Red Emperor Regulatory News (RMP)

15 March 2012
Red Emperor Resources NL
("Red Emperor" or "the Company")
Half Year Report for the Period Ending 31 December 2011

Please see below extracts from the Company's Half Year Report for the period ended 31 December 2011, being the:

* Directors' Report

* Consolidated Statement of Comprehensive Income

* Consolidated Statement of Financial Postion

* Consolidated Statement of Cashflows

A copy of the entire Half Year Report is available on the Company's website:

www.redemperorresources.com

For further information please visit www.redemperorresources.com or contact:

Red Emperor
Greg Bandy +61 8 9225 2826
Rebecca Sandford +44 20 7025 7040
Cairn Financial Advisers LLP (Nominated Adviser)
Jo Turner +44 20 7148 7900
Tony Rawlinson
Old Park Lane Capital plc (Broker)
Luca Tenuta +44 20 7493 8188
Michael Parnes
Tavistock Communications
Paul Youens +44 20 7920 3150
Ed Portman
DIRECTORS' REPORT
Your directors present their report on the consolidated entity of Red Emperor
Resources NL and the entities it controlled at the end of, or during, the half
year ended 31 December 2011.

1. Directors

The persons who were directors of Red Emperor Resources NL during the half year and up to the date of this report are:

Mr Greg Bandy (Executive Director)
Mr Jason Bontempo (Non Executive Director)
Mr Stephen Brockhurst (Non Executive Director)

2. Review of Operations for the Half Year ended 31 December 2011

The Consolidated Statement of Comprehensive Income shows a consolidated net loss for the half year ended 31 December 2011 to members of ($2,907,696) (2010: net loss of $892,063).

Puntland Project
During the period the operator of the Puntland onshore licenses, Horn Petroleum
Corp. (TSV: HRN) ("Horn") completed all of the sourcing of drilling related
materials with the majority of materials arriving on site. Site preparation,
including the drill site, air strip, ingress route construction and water wells
were completed in readiness for the spudding of the historic first exploration
well (of two planned), Shabeel-1 well on the Dharoor Block in Puntland.
The Sakson 501 rig will be used to drill both exploration wells which are
expected to take approximately 90 days each for drilling and evaluation and are
the first oil exploration well in the region to be drilled in over 20 years.
Red Emperor has an option, but not an obligation to participate in the second
well.
The Shabeel and Shabeel North prospects are located on a Jurassic aged rift
system, which is part of the same system that has proven to be highly
productive in the Masila and Shabwa Basins in Yemen. These basins contain an
estimated 6 billion barrels of oil. Both Shabeel and Shabeel North are very
large fault block prospects with internal most likely estimates of potential
oil volumes of over 300 million barrels of recoverable oil. Source rocks are
expected to be rich Jurassic Kimmeridgian shales in the deep portion of the
rift immediately down dip from the Shabeel prospects. Reservoirs are expected
to be sandstones and carbonates of the Lower Cretaceous and Jurassic systems
analogous to Yemen.
Georgian Project
During the period, the Company, along with its joint venture partners,
successfully spudded the first exploration well - Mukhiani 1, on the Vani 3
Prospect on Block VIa with a planned target depth of circa 3,500m. The Mukhiani
Well reached a total depth of circa 1,550m, and following the analysis of the
re interpretation of the seismic supported by the Mukhiani-1 Vertical Seismic
Profiling ("VSP"), results indicated that the well encountered previously
unrecognised faults that led to possible basement being encountered far earlier
than predicted.
New fault trap and stratigraphic trapping potential were also identified in the
vicinity of the well and based on these findings; the joint venture has the
option to side-track and test these targets. However, the Company and its
partners decided that, based on its exploration schedule and the availability
of the drilling rig, that it would continue onto the next proposed Kursebi well
with site. Severe weather that has been experienced in Georgia over recent
weeks which has delayed the anticipated spudding of the second Georgian well
into April 2012.

Also during the period, new independent technical consultants were engaged, NTD Energy, to provide overall technical support with respect to the Georgian operations which include:

* Providing a fresh review of all of the seismic and geological data across

the top 3 Kursebi prospects previously identified, as well as across the

whole license areas;

* Assisting in the management and supervision of the Company's drilling

program for the Namakhavani well on the Kursebi 6 prospect; and

* Assisting in the promotion and development of the unconventional (shale /

CBM) plays that may exist across the two license areas.

Jillewarra Project

During the period the Company was advised by its joint venture partner, Cazaly
Resources, that Maxtrix Metals had not exercised their option to proceed with
drilling on the Jillewarra Project. As a result of the obligation to spend
money on the project reverting back to Red Emperor, the Company decided to
relinquish its rights and as a result all obligations with respect to the
Jillewarra Project.

Corporate

During the period, the Company sought shareholder approval at a general meeting
in respect of its change of activity to a natural resources explorer and
re-compliance with the ASX Listing Rules. As part of the re compliance, the
Company raised a further $1 million by issue of 2,857,142 shares at an issue
price of A$0.35 pursuant to a prospectus. The Company also issued a total of
9,226,162 options to directors, management and advisors, and completed the
second tranche of an earlier placement raising of $400,000 by the issue of
2,000,000 shares at an issue price of A$0.20.
During December 2011 the Company completed a placement raising approximately
$6.32 million by issue of 37,178,123 shares at an issue price of £0.11 (A$0.17)
to sophisticated investors in Australia and the UK. As part of the placement,
the Company issued 2,331,596 unlisted options exercisable at £0.11 and A$0.17
respectively by 31 December 2014 to advisors assisting with the capital
raising.

3. Subsequent Events

Subsequent to period end the Company, along with its joint venture partners,
successfully spudded the historic Shabeel-1 well on the Dharoor Block in
Puntland which has a total planned maximum depth of 3,800 meters. Drilling
operations also commenced on the Shabeel North-1 well with the setting of the
30 inch surface casing and the drilling of a 50 meter pilot hole. The Company
has an option over the second well where a decision to participate will be made
following consideration of the drilling results of the first well.
The Sakson 501 rig is being used to drill both wells which are expected to take
approximately 90 days each for drilling and evaluation. These two wells
represent the first exploration wells to be drilled in the country in over 20
years and will satisfy the first exploration period drilling commitments as
required under the Production Sharing Contracts for both the Dharoor and Nugaal
Blocks. In order to provide sufficient time to evaluate drilling results, the
Puntland Government has granted an extension of the first exploration period
expiry date to 17 October 2012.
As released to ASX on 8 March 2012, "the Shabeel-1 well continues drilling
ahead on the Dharoor Block in Puntland, Somalia and is currently at a depth of
2002 meters. The upper 1600 meters of section drilled to date includes a thick
section of Tertiary limestones and shales that appear to be a regional seal as
no oil or gas shows were encountered above this depth. The well is currently
drilling a 400 meter section composed of interbedded sandstones and shales
believed to be Upper Cretaceous in age. Most of the sandstone intervals in this
section have exhibited oil and gas shows confirming the existence of a working
petroleum system. Determination of the quality of the reservoir and
prospectivity of any potential oil bearing intervals cannot be determined until
downhole electric logs and formation tests are concluded."
Subsequent to the period end, the Company has announced details of a 2 tranche
capital raising to raise approximately £8.2 million by way of issue of
45,472,204 Shares at an issue price of £0.18 (A$0.265). In March 2012 the
Company completed the first tranche and issued 16,194,013 shares. It is
anticipated that the tranche 2 shares and oversubscription shares will settle
following shareholder approval at a meeting to be held on 28 March 2012.

4. Auditors Independence Declaration

The Auditor's Independence Declaration on page 4 forms part of the Director's Report for the half year ended 31 December 2011.

This relates to the audit report, where they state that they have issued an independent declaration.

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

Greg Bandy
Executive Director
Perth, Western Australia, 15 March 2012

Consolidated Statement of Comprehensive Income

Note Half Year Half Year

2011 2010

$ $

Revenue from continuing
operations
Profit on sale of shares - 3,441

Interest income 85,761 9,769

Administration expenses (319,454) (182,829)

Compliance and regulatory (237,873) (18,588)
expenses

Consultancy costs - (16,667)

Director fees (174,400) (83,189)

Occupancy expense - (4,000)

Corporate advisory (40,000) (600,000)

Share based payments expense 4 (1,040,198) -

Impairment of exploration 5 (774,026) -
expenditure

Loss of associate 6 (629,620) -

Forex gain/(loss) 222,114 -

Loss before income tax expense (2,907,696) (892,063)

Income tax expense - -

Loss for the half year (2,907,696) (892,063)

attributable to owners of the

company

Exchange difference on 438,746 -
translation of foreign
operations

Other comprehensive income 438,746 -

Total comprehensive income for (2,468,950) (892,063)
the half year attributable to

owners of the company

Basic loss per share (cents per (0.162) (0.011)

share)

Diluted loss per share (cents N/A N/A
per share)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes set out in the full report.

Consolidated Statement of Financial Position

Note 31 December 2011 30 June 2011

$ $

ASSETS

Current Assets

Cash and cash equivalents 4,680,656 7,942,356

Trade and other receivables 3,572,564 2,816,113

Total Current Assets 8,253,220 10,758,469

Non-Current Assets

Property, plant and equipment 19,997

-

Financial assets at fair value through 400

400
profit and loss

Investment accounted for using the 6 4,540,314 3,208,487
equity method

Exploration and evaluation expenditure 5 7,794,763 1,950,369

Total Non-current Assets 12,355,474 5,159,256

TOTAL ASSETS 20,608,694 15,917,725

LIABILITIES

Current Liabilities

Trade and other payables 141,062 596,964

Derivative financial liability 10 177,666

-

Total Current Liabilities 318,728 596,964

TOTAL LIABILITIES 318,728 596,964

NET ASSETS 20,289,966 15,320,761

EQUITY

Issued Capital 4 28,812,151 21,976,015

Accumulated losses (9,557,368) (6,649,673)

Reserves 1,035,183 (5,581)

TOTAL EQUITY 20,289,966 15,320,761

The above consolidated statement of financial position should be read in conjunction with the accompanying notes set out in the full report.

Consolidated Statement of Cashflows

Note 31 December 2011 31 December 2010

$ $

CASH FLOWS FROM OPERATING
ACTIVITIES

Payments to suppliers and (763,524) (576,476)
employees (inclusive of GST)

Finance and interest costs (541) (3,793)

Interest received 85,761 9,769

Net cash provided by (used in) (678,304) (570,500)
operating activities

CASH FLOWS FROM INVESTING
ACTIVITIES

Payments for exploration and (8,579,867) (8,264)
evaluation

Payment for purchase PP&E (19,997)

Payments for other financial - (9,349)
assets at fair value through
profit or loss

Proceeds from disposal of - 332,185
financial assets through
profit or loss

Payments for asset acquisition -

(2,206,775)

Net cash provided by (used in) (8,599,864) (1,892,203)
investing activities

CASH FLOW FROM FINANCING
ACTIVITIES

Proceeds from issue of shares 6,512,224 2,800,000
and options

Payments for share issue costs (530,756) (180,732)

Proceeds from repayment of 35,000 -
loan

Net cash provided by (used in) 6,016,468 2,619,268
financing activities

Net increase/(decrease) in (3,261,700) 156,565
cash held

Cash and cash equivalents at 7,942,356 60,001

the beginning of the half-year

Cash and cash equivalents at 4,680,656 216,566
end of half-year

The above consolidated statement of cashflows should be read in conjunction with the accompanying notes set out in the full report.