financial report - heron resources limited€¦ · borden putnam (appointed 12 december 2014) dr...

ACN 068 263 098

FINANCIAL REPORT

For the half year ended 31 December 2014

ABN 30 068 263 098

DIRECTORSChairman (Non-Executive) Craig Readhead BJuris LL.B. FAICD Managing Director (Executive)Wayne Taylor BE (Min.), MBA, MAusIMM Director (Executive)Ian Buchhorn BSc (Hons), DiplGeosci (Min Econ), MAusIMMDirector (Non-Executive)Stephen Dennis BCom, LL.B., GDipAppFin (Finsia), CFTP Director (Non-Executive) Borden Putnam III MSc, RPG

JOINT COMPANY SECRETARIESSimon Smith CA

REGISTERED AND PERTH MANAGEMENT OFFICELevel 1, 37 Ord Street West Perth 6005 Western AustraliaTelephone: +61 8 9215 4444Facsimile: +61 8 9215 4490Sydney Study OfficeSuite 702, 191 Clarence StreetSydney 2000 New South Wales Telephone: +61 2 9299 7800 Facsimile: +61 2 9299 7500 Woodlawn Site OfficeCollector Road, Tarago 2580 New South Wales

Email: [email protected]: www.heronresources.com.au

AUDITORButler Settineri (Audit) Pty LtdUnit 16, 1st Floor, 100 Railway RoadSubiaco 6008 Western Australia

BANKERSWestpac Bank230-236 Hannan StreetKalgoorlie 6430 Western Australia

SHARE REGISTRYSecurity Transfer Registrars Pty Ltd770 Canning HighwayApplecross 6153 Western AustraliaTelephone: +61 8 9315 2333Facsimile: +61 8 9315 2233Email: [email protected] Equity Transfer Services Inc.200 University Avenue, Suite 400Toronto, Ontario M5H 4H1Tel: (416) 361-0152Email: [email protected]

SOLICITORS TO THE COMPANYAllion Legal Pty Ltd50 Kings Park RoadWest Perth 6005 Western AustraliaResources Legal Pty Ltd1A Rosemead RdHornsby 2077 New South WalesPeterson & Company, LLP390 Bay Street, Suite 806Toronto, Ontario M5H 2Y2

STOCK EXCHANGEAustralian Securities Exchange Limited2 The EsplanadePerth 6000 Western Australia

ASX CODE HRR

Toronto Stock ExchangeTMX Group LtdThe Exchange Tower130 King Street WestToronto, Ontario M5X 1J2

TSX CODE HER

SEAT ABBREVIATIONHeron

HOME BRANCHPerth

INDUSTRY CLASSIFICATIONGICS classification code is 15104020Diversified Metals and Mining

ISIN AU000 000 HRR6

Corporate Directory

Cover: Aerial photograph of the Woodlawn mine site.

Heron Resources LimitedABN 30 068 263 098

FINANCIAL REPORTFor the half year ended 31 December 2014

CONTENTSDirectors’ Report....................................................................................................................2Auditor’s Independence Declaration ...................................................................................13Consolidated Statement of Profit and Loss and Other Comprehensive Income ................14Consolidated Statement of Financial Position ....................................................................15Consolidated Statement of Changes in Equity ...................................................................16Consolidated Statement of Cash Flows ..............................................................................17Notes to the Consolidated Financial Statements ...............................................................18Directors’ Declaration..........................................................................................................28Independent Auditor’s Review Report to the members of Heron Resources Limited........29Top 20 Shareholders and Option holders ............................................................................31Appendix 1 –Unaudited Financial Statements for the 3 and 6 month period ended 31 December 2014 ........................................................................................32

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 2014 and any public

announcements made by Heron Resources Limited during the interim reporting

period in accordance with the continuous disclosure requirements of the

Corporations Act 2001.

Financial Report - For the half year ended 31 December 2014 - Page 1

DIRECTORS REPORT

The Directors submit their report for the consolidated entity consisting of Heron Resources Limited (Heron or the Company) and the entitiesHeron controlled at the Half Year ended 31 December 2014.

Board

The names of the Directors of the Company during the period and at 31 December 2014 were:

Craig Leslie Readhead

Ian James Buchhorn

Stephen Bruce Dennis

Wayne Taylor (appointed 11 August 2014)

Borden Putnam (appointed 12 December 2014)

Dr James Gill (appointed 11 August 2014, resigned 19 August 2014)

There were 7 meetings of directors held during the period with all directors appointed attending each of the meetings

Introduction

Heron Resources (“Heron” or the “Company”) is pleased to provide the report for the Half Year December 2014. This represents the first halfyear period since the merger of Heron and TriAusMin Ltd in August 2014. During this reporting period the Company has principally beenfocused on advancing the high-grade Woodlawn Zinc-Copper Project through the continuation of the drilling program that was commenced inSeptember 2014 and advancing the Preliminary Economic Assessment (“PEA”) for the underground project. Excellent drilling results have beenreturned with further results pending and the early work on the PEA has been very supportive for the re-establishment of mining operations.

WOODLAWN ZINC-COPPER PROJECTHeron holds a direct 100% ownership of the mineral rights at the Woodlawn Mine site situated 40km south of Goulburn and 200km south-west of Sydney, in southern NSW, Australia. It is Heron’s aim to create a profitable, long life and low cost mineral processing operation atWoodlawn that produces base and precious metal concentrates. Heron also holds a portfolio of tenements adjacent to the Woodlawn sitecovering the prospective felsic volcanics that host the Woodlawn VMS deposit.

Historically, the Woodlawn Mine operated from 1978 to 1998 and processed 13.8 million tonnes of ore from the Woodlawn open pit,underground and satellite deposits grading 9.1% zinc, 1.6% copper; 3.6% lead, 0.5g/t gold and 74g/t silver. The mine was closed in March1998 due to prevailing low metal prices and external corporate issues. Post mine closure, the mineral rights contained within the WoodlawnMining Licence SML20 were purchased by TriAusMin Ltd. Since that time, work has focused on evaluating the potential to re-process tailingsfrom previous mining operations (termed the Woodlawn Retreatment Project – WRP), and to re-develop the underground mine (theWoodlawn Underground Project – WUP). Regional exploration has also been undertaken in the vicinity of Woodlawn with the objectiveof discovering new, high grade satellite deposits (Woodlawn Exploration Project – WEP).

The WRP has previously been studied to a higher level of detail (Feasibility Study and Front End Engineering Design Study) than the WUP. TheCompany recently initiated a new study (the PEA) focused on the WUP with the principal objective of demonstrating the viability ofrecommencing operations. Whilst this study has a focus on the high-grade underground mineralisation, the development plan for theWoodlawn Project will involve the combined development of the WUP and WRP at the Woodlawn site. The PEA marks the first step in raisingthe level of review on the WUP to allow for an integrated Feasibility Study to be completed.

Page 2 - Financial Report - For the half year ended 31 December 2014

Heron Resources Limited ABN 30 068 263 098

Woodlawn Underground Project (WUP) (100% Heron) Drilling Program

First phase of the program is nearing completion with some 17 diamond drill holes (6,650m) and 11 RC Drill holes (1,145m) completed to date.

• The drilling program which commenced in September 2014 has generated excellent results to date with a number of significantintercepts being returned:

• WNDD0001: 14.4m at 4.6% Zn, 4.1% Cu, 0.8% Pb, 1.0g/t Au and 57g/t Ag from 374m (Kate Lens)



• WNDD0006: 5.6m at 13.3% Zn, 0.7% Cu, 5.4% Pb, 1.2g/t Au, 26g/t Ag from 626m (I Lens)

• WNDD0006: 4.0m at 4.8% Zn, 0.5% Cu, 0.2% Pb, 14g/t Ag from 679m (I Lens)

• WNDD0006: 8.1m at 3.0% Zn, 2.3% Cu, 3.1% Pb, 2.6g/t Au, 68.8g/t Ag from 699m (D Lens)

• WNDD0006: 10.0m at 1.6% Zn, 1.7% Cu, 0.2% Pb, 0.2g/t Au, 15g/t Ag from 759m (D Lens)



• WNDD0008: 5.4m at 11.1% Zn, 1.6% Cu, 0.8% Pb, 0.6g/t Au, 11g/t Ag from 434m (Kate Lens)

• WNDD0009: 14.8m at 5.4% Zn, 2.7% Cu, 2.0% Pb 1.2g/t Au, 48.5 Ag from 198m (G Lens)


• WNDD0010: 4.4m at 4.1% Zn, 3.2% Cu, 0.9% Pb, 0.5g/t Au, 39g/t Ag from 206m (G Lens)

• WNRC0010: 8.0m grading 3.6% Zn,1.3% Cu, 2.6% Pb, 1.0g/t Au and 65g/t Ag from 37m (G Lens)


• WNDD0012: 5.8m at 3.6% Zn, 0.7% Cu, 1.5% Pb, 1.0g/t Au, 60g/t Ag from 74m (H/G Lens)

• WNDD0012: 4.2m at 14.8% Zn, 2.2% Cu, 6.2% Pb, 0.7g/t Au, 37g/t Ag from 135m (E Lens)

• WNDD0013: 9.3m at 6.4% Zn, 3.2% Cu, 2.8% Pb, 2.4g/t Au, 151g/t Ag from 76m (G Lens)

• WNDD0014: 2.1m at 3.1% Zn, 6.5% Cu, 1.3% Pb, 1.2g/t Au, 146g/t Ag from 61m (G Lens

• Other massive sulphide intercepts where assays are pending include:

• WNDD0015: 2.9m of massive sulphides from 237m (new Lisa Lens)

• WNDD0015: 4.1m of massive sulphides from 242m (new Lisa Lens)

• WNDD0016: 9.4m of copper-rich massive sulphides from 436.6m (Kate Lens)

• WNDD0017: 9.5m of complex and copper-rich massive sulphides from 254.1m (D Lens)

The focus of the diamond drilling has primarily been on recently discovered Kate Lens where seven of the nine holes drilled to-date intersectedmassive sulphide mineralisation (see Figures 1, 2 & 3 below). Overall, the boundaries from drilling the Kate Lens have been interpreted andare expected to provide a significant addition to the overall Mineral Resource tonnage. Kate Lens is viewed as a likely source for early, high-grade tonnage for the planned underground operation. Importantly, the lens still remains open in a number of directions.

Other areas tested in the current program include the up-dip positions of the A, E, G and I lenses. Significant mineralisation was recentlyintercepted in the E and G lens that are expected to add shallow, high-grade tonnages. Modelling of the DHEM data from two holes into theI Lens up-dip position indicates that mineralisation occurs nearby and that a modest zone of mineralisation is likely to lie between the twoholes.

As this initial phase of drilling nears completion, a number of “step-out” targets are being drilled which include the new Lisa Lens and a targetto the south of the existing open pit. At this stage, the results from these holes will not be included in the revised Mineral Resource estimate,however it is expected these results may demonstrate further potential upside to the Woodlawn mineral inventory.

DHEM Surveys - The majority of the holes drilled in the current program have been surveyed with DHEM probes which provide an indicationof the potential occurrence of conductive massive sulphides adjacent to the drill hole (‘off-hole’). The recorded and modelled response fromthe DHEM surveys has, in many cases, successfully guided follow-up drilling, and continues to be an important component of drill-targeting.

Two conductors have now also been modelled from drill hole WNDD0009, providing down-plunge indicators for the G Lens, and indicating theKate Lens is open in the up-dip position. These are robust targets for future drilling. Given this success, DHEM will continue to be a keycontributor to future exploration programs at Woodlawn.



Woodlawn Project – PEA• PEA is on track to release findings within the 1st Half 2015, with excellent progress being made across all technical disciplines

• Updated Mineral Resource model is being prepared in accordance with JORC and CIM standards

• Mine planning and rock mechanics work has identified mining methods adapted to localised conditions

• Metallurgical testwork on underground and blended underground/tailings samples is demonstrating improvements in metal recoveriescompared to historical production

Mineral Resource Estimation - The revised Mineral Resource estimate is progressing well. Work continues on incorporating historic surveydata of underground workings into the model, which has been improved by better methodology and knowledge from intercepts from the recentdrilling campaign. It is expected that part of the current Mineral Resource will reduce due to the overlay of the revised mining engineeringparameters, however it is expected this will be partially offset by gains made in new areas from the current drilling, such as the Kate and ILenses. In addition, the overall technical quality of the Mineral Resource estimation will be improved. The establishment of the PEA mininginventory is expected to be generated from both within the bounds of the existing Mineral Resource and from the additions generated throughthe current drilling program.

Figure 1: Plan overview of the Woodlawn Lenses showing pit and existing underground decline.



Figure 2 (top): Cross section through the Woodlawn underground lenses looking north. Figure 3 (bottom): Long-section looking east for theKate Lens showing recent drilling and modelled DHEM plate.



Modelled DHEMplates at slight

oblique angle to theplane of the section- some distance are

distorted

Open PitOpen Pit(Waste disposal site)(Waste disposal site)

B Lens

J Lens

H Lens E Lens

A Lens

C Lens

350m

620mdeepestworkings

F LensG Lens

||

WLTD011W

2 WNDD0006 WLTD011W1WLTD011

WNDD0008WLTD015

WNDD0001

WNDD0002

WNDD0007

W

400m

WNWLTD01

WNDD0 W

W

WNDD0012

WNDD0013

Kate Lens

B LWLTD0

New

D Lens

WNDD0009

WNDD0010

WNDD0015 Open Pit(Waste disposal site)

WNDD0014

120m

W176 NSR

WLTD015 32m @ 4.6% Zn, 1.8% Cu, 1.2% Pb,0.6g/t Au, 21g/t Ag; inc. 9m @ 16.1% Zn,

2.0% Cu, 4.0% Pb, 0.8g/t Au, 52g/t Ag from 376m

150m

WNDD00028.8m @ 12.6% Zn, 1.6% Cu, 7.5%

Pb, 2.3g/t Au & 152g/t Ag from 374m;& 2.3m @ 12.0% Zn, 0.6% Cu, 5.4% Pb,

1.3g/t Au & 116g/t Ag from 368m

2,400mRL

NSR

Drillhole pierce points

No significant results

LEGEND

50m

WNDD0001 14.4m @ 4.6% Zn, 4.1% Cu,

0.80% Pb, 1.0g/t Au &56.8g/t Ag from 374m

OP

EN

OPEN

OPEN

WNDD00098.1m @ 7.2% Zn, 1.1% Cu,

2.3% Pb, 0.9g/t Au &28g/t Ag from 308.7m

WNDD0008 5.4m @ 11.1% Zn, 1.6% Cu,

0.80% Pb, 0.6g/t Au &11.4g/t Ag from 434m

WNDD000712.3m @ 20.0% Zn, 2.1% Cu, 6.10% Pb,

0.8g/t Au & 52.9g/t Ag from 414.3m& 2.4m @ 20.1% Zn, 1.6% Cu, 4.2% Pb,

2.1g/t Au & 39.7g/t Ag from 434.7mWNDD0010

12.5m of semi-massivesulphides with Cu to 1.6%

over 3 x 1m intervals

Woodlawn Long SectionLooking East - Plane of Kate Lens

Surface at2,800mRL

E Lens showing minedstopes & remaining

mineralisation

W1103m minor sulphide

W59 NSR

W60 NSR

2,500mRL

WLTD012 NSR

WNDD00036.3m semi massive sulphide

breccia from 397.2m. NSR

Updated ModelledEM Plates basedon recent drilling

Woodlawn Cross SectionLooking North

WNDD00115.9m at 6.3% Zn, 3.2% Cu,

1.7% Pb, 1.3g/t Au,74g/t Ag from 348m

WNDD0013 9.3m at 6.4% Zn,3.2% Cu, 2.8% Pb, 2.4g/t Au,151g/t Ag from 76m (G Lens)

WNDD0012 5.8m at 3.6% Zn, 3.2% Cu, 1.5% Pb,1.0g/t Au, 60g/t Ag from 74m (H/G Lens)& 4.2m at 14.8% Zn, 2.2% Cu, 6.2% Pb,0.7g/t Au, 37g/t Ag from 135m (E Lens)

WNDD00065.6m @ 13.3% Zn, 0.7% Cu, 5.4% Pb,1.2g/t Au & 25.9g/t Ag from 626.1m4.0m @ 4.8% Zn, 0.5% Cu, 0.2% Pb

& 14.5g/t Ag from 679m8.1m @ 3.0% Zn, 2.3% Cu, 3.1% Pb,2.6g/t Au & 68.8g/t Ag from 699.4m10m @ 1.6% Zn, 1.7% Cu, 0.2% Pb,0.2g/t Au & 15.3g/t Ag from 759m

WNDD00104.4m @ 4.1% Zn, 3.2% Cu,

0.9% Pb from 206m

WNDD000914.8m @ 5.4% Zn, 2.7% Cu,

2.0% Pb from 198m

Hole & Assays completed

Hole/Assays inprogress

WNDD00154.1m of massive

sulphides from 242.0m(Lisa Lens)

WNDD00169.4m of copper-rich massive

sulphides from 436.6m

WNDD0014 2.1m at 3.1% Zn, 6.5% Cu,1.3% Pb, 1.2g/t Au,

146g/t Ag from 61m (G Lens)

WNDD0018In Progress

Rock Mechanics / Geotechnical Engineering - Beck Engineering has reviewed the extensive historical mining records to betterunderstand the ground conditions previously encountered at Woodlawn, as well as past ground control practices. Inspection and geotechnicallogging of Kate Lens diamond drill core has shown improved ground competency in this area. Along with the use of consolidated backfill, it isexpected that the selection of an appropriate mining method will provide for maximum metal recovery and high productivity. The new operationcontemplated by the PEA has presented the Company with the opportunity to implement a number of changes that will greatly improve thefuture management of ground conditions. These changes include the use of full time geotechnical resources on site, structural modelling toimprove the predictive capacity for mine planning, tailored extraction techniques that will minimise the creation of isolated sill pillars and,critically, the implementation of cemented paste fill as a competent support medium.

Proposed Boxcut, Portal & Decline - A component of the current drilling program includes the drilling of specific geotechnical holes alongthe proposed decline route. The first geotechnical drill hole encountered low-competency black shale and mudstone units. This led BeckEngineering to recommend a revised decline route and a redesigned geotechnical drill program. Three geotechnical holes have now beencompleted with adequate ground conditions encountered at the designed decline depths.

Mining Studies and Costs - SRK and Beck Engineering, with input from Heron (including past Woodlawn employees), have been workingon examining a number of different mining methods that could be applied to both existing resources in and around the former workings, aswell as the new resource areas defined by the recent drilling programs. Future mining at Woodlawn will utilise several different miningtechniques determined by localised factors, such as mineralised width, length and height, proximity to other workings, new resource areas,and assessment of the likely ground conditions. Due to the high-grade nature of the mineralisation, a target for the mine planning work is tomaximise metal recovery. The application of competent cement paste fill will be integral to achieving this. SRK has estimated a set ofpreliminary production rates and costs for these mining methods that will be incorporated into the proposed mining inventory, productionschedule and financial assessment of the PEA.

Backfill Studies - Outotec has commenced paste fill and rheology work on a 134kg large sample collected from the South Tailings Dam whichhas then been ground to 30 microns at the Australian Minmet Metallurgical Laboratories (“AMML”) laboratory in Gosford. Initial testworkindicates that approximately 48% of the material will be of a size suitable for paste fill. Following the completion of flotation test work byAMML on the core samples from underground, the resulting tailings will be forwarded to Outotec for further paste fill and rheology test work.

Metallurgical Testwork - Testwork is ongoing at AMML. This has demonstrated that readily saleable copper, lead and zinc concentratescan be produced at high metal recoveries in a conventional sequential flotation circuit. Utilising improvements to process technologies,flotation results from the combined underground mineralisation and former tailings, have exceeded the historical recoveries achieved duringthe original flotation of fresh Woodlawn underground ore by itself.

Process and Plant Engineering - GR Engineering Services is undertaking the process and plant engineering work which builds upon their2012 Front End Engineering Design (“FEED”) Study for the tailings retreatment plant, as well as taking into account the metallurgical testresults for the underground and underground/tailings samples. A revised flowsheet has now been agreed, and the engineering study work isproceeding on a plant design capable of processing variable blends of underground ore and tailings at a total feed rate of 1.5 million tonnesper annum.

Project Development Permitting / Licensing - Whilst permitting and licensing aspects do not influence the completion of the PEA, theseare advancing in parallel with the study, to prepare the site for commencement of on-ground development activity. This will avoid the extendeddelays often encountered after decisions to proceed are taken. The Woodlawn Project received NSW State Government approval fordevelopment on 4 July 2013. As a condition of this approval, a number of management plans are required prior to the commencement ofconstruction. It is anticipated these plans will be lodged with the Department before the end of March 2015. Heron has received notificationfrom the Division of Resources & Energy (“DRE”) that SML20, the mining lease that covers the Woodlawn site, is to be renewed for a further15 year period. Final renewal documents are expected from the DRE within the next few weeks.

Woodlawn Project Development Plan - Following completion of the PEA, it is anticipated that a Feasibility Study (“FS”) will be undertaken.The FS is expected to take up to 12 months and will encompass the combined development of both the underground and tailings projects.Subject to a positive FS and project funding, first production of zinc concentrates at Woodlawn is presently estimated to be early in 2018.



Woodlawn Exploration Project (WEP) (100% Heron unless otherwise stated) • Currawang Prospect –new targets defined from historic DHEM

• Hayshed Prospect – auger sampling completed with anomalies identified

• Cowley Hills Prospect – target generation underway

The Woodlawn Project includes a 556km2 exploration portfolio which is prospective for Volcanogenic Massive Sulphide (VMS) stylemineralisation (Figure 4).

As a VMS centre, the Woodlawn mineralising system can be reasonably expected to generate multiple mineralised positions. High priority“brownfields” targets have been defined in and around SML20, including Currawang, Cowley Hills and Hayshed.

Figure 4: Woodlawn location and regional exploration targets

Currawang (10km NW of Woodlawn) – a program of fixed loop EM surveying is planned for the current quarter to follow-up targets northand south of the old underground mine. This deposit was mined from underground up until 1995 producing around 0.5Mt of high-grade ore atsimilar grades to the Woodlawn operation. The deposit consists of a lenticular pod of massive sulphide mineralisation within the CurrawangBasalt and there is reasonable potential to find additional mineralisation in the poorly tested down-dip and along strike positions.

Cowley Hills (2.5km NE of Woodlawn) – a review of this mine area is currently being undertaken. The mine produced around 35,000tonnes and operated between 1990 and 1991 with ore being hauled to and processed at Woodlawn. Limited drilling has been undertakendirectly south and down-plunge from the known mineralisation and this will be the focus of the current review.

Pylara/Hayshed (directly SE of Woodlawn, royalty payable to Variscan Mines Ltd on certain blocks of EL 7257) – a program of auger soilsampling was undertaken in the latter part of 2014 with some 350 samples collected. Assay results show a broad zone of Cu/Pb/Zn/Au/Asanomalism within which there is higher level core of copper with results up to 203ppm (Figure 5). Within this zone, lead levels reported up to358ppm, zinc up to 114ppm, gold up to 30ppb and arsenic (a base-metal path finder element) up to 304ppm. These soil assay results areconsidered significant given the depleted nature of the soils in the area. While not as large as the Woodlawn footprint, the anomalism maybe pointing towards a potential zone of base-metal mineralisation.



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Northwest Structural Corridor

Montrose

NW Extensions

Murphy’s

Area A

HayshedSte

Oa

Oa

TARAGO

Sfo

SfwDmt

DgoOa

LAKE GEORGE

Sfo Oa

Dkq

Sfc

Sfo

SfwSfw

Sfo

Sfb

a

LAKE

BATHURST

TARAGO

LAKE

BATHURST

Currawang MineHistorical production

0.5Mt @ 13% Zn, 2.2% Pb,1.6% Cu, 33g/t Ag

Woodlawn MineHistorical production

13.8Mt @ 9.1% Zn, 3.6% Pb,1.6% Cu, 74g/t Ag, 0.5g/t Au

Cowley Hills Mine

NW Extensions

Ste Ellenden Granite (Lockhardt Igneous Complex)

Sfd De Drack Fm (sandstone, shale, limestone)

Sfc Currawang Fm (basalt, dolerite)

Meta-sandstone / Siltstone

Dm, Dg, Dk - Sequence of granites,volcanics and conglomerate

Dsd Bishopthorpe dolerite

DEVONIAN

Sfo Covan Crk Fm (sandstone)

SILURIAN

ORDOVICIAN

Black Shale

Sfw Woodlawn Volcanic

Dpw Wologrong Granite

EL 8325EL 8325

EL 7257

EL 8325

EL 7257

EL 8325

SML20SML20

SYDNEY

WOODLAWNPROJECT SYDNEY

PERTHPERTHPERTH

Woodlawn Project InterpretedPalaeozoic Geology

50

kilometres

Cullarin Joint Venture (Heron 78.9%, Golden Cross Resources Ltd 21.1%, 45km NNW of Woodlawn) – an airborne EM survey has beencompleted in the quarter and while no high priority targets have been generated for immediate drill testing, a number of more subtle, lowerpriority targets are being assessed for ground follow up.

Work on WEP areas will progress in parallel to the current SML20 activities and form an important part in Woodlawn becoming a regionalprocessing centre for polymetallic sulphide mineralisation.

Figure 5: Hayshed Prospect geochemical anomaly on Aeromagnetic Image.



Drilling over existing evaporation dams at Woodlawn

KALGOORLIE NICKEL PROJECT, 100% HERON (KNP)• Partner search continuing

The KNP provides significant exposure to long-term, low cost nickel production in a highly stable and mining-orientated jurisdiction. Theproject is located in the Eastern Goldfields of Western Australia, 50-100km north and east from Kalgoorlie with a tenement holding covering850km2. The nickel laterite rights are 100% held by Heron on unencumbered tenure. With the combination of a large resource base and screenbeneficiation of siliceous material, a potential Leach Feed Grade of 1.1-1.5% nickel is possible over a long mine life. The project is also wellsupported by gas, road and rail infrastructure that is suitably located to support the development of the KNP plant site. To date more than A$50million has been spent on the resource drill-out, with the most recent scoping studies focused on the use of Simulus’ CFNP process, whichdemonstrated that the KNP has the potential to provide a source of long term, low capital intensity, and high margin nickel concentrates tothe market.

During the period Heron continued its search to find a potential funding partner to commercialize the “KNP Optimised Flowsheet”. KPMGCorporate Finance was mandated to assist in managing the interest received, and a data room has been opened to a number of parties. WhilstHeron has received positive feedback from parties on the merits of the Simulus CFNP process for the treatment of the KNP laterite, progressin finding a suitable partner has been slower than anticipated. It is also apparent that market sentiment, and consequently appetite for aninvestment in the KNP, has been affected by a steady decline in the nickel price from the year high of US$9.62/lb in the June 2014 quarter tothe current price of around US$6.52/lb.

Work during the quarter focussed on pilot-scale screen upgrade testwork at Simulus Engineering, with encouraging results. The final reportis awaited.

EXPLORATION PROJECTS

New South Wales – Copper-Gold ExplorationHeron maintains a significant tenement holding in the Lachlan Fold Belt with some 3,739km2 under tenure (Figure 6). Three regional structuralsettings have been the focus for Heron acquisitions:

1 Woodlawn VMS Belt base metals

Centred on the Woodlawn Project, the exploration targetis the world-class VMS systems occurring in the N-SSilurian acid volcanic rift from south to north beingStockmans, Captains Flat, Woodlawn, Cullarin and LewisPomds. All Lachlan VMS centres are characterized bymultiple lenses associated with a discrete exhalativeSilurian felsic volcanic/pelite stratigraphy, and all aresuited to EM-based exploration approaches.

2 Lachlan Transverse Zone copper-gold

Centred on the Copper Hill mining centre, world-classporphyry copper-gold occurs within the N-S trendingMacquarie Arc Ordovician andesite belt intruded bySilurian monzonite-tonalite in the WNW trending LachlanTransverse Zone from east to west on the southernbounding fault being Forest Reefs, Cadia-Ridgeway,Cargo; and from east to west on the northern boundingfault being Sunny Corner, Lewis Ponds, Copper Hill,Eurow-Kamandra and Northparkes.

3 Gilmore Suture gold-copper

Centred on the Overflow mining centre, the explorationtarget is the porphyry/epithermal gold-copper systemsoccurring in Silurian-Devonian crustal rift from south tonorth Gundagai, Adrah, West Wyalong, Temora, YellowMountain, Mineral Hill, Overflow, Mt Boppy and Sussex.The key focus of the exploration is on the Lewis Pondsand Overflow projects. The other mainly grass-rootsprojects are being reviewed with the potential to farm outto suitable partners.



COBAR

PARKES

ORANGE

DUBBO

YOUNG

CANBERRA

GOULBURN

Great Australian

Basin

Lachlan Fold Belt

Murray Basin

Sydney

Basin

LAKE CARGELLIGO

MUDGEE

NYNGAN

GILGANDRA

BATHURST

WEST WYALONG

WAGGA WAGGA

ALBURY

DENILIQUIN

COOMA

SYDNEY

VICTORIA

NEFB

Gundagai

Kangiara

Ophir

0 100

kilometres

Adelong

Cowal

Cadia Ridgeway

Tottenham

Peak Hill

Northparkes

Copper Hill

Mineral Hill

Nymagee

Wonawinta

Peak

GirilamboneEndeavour

Mt Boppy

Avoca Tank

Tritton

Woodlawn

Temora

Girilambone

Gilgunnia

Mt Allen

Eurow

Copper Hill

Woodlawn

Lewis Ponds

Overflow

Calarie

CargoWest WyalongFarm-out

Sunny CornerFarm-out

CullarinFarm-in

Canbelego

Wagga TankFarm-out

Copper/base-metal/gold mines andsignificant occurrences

LEGEND

Heron Tenements

Golden Cross Tenements(Heron has 19.9% equity holding in Golden Cross)

Silurian-Devonian Volcanics

Ordovician Volcanics

Figure 6: Heron’s tenement holdings and interests in NSW

The key regional focus of the exploration is on the Lewis Ponds and Overflow projects. The other mainly grass-roots projects are beingreviewed with the potential to farm out to suitable partners.

Lewis Ponds Gold-Copper Project (100% Heron)Located 15km east of Orange, in central NSW (Figures 6 & 7) the project contains the Lewis Ponds VMS deposit (6.6 million tonnes grading2.4% Zn, 0.2% Cu, 1.4% Pb, 1.5g/t Au and 69g/t Ag JORC 2004 Mineral Resource refer to Section 8.0 of Heron’s 2014 Annual Report) – madeup of Main Zone and Tom’s Zone which occur in a sequence of deformed Silurian felsic-to intermediate-volcano marine-sedimentary rocks. Asreported previously, a number of targets warrant follow-up in the immediate vicinity of the existing resource.

The immediate focus for the Lewis Ponds project is on the strongly anomalous rock-chip samples taken from the Ophir and Browns Creek areain the south-east of the tenement. These areas have received very little past exploration and the Heron results suggest a significantmineralising system may be present. A program of systematic soil auger sampling will be planned to better delineate the size of the systemprior to potential reconnaissance drilling to determine the nature of the mineralisation.

Additional tenure was granted directly to the north of the existing tenement during the period.

Figure 7: Lewis Ponds Project showing key prospects and target areas for follow-up in the SE corner (recent rock-chip samples are shownas pink squares)

Overflow Gold-Base Metal Project (Heron 75.5% on certain blocks and 100% on the remainder)The Overflow project is located 110km south-east of Nynghan and 50km north-west along strike from the Mineral Hill operation (owned byKBL Mining Ltd). The project is located along the northern extension of the Gilmore Suture within Ordovician and Devonian aged meta-sediments. It has the potential to host both epithermal and Cobar-style gold and base-metal mineralisation. No field work was undertakenduring the period.



0 5

kilometres

Lewis Ponds

Lower Lewis Ponds

City ofOrange

EL 8323

EL 5583

Lewis PondsProject

Mount Lindsay

Mt Shorter

Lewis Ponds6.6 million tonnes grading2.4% Zn, 0.2% Cu, 1.4% Pb,

1.5g/t Au and 69g/t Ag(JORC 2004 Mineral Resource)

Mt Bulga(excised)

Bobs Mount

Cesars

Ohir

Browns Creek Lode

Williams Lode

Icely Mine

Mt Nicholas Mine

Target areafor followup

First AustralianGold Fields,Ophir, NSW

Dead Horse Gully Mine

Queen of the Ranges Mine

Fourth Crossing Workings

Pine Forest Workings

BelmoreHill Mine

Legend

Historic gold and base-metal workings

Recent soil samples

Silurian-Devonian Volcanics

West Australia – Nickel Sulphide ExplorationBedonia Project (100% Heron)

The Company’s Bedonia Project is located 75km east of Norseman, Western Australia and 60km west-southwest of the Nova-Bollinger nickel-copper discovery (by Sirius Resources NL) (Figure 8) within the Albany Fraser Mobile Zone. Total tenement holding is now approximately 1,500km2.

In the south of the project area the Company is seeking Nova-style nickel-copper mineralisation hosted within the interpreted Proterozoic-agedMount Andrews Gneiss Complex where there is potential for discrete mineralised mafic intrusive bodies.

To this end, Heron completed an initial four hole RC drill program in late 2013 to test a bedrock EM conductor which intersected gneissic maficto intermediate rocks with disseminated sulphides.

Auger programs in 2014 identified a number of nickel sulphide targets at the Beaker, Woodline and Mordicus prospects. The Company iscurrently seeking a joint venture partner to advance the Bedonia targets

Figure 8: Bedonia Project location on aeromagnetic image

Mt Zephyr Gold and Nickel Sulphide Project (100% Heron)

The Mt Zephyr Project is located 80km north-northeast of Leonora and is prospective for Archaean gold mineralisation within high-gradelaminated quartz occurrences identified by a local prospector in the north of the project area (Paul’s Find).

In addition, a strong basal contact anomaly of 500-1,000ppm nickel was generated in 2014 through soil auger sampling north of Paul’s Findwhere Archaean ultramafic units occur at a similar stratigraphic level to the Mt Windarra mineralised ultramafic units north of Laverton.Follow-up sampling and a possible EM survey is being planned.

Mt Zephyr is a contiguous strategic greenstone holding which Heron ranks highly within its WA exploration portfolio. No further work wascompleted during the current period, however once targets are better defined, the Company will be seeking a joint venture partner to advancespecific targets.



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Queensland Exploration Projects (100% Heron)The Company held four tenements covering some 550km2 in the Mt Isa Inlier of northwest Queensland, targeting copper-gold-REEmineralisation in Iron Oxide Copper Gold (IOCG) settings. Following an unsuccessful search for a joint venture partner the Company hasrelinquished this ground and focus its resources on its other projects in NSW and WA.

Joint Venture Projects WA and NSW Bulong Gold Project (Heron 20%, Southern Gold Ltd 80%; Heron retains 100% of nickel laterite rights Bulong East)

The Bulong Gold Project is located 30km east of Kalgoorlie. No field work was undertaken during the period by Southern Gold Ltd, who arethe managers of the Joint Venture. An Information Memorandum relating to the potential nickel sulphide prospectivity of the Joint Venturetenements has been distributed to a number of interested parties. Southern Gold continues to seek potential partners to evaluate thesignificant sulphide nickel prospectivity of the area as it also moves towards gold production at its wholly-owned Canon deposit locatedadjacent to the joint venture ground.

Rocky Gully Nickel-Copper Prospect (100% Heron, PLD Corporation right to purchase 90%)

The Rocky Gully Project is located 85km northwest of Albany, Western Australia within the western extension of the Albany Fraser MobileZone and is prospective for Nova-style nickel-copper sulphide deposits. PLD Corporation Limited (ASX:PLD) (PLD) has entered into anagreement with Heron whereby PLD has a 12 month option to acquire a 90% interest in Heron’s tenements for a consideration of A$280,000cash or equivalent PLD shares (PLD election). No recent field work has been reported by PLD.

Calarie Copper-Gold Project (EL7023 and ML739 – farmed out to Kimberley Diamonds Ltd who are earning a 75% interest)

Located 25km south-southwest of Parkes the area is principally prospective for gold mineralisation associated with the old Lachlan goldworkings where several encouraging drill intercepts have been returned in recent years. No recent field work has been reported.

CORPORATE• General Meeting of Shareholders scheduled for 12 February 2015

General Meeting - At the Annual General Meeting (AGM) in November last year, the Company received a second strike vote against itsremuneration report for the financial year ended 30 June 2014. The shareholders also approved the convening of a spill meeting (GeneralMeeting). The Company subsequently entered into discussions with its major shareholders, including Sprott Inc., with a view to resolving aboard composition that would meet with a high degree of support across the share register. As a result, it was agreed that Mr Borden PutnamIII would join the Board (appointed 12/12/2014) as a Non-Executive Director, and that Sprott Inc. would support the re-election of Messrs IanBuchhorn, Stephen Dennis, Borden Putnam III and Craig Readhead as directors at the General Meeting.

Following the General Meeting, the Company will further consider the Board makeup having regard to a composition of a majority ofindependent directors including a decision on the position of Chairman, with Mr Craig Readhead volunteering not to offer himself forconsideration and that the Chairman of the Board be independent for both the purposes of Australian and Canadian securities regulation.

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 13.

Signed in accordance with a resolution of the Board of Directors:

Craig Leslie ReadheadDirector

Date: 12 February 2015



CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE HALF YEAR ENDING 31 DECEMBER 2014

Notes 31 Dec 2014 31 Dec 2013$'000 $'000

REVENUES FROM CONTINUING ACTIVITIES 2 726 754

Audit & accounting fees (25) (15)

Consultants expense (132) (99)

Depreciation expense 4(b) (24) (32)

Directors fees (106) (86)

Employee benefits expense (547) (149)

Insurance expense (97) (29)

Legal fees (101) (26)

Equity Settled Share based payments 3, 12(b) (255) (510)

Other expenses from ordinary activities 4(a) (631) (324)

Exploration expenditure expensed as incurred 10 (1,676) (2,044)

Impairment of investments 8 (913) -

PROFIT (LOSS) FROM ORDINARY ACTIVITIES BEFORE INCOME TAX EXPENSE (3,781) (2,560)

INCOME TAX EXPENSE - -

PROFIT (LOSS) FROM ORDINARY ACTIVITIES AFTER INCOME TAX EXPENSE (3,781) (2,560)

OTHER COMPREHENSIVE INCOME

Changes in market value of financial assets 12(a) - 149

TOTAL COMPREHENSIVE INCOME FOR THE HALF YEAR (3,781) (2,411)

$ $

Basic earnings per share 5 (0.01113) (0.01012)

Diluted earnings per share 5 (0.01113) (0.01012)

The Consolidated Statement of Profit and Loss and Other Comprehensive Income should be read inconjunction with the accompanying notes.



CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

Notes 31 Dec 2014 30 June 2014$'000 $'000

CURRENT ASSETS

Cash assets 13 28,316 32,915

Trade and other receivables 6 422 337

Investments 7 - 1,359

TOTAL CURRENT ASSETS 28,738 34,611

NON-CURRENT ASSETS

Trade and other receivables 19 35 35

Investments 8 2,930 3,321

Property, plant and equipment 9 440 58

Exploration and evaluation costs carried forward 10 23,417 4,578

TOTAL NON-CURRENT ASSETS 26,822 7,992

TOTAL ASSETS 55,560 42,603

CURRENT LIABILITIES

Trade and other payables 11 899 281

Provisions – employee entitlements 780 560

TOTAL CURRENT LIABILITIES 1,679 841

TOTAL LIABILITIES 1,679 841

NET ASSETS 53,881 41,762

EQUITY

Contributed equity 14 131,680 116,035

Revaluation reserve 12(a) - -

Option reserve 12(b) 2,696 2,441

Accumulated losses 12(c) (80,495) (76,714)

TOTAL EQUITY 53,881 41,762

The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes



CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE HALF YEAR ENDING 31 DECEMBER 2014

Note Issued Retained Revaluation Option TotalCapital Earnings Reserve Reserve

$’000 $’000 $’000 $’000 $’000

As at 30 June 2014 116,035 (76,714) - 2,441 41,762

Total comprehensive income for the half year 12(c) - (3,781) - - (3,781)

Issue of share capital 20 15,645 - - - 15,645

Option reserve transfer on exercise - - - - -

Option reserve write back 12(b) - - - - -

Cost of share based payments 3, 12(b) - - - 255 255

As at 31 December 2014 131,680 (80,495) - 2,696 53,881

As at 30 June 2013 116,035 (73,924) - 5,591 47,702

Total comprehensive income for the half year - (2,560) 149 - (2,411)

Issue of share capital - - - - -

Option reserve transfer on exercise - - - - -

Option reserve write back - 49 - (49) -

Cost of share based payments - - - 510 510

As at 31 December 2013 116,035 (76,435) 149 6,052 45,801

The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes



CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE HALF YEAR ENDING 31 DECEMBER 2014

Notes 31 Dec 2014 31 Dec 2013$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Interest received 557 793

Payments for services & administration expenses (1,805) (725)

NET CASH FROM/USED IN OPERATING ACTIVITIES (1,248) 68

CASH FLOWS FROM INVESTING ACTIVITIES

Exploration and development expenditure (3,348) (2,119)

Proceeds from sale of shares 89 -

Purchase of shares (378) -

Purchase of plant and equipment (29) (15)

Proceeds from sale of plant and equipment - 3

NET CASH USED IN INVESTING ACTIVITIES (3,666) (2,131)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares - -

NET CASH PROVIDED BY FINANCING ACTIVITIES - -

NET INCREASE / (DECREASE) IN CASH HELD (4,914) (2,063)

Cash acquired upon acquisition of TriAusMin 20 315 -

Cash at the beginning of the reporting period 32,915 39,597

CASH AT THE END OF THE REPORTING PERIOD 13 28,316 37,534

The Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.



NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2014

NOTE 1 SUMMARY OF ACCOUNTING POLICIES

Statement of Compliance and Basis of Preparation

These general purpose financial statements for the interim half-year reporting period ended 31 December 2014 have been prepared inaccordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'InterimFinancial Reporting'.

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

The consolidated interim financial report does not include all of the information required for a full annual report and accordingly, this report isto be read in conjunction with the annual report for the year ended 30 June 2014 and any public announcements made by Heron ResourcesLimited during the half year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies and methods of computation adopted in the preparation of the half year financial report are consistent with thoseadopted and disclosed in the Company’s 2014 annual financial report for the financial year ended 30 June 2014.

31 Dec 2014 31 Dec 2013$'000 $'000

NOTE 2 REVENUE – INCOME STATEMENT

Profit on sale of investments 30 -

Profit / (Loss) on sale of fixed assets - 3

Interest received – other persons/corporations 539 731

Bonus issue of options 1 110 -

Sundry income 47 20

Total revenues from continuing activities 726 754

(1) Bonus issue of options from A1 Consolidated Gold Limited. The options have been valued at the initial market price of $0.01 per option and then marked to market as at 31 December 2014 (refer Note 8).

31 Dec 2014 31 Dec 2013$'000 $'000

NOTE 3 SHARE BASED PAYMENTS

Share based payments is the fair value of options issued and expensed over the vesting period.

Cost of share based payments (255) (510)

The Black Scholes valuation methodology has been used to value the options issued during the reporting period.



NOTE 4 OTHER EXPENSES – INCOME STATEMENT

(a) Other Expenses comprise the following items:31 Dec 2014 31 Dec 2013

$'000 $'000

Payroll tax (4) 2

Media and public relations (62) (20)

Rental expense (155) (132)

ASX and TSX fees (188) (38)

Travel and accommodation (71) (21)

Office expenses and supplies (50) (39)

Computer support services (34) (24)

Report expenses and printing (19) (16)

Conferences and seminars (22) (9)

Subscriptions (1) (8)

Miscellaneous expenses (25) (19)

(631) (324)

(b) Depreciation expense31 Dec 2014 31 Dec 2013

$'000 $'000

Plant & equipment (8) (10)

Office furniture & equipment (14) (10)

Motor vehicles (2) (12)

(24) (32)

Overall increase in expenses is due to the merger with TriAusMin Ltd on 5 August 2014 with staff headcount, associated office expensesand share registry expenses all higher compared to the corresponding period.

NOTE 5 EARNINGS PER SHARE

Basic and diluted earnings per share is calculated by dividing the half yearly loss of $3,781,081 by the weighted average number of ordinaryshares outstanding during the half-year of 339,653,080.

NOTE 6 TRADE AND OTHER RECEIVABLES CURRENT31 Dec 2014 30 June 2014

$'000 $'000

Accrued Interest 139 157

Prepayments 85 31

GST receivable 53 24

Sundry Debtors 145 125

422 337



NOTE 7 INVESTMENTS IN OTHER ENTITIES – CURRENT

Black Oak Minerals Ltd (BOK) (formerly Southern Cross Goldfields Limited (SXG) is an Australian listed public exploration company with887,450,815 fully paid ordinary shares on issue. Heron held 5,875,528 fully paid shares all of which were sold during the 6 months to 31December 2014 realising a net profit of $29,896.

TriAusMin Limited was an Australian listed public exploration company prior to merging with Heron Resources Limited on 5 August 2014.Heron purchased 1.3 million $1 convertible notes in March 2014 which are eliminated on consolidation following the merger.

31 Dec 2014 30 June 2014$'000 $'000

Black Oak Minerals Limited - 59

TriAusMin Limited - 1,300

- 1,359

NOTE 8 INVESTMENTS IN OTHER ENTITIES – NON CURRENT

A1 Consolidated Gold Limited (AYC) is an Australian listed public exploration company with 250,016,873 fully paid ordinary shares onissue. Heron holds 32,866,668 fully paid shares at 31 December 2014, which have been valued at the closing price of $0.04 on that day. Heronalso holds 10,955,556 options exercisable for $0.03 expiring 30 November 2019 which have been valued at the initial market price of $0.01per option and then marked to market at the closing price of $0.009 per option as at 31 December 2014 (refer Note 2).

Golden Cross Resources Limited (GCR) is an Australian listed public exploration company with 94,797,744 fully paid ordinary shares onissue. Heron holds 18,798,529 fully paid shares at 31 December 2014, which have been valued at the closing price of $0.07 on that day.

PLD Corporation Limited (PLD) is an Australian listed public exploration company with 627,582,141 fully paid ordinary shares on issue.Heron holds 3,750,000 fully paid shares at 31 December 2014, which have been valued at the closing price of $0.006 on that day.

Newamu IP Holdings Pty Ltd is a subsidiary of The Simulus Group Pty Ltd in which Kalgoorlie Nickel Project Pty Ltd (a wholly ownedsubsidiary of Heron) has invested $178,000. The investment is carried at cost.

INVESTMENTS IN OTHER ENTITIES AT FAIR VALUES31 Dec 2014 30 June 2014

$'000 $'000

A1 Consolidated Gold Limited 1,413 1,441

Golden Cross Resources Limited 1,316 1,880

PLD Corporation Limited 23 -

Newamu Pty Ltd 178 -

2,930 3,321



Movement in investments$'000

Golden Cross Resources Limited

Carrying value 30 Jun 2014 1,880

Impairment (564)

Carrying value 31 Dec 2014 1,316

A1 Consolidated Gold Limited


Investment - Shares 200

Impairment - Shares (327)

Bonus issue of Options – initial val’n 110

Impairment - Options (11)

Carrying value 31 Dec 2014 1,413

PLD Corporation Limited

Carrying value 30 Jun 2014 -

Investment 34

Impairment (11)

Carrying value 31 Dec 2014 23

Newamu Pty Ltd

Carrying value 30 Jun 2014 -

Investment 178

Carrying value 31 Dec 2014 178

Summary


Investment 412

Bonus issue of options 110

Impairment (913)

Carrying value 31 Dec 2014 (1) 2,930

(1) - Rounding


Heron Resources Limited ABN 30 068 263 098NOTE 8 INVESTMENTS IN OTHER ENTITIES – NON CURRENT cont

NOTE 9 PROPERTY, PLANT AND EQUIPMENT31 Dec 2014 30 June 2014

$'000 $'000

Plant and equipment at cost 326 259

Accumulated depreciation (297) (235)

29 24

Office equipment & furniture at cost 846 530


73 34

Motor vehicles at cost 243 180


13 -

Land & buildings at cost 325 -

Accumulated depreciation - -

325 -

Total property, plant and equipment 440 58

Reconciliation

Plant and equipment: $'000

Carrying value at 1 July 2014 24

Additions 13

Depreciation expense (8)

Carrying value at 31 December 2014 29

Office equipment and furniture:

Carrying value at 1 July 2014 34

Additions (1) 55

Disposals (2)



Motor vehicles:

Carrying value at 1 July 2014 -

Additions (2) 14



Land & buildings:

Carrying value at 1 July 2014 -

Additions (3) 325

Depreciation expense -


(1) $38K of Office Equipment additions acquired upon acquisition of TriAusMin Ltd(2) $14K of Motor Vehicles acquired upon acquisition of TriAusMin Ltd(3) Freehold Land at Lewis Ponds, acquired upon acquisition of TriAusMin Ltd



NOTE 10 EXPLORATION AND EVALUATION COSTS CARRIED FORWARD31 Dec 2014 30 June 2014

$'000 $'000

Balance brought forward 4,578 5,070

Acquisition costs 29 53

Exploration and evaluation costs incurred 3,756 3,357

Exploration and evaluation expensed as incurred (1,676) (3,497)

Exploration and evaluation costs from TriAusMin merger (1) 16,730 -

Exploration and evaluation impairment - (405)

Balance carried forward 23,417 4,578

The ultimate recoupment of costs carried forward is dependent upon the successful development and/or commercial exploitation oralternatively, sale of respective areas of interest.

(1) Capitalised exploration and evaluation costs from TriAusMin merger relate to Woodlawn ($11,827) and Lewis Ponds ($4,903)

NOTE 11 TRADE AND OTHER PAYABLES CURRENT31 Dec 2014 30 June 2014

$'000 $'000

Trade creditors and accruals - Exploration activities 603 166

Trade creditors and accruals - Other 296 115

899 281

Trade creditors are non-interest bearing and are normally settled on 30 day terms.

NOTE 12 ACCUMULATED LOSSES AND RESERVES31 Dec 2014 30 June 2014

$'000 $'000

(a) Revaluation Reserve

Balance brought forward - -

Revaluations - -

Balance carried forward - -

The revaluation reserve is used to recognise the fair value of financial assets classified as available-for-sale assets.

Amounts are recognised in the income statements when the associated assets are sold.

(b) Option reserve

Balance brought forward 2,441 5,591

Cost of share based payments 255 449

Write back of lapsed options expense - (3,599)


The option reserve is used to recognise the fair value of options issued and expensed over the vesting period and credited to this reserve.The shares will reverse against the share capital when the underlying options are exercised.

(c) Accumulated losses

Balance brought forward (76,714) (73,924)

Write back of expense for lapsed options - 3,599

Net profit / (loss) (3,781) (6,389)

Balance carried forward (80,495) (76,714)



NOTE 13 CASH 31 Dec 2014 30 June 2014

$'000 $'000

Cash on hand and at bank 254 110

Deposits at call 27,638 32,281

Property Rental Bond 47 47

Environmental Bonds 377 477


Cash security for environmental bonds of $377,000 (June 2014: $477,000) is included in Cash on hand and at bank. This is not available tothe Company for ordinary activities.

Property Bonds of $46,545 (June 2014: $46,545) are included in Cash on hand and at bank. This amount is held as a security term depositand is not available to the Company for ordinary activities.

NOTE 14 CONTRIBUTED EQUITY 31 Dec 2014 30 June 2014 31 Dec 2014 30 June 2014

Issue of ordinary shares Shares Shares $'000 $'000

Opening balance 252,985,787 252,985,787 116,035 116,035Issue of shares (1) 107,891,936 - 15,645 -Closing balance 360,877,723 252,985,787 131,680 116,035

(1) Issue of new Heron shares to complete the 100% acquisition of TriAusMin Ltd on 5 August 2014 on the basis of 1 Heron share for every 2.33 TriAusMin shares.Immediately prior to the acquisition, TriAusMin had 251,389,050 shares on issue.

NOTE 15 SUBSEQUENT EVENTS

Other than noted below there is no matter or circumstance which has arisen since 31 December 2014 that has significantly affected or maysignificantly affect the operations, the results of operations or the state of affairs of the Company.

NOTE 16 CONTINGENT LIABILITIES

a) Performance bonds and rental bond commitment

The Company has entered into performance bonds with the National Australia Bank Limited in relation to environmental rehabilitationof the previous TriAusMin NSW tenements (30 June 2014: $148,000) and a rental bond commitment ($12,969) over its office in Sydney.The performance bonds and rental bond commitment are secured by a way of mortgage against the Company’s Lewis Ponds freeholdland. The Company also has performance bonds with Westpac Banking Corporation in relation to environmental rehabilitation of theWA tenements (31 December 2014: $377,000) and a rental bond commitment ($46,545) over its Perth office. The Westpac bonds aresecured by term deposits.

b) Agreement with Veolia Environmental Services (Australia) Pty Ltd (“Veolia”)

In 2011, the Company and Tarago Operations Pty Ltd (“TOP”), a wholly owned subsidiary of the Company, entered into an agreementwith Veolia, under which the Company agreed:

(i) To assume the environmental liabilities associated with the Woodlawn site, excluding Veolia’s area of operation. The Companywill be required to provide a performance bond with the NSW Division of Resources and Energy (DRE) as surety againstcompletion of environmental rehabilitation once mining on the site is complete. The amount of the bond is $3,577,000.

(ii) Subject to certain approvals being received by Veolia and the Company, the Company will receive “free-on-board” compost fromVeolia to be utilised in the rehabilitation of the site.

(iii) To fully indemnify Veolia for all direct and or consequential loss and damage suffered by Veolia as a result of or caused by orcontributed to by any act or omission or default of the Company, or TOP, connected with its operations at the Woodlawn site.

c) Other contingent liabilities

Native title claims have been made with respect to areas which include tenements in which the Company has interests. The Companyis unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent theclaims may significantly affect the consolidated entity or its projects.

Rehabilitation of the Jump Up Dam tenements would cost up to $1 million if the Company were to surrender the tenements.



NOTE 17 SEGMENT REPORTING

A segment is a distinguishable component of the Group that is engaged in the minerals industry in Australia. The Company’s activities aredivided into two main categories, corporate and exploration with exploration sub-divided into five categories - tenements related to theKalgoorlie Nickel Project (KNP project); tenements related to Jump up Dam, Boyce Creek and Aubils (Yerilla project); Woodlawn UndergroundProject & Woodlawn Retreatment Project (Woodlawn Project); Lewis Ponds tenements (Lewis Ponds Project) and tenements other than KNP,Yerilla or Lewis Ponds related (Exploration).

Segmental Information for Consolidated Statement of Comprehensive Income

Half year ended Corporate Woodlawn Lewis KNP Yerilla Exploration Total31 December 2014 Ponds Project Project

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Sale of investments 30 - - - - - 30

Bonus options 110 - - - - - 110

Sundry income 41 - - 6 - - 47

Interest received 539 - - - - - 539

Total revenues 720 - - 6 - - 726

Depreciation (10) (6) - - (1) (7) (24)

E&E expensed as incurred - - (9) (653) (38) (976) (1,676)

E&E expenditure incurred - 2,233 - - - - 2,233

E&E expenditure capitalised - (2,233) - - - - (2,233)

Other expenses (2,807) - - - - - (2,807)

Profit / (loss) (2,097) (6) (9) (647) (39) (983) (3,781)

Half year ended Corporate Woodlawn Lewis KNP Yerilla Exploration Total31 December 2013 Ponds Project Project

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Sale of fixed assets - - - - 1 2 3

Sundry income - - - - - 20 20

Interest received 731 - - - - - 731

Total revenues 731 - - - 1 22 754

Depreciation (10) - - - (3) (19) (32)

E&E expensed as incurred - - - (1,109) (63) (872) (2,044)

Other expenses (1,238) - - - - - (1,238)

Profit / (loss) (517) - - (1,109) (65) (869) (2,560)

Segmental Information for Consolidated Statement of Financial Position

Balance at Corporate Woodlawn Lewis KNP Yerilla Exploration Total31 December 2014 Ponds Project Project

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Other current assets 28,738 - - - - - 28,738

Total current assets 28,738 - - - - - 28,738

PPE 52 372 - - 2 14 440

E&E Costs c/f - 13,936 4,903 4,578 - - 23,417

Other 2,965 - - - - - 2,965

Non-current assets 3,017 14,308 4,903 4,578 2 14 26,822

Total assets 31,755 14,308 4,903 4,578 2 14 55,560

Total liabilities 399 681 - - - 599 1,679



Movement Corporate Woodlawn Lewis KNP Yerilla Exploration Totalhalf year ended Ponds Project Project31 December 2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Other current assets (5,873) - - - - - (5,873)

Total current assets (5,873) - - - - - (5,873)

PPE 18 372 - - - (8) 382

E&E c/f - 13,936 4,903 - - - 18,839

Other (391) - - - - - (391)

Non-current assets (373) 14,308 4,903 - - (8) 18,830

Total assets (6,246) 14,308 4,903 - - (8) 12,957

Total liabilities 204 681 - - - (47) 838

Balance at Corporate Woodlawn Lewis KNP Yerilla Exploration Total30 June 2014 Ponds Project Project

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Other current assets 34,611 - - - - - 34,611

Total current assets 34,611 - - - - - 34,611

PPE 34 - - - 2 22 58

E&E Costs c/f - - - 4,578 - - 4,578

Other 3,356 - - - - - 3,356

Non-current assets 3,390 - - 4,578 2 22 7,992

Total assets 38,001 - - 4,578 2 22 42,603

Total liabilities 195 - - - - 646 841

Movement Corporate Woodlawn Lewis KNP Yerilla Exploration Totalhalf year ended Ponds Project Project30 June 2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Other current assets (5,418) - - - - - (5,418)

Total current assets (5,418) - - - - - (5,418)

PPE (15) - - - (5) (19) (39)

E&E c/f - - - (492) - - (492)

Other 46 - - - - - 46

Non-current assets 31 - - (492) (5) (19) (485)

Total assets (5,387) - - (492) (5) (19) (5,903)

Total liabilities 23 - - - - 14 37

Because the segmental information in the previous tables agrees to the consolidated statement of profit or loss and other comprehensiveincome and the consolidated statement of financial position there is no need for a reconciliation of segmental information to those statements.

NOTE 18 COMPARITIVES

Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosure.

NOTE 19 TRADE AND OTHER RECEIVABLES - NON CURRENT31 Dec 2014 30 June 2014

$'000 $'000

Employee share option plan – non-recourse loan 35 35

35 35


Heron Resources Limited ABN 30 068 263 098NOTE 17 SEGMENT REPORTING cont

NOTE 20 ACQUISITION OF TRIAUSMIN

Effective on 5 August 2014 (“date of acquisition”), Heron acquired 100% of TriAusMin Limited (“TriAusMin”). In consideration for acquiringthe net assets of TriAusMin, shareholders of TriAusMin were issued 107,891,936 new Heron shares. On the date of acquisition, Heronacquired the following assets and liabilities of TriAusMin.

$'000

Current Assets

Cash $315

Receivables $16

Other Assets $8

Non-Current Assets

Fixed Assets $52

Land (Lewis Ponds) $325

Capitalised Exploration costs $16,730

TOTAL ASSETS $17,446

Current Liabilities

Accounts Payable $414

Provisions $88

Convertible Note $1,300

TOTAL LIABILITIES $1,802

EQUITY

Issued Capital $15,644

TOTAL EQUITY/NET ASSETS $15,644



Directors’ Declaration

The Directors declare that:

In the opinion of the Directors:

1. the attached financial statements and notes thereto comply with the Corporations Act 2001, Australian Accounting Standard AASB 134'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

2. the financial statements and associated notes give a true and fair view of the consolidated entity’s financial position as at 31 December2014 and of its performance, as represented by the results of its operations, changes in equity and its cash flows for the half year endedon that date; and

3. there are reasonable grounds to believe that Heron Resources Limited will be able to pay its debts as and when they become due andpayable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Directors.

Craig Leslie ReadheadChairman

Date: 12 February 2015



Financial Report - For the half year ended 31 December 2014

Shareholder Information

Twenty Largest Shareholders as at 31 December 2014Number of Shares Percentage

1 Canadian Register 107,640,010 29.83 2 Hazurn Pty Ltd 1 23,732,480 6.58 3 Kurana Pty Ltd 1 16,576,556 4.59 4 Citicorp Nominees Pty Limited 13,754,686 3.81 5 National Nominees Limited 10,068,931 2.79 6 Jetosea Pty Ltd 10,000,000 2.77 7 MBM Corporation Pty Ltd 9,999,830 2.77 8 Chaos Investments Pty Limited 5,972,854 1.66 9 HSBC Custody Nominees 4,681,611 1.30 10 Fremont Cat Pty Ltd 4,205,476 1.17 11 Mr David James Wardle 4,070,000 1.13 12 Sheerwater Pty Ltd 3,071,500 0.85 13 Mr Olivier Robert Dupuy 2,600,000 0.72 14 Mr Ian James Buchhorn 1 2,518,241 0.70 15 BGK Investments Pty Limited 2,412,445 0.67 16 Ms Trudi Ann Kempson 2,383,491 0.66 17 Kimlex Investments Pty Ltd 2,227,683 0.62 18 Mrs Pamela Jean Buchhorn 1 2,137,690 0.59 19 Manorina Mining Pty Ltd 1 1,825,992 0.51 20 J P Morgan Nominees Australia 1,790,537 0.50TOTAL 231,670,013 64.22

Substantial Shareholders including related parties who have notified the CompanyNumber of Shares Percentage

¹ I Buchhorn and related parties 46,790,959 12.97

Summary of Option holders as at 31 December 2014Number of % of Issued

Options Options1 Employees & Directors 15,909,869 96.872 Alan Snowden 85,837 0.523 James Gill 214,592 1.314 Robert Valliant 85,837 0.525 William Killinger 128,755 0.78TOTAL 16,424,890 100.00



Appendix 1 – Unaudited Financial Statements for the 3 and 6 month period ended 31 December 2014

Management Comments on Unaudited ConsolidatedFinancial Statements

12 February 2015

To the Shareholders of Heron Resources Limited,

The accompanying unaudited interim Consolidated Financial Statements of Heron Resources Limited for the 3 and 6 month period ended 31December 2014 have been prepared by management and have been approved by the Board of Directors of the Company as an appendix to theFinancial Report for the Half Year ended 31 December 2014.

The attached appendix relates to the 3 months ended 31 December 2014 and the corresponding comparative period ended 31 December 2013and to the 6 months ended 31 December 2014 and the corresponding period ended 31 December 2013.

The financial statements relating to the half year ended 31 December 2014 and the comparative period have been subject to Audit Review byButler Settineri. The financial statements for the 3 months ended 31 December 2014 and the comparative period have been approved by theBoard of Directors of the Company and have not been subject to Audit or Audit Review and no opinion has been provided on those statements.

For further commentary on the operations of Heron during the quarter ended 31 December 2014, please refer to the Management Discussionand Analysis report and to the Quarterly Activities report lodged on the ASX and TSX on 12 February 2015 and posted on the Heron websiteat www.heronresources.com.au.

Heron Resources Limited

C ReadheadChairman

S DennisChairman- Audit Committee



UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE THREE AND SIX MONTHS ENDED 31 DECEMBER 2014All amounts shown are expressed in Australian dollars

Three months ended Six months ended31 December 31 December

Notes 2014 2013 2014 2013$'000 $'000 $'000 $'000

Continuing operations

Revenue from Continuing Activities 4 407 347 726 754

Audit and accounting fees (25) (15) (25) (15)

Consultants expense (65) (71) (132) (99)

Depreciation expense 4(b) (16) (16) (24) (32)

Directors Fees (43) (42) (106) (86)

Employee benefits expense (353) (77) (547) (149)

Insurance expense (75) (15) (97) (29)

Legal fees (81) (5) (101) (26)

Equity settled share based payments 3, 12 (b) (255) (510) (255) (510)

Other expenses from ordinary activities 4(a) (415) (182) (631) (324)

Exploration expenditure expensed as incurred 9 (202) (951) (1,676) (2,044)

Impairment of investment 8 (913) - (913) -

Loss from ordinary activities before income tax expense (2,036) (1,537) (3,781) (2,560)

Income tax expense - - - -

Loss from ordinary activities after income tax expense for the period

Other comprehensive income

Changes in market value of financial assets 11(a) - 149 - 149

Total comprehensive loss for the period attributable to members (2,036) (1,388) (3,781) (2,411)

Loss per share attributable to the ordinary equity of the company (on a weighted average equity basis)

Basic loss per share (in dollars) 5 (0.0055) (0.0055) (0.011) (0.010)

Diluted loss per share (in dollars) 5 (0.0055) (0.0055) (0.011) (0.010)

(1) Figures prior to 5 August 2014 do not contain the financial results of TriAusMin Limited as this was prior to the merger with HeronResources Limited.



UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE THREE AND SIX MONTHS ENDED 31 DECEMBER 2014All amounts shown are expressed in Australian dollars

Note Contributed Revaluation Option Accumulated TotalEquity Reserve Reserve Losses Equity$’000 $’000 $’000 $’000 $’000

Balance at 1 July 2014 116,035 - 2,441 (76,714) 41,762

Revaluation of Investments - (131) - - (131)

Issue of Share Capital 19 15,645 - - - 15,645

Total Comprehensive loss for the quarter - - - (1,745) (1,745)

Balance at 30 September 2014 131,680 (131) 2,441 (78,459) 55,531

Balance at 1 October 2014 131,680 (131) 2,441 (78,459) 55,531

Revaluation of Investments - 131 - - 131

Issue of share Capital - - - - -

Cost of share based payments - - 255 - 255

Total Comprehensive loss for the quarter - - - (2,036) (2,036)

Balance at 31 December 2014 11 131,680 - 2,696 (80,495) 53,881




UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE THREE AND SIX MONTHS ENDED 31 DECEMBER 2014All amounts shown are expressed in Australian dollars

Three months ended Six months ended31 December 31 December

Notes 2014 2013 2014 2013$'000 $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees (837) (398) (1,805) (725)

Interest received 265 377 557 793

Net cash used in operating activities (572) (21) (1,248) 68

CASH FLOWS FROM INVESTING ACTIVITIES

Exploration and development expenditure (1,978) (1,008) (3,348) (2,119)

Proceeds from sale of shares 89 - 89 -

Purchase of shares (200) - (378) -

Purchase of plant and equipment (25) - (29) (15)

Proceeds from sale of plant and equipment - 3 - 3

Net cash used in investing activities (2,114) (1,005) (3,666) (2,131)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of shares - - - -

Net cash provided by financing activities - - - -

Net increase/(decrease) in cash & cash equivalents held (2,686) (1,026) (4,914) (2,063)

Cash & cash equivalents at the beginning of the reporting period 31,002 38,560 32,915 39,597

Cash acquired from TriAusMin acquisition 20 - - 315 -

Cash & cash equivalents at the end of the reporting period 13 28,316 37,534 28,316 37,534




ASX:HRR • TSX:HER

www.heronresources.com.au

MANAGEMENT’S DISCUSSION AND ANALYSISfor the three and six months ended 31 December 2014

HIGHLIGHTS

• Woodlawn Zinc-Copper Project

• Highly successful and ongoing drilling program

• 20 intercepts of massive sulphides to date

• Specialist consultants appointed for project study

• Excellent progress being made with PEA (Scoping Study)

• Woodlawn Regional Exploration

• Currawang – advanced targeting for VMS mineralisation

• Hayshed – auger results provide gold and base metal anomalies

• Kalgoorlie Nickel Project – partner search continues

• General Meeting of Shareholders scheduled for 12 February 2015

• Cash A$27.9 million (excludes restricted cash of $0.4 million) and investments A$2.9 million at 31 December 2014

For more information please refer to the Quarterly Activities report lodged on the ASX and SEDAR on 30 January 2015, or onwww.heronresources.com.au.

INTRODUCTION

The following is management’s discussion and analysis of the financial condition and the results of operations of Heron Resources Limited,(“Heron” or the “Company”) for the three month and six month period ended 31 December 2014, and its financial position as at 31 December,2014 and should be read in conjunction with the Company’s audited financial statements as at June 30, 2014 and half yearly financialstatements as at December 31, 2014 which have been subject to audit review, including the accompanying notes thereto.

The Company’s audited Financial Statements and Notes to the Financial Statements have been prepared in accordance with AustralianAccounting Standards, as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (“IFRS”) asissued by the International Accounting Standards Board. Additional information relating to the Company, including press releases, have beenfiled electronically with the Australian Securities Exchange (“ASX”) and through the System for Electronic Document Analysis and Retrieval(“SEDAR”) and is available online at www.sedar.com.

The date of this management’s discussion and analysis is 12 February, 2015. Unless otherwise indicated all amounts discussed herein aredenominated in Australian dollars.

Management Discussion & Analysis - For the three and six months ended 31 December 2014 - Page 1

The relevant exchange rates applicable to the three and six month period ended 31 December, 2014 are as follows.

Three Months Six Months ended 31 Dec 14 ended 31 Dec 14

AUD/CDN $ Closing Rate .948 .948

Average Rate .971 .989

The Company’s common shares trade on the Australian Stock Exchange (the “ASX”) under the trading symbol “HRR”, and on the Toronto StockExchange (the “TSX”) under the trading symbol “HER”.

Cautionary Note Regarding Forward-Looking Information

Certain information included in this management’s discussion and analysis may constitute forward-looking information within the meaning ofsecurities laws. In some cases, forward-looking information can be identified by the use of terms such as “may”, “will”, “should”, “expect”,“believe”, “plan”, “scheduled”, “intend”, “estimate”, “forecast”, “predict”, “potential”, “continue”, “anticipate” or other similar expressionsconcerning matters that are not historical facts. Forward-looking information may relate to management’s future outlook and anticipatedevents or results, and may include statements or information regarding the future plans or prospects of the Company. Without limitation,statements about the Company’s planned activities related to exploration or development activities carried out in Australia, constitute forward-looking information. Actual results may vary. See “Risk Factors and Uncertainties”.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the estimation of mineral reservesand resources, the realization of mineral reserve and resource estimates, metal prices, the timing and amount of future explorationexpenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability ofnecessary financing and materials, including financing to conduct any future drilling program and the other activities necessary to continue toexplore and develop the Company’s properties in the short and long term, the receipt of necessary regulatory approvals, and assumptions withrespect to environmental risks, title disputes or claims, weather conditions, climate change and other similar matters. While the Companyconsiders these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Without limitation, in estimating expenditures the Company has assumed, among other things, that metal prices will not change materiallyfrom the prices used in its current financial forecasts or those of its affiliate, that it will obtain in a timely fashion all of the financing, regulatoryapprovals and other authorizations required to enable the continued exploration and development of its properties, and that such activitieswill proceed in the ordinary course without undue disruption. See “Risk Factors and Uncertainties”.

Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materiallyfrom what management currently expects. These factors include risks inherent in the exploration and development of mineral deposits, risksrelating to changes in metal prices and the worldwide demand for and supply of metal, uncertainties inherent in the estimation of mineralreserves and resources, risks relating to the remoteness of the Company’s properties including access and supply risks, reliance on keypersonnel, construction and operational risks inherent in the conduct of mining activities, including the risk of increases in capital andoperating costs and the risk of delays or increased costs that might be encountered during the construction and development process, the riskof fluctuations in the Canadian/Australian and U.S./Australian dollar exchange rates, regulatory risks, including risks relating to the acquisitionof the necessary licences and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund theexploration and development activities of the Company may not be available on satisfactory terms, or at all, environmental risks, includingrisks relating to climate change and the potential impact of global warming on project timelines and on construction and operating costs, andinsurance risks. See “Risk Factors and Uncertainties”.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Whilethe Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, exceptas required by law.

Disclosure Controls and Procedures and Internal Controls over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting and disclosurecontrols. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even thosesystems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management has completed an evaluation of the design effectiveness of the Company’s internal control over financial reporting. Based on thisassessment, management has concluded that as at 31 December 2014, the Company’s design for internal control over financial reporting waseffective. Management has also evaluated the effectiveness of the design and operation of the Company’s disclosure controls and proceduresas of 31 December 2014. Based on this evaluation, management has concluded that the Company’s disclosure controls and procedures areeffective in ensuring that information required to be disclosed in reports filed or submitted by the Company under Australian and Canadiansecurities legislation is recorded, processed, summarized and reported within the time periods specified in those rules.

Page 2 - Management Discussion & Analysis- For the three and six months ended 31 December 2014


Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting during the three month period ended 31 December 2014that has materially affected or is reasonably likely to materially affect, its internal control over financial reporting.

OVERVIEW

HERON RESOURCES LIMITED (“Heron” or “the Company”) is engaged in the exploration and development of base and precious metaldeposits in Australia. Following the recent merger with TriAusMin, the Company is focused on the development of the high grade WoodlawnProject located 250km southwest of Sydney in New South Wales. Heron also owns the Kalgoorlie Nickel Project located north of Kalgoorliein Western Australia, and holds a number of other quality base metal and copper-gold exploration properties located in the Lachlan Fold Beltof New South Wales.

Selected Annual Financial Information

Set forth below is certain selected financial information expressed in Australian dollars in respect of the five most recently completed financialyears of the Company. This audited data is derived from the Company’s full year financial statements which are prepared in accordance withAustralian Accounting Standards, as issued by the Australian Accounting Standards Board and International Financial Reporting Standards(“IFRS”) as issued by the International Accounting Standards Board. All numbers below are in ‘000s except number of shares outstanding andNet Loss per share information.

Financial Year Ended: Working Total Shareholders’ Common Net Gain Net Gain (Loss) perCapital (1) Assets (2) Equity Shares (Loss) Common Share

Outstanding (in dollars)

June 30, 2014 32,915 42,603 41,762 252,985,787 (6,389) (0.025)

June 30, 2013 39,597 48,506 47,702 252,985,787 (10,483) (0.039)

June 30, 2012 43,171 57,910 56,863 252,985,787 (5,356) (0.022)

June 30, 2011 46,973 61,292 60,162 252,985,787 (14,056) (0.055)

June 30, 2010 56,663 75,123 72,730 252,985,787 (7,442) (0.029)

(1) See Capital Resources and Liquidity for a further discussion of working capital.(2) See Critical Accounting Policies and Estimates.

Quarterly Financial Information

Set forth below is certain selected financial information expressed in Australian dollars in respect of the most recently completed quarter ofthe Company. This unaudited data is derived from the Company’s interim financial statements which are prepared in accordance withAustralian Accounting Standards, as issued by the Australian Accounting Standards Board and International Financial Reporting Standards(“IFRS”) as issued by the International Accounting Standards Board. All numbers below are in ‘000s except number of shares outstanding andNet Loss per share information

Quarter Ended: Working Total Shareholders’ Common Net Gain Net Gain (Loss) perCapital (1) Assets (2) Equity Shares (Loss) Common Share

Outstanding (in dollars)

December 31, 2014 28,316 55,560 53,881 360,877,723 (2,036) (0.0055)

September 30, 2014 31,002 56,692 55,532 360,877,723 (1,745) (0.0055)

(1) See Capital Resources and Liquidity for a further discussion of working capital.(2) See Critical Accounting Policies and Estimates.



RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIOD ENDED 31 DECEMBER 2014 (all financial numbers in ‘000s)

The Company is principally involved in the exploration and evaluation of mineral properties. It had no revenues from operations in the lastquarter-year period. Exploration expenditures on mineral properties are expensed as incurred in the Income Statement, unless there is areasonable probability that the mineral property may become a productive mine, in which case the expenditure is capitalised onto the BalanceSheet. During the six month period the Company capitalised $2,080 in exploration expenditure, all of which was incurred on the Woodlawnproperty.

Corporate and administrative expenses are charged to the Income Statement as incurred. Interest income consists only of interest on short-term invested funds. The Company reported a loss from operations in the three and six month period ended 31 December, 2014. Retainedearnings are in a deficit position. The Company has not paid any dividends since inception.

The Company recorded a loss for the half year ended December 31, 2014 of $3,781 ($0.011 per share) compared to a net loss of $2,411 ($0.010per share) for the corresponding period ended December 31, 2013. The Company recorded a loss for the three months ended December 31,2014 of $2,036 ($0.0052 per share) compared to a net loss of $1,388 ($0.0055 per share) for the corresponding period ended December 31,2013.

The Company’s general and administration expenses (including share based payments) of $1,918 in the December 2014 half year comparedwith the $1,270 incurred in the December 2013 half year. The increase in the current period is due to the merger with TriAusMin in the periodwhich has led to a significant increase in business activity.

The Company also recognised an impairment of its “mark to market” investments of $903 for the period, compared to $Nil for thecorresponding period to 31 December 2013.

EXPLORATION EXPENDITURES (all financial numbers in ‘000s)

Expenditures on exploration and evaluation in the three month period ended 31 December 2014 of $2,282 (of which $202 was expensed asincurred) were higher when compared to expenditures in the three month period ended 30 September 2014 of $1,474. Total explorationexpenditure for the six months to 31 December 2014 is $3,756 of which $2,080 has been capitalised onto the Balance Sheet and $1,676 hasbeen expensed as incurred.

As announced in September 2014, the Company has continued its drilling program at Woodlawn. The drilling program will continue throughinto the quarter ended 31 March 2015 and the Company will make further announcements throughout the program.

Exploration expenditure requirements to maintain all the exploration licences in good standing total $3,198 per annum, of which $77 is to bemet by third parties via existing farm-in agreements (Calarie JV with Kimberly Diamonds Ltd).

Below is a summary table of the exploration expenditures by tenement group for the three months ended 31 December 2014. (all numbers in‘000s).

Woodlawn KNP Yerilla Other Other TotalProject Project WA NSW

Drilling $1,016 - - - - $1,016

Other exploration $900 $218 - $30 $118 $1,266

TOTAL $1,916 $218 $- $30 $118 $2,282

Exploration Properties in Australia

The Company’s main exploration properties are located in the Kalgoorlie region of Western Australia and in the Lachlan Fold Belt of New SouthWales. The projects on these land holdings are more fully described in the Company’s Annual Report which is available from the Company onrequest or which may be accessed from the Company’s website, www.heronresouces.com.au.



CAPITAL STOCK AND DEFICIT (all financial numbers in ‘000s)

The authorized capital of the Company consists of an unlimited number of common shares without par value.

At 31 December 2014 the Company had 360,877,723 issued and outstanding common shares, (31 December 2013: 252,985,787).

As at 31 December 2014 there were 16,424,890 stock options outstanding (31 December 2013: 30,418,776), bringing the fully diluted shareposition of the Company to 377,302,613.

The Company’s accumulated deficit at 31 December 2014 is $80,495 compared to $76,714 at 30 June 2014. See “Results of Operations”.

FINANCIAL CONDITION (all financial numbers in ‘000s)

The Company’s total assets at 31 December 2014 increased to $55,560 from $42,603 at 30 June, 2014. This increase is primarily due to theacquisition of TriAusMin for $15,644 in new Heron equity on 5 August 2014.

Assets at 31 December 2014 include cash and cash equivalents of $28,316 (30 June 2014: $32,915). Cash not on account at a bank has beeninvested in bank guaranteed, term deposits that reduce risk.

Cash of $1,978 was spent on exploration and evaluation (including purchase of prospects) during the three month period ended 31 December2014 compared to $1,008 during the corresponding period ended 31 December 2013. This increased outflow was due to the Woodlawn drillingprogram which began in September 2014.

The Company had current liabilities including trade payables and employee provisions of $1,679 at 31 December 2014 ($841 at 30 June 2014).The Company has no off balance sheet financing arrangements or material contingent liabilities or contractual obligations other than thatdisclosed in the interim financial statements for the three month and six month period ended 31 December 2014.

CAPITAL RESOURCES AND LIQUIDITY

The Company’s mineral properties are at the exploration and pre-development stage. At this time the Company has no operating revenue anddoes not anticipate earning any operating profits until the Company is able to place a project into production, or acquire a mining asset withoperating cash flow. Until such time, the Company will be required to raise funds through equity financing, possibly supplemented by theexercise of options and warrants, or by other means in order to continue its exploration and development activities.

In the past, the Company has successfully raised capital through issuance of equity or sale of assets. There can be no assurance that theCompany will be able to raise more capital or obtain adequate financing in the future or that the terms of such financing will be favourable.Failure to raise capital or obtain financing could result in the postponement of further exploration or project development activities. Anyadditional financing or capital raised by the Company could result in substantial dilution to the shareholders of the Company. See “Risk Factorsand Uncertainties”.

TRENDS (all financial numbers in '000's)

Due to the nature of the Company’s projects, it has incurred a history of operating losses. These losses will continue until a profitable projectis developed and operating or a cash generating operating asset is acquired.

The net loss in the three month period ended December 31, 2014, of $2,036 was greater than the loss incurred in the three month period endedDecember 31, 2013 of $1,388, due to increased headcount and operating expenses following the successful merger with TriAusMin on 5August 2014. The Company’s current staff headcount is 21 compared to 8 at the beginning of September quarter. The increase in headcountis due to TriAusMin staff joining Heron and new hires for the Woodlawn drilling program.



CAPITAL MANAGEMENT

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support theacquisition, exploration and development of properties for minerals.

The properties in which the Company currently has an interest are at the exploration stage and as such the Company is dependent on externalfinancing to fund its activities. In order to carry out the planned exploration and pay for administrative costs, the Company will spend itsexisting working capital and raise additional amounts as needed. In some circumstances, the Company may enter into joint ventureagreements whereby, a third party earns an interest in a specific property by incurring an agreed amount of exploration expenditures. TheCompany will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologicalor economic potential and if it has adequate financial resources to do so.

Management reviews its capital management approach on an ongoing basis and believes that, given the relative size of the Company, thisapproach is reasonable.

COMMITMENTS

The Company is required to undertake expenditures of $3,198,000 per year to keep exploration properties in good standing in the normal courseof business. These obligations are subject to renegotiation when application for a mining lease is made and at other times.

The Company is contracted to non-cancellable operating leases in relation to its office premises at Level 1, 37 Ord Street, West Perth and atSuite 702, 191 Clarence Street, Sydney. The lease expires in Perth in June 2016 and in Sydney in September 2016. A performance bond of$46,545 and $12,969 for the Perth and Sydney office respectively has been lodged as surety against performance of the lease.

RELATED PARTY TRANSACTIONS

Transactions between related parties are on normal commercial terms and conditions unless otherwise stated.

During the quarter, the company paid $18,450 for the provision of office accommodation on normal terms and conditions from an entity relatedto Mr. I J Buchhorn.

During the quarter, the company paid $40,321 for the provision of legal services on normal terms and conditions to Allion Legal, of which Mr.C Readhead is a Partner.

CRITICAL ACCOUNTING POLICIES AND ESTIMATESNew Accounting Policies and Accounting Standards and Interpretations issued, but some not yet applicable at December 31, 2014.

The Australian Accounting Standards Board has published various pronouncements that are not mandatory for the 31 December 2014 reportingperiod. The Company has reviewed all these pronouncements and assessed their applicability and the likely impact on the Company’saccounting policies. While several pronouncements do not apply to the Company’s current activities the expected impact of those relevant tothe Company are set out below:

AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (effective from 1January 2015).

AASB 9 Financial Instruments addresses the classification and measurement of financial assets and is not likely to affect the Company’saccounting for its financial assets.

AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materialty and Financial Instruments (effective from1 January 2014)

This standard withdraws the substantive content in AASB 1031 and provides signpost references to materiality in other Australian AccountingStandards and is not like likely to affect the Company.

AASB 2014-1 Amendments to Australian Accounting Standards (effective from 1 July 2014)

AASB 2014-1 makes amendments to particular Australian Accounting Standards to delete their references to AASB 1031 Materiality as eachstandard is amended for another purpose and is not likely to affect the Company.



IFRS 15 Revenue from contracts with customers (effective from 1 January 2017).

IFRS 15 makes changes to revenue recognition requirements and is not likely to affect the Company.

IAS 27 Equity method in separate financial statements (effective from 1 January 2016).

IAS 27 will allow entities to use the equity method to account for its interest in subsidiaries, joint venture and associates in separate financialstatements and is not likely to affect the Company.

The Company continues to assess the impact of these new accounting standards on its consolidated financial statements.

Future Accounting Changes

Other than those noted above, the Company is unaware at this time of any future changes to accounting standards that are contemplated bythe Australian Accounting Standards Board and are relevant to the Company and which might impact future accounting reporting periods.

Summary of Significant Accounting Policies

The following is a summary of significant accounting policies used by the Company in the preparation of its financial statements. For acomplete description of the significant accounting policies used by the Company in the preparation of its financial statements, please reviewthe notes to the June 30, 2014 audited financial statements included in the Company’s Annual Report. This Management’s Discussion andAnalysis should be read in conjunction with the Company’s quarterly financial statements and the notes thereto.

Going concern basis of accounting (all numbers in ‘000s)

The interim financial statements for the three month period ended 31 December 2014 have been prepared on the basis of a Going Concern,notwithstanding the fact that the company incurred a loss for the 3 month period. The Company incurred a loss for the 3 month period aftertax of $2,036 (2013: $1,388) and a net cash out flow from operating and investing activities of $2,686 (2013: out flow $1,026).

The Financial Report has been prepared on the basis of a going concern, as the Directors believe that the Company has adequate funding topay its debts as and when they become due for a period of twelve months from the date of approving this report.

Remuneration of Directors and Key Management Personnel Including Share Based Payments

The cost to the Company of share options granted to Directors and Key Management Personnel is included at fair value as part of the Directors’and Key Management Personnel’s aggregate remuneration in the financial year the options are granted.

The fair value of the share option is calculated using the Black Scholes option pricing model, which takes into account the exercise price, theterm of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option, the current price andexpected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. The costof these options is expensed in the Income Statement on a pro rata basis to the vesting dates. Unvested options are cancelled upontermination of service with the Company.

Income tax

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It iscalculated using the tax rates that have been enacted or are substantially enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet method in respect of temporary differences arising between the tax bases of assets andliabilities and their carrying amounts in the financial statements. No deferred income tax will be recognized from the initial recognition of anasset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculatedat the tax rates that are expected to apply to the period when the asset is realized or liability is settled. Deferred tax is credited in the incomestatement except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly againstequity. Deferred income tax assets are recognized to the extent that there is convincing evidence that it is probable that future tax profits willbe available against which deductible temporary differences can be utilized.

The amount of benefits brought to account or which may be realized in the future is based on the assumption that no adverse change willoccur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable thebenefit to be realized and comply with the conditions of deductibility imposed by the law.

Earnings per share

Basic earnings per share are determined by dividing the operating loss after income tax by the weighted average number of ordinary sharesoutstanding during the period.

Diluted earnings per share adjusts the figures used in determining earnings per share by taking into account options outstanding during thequarter. The diluted earnings per share are capped at the basic earnings per share in circumstances of losses.



Exploration expenditure and mineral leases

Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of interest. These costs areonly carried forward if the rights to the area of interest are current and to the extent that they are expected to be recouped through thesuccessful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of theexistence of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Accumulated costs in relation to an abandoned area are written off in full against the results in the year in which the decision to abandon thearea is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation tothat area of interest.

Restoration, rehabilitation and environmental expenditure

Restoration, rehabilitation and environmental expenditure to be incurred during the production phase of operations is accrued when the needfor such expenditure is established, and then written off as part of the costs of production of the mine property concerned. Significantrestoration, rehabilitation and environmental expenditures to be incurred subsequent to the cessation of production at each mine property areaccrued, in proportion to production, when its extent can be reasonably estimated.

Business undertakings – joint ventures

The Company has certain exploration activities conducted through joint ventures with other parties. Where relevant, the Company’s interestin these joint ventures is shown in the notes to the financial statements under the appropriate heading.

RISK FACTORS AFFECTING FINANCIAL INSTRUMENTS

The Company’s major mineral properties are the KNP project in WA and the Woodlawn and Lewis Ponds Properties in NSW (the "Properties").Unless the Company acquires or develops additional material properties, the Company will be mainly dependent upon its existing Properties.If no additional major mineral properties are acquired by the Company, any adverse development affecting the Company's Properties wouldhave a material adverse effect on the Company’s financial condition and results of operations.

Other risk factors and the impact on the Company's financial instruments are summarized below:

Credit risk

Credit risk is the risk of loss associated with counterparty’s inability to fulfil its payment obligations. The Company's credit risk is primarilyattributable to cash and accounts receivable. Cash consists of cash on hand with reputable financial institutions. Financial instrumentsincluded in accounts receivable consist of sales tax receivable from government authorities in Australia and deposits held with vendors.Management believes that credit risk with respect to financial instruments included in cash and accounts receivable is low.

Liquidity risk (all financial numbers in ‘000s)

The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at 31December 2014, the Company had cash of $28,316 (30 June 2014: $32,915) to settle current liabilities of $1,679 (30 June 2014: $841). Apartfrom provision for employee entitlements (e.g. Annual Leave), most of the Company's financial liabilities have contractual maturities of lessthan 30 days and are subject to normal trade terms.

Market risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodityprices. The Company continues to monitor the long term assets and assesses the value of the asset on a regular basis.

Interest rate risk

The Company has cash balances. The Company's current policy is to invest excess cash in term deposits with banks.

Foreign currency risk

The Company's functional reporting currency is the Australian dollar and major purchases are transacted in Australian dollars. The Companyfunds its exploration and administrative expenses using Australian dollars.

In addition, management believes the foreign currency risk derived from currency conversions related to its operations is negligible andtherefore does not hedge its foreign exchange risk.



Commodity price risk

The Company is exposed to price risk with respect to commodity prices. Commodity price risk is defined as the potential adverse impact onearnings and economic value due to commodity price movements and volatilities. The Company closely monitors commodity prices as it relatesto valuable minerals to determine the appropriate course of action to be taken by the Company. The ability of the Company to develop itsproperties and the future profitability of the Company is directly related to the market price of nickel, zinc, lead and copper and certain othermetals.

Fair value

AIFRS accounting principles require that the Company disclose information about the fair value of its financial assets and liabilities. Fair valueestimates are made at the balance sheet date based on relevant market information and information about the financial instrument. Theseestimates are subjective in nature and involve uncertainties in significant matters of judgment and therefore cannot be determined withprecision. Changes in assumptions could significantly affect these estimates.

The carrying values for short-term investment, sundry receivables and prepaid expenses, subscription receivable, and accounts payable andaccrued liabilities on the balance sheet approximate fair value because of the limited term of these instruments.

The Company has designated its cash as held-for-trading, which is measured at fair value. Accounts receivable are classified as loans andreceivables, which are measured at amortized cost. Accounts payable and accrued liabilities are classified as other financial liabilities, whichare measured at amortized cost.

Sensitivity analysis

Based on management's knowledge and experience of the financial markets, the Company believes the following movements are "reasonablypossible" over the next year:

(i) Interest rate risk is immaterial.

(ii) The Company holds all of its cash in low risk, secure Australian dollar term deposits at Australian banks. Foreign exchange risk relatedto required payments is perceived as negligible.

(iii) Commodity price risk could adversely affect the Company. In particular, the Company’s future profitability and viability from mineralexploration depends upon the world market price of valuable minerals. Commodity prices have fluctuated significantly in recent years.There is no assurance that, even as commercial quantities of valuable minerals may be produced in the future, a profitable market willexist for them.

As of 31 December 2014, the Company is not a producer of valuable minerals. As a result, commodity price risk may affect the completion offuture equity transactions such as equity offerings and the exercise of stock options and warrants. This may also affect the Company's liquidityand its ability to meet its ongoing obligations.

RISK FACTORS AND UNCERTAINTIES

The Company is in the business of acquiring, exploring and developing mineral properties and is exposed to a number of risks and uncertaintiesthat are common to other exploration companies in the same business. The industry is capital intensive at all stages and must rely on equityfinancing to fund exploration and development activities.

The ability of the Company to realize and profit from a property development is dependent upon its ability to define and delineate an ore body,to finance development costs, adhere to government and environmental regulations, and/or be able to realize the costs incurred on dispositionof a property.

The future prospects of the Company are subject to a variety of risks that may cause actual results to differ materially from projected outcomes.Factors that could cause such differences include: world commodities markets, foreign exchange markets, equity markets, access to sufficientworking capital, the ability to attract mining partners, the loss of or inability to hire key personnel, as well as government and environmentalrestrictions. Most of these factors are beyond the control of the Company which consequently cannot guarantee future results, levels ofactivity or ensure that a mineral discovery can be developed into a profitable mining operation. In addition, prices for the commoditiescontained in the Company’s mineral resources at its exploration properties have fluctuated significantly over the last few years and maycontinue to do so. Such volatility may affect the timing and magnitude of funds which the Company may seek to raise to support furtherexploration and development.

The Company has taken steps to verify the title to its mineral properties, in accordance with industry standards for the current stage ofexploration of such properties but these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prioragreements or transfers and title may be affected by undetected defects.



ADDITIONAL INFORMATION

Additional information relating to the Company can be found at www.heronresources.com.au or on the SEDAR website at www.sedar.com,or on the website of the ASX, www.asx.com.au.

APPROVAL

The Board of Directors of Heron Resources Limited has approved the disclosure contained in this Management Discussion and Analysis dated12 February, 2015.

CORPORATE DIRECTORY

DIRECTORSCraig Readhead (Chair)Stephen DennisIan BuchhornWayne TaylorBorden Putnam III

COMPANY SECRETARYSimon Smith

REGISTERED AND PERTH MANAGEMENT OFFICELevel 1, 37 Ord Street West Perth 6005 Western AustraliaTelephone: +61 8 9215 4444Facsimile: +61 8 9215 4490Sydney Study OfficeSuite 702, 191 Clarence StreetSydney 2000 New South Wales Telephone: +61 2 9299 7800 Facsimile: +61 2 9299 7500

Email: [email protected]: www.heronresources.com.au

Canadian contactMs Carolyn MuirTelephone +1 905 727 8688

SHARE REGISTRYSecurity Transfer Registrars Pty Ltd770 Canning HighwayApplecross 6153 Western AustraliaTelephone: +61 8 9315 2333TMX Equity Transfer Services Inc.200 University Avenue, Suite 400Toronto, Ontario M5H 4H1Tel: (416) 361-0152

The company is listed on both the Australian Stock Exchange (ASX) under the symbol HRR and the Toronto StockExchange (TSX) under the symbol HER

AUDITORButler Settineri (Audit) Pty LtdUnit 16, 1st Floor, 100 Railway RoadSubiaco, WA, 6008



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