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HALF-YEAR REPORT

31 DECEMBER 2011

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ACN 147 370 312

INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

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1. CORPORATE DIRECTORY ....................................................................................................................... 3

2. DIRECTORS' REPORT ....................................................................................................................... 4-10

3. AUDITOR’S INDEPENDENCE DECLARATION ....................................................................................... 11

4. STATEMENT OF COMPREHENSIVE INCOME ...................................................................................... 12

5. STATEMENT OF FINANCIAL POSITION ................................................................................................ 13

6. STATEMENT OF CHANGES IN EQUITY ................................................................................................. 14

7. STATEMENT OF CASH FLOWS ............................................................................................................. 15

8. NOTES TO THE FINANCIAL REPORT .............................................................................................. 16-17

9. DIRECTORS' DECLARATION ................................................................................................................. 18

10. INDEPENDENT AUDITOR’S REVIEW REPORT ............................................................................... 19-20

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CORPORATE DIRECTORY

This half-year report covers Sunseeker Minerals Limited (“the Company”) during the half-year ended 31

December 2011. The Company’s functional and presentation currency is AUD ($).

OFFICERS Paul Lloyd (Executive Chairman)

Lyle Thorne (Non-Executive Director)

Nicholas Revell (Non-Executive Director)

Christine Chainey (Company Secretary)

REGISTERED OFFICE C/ Regency Corporate Pty Ltd

Suite 1 GF, 437 Roberts Road

SUBIACO WA 6008

SOLICITORS Steinepreis Paganin

Lawyers and Consultants

Level 4, Next Building

16 Milligan Street

PERTH WA 6000

AUDITORS Bentleys

Level 1, 12 Kings Park Road

WEST PERTH WA 6005

SHARE REGISTRY Advanced Share Registry Ltd

Unit 2, 150 Stirling Highway

NEDLANDS WA 6009

Telephone: (08) 9389 8033

Facsimile: (08) 9389 7871

PRINCIPAL PLACE OF BUSINESS Suite 1 GF, 437 Roberts Road

SUBIACO WA 6008

Telephone: (08) 9476 9200

Facsimile (08) 9381 1122

WEBSITE www.sunseekerminerals.com.au

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DIRECTORS’ REPORT

Your Directors submit the financial report of the entity for the half-year ended 31 December 2011.

Directors and Officers

The names of Directors who held office during or since the end of the half-year:

Paul Lloyd

Lyle Thorne

Nicholas Revell

Company Secretary

Christine Chainey held the position of Company Secretary during the financial period.

Corporate Activity

The Company was incorporated on 15 November 2010.

The company (“Sunseeker” ASX : SKM) successfully listed on the ASX in July 2011 after completing a capital

raising under a prospectus by issuing 15,000,000 shares at $0.20 to raise $3,000,000. Sunseeker is a

Perth based gold and base metals exploration company.

The company has a tight capital structure with a total of 33,000,000 shares on issue. Of this only

16,500,000 are tradeable with 16,500,000 shares held in escrow.

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ABOUT LUCKY DOWNS PROJECT

The project is located 220 kilometres west of Townsville, Queensland. The target commodities on the project

are gold and other base metals over an area of 203 square kilometres. The project consists of exploration

mineral permits EPM 14346, EPM 18368 (in application) and mineral development licence MDL 107.

The Lucky Downs project has undergone limited exploration work (6,500 metres of drilling) but has a number

of identifiable targets in an area known to host economic mineralisation. The Company’s aim is to identify

and explore new mineral discoveries that will significantly upgrade the value of the project, with the ultimate

goal being the mining of identifiable resources. The target commodities are gold and other base metals.

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Review of operation

Sunseeker commenced the process of exploration at the Lucky Dam Project by engaging an external

geological review of all previous work. The process was completed on a target by target basis within the

overall geological and structural framework to assess their present value and determine their exploration

potential.

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The targets have then been ranked and exploration programmes proposed, with emphasis placed on fully

defining the Gold (Au) Zinc (Zn) mineralisation at Galah Dam and felsic volcanic (now kyanite schist)

geological environment identified by previous explorers.

Galah Dam – Location and Regional Structure (GDA 94)

A dipole-dipole array induced polarization survey (IP) was completed across the Galah Dam mineralised zone

in the late 1990’s by previous explorers, and later re-processed by Glengarry Resources Ltd in 2004.

Sunseeker interpreted this data as part of the external review.

Seven (7) 100m spaced lines were completed on NW-SE grid perpendicular to the geological strike (5900N

to 6500N inclusive). A 100m dipole length was used.

The survey was designed to identify chargeable Au/Zn mineralisation and the associated sulphides in what is

described as a plunging “shear zone”. The results were plotted on pseudosections and described on a line

by line basis identifying a chargeability anomaly stretching from section line 5900N to 6500N. In the south

the anomaly was described as dipping at 40o to the SE. This dip increased to vertical on line 6200N and

then reversed dip to the NW in lines 6400N and 6500N.

Glengarry Resources Ltd completed Inversion Modeling on the IP data. This is a mathematical process

generating models based on some degree of understanding of what is being investigated, in this case the

sulphide mineralisation, using the existing drilling data and prior geological knowledge. The model

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demonstrates how the physical property is distributed in the ground. The modeling generated values at 43m,

63m, 85m, 135m, 232m (400rl) and 282m (350rl) below surface. The values are presented as colour

images with scaling from blue to red, the latter representing highest chargeability.

Galah Dam – IP survey data collected in late 1990’s and later re-processed by previous explorers (see text) – Image is

Chargeability -85m depth (497rl)

The chargeability anomaly is open to the north. In section 6500N hole 05GDRC001 was drilled (by

Glengarry) to test the chargeability anomaly. However, the drill hole deviated significantly and only partially

tested the eastern edge of the anomaly.

The zones of higher chargeability correspond to the presence of sulphides in the drilling with the mineralised

trend centered in the areas of highest chargeabilty. This relationship is present on all sections.

The external consultant concluded that work to date at Galah Dam has demonstrated some interesting base

metal values in what is interpreted to be a NE trending shear/fault zone. IP has proved useful in tracing the

mineralisation. It is recommended to complete IP to the north of the present survey to trace potential

OPEN

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extensions. An IP traverse to the south of the present IP survey would also be useful as the pseudosection of

the raw data on 5900N demonstrates the presence of a chargeability anomaly.

As a result of these recommendations, the Company is currently assessing contractor availability and

obtaining cost estimates for a ground based geophysical survey to better define the Galah Dam area.

The company is working on gaining access with the land owners. Cultural Heritage clearance was obtained

during the September 2011 quarter for proposed drilling at Steam Engine (Au) and the main Galah Dam

mineralised zone (Au-Zn).

The Directors believe that the Company has acquired a project with exceptional potential; however, other

projects both in Australia and overseas will be considered for either acquisition or joint venture should they

have the potential to add value to the Company.

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

on information compiled by Mr Greg Smith, a consultant to the company and who is a member of the

Australasian Institute of Mining and Metallurgy. Mr Smith 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 defined in the 2004 Edition of the ‘Australasian Code for Reporting of

Exploration Results, Mineral Resources and Ore Reserves’. Mr Smith consents to the inclusion in the report

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

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Auditor’s Declaration

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on

page 11 for the half-year ended 31 December 2011.

This report is signed in accordance with a resolution of the Board of Directors.

Director

Paul Lloyd

Dated this 20 day of February 2012

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To the Board of Directors

This declaration is made in connection with our review of the financial report of Sunseeker

Minerals Limited for the half-year ended 31 December 2011 and in accordance with the

provisions of the Corporations Act 2001.

We declare that, to the best of our knowledge and belief, there have been:

no contraventions of the auditor independence requirements of the Corporations Act

2001 in relation to the review;

no contraventions of the Code of Professional Conduct of the Institute of Chartered

Accountants in Australia in relation to the review.

Yours faithfully

BENTLEYS CHRIS WATTS CA

Chartered Accountants Director

DATED at PERTH this 20th

day of February 2012

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The accompanying notes form part of this financial report.

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

31 December 2011 15 November 2010

to 31 December 2010

$ $

Revenue 66,412 -

Administration Expense (50,170) -

Employee Benefit Expense (100,800) -

Financial Administration and Compliance Expenses (38,246) -

Legal Expenses (6,084) -

Travel and Accommodation Expense (300) -

Other expenses (3,554) -

Loss before income tax (132,742) -

Income tax expense - -

Loss from continuing operations (132,742) -

Loss for the period (132,742) -

Other comprehensive income/loss - -

Total comprehensive loss for the period (132,742) -

Basic loss per share (cents per share) (0.40) - For

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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

31 December 2011 30 June 2011

$ $

CURRENT ASSETS

Cash and cash equivalents 2,700,439 2,942,443

Trade and Other receivables 19,499 11,648

Other assets 26,213 2,500

TOTAL CURRENT ASSETS 2,746,151 2,956,591

NON-CURRENT ASSETS

Exploration and evaluation expenditure 498,819 470,143

TOTAL NON-CURRENT ASSSETS 498,819 470,143

TOTAL ASSETS 3,244,970 3,426,734

CURRENT LIABILITIES

Trade and other payables 21,449 63,072

TOTAL CURRENT LIABILITIES 21,449 63,072

TOTAL LIABILITIES 21,449 63,072

NET ASSETS 3,223,521 3,363,662

EQUITY

Issued capital 3,393,529 3,400,928

Accumulated losses (170,008) (37,266)

TOTAL EQUITY 3,223,521 3,363,662

The accompanying notes form part of this financial report. For

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STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2011

Issued Capital

Accumulated

Losses

Total

$ $ $

Balance at 15 November 2010 - - -

Loss for the period - - -

Other comprehensive income - - -

Total comprehensive income for period - - -

Transaction with owners recorded directly in

equity

Shares issued 102,000 - 102,000

Balance at 31 December 2010 102,000 - 102,000

Issued Capital

Accumulated

Losses

Total

$ $ $

Balance at 1 July 2011 3,400,928 (37,266) 3,363,662

Loss for the period - (132,742) (132,742)

Other comprehensive income - - -

Total comprehensive income for period - (132,742) (132,742)

Transaction with owners recorded directly in

equity

Capital Raising Costs (7,399) - (7,399)

Balance at 31 December 2011 3,393,529 (170,008) 3,223,521


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STATEMENT OF CASH FLOWS FOR HALF YEAR ENDED 31 DECEMBER 2011

31 December 2011 15 November 2010 to

31 December 2010

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees (244,904) --

Interest received 66,830 --

Payment for exploration expenditure (38,139) --

Net cash used in operating activities (216,213) -

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for project - -

Net cash used in investing activities - -

CASH FLOWS FROM FINANCING ACTIVITIES

Proceed from share issue - 102,000

Payment relating to share issue (25,791) -

Net cash provided (used) by financing activities (25,791) 102,000

Net increase in cash held (242,004) 102,000

Cash at beginning of period 2,942,443 -

Cash at end of period 2,700,439 102,000


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NOTES TO THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

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NOTE 1: BASIS OF PREPARATION

These general purpose financial statements for the interim half-year reporting period ended

31 December 2011 have been prepared in accordance with requirements of the Corporations Act 2001

and Australian Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with

Australian Accounting Standards ensures that the financial report and notes also comply with International

Financial Reporting Standards.

This interim financial report is intended to provide users with an update on the latest Annual Report of

Sunseeker Minerals Limited. As such, it does not contain information that represents relatively insignificant

changes occurring during the half-year within the Company. It is therefore recommended that this financial

report be read in conjunction with the Annual Report of the Company for the year ended 30 June 2011,

together with any public announcements made during the half-year.

The interim financial statements have been prepared in accordance with the accounting policies adopted in

the Company's last annual financial statements for the year ended 30 June 2011, except for the adoption

of Improvements to AASBs 2010 (2010 Improvements) as of 1 January 2011. The 2010 Improvements

made several minor amendments to AASBs. The relevant amendments and their effects on the current

period or prior periods are described below.

The accounting policies have been applied consistently throughout the Company for the purposes of

preparation of these interim financial statements.

Amendment to AASB 101 Presentation of Financial Statements

The amendment provides a choice of presenting the reconciliations for each component of other

comprehensive income either in the statement of changes in equity or in the notes to the financial

statements. The Company has elected to retain reconciliations within the Statement of Changes in Equity as

previously disclosed.

Amendments to AASB 134 Interim Financial Reporting

The amendments clarified certain disclosures relating to events and transactions that are significant to an

understanding of changes in the Company's circumstances since the last annual financial statements. The

Company's interim financial statements as of 31 December 2011 reflect these amended disclosure

requirements, where applicable.

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NOTES TO THE FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

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NOTE 2: ISSUED CAPITAL

There were no movements in the ordinary share capital or issued share capital of the Company in the

current half-year reporting period.

NOTE 3: OPERATING SEGMENTS

Identification of reportable segments

The Company is not of a size and level of activity that requires operating segments based internal reports.

The Company is currently operating in one geographic region being Australia.

NOTE 4: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

NOTE 5: EVENTS SUBSEQUENT TO REPORTING DATE

There were no significant substantial events subsequent to reporting date.

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DIRECTORS’ DECLARATION

The Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 12 to 17:

a. Comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations

Regulations; and

b. Are in accordance with International Financial Reporting Standards issued by the International

Accounting Standards Board, and

c. Give a true and fair view of the Company’s financial position as at 31 December 2011 and of its

performance for the half-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 due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Paul Lloyd

Dated this 20 day of February 2012

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We have reviewed the accompanying half-year financial report of Sunseeker Minerals

Limited (“the Company”) which comprises the statement of financial position as at

31 December 2011, and the statement of comprehensive income, statement of changes

in equity and statement of cash flows for the half-year ended on that date, a statement of

accounting policies, other selected explanatory notes and the directors’ declaration.

The directors of the Company are responsible for the preparation of the half-year

financial report that gives a true and fair view in accordance with Australian Accounting

Standards and the Corporations Act 2001 and for such control as the directors determine

is necessary to enable the preparation of the half-year financial report that is free from

material misstatement, whether due to fraud or error. Attached

Our responsibility is to express a conclusion on the half-year financial report based on

our review. We conducted our review in accordance with Auditing Standard on Review

Engagements ASRE 2410 Review of a Financial Report Performed by the Independent

Auditor of the Entity, in order to state whether, on the basis of the procedures described,

we have become aware of any matter that makes us believe that the financial report is

not in accordance with the Corporations Act 2001 including: giving a true and fair view of

the Company’s financial position as at 31 December 2011 and its performance for the

half-year ended on that date; and complying with Accounting Standard AASB 134 Interim

Financial Reporting and the Corporations Regulations 2001. As the auditor of Sunseeker

Minerals Limited, ASRE 2410 requires that we comply with the ethical requirements

relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other

review procedures. A review is substantially less in scope than an audit conducted in

accordance with Australian Auditing Standards and consequently does not enable us to

obtain assurance that we would become aware of all significant matters that might be

identified in an audit. Accordingly, we do not express an audit opinion. For

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In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe

that the half-year financial report of Sunseeker Minerals Limited is not in accordance with the Corporations Act

2001 including:

a. Giving a true and fair view of the Company’s financial position as at 31 December 2011 and of its

performance for the half-year ended on that date; and

b. Complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations

Regulations 2001.

BENTLEYS CHRIS WATTS CA

Chartered Accountants Director

DATED at PERTH this 20th

day of February 2012

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