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Accounts for the period ended 30 June 2009

24th Sep 2009 16:15

RNS Number : 6337Z

Templar Minerals Limited

24 September 2009

FOR IMMEDIATE RELEASE 24 September 2009

Templar Minerals Limited ("Templar" or "the Company")

Report and Accounts for the period ended 30 June 2009

The Company today announces its audited results for the period ended 30 June 2009. The Report and Accounts are being posted to shareholders today, and will be available on the Company's web-site www.templarminerals.com

Chairman's Statement and Operations Review

Brazil

In December 2008, the Company announced that its 100% subsidiary Paranaiba Minerals ltd ("Paranaiba") had been granted for nil consideration an option to earn-in up to 77% interest in the Rio Paranaiba Iron Ore Project, which comprises some 14,000 hectares of mining claims and applications in the Minas Gerais State of Brazil ("The Project").

Paranaiba has the sole and exclusive right and option to earn up to a 77% undivided interest in the Project in consideration for expenditures of up to C$800,000 over a two year period.

An initial 50% interest in the Project ("Phase 1") has already been earned by the Company by incurring a minimum expenditure of C$200,000 within 180 days after completion of an initial review period in January 2009 by the Company of all available project related data. Paranaiba and the Company's joint venture partner are currently completing all related documentation and a definitive exploration agreement.

Following completion of Phase 1, the Company now has the right to increase its interest in the Project by a further 27% (Paranaiba's interest in the Project going from 50% to 77%) by incurring a further minimum expenditures of C$600,000 before 15 January 2011.

The Project represents a new iron ore discovery in the Brazilian State of Minas Gerais. It is located 210km from

the city of Divinopolis, a key manufacturing hub and steel production centre. The Project is 90km on paved road from the township of Patos De Minas and has excellent infrastructure including power and water access.

Initial drilling and exploration results at the 390 square kilometre Rio Paranaiba project in the Brazilian State of Minas Gerais have been encouraging.

The Company's Consultant, Mr L.D.S. Winter, P.Geo. reports that:

The 390 square kilometre Rio Paranaiba Project Area in Minas Gerais, Brazil is within the Tocantins Geotectonic Province of the Brasilia Fold Belt. This area is the type locality for the Araxa, Ibian and Canastra Groups of Neo Proterozoic age and they are now present as three stacked thrust sheets. The Lower Thrust Sheet hosts the Canastra Group metasedimentary sequence which in turn contains the iron-bearing units of interest. The iron-rich unit (or hematite-rich unit) is a hematite-rich phyllite which in turn rests on a quartzite horizon.

The work to date has indicated the presence of hematite-rich sediments over an east-west distance of approximately 40 km, a significant distance, and with thicknesses up to at least 40 m in surface exposures in a newly identified area.

Sampling by the Company at 20 locations,, within the Project area have been analyzed at the SGS Geosol Laboratory in Belo Horizonte. These samples gave iron ("Fe") grades in the range from 17% to over 65% with an average of 43% with low phosphorous grades in the 0.05% range. Thirty-two samples taken by A.L. Fleming averaged 65.2% Fe, 0.07% Phosphorous and Sulphur.

A preliminary drilling program has been carried out through late June and July 2009. A number of significant intercepts have already been recorded, with drill hole Number 8 at the Corral da Estrada prospect intersecting a 6 metre interval between 16 metres and 22 metres of hematite-rich sediment . Two further holes at the Perfis prospect, Numbers 4 and 7 have also intersected intervals of hematite-rich sediments. Hole Number 4 has intersected an 8 metre interval between 42 metres and 50 metres and hole Number 7 intersected a 17 metre interval, from 1.5 metres to 18.5 metres, of hematite-rich units. Drilling will continue based on the positive results to date.

Three surface samples also showed enrichment in silver, cobalt, copper and zinc with one sample FRP144 reporting 14.8 parts per million (grams per tonne) of Silver, 0.3% Cobalt, 0.08% Copper and 0.09% Zinc. Further work is planned in this area to ascertain the significance of this anomaly.

Drilling to date has indicated that the iron rich mineralization sits within a structurally complex environment and significant faulting is evident in the areas drilled and appears to be disrupting some of the continuity of the hematite-rich sediments. It is considered that the objective of additional work is to determine the distribution of the iron-rich sediments and to clarify the structural situation.

The iron-rich sediments appear to be distributed over a very large area which is mainly soil, laterite and vegetation covered. To "look through" this cover, an airbourne and ground based magnetometer surveys are being commissioned to cover the high priority areas.

Within the Rio Paranaiba Project area of influence and approximately 60 km north of Rio Paranaiba, Templar Minerals Ltd joint venture partner holds 4 mining concessions covering approximately 80 square km. Within these concessions, a moderately hard hematite-rich sedimentary unit in the order of 25 m thick has been found to outcrop over a strike length of about 3 km.

'The initial results of the exploration program at Rio Parnaiba has confirmed the existence of hematite-rich iron mineralization below surface. The potential strike length of the iron rich mineralization has now been extended to some 40 kilometres and work programmes going forward will attempt to prioritise exploration targets over this significant distance..'

Georgia

In September 2007, Templar Minerals paid US$2 million and issued 25 million shares in the Company in order to acquire from Gatward Limited a 90% interest in a BVI registered company Goldencrest Enterprises Ltd ("Goldencrest") whose main asset was the Adjara Gold and Base Metals Project in Georgia.

The Adjara Gold and Base Metals Project, is a large and relatively unexplored brown- and greenfield target in an area of historical gold and base metal mining. The project contains numerous exploration adits and a historical sampling database, and incorporates a total licence area of 100.4 square kilometres in a large unexplored region in the Caucasus Mountains of south west Georgia.

Initial exploration sample results at Adjaria returned very encouraging gold values and together with the substantial body of information available from the Soviet era it was clear that the Project had the potential to become a significant minable gold resource.

Results obtained to date at the Vaio deposit (one of nine target orebodies) had been especially encouraging and gave us confidence in the reliability of the Non-JORC compliant Russian resource estimates derived from work previously undertaken, which include significant reserves of gold, silver, lead, copper and zinc.

In August 2008, the Company suspended operations at the Adjara Project due to the conflict between Russia and Georgia.

In November 2008, following careful consideration of the recent instability in Georgia and the current economic conditions both in Georgia and globally, the Directors decided that continuation of the Adjara Project would not represent best use of available Company resources. The Directors accordingly fully provided for all of the acquisition and development costs capitalised on the Adjara Project which amounted to approximately $7.3 million.

Arrangements to dispose of the Company's interest in the Adjara Project were made in late November 2008, which resulted in the Company agreeing to sell its 90% holding in Goldencrest to the Georgian based minority shareholders. The Company has thereby now fully relinquished all rights relating to Goldencrest and the Adjara Project.

Fiji

As previously announced in the Company's 2008 Annual report, the Company acquired in October 2007, 285 million shares in Vatukoula Gold Mines plc ("VGM"). Subsequently in March 2008, the Company entered into arrangements to acquire a further 143 million shares in VGM from Viso Gero Global Inc ("VGG"). These arrangements to acquire the additional shares were not completed and negotiations with VGG resulted in the Company not settling the arrangement to acquire the additional shares by 31 March 2009. Under a Settlement Agreement between the Company and VGG, the Company agreed to transfer 200 million shares of its holding in VGM to VGG as full and final settlement of all outstanding obligations between the two parties. In addition the Company also made payments to VGG for deferment costs of US$1.64 million. This settlement agreed by Company of approximately $3.6 million avoided a total claim of approximately $15 million as per the original agreement with VGG.

The Company continues to maintain a holding of 60.125 million shares in VGM. The Directors are pleased with the progress being made at the Vatukoula Gold Mine. The mine is positioning itself to achieve improved gold production rates over the coming year. In addition the recommencement of exploration drilling at the mine and surrounding areas will focus on increasing reserves and resources for VGM.

Outlook

A commitment to growth remains at the heart of our strategy to create value and your board continues to review potential investment and acquisition opportunities. As no substantial acquisition (as determined under the AIM

Rules for companies) has been made since Templar Minerals was admitted to AIM, your board will seek consent of the shareholders at the next annual general meeting for the renewal of its investment strategy as set out in its admission document.

Enquiries:

Templar Minerals Limited

David Lenigas

Tel: +44 (0)20 7016 5100

Beaumont Cornish Limited

Roland Cornish/Rosalind Hill Abrahams

Tel: +44(0)20 7628 3396

Competent Person

The technical information contained in this document has been reviewed and approved by Mr Stewart Winter, Consulting Geologist, B.A.Sc., M.Sc., P.Geo. He is the Qualified Person who has reviewed the field data. Mr. Winter has worked for over 50 years as a geologist and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this document.

Group Income Statement for the period ended 30 June 2009
		Discontinuing Operations	Continuing Operations	Total for the period 1 April 2008 to 30 June 2009	Period 2 April 2007 to 31 March 2008
	Notes	$ 000's	$ 000's	$ 000's	$ 000's

Revenue		-	-	-	-

Administrative expenses		-	(534)	(534)	(1,776)
Impairment charge	12	(7,314)	-	(7,314)	-
Share of associates results	14	-	-	-	(232)
Share options expensed	8,20	-	20	20	(487)
Group operating loss	3	(7,314)	(514)	(7,828)	(2,495)

Loss on sale of investments		-	(3,611)	(3,611)	-
Settlement cost - VGG	5	-	(3,602)	(3,602)	-
Interest receivable	10	-	20	20	541
Loss before taxation	2	(7,314)	(7,707)	(15,021)	(1,954)

Income tax expense	6			-	-
Loss for the financial period				(15,021)	(1,954)

Retained loss for the period attributable to:
Equity holders of the parent Company				(15,021)	(1,896)
Minority interest				-	(58)

Loss per share (US cents)
Basic	9			(3.02)	(0.46)
Diluted	9			(3.02)	(0.46)

Company Income Statement for the period ended 30 June 2009
		Period 1 April 2008 to 30 June 2009	Period 2 April 2007 to 31 March 2008
	Notes	$ 000's	$ 000's

Revenue		-	-

Administrative expenses		(534)	(1,262)
Impairment charge	12	(6,523)	-
Share of associates results	14	-	(232)
Share options expensed	8, 20	20	(487)
Group operating loss	3	(7,037)	(1,981)

Loss on sale of investments		(3,611)	-
Settlement cost - VGG	5	(3,602)	-
Interest receivable	10	20	608
Loss before taxation	2	(14,230)	(1,373)

Income tax expense	6	-	-
Loss for the financial period		(14,230)	(1,373)

Group Balance Sheet as at 30 June 2009
		30 June 2009		31 March 2008
	Note	$ 000's	$ 000's	$ 000's	$ 000's
ASSETS
Non-current assets
Intangible assets	11	699		5,242
Tangible assets	13	-		77
Interest in associates	14	-		8,900
Total non-current assets			699		14,219

Current assets
Trade and other receivables	17	111		1,805
Available for sale investments	16	993		-
Cash and cash equivalents		487		2,325
Total current assets			1,591		4,130
TOTAL ASSETS			2,290		18,349

LIABILITIES
Current liabilities
Trade and other payables	18	(57)		(298)
TOTAL LIABILITIES			(57)		(298)
NET ASSETS			2,233		18,051

EQUITY
Ordinary shares	19	-		-
Share premium		18,024		19,913
Share based payments reserve	20	381		484
Available for sale investment reserve		(566)		-
Foreign exchange reserve		1,311		(50)
Retained earnings		(16,917)		(1,896)
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT			2,233		18,451
Minority interest			-		(400)
TOTAL EQUITY			2,233		18,051

Company Balance Sheet as at 30 June 2009
		30 June 2009		31 March 2008
	Notes	$ 000's	$ 000's	$ 000's	$ 000's
ASSETS
Non-current assets
Investment in subsidiaries	15	3		2
Interest in associates	14	-		8,900
Trade and other receivables	17	699		6,529
Total non-current assets			702		15,431

Current assets
Trade and other receivables	17	111		1,604
Available for sale investments	16	993		-
Cash and cash equivalents		487		2,247
Total Current Assets			1,591		3,851
TOTAL ASSETS			2,293		19,282

LIABILITIES
Current Liabilities
Trade and other payables	18	(57)		(251)
TOTAL LIABILITIES			(57)		(251)
NET ASSETS			2,236		19,031

EQUITY
Ordinary shares	19	-		-
Share premium		18,024		19,913
Share based payments reserve	20	381		484
Available for sale investment reserve		(566)		-
Foreign exchange reserve		-		7
Retained earnings		(15,603)		(1,373)

TOTAL EQUITY			2,236		19,031

Group Statement of Changes in Equity for the period ended 30 June 2009

	Called up share capital	Share premium reserve		Available for sale investment reserve	Foreign currency translation reserve	Share based payment reserve	Retained earnings	Total equity	Minority interest	Total equity
Group	$ 000's	$ 000's		$ 000's	$ 000's	$ 000's	$ 000's	$ 000's	$ 000's	$ 000's
As at 2 April 2007	-	-		-	-	-	-	-	-
Loss for the period	-	-		-	-	-	(1,896)	(1,896)	(58)	(1,954)
Currency translation differences	-	-		-	(50)	-	-	(50)	-	(50)
Total recognised income and expense	-	-		-	(50)	-	(1,896)	(1,946)	(58)	(2,004)

Share capital issued	-	21,102		-	-	-	-	21,102	-	21,102
Cost of share issue	-	(1,189)		-	-	-	-	(1,189)	-	(1,189)
Acquisition of subsidiary	-	-		-	-	-	-	-	(342)	(342)
Share based payments	-	-		-	-	484	-	484	-	484

As at 31 March 2008	-	19,913		-	(50)	484	(1,896)	18,451	(400)	18,051
Loss for the period	-	-	-		-	-	(15,021)	(15,021)	-	(15,021)
Currency translation differences	-	-	-		1,361	-	-	1,361	-	1,361
Total recognised income and expense	-	-	-		1,361	-	(15,021)	(13,660)	-	(13,660)
Loss on market value of available for sale investments	-	-	(566)		-	-	-	(566)	-	(566)
Share capital issued	-	1,686	-		-	-	-	1,686	-	1,686
Cost of share issue	-	(126)	-		-	-	-	(126)	-	(126)
Disposal of subsidiary	-	-	-		-	-	-	-	400	400
Share based payments	-	-	-		-	(20)	-	(20)	-	(20)
Currency translation differences	-	(3,449)	-		-	(83)	-	(3,532)	-	(3,532)
As at 30 June 2009	-	18,024	(566)		1,311	381	(16,917)	2,233	-	2,233

Company Statement of Changes in Equity continued for the period ended 30 June 2009

	Called up share capital	Share premium reserve	Available for sale investment reserve	Foreign exchange reserve	Share based payment reserve	Retained earnings	Total equity
Company	$ 000's	$ 000's	$ 000's	$ 000's	$ 000's	$ 000's	$ 000's
As at 2 April 2007	-	-	-	-	-	-	-
Loss for the year	-	-	-	-	-	(1,373)	(1,373)
Currency translation differences	-	-	-	7	-	-	7
Total recognised income and expense	-	-	-	7	-	(1,373)	(1,366)

Share capital issued	-	21,102	-	-	-	-	21,102
Cost of share issue	-	(1,189)	-	-	-	-	(1,189)
Share based payments	-	-	-	-	484	-	484

As at 31 March 2008	-	19,913	-	7	484	(1,373)	19,031

Loss for the period	-	-	-	-	-	(14,230)	(14,230)
Currency translation differences	-	-	-	(7)	-	-	(7)
Total recognised income and expense	-	-	-	(7)	-	(14,230)	(14,237)

Loss on market value of available for sale investments	-	-	(566)	-	-	-	(566)
Share capital issued	-	1,686	-	-	-	-	1,686
Cost of share issue	-	(126)	-	-	-	-	(126)
Share based payments	-	-	-	-	(20)	-	(20)
Currency translation differences		(3,449)	-	-	(83)	-	(3,532)
As at 30 June 2009	-	18,024	(566)	-	381	(15,603)	2,236

Group Cash Flow Statement for the period ended 30 June 2009


		For the period ended 30 June 2009	For the period ended 31 March 2008
	Notes		$ 000's
Cash flows from operating activities
Operating loss		(7,828)	(2,495)
Decrease / (increase) in trade and other receivables		1,694	(1,805)
(Decrease) / increase in trade and other payables		(241)	298
Foreign exchange translation		(88)	(22)
Share of associates results		-	232
Share options expensed		(20)	487
Impairment charge		7,314	-
Depreciation		-	36
Net cash inflow/(outflow) from operating activities		831	(3,269)

Cash flows from investing activities
Interest received		20	541
Investment in associate		-	(9,132)
Payments to acquire intangible assets		(2,771)	(2,971)
Payments to acquire tangible assets		-	(113)
Payments to VGG		(1,644)	-
Proceeds from sale of investments		370	-
Net cash outflow from investing activities		(4,025)	(11,675)

Acquisitions and disposals
Payments to acquire subsidiaries		-	(2)
Net cash outflow from acquisitions and disposals		-	(2)

Cash flows from financing activities
Issue of ordinary share capital		1,686	18,430
Share issue costs		(126)	(1,159)
Net cash inflow from financing activities		1,560	17,271

Net (decrease) / increase in cash and cash equivalents		(1,634)	2,325
Foreign exchange differences on translation		(204)	-
Cash and cash equivalents at beginning of period		2,325	-
Cash and cash equivalents at end of period	21	487	2,325

Company Cash Flow Statement for the period ended 30 June 2009

		For the period ended 30 June 2009	For the period ended 31 March 2008
	Notes		$ 000's
Cash flows from operating activities
Operating loss		(7,037)	(1,981)
Decrease / (increase) in trade and other receivables		1,493	(1,604)
(Decrease) / increase in trade and other payables		(194)	251
Foreign exchange translation		(88)	-
Share of associates results		-	232
Share options expensed		(20)	487
Impairment charge		6,523	-
Net cash inflow/(outflow) from operating activities		677	(2,615)

Cash flows from investing activities
Interest received		20	608
Investment in associate		-	(9,132)
Loans to subsidiaries		(2,771)	(3,883)
Payments to VGG		(1,644)	-
Proceeds from sale of investments		370	-
Net cash outflow from investing activities		(4,025)	(12,407)

Acquisitions and disposals
Payments to acquire subsidiaries		(1)	(2)
Net cash outflow from acquisitions and disposals		(1)	(2)

Cash flows from financing activities
Issue of ordinary share capital		1,686	18,430
Share issue costs		(126)	(1,159)
Net cash inflow from financing activities		1,560	17,271

Net increase in cash and cash equivalents		(1,789)	2,247
Foreign exchange differences on translation		29	-
Cash and cash equivalents at beginning of period		2,247	-
Cash and cash equivalents at end of period	21	487	2,247

Notes to the Financial Statements for the period ended 30 June 2009


2	Revenue and segmental analysis
	The Group has not commenced production and therefore recorded no revenue.

	The analysis of the operating loss before taxation and the net assets employed by geographical segment of operations is shown below;

	By geographical area
	2009	UK/BVI	Georgia	Total
		$ 000's	$ 000's	$ 000's
	Result
	Operating loss	(514)	(7,314)	(7,828)
	Loss on sale of investments	(3,611)	-	(3,611)
	Settlement cost - VGG	(3,602)	-	(3,602)
	Investment revenue	20	-	20
	Loss before & after taxation			(15,021)

	Other information
	Depreciation and impairment	-	(7,314)	(7,314)
	Capital additions	699	2,072	2,771

	Assets
	Segment assets	1,692	-	1,692
	Financial assets	111	-	111
	Cash			487
	Consolidated total assets			2,290
	Liabilities
	Segment liabilities	-	-	-
	Financial liabilities	(57)	-	(57)
	Consolidated total liabilities			(57)



	2008	UK/BVI	Georgia	Total
		$ 000's	$ 000's	$ 000's
	Result
	Operating loss	(1,983)	(512)	(2,495)
	Investment revenue	541	-	541
	Loss before & after taxation			(1,954)

	Other information
	Depreciation and impairment	-	36	36
	Capital additions	-	5,355	5,355

	Assets
	Segment assets	8,900	5,319	14,219
	Financial assets	1,604	201	1,805
	Cash			2,325
	Consolidated total assets			18,349
	Liabilities
	Segment liabilities	-	-	-
	Financial liabilities	(252)	(46)	(298)
	Consolidated total liabilities			(298)




3	Operating loss
		2009	2008
	Operating loss is arrived at after charging:	$ 000's	$ 000's

	Auditors' remuneration - audit *	33	84
	Auditors' remuneration - non audit services (accounting advice)	-	6
	Directors' emoluments - fees and salaries	122	354
	Directors' emoluments - share based payments	46	475
	Foreign exchange gain	(88)	(22)
	Depreciation	-	36

	*Auditors remuneration for 2008 for audit services above includes $24,000 charges by PWC (Georgia), relating to the audit of the subsidiary companies.


4	Employee information
		2009	2008
	Staff Costs comprised:	$ 000's	$ 000's
	Wages and salaries	-	461

		Number	Number
	Administration	-	5

5	Viso Gero Global Inc ("VGG") Settlement
	In March 2008, the Company had entered into arrangements to acquire 143 million shares in Vatukoula Gold Mines plc ("VGM") from VGG. These arrangements to acquire the shares were not completed and negotiations with VGG resulted in the Company not settling the arrangement to acquire the additional shares by 31 March 2009. Under a Settlement Agreement between the Company and VGG, the Company agreed to transfer 200 million shares from its holding in VGM to VGG as full and final settlement of all outstanding obligations between the two parties. In addition the Company also made payments to VGG for deferment costs of US $1.64million

	The settlement agreed by the Company of $3.6 million below avoided a total claim of approximately $15 million as per the original agreement with VGG.

			$ 000's
	Transfer of 200 million VGM shares at market value		1,957
	Payment of Deferment costs		1,645
	Total Settlement		3,602

6	Taxation
		2009	2008
	Analysis of charge in period	$ 000's	$ 000's
	Tax on ordinary activities	-	-

	No taxation has been provided due to losses in the year.

	The British Virgin Islands under the IBC imposes no corporate taxes or capital gains. However the Company as a group may be liable for taxes in the jurisdictions where it is developing mining properties.

	No deferred tax asset has been recognised because there is insufficient evidence of the timing of suitable future profits against which they can be recovered.

7	Dividends
	No dividends were paid or proposed by the Directors.




8	Directors' emoluments
				2009	2008
				$ 000's	$ 000's
	Directors' remuneration			168	829

	2009	Directors Fees	Consultancy Fees	Shares/	Total
				Options
		$ 000's	$ 000's	$ 000's	$ 000's
	Executive Directors
	David Lenigas	67	-	-	67
	Charles Wood	17	-	23	40
	Gordon Cassidy*	7	-	-	7
	Paul Courtage (2)*	7	-	-	7

	Non-Executive Directors
	Alastair Clayton	17	-	23	40
	Neil Herbert (3)*	-	-	-	-
	John Stalker (1)*	7	-	-	7
	Graham Mascall *	-	-	-	-
		122	-	46	168

	(1): Consulting services provided by Promaco Ltd. In addition $78,000 was paid to this company which was capitalised as exploration costs.

	(2) Consulting services provided by Paul Courtage. In addition $51,000 was paid to Mr Courtnage which was capitalised as exploration costs.

	(3) Consulting services for $2,000 was paid to Mr Neil Herbert during the period which was capitalised as exploration costs.

	(*) These Directors were not employed during the full financial period.
	No pension benefits are provided for any Director.

	2008	Directors Fees	Consultancy Fees	Shares/	Total
				Options
		$ 000's	$ 000's	$ 000's	$ 000's
	Executive Directors
	David Lenigas	20	-	72	92
	Gordon Cassidy (#)	8	5	7	20
	Paul Courtage (#)	28	32	7	67

	Non-Executive Directors
	Neil Herbert	20	68	117	205
	John Stalker (*)	20	127	117	264
	Graham Mascall	20	-	83	103
	Guy Elliott (#)	6	-	72	78
		122	232	475	829

	(*): Consulting services provided by Promaco Ltd.

	(#): These Directors were not employed during the full financial year.
	No pension benefits are provided for any Director.




9	Loss per share
	The Loss for the period attributed to shareholders is $15.021 million (2008:$1.896 million).

	This is divided by the weighted average number of Ordinary shares outstanding calculated to be 496.5 million (2008: 409.3 million) to give a basic loss per share of 3.02 cents (2008: 0.46 cents).

	As inclusion of the potential Ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive, as such, a diluted earnings per share is not included.

10	Finance revenue
		2009	2008
		$ 000's	$ 000's
	Bank interest receivable	20	541

11	Intangible assets
	Group		$ 000's

	Cost
	At 1 April 2008		5,242
	Additions		2,771
	Disposal		(7,314)
	As at 30 June 2009		699

	Impairment
	At 1 April 2008		-
	Impairment charge		7,314
	Elimination on disposal		(7,314)
	At 30 June 2009		-

	Net book value
	At 31 March 2008		5,242
	At 30 June 2009		699

		2009	2008
	The cost is analysed as follows;
		$ 000's	$ 000's
	Deferred exploration expenditure - Georgia	-	236
	Mining licences - Georgia	-	5,006
	Deferred exploration expenditure - Brazil	699	-
		699	5,242
	Impairment Review
	At 30 June 2009, the Directors have carried out an impairment review and concluded no further impairment provision is currently required.




12	Impairment charge - Georgia Project
	During the period, the Directors impaired the value of the Group's investment in the Adjara Project in Georgia which was held by Goldencrest Enterprises Ltd, a BVI registered company owned 90% by the Group. The Adjara Project covered a licence area of approximately 104km2 in the Caucasus Mountains of south west Georgia, encompassing several known mineralised polymetallic vein occurrences identified and developed during the Soviet era. While encouraging results were obtained during recent exploration phase work, all work on the Adjara Project was suspended in August 2008 due to the conflict between Russia and Georgia. Following careful consideration of the recent instability in Georgia and current economic conditions both in Georgia and globally, the Directors decided in November 2008 that continuation of the Adjara Project would not represent best use of available Company resources. The Directors accordingly fully provided for all of the acquisition and development costs capitalised on the Adjara Project which amounted to approximately $7.3 million.

13	Tangible assets
	Group

		Property, plant & equipment	Total
		$ 000's	$ 000's
	Cost
	As at 1 April 2008	113	113
	Additions	-	-
	Disposals	(113)	(113)
	As at 30 June 2009	-	-

	Depreciation and Impairment
	As at 1 April 2008	36	36
	Depreciation charge for the period	-	-
	Impairment charge for the period	77	77
	Elimination on disposal	(113)	(113)
	As at 30 June 2009	-	-

	Net Book Value
	As at 31 March 2008	77	77
	As at 30 June 2009	-	-

	Impairment Review
	At 30 June 2009, the Directors have carried out an impairment review and concluded no further impairment charge was required.

14	Interest in associates
			$ 000's
	Group and Company
	At 1 April 2008		8,900
	Transfer to available for sale investments		(8,900)
	Share of associates loss for the period		-
	As at 30 June 2009		-

	On 1 April 2008, Vatukoula Gold Mines plc announced further issue of shares which resulted in the Group's holding decreasing to 16.91% and hence no longer deemed to be an associate and accounted for as an available for sale investment.




15	Investment in subsidiaries

	Shares in Group undertakings				$ 000's
	Company
	Cost
	At 1 April 2008				2
	Additions				1
	As at 30 June 2009				3

	At 30 June 2009 the parent company of the Group holds more than 20% of the share capital of the following subsidiary companies:
	Company	Country of Registration	Proportion held	Nature of business
	Direct
	Templar Georgia Ltd	BVI	100%	Holding Company
	Paranaiba Minerals Ltd	BVI	100%	Holding Company

16	Available for sale investments

	Group and Company				$ 000's
	At 1 April 2008				-
	Transfer from interest in associate				8,900
	VGG settlement - at cost				(5,263)
	Sales during the period				(653)
	Currency translation differences				(1,425)
	Loss in market value of investments				(566)
	As at 30 June 2009				993

	Available for sale investments includes only Listed Equity Securities (UK) in VGM.

17	Trade and other receivables
		2009		2008
		Group	Company	Group	Company
		$ 000's	$ 000's	$ 000's	$ 000's
	Current trade and other receivables
	Other debtors	54	54	1,793	1,595
	Prepayments	57	57	12	9
	Total	111	111	1,805	1,604

	Non Current trade and other receivables

	Loans due from subsidiaries	-	699	-	6,529

	The loans from subsidiaries are interest free and have no fixed repayment date.

18	Trade and other payables
		2009		2008
		Group	Company	Group	Company
		$ 000's	$ 000's	$ 000's	$ 000's
	Current trade and other payables:
	Accruals	57	57	298	251




19	Share capital

	Authorised					$ 000's
	Unlimited Ordinary shares of no par value					-

	Called up, allotted, issued and fully paid				Number of shares	Nominal value
						$ 000's
	Incorporation				1	-
	20 April 2007 for cash at 0.0437p per share				239,999,999	-
	4 May 2007 for cash at 5p per share				182,750,000	-
	11 May 2007 for non-cash consideration at 5p per share				300,000	-
	7 September 2007 for non-cash consideration at 5.3p per share				25,000,000	-
	21 November 2008 for cash at 0.3p per share				100,000,000	-
	28 May 2009 for cash at 2p per share				35,000,000	-
	As at 30 June 2009				583,050,000	-

	Total share options in issue
	During the period ended 30 June 2009, the Company granted 44.8 million options over ordinary shares. (2008: 43.45 million)

	As at 30 June 2009, the unexercised options in issue were;

	Exercise Price	Vesting Date	Expiry Date	Options in Issue
				30 June 2009
	5p	-	04-May-12	10,000,000
	1.7p	-	22-Apr-19	16,800,000
	1.7p	22-Apr-10	22-Apr-19	16,800,000
	2.35p	-	04-Jun-19	5,600,000
	2.35p	04-Apr-10	04-Jun-19	5,600,000
				54,800,000

	No options or warrants lapsed or were exercised during the period to 30 June 2009 (2008: nil). 33.45 million options were cancelled during the period to 30 June 2009 (2008:nil).

20	Share Based Payments
	Under IFRS 2 'Share Based Payments', the Company determines the fair value of options issued to Directors and Employees as remuneration and recognises the amount as an expense in the income statement with a corresponding increase in equity.
	Name	Date Granted	Date Vested	Number	Exercise Price (pence)	Expiry Date
	David Lenigas	04-May-07	04-May-07	2,000,000	5	04-May-12
	John Stalker	04-May-07	04-May-07	2,000,000	5	04-May-12
	Neil Herbert	04-May-07	04-May-07	2,000,000	5	04-May-12
	Guy Elliot	04-May-07	04-May-07	2,000,000	5	04-May-12
	Graham Mascall	04-May-07	04-May-07	2,000,000	5	04-May-12
	Alastair Clayton	22-Apr-09	22-Apr-09	5,600,000	1.7	22-Apr-19
	Alastair Clayton	22-Apr-09	22-Apr-10	5,600,000	1.7	22-Apr-19
	Charles Wood	22-Apr-09	22-Apr-09	5,600,000	1.7	22-Apr-19
	Charles Wood	22-Apr-09	22-Apr-10	5,600,000	1.7	22-Apr-19
	Employees & Consultants	22-Apr-09	22-Apr-09	5,600,000	1.7	22-Apr-19
	Employees & Consultants	22-Apr-09	22-Apr-10	5,600,000	1.7	22-Apr-19
	Employees & Consultants	08-Jun-09	08-Jun-09	5,600,000	2.35	08-Jun-19
	Employees & Consultants	08-Jun-09	08-Jun-10	5,600,000	2.35	08-Jun-19
	Totals			54,800,000




20	Share Based Payments (continued)
	The fair value of the options at grant date has been calculated as follows;
	·; Options granted 4 May 2007, 3.6 pence per share
	·; Options granted 22 April 2009, 1.46 pence per share
	·; Options granted 4 June 2009, 1.89 pence per share

	The fair value of the options granted during the period ended 30 June 2009 amounted to $84,009 (2008:$484,000), and the fair value of the cancelled options was $104,852, giving a net credit to the income statement of $20,843.. The assessed fair value at grant date is determined using the Black-Scholes Model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

	The following table lists the inputs to the models used for the period ended 30 June 2009:
		8 June 2009 issue	22 April 2009 issue	4 May 2007 issue
	Dividend Yield (%)	-	-	-
	Expected Volatility (%)	60.0	60.0	59.4
	Risk-free interest rate (%)	0.25	0.25	4.8
	Share price at grant date (pence)	2.75	2.10	6.00
	The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may, not necessarily be the actual outcome.

21	Analysis of changes in net funds
	Group
			2009	2008
			$ 000's	$ 000's
	Balance at beginning of period		2,325	-
	Change during the period		(1,838)	2,325
	Balance at the end of the period		487	2,325

22	Financial instruments
	The Group uses financial instruments comprising cash, liquid resources and debtors/creditors that arise from its operations. The Group holds cash as a liquid resource to fund the obligations of the Group. The Group's cash balances are held in Sterling and US Dollars. The Group's strategy for managing cash is to maximise interest income whilst ensuring its availability to match the profile of the Group's expenditure. This is achieved by regular monitoring of interest rates and monthly review of expenditure forecasts.

	The Company has a policy of not hedging and therefore takes market rates in respect of foreign exchange risk, however it does review its currency exposures on an ad hoc basis. Currency exposures relating to monetary assets held by foreign operations are included within the foreign exchange reserve in the Group Balance Sheet.

	The Group considers the credit ratings of banks in which it holds funds in order to reduce exposure to credit risk.

	To date the Group has relied upon equity funding to finance operations. The Directors are confident that adequate cash resources exist to finance operations to commercial exploitation but controls over expenditure are carefully managed.

	The net fair value of financial assets and liabilities approximates the carrying values disclosed in the financial statements. The currency and interest rate profile of the financial assets is as follows:

	Cash and short term deposits		2009	2008
			$ 000's	$ 000's

	Sterling		487	1,297
	USD		-	950
	Georgian Lari		-	78
	At end of period		487	2,325

	The financial assets comprise cash balances in interest earning bank accounts at call. The financial assets in Sterling currently earn interest at the base rate set by the Bank of England less 0.15%




23	Commitments
	As at 30 June 2009, the Company had entered into the following material commitments:

	Exploration commitments
	Ongoing exploration expenditure is required to maintain title to the Group's mineral exploration permits. No provision has been made in the financial statements for these amounts as the expenditure is expected to be fulfilled in the normal course of the operations of the Group.

24	Business combinations
	Disposal of Goldencrest Enterprises Ltd ("Goldencrest")

	On 26 November 2008 Templar Minerals Ltd through its wholly owned subsidiary Templar Georgia Ltd disposed of its 90% holding in Goldencrest Enterprises Ltd, a company based in BVI. This transaction has been accounted for by the purchase method of accounting. The fair value of identifiable assets and liabilities of Goldencrest as at the date of disposal are:

		Fair value
		$'000

	Property, plant and equipment	-
	Cash and cash equivalents	-
	Exploration costs & licences	-
		-

	Other creditors	(2,972)
		(2,972)
	Fair value of net assets disposed	(2,972)

	Consideration:
	Cash received	-
		-

	The cash inflow on disposal was as follows;
	Net cash disposed with subsidiary	(165)
	Cash received	-
	Net cash outflow	(165)

	Notes to the disposal :

	The net loss on disposal charged in the group income statement as an impairment loss prior to the completion of the sale was $7,314,000.
	The company also incurred a charge in its income statement of $6,523,000, being the loans to the disposed subsidiary written-off as non-recoverable.




25	Related party transactions
	Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note. Transactions between other related parties are discussed below.

	During the period, the Company paid consultancy fees of $78,000 (2008: $127,000) to Promaco Ltd, a Company related to John Stalker, Director of Templar Minerals Ltd. This amount was paid under a consultancy services agreement dated 15 September 2007 and was capitalised in exploration costs

	Remuneration of Key Management Personnel

	The remuneration of the directors, and other key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS24 Related party Disclosures.

		2009	2008
		$ 000's	$ 000's
	Short-term employee benefits	122	354
	Share-based payments	46	475
		168	829

26	Post balance sheet events
	There are no post balance sheet events to disclose.

General Information

The financial information set out above for the period to 30 June 2009 and the year to 31 March 2008 does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985, but is derived from those accounts. Whilst the financial information included in this announcement has been compiled in accordance with International Financial Reporting Standards ("IFRS") this announcement itself does not contain sufficient financial information to comply with IFRS. A copy of the statutory accounts for 2008 has been delivered to the Registrar of Companies and those for 2009 have been posted to Shareholders.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR CKQKPQBKDBCB

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