Audited Final Results for the year ended 31st D...

28 May 2010 GREAT WESTERN MINING CORPORATION PLC ("Great Western Mining", "GWM" or the "Company") Audited Final Results for the year ended 31st December 2009 Chairman's Statement Five years ago the first Great Western Mining claim stakes were hammered into the rocky, barren soil of Bass Mountain, high above Teels Marsh on its eastern flank and Huntoon Valley on the western flank. The total of 21 claims of approximately 20 acres each were registered that year based on the geological files of an earlier prospector, Dan Bracket, who had prospected for half a lifetime in the nearby ghost town of Marrietta, Nevada. At the close of 2009 the area under claim has been extended to 373 full claims and 37 partial claims for a total of 410 claims covering some 33 square kilometers in all. This massive increase in land under mineral claim followed extensive surface sampling of trenches, pits and adits across our area of interest. Such were the results of analytical laboratory testing and resulting geological modeling, that extending the area under claim took precedence over other considerations. This decision was validated by the Competent Person's Report of September 2009 and subsequent update in March of this year. It may even induce your Company to extend acreage further as more test results come available. Driven by a seemingly insatiable demand from Asia for copper to build out the sinews of an emerging super power, for uranium to fuel nuclear plants, as well as gold and silver, the unique treasure box of Nevada's geologically active landscape is drawing-in mineral exploration companies in growing numbers. At the moment there has been considerable staking activity by Canadian (ESO Uranium Ltd., TSX) and American exploration groups adjoining or in the vicinity of GWM. Extensive radon testing has been carried out by one of the groups immediately adjacent to Great Western Claims and overlapping in some cases. The highest radon readings came from this area. While surface mapping, sampling and geo-physical surveys may not excite the blood in the way core hole drilling does, it is nonetheless the most cost effective means of exploration by far. It benefits the Company little if drilling proves up a valuable resource only to see Canadian or other exploration groups jump in to snap up adjoining acreage. Your Directors believe GWM has staked out a significant slice of the cake. The extension of the area under claim combined with the increasing probability of a silver and copper dominated mineral resource as indicated by trenching, pit work, and surface testing to date, and with uranium shows on both east and west flanks of the valley, have opened up a number of new vistas for your Company. It is our intention to move this project forward to the next level of development during the balance of 2010. This will involve geophysical ground surveys, core hole testing, laboratory testing and the first attempts of calculating the depth, extent and value of the mineralization. In the first instance the programme of geo-physical profiling leading to a multi core-hole drilling campaign will be the opening gambit to the drafting of a "cartoon", i.e., a series of cigar or banana shaped images on the surface maps outlining how the mineral deposits are laid out. From this some reasonable estimation as to the depths and total volumes of the ore-in-place can be cast. Finally, some estimates as to the value of the deposit can be calculated. Achieving this level of certainty is an essential step in calculating a profile of valuations that any interested suitor or joint venture partner would require. An alternative plan would be to organise an extended bulk sample test of say, 2,000 to 5,000 tons of ore shipped to an existing smelter, perhaps Yerington, for custom smelting or to enrich a poorer grade mix. In either case, the dollar value of the minerals extracted would give further credence to the monetary values of our ore body. With copper at one stage reaching $8,000 a ton and silver recently above $17 an ounce, it is likely that these two minerals would be the "meat-in-the-sandwich" to deliver early cash-flow in any development. The additional mineralization of gold and uranium add to the potential upside. Your Company and its management must embrace this "step-change" from the pure exploration stage of the past four years, and move on to the "presentation stage" where the alternative choices of joint-venture, acquisition, or extended bulk-tests, must be examined. The ultimate goal is to extract the highest return to shareholders, and this target will be persued relentlessly in the coming year. The year 2010 will, I believe, see your Company move to an exciting stage of development, from pure exploration to quantifying the value of its discoveries. Your Directors are reviewing alternative avenues for finance for this development. Finally, a word of thanks and appreciation to my fellow directors, our consultants in the field and laboratory, and to you, our shareholders, for the wisdom, and perseverance which has contributed so much to our efforts. Sincerely Emmett O'Connell Chairman Statement of Accounting Policies for the year ended 31 December 2009 Great Western Mining Corporation Plc ("the Company") is a company incorporated in Ireland. The Group financial statements consolidate those of the Company and its subsidiary (together referred to as the "Group"). The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. Statement of Compliance As permitted by the European Union, the Group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and their interpretations issued by the International Accounting Standards Board (IASB) as adopted by the EU (IFRS). The individual financial statements of the Company ("Company financial statements") have been prepared in accordance with the IFRSs as adopted by the EU and as applied in accordance with the Companies Acts, 1963 to 2009 which permits a company, that publishes its company and group financial statements together, to take advantage of the exemption in Section 148(8) of the Companies Act, 1963, from presenting to its members its Company Statement of Comprehensive Income Statement and related notes that form part of the approved company financial statements. The IFRSs adopted by the EU as applied by the Company and the Group in the preparation of these financial statements are those that were effective at 31 December 2009. Standards affecting presentation and disclosure The following provides a brief outline of the likely impact on future financial statements of relevant IFRSs and interpretations adopted by the EU which are not yet effective and have not been adopted in these financial statements: IAS 17 Leases As part of Improvements to IFRSs (2009) issued in April 2009, the International Accounting Standards Board amended the requirements of IAS17 Leases regarding the classification of leases of land. Prior to amendment, IAS17 generally required leases of land with an indefinite useful life to be classified as operating leases. This was inconsistent with the general principals of the Standard, and the relevant guidance has been removed due to concerns that it could lead to accounting that did not reflect the substance of arrangements. Following the amendments, leases of land are classified as either 'finance' or 'operating' in accordance with the general principles of IAS17. These amendments are effective for financial periods beginning on or after 1 January 2010, and they are applied retrospectively to unexpired leases at 1 January 2010 if the necessary information was available at the inception of the lease. Otherwise, the revised Standard will be applied based on the facts and circumstances existing on 1 January 2010 (i.e. the date of adoption of the amendments) and the Group will recognise assets and liabilities related to land leases newly classified as finance leases at their fair values on that date; and difference between those fair values will be recognised in retained earnings. The directors anticipate that these amendments to IAS17 will be adopted in the Group's financial statements for the period beginning 1 January 2010. The amendment is not expected to have an impact on the Group financial statements. IFRS 2 Share Based Payment In June 2009, the IASB issued amendments to IFRS 2 Share-based Payment. These amendments clarify the scope of IFRS2, as well as the accounting for Group cash-settled share-based payment transactions in the separate (or individual) financial statements of an entity receiving the goods or services when another group entity or shareholder has the obligation to settle the award. The directors anticipate that these amendments will be adopted in the Group's financial statements for the period beginning 1 January 2010. The amendment is not expected to have an impact on the Group financial statements. IFRS 3 Business Combinations (Revised 2008) This standard is applicable for business combinations occurring in reporting periods beginning on or after 1 July 2009 and will be applied prospectively. The new standard introduces changes to the accounting requirements for business combinations, but still requires use of the purchase method, and will have a significant effect on business combinations occurring in reporting periods beginning on or after 1 July 2009. Management does not expect the standard to have a material effect on the Group's financial statements. IAS 27 Consolidated and Separate Financial Statements The revised standard introduces changes to the accounting requirements for the loss of control of a subsidiary and for changes in the Group's interest in subsidiaries. This standard is effective from 1 July 2009. Management does not expect the standard to have a material effect on the Group's financial statements. Basis of Preparation The Group and Company financial statements are prepared on the historical cost basis. The accounting policies have been applied consistently by Group entities. Functional and Presentation Currency The consolidated financial statements are presented in Euro (EURO), which is the Company's functional currency. Use of Estimates and Judgements The preparation of financial statements in conformity with EU IFRS 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. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. In particular, significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are in the following areas: - Measurement of the impairment of intangible assets - Utilisation of tax losses Revenue Recognition - Interest revenue Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount. Consolidation The consolidated financial statements comprise the financial statements of Great Western Mining Corporation Plc and its subsidiary undertaking for the year ended 31 December 2009. Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account. Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Intragroup balances and any unrealised gains or losses or income or expenses arising from intragroup transactions are eliminated in preparing the Group financial statements. In the Company's own balance sheet, investments in subsidiaries are stated at cost less provisions for any permanent diminution in value. Intangible Fixed Assets (Deferred Exploration Costs) In accordance with International Financial Reporting Standard 6 - Exploration for and Evaluation of Mineral Resources, the Group uses the cost method of recognition. Exploration costs include licence costs, survey, geophysical and geological analysis and evaluation costs, costs of drilling and project-related overheads. Exploration expenditure in respect of properties and licences not in production is deferred and is carried forward in the balance sheet under intangible assets in respect of each area of interest where:- (i) the operations are ongoing in the area of interest and exploration or evaluation activities have not reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves; or (ii) such costs are expected to be recouped through successful development and exploration of the area of interest or alternatively by its realisation. When the directors decide that no further expenditure on an area of interest is worthwhile, the related expenditure is written off or down to an amount which it is considered represents the residual value of the Group's interest therein. Impairment The carrying amounts of the Group's non-financial assets, other than deferred tax 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 intangible assets that have indefinite lives or that are not yet available for use, recoverable amount is estimated at each reporting date. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that is expected to generate cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the Statement of Comprehensive 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 and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis. 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 risk specific to the asset. Taxation Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they probably will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Foreign Currencies Monetary assets and liabilities denominated in a foreign currency are translated into Euro at the exchange rate ruling at the balance sheet date, unless specifically covered by foreign exchange contracts whereupon the contract rate is used. Revenues, costs and non monetary assets are translated at the exchange rates ruling at the dates of the transactions. All exchange differences are dealt with through the income statement. On consolidation, the assets and liabilities of overseas subsidiary companies are translated into Euro at the rates of exchange prevailing at the balance sheet date. Exchange differences arising from the restatement of the opening balance sheets of these subsidiary companies are dealt with through reserves. The operating results of overseas subsidiary companies are translated into Euro at the average rates applicable during the year. Group companies The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: - monetary assets and liabilities for each balance sheet presented are presented at the closing rate at the date of that balance sheet. Non-monetary items are measured at the exchange rate in effect at the historical transaction date and are not translated at each balance sheet date. - income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transaction): and - all resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of monetary items receivable from foreign subsidiaries for which settlement is neither planned nor likely to occur in the foreseeable future are taken to shareholders equity. When a foreign operation is sold, such exchange differences are recognised in the income statement as part of the gain or loss on sale. Share Capital Issue expenses are written off against the premium arising on the issue of share capital. Cash & Cash Equivalents Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short term deposits with an original maturity of three months or less. Bank overdrafts that are repayable on demand and form part of the Group's cash management are included as a component of cash and cash equivalents for the purpose of statement of cash flows. Finance Income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest rate method. Consolidated Statement of Comprehensive Income for the year ended 31 December 2009 Continuing Operations 2009 2008 Notes EURO EURO Administrative expenses (264,969) (410,694) Finance Revenue 1,527 18,425 _________ _________ Loss for the year before tax (263,442) (392,269) Corporation tax expense - - _________ _________ Total Comprehensive Loss for the year (263,442) (392,269) ========= ========= Loss attributable to: Equity holders of the Company (263,442) (392,269) _________ _________ (263,442) (392,269) ========= ========= Total Comprehensive Loss attributable to: Equity holders of the Company (263,442) (392,269) _________ _________ (263,442) (392,269) ========= ========= Earnings per share from continuing operations Basic and Diluted loss per share 3 (0.93) (1.47) ========= ========= Consolidated Statement of Financial Position as at 31 December 2009 31/12/09 31/12/08 Notes EURO EURO Assets Non-Current Assets Intangible assets 705,896 588,036 _________ _________ Total Non-Current Assets 705,896 588,036 Current Assets Trade and other receivables 5,621 13,041 Cash and cash equivalents 59,352 251,490 _________ _________ Total Current Assets 64,973 264,531 _________ _________ Total Assets 770,869 852,567 ========= ========= Equity and Liabilities Capital and Reserves Called up share capital 282,536 267,520 Share premium account 1,602,234 1,399,810 Foreign currency translation reserve - - Retained loss (1,147,104) (883,662) _________ _________ Attributable to owners of the company 737,666 783,668 _________ _________ Total Equity 737,666 783,668 _________ _________ Liabilities Current Liabilities Trade and other payables 33,203 68,899 _________ _________ Total Liabilities 33,203 68,899 _________ _________ Total Equity and Liabilities 770,869 852,567 ========= ========= Notes to the Financial Statements for the year ended 31 December 2009 1. Going concern The financial statements have been prepared on the going concern basis, which assumes that Great Western Mining Corporation Plc will continue in operational existence for the foreseeable future. The validity of this assumption depends on the following: The Directors intend to raise additional finance during 2010 to fund an expanded exploration programme. This additional funding will be used to continue the exploration programme and to fund the administrative expenses of the Company. The financial statements do not include any adjustments that would result if the additional capital is not raised. Whilst taking into consideration the uncertainties described above, the Directors believe that it is appropriate for the financial statements to be prepared on a going concern basis. 2. Segment Information Adoption of IFRS 8 Operating Segments The Group has adopted IFRS 8 Operating Segments with effect from 1 April 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. In contrast, the predecessor Standard (IAS14 Segment Reporting) required an entity to identify two sets of segments (business and geographical), using a risk and returns approach, with the entity's 'system of internal financial reporting to key management personnel' serving only as a starting point for the identification of such segments. As a result, following the adoption of IFRS 8, the identification of the Group's reportable segments has changed. In the prior period, in the opinion of the Directors the operations of the group comprise one class of business being the exploration and development of gold and other minerals. The group's main operations are located within Nevada. The information reported to the Group's chief operating decision maker for the purposes of resource allocation and assessment of segment is specifically focussed on the exploration areas in Nevada. In the opinion of the Directors the Group has only one reportable segment under IFRS 8 which is exploration carried out in Nevada. Information regarding the Group's reportable segments is presented below. Amounts reported for the prior period have been restated to conform to the requirements of IFRS 8. Segment Revenues and Results The following is an analysis of the Group's revenue and results from continuing operations by reportable segment. Segment Revenue Segment Loss 2009 2008 2009 2008 EURO EURO EURO EURO Exploration - Nevada - - (264,969) (410,694) _________ _________ _________ _________ Total for continuing operations - - (264,969) (410,694) ========= ========= Investment revenue 1,527 18,425 ______________________ Loss before tax (continuing operations) (263,442) (392,269) ====================== Segment Information - continued Segment assets and liabilities Segment Assets 2009 2008 EURO EURO Exploration - Nevada 770,869 852,567 ______________________ Consolidated assets 770,869 852,567 ====================== Segment Liabilities Exploration - Nevada 33,203 68,899 ______________________ Consolidated liabilities 33,203 68,899 ====================== Other segment information Depreciation and Additions to amortisation non-current assets 2009 2008 2009 2008 EURO EURO EURO EURO Exploration - Nevada - - 117,860 91,100 ========= ========= ========= ========= Revenue from major products and services The only revenue that the group received during the period related to bank interest, which has been allocated to Ireland. Geographical information The Group operates in two principal geographical areas - Ireland (Country of residence of Great Western Mining PLC) and Nevada (Country of residence of Great Western Mining Limited). The Group does not have revenue from external customers. Information about its non-current assets by geographical location are detailed below: Non-Current Assets 2009 2008 EURO EURO Ireland - - Nevada 705,896 588,036 _________ _________ 705,896 588,036 ========= ========= 3. Loss per share Basic earnings per share The basic and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows: 2009 2008 EURO EURO (Loss) for the period attributable to equity holders of the parent (263,442) (392,269) _________ _________ Number of ordinary shares in issue - start of year 26,752,000 26,752,000 Effect of shares issued during the year 1,501,628 - _________ _________ Weighted average number of ordinary shares for the purposes of basic earning per share 28,253,628 26,752,000 _________ _________ Basic (loss) per ordinary share (0.93) (1.47) ========= ========= Diluted earnings per share Basic and Diluted EPS are the same as there are no potential ordinary shares 4. Other The information contained in this statement has been extracted from the audited Directors' Report and Financial Statements for the year ended 31 December 2009, which contain an unqualified audit report. The Independent Auditors' Report to the Shareholders of Great Western Mining Corporation Plc in the Report & Accounts contains the following statement: "Emphasis of Matter - Going Concern In forming our opinion, we have considered the adequacy of the disclosures made in the financial statements as detailed in Note 1 concerning the preparation of the financial statements on the going concern basis for the period under review. In view of the significance of this matter we feel that this should be brought to your attention. Our opinion is not qualified in this respect." The directors do not recommend the payment of a dividend for the year ended 31 December 2009. A dividend was not paid for the year ended 31 December 2008. The Directors of the Company accept responsibility for this announcement. ---ENDS--- CONTACT DETAILS: Great Western Mining Corporation plc. Emmett O'Connell, Chairman. Tel: +353 51 565844 Fax: +353 51 565 884 Email: emmett@iol.ie Liam McGrattan, Director. Tel: 087 274 5427 Melvyn Quiller, U.K. Director. Tel: 0771 289 9588 SVS Securities Plc - PLUS Corporate Adviser. Tel: 020 7638 5600 Peter Ward / Alexander Brearley. SVS Securities Plc - Broker. Tel: 020 7638 5600 Ian Callaway / Alexander Mattey. ABOUT GREAT WESTERN MINING CORPORATION PLC. 1. GWM is an Irish exploration company with rights over approximately 33 square kilometers of mineral claims in Nevada. U.S.A. 2. GWM's shares are admitted to trading on PLUS-quoted in London, trading symbol GWMO. 3. Website: www.greatwesternmining.com Great Western Mining Corporation plc

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