Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Union Resources Ltd (URL)

  Print      Mail a friend

Friday 17 March, 2006

Union Resources Ltd

Interim Results

Union Resources Limited
17 March 2006


news release

For immediate release: 17 March 2006

                            UNION RESOURCES LIMITED
           FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2005

Please find attached herewith a copy of the Company's Interim Financial report
to 31 December 2005.

DIRECTORS REPORT

The Board of Directors of Union Resources Limited ('Union') present their report
of the financial half-year ended 31 December 2005.

DIRECTORS

The names and details of the directors of Union Resources Limited in office at
the date of this report are:

I J Burton       Ian James Burton is the non-executive Chairman of the Board and
(Chairman)       has over 30 years experience in many facets of mining and
                 business activities, during which time he has held many
                 directorships of public and listed companies. He is also a
                 director of MRI Holdings Limited, Merchant House International
                 Limited, Ellendale Resources Limited, Union Zinc Pty Ltd and
                 Tox Free Solutions Limited. Director since 1990. Mr Burton's
                 special duties include membership of the Audit Committee.

R B Murdoch B.A. Robert Boutflower Murdoch is the Managing Director of Union
(Earth           Resources Limited. He has over 30 years of international
Sciences),       exploration, mining and business experience in the management
M.A.I.M.M.,      of public companies predominantly in the mining industry. He is
M.A.I.G.         currently a director of the economic entities within the Union
(Managing        Group, Gold Aura Limited, Jab Technologies Limited and Austex
Director)        Mining NL. Director since 1992. Mr Murdoch's special duties
                 include membership of the Mehdiabad Zinc Project Steering
                 Committee.

J D              James Desmond Collins-Taylor has extensive corporate finance
Collins-Taylor   experience and has been involved in a number of major
BA Bus ACA       transactions involving companies listed on the London and Hong
(Non-executive   Kong Stock Exchanges. He has been involved in private equity
Director)        and venture capital business in Asia since 1992, prior to which
                 he spent 12 years with Deloitte Touche Tohmatsu. Non-executive
                 Director since 18 May 2005. Mr Collins-Taylor's special duties
                 include membership of the Audit Committee, Remuneration and
                 Nomination Committee and the Mehdiabad Zinc Project Financing
                 Committee.

I W Ross         Ian Wargent Ross has over forty years experience in
Dip Mgmt         international business in Europe, USA, Asia and Australasia and
(Independent     has been at the leading edge of the development and
non-executive    implementation of new financial techniques particularly for
Director)        companies in the resources industry. He qualified as, andis
                 currently,an Associate of the Chartered Institute of Bankers
                 and holds a Diploma from the School of Management Studies,
                 Regent Street, London. Mr Ross has worked at the most senior
                 level with many of the major Australian companies in resolving
                 sensitive, difficult problems and providing financial advice.
                 Non-executive Director since 23 June 2005. Mr Ross's special
                 duties include membership of both the Audit Committee
                 (Chairman), Remuneration and Nomination Committee and the
                 Mehdiabad Zinc Project Financing Committee.

K-A Waplan       Karl-Axel Waplan is the President and CEO of Lundin Mining
MSc. Mech Eng    Corp. Lundin Mining is a Canadian mining and exploration
(Independent     company with a primary focus in Europe. Karl-Axel has a Master
non-executive    of Science in Mechanical Engineering from the Royal Institute
Director)        of Technology, Stockholm, Sweden. He brings over 25 years
                 professional and mining experience to the Board and has
                 extensive international experience in project financing, mine
                 development, business negotiations and management of joint
                 ventures. Non-executive Director since 12 September 2005. Mr
                 Waplan's special duties include membership of the Remuneration
                 and Nomination Committee and the Mehdiabad Zinc Project
                 Financing Committee.

K E Larsson      Kjell Emil Larsson is a respected mining engineer and has a
(Independent     Master of Science in Mining Engineering from Lulea University
non-executive    Sweden. He has held senior management positions for over 14
Director)        years including over seven years international experience and
                 six years direct engineering experience in innovative and
                 low-cost mining companies. He is currently employed as Vice
                 President of Mining with Lundin Mining Corp. Non-executive
                 Director since 12 September 2005. Mr Larsson's special duties
                 include membership of the Mehdiabad Zinc Project Steering
                 Committee.


All Directors shown were in office for the entire half-year and up to the date
of this report, unless otherwise stated.



Principal Activities

During the financial period the principal continuing activities of the
consolidated entity consisted of:-

a)  Managing the Mehdiabad Zinc Project in Iran;

b)  Negotiating with various parties on the sale and settlement of the Company's
    investment in Eastern Telecommunications of the Philippines Inc; and
c)  Completed an equal capital reduction through an in-specie share distribution 
    of its Gold Aura Limited's shares to the Company's shareholders.


Review and results of operations

The consolidated entity recorded a net loss of $2,151,692 for the six months
ended 31 December 2005 (2004: Loss: $1,964,769).

During the financial period the Company focused its activities within the mining
resource sector, conducted an in-specie share distribution of its Gold Aura
Limited investment and continued to manage the sale process of its interest in
Eastern Telecommunications of the Philippines Inc. The details of the Company's
activities in these areas are as follows:

During the period under review Union Resources Limited (Union) has focused on
the second stage of a three stage Bankable Feasibility Development Stage (BFDS)
program, into the viability of the Mehdiabad Zinc Deposit in Iran.

The implementation of the BFDS follows the successful discovery of a world class
zinc, lead and silver resource at Mehdiabad that can be extracted by way of a
major open pit, with a mine life of around 30 years. The ore extracted can then
be processed using acid leaching techniques to produce zinc metal and lead and
silver concentrates.

The key activities on the project over the past six months have been:

  (a)  In fill drilling to upgrade and convert inferred resources into measured 
       and indicated resources.
  (b)  Verification of the resource data base and construction of a block model
       for resource estimates and mine pit optimization.
  (c)  Geotechnical drilling, test pitting and laboratory testing to assess the
       stability of the open pit walls, the proposed waste dump and plant site.
  (d)  Pit optimisation for several production scenarios and preliminary waste
       dump design.
  (e)  The drilling of 4 holes specifically to provide samples for comminution 
       and continuous cycle sulphide metallurgical testing.
  (f)  Comminution testwork to determine the crushing and grinding circuit.
  (g)  Oxide and sulphide metallurgical test work to determine the variability 
       of the zinc recovery across the entire resource.
  (h)  Bench scale testwork on the sulphide ore and sulphide flow sheet design.
  (i)  Completion of the oxide pilot plant work and oxide flow sheet design.
  (j)  Integration of the oxide and sulphide flow sheet and its engineering into 
       an operational plant design and layout.
  (k)  Plant site selection, review of infrastructure and capital cost 
       variations.
  (l)  Environmental base line studies at the mine site.
  (m)  Hydrological studies into potential sources of process and potable water 
       for the project.
  (n)  The commencement of the preparation of the second stage BFDS report.
  (o)  A review of the capital and operating costs of the project.
  (p)  Preliminary financial modelling.

Whilst there is still a lot of technical activity to be completed, within the
next six months the focus is expected to start to move towards the Project
Financing Stage. If both the final stage BFDS report and Finance Plan can be
finalised and implemented in the next 12 months, development of the Project
could commence in 2007.

The project is expected to produce 400,000 tonnes per annum of zinc metal and
100,000 tonnes of lead and 4 million ounces of silver per annum. Fully developed
the project is expected to be one of the world's largest and lowest cost zinc
producers, providing strong positive cash flows over a long mine life.


Indemnification and insurance of directors and officers

Union Resources Limited carries insurance that indemnifies directors and
officers of the company in relation to all liabilities and expenses arising as a
result of the performance of their duties in their respective capacities
indemnified to the extent permitted by law.


Auditors' independence

Section 307C of the Corporations Act 2001 requires the Company's auditors,
Pitcher Partners, to provide the directors with a written Independence
Declaration in relation to their review of the financial report for the period
ended 31 December 2005. The written Auditor's Independence Declaration is
attached to the Directors' Report and forms part of this Directors' Report.


Rounding

The company is of a kind referred to in Class Order 98/0100, issued by the
Australian Securities and Investments Commission, relating to the 'rounding off'
of amounts in the financial report. Amounts in the financial report have been
rounded off in accordance with that Class Order to the nearest dollar.

RB Murdoch
Director
Brisbane, 16 March 2006



 Auditors' Independence Declaration to the Directors of Union Resources Limited

In relation to our review of the half-year financial report of Union Resources
Limited and its controlled entities for the half-year ended 31 December 2005, to
the best of my knowledge and belief, there have been no contraventions of the
auditor independence requirements of the Corporations Act 2001 or any applicable
code of professional conduct.


PITCHER PARTNERS

R J St Clair
Partner

Brisbane, 16 March 2006



--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT                    Notes   DECEMBER     DECEMBER
                                                           2005         2004
For the half-year ended 31 December 2005                   $            $
--------------------------------------------------------------------------------
Revenues from continuing operations                3      110,454       92,493
Revenues from non-continuing operations            3    1,792,514      993,550
Expenses from continuing operations                3     (740,173)    (574,079)
Expenses from non-continuing operations            3   (3,314,487)  (2,476,733)
                                                        -----------  -----------
Loss before income tax                                 (2,151,692)  (1,964,769)
Income tax expense
                                                       -----------  -----------
Loss from operations                                   (2,151,692)  (1,964,769)
Profit attributable to minority interest                   63,246      213,860
                                                        -----------  -----------
Loss attributable to members of
Union Resources Limited                                (2,088,446)  (1,750,909)
                                                        -----------  -----------

Loss per share for loss attributable to the                   Cents        Cents
ordinary equity holders of the company
Basic loss per share (cents per share)                      (0.24)       (0.52)
Diluted loss per share (cents per share)                    (0.24)       (0.52)


The above consolidated income statement should be read in conjunction with the
accompanying notes.

--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET            Notes       31 DECEMBER         30 JUNE 
                                                      2005               2005
As at 31 December 2005                                 $                    $
--------------------------------------------------------------------------------

ASSETS
Loss from continuing operations
Cash and cash equivalents                          2,812,903         1,896,566
Receivables                                          275,663           186,992
                                                   -----------       -----------
                                                   3,088,566         2,083,558
Assets of disposal group
classified as held for sale       5(b)             5,700,000         5,700,001
                                                   -----------       -----------
Total current assets                               8,788,566         7,783,559
Non-current assets
Other financial investments                          394,712           330,562
Property, plant and equipment                         51,946            30,188
Exploration and evaluation expenditure            18,146,187        15,111,175
Other assets                                          65,260           211,026
                                                   -----------       -----------
Total non-current assets                          18,658,105        21,382,952
                                                   -----------       -----------
Total Assets                                      27,446,671        23,466,510
                                                   -----------       -----------

LIABILITIES
Current liabilities
Payables                                           1,399,589         1,096,928
Provisions                                            40,715            41,364
                                                   -----------       -----------
Total current liabilities                          1,440,304         1,138,292
                                                   -----------       -----------
Non-current liabilities
Payables                                             315,159           302,035
Provisions                                            19,793            43,315
                                                   -----------       -----------
Total non-current liabilities                        334,952           345,350
                                                   -----------       -----------
Total liabilities                                  1,775,256         1,483,642
                                                   -----------       -----------
Net assets                                        25,671,415        21,982,868
                                                   -----------       -----------

EQUITY
Contributed equity                                87,797,077        80,419,340
Reserves                                             821,159         1,191,429
Accumulated losses                               (62,946,821)      (61,202,493)
                                                   -----------       -----------
Parent entity interest                            25,671,415        20,408,276
Minority interest                                          -         1,574,592
                                                   -----------       -----------
Total equity                                      25,671,415        21,982,868
                                                   -----------       -----------


The above consolidated balance statement should be read in conjunction with the
accompanying notes.

--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half-year ended 31 December 2005                  DECEMBER     DECEMBER
                                                           2005         2004
                                                 Notes       $            $
--------------------------------------------------------------------------------

Total equity at the beginning of the half-year         21,982,868   18,579,568
                                                        -----------  -----------
Adjustment on adoption of AASB 132 and AASB
139, net of tax
Divested assets, net of tax                            (1,537,495)
                                                        -----------  -----------
Net income recognised directly in equity               (1,537,495)           -
Loss for the half-year                                 (2,151,692)  (1,964,769)
                                                        -----------  -----------
Total recognised income and expense
for the half-year                                      (3,689,187)  (1,964,769)
                                                        -----------  -----------

Transactions with equity holders in their
capacity as equity holders:
Contributions of equity, net of
transaction costs                                  6    7,377,734    1,967,893
                                                        -----------  -----------
Total equity at the end of the half-year               25,671,415   18,582,782
                                                        -----------  -----------

Total recognised income and expense for the
half-year is attributable to:
Members of Union Resources Limited                     (3,625,941)  (1,750,909)
Minority interest                                         (63,246)    (213,860)
                                                        -----------  -----------
                                                       (3,689,187)  (1,964,769)
                                                        -----------  -----------
Effect of correction of error in previous
year, being a reduction in retained earnings           
attributable to members of Union Resources
Limited                                                         -            -
                                                        -----------  -----------


The above consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.


--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT                      DECEMBER      DECEMBER 
                                                        2005          2004
For the half-year ended 31 December 2005    Notes        $              $
--------------------------------------------------------------------------------

Cash flows from operating activities
Receipts from customers (inclusive
of goods and services tax)                              266,486         1,419
Payment to suppliers and employees
(inclusive of goods and services tax)                  (910,991)     (362,826)
Interest received                                        80,271        57,977
                                                      -----------   -----------
Net cash outflow from operating activities             (564,234)     (303,430)
                                                      -----------   -----------

Cash flows from investing activities
Payment for purchase of exploration,
evaluation and development assets                    (5,918,230)   (1,770,186)
Payment for property, plant and equipment                     -       (28,171)
Proceeds available from sale of
available-for-sale financial assets                           -       (26,760)
Loans to related parties                                      -       (68,695)
Proceeds from disposal of physical
non-current assets                                            -         2,056
                                                      -----------   -----------
Net cash (outflow) from investing
activities                                           (5,918,230)   (1,891,756)
                                                      -----------   -----------

Cash flows from financing activities
Proceeds from issues of shares and
other equity securities                               8,259,409     2,952,052
Share issue transaction costs                          (110,053)      (95,468)
                                                      -----------   -----------
Net cash inflow from financing activities             8,149,356     2,856,584
                                                      -----------   -----------

                                                      -----------   -----------
Net increase in cash and cash equivalents             1,666,892       661,398
Cash and cash equivalents at the
beginning of the half-year                            1,896,566     1,584,875
                                                      -----------   -----------
Cash and cash equivalents at the end
of the half-year                                      3,563,458     2,246,273
                                                      -----------   -----------


The above consolidated cash flow statement should be read in conjunction with
the accompanying notes.


NOTES TO THE FINANCIAL STATEMENTS

1. Summary of significant accounting policies

This general purpose financial report for the interim half year reporting period
ended 31 December 2005 has been prepared in accordance with Accounting Standard
AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this report is to
be read in conjunction with the annual report for the year ended 30 June 2005
and any public announcements made by Union Resources Limited during the interim
reporting period in accordance with the continuous disclosure requirements of
the Corporations Act 2001.

(a) Basis of preparation of half-year financial report

The principal accounting policies adopted in the preparation of the financial
report are set out below. These policies have been consistently applied to all
the periods presented, unless otherwise stated.

Application of AASB 1 First-time Adoption of Australian Equivalents to
International Financial Reporting Standards

This interim financial report is the first Union Resources Limited interim
financial report to be prepared in accordance with AIFRSs. AASB 1 First time
Adoption of Australian Equivalents to International Financial Reporting
Standards has been applied in preparing these financial statements.

Financial statements of Union Resources Limited until 30 June 2005 have been
prepared in accordance with previous Australian Generally Accepted Accounting
Principles (AGAAP). AGAAP differs in certain respects from AIFRS. When preparing
the Union Resources Limited interim financial report for the half year ended 31
December 2005, management has amended certain accounting, valuation and
consolidation methods applied in the previous AGAAP financial statements to
comply with AIFRS. With the exception of financial instruments, the comparative
figures were restated to reflect these adjustments. The Group has taken the
exemption available under AASB 1 to only apply AASB 139 Financial Instruments:
Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and
Measurement from 1 July 2005.

Reconciliations and descriptions of the effect of transition from previous AGAAP
to AIFRSs on the Group's equity and its net income are given in Note 9.

Early adoption of standard

The Group has elected to apply AASB 119 Employee Benefits (issued in December
2004) to the reporting periods beginning 1 July 2005. This includes applying
AASB 119 to the comparatives in accordance with AASB 108 Accounting Policies,
Changes in Accounting Estimates and Errors.

Historical cost convention

These financial statements have been prepared under the historical cost
convention, as modified by the revaluation of available-for-sale financial
assets, financial assets and liabilities (including derivative instruments) at
fair value through profit or loss, certain classes of property, plant and
equipment and investment property.

(b) Principles of consolidation

(i) Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of
all subsidiaries of Union Resources Limited (''company'' or ''parent entity'')
as at 31 December 2005 and the results of all subsidiaries for the half-year
then ended. Union Resources Limited and its subsidiaries together are referred
to in this financial report as the Group or the consolidated entity.

Subsidiaries are all those entities (including special purpose entities) over
which the Group has the power to govern the financial and operating policies,
generally accompanying a shareholding of more than one-half of the voting
rights. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing whether the Group
controls another entity.

Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are de-consolidated from the date that control
ceases.

The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group.

Inter-company transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.

Minority interests in the results and equity of subsidiaries are shown
separately in the consolidated income statement and balance sheet
respectively.

1. Summary of significant accounting policies (continued)

(b) Principles of consolidation (continued)

(ii) Associates

Associates are all entities over which the Group has significant influence but
not control, generally accompanying a shareholding of between 20% and 50% of the
voting rights. Investments in associates are accounted for in the parent entity
financial statements using the cost method and in the consolidated financial
statements using the equity method of accounting, after initially being
recognised at cost. The Group's investment in associates includes goodwill (net
of any accumulated impairment loss) identified on acquisition.

The Group's share of its associates' post-acquisition profits or losses is
recognised in the income statement, and its share of post-acquisition movements
in reserves is recognised in reserves. The cumulative post-acquisition movements
are adjusted against the carrying amount of the investment. Dividends receivable
from associates are recognised in the parent entity's income statement, while in
the consolidated financial statements they reduce the carrying amount of the
investment.

When the Group's share of losses in an associate equals or exceeds its interest
in the associate, including any other unsecured receivables, the Group does not
recognise further losses, unless it has incurred obligations or made payments on
behalf of the associate.

Unrealised gains on transactions between the Group and its associates are
eliminated to the extent of the Group's interest in the associates. Unrealised
losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates have been
changed where necessary to ensure consistency with the policies adopted by the
Group.

(iii) Joint Ventures

Joint venture operations

The proportionate interests in the assets, liabilities and expenses of a joint
venture operation have been incorporated in the financial statements under the
appropriate headings.

Joint venture entities

The interest in a joint venture partnership is accounted for in the consolidated
financial statements using the equity method and is carried at cost by the
parent entity. Under the equity method, the share of the profits or losses of
the partnership is recognised in the income statement, and the share of
movements in reserves is recognised in reserves in the balance sheet.

Profits or losses on transactions establishing the joint venture partnership and
transactions with the joint venture are eliminated to the extent of the Group's
ownership interest until such time as they are realised by the joint venture
partnership on consumption or sale, unless they relate to an unrealised loss
that provides evidence of the impairment of an asset transferred.

(c) Segment reporting

A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different to
those of other business segments. A geographical segment is engaged in providing
products or services within a particular economic environment and is subject to
risks and returns that are different from those of segments operating in other
economic environments.

(d) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates ('the functional currency'). The consolidated financial
statements are presented in Australian dollars, which is Union Resources
Limited's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except
when deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges.

Translation differences on non-monetary items, such as equities held at fair
value through profit or loss, are reported as part of the fair value gain or
loss. Translation differences on non-monetary items, such as equities classified
as available-for-sale financial assets, are included in the fair value reserve
in equity.

Non-monetary assets and liabilities carried at fair value that are determined in
foreign currencies are translated at the rates prevailing at the date when the
fair value was determined.

1. Summary of significant accounting policies (continued)

(d) Foreign currency translation (continued)

(iii) 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:

   •  assets and liabilities for each balance sheet presented are translated 
      at the closing rate at the date of that balance sheet;
   •  income and expenses for each income statement are translated at average
      exchange rates (unless this 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 
      transactions); and
   •  all resulting exchange differences are recognised as a separate component
     of equity.

On consolidation, exchange differences arising from the translation of any net
investment in foreign entities, and of borrowings and other currency instruments
designated as hedges of such investments, are taken to shareholders' equity.
When a foreign operation is sold or borrowings repaid, a proportionate share of
such exchange differences is recognised in the income statement as part of the
gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and
translated at the closing rate.

(e) Revenue recognition

Revenue is measured at the fair value of the consideration received or
receivable. Amounts disclosed as revenue are net of returns, trade allowances
and duties and taxes paid.

(f) Income tax

The income tax expense or revenue for the period is the tax payable on the
current period's taxable income based on the national income tax rate for each
jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences between the tax bases of assets and
liabilities and their carrying amounts in the financial statements, and to
unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at
the tax rates expected to apply when the assets are recovered or liabilities are
settled, based on those tax rates which are enacted or substantively enacted for
each jurisdiction. The relevant tax rates are applied to the cumulative amounts
of deductible and taxable temporary differences to measure the deferred tax
asset or liability. An exception is made for certain temporary differences
arising from the initial recognition of an asset or a liability. No deferred tax
asset or liability is recognised in relation to these temporary differences if
they arose in a transaction, other than a business combination, that at the time
of the transaction did not affect either accounting profit or taxable profit or
loss.

Deferred tax assets are recognised for deductible temporary differences and
unused tax losses only if it is probable that future taxable amounts will be
available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences
between the carrying amount and tax bases of investments in controlled entities
where the parent entity is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse
in the foreseeable future.

Current and deferred tax balances attributable to amounts recognised directly in
equity are also recognised directly in equity.

Union Resources Limited and its wholly-owned Australian controlled entities have
implemented the tax consolidation legislation.

(g) Leases

Leases of property, plant and equipment where the Group has substantially all
the risks and rewards of ownership are classified as finance leases. Finance
leases are capitalised at the lease's inception at the lower of the fair value
of the leased property and the present value of the minimum lease payments. The
corresponding rental obligations, net of finance charges, are included in other
long term payables. Each lease payment is allocated between the liability and
finance charges so as to achieve a constant rate on the finance balance
outstanding. The interest element of the finance cost is charged to the income
statement over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period. The
property, plant and equipment acquired under finance leases is depreciated over
the shorter of the asset's useful life and the lease term.

Leases in which a significant portion of the risks and rewards of ownership are
retained by the lessor are classified as operating leases. Payments made under
operating leases (net of any incentives received from the lessor) are charged to
the income statement on a straight-line basis over the period of the lease.
Lease income from operating leases is recognised in income on a straight-line
basis over the lease term.

1. Summary of significant accounting policies (continued)

(h) Acquisitions of assets

The purchase method of accounting is used to account for all acquisitions of
assets (including business combinations) regardless of whether equity
instruments or other assets are acquired. Cost is measured as the fair value of
the assets given, shares issued or liabilities incurred or assumed at the date
of exchange plus costs directly attributable to the acquisition. Where equity
instruments are issued in an acquisition, the value of the instruments is their
published market price as at the date of exchange unless, in rare circumstances,
it can be demonstrated that the published price at the date of exchange is an
unreliable indicator of fair value and that other evidence and valuation methods
provide a more reliable measure of fair value. Transaction costs arising on the
issue of equity instruments are recognised directly in equity.

Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair values at the
acquisition date, irrespective of the extent of any minority interest. The
excess of the cost of acquisition over the fair value of the Group's share of
the identifiable net assets acquired is recorded as goodwill. If the cost of
acquisition is less than the fair value of the net assets of the subsidiary
acquired, the difference is recognised directly in the income statement, but
only after a reassessment of the identification and measurement of the net
assets acquired.

Where settlement of any part of cash consideration is deferred, the amounts
payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the entity's incremental borrowing rate,
being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.

(i) Impairment of assets

Assets that have an indefinite useful life are not subject to amortisation and
are tested annually for impairment. Assets that are subject to amortisation are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash generating units).

(j) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes
in value, and bank overdrafts. Bank overdrafts are shown within borrowings in
current liabilities on the balance sheet.

(k) Trade receivables

Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost, less provision for doubtful debts. Trade receivables
are due for settlement no more than 120 days from the date of recognition for
land development and resale debtors, and no more than 30 days for other
debtors.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which
are known to be uncollectible are written off. A provision for doubtful
receivables is established when there is objective evidence that the Group will
not be able to collect all amounts due according to the original terms of
receivables. The amount of the provision is the difference between the asset's
carrying amount and the present value of estimated future cash flows, discounted
at the effective interest rate. The amount of the provision is recognised in the
income statement.

(l) Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as held for sale and
stated at the lower of their carrying amount and fair value less costs to sell
if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use.

An impairment loss is recognised for any initial or subsequent write down of the
asset (or disposal group) to fair value less costs to sell. A gain is recognised
for any subsequent increases in fair value less costs to sell of an asset (or
disposal group), but not in excess of any cumulative impairment loss previously
recognised. A gain or loss not previously recognised by the date of the sale of
the non-current asset (or disposal group) is recognised at the date of
de-recognition.

Non-current assets (including those that are part of a disposal group) are not
depreciated or amortised while they are classified as held for sale. Interest
and other expenses attributable to the liabilities of a disposal group
classified as held for sale continue to be recognised.

Non-current assets classified as held for sale and the assets of a disposal
group classified as held for sale are presented separately from the other assets
in the balance sheet. The liabilities of a disposal group classified as held for
sale are presented separately from other liabilities in the balance sheet.

1. Summary of significant accounting policies (continued)

(m) Investments and other financial assets

From 1 July 2004 to 30 June 2005

The Group has taken the exemption available under AASB 1 to apply AASB 132 and
AASB 139 only from 1 July 2005. The Group has applied previous AGAAP to the
comparative information on financial instruments within the scope of AASB 132
and AASB 139. For further information on previous AGAAP refer to the annual
report for the year ended 30 June 2005.

Adjustments on transition date: 1 July 2005

The nature of the main adjustments to make this information comply with AASB 132
and AASB 139 are that, with the exception of held-to-maturity investments and
loans and receivables which are measured at amortised cost (refer below), fair
value is the measurement basis. Fair value is inclusive of transaction costs.
Changes in fair value are either taken to the income statement or an equity
reserve (refer below).

At the date of transition (1 July 2005) changes to carrying amounts are taken to
retained earnings or reserves.

From 1 July 2005

The Group classifies its investments in the following categories: financial
assets at fair value through profit or loss, loans and receivables,
held-to-maturity investments, and available-for-sale financial assets. The
classification depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial
recognition and re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and
those designated at fair value through profit or loss on initial recognition. A
financial asset is classified in this category if acquired principally for the
purpose of selling in the short term or if so designated by management. The
policy of management is to designate a financial asset if there exists the
possibility it will be sold in the short term and the asset is subject to
frequent changes in fair value. Derivatives are also categorised as held for
trading unless they are designated as hedges. Assets in this category are
classified as current assets if they are either held for trading or are expected
to be realised within 12 months of the balance sheet date.

(ii) Loans and receivables

Loans and receivables are non derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They arise when
the Group provides money, goods or services directly to a debtor with no
intention of selling the receivable. They are included in current assets, except
for those with maturities greater than 12 months after the balance sheet date
which are classified as non-current assets. Loans and receivables are included
in receivables in the balance sheet.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or
determinable payments and fixed maturities that the Group's management has the
positive intention and ability to hold to maturity.

(iv) Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity
securities, are non-derivatives that are either designated in this category or
not classified in any of the other categories. They are included in non-current
assets unless management intends to dispose of the investment within 12 months
of the balance sheet date.

Purchases and sales of investments are recognised on trade-date - the date on
which the Group commits to purchase or sell the asset. Investments are initially
recognised at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets are derecognised
when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Group has transferred substantially all the risks
and rewards of ownership.

Available-for-sale financial assets and financial assets at fair value through
profit and loss are subsequently carried at fair value. Loans and receivables
and held-to-maturity investments are carried at amortised cost using the
effective interest method. Realised and unrealised gains and losses arising from
changes in the fair value of the 'financial assets at fair value through profit
or loss' category are included in the income statement in the period in which
they arise. Unrealised gains and losses arising from changes in the fair value
of non monetary securities classified as available-for-sale are recognised in
equity in the available-for-sale investments revaluation reserve. When
securities classified as available-for-sale are sold or impaired, the
accumulated fair value adjustments are included in the income statement as gains
and losses from investment securities.

The fair values of quoted investments are based on current bid prices. If the
market for a financial asset is not active (and for unlisted securities), the
Group establishes fair value by using valuation techniques. These include
reference to the fair values of recent arm's length transactions, involving the
same instruments or other instruments that are substantially the same,
discounted cash flow analysis, and option pricing models refined to reflect the
issuer's specific circumstances.

1. Summary of significant accounting policies (continued)

(m) Investments and other financial assets (continued)

(iv) Available-for-sale financial assets (continued)

The Group assesses at each balance date whether there is objective evidence that
a financial asset or group of financial assets is impaired. In the case of
equity securities classified as available for sale, a significant or prolonged
decline in the fair value of a security below its cost is considered in
determining whether the security is impaired. If any such evidence exists for
available-for-sale financial assets, the cumulative loss - measured as the
difference between the acquisition cost and the current fair value, less any
impairment loss on that financial asset previously recognised in profit and loss
- is removed from equity and recognised in the income statement. Impairment
losses recognised in the income statement on equity instruments are not reversed
through the income statement.

(n) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated
for recognition and measurement or for disclosure purposes.

The fair value of financial instruments traded in active markets (such as
publicly traded derivatives, and trading and available-for-sale securities) is
based on quoted market prices at the balance sheet date. The quoted market price
used for financial assets held by the Group is the current bid price; the
appropriate quoted market price for financial liabilities is the current ask
price.

The fair value of financial instruments that are not traded in an active market
(for example, over-the-counter derivatives) is determined using valuation
techniques. The Group uses a variety of methods and makes assumptions that are
based on market conditions existing at each balance date. Quoted market prices
or dealer quotes for similar instruments are used for long-term debt instruments
held. Other techniques, such as estimated discounted cash flows, are used to
determine fair value for the remaining financial instruments. The fair value of
interest-rate swaps is calculated as the present value of the estimated future
cash flows. The fair value of forward exchange contracts is determined using
forward exchange market rates at the balance sheet date.

The nominal value less estimated credit adjustments of trade receivables and
payables are assumed to approximate their fair values. The fair value of
financial liabilities for disclosure purposes is estimated by discounting the
future contractual cash flows at the current market interest rate that is
available to the Group for similar financial instruments.

(o) Property, plant and equipment

Land and buildings are shown at fair value, based on periodic, but at least
triennial, valuations by external independent valuers, less subsequent
depreciation for buildings. Any accumulated depreciation at the date of
revaluation is eliminated against the gross carrying amount of the asset and the
net amount is restated to the revalued amount of the asset. All other property,
plant and equipment is stated at historical cost less depreciation. Historical
cost includes expenditure that is directly attributable to the acquisition of
the items. Cost may also include transfers from equity of any gains/losses on
qualifying cash flow hedges of foreign currency purchases of property, plant and
equipment.

Subsequent costs are included in the asset's carrying amount or recognised as a
separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to
the income statement during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of land and buildings
are credited to other reserves in shareholders' equity. To the extent that the
increase reverses a decrease previously recognised in profit or loss, the
increase is first recognised in profit and loss. Decreases that reverse previous
increases of the same asset are first charged against revaluation reserves
directly in equity to the extent of the remaining reserve attributable to the
asset; all other decreases are charged to the income statement.

Land is not depreciated. Depreciation on other assets is calculated using the
straight line method to allocate their cost or revalued amounts, net of their
residual values, over their estimated useful lives.

The assets' residual values and useful lives are reviewed, and adjusted if
appropriate, at each balance sheet date.

An asset's carrying amount is written down immediately to its recoverable amount
if the asset's carrying amount is greater than its estimated recoverable amount
(note 1(i)).

Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in the income statement. When revalued assets are
sold, it is Group policy to transfer the amounts included in other reserves in
respect of those assets to retained earnings.

(p) Trade and other payables

These amounts represent liabilities for goods and services provided to the Group
prior to the end of financial year which are unpaid. The amounts are unsecured
and are usually paid within 30 days of recognition.

1. Summary of significant accounting policies (continued)

(q) Provisions

Provisions for legal claims and service warranties are recognised when: the
Group has a present legal or constructive obligation as a result of past events;
it is more likely than not that an outflow of resources will be required to
settle the obligation; and the amount has been reliably estimated. Provisions
are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow
will be required in settlement is determined by considering the class of
obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations
may be small.

(r) Employee benefits

(i) Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual
leave and accumulating sick leave expected to be settled within 12 months of the
reporting date are recognised in other payables in respect of employees'
services up to the reporting date and are measured at the amounts expected to be
paid when the liabilities are settled. Liabilities for non-accumulating sick
leave are recognised when the leave is taken and measured at the rates paid or
payable.

(ii) Long service leave

The liability for long service leave is recognised in the provision for employee
benefits and measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using
the projected unit credit method. Consideration is given to expected future wage
and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using market yields at the reporting
date on national government bonds with terms to maturity and currency that
match, as closely as possible, the estimated future cash outflows.

(iii) Share-based payments

Share-based compensation benefits, where applicable, are provided to employees
via the Union Resources Limited Option Plan and an employee share scheme.

Shares options granted after 7 November 2002 and vested after 1 January 2005
The fair value of options granted under the Union Resources Limited Employee
Option Plan is recognised as an employee benefit expense with a corresponding
increase in equity. The fair value is measured at grant date and recognised over
the period during which the employees become unconditionally entitled to the
options.

The fair value at grant date is independently determined using a Black-Scholes
option pricing model that takes into account the exercise price, the term of the
option, the vesting and performance criteria, the impact of dilution, the
non-tradeable nature of the option, the share price at grant date and expected
price volatility of the underlying share, the expected dividend yield and the
risk-free interest rate for the term of the option.

The fair value of the options granted excludes the impact of any non-market
vesting conditions (for example, profitability and sales growth targets).
Non-market vesting conditions are included in assumptions about the number of
options that are expected to become exercisable. At each balance sheet date, the
entity revises its estimate of the number of options that are expected to become
exercisable. The employee benefit expense recognised each period takes into
account the most recent estimate.

Upon the exercise of options, the balance of the share-based payments reserve
relating to those options is transferred to share capital.

The market value of shares issued to employees for no cash consideration under
the employee share scheme is recognised as an employee benefits expense with a
corresponding increase in equity when the employees become entitled to the
shares.

(s) Contributed equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds. Incremental
costs directly attributable to the issue of new shares or options, or for the
acquisition of a business, are included in the cost of the acquisition as part
of the purchase consideration.

1. Summary of significant accounting policies (continued)

(t) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the company, excluding any costs of servicing equity other
than ordinary shares, by the weighted average number of ordinary shares
outstanding during the half-year, adjusted for bonus elements in ordinary shares
issued during the half-year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of
basic earnings per share to take into account the after income tax effect of
interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.

(u) Financial instrument transaction costs

The Group has taken the exemption available under AASB 1 to apply AASB 132 and
AASB 139 from 1 July 2005. The Group has applied previous Australian GAAP
(AGAAP) in the comparative information on financial instruments within the scope
of AASB 132 and AASB 139. Under previous AGAAP transaction costs were excluded
from the amounts disclosed in the financial statements. Under AIFRS such costs
are included in the carrying amounts. At the date of transition to AASB 132 and
AASB 139 the adjustment to carrying amounts for the Group was immaterial.

(v) Rounding of amounts

The company is of a kind referred to in Class Order 98/0100, issued by the
Australian Securities and Investments Commission, relating to the 'rounding off'
of amounts in the financial report. Amounts in the financial report have been
rounded off in accordance with that Class Order to the nearest dollar.

2. Segment information

Segment              Mining & Exploration      Telecommunications       Corporate               Consolidated
Information -
Primary segment
Business
Segments                 2005         2004        2005         2004       2005         2004   DEC 2005     DEC 2004
----------------------------------------------------------------------------------------------------------------------

Segment
Revenue                     -       12,623           -       37,787    110,462    1,035,633      110,462    1,086,043
Segment Result              -     (136,525)          -   (2,308,050)  (765,087)     693,666     (765,087)  (1,750,909)
                                                                                                 =========   ==========
Consolidated
entity profit
from ordinary
activities
before income
tax expense                                                                                     (765,087)  (1,750,909)
                                                                                                 =========   ==========

                     Mining & Exploration      Telecommunications       Corporate               Consolidated
                         2005         2005        2005         2005        2005        2005   DEC 2005     JUNE 2005
----------------------------------------------------------------------------------------------------------------------
Assets
Segment Assets     16,855,001   15,477,672   5,700,000    5,700,000   4,891,670   2,288,838   27,446,671   23,466,510
                                                                                                 =========   ==========
Liabilities
Segment
Liabilities           203,258      849,823     315,025      302,035   1,256,972     331,784    1,775,255    1,483,642
                                                                                                 =========   ==========
Other segment
information
Acquisition of
property,
plant and
equipment,
Intangible
assets and
other
non-current
assets              5,922,085    5,886,603           -            -      29,671      25,233    5,951,756    5,911,836
                                                                                                 =========   ==========
Depreciation
and
Diminuation in
asset values                -      184,048           -            -   3,010,755      41,924    3,010,755      225,972
                                                                                                 =========   ==========


For the half-year ended 31 December 2005     Notes       DECEMBER     DECEMBER 
                                                           2005          2004   
3. Loss for the half-year                                    $             $

Profit for the half-year includes the 
following revenues and expenses:
Revenues from continuing operations
Foreign currency gain                                      4,100        37,020
Interest - unrelated parties                              96,354        55,473
Other income                                              10,000             -
                                                        ---------- -----------
Total revenue from continuing operations                 110,454        92,493
Revenue from non-continuing operations
Reverse diminution of Gold Aura shares                 1,612,548             -
Debt forgiveness income                                  179,966       993,550
                                                        ----------   -----------
Total revenue from non-continuing operations           1,792,514       993,550
Expenses from continuing operations
Audit fees                                                28,360        25,000
Accounting fees                                           37,775        15,846
Borrowing costs                                                -         2,087
Employee benefits                                        110,176        70,394
Consulting fees - Murdoch
Geosciences                                               63,250        51,750
Consulting fees - other                                   59,540        84,542
Consulting fees AIM                                       71,580             -
Directors' fees                                           46,675        42,500
Directors' expenses                                      (10,336)        3,578
Depreciation & Amortisation                               11,602        35,126
Foreign currency loss                                     13,050             -
Government charges                                           926         9,000
Insurance                                                 40,962        42,039
Occupancy expenses                                        20,307        21,777
Share registry /meeting costs/listing fees               111,008        92,955
Telephone                                                 23,747        13,196
Travel                                                    46,236        20,864
Carrying value of non-current assets sold                      -         2,086
                                                        ----------   -----------
General administration expenses                           65,315        41,339
                                                        ----------   -----------
Total expenses from continuing activities                740,173       574,079
                                                        ----------   -----------

Expenses from non-continuing operations
Diminution of asset values                                     -     2,476,733
Debt forgiveness                                         179,966             -
Write off investments                                    135,368             -
Impairment of shares in Gold Aura Limited                982,027             -
Loss on disposal of Gold Aura Limited shares           2,017,126             -
                                                        ---------- -----------
Total expenses from non-continuing activities          3,314,487     2,476,733
                                                        ----------  -----------

4. Dividends paid or provided for on ordinary shares
  
(a) Dividends proposed and recognised as a liability

Franked dividends

(b) Specific Items
  
Franked dividends

5. Contingent assets and liabilities

(a) Contingent liabilities

The parent entity and Group had contingent liabilities at 31 December 2005 in
respect of:

Acquisition of interest

Under an agreement entered into with Itok GmbH, a joint participant in the
Mehdiabad Zinc Company (MZC) and the Mehdiabad Zinc Project (MZP), Union has the
right to acquire Itok's GmbH's interests in MZC and MZP. In any exercise of this
right, Union would be liable to pay US$500,000 in cash and issue 110 million new
ordinary shares immediately, and issue a further 190 million new ordinary shares
subject to certain milestones..

Guarantees

The parent entity has provided guarantees in respect of restoration work on
Queensland mining tenements now controlled by Gold Aura Limited to the Queensland
Department of Resources and Mines. At 31 December this amount was $65,260 (2004:
$205,760).

These guarantees may give rise to liabilities in the parent entity if Gold Aura
Limited does meet its obligations under the terms of the liabilities subject to
the guarantees.

No material losses are anticipated in respect of any of the above contingent
liabilities.

(b) Contingent assets

For some time, the Company has been endeavouring to finalise the sale of its 22%
indirect interest in Eastern Telecommunications Philippines Inc. (ETPI), held by
secured converting notes in Australian Gigahertz Networks International ('AGNI')
which, in turn holds a 40% interest in ETPI through a wholly owned Filipino
subsidiary. The cash consideration is estimated to be up to $5,700,000 after legal
fees and transaction costs.

While the amount is dependent on the settlement, the achievement of the
realisation is considered probable. The contingent asset has been recognised in
'Assets of disposal group classified as held for sale' in the Group balance
sheet.

6. Equity securities issued

                            DECEMBER     DECEMBER      DECEMBER     DECEMBER
                              2005         2004          2005         2004
                             Shares       Shares          $            $
Issues of ordinary shares
during the half-year

(a) Ordinary shares 
fully paid                 759,594,266   375,733,352   87,797,075   76,761,782
(b) Movement in shares 
on issue
On issue at the beginning
of the half-year           500,153,555   306,641,909   80,419,341   75,546,218
Placement of
shares at 3.00 cents       158,000,000             -    4,740,000            -
Prospectus
shares at 3.00 cents       101,430,711             -    3,042,923            -
Placement of
shares at 3.65 cents                 -    55,593,828            -    2,029,175
Directors in lieu of 
fees at 3.65 cents                   -       164,384            -        6,000
Directors in
lieu of fees
at 3.6 cents
(ii)                                 -       500,000            -       18,000
Share purchase
plan at 3.65 cents                   -    12,833,231            -      468,413
In-specie capital
reduction of
6,256,382 Jab
Technologies Limited
ordinary shares to
Union Resources Limited
shareholders                         -             -            -   (1,251,276)
Options converted to
shares at 10.00 cents           10,000             -        1,000            -
                           ------------- ------------- ------------ ------------
Issue costs                          -             -     (165,722)     (84,748)
                           ------------- ------------- ------------ ------------
AIM IPO listing costs                -             -     (240,467)           -
                           ------------- ------------- ------------ ------------
On issue at
the end of the half-year  759,594,266   375,733,352   87,797,075   76,731,782
                            ------------ ------------- ------------ ------------

Directors' Fees of $6,000 were paid by issue of 164,384 shares of 3.65 cents per
share in lieu of cash in the half-year to 31 December 2004.

Directors' Fees of $18,000 were paid by issue of 500,000 shares of 3.6 cents per
share in lieu of cash in the half-year to 31 December 2004.

7. Discontinued operation

(a) Description

On 13 September 2005 the Company completed an in specie share distribution of
10,143,271 Gold Aura Limited shares to eligible Union Resources shareholders on the
basis of one (1) ordinary Gold Aura share for every fifty (50) Union Resources
Limited shares held. The shares were distributed equally to eligible Union Resources
shareholders on a pro rata basis based on the number of shares held on the record
date on 7 September 2005. As the result of the in specie share distribution the
Company currently holds 347,847 shares in Gold Aura Limited and Gold Aura Limited
and its subsidiary are no longer part of the Group.

(b) Financial performance and cash flow information
                                                          DECEMBER      DECEMBER 
                                                             2005$        2004 $

Revenue                                                       862          1,390
Expenses                                                  (26,656)      (353,541)
                                                     -------------- --------------
Loss before income tax                                    (25,794)      (350,151)

Income tax expense                                              -              -
                                                     -------------- --------------
Loss after income tax of discontinued
operations                                                (25,794)      (350,151)
                                                     -------------- --------------

Loss on sale of the division before income tax         (2,017,126)             -
Income tax expense                                              -              -
                                                     -------------- --------------
Loss on sale of the division after income tax          (2,017,126)             -
                                                     -------------- --------------

Loss from discontinued operations                      (2,042,920)      (350,151)
                                                     -------------- --------------
                                                 
Net cash outflow from ordinary activities                 (82,237)      (173,918)
Net cash outflow from investing activities               (124,946)      (298,779)
Net cash inflow from financing activities                 599,709        430,464
                                                      ------------- --------------
Net increase in cash generated by the division            392,256        (42,233)
                                                      ------------- --------------

(c) Carrying amounts of assets and liabilities

The carrying amounts of assets and liabilities as at
13 September 2005 and 31 December 2004
Cash assets                                               557,617        156,774
Property, plant and equipment                              51,165         55,952
Exploration and evaluation                              4,180,382      4,138,178
Trade receivables                                          30,008          9,718
Other Assets                                              178,126        181,493
                                                        ----------- --------------
Total assets                                            4,997,298      4,542,115
                                                        ----------- --------------

Trade creditors                                           (75,264)      (123,167)
Provision for employee benefits                           (53,118)       (31,311)
Accruals                                                  (23,066)       (53,248)
                                                        ----------- --------------
Total liabilities                                        (151,448)      (207,726)
                                                        ----------- --------------

Net assets                                              4,845,850      4,334,389
                                                        -----------    -----------

7. Discontinued operation (continued)               DECEMBER 2005   DECEMBER 2004
                                                           $                $
(d) Details of the sale of the division
Consideration received or receivable:
In specie distribution to URL shareholders               (912,849)             -
                                                        -----------    -----------
Total disposal consideration                             (912,849)             -

Carrying amount of net assets sold                      2,929,974              -
                                                        -----------    -----------
Loss on sale before income tax                         (2,017,125)             -

Income tax expense                                              -              -
                                                        -----------    -----------
Loss on sale after income tax                          (2,017,125)             -
                                                        -----------    -----------

8. Events occurring after balance sheet date

ETPI

The settlement of the Company's indirect interest in Eastern Telecommunications
of the Philippines Inc. has taken place. After all expenses, the sum of
US$3,980,114.24 was received. The Company may become entitled to a further
payment of up to US$274,000 once all taxation clearances have issued.

Share Placement

The Company's Directors have approved the issue of up to 17,577,461 ordinary
shares in the Company at 6.3 cents per share to various professional and
sophisticated investors, pursuant to approval received from the Company's
members at the general meeting held on Monday 13 March 2006. It is intended that
the funds raised will be used for expenses associated with the Mehdiabad Zinc
Project, and for working capital.

9. Explanation of transition to Australian equivalents to IFRSs

(1) Reconciliation of equity reported under previous Australian General Accepted
Accounting Principles (AGAAP) to equity under Australian equivalents to IFRSs
(AIFRS)

(a) At the end of the last reporting period under previous AGAAP: 1 July 2004

                                 Notes      Previous      Effect of        AIFRS
                                             AGAAP       transition
                                                           to AIFRS     
                                                $             $               $
------------------------------------------------------------------------------------                                    
 
ASSETS
Current assets
Cash and cash equivalents                   1,584,875       (7,708)      1,577,167
Receivables                                   153,101         (761)        152,340
Non-current assets
classified as held for sale                         -    7,195,079       7,195,079
                                            ----------    ----------     -----------
Total current assets                        1,737,976    7,186,610       8,924,586
                                             ----------   ----------     -----------
Non-current assets
Receivables                                   211,387            -         211,387
Investments accounted for
using the equity method                             -    6,871,263       6,871,263
Other financial assets                      8,044,596   (8,123,899)        (79,303)
Property, plant and equipment                  55,963       (2,311)         53,653
Evaluation and exploration
expenditure                                 9,403,745   (7,120,885)      2,282,860
                                             ----------   ----------     -----------
Total non-current assets                   17,715,691   (8,375,382)      9,339,859
                                             ----------   ----------     -----------
Total assets                               19,453,667   (1,189,222)     18,264,445
                                             ----------   ----------     -----------
LIABILITIES
Current liabilities
Payables                                      445,081            -         445,081
Provisions                                     41,872            -          41,872
Liabilities directly
associated with assets
classified as held for sale                         -      332,810         332,810
                                            ----------    ----------     -----------
Total current liabilities                     486,953      332,810         819,763
                                             ----------   ----------     -----------
Non-current liabilities
Payables                                      332,810     (332,810)              -
Provisions                                     54,636      195,000         249,636
                                             ----------   ----------     -----------
Total non-current liabilities                 387,446     (137,810)        249,636
                                             ----------   ----------     -----------
Total liabilities                             874,399      195,000       1,069,399
                                             ----------   ----------     -----------
Net assets                                 18,579,268   (1,384,222)     17,195,046
                                             ----------   ----------     -----------
EQUITY
Contributed entity                         75,546,218            -      75,546,218
Reserves                                    1,317,085            -       1,317,085
Retained profits/losses                   (59,593,395)  (1,384,222)    (60,977,617)
                                             ----------   ----------     -----------
Parent entity interest                     17,269,908   (1,384,222)     15,885,686
Minority interest                           1,309,360            -       1,309,360
                                             ----------   ----------     -----------
Total equity                               18,579,268   (1,384,222)     17,195,046
                                             ----------   ----------     -----------

9. Explanation of transition to Australian equivalents to IFRSs (continued)

(1) Reconciliation of equity reported under previous Australian General Accepted
Accounting Principles (AGAAP) to equity under Australian equivalents to IFRSs
(AIFRS)

(b) At the end of the last reporting period under previous AGAAP: 31 December
2004
                                 Notes       Previous      Effect of        AIFRS
                                              AGAAP       transition
                                                           to AIFRS     
                                                 $             $              $
------------------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents                   2,246,273      (13,519)      2,232,754
Receivables                                   222,759            -         222,759
Non-current assets
classified as held for sale                         -    4,600,054       4,600,054
                                            ----------    ----------     -----------
Total current assets                        2,469,032    4,586,535       7,055,567
                                             ----------   ----------     -----------
Non-current assets
Receivables                                   210,859            -         210,859
Investments accounted for
using the equity method                             -    8,349,001       8,349,001
Other financial assets                      5,951,329   (5,823,898)        127,431
Property, plant and equipment                  42,753         (267)         42,486
Evaluation and exploration
expenditure                                11,011,103   (8,595,617)      2,415,486
                                             ----------   ----------     -----------
Total non-current assets                   17,216,044   (6,070,781)     11,145,263
                                             ----------   ----------     -----------
Total assets                               19,685,076   (1,484,246)     18,200,830
                                             ----------   ----------     -----------
LIABILITIES
Current liabilities
Payables                                      715,807            -         715,807
Provisions                                     41,194            -          41,194
                                             ----------   ----------     -----------
Total current liabilities                     757,001            -         757,001
                                             ----------   ----------     -----------
Non-current liabilities
Payables                                      295,024     (295,024)              -
Provisions                                     50,269      195,000         245,269
                                             ----------   ----------     -----------
Total non-current liabilities                 345,293     (100,024)        245,269
                                             ----------   ----------     -----------
Total liabilities                           1,102,294     (100,024)      1,002,270
                                             ----------   ----------     -----------
Net assets                                 18,582,782   (1,384,222)     17,198,560
                                             ----------   ----------     -----------
EQUITY
Contributed entity                         76,731,782            -               -
Reserves                                    1,218,959            -               -
Retained profits/losses                   (60,871,824)  (1,384,222)    (62,256,046)
                                             ----------   ----------     -----------
Parent entity interest                     17,078,917   (1,384,222)     15,694,695
Minority interest                           1,503,865            -       1,503,865
                                             ----------   ----------     -----------
Total equity                               18,582,782   (1,384,222)     17,198,560
                                             ----------   ----------     -----------

9. Explanation of transition to Australian equivalents to IFRSs (continued)

(1) Reconciliation of equity reported under previous Australian General Accepted
Accounting Principles (AGAAP) to equity under Australian equivalents to IFRSs
(AIFRS)

(c) At the end of the last reporting period under previous AGAAP: 30 June 2005

                                 Notes     Previous      Effect of         AIFRS
                                             AGAAP     transition to
                                                            AIFRS         
                                               $              $               $
-----------------------------------------------------------------------------------                                     
ASSETS
Current assets
Cash and cash equivalents                  1,896,566       (13,411)      1,883,155
Receivables                                  186,992             -         186,992
Non-current assets
classified as held for sale                        -     4,888,067       4,888,067
                                           ----------     ----------     -----------
Total current assets                       2,083,558     4,874,656       6,958,214
                                            ----------    ----------     -----------
Non-current assets
Receivables                                  211,026             -         211,026
Investments
accounted for using the
equity method                                      -    12,214,341      12,214,341
Other financial assets                     6,030,563    (5,823,898)        206,665
Property, plant and equipment                 30,188        (6,501)         23,687
Evaluation and exploration
expenditure                               15,111,175   (12,499,429)      2,611,746
                                            ----------    ----------     -----------
Total non-current assets                  21,382,952    (6,115,487)     15,267,465
                                            ----------    ----------     -----------
Total assets                              23,466,510    (1,240,831)     22,225,679
                                            ----------    ----------     -----------
LIABILITIES
Current liabilities
Payables                                   1,096,928             -       1,096,928
Provisions                                    41,364             -          41,364
Liabilities directly
associated with assets
classified as held for sale                        -       295,024         295,024
                                           ----------     ----------     -----------
Total current liabilities                  1,138,292       295,024       1,433,316
                                            ----------    ----------     -----------
Non-current liabilities
Payables                                     302,035      (302,035)              -
Provisions                                    43,315       195,000         238,315
                                            ----------    ----------     -----------
Total non-current liabilities                345,350      (107,035)        238,315
                                            ----------    ----------     -----------
Total liabilities                          1,483,642       187,989       1,671,631
                                            ----------    ----------     -----------
Net assets                                21,982,868    (1,428,820)     20,554,048
                                            ----------    ----------     -----------
EQUITY
Contributed entity                        80,419,340             -      80,419,340
Reserves                                   1,191,429             -       1,191,429
Retained profits/losses                  (61,202,493)   (1,428,820)    (62,631,313)
                                            ----------    ----------     -----------
Parent entity interest                    20,408,276    (1,428,820)     18,979,456
Minority interest                          1,574,592             -       1,574,592
                                            ----------    ----------     -----------
Total equity                              21,982,868    (1,428,820)     20,554,048
                                            ----------    ----------     -----------

9. Explanation of transition to Australian equivalents to IFRSs (continued)  

(2) Reconciliation of profit under previous AGAAP to profit under Australian
equivalents to IFRSs

(a) Reconciliation of profit for the half-year ended: 31 December 2004

                                  Notes      Previous     Effect of          AIFRS
                                               AGAAP      transition
                                                           to AIFRS     
                                                 $            $                $
-------------------------------------------------------------------------------------
Revenue

Sales                                          37,020          -            37,020
Interest received                              55,473          -            55,473
Debt forgiveness Jab Technologies             993,550          -           993,550
Employee benefits expense                     (70,394)         -           (70,394)
Depreciation and amortisation
expense                                       (35,126)         -           (35,126)
Finance costs - net                            (2,087)         -            (2,087)
Other expenses                             (2,943,205)         -        (2,943,205)
                                             ---------- ----------       -----------
Loss before income tax                     (1,964,769)         -        (1,964,769)

Income tax expense                                  -          -                 -
                                             ---------- ----------       -----------
Loss from continuing operations            (2,031,159)         -        (1,964,769)
                                             ---------- ----------       -----------
Loss for the half-year                     (1,964,769)         -        (1,964,769)

Loss attributable
to minority interest                          213,860          -           213,860
                                             ---------- ----------       -----------
Loss attributable
to members of Union
Resources Limited                          (1,750,909)         -        (1,750,909)
                                             ---------- ----------       -----------

9. Explanation of transition to Australian equivalents to IFRSs (continued)

(2) Reconciliation of profit under previous AGAAP to profit under Australian
equivalents to IFRSs

(b) Reconciliation of profit for the half-year ended: 30 June 2005

                                  Notes       Previous     Effect of         AIFRS
                                                AGAAP     transition
                                                           to AIFRS     
                                                  $            $               $
------------------------------------------------------------------------------------
Revenue

Sales Interest received                        98,520            -          98,520
Gain on disposal of Jab
Technologies                                1,464,607            -       1,464,607
Other income                                   48,092            -          48,092
Employee benefits expense                    (131,420)           -        (131,420)
Depreciation and amortisation
expense                                       (54,762)           -         (54,762)
Finance costs - net                            (3,672)           -          (3,672)
Other expenses                             (3,452,524)           -      (3,452,524)
                                             ----------   ----------     -----------
Loss before income tax                     (2,031,159)           -      (2,031,159)

Income tax expense                                  -            -               -
                                             ----------   ----------     -----------
Loss from continuing operations            (2,031,159)           -      (2,031,159)
                                             ----------   ----------     -----------
Loss for the half-year                     (2,031,159)           -      (2,031,159)

Loss attributable
to minority interest                          333,405            -         333,405
                                             ----------   ----------     -----------
Loss attributable
to members of Union
Resources Limited                          (1,697,754)           -      (1,697,754)
                                             ----------   ----------     -----------

(3) Reconciliation of cash flow statement for the year ended 30 June 2005

The adoption of AIFRSs has not resulted in any material adjustments to the cash
flow statement.

(4) Notes to the reconciliations

Under AASB 139 'Financial Instruments', the consolidated entity would recognise
its investment in Eastern Telecommunications of Philippines Inc ('ETPI') as a
current financial asset available for sale, as it is expected to be sold with
the next twelve months. The Company is required to recognise an impairment loss
as its investment in ETPI is measured at the lower of its carrying value and the
present value of estimated future cash flows discounted at the current market
rate of return. Furthermore, the consolidated entity is required to offset the
non-current liability relating to the anticipated expected selling costs for
ETPI against the carrying value of its investment in ETPI.

Under AASB 139 'Financial Instruments: Recognition and Measurement', shares held
in Jab Technologies are required to be measured at the lesser of cost and fair
value, which is the current quoted market bid price for the asset. This change
in policy will result in an impairment loss against the other financial assets.

Under AASB 136 'Impairment of Assets', the recoverable amount of an asset is
determined as the higher of its net selling price and value in use which is
determined using discounted cash flows. Impairment is assessed at an asset level
or where an asset does not generate separately identifiable cash flows
impairment is assessed on a cash generating unit basis, being the smallest group
of assets that generates independent cash flows. Under AGAAP, future cash flows
are not discounted and assets are grouped together under an area of interest
concept, which include all
of the exploration and evaluation assets within a geological area.

9. Explanation of transition to Australian equivalents to IFRSs (continued)

Under AASB 112 'Income Taxes', the consolidated entity will be required to use a
balance sheet liability method, rather than the income statement method, which
recognises deferred tax balances where there is a difference between the
carrying value of an asset or liability and its tax base. A deferred tax asset
is recognised to the extent that it is probable that there will be a taxable
profit against which a deductible temporary difference can be used.

Even though the test for the adoption of deferred tax assets and tax affect
accounting has moved from virtually certain to probable, the Company maintains
it is not probable that future tax profit will be available to offset losses and
the existence of unused tax and recent tax losses is evidence that future
taxable profits are not available for recognition of deferred tax losses.

Under AASB 128 'Investments in Associates' and AASB 131 'Investments in Joint
Ventures', the consolidated entity is required to consider whether it should
record the assets and liabilities in the Mehdiabad Zinc Project as an investment
in an associate under equity accounting. Under AGAAP the investment in the
Mehdiabad Zinc Company has been recorded at cost and recorded in the
consolidated assets and liabilities.

ASSB 131 indicates that accounting standard for joint ventures will not apply
until all the joint venture partners own the assets of the joint venture. AASB
128 indicates that accounting standards for investments in associates will not
apply unless there is the capacity to exert significant influence.

Neither AASB 131 nor AASB 128 has been applied as the assets of the Mehdiabad
Zinc Project are not owned by all the parties and the consolidated entity cannot
exert significant influence over the Project.

The investment in Mehdiabad has been assessed for impairment and there is not
expected to be an initial adjustment for the carrying value.



In accordance with a resolution of the directors of Union Resources Limited:

1. The directors declare that the financial statements and notes set out on
pages 12 to 31 in accordance with the Corporations Act 2001:

(a) Comply with Accounting Standard AASB 134 'Interim Financial Reporting'
and the Corporations Regulations 2001; and

(b) Give a true and fair view of the financial position of the consolidated
entity as at 31 December 2005 and of its performance as represented by the
results of its operations and its cash flows, for the half-year ended on that
date.

2. In the directors' opinion there are reasonable grounds to believe that
Union Resources Limited will be able to pay its debts as and when they become
due and payable.

On behalf of the Board

R Murdoch
Director
Brisbane, 16 March 2006




                      This information is provided by RNS
            The company news service from the London Stock Exchange
                DLIR