RMP.L Regulatory News (RMP)

27 September 2013 Red Emperor Resources NL ("Red Emperor" or "the Company") Annual Report Set out below is a summary of Red Emperor Resources NL (ASX | AIM: RMP) fullyear annual accounts for the year ended 30 June 2013 as extracted from theannual report, being: * Consolidated Statement of Profit or Loss and Other Comprehensive Income * Consolidated Statement of Financial Position * Consolidated Statement of Cashflow * Consolidated Statement of Changes in Equity A copy of the full Annual Report is available on the Company's websitewww.redemperorresources.com and also the Australian Securities Exchange websiteww.asx.com.au (ASX code: RMP). Letter to Shareholders Dear Shareholder During the financial year, the Company continued to focus on its oil and gasexploration joint venture assets in Georgia and Puntland, as well evaluatingseveral new oil and gas investment opportunities. In the Republic of Georgia, Red Emperor has a 20% working interest in onshoreoil and gas exploration Blocks VIa and VIb, covering approx. 6,500km2. Thejoint venture is focusing on a revised strategy to evaluate low–cost, shallow,appraisal drilling of the continental resources around the Tkibuli–Shaori coaldeposit, which straddle the central sections of the joint venture's two blocks. In Puntland, Red Emperor holds a 20% working interest in two oil and gasexploration licences encompassing the prospective Dharoor and Nugaal valleys.During the year the joint venture completed two landmark exploration wells inthe Dharoor Valley, being the Shabeel–1 and Shabeel North wells. Based on theencouraging results from both Shabeel wells, the joint venture entered the nextexploration period with further seismic work planned for the Dharoor Valleyblock to delineate new structural prospects. The Company continues to preserve its strong cash position and is fully fundedwhilst it continues to consider other opportunities. On behalf of the Board of Directors of Red Emperor, I would like to thank youfor your support as a shareholder of the Company. Greg Bandy Executive Director Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2013 Note 2013 2012 $ $ Revenue from continuing operations 2 523,783 156,344 Finance costs (1,509) (942) Employee and director benefits expense (286,671) (316,669) Financial and company secretarial expenses (154,900) (152,123) Consultants (120,000) (125,000) Audit fees (43,902) (83,465) Legal fees (8,537) (17,313) Insurance (16,217) (14,362) ASX and AIM and share registry fees (320,710) (372,848) Travel (96,032) (218,620) Accounting fees (15,540) (10,953) Occupancy expense (24,396) (13,676) Share based payments expense 17 - (1,052,502) Share of net loss of associate 9 - (629,620) Exploration expenditure written off (3,880) (774,026) Gain/ (loss) on derivative liability 12 459,932 (303,942) Unrealised FX gain/(loss) 26,561 367,620 Other expenses (100,581) (363,432) Loss before income tax (181,600) (3,925,529) Income tax expense 3 - - Loss for the year attributable to owners of (181,600) (3,925,529)the Company Exchange difference on translation of foreign 3,024,098 (606,120)operations Other Comprehensive Income 3,024,098 (606,120) Total Comprehensive Loss for the year 2,842,498 (4,531,649)attributable to the owners of Red EmperorResources NL Total loss attributable to the owners of Red (181,600) (3,925,529)Emperor Resources NL Cents. Cents. Loss per share for loss attributable to theordinary equity holders of the company: Basic loss per share (cents per share) 4 (0.1) (2.1) Diluted loss per share (cents per share) n/a n/a The above consolidated statement of Profit or Loss and Other ComprehensiveIncome is to be read in conjunction with the accompanying notes. Consolidated Statement of Financial Position As at 30 June 2013 Note 2013 2012 $ $ ASSETS Current Assets Cash and cash equivalents 6 11,984,410 18,139,777 Trade and other receivables 7 85,510 1,060,102 Total Current Assets 12,069,920 19,199,879 Non-Current Assets Financial assets at fair value through 8 400 400profit and loss Property, Plant & Equipment 5,398 20,241 Investment accounted for using the equity 9 6,628,472 5,510,096method Exploration and evaluation expenditure 10 26,486,004 16,041,554 Total Non-current Assets 33,120,274 21,572,291 TOTAL ASSETS 45,190,194 40,772,170 LIABILITIES Current Liabilities Trade and other payables 11 60,382 139,925 Derivative financial liability 12 21,676 481,608 Total Current Liabilities 82,058 621,533 TOTAL LIABILITIES 82,058 621,533 NET ASSETS 45,108,136 40,150,637 EQUITY Issued Capital 13 49,646,733 47,531,732 Accumulated Losses 14 (10,756,800) (10,575,200) Reserves 14 6,218,203 3,194,105 TOTAL EQUITY 45,108,136 40,150,637 The above consolidated statement of financial position is to be read inconjunction with the accompanying notes. Consolidated Statement of Cash Flows For the year ended 30 June 2013 Note 2013 2012 $ $ Cash flows from operating activities Payments to suppliers and employees (1,260,508) (1,514,612) Interest received 523,783 156,344 Finance cost (1,509) (942) Net cash flows generated from / (used in) 21 (738,234) (1,359,210)operating activities Cash flows from investing activities Payments for property, plant and equipment - (20,241) Loans received from other entities - 35,000 Payments for exploration and evaluation (7,424,454) (12,831,945) Payments from asset acquisition escrow 984,136 883,290account Payments for investment in associate (1,118,376) (2,931,229) Net cash flows used in investing activities (7,558,694) (14,865,125) Cash flows from financing activities Proceeds from issue of shares and options 2,250,000 30,575,093 Payment of share issue and IPO costs (135,000) (4,520,484) Net cash flows from financing activities 2,115,000 26,054,609 Net increase/ (decrease) in cash and cash (6,181,298) 9,830,274equivalents Cash and cash equivalents at beginning of 18,139,777 7,942,356year Effects of exchange rate changes on cash and 26,561 367,147cash equivalents Cash and cash equivalents at end of year 6 11,984,410 18,139,777 The above consolidated statement of cash flows is to be read in conjunctionwith the accompanying notes. Consolidated Statement of Changes in Equity For the year ended 30 June 2013 Issued Accumulated Forex Share Total Capital Losses Reserve Based Payment $ $ $ $ Balance at 1 July 2011 21,976,015 (6,649,673) (31,161) 25,580 15,320,761 Loss for the year - (3,925,529) - - (3, ,925,529) Exchange difference on - - (606,120) - (606,120)foreign operations Total Comprehensive - (3,925,527) (606,120) - (4,535,649)Income Transaction with owner, 30,411,642 - - - 30,380,142directly recorded inequity: Issue of shares Issue of options - - - 3,805,806 3,805,806 Share issue costs (4,855,925) - - - (4,855,925) Balance at 30 June 2012 47,531,732 (10,575,200) (637,281) 3,831,386 40,150,637 Balance at 1 July 2012 47,531,732 (10,575,200) (637,281) 3,831,386 40,150,637 Loss for the year - (181,600) - - (181,600) Exchange difference on - - 3,024,098 - 3,024,098foreign operations Total Comprehensive - (181,600) 3,024,098 - 2,842,498Income Transaction with owner, 2,250,000 - - - 2,250,000directly recorded inequity: Issue of shares Issue of options - - - - - Share issue costs (135,000) - - - (135,000) Balance at 30 June 2013 49,646,732 (10,756,800) 2,386,817 3,831,386 45,108,136 The consolidated statement of changes in equity is to be read in conjunctionwith the accompanying notes. For further information please visit www.redemperorresources.com or contact: Red EmperorGreg Bandy +61 8 9225 2826Rebecca Sandford +44 20 7025 7040 Fox-Davies Capital Limited (Nominated Adviser and Broker)Jonathan Evans / Simon Leathers +44 20 3463 5000Daniel Fox-Davies / Richard Hail +44 20 3463 5000 Background Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resourcesexploration company with interests in the frontier state of Puntland, Somaliaand the Republic of Georgia. In Puntland, Red Emperor holds a 20% working interest in two licencesencompassing the highly prospective Dharoor and Nugaal valleys. These twoexploration areas cover over 36,000km2. Horn Petroleum, the operator and 60%interest holder, has completed a two well program with the JV having nowentered the next phase of the two Production Sharing Contracts across bothblocks. In the Republic of Georgia, Red Emperor has a 20% working interest in onshoreblocks VIa and VIb, covering approximately 6,500km2. After the drilling of thefirst well in July 2011 Mukhiani -1 the JV has focused on evaluating the largeunconventional CBM potential of the area, as it is seen to be relatively lowrisk and has the potential to contribute cash flow to fund further explorationif successful. The Contingent Resource estimate quoted above of 400bcf of CBM gas at theTkibuli project is sourced from the publically available report by AdvancedResources International's ("ARI") prepared in 2009: CMM and CBM development inthe Tkibuli-Shaori Region, Georgia. Advanced Resources International, Inc.,2009. Prepared for GIG/Saknakhshiri and U.S. Trade and Development Agency. Thereport can be viewed at: http://www.globalmethane.org/documents/toolsres_coal_overview_ch13.pdf The Joint Venture technical consultants have not yet reviewed the details ofARI's resource estimate and the reliability of this estimate and its compliancewith the SPE reporting guidelines or other standard is uncertain. Red Emperorand its JV partners will be seeking to confirm this resource estimate, and seekto define reserves, through its appraisal program and review of historical dataduring the next 12 months.