Half-yearly Report

Range Resources Ltd ABN 88 002 522 009 34 Parliament Place West Perth WA 6005 PO Box 684 West Perth WA 6872 P: +61 8 9488 5200 F: +61 8 9321 6699 admin@rangeresources.com.au HALF YEARLY REPORT Please find attached the Half Yearly Report for Range Resources Ltd ("Range" or the "Company") for the period ended 31 December 2007. A full pdf version of this report including the Auditor's Declaration of Independence and the Independent Review Report to the Members is available on the Company's website. For and on behalf of the Board. Peter Landau Executive Director Range Resources Ltd. RFC Corporate Finance Fox-Davies Capital (Nominated Adviser) (Broker) Peter Landau Stuart Laing Daniel Fox-Davies + 61 8 9488 5200 +61 8 9480 2500 +44 (0)207 936 5200 www.rangeresources.com.au RANGE RESOURCES LIMITED ABN 88 002 522 009 HALF YEARLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2007 CONTENTS Directors' Report 2-4 Auditors Declaration of Independence 5 Condensed Income Statement 6 Condensed Balance Sheet 7 Condensed Statement of Changes in Equity 8 Condensed Cash Flow Statement 9 Notes to and Forming Part of the Financial Statements 10-15 Directors' Declaration 16 Independent Review Report to the Members 17 CORPORATE DIRECTORY Directors Auditors Sam Jonah - Non Executive Chairman BDO Kendalls Audit & Assurance (WA) Pty Ltd 128 Hay Street Michael Povey - Managing Director SUBIACO WA 6008 Tel: (08) 9380 8400 Peter Landau - Executive Director Fax: (08) 9380 8499 Liban Bogor - Non Executive Director Marcus Edwards-Jones - Non Executive Director Company Secretary Peter Landau Registered Office Share Registry 34 Parliament Place Computershare Investor Services Pty Ltd West Perth, WA 6005 Level 2, Reserve Bank Building Tel: (08) 9488 5200 45 St Georges Terrace Fax: (08) 9321 6699 Perth WA 6000 Tel: (08) 9323 2000 Fax: (08) 9323 2033 Principal Place of Business Home Stock Exchange 34 Parliament Place Australian Stock Exchange Limited West Perth, WA 6005 Level 2 Tel: (08) 9488 5200 Exchange Plaza Fax: (08) 9321 6699 2 The Esplanade Perth WA 6000 Website www.rangeresources.com.au ASX Code: RRS AIM Code: RRL Country of Incorporation Range Resources Limited is domiciled and incorporated in Australia DIRECTORS' REPORT Your directors submit the consolidated financial report of Range Resources Limited for the half year ended 31 December 2007. 1. Directors The names of the Directors who held office during or since the end of the half-year: Sam Jonah Non Executive Chairman Appointed 19 July 2006 Michael Povey Managing Director Appointed 26 August 2005 Peter Landau Executive Director Appointed 8 November 2005 Liban Bogor Non Executive Director Appointed 26 May 2006 Marcus Edwards-Jones Non Executive Director Appointed 29 August 2006 Toufic Rahi Non Executive Director Resigned 4 July 2007 2. Results The Consolidated Entity incurred an operating loss after income tax of $8,276,082 (December 2006: $4,163,775) for the half-year ended 31 December 2007. 3. Review of Operations Puntland Oil and Gas Exploration The Company has consolidated its exploration effort in Puntland for the half year ending 31 December 2007. African Oil Corp ("African Oil"), Range's 80% joint venture partner on the Nogal and Dharoor Blocks in Puntland has been busy preparing for the drilling campaign scheduled to commence in mid 2008. During the half year Africa Oil Corp completed a comprehensive seismic reprocessing program, including review integration of all geophysical and geological data on the Nogal Block. The purpose of the program was to validate and refine the previous exploration targets established by the former concession holder. The program has allowed African Oil to proceed with the proposed drilling program. Under the joint venture agreement, African Oil is committed to spending US$45 million on a 4 well drilling program to earn its 80% interest in the Nogal and Dharoor Blocks. As announced subsequent to the half year ended 31 December 2007, African Oil has entered into a contract for a drilling rig to commence drilling in the Puntland concessions. The contract covers the drilling of two wells with a two well option. The commencement deadline date for drilling is 1 August 2008 however the Company is confident drilling will begin well before this. The drilling contract was signed with Singaporean Company Energi Tata Persada Pte Ltd, a wholly owned subsidiary of Indonesian oil and gas service company Catur Khita Persada. The Company owns four land drilling rigs and performs extensive turn key drilling projects in Indonesia. A new rig will be transported from the Shengli fabrication plant in China in mid May 2008 to Dubai where it will then be mobilized via a chartered vessel into Somalia for expected spudding of the first well in July. This is extremely pleasing news for Range and the Puntland people as the mobilization of the drill rig represents a significant step in the economic development of the Puntland region. In addition the mobilization of the drill rig into the country lends credibility and legitimacy to the project and is a tangible sign to the Government and people of Puntland of the commitment both Range and African Oil have to the project. The mobilization of the drill rig and the eventual spudding of the well will require new camp facilities to be built to house 150 people who will be employed on the project. DIRECTORS' REPORT (cont'd) This commitment to the project has become critical as there was much speculation and debate during the period in relation to a proposed introduction of a National Oil Law by the Transition Federal Government ("TFG") and impact this may have on the Range concessions. However on 13 September 2007, the Government of Puntland reinforced its support for Range and African Oil and formally stated it would not accept the proposed new Law. Subsequent to this the Prime Minister and Energy Minister of the TFG and the major proponents of the new law resigned their posts. The Puntland Government is currently in negotiations with the TFG President, the new Prime Minister and the new Energy Minister with regards to a joint Puntland/TFG development agreement of natural resources which ultimately preserves Range's and African Oil's current agreements with the Puntland Government. Other activities planned for the second half of the 2008 financial year include the commencement of a seismic program in the northern Darfoor block (Range 20%, Africa Oil 80%), the finalization of a contract to commence an initial seismic program and the mobilization of a drill rig into Puntland to commence more comprehensive mineral exploration activities by Range. Corachapi Uranium Project - South East Peru As previously reported, the Company's commitment to the Puntland Project has meant that it has divested its interest in the Corachapi Uranium Project to Contact Resources Limited ("Contact"). The decision was made due to the fact that Range felt it necessary to focus its energy and resources into Puntland, however Range has retained an exposure in the Corachapi Project by way of an equity interest in Contact. Under the terms of the agreement Range has received 8 million shares in Contact. The transaction settled in November 2007. Corporate Update A major highlight and significant milestone for the Company was the successful admission of the Company's shares onto the AIM market of the London Stock Exchange. The AIM listing will significantly enhance the profile of Range, providing international investor's easier access to Range's securities and broadening the potential investor base of the Company for capital raisings that may be required to support its oil and gas and mineral exploration and development activities in Puntland. Upon listing on AIM the Company completed a placement of approximately 18 million new ordinary shares at an issue price of 22 pence each (AUD$0.50) through London based broker Fox Davies Capital Limited. New shareholders were targeted throughout the United Kingdom/Europe to broaden the shareholder base and enhance liquidity on the AIM market. In addition the Company completed a placement to holders of listed options (as at 1 August 2007) of one new option (unlisted $1.00, 1 October 2008) at a subscription price of 1 cent. Simultaneously a 1 for 8 issue to existing shareholders of 1 option ($1.00, 1 October 2010) for every 8 shares held at a subscription price of 1 cent was offered. The Company looks forward to updating Shareholders about other positive developments. DIRECTORS' REPORT (cont'd) 4. Auditors Independence Declaration The Lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 5 for the half-year ended 31 December 2007. This report is made in accordance with a resolution of the Board of Directors. Peter Landau Executive Director Dated this 12th day of March 2008 INDEPENDENCE DECLARATION (refer to pdf version on website) RANGE RESOURCES LIMITED ABN 88 002 522 009 CONDENSED INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated Notes 31 December 31 December 2007 2006 $ $ Revenue from continuing operations Interest Income 311,343 34,852 Other Income 5,000 200,000 Expenses from continuing operations Depreciation (29,032) (16,927) Administration expenses 2 (6,258,208) (4,381,700) Loss on disposal of subsidiaries 7 (1,426,448) - Loan forgiven (353,449) - Foreign Exchange Loss (525,204) - Loss before income tax expense from 2 (8,275,998) (4,163,775) continuing operations Income Tax Expense - - Loss after tax from continuing operations (8,275,998) (4,163,775) Loss from discontinued operations 7 (84) - Net loss for the period (8,276,082) (4,163,775) Net loss attributable to members of the (8,276,082) (4,163,775) parent entity Continuing Operations; Basic loss per share (cents per share) (4.98) (0.32) Diluted loss per share (cents per share) N/A N/A The Company's potential ordinary shares were not considered dilutive as the Company is in a loss position. The accompanying notes form part of this financial report. RANGE RESOURCES LIMITED ABN 88 002 522 009 CONDENSED BALANCE SHEET FOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated Notes 31 December 30 June 2007 2007 $ $ Current Assets Cash and cash equivalents 9,787,715 22,896,484 Trade and other receivables 965,620 606,551 Other current assets 53,016 61,191 Total Current Assets 10,806,351 23,564,226 Non-Current Assets Property, plant & equipment 134,370 105,767 Financial assets available for sale 4,233,450 3,363,450 Exploration expenditure 73,582,471 84,026,027 Other financial assets 1,500,000 - Total Non-Current Assets 79,450,291 87,495,244 Total Assets 90,256,642 111,059,470 Current Liabilities Trade and other payables 141,865 53,219,923 Total Current Liabilities 141,865 53,219,923 Total Liabilities 141,865 53,219,923 Net Assets 90,114,777 57,839,547 Equity Issued capital 6 101,724,692 70,866,367 Reserves 6 11,701,064 10,975,482 Accumulated losses (23,310,979) (24,002,302) Total Equity 90,114,777 57,839,547 The accompanying notes form part of these financial statements. RANGE RESOURCES LIMITED ABN 88 002 522 009 CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated 31 December 31 December 2007 2006 $ $ Total equity at the beginning of the half 57,839,547 21,185,695 year Profit (Loss) for the half year (8,276,082) (4,163,775) Total recognised income and expenses (8,276,082) (4,163,775) (8,276,082) (4,163,775) Shares issued during the half year net of 30,858,325 12,982,949 issue costs Partly Paid Shares issued during the half - 1,125,000 year Options issued/(expired) during the half 9,692,987 1,400,000 year 40,551,312 15,507,949 Total equity at the end of the half year 90,114,777 32,529,869 The accompanying notes form part of this financial report. RANGE RESOURCES LIMITED ABN 88 002 522 009 CONDENSED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2007 Consolidated 31 December 31 December 2007 2006 $ $ Cash Flows From Operating Activities Payments for exploration and evaluation (1,659,311) (2,511,834) Payments to suppliers and employees (1,583,656) (2,170,976) Interest received 311,280 33,528 Other 5,000 - Net cash provided by/(used In) Operating (2,926,687) (4,649,282) Activities Cashflows From Investing Activities Payments for plant and equipment (49,154) (39,519) Payments for exploration and development (16,698,851) (1,596,299) expenditure Proceeds from sale of subsidiary - 200,000 Payments for investments (1,500,000) - Loans to other entities (8,587) (261,923) Net cash provided by/(used In) Investing (18,256,592) (1,697,741) Activities Cashflows From Financing Activities Proceeds from issues of shares 8,423,963 10,000,020 Payment of share issue costs (349,453) (248,486) Net cash provided by/(used in) Financing 8,074,510 9,751,534 Activities Net Increase/(Decrease) In Cash Held (13,108,769) 3,404,511 Cash at beginning of period 22,896,484 1,210,838 Cash at end of period 9,787,715 4,615,349 The accompanying notes form part of these financial statements. RANGE RESOURCES LIMITED ABN 88 002 522 009 NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2007 Note 1: Basis of Preparation The half-year financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standard AASB 134: Interim Financial Reporting, accounting interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. It is recommended that this financial report be read in conjunction with the financial report for the year ended 30 June 2007 and any public announcements made by Range Resources Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. a) Exploration and Evaluation Expenditure The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. b) Discontinued Operations A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary separately on the face of the income statement. NOTES TO THE FINANCIAL STATEMENTS (cont'd) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007 Consolidated Notes 31 December 31 December 2007 2006 $ $ Note 2. Loss for the half year The following significant revenue and expense items are relevant in explaining the financial performance for the interim period: Payment received for Somirelco - 200,000 Consulting Fees 554,975 560,308 Borrowing Costs - 800,000 Share Based Payment 8 4,713,914 1,125,000 Directors Fees 330,998 323,638 Garowe Airport Upgrade - 405,395 Interest Expense 63 202,739 Public Relations Expense 105,077 233,752 Travel Expenses 92,407 353,403 Other expenses 460,774 377,465 Note 3. Events Subsequent To Reporting Date On 28 February 2008 the Company reported that its joint venture partner African Oil had secured a contract for a drilling rig to commence drilling in Puntland in 2008. The contract covers the drilling of two wells with a two well option. Drilling is expected to begin before the contract deadline date of 01 August 2008. Range is free carried in the joint venture with Africa Oil committed to spending US$50 million to earn an 80% share in the project. Note 4. Contingent Liabilities As detailed in the 30 June 2007 Annual Report, the Company completed the acquisition of the remaining 49.9% of the Puntland Rights from Consort Private Limited in May 2007. Under the terms of the Agreement, Range must issue a further 45 million shares and 11.25 million unlisted options ($1.00, 01 October 2010) to Consort upon completion of the first hydrocarbon well drilled in Puntland. In addition upon completion of the first 4 hydrocarbon wells drilled in Puntland, the Company must pay $US20 million to Consort. Consort are also entitled to received a 2.5% net royalty on any Puntland projects derived in respect of Range's interest. The Directors are not aware of any other contingent liabilities as at 31st December 2007. NOTES TO THE FINANCIAL STATEMENTS (cont'd) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007 Note 5. Segment Information Primary Segment - Geographical The consolidated entity operates in two geographical segments being Australia and Somalia and one industry segment, that of mineral exploration. Geographical Australia Somalia Consolidated Segments $ $ $ 31 December 2007 Revenue Interest Revenue 311,343 - 311,343 Results Segment Results (8,276,082) - (8,276,082) 31 December 2006 Revenue Interest Revenue 34,852 - 34,852 Sale proceeds for 200,000 - 200,000 Somirelco Results Segment Results (4,163,775) - (4,163,775) Note 6. Contributed Equity 31 December 30 June 2007 2007 $ $ Issued and paid-up capital 194,304,024 (June 2007: 138,967,635) ordinary shares, fully paid. 5,000,000 (June 2007: 5,000,000) partly paid shares Movements in issued and paid up capital: Balance at the beginning of the 70,866,367 34,891,091 period Shares issued through placements 8,700,456 27,713,772 Shares converted from options 22,362 - Shares issued as consideration for 18,450,000 2,700,000 Puntland rights Director shares issued to Company 4,713,914 - Chairman Shares issued to contractors and - 9,852,100 consultants Partly paid shares issued during - 1,759,000 the period Less cost of share issue (1,028,407) (6,049,596) Balance at the end of the period 101,724,692 70,866,367 No. of Shares No. of Shares Balance at the beginning of the 138,967,635 1,132,219,388 period Ordinary shares issued during the 55,336,389 708,683,056 period Consolidation of capital - (1,701,934,809) Balance at the end of the period 194,304,024 138,967,635 NOTES TO THE FINANCIAL STATEMENTS (cont'd) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007 Note 6. Contributed Equity (cont'd) Options: The Company has on issue 118,206,584 (June 2007:96,710,716) options over un-issued capital in the Company. 31 December 30 June 2007 2007 Number of Number of Options Options Movements in Options: Balance at the beginning of the period 96,710,716 793,584,504 Options issued during the period 90,681,526 617,649,649 Options exercised during the period (22,362) - Options expired (69,163,296) - Consolidation of capital - (1,314,523,437) Balance at the end of the period 118,206,584 96,710,716 Terms And Conditions Of Contributed Equity Ordinary shares have the right to receive dividends and, in the event of winding-up the Company, to participate in the 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 31 December 30 June 2007 2007 $ $ Movements in Reserves: Balance at the beginning of the period 10,975,482 8,499,345 Options issued as brokerage fee 644,316 2,476,137 Options issued as final consideration for 9,048,672 - Puntland rights Options expired and transferred to retained (8,967,406) - earnings Balance at the end of the period 11,701,064 10,975,482 Note 7. Discontinued Operations a. Description On 29 September 2006 the Company announced it had entered a final agreement with Contact Uranium Limited ("Contact") to dispose of its 80% holding in the Corachapi Uranium Project. Under the terms of the agreement Range would divest its 80% share in Sociedad Minera de Responsabilidad Limitada Corachapi ("Somirelco") and its 100% share of Yono Nominees Pty Ltd ("Yono") in return for a non-refundable cash deposit of $250,000 payable immediately and 8 million Contact shares. On 28 November 2007 the final tranche of Contact shares were paid completing the transaction. Financial information relating to the discontinued operations for the period to the date of disposal is set out below. NOTES TO THE FINANCIAL STATEMENTS (cont'd) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007 Note 7. Discontinued Operations (cont'd) (b) Financial performance The financial performance for Somirelco and Yono presented are for the period ended 28 November 2007 (date of disposal) and 31 December 2006. Somirelco Yono 28 November 31 December 28 November 31 December 2007 2006 2007 2006 $ $ $ $ Revenue - - - - Expenses - - (84) (848) Loss before income tax - - (84) (848) Income tax expense - - - - Loss after income tax of - - (84) (848) discontinued operations Loss on sale of company (257,913) - (1,168,451) - before income tax Income tax expense - - - - Loss on sale of company after (257,913) - (1,168,451) - income tax Loss from discontinued (257,913) - (1,168,535) (848) operations (c) Carrying amounts of assets and liabilities The carrying amounts of assets and liabilities for Somirelco and Yono as at 28 November 2007 and at 30 June 2007 are as set out below: Somirelco Yono 28 31 28 31 November December November December 2007 2006 2007 2006 $ $ $ $ Cash 1 1 10 10 Exploration and evaluation 1,245,762 1,245,762 4,054,125 4,054,038 Total assets 1,245,763 1,245,763 4,054,135 4,054,048 Loan from parent company 351,836 351,836 1,614 1,530 Total liabilities 351,836 351,836 1,614 1,530 Net assets/(liabilities) 893,927 893,927 4,052,521 4,052,518 NOTES TO THE FINANCIAL STATEMENTS (cont'd) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007 Note 7. Discontinued Operations (cont'd) (d) Details of the sale of the subsidiaries 28 November 2007 $ Consideration received 3,520,000 Carrying amount of net assets sold (4,946,448) Loss on sale before income tax (1,426,448) Income tax expense - Loss on sale after income tax (1,426,448) Note 8. Related Parties On 12 September 2007 the Company allotted 8,270,025 Ordinary Fully Paid Shares to the Non-Executive Chairman of the Company, Samuel Jonah (to a value of $4,713,914). The allotment of the shares were made pursuant to shareholder approval gained at a general meeting of shareholders on 27 October 2006. On 27 December 2007 application was made to the ASX to have 3,750,000 Partly Paid Shares quoted. The shares were in relation to the conversion by directors of their Partly Paid Shares as approved at a general meeting of shareholders on 27 October 2006. The Partly Paid Shares were allotted and issued at an issue price of $0.60 each and were deemed to have been paid up to $0.30 each, leaving $0.30 payable by the holder. The director's holding of Partly Paid Shares were: Michael Povey 1,500,000 Peter Landau 1,500,000 Marcus Edwards-Jones 750,000 As at 31 December 2007 the shares upon conversion of the Partly Paid Shares had not been issued. RANGE RESOURCES LIMITED ABN 88 002 522 009 DIRECTORS DECLARATION The Directors of the company declare that: 1) The financial statements and notes set out on pages 5 to 14: (i) Give a true and fair view of the financial position of the Consolidated Entity as at 31 December 2007 and its performance for the half-year ended on that date, and (ii) Comply with Accounting Standards AASB 134 "Interim Financial Reporting" and the Corporations Regulations 2001. 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. Signed in accordance with a resolution of the Board of Directors. Peter Landau Executive Director Dated this 12th day of March 2007

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