2010 complies with section 300A of the Corporations Act 2001

MACK & CO

N A CALDER

PARTNER

WEST PERTH

DATE: 30 SEPTEMBER 2010


STOCK EXCHANGE INFORMATION

HOLDINGS AS AT 28 SEPTEMBER 2010

FULLY PAID

SHARES

OPTIONS

31 December 2012

Number of Securities

Held

No. of Holders No. of Holders

1 to 1,000

1,001 to 5,000

5,001 to 10,000

10,001 to100,000

100,001 and over

6

8

40

209

484

-

-

-

6

235

Total Number of Holders 747 241

Number of holders of less

than a marketable parcel

114

Percentage of the 20

largest holders

41.15%

61.54%

Substantial Shareholders

The company has been notified of the following substantial shareholdings:

Number

Pacific Niugini Pty Ltd 69,230,769

Voting Rights

The Constitution of the company makes the following provision for voting at general meetings:

On a show of hands, every ordinary shareholder present in person, or by proxy, attorney or representative has one

vote. On a poll, every shareholder present in person, or by proxy, attorney or representative has one vote for any share

held by the shareholder.

20 Largest Holders of Securities as at 28 September 2010:

Fully Paid Ordinary Shares

No. %

1. Pacific Niugini Limited 69,230,769 8.53

2. CS Fourth Nominees Pty Ltd 27,500,000 3.39

3. GEB Capital Limited 25,000,000 3.08

4. Jo Patoir 25,000,000 3.08

5. Bell Potter Nominees Ltd 20,000,000 2.46

6. Ilanda Associates Limited 16,906,815 2.08

7. Ajava Holdings Pty Ltd 16,000,000 1.97

8. FMR Investments Pty Ltd 15,000,000 1.85

9 Stratton Family Pty Ltd 14,187,845 1.75

10. Perizia Investments Pty Ltd 13,200,000 1.63

11. Peter Cook 13,000,000 1.60

12. Valadon Pty Ltd 11,000,000 1.36

13. Merrill Lynch (Australia) Pty Ltd 11,000,000 1.36

14. Barrie Raymond Stratton 10,506,524 1.29

15. Celtic Capital Pty Ltd 10,000,000 1.23

16. TT Nicholls Pty Ltd 9,000,000 1.11

17. Jayvee Investments Pty Ltd <Jayvee SP-PEN A/C> 7,400,000 0.91

18. Acclaim Exploration NL 6,981,400 0.86

19. Slade Technologies Pty Ltd 6,674,503 0.82

20. Dejul Trading Pty Ltd 6,416,667 0.79

334,004,523 41.15


STOCK EXCHANGE INFORMATION

Options 31 December 2012

No. %

1. Azur Capital Group Limited 40,000,000 8.79

2. Jo Patoir 37,750,000 8.30

3. Perizia Investments Pty Ltd 26,100,000 5.74

4. Capretti Investments Pty Ltd 25,750,000 5.66

5. Kapiri Holdings Pty Ltd 20,000,000 4.40

6. Bell Potter Nominees Ltd 20,000,000 4.40

7. Omondali Pty Ltd 15,000,000 3.30

8. Celtic Capital Pty Ltd 13,916,665 3.06

9. Kathleen Mary Eddington 13,875,000 3.05

10. Nefco Nominees Pty Ltd 10,000,000 2.20

11. Peter Cook 7,500,000 1.65

12. FMR Investments Pty Ltd 7,500,000 1.65

13. Ajava Holdings Pty Ltd 7,500,000 1.65

14. CS Fourth Nominees Pty Ltd 7,500,000 1.65

15. Taycol Nominees Pty Ltd 5,041,670 1.11

16. Craig Peter Ball & Suzanne Katherine Ball 5,000,000 1.10

17. Guifang Jiang 5,000,000 1.10

18. Merrill Lynch (Australia) Pty Ltd 4,500,000 0.99

19. Valadon Pty Ltd 4,000,000 0.88

20. Group Seventy Three Super Fund Pty Ltd 3,900,000 0.86

279,833,335 61.54

Restricted Securities

There are no restricted securities or securities subject to voluntary escrow.

On-market Buy-back

Currently there is no on-market buy-back of the Company‟s securities.

Mining Tenements

Burkina Faso (Birrimian Pty Ltd - 100%)

Exploration Permit Name Status Area

351 Sirba Granted 198 km2

352 Fouli Granted 248 km2

353 Madyabari Granted 232 km2

TBA (code not issued) Tantiabongou Granted 120 km2

Wyo Well Project – Western Australia (100% - subject to 80% farm-in)

EL 28/1294

Mt Hagen JV – Papua New Guinea (Earning 60%)

EL 1613


CORPORATE GOVERNANCE STATEMENT

The Board of Directors of Eldore Mining Corporation Limited is responsible for the corporate governance of the

Company. The Board guides and monitors the business and affairs of Eldore Mining Corporation Limited on behalf

of the shareholders by whom they are elected and to whom they are accountable. This statement reports on Eldore

Mining Corporation Limited‟s key governance principles and practices.

1. COMPLIANCE WITH BEST PRACTICE RECOMMENDATIONS

The Company, as a listed entity, must comply with the Corporations Act 2001 and the ASX Limited (ASX) Listing

Rules. The ASX Listing Rules require the Company to report on the extent to which it has followed the Corporate

Governance Recommendations published by the ASX Corporate Governance Council (ASXCGC). Where a

recommendation has not been followed, that fact is disclosed, together with the reasons for the departure.

The table below summaries the Company‟s compliance with the Corporate Governance Council‟s Recommendations:

Principle # ASX Corporate Governance Council Recommendations Reference Comply

Principle 1 Lay solid foundations for management and oversight

1.1 Establish the functions reserved to the board and those delegated

to senior executives and disclose those functions.

2(a) Yes

1.2 Disclose the process for evaluating the performance of senior

executives.

2(h), 3(b),

Remuneration Report

Yes

1.3 Provide the information indicated in the Guide to reporting on

principle 1.

2(a), 2(h), 3(b),

Remuneration Report

Yes

Principle 2 Structure the board to add value

2.1 A majority of the board should be independent directors. 2(e) Yes

2.2 The chair should be an independent director. 2(b), 2(c), 2(e) No

2.3 The roles of chair and chief executive officer should not be

exercised by the same individual.

2(b), 2(c) No

2.4 The Board should establish a nomination committee. 2(d) No

2.5 Disclose the process for evaluating the performance of the

board, its committees and individual directors.

2(h) Yes


principle 2.

2(b), 2(c), 2(d), 2(e),

2(h)

Yes

Principle 3 Promote ethical and responsible decision-making

3.1 Establish a code of conduct and disclose the code or a summary

as to:

4(a) Yes

the practices necessary to maintain confidence in the

company‟s integrity;

the practices necessary to take into account the company‟s

legal obligations and the reasonable expectations of its

stakeholders; and

the responsibility and accountability of individuals for

reporting and investigating reports of unethical practices.

3.2 Establish a policy concerning trading in company securities by

directors, senior executives and employees and disclose the

policy or a summary.

4(b) Yes


principle 3.

4(a), 4(b) Yes

Principle 4 Safeguard integrity in financial reporting

4.1 The Board should establish an audit committee. 3(a) Yes

4.2 The audit committee should be structured so that it: 3(a) No

consists only of non-executive directors;

consists of a majority of independent directors;

is chaired by an independent chair, who is not chair of the

Board; and

has at least three members.



Principle # ASX Corporate Governance Council Recommendations Reference Comply

4.3 The audit committee should have a formal charter 3(a) Yes


principle 4.

3(a) Yes

Principle 5 Make timely and balanced disclosure

5.1 Establish written policies designed to ensure compliance with

ASX Listing Rule disclosure requirements and to ensure

accountability at senior executive level for that compliance and

disclose those policies or a summary of those policies.

5(a), 5(b) Yes


principle 5.

5(a), 5(b) Yes

Principle 6 Respect the rights of shareholders

6.1 Design a communications policy for promoting effective

communication with shareholders and encouraging their

participation at general meetings and disclose the policy or a

summary of that policy.

5(a), 5(b) Yes


principle 6.

5(a), 5(b) Yes

Principle 7 Recognise and manage risk

7.1 Establish policies for the oversight and management of material

business risks and disclose a summary of those policies.

6(a) Yes

7.2 The Board should require management to design and implement

the risk management and internal control system to manage the

company‟s material business risks and report to it on whether

those risks are being managed effectively. The Board should

disclose that management has reported to it as to the

effectiveness of the company‟s management of its material

business risks.

6(a), 6(b), 6(d) Yes

7.3 The Board should disclose whether it had received assurance

from the chief executive officer and the chief financial officer

that the declaration provided in accordance with section 295A of

the Corporations Act is founded on a sound system of risk

management and internal control and that the system is

operating effectively in all material respects in relation to

financial reporting risks.

6(c) Yes


principle 7.

6(a), 6(b), 6(c), 6(d) Yes

Principle 8 Remunerate fairly and responsibly

8.1 The Board should establish a remuneration committee. 3(b) No

8.2 Clearly distinguish the structure on non-executive directors‟

remuneration from that of executive directors and senior

executives.

3(b), Remuneration

Report

Yes


principle 8.

3(b), Yes



2. THE BOARD OF DIRECTORS

(a) Roles and Responsibilities of the Board

The Board is accountable to the shareholders and investors for the overall performance of the Company and

takes responsibility for monitoring the Company‟s business and affairs and setting its strategic direction,

establishing and overseeing the Company‟s financial position.

The Board is responsible for:

Appointing, evaluating, rewarding and if necessary the removal of the Chief Executive Officer ("CEO") and

senior management;

Development of corporate objectives and strategy with management and approving plans, new investments,

major capital and operating expenditures and major funding activities proposed by management;

Monitoring actual performance against defined performance expectations and reviewing operating

information to understand at all times the state of the health of the Company;

Overseeing the management of business risks, safety and occupational health, environmental issues and

community development;

Satisfying itself that the financial statements of the Company fairly and accurately set out the financial

position and financial performance of the Company for the period under review;

Satisfying itself that there are appropriate reporting systems and controls in place to assure the Board that

proper operational, financial, compliance, risk management and internal control process are in place and

functioning appropriately.

Approving and monitoring financial and other reporting;

Assuring itself that appropriate audit arrangements are in place;

Ensuring that the Company acts legally and responsibly on all matters and assuring itself that the Company

has adopted a Code of Conduct and that the Company practice is consistent with that Code; and other

policies; and

Reporting to and advising shareholders.

Other than as specifically reserved to the Board, responsibility for the day-to-day management of the

Company‟s business activities is delegated to the Chief Executive Officer and Executive Management.

(b) Board Composition

The Directors determine the composition of the Board employing the following principles:

the Board, in accordance with the Company‟s constitution must comprise a minimum of three Directors;

the roles of the Chairman of the Board and of the Chief Executive Officer should be exercised by different

individuals;

the majority of the Board should comprise Directors who are non-executive;

the Board should represent a broad range of qualifications, experience and expertise considered of benefit to

the Company; and

the Board must be structured in such a way that it has a proper understanding of, and competency in, the

current and emerging issues facing the Company, and can effectively review management‟s decisions.

The Board is currently comprised of three non-executive Directors. At all times during the year the Board

comprised a majority of Non-Executive Directors. The skills, experience, expertise, qualifications and terms of

office of each director in office at the date of the annual report is included in the Directors‟ Report.

The Chair is not independent and the role of Chair and chief executive officer are exercised by the same

person. Given the size and scale of the Company‟s operations during the year, the Board did not consider it

essential to appoint an independent Chair simply in order to comply with the Corporate Governance Council‟s

Recommendations. The Board considers that, at this stage of the Company‟s development, the executive role

carried out by the Chairman is in the best interests of the Company.

The Company‟s constitution requires one-third of the Directors (or the next lowest whole number) to retire by

rotation at each Annual General Meeting (AGM). The Directors to retire at each AGM are those who have been

longest in office since their last election. Where Directors have served for equal periods, they may agree

amongst themselves or determine by lot who will retire. A Director must retire in any event at the third AGM

since he or she was last elected or re-elected. Retiring Directors may offer themselves for re-election.




A Director appointed as an additional or casual Director by the Board will hold office until the next AGM

when they may be re-elected.

The Executive Chairman is not subject to retirement by rotation and, along with any Director appointed as an

additional or casual Director, is not to be taken into account in determining the number of Directors required to

retire by rotation.

(c) Chairman and Chief Executive Officer

The Chairman is responsible for:

leadership of the Board;

the efficient organisation and conduct of the Board‟s functions;

the promotion of constructive and respectful relations between Board members and between the Board and

management;

contributing to the briefing of Directors in relation to issues arising at Board meetings;

facilitating the effective contribution of all Board members; and

committing the time necessary to effectively discharge the role of the Chairman.

The current Chair is not independent. The role of Chair and chief executive officer are exercised by the same

person. Given the size and scale of the Company‟s operations during the year, the Board did not consider it

essential to appoint an independent Chair simply in order to comply with the Corporate Governance Council‟s

Recommendations. Previous to the current Chair, the Board did not comply with the ASX Recommendation 2.2

in that the Chairman, whilst a non-executive, was not an independent Director due to his substantial interest in

the Company (refer to 2(e) Independent Directors). The Board had considered this matter and decided that the

non-compliance did not affect the operation of the Company.

The Chief Executive Officer is responsible for:

implementing the Company‟s strategies and policies; and

the day-to-day management of the Company‟s business activities

The Board specifies that the roles of the Chairman and the Chief Executive Officer are separate roles to be

undertaken by separate people.

Due to the nature of the company‟s current activities it does not currently have a chief executive officer and

this role is effectively undertaken by the Chairman. The Board considers that, at this stage of the Company‟s

development, the executive role carried out by the Chairman is in the best interests of the Company. The Board

will monitor the need to separate these roles as the company‟s circumstances change.

(d) Nomination Committee

The Company does not comply with ASX Recommendation 2.4. The Company is not of a relevant size to

consider formation of a nomination committee to deal with the selection and appointment of new Directors and

as such a nomination committee has not been formed.

Nominations of new Directors are considered by the full Board. If any vacancies arise on the Board, all

directors are involved in the search and recruitment of a replacement. The Board has taken a view that the full

Board will hold special meetings or sessions as required. The Board are confident that this process for selection

and review is stringent and full details of all Directors are provided to shareholders in the annual report and on

the Company‟s website.

(e) Independent Directors

The Company recognises that independent directors are important in assuring shareholders that the Board is

properly fulfilling its role and is diligent in holding senior management accountable for its performance. The

Board assesses each of the directors against specific criteria to decide whether they are in a position to exercise

independent judgment.

Directors of Eldore Mining Corporation Limited are considered to be independent when they are independent

of management and free from any business or other relationship that could materially interfere with, or could

reasonably be perceived to materially interfere with, the exercise of their unfettered and independent

judgement.




In making this assessment, the Board considers all relevant facts and circumstances. Relationships that the

Board will take into consideration when assessing independence are whether a Director:

is a substantial shareholder of the Company or an officer of, or otherwise associated directly with, a

substantial shareholder of the Company;

is employed, or has previously been employed in an executive capacity by the Company or another

Company member, and there has not been a period of at least three years between ceasing such

employment and serving on the Board;

has within the last three years been a principal of a material professional advisor or a material consultant to

the Company or another Company member, or an employee materially associated with the service

provided;

is a material supplier or customer of the Company or other Company member, or an officer of or otherwise

associated directly or indirectly with a material supplier or customer; or

has a material contractual relationship with the Company or another Company member other than as a

Director.

The Board is currently comprised of two independent non-executive Directors.

In accordance with the definition of independence above, and the materiality thresholds set, the following directors

of Eldore Mining Corporation Limited are considered to be independent:

Name Position

Ron Cotton Non-Executive Director

John Geary Non-Executive Director

Tony Izelaar Non-Executive Director

The term in office held by each director in office at the date of this report is as follows:

Name Term in Office

Anthony Hamilton Since 20 January 2010

Ron Cotton Since 11 November 2008

John Geary Since 13 January 2010

Tony Izelaar Since 26 October 2007

In recognition of the importance of independent views and the Board‟s role in supervising the activities of

management the Chairman should be a non-executive director, however refer 2(c) relating to independence of

the Chairman.

(f) Avoidance of conflicts of interest by a Director

In order to ensure that any interests of a Director in a particular matter to be considered by the Board are known

by each Director, each Director is required by the Company to disclose any relationships, duties or interests

held that may give rise to a potential conflict. Directors are required to adhere strictly to constraints on their

participation and voting in relation to any matters in which they may have an interest.

(g) Board access to information and independent advice

Directors are able to access members of the management team at any time to request relevant information.

There are procedures in place, agreed by the Board, to enable Directors, in furtherance of their duties, to seek

independent professional advice at the company‟s expense.

(h) Review of Board performance

The performance of the Board is reviewed regularly by the Chairman. The Chairman conducts performance

evaluations which involve an assessment of each Board member‟s performance against specific and measurable

qualitative and quantitative performance criteria. The performance criteria against which directors and

executives are assessed is aligned with the financial and non-financial objectives of Eldore Mining Corporation

Limited. Primarily, the review will be carried out through consultation by the Chairman and with individual

Directors. Directors whose performance is consistently unsatisfactory may be asked to retire.



3. BOARD COMMITTEES

(a) Audit Committee

Given the size and scale of the Company‟s operations the full Board undertakes the role of the Audit

Committee. The Audit Committee does not comply with ASX Recommendation 4.2 as the Chair of the Board

is Chair of the Audit Committee and the Audit Committee does not comprise only Non-Executive Directors.

The role and responsibilities of the Audit Committee are summarised below.

The Audit Committee is responsible for reviewing the integrity of the Company‟s financial reporting and

overseeing the independence of the external auditors. The Board sets aside time to deal with issues and

responsibilities usually delegated to the Audit Committee to ensure the integrity of the financial statements of

the Company and the independence of the auditor.

The Board reviews the audited annual and half-year financial statements and any reports which accompany

published financial statements and recommends their approval to the members. The Board also reviews

annually the appointment of the external auditor, their independence and their fees.

The Board is also responsible for establishing policies on risk oversight and management. The Company has

not formed a separate Risk Management Committee due to the size and scale of its operations.

External Auditors

The Company‟s policy is to appoint external auditors who clearly demonstrate quality and independence. The

performance of the external auditor is reviewed annually and applications for tender of external audit services

are requested as deemed appropriate, taking into consideration assessment of performance, existing value and

tender costs. It is Mack & Co‟s policy to rotate engagement partners on listed companies at least every five

years.

An analysis of fees paid to the external auditors, including a break-down of fees for non-audit services, is

provided in the notes to the financial statements in the Annual Report.

There is no indemnity provided by the company to the auditor in respect of any potential liability to third

parties.

The external auditor is requested to attend the annual general meeting and be available to answer shareholder

questions about the conduct of the audit and preparation and content of the audit report.

Non-audit services provided by the auditors during the year are detailed in the financial statements.

(b) Remuneration Committee

The role of a Remuneration Committee is to assist the Board in fulfilling its responsibilities in respect of

establishing appropriate remuneration levels and incentive policies for employees.

The Board has not established a separate Remuneration Committee due to the size and scale of its operations.

This does not comply with Recommendation 8.1 however the Board as a whole takes responsibility for such

issues.

The responsibilities include setting policies for senior officers remuneration, setting the terms and conditions

for the CEO, reviewing and making recommendations to the Board on the Company‟s incentive schemes and

superannuation arrangements, reviewing the remuneration of both executive and non-executive directors and

undertaking reviews of the CEO‟s performance.

The Company has structured the remuneration of its senior executive, where applicable, such that it comprises

a fixed salary, statutory superannuation and participation in the Company‟s employee share option plan. The

Company believes that by remunerating senior executives in this manner it rewards them for performance and

aligns their interests with those of shareholders and increases the Company‟s performance.



3. BOARD COMMITTEES

Non-executive directors are paid their fees out of the maximum aggregate amount approved by shareholders for

non-executive director remuneration. The Company does not adhere to Recommendation 8.2 Box 8.2 „Non-

executive directors should not receive options or bonus payments‟. The Company has previously granted

options to non-executive directors and, potentially, will do so in the future. The Board is of the view that

options (for both executive and non-executive directors) are a cost effective benefit for small companies such as

Eldore Mining Corporation Limited that seek to conserve cash reserves. They also provide an incentive that

ultimately benefits both shareholders and the optionholder, as optionholders will only benefit if the market

value of the underlying shares exceeds the option strike price. Ultimately, shareholders will make that

determination.

The board policy is to remunerate Directors at market rates for time, commitment and responsibilities. The

Board determines payments to the Directors and reviews their remuneration annually, based on market

practice, duties and accountability. Independent external advice is sought when required. Fees for Non-

Executive Directors are not linked to the performance of the consolidated entity. However, to align Directors‟

interests with shareholders interests, the Directors are encouraged to hold shares in the Company.

The Company‟s aim is to remunerate at a level that will attract and retain high-calibre directors and employees.

Company officers and Directors are remunerated to a level consistent with the size of the Company.

The Board believes that it has implemented suitable practices and procedures that are appropriate for an

organisation of this size and maturity.

In accordance with best practice corporate governance, the structure of Non-Executive Director and Executive

compensation is separate and distinct.

In determining remuneration, the Board has taken a view that the full Board will hold special meetings or

sessions as required. No Director participated in any deliberation regarding his or her own remuneration or

related issues. The Board are confident that this process for determining remuneration is stringent and full

details of remuneration policies and remuneration received by directors and executives in the current period is

contained in the “Remuneration Report” within the Directors‟ Report of the Annual Report.

4. ETHICAL AND RESPONSIBLE DECISION MAKING

(a) Code of Ethics and Conduct

The Board endeavours to ensure that the Directors, officers and employees of the Company act with integrity

and observe the highest standards of behaviour and business ethics in relation to their corporate activities. The

“Code of Conduct” sets out the principles, practices, and standards of personal behaviour the Company expects

people to adopt in their daily business activities.

All Directors, officers and employees are required to comply with the Code of Conduct. Senior managers are

expected to ensure that employees, contractors, consultants, agents and partners under their supervision are

aware of the Company‟s expectations as set out in the Code of Conduct.

All Directors, officers and employees are expected to:

a. comply with the law;

b. act in the best interests of the Company;

c. be responsible and accountable for their actions; and

d. observe the ethical principles of fairness, honesty and truthfulness, including prompt disclosure of

potential conflicts.

(b) Policy concerning trading in Company securities

The Company‟s “Dealings in Company Shares and Options Policy” applies to all Directors, officers and

employees. This policy sets out the restrictions on dealing in securities by people who work for, or are

associated with the Company and is intended to assist in maintaining market confidence in the integrity of

dealings in the Company‟s securities. The policy stipulates that the only appropriate time for a Director, officer

or employee to deal in the Company‟s securities is when they are not in possession of price sensitive

information that is not generally available to the market.



4. ETHICAL AND RESPONSIBLE DECISION MAKING

As a matter of practice, Company shares may only be dealt with by Directors and officers of the Company

under the following guidelines:

(d) No trading is permitted in the period of 14 days prior to the announcement to the ASX of the Company's

full year and half year results, and quarterly reports and for a period of two days after their release;

(e) Guidelines are to be considered complementary to and not replace the various sections of the

Corporations Act 2001 dealing with insider trading; and

(f) Prior approval of the Chairman, or in his absence, the approval of two directors is required prior to any

trading being undertaken.

Within 24 hours of a director being appointed to the Board, resigning or being removed from the Board, or trading

in the Company‟s securities, full details of the director‟s notifiable interests in the Company‟s securities and

changes in such interest must be advised to the Company Secretary so that a record is kept within the Company

and so that necessary ASX notifications will occur.

All directors must notify the Company Secretary of any margin loan or similar funding arrangement entered into

in relation to the Company‟s securities and any variations to such arrangements, including the number of securities

involved, the circumstances in which the lender can make margin calls, and the right of the lender to dispose of

securities.

5. TIMELY AND BALANCED DISCLOSURE

(a) Shareholder communication

The Company believes that all shareholders should have equal and timely access to material information about

the Company including its financial situation, performance, ownership and governance. The Company‟s “ASX

Disclosure Policy” encourages effective communication with its shareholders by requiring that Company

announcements:

be factual and subject to internal vetting and authorisation before issue;

be made in a timely manner;

not omit material information;

be expressed in a clear and objective manner to allow investors to assess the impact of the information

when making investment decisions;

be in compliance with ASX Listing Rules continuous disclosure requirements; and

be placed on the Company‟s website promptly following release.

Shareholders are encouraged to participate in general meetings. Copies of addresses by the Chairman or Chief

Executive Officer are disclosed to the market and posted on the Company‟s website. The Company‟s external

auditor attends the Company‟s annual general meeting to answer shareholder questions about the conduct of

the audit, the preparation and content of the audit report, the accounting policies adopted by the Company and

the independence of the auditor in relation to the conduct of the audit.

(b) Continuous disclosure policy

The Company is committed to ensuring that shareholders and the market are provided with full and timely

information and that all stakeholders have equal opportunities to receive externally available information issued

by the Company. The Company‟s “ASX Disclosure Policy” described in 5(a) reinforces the Company‟s

commitment to continuous disclosure and outline management‟s accountabilities and the processes to be

followed for ensuring compliance.

The policy also contains guidelines on information that may be price sensitive. The Company Secretary has

been nominated as the person responsible for communications with the ASX. This role includes responsibility

for ensuring compliance with the continuous disclosure requirements with the ASX Listing Rules and

overseeing and coordinating information disclosure to the ASX.



6. RECOGNISING AND MANAGING RISK

The Board is responsible for ensuring there are adequate policies in relation to risk management, compliance

and internal control systems. The Company‟s policies are designed to ensure strategic, operational, legal,

reputation and financial risks are identified, assessed, effectively and efficiently managed and monitored to

enable achievement of the Company‟s business objectives. A written policy in relation to risk oversight and

management has been established (“Risk Management and Internal Control Policy”). Considerable importance

is placed on maintaining a strong control environment. There is an organisation structure with clearly drawn

responsibilities.

(a) Board oversight of the risk management system

The Company is not currently considered to be of a size, nor is its affairs of such complexity to justify the

establishment of a separate Risk Management Committee. Instead, the Board, as part of its usual role and

through direct involvement in the management of the Company‟s operations ensures risks are identified,

assessed and appropriately managed. Where necessary, the Board draws on the expertise of appropriate

external consultants to assist in dealing with or mitigating risk.

The Board is responsible for approving and overseeing the risk management system. The Board reviews, at

least annually, the effectiveness of the implementation of the risk management controls and procedures.

The principle aim of the system of internal control is the management of business risks, with a view to

enhancing the value of shareholders' investments and safeguarding assets. Although no system of internal

control can provide absolute assurance that the business risks will be fully mitigated, the internal control

systems have been designed to meet the Company's specific needs and the risks to which it is exposed.

Annually, the Board is responsible for identifying the risks facing the Company, assessing the risks and

ensuring that there are controls for these risks, which are to be designed to ensure that any identified risk is

reduced to an acceptable level.

The Board is also responsible for identifying and monitoring areas of significant business risk. Internal control

measures currently adopted by the Board include:

(a) at least quarterly reporting to the Board in respect of operations and the Company‟s financial position,

with a comparison of actual results against budget; and

(b) regular reports to the Board by appropriate members of the management team and/or independent

advisers, outlining the nature of particular risks and highlighting measures which are either in place or

can be adopted to manage or mitigate those risks.

(b) Risk management roles and responsibilities

The Board is responsible for approving and reviewing the Company‟s risk management strategy and policy.

Executive management is responsible for implementing the Board approved risk management strategy and

developing policies, controls, processes and procedures to identify and manage risks in all of the Company‟s

activities.

The Board is responsible for satisfying itself that management has developed and implemented a sound system

of risk management and internal control.

(c) Chief Executive Officer and Chief Financial Officer Certification

The Chief Executive Officer and Chief Financial Officer, or equivalent, provide to the Board written

certification that in all material respects:

(a) The Company‟s financial statements present a true and fair view of the Company‟s financial condition

and operational results and are in accordance with relevant accounting standards;

(b) The statement given to the Board on the integrity of the Company‟s financial statements is founded on a

sound system of risk management and internal compliance and controls which implements the policies

adopted by the Board; and

(c) The Company‟s risk management an internal compliance and control system is operating efficiently and

effectively in all material respects.

(d) Internal review and risk evaluation

Assurance is provided to the Board by executive management on the adequacy and effectiveness of

management controls for risk on a regular basis.

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