Interim Results

21 September 2015

Golden Saint Resources Ltd

("GSR or the "Company" or "Group")

Interim Results

The Board of Directors of Golden Saint Resources Ltd is pleased to announce the unaudited results for the six months ended 30 June 2015.

Highlights within the six month period to 30 June 2015

· Despite the extremely challenging operating conditions presented by the Ebola outbreak, the Company made significant progress in its ongoing exploration and alluvial mining operations.

· The bulk sampling programs in the Tongo and Baja license areas produced promising results in its early stages and this was evidenced by the recovery of some good quality rough diamonds as announced previously; notably nine clear white diamonds of 9.475 carat, 9.65 carat, 2.77 carat, 1.82 carat, 1.0 carat, 0.8 carat, 0.775 carat, 0.53 carat and 0.325 carat in the Tongo license area; two light coloured purple diamonds of 2.45 carat and 0.525 carat and two white diamonds of 0.970 carat and 0.820 carat in the Baja license area.

· In the Zimmi areas where the Company has sponsored artisanal mining operations, the Company also announced the recovery of six rough diamonds comprising 2.54 carat, 1.3 carat, 0.73 carat, 0.69 carat, 0.30 carat and 0.26 carat.

· The first six month period to 30 June 2015 saw a period of reorganisation of the Company's debt and equity structure.

· On 27 January 2015, the Company entered into a subscription agreement with Darwin Strategic Limited to raise GBP 175,000 through the issue of 53,846,154 ordinary shares of no par value ("Ordinary Shares") at a price of 0.325 pence per subscription share.

· Authority was granted by shareholders at a general meeting convened on 23 February 2015 for the Company to issue up to 500,000,000 Ordinary Shares to investors at a price deemed reasonable.

· On 5 March 2015, the Company repaid all outstanding convertible loan notes through the issue of 252,000,000 Ordinary Shares at a price of 0.25 pence per share to Darwin Strategic Limited and consequently terminated the agreement made with Darwin Strategic Limited in October 2014 to issue further unsecured convertible bonds.

· On 31 March 2015, the Company raised GBP 450,000 before expenses by way of a placing to institutional and other investors of 300,000,000 new Ordinary Shares at a placing price of 0.15 pence per share.

· On 28 February 2015, the Company's Non-Executive director, Mr. Simon Lawton resigned and Mr. Gerard Hooi was appointed as Business Development Consultant for Asia.

· The Diamond Club event which was hosted on 25 June 2015, in Perth, Western Australia, generated approximately USD $17,000 in confirmed sales.

· For the six months to 30 June 2015, the Company recorded a loss of USD $1,458,000 (2014: USD $1,861,000). The reduced loss was attributed mainly to the lower operating expenses resulting from the Company's effort to cut costs by reducing headcount and working more efficiently.

Highlights of operations post 30 June 2015

· The Company appointed Rock Forage Consulting Services, part of the Rock Forage Mining Limited group, as its Technical and Exploration Consultant, effective from 1 July 2015, to guide the Company's technical team on the exploration and bulk sampling of diamond and gold bearing deposits on its licenses held in Sierra Leone. The contract with Wardell Armstrong International Ltd ceased on 26 July 2015.

·  On 3 July 2015, the Company announced further diamond recoveries pursuant to the bulk sampling programs in Baja and Tongo as follows;

1. One 2.25 carat white diamond

2. One 2.62 carat white diamond

3. One 4.41 carat diamond

4. One 3.12 carat white diamond

5. Eighty-nine carat of small diamonds under 0.5 carat

· On 22 July 2015 the Company raised £250,000 before expenses, by way of a placing of 312,500,000 new Ordinary Shares at a placing price of 0.08 pence per share plus 125,000,000 warrants over Ordinary Shares convertible at an exercise price of £0.001 and valid for 3 years from 27 July 2015.

· On 7 August, the Company announced Board restructuring with Mr. Cyril D Silva stepping down from his current Executive Chairman position and taking on the role of full time CEO and Executive Director in order to provide more focus and direction on the daily operational aspects of the business in Sierra Leone. Mr. David McDonald, assumed the role of Executive Chairman as a result of the restructuring.

· A site visit to our mining assets in Sierra Leone was conducted in mid-August 2015 by the CEO, Cyril D Silva and the newly appointed technical and exploration consultants, Rock Forage, to assess ongoing operations and to provide strategic and operational directions going forward.

Cyril D Silva, Chief Executive Officer, commented:

"The preliminary report submitted by our newly appointed technical and exploration consultants, Rock Forage after their site visit in August 2015 was very promising. With their highly experienced backgrounds, they are well positioned to provide the necessary guidance and exploration focus to the Company's geological and exploration team to build on from the initial exploration campaign which included reconnaissance stream sediment sampling for kimberlitic indicator minerals and high-quality airborne magnetic surveys covering all three licences and limited mini-bulk sampling of selected alluvial sites in the Baja and Tongo licences. Their experience in dredging techniques will enable the Company to accelerate the bulk sampling campaign throughout the year around the Sewa River, Woa River and Moa River alluvial deposits.

Against this backdrop, the Company is looking forward to a busy second half of the year and remains optimistic in achieving significant developments in our mining operations."

A copy of the interim results are available on the Company's website www.goldensaintresources.com.

For further information please contact:

Golden Saint Resources Ltd Cyril D'Silva, Chief Executive Officer +618 61454400

Beaumont Cornish Limited Roland Cornish / Emily Staples +44 (0) 20 7628 3396

Cassiopeia Services Limited Stefania Barbaglio +44 (0) 79 4969 0338

Cornhill Capital Nick Bealer +44 (0) 20 7710 9612

Executive Chairman's Statement

Operations

The first half of the financial year has proven to be a challenging period dominated sadly by the outbreak of the Ebola virus in Sierra Leone and the neighbouring countries. Notwithstanding the demanding operating environment, the Company performed and responded with the discovery of diamond finds during the early stages of its bulk sampling programs in the Baja and Tongo license areas and the Zimmi areas where the Company has sponsored artisanal mining operations working in concert with the local miners. The overall health of our employees continues to be of paramount concern to management and I am very pleased to report that none of our employees were affected by the Ebola virus, we believe, as a result of the hygiene and sanitisation measures that were implemented by the Company across our areas of operation.

During the period under review, the Company repaid all outstanding convertible loan notes through the issue of shares and consequently was debt free as at 30 June 2015. Working capital requirements were met through the placing of shares to institutional and other investors.

Board

In line with the Board's strategy to provide more focus on the daily operational aspects of the business in Sierra Leone, the Board agreed for Mr Cyril D'Silva to step aside from his position as Executive Chairman and interim CEO to take up the position of full time CEO and Executive Director on the Board with effect from 6 August 2015 and for me to become the Executive Chairman. On behalf of the Board, I would like to extend my appreciation to Mr Simon Lawton for his contributions to the Company. Mr Simon Lawton stepped down as the Company's Non-Executive Director on 28 February 2015 and we wish him the best for the future.

Outlook

Going forward I wish to add that the Board remains cautiously optimistic about making significant progress in the Company's operations. With the appointment of a full time CEO and a team of highly experienced technical consultants to complement our local management, the Company is strategically geared to move forward with its exploration programme.

Finally, I would like to thank my fellow Directors, Shareholders, business associates and staff for their continuing support in this challenging period and look forward to further strengthening the business over the coming years.

Going concern

This report has been prepared on the going concern basis, which contemplates the continuation of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

The Directors believe that, with due consideration to the Group's future plans, there are sufficient funds to meet the Group's working capital requirements.

Subsequent to year end, on the 22 July 2015, the Group raised GBP 250,000 by way of a placing of 312,500,000 new Ordinary Shares of no par value in the Company at a placing price of 0.08 pence per share plus 125,000,000 warrants over Ordinary Shares convertible at an exercise price of £0.001 and valid for 3 years from 27 July 2015.

This Going Concern statement is primarily dependent on an ongoing capital raising as well as on the continuing shipment of diamonds and possible sale of gold from stockpiles. The Company intends to continue with its fundraising efforts and hopes to be in a position to inform shareholders of further raises during Quarter 4 of 2015.

David McDonald

Executive Chairman

Consolidated Interim Statement of Comprehensive Income for the period 1 January 2015 to 30 June 2015

Consolidated Interim Statement of Financial Position as at 30 June 2015

Consolidated Interim Statement of Cash Flows for the period 1 January 2015 to 30 June 2015

Consolidated Interim Statement of Changes in Equity for the period 1 January 2015 to 30 June 2015

Notes to the Financial Statements

Accounting Policies

1.1 Corporate information

The consolidated financial statements of Golden Saint Resources Limited for the period 1 January 2015 to 30 June 2015 were authorised for issue in accordance with a resolution of the Directors on 21 September 2015.

The registered office of Golden Saint Resources Limited, the ultimate parent of the Group, is 171 Main Street, Road Town Tortola VG 1110 British Virgin Islands.

The principal activity of the Group is early stage diamond and gold exploration with three Exploration Licences in Sierra Leone.

1.2 Basis of preparation

The consolidated financial statements of Golden Saint Resources Limited and its controlled entities ("the Group") have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the European Union (EU) as they apply to the financial statements of the Group for the period 1 January 2015 to 30 June 2015.

The consolidated financial statements have been prepared on a historical cost convention basis, except for certain financial instruments that have been measured at fair value. The consolidated financial statements are presented in US dollars and all values are rounded to the nearest thousand except when otherwise indicated.

1.3 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group as at 30 June 2015, and for the period then ended.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date when such control ceases.

The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting.

All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions and dividends are eliminated in full.

Total comprehensive income within a subsidiary is attributed to the non-controlling interest even if it results in a deficit balance. A change in ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

Pooling of Interests on Incorporation of Parent Entity

On incorporation of the entity, subsidiaries have been consolidated using the pooling of interests method on the basis that the entities being combined are ultimately controlled by the same parties, both before and after the combination.

Under this method the assets and liabilities of the acquiree are recorded at book value and intangible assets and contingent liabilities are only recognised if they were previously recognised by the acquiree. No goodwill is recorded and expenses of the combination are written off immediately in profit or loss.

The excess of consideration over the value of the acquiree's net assets is recognised in the merger reserve, a negative reserve within equity.

Any non-controlling interest in the acquiree is recognised as the proportion of the assets and liabilities of the acquiree at the date of acquisition. From the date of acquisition forward, a proportionate share of profits, or losses, in the related subsidiary is then attributed to the non-controlling interest.

Subsequent Business Combination

Business combinations occur where an acquirer obtains control over one or more businesses. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exceptions).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not re-measured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is re-measured in each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to business combinations are expensed to the statement of comprehensive income. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

1.4 Significant accounting judgements, estimates and assumptions

The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes would differ from these estimates if different assumptions were used and different conditions existed.

In particular, the Group has identified the following areas where significant judgements, estimates and assumptions are required, and where actual results were to differ, may materially affect the financial position or financial results reported in future periods. Further information on these and how they impact the various accounting policies is located in the relevant notes to the consolidated financial statements.

1.4.1 Key Judgements

In the process of applying the Group's accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements.

Going concern

This report has been prepared on the going concern basis, which contemplates the continuation of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business.

The Directors believe that, with due consideration to the Group's future plans, there are sufficient funds to meet the Group's working capital requirements.

Subsequent to year end, on the 22 July 2015, the Group raised GBP 250,000 by way of a placing of 312,500,000 new Ordinary Shares of no par value in the Company at a placing price of 0.08 pence per share plus 125,000,000 warrants over Ordinary Shares convertible at an exercise price of £0.001 and valid for 3 years from 27 July 2015.

This Going Concern statement is primarily dependent on an ongoing capital raising as well as on the continuing shipment of diamonds and possible sale of gold from stockpiles. The Company intends to continue with its fundraising efforts and hopes to be in a position to inform shareholders of further raises during Quarter 4 of 2015.

Accruals

The management have used judgement and prudence when estimating certain accruals for contractor claims. The accruals recognised are based on work performed but are before settlement.

Contingencies

By their nature, contingencies will only be resolved when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events. Please refer to Note 20 for further details.

Impairment of assets

The Group assesses each asset or cash generating unit (CGU) every reporting period to determine whether any indication of impairment exists. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made, which is considered to be the higher of the fair value less costs to sell, or the value in use. These assessments require the use of estimates and assumptions such as long-term commodity prices (considering current and historical prices, price trends and related factors), discount rates, operating costs, future capital requirements, closure and rehabilitation costs, exploration potential, reserves and operating performance (which includes production and sales volumes). These estimates and assumptions are subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections, which may impact the recoverable amount of assets and/or CGUs. Please refer to Note 11 for further details.

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

1.4.2 Key estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

Exploration and evaluation expenditure

The application of the Group's accounting policy for exploration and evaluation expenditure requires judgement in determining whether future economic benefits will arise either from future exploitation or sale or where activities have not reached a stage which permits a reasonable assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (JORC) resource is itself an estimation process that requires varying degrees of estimation depending on sub-classification and these estimates directly impact the point of deferral of exploration and evaluation expenditure. The deferral policy requires management to make certain estimates and assumptions about future events or circumstances, in particular whether an economically viable extraction operation can be established. Estimates and assumptions made may change if new information becomes available. If, after expenditure is capitalised, information becomes available suggesting that the recovery of expenditure is unlikely, the amount capitalised is written off in the consolidated statement of comprehensive income in the period when the new information becomes available. Exploration and evaluation assets are carried at historical cost less any impairment losses recognised. Please refer to Note 12 for further details.

1.5 Changes in accounting policies and mandatory standards adopted during the half-year

The accounting standards used to prepare those financial statements comply with IFRS as of 30 June 2015, and in particular with IAS 34 related to interim financial reporting. Because of their condensed nature, those financial statements do not contain all the information published in the annual accounts and should be read in conjunction with the Consolidated Financial Statements for the financial year ended 31 December 2014. The following revised standards, new standards or IFRS interpretations are with mandatory application on or after 1 January 2015.

- IFRIC 21 "Levies"

- Annual improvements, 2011‐2013 cycle,

The first‐time application of these standards has had no material impact on the accounts for the 6 month period ended 30 June 2015.

1.6 Early adoption of standards

The Consolidated Entity did not early adopt any accounting standards, interpretations or amendments, issued and available for early adoption, during the half-year.

1.7 Impact of issued standards and pronouncements not available for early adoptions

Standards issued and not available for early adoption, which will become mandatory in subsequent years are not expected to have a material impact on the Interim Financial Statements of the Consolidated Entity.

1.8 Summary of significant accounting policies

Exploration and evaluation assets

It is the Group's policy to capitalise the cost of acquiring rights to explore areas of interest. All other exploration expenditure is expensed to the statement of profit or loss and other comprehensive income.

The costs of acquisition are carried forward as an asset provided one of the following conditions are met:

· Such costs are expected to be recouped through the successful development and exploitation of the area of interest, or alternatively, by its sale; or

· Exploration activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence of otherwise of recoverable reserves, and active and significant operations in relation to the area are continuing.

When the technical feasibility and commercial viability of extracting a mineral resource have been demonstrated then any capitalised exploration and evaluation expenditure is reclassified as capitalised mine development. Prior to reclassification, capitalised exploration and evaluation expenditure is assessed for impairment.

Impairment

An impairment exists when the carrying amount of an asset or cash-generating unit exceeds its estimated recoverable amount. Any impairment losses are recognised in the statement of profit or loss and other comprehensive income.

The carrying value of capitalised exploration and evaluation expenditure is assessed for impairment at the cash generating unit level whenever facts and circumstances (from an impairment review) suggest that the carrying amount of the asset may exceed its recoverable amount.

Impairment reviews for exploration and evaluation costs are carried out on a project-by-project basis, as each project has the potential to be an economically viable cash generating unit. An impairment review is undertaken when indicators of impairment arise but normally when one of the following conditions applies:

· unexpected geological occurrences render a deposit uneconomic

· title to an asset is compromised

· variations in commodity prices render the project uneconomic

· variations in the currency of operation

· variations to the fiscal and tax legislation in the country of operation

Property, plant and equipment

Plant and equipment are shown at cost less accumulated depreciation and impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, any incidental cost of purchase, and associated borrowing costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. Directly attributable costs include employee benefits, professional fees and costs of testing whether the asset is functioning properly. Capitalised borrowing costs include those that are directly attributable to the construction of mining and infrastructure assets.

Property, plant and equipment relate to plant, machinery, fixtures and fittings and are shown at historical cost less accumulated depreciation and impairment losses.

The depreciation rates applied to each type of asset are as follows:

· Plant and machinery 10%

· Motor Vehicles 15%

· Fixtures and fittings 10-20%

· Lease Improvements 5 years

Subsequent expenditure is capitalised when it is probable that future economic benefits from the use of the asset will be increased. All other subsequent expenditure is recognised as an expense in the period in which it is incurred. Assets that are replaced and have no future economic benefit are derecognised and expensed through profit or loss. Repairs and maintenance which neither materially add to the value of assets nor appreciably prolong their useful lives are charged against income. Gains/(losses) on the disposal of fixed assets are credited/(charged) to income. The gain or loss is the difference between the net disposal proceeds and the carrying amount of the asset.

The asset's residual values, useful lives and methods of depreciation are reviewed at each reporting period, and adjusted prospectively if appropriate.

Inventories

Inventories are valued at the lower of cost and net realisable value.

Financial instruments: initial recognition and measurement

a. Financial assets

The Group's financial assets include trade and other receivables, and cash and cash equivalents.

Trade and other receivables

Trade and other receivables are stated at amortised cost less provision for doubtful debts. Trade and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

Trade receivables are generally due for settlement between 30 and 90 days. They are presented as current assets unless collection is not expected for more than 12 months after the reporting date. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is used when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents are measured at fair value, based on the relevant exchange rates at the balance sheet date. Cash and cash equivalents comprise cash, cash at hand and short-term deposit amounts with original maturity of less than three months. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Impairment

The Group assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. A financial asset is deemed to be impaired if there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (a loss event) and that loss event has an impact on the estimated future cash flows of the financial asset that can be reliably estimated.

 b. Financial liabilities

The Group's financial liabilities include trade and other payables and interest-bearing loans and borrowings. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, less directly attributable transaction costs.

Trade and other payables

Trade and other payables are non-derivative financial liabilities that are not quoted in an active market. It represents liabilities for goods and services provided to the Group prior to the year end and which are unpaid. These amounts are unsecured and have 7-30 day payment terms. Trade and other payables are presented as current liabilities unless payment is not during within 12 months from the reporting date. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

Interest-bearing loans and borrowings

Interest-bearing loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortised cost using the effective interest (EIR) method. The fair value implies the rate of return on the debt component of the facility. This rate of return reflects the significant risks attaching to the facility from the lenders' perspective.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in profit or loss.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds e.g. arrangement fees.

The Group capitalises borrowing costs for all eligible assets. Where funds are borrowed specifically to finance the project, the amount capitalised represents the actual borrowing costs incurred. Early repayment of borrowings, specifically for reasons of refinancing do not qualify for capitalising as borrowing costs under IAS 23 and are recognised as a loss on de-recognition in the statement of comprehensive income.

c. Fair value of financial instruments

The following methods and assumptions are used to estimate the fair values:

· Cash and short-term deposits, trade and other receivables, trade and other payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

· Initial fair value of interest-bearing borrowings is normally the transaction price, i.e. the fair value of the consideration received. When part of the consideration is for something other than the loan, the fair value is estimated using an appropriate valuation technique.

· For disclosure purpose only, the fair value of unquoted instruments, such as loans and other financial liabilities, is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

d. Other accounting policies

Provisions

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax amount that reflects current market assessments of the time value of money, and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Finance income

Interest income is made up of interest received on cash and cash equivalents.

Deferred taxation

Deferred income tax is provided using the balance sheet method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, can be utilised, except:

· In respect of deductible temporary differences associated with investments in subsidiaries, deferred income tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that future taxable profit will be available to allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

Foreign currencies

i) Functional and presentation currency

The consolidated financial statements are presented in US dollars, which is the Group's presentation currency.

ii) Transaction and Balances

Transactions in foreign currencies are initially recorded in the functional currency at the respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the spot rate of exchange ruling at the reporting date. All differences are taken to the profit or loss, should specific criteria be met.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

iii) Group Companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

· Assets and liabilities for each statement of financial position presented as translated at the closing rate at the date of the statement of financial position.

· Income and expenses for each income statement and statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transactions dates, in which case income and expenses are translated at the dates of the transactions), and

· All resulting exchange differences are recognised in other comprehensive income

Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable.

The Group recognises when the amount of revenue can be reliably measured, it is probably that future economic benefits will flow to the entity and specific criteria have been met as described below.

i) Interest Income

Interest income is recognised using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income.

2. Net Operating Expenses

3. Key Management Personnel

4. Employee costs

5. Earnings per share

6. Segment Reporting

The consolidated entity operates in one business segment and one geographical segment, namely the mineral exploration industry.

The revenues and results of this segment are those of the consolidated entity as a whole and are set out in the statement of profit and loss and other comprehensive income. The segment assets and liabilities of this segment are those of the consolidated entity and are set out in the statement of financial position.

7. Cash and Cash Equivalents

There are no restrictions on the cash currently held by the Group.

8. Trade and Other Receivables

Prepayments for the year ended 31 December 2014 relate to payments made in advance for services from the AIM Nomad and Broker as well as legal retainer for GSR Africa.

Other receivables include deposits made for the purchase of plant and machinery for use in Sierra Leone.

9. Deposits Paid

Current Deposits relate to mining equipment leased in Sierra Leone to be used for gold and diamond exploration and production.

10. Inventories

Inventories consist of 102.60 carat of cut, gem quality diamonds and 70.74 of uncut industrial use grade diamonds that have since been exported from Sierra Leone.

11. Property, Plant and Equipment

Additions to plant and machinery comprise two excavators and a dozer for its mining operations.

12. Exploration and Evaluation Assets

The board of directors regularly assesses the potential of each mineral licence. There was no impairment during the period to 30 June 2015.

13. Intangible Assets

There was no impairment during the period to 30 June 2015.

14. Subsidiaries

Details of the Company's subsidiaries at 30 June 2015 are as follows:

15. Taxation

Unrecognised tax losses

Where the realisation of deferred tax assets is dependent on future taxable profits, losses carried forward are recognised only to the extent that business forecasts predict that such profits will be available to the companies in which losses arose.

The parent, Golden Saint Resources Ltd, is not liable to corporation tax in BVI, so it has no provision for deferred tax. However, Golden Saint Resources (Australia) Pty Ltd is liable to tax in Australia and Golden Saint Resources (Africa) Ltd is liable to tax in Sierra Leone, so potential deferred tax in respect of those companies is noted as follows:

For the six months ended 30 June 2015, GSR (Australia) Pty Ltd had losses of USD 418,365, while GSR Africa had losses of USD 501,502 upon which deferred tax assets are not recognised. These losses are available indefinitely for offset against future taxable profits.

16. Share Capital and Reserves

The share capital of the Company is denominated in UK Pounds Sterling. Each allotment during the period was then translated into the Group's functional currency, US Dollars at the spot rate on the date of issue.

17. Non-Controlling Equity Interest

On 1 July 2013, the Group acquired a 75% interest in Golden Saint Resources (Africa) Ltd. At this date, the Group recognised a non-controlling interest of USD $21,646, which represented the non-controlling interest's share of net assets in Golden Saint Resources (Africa) Ltd at that date.

As at 30 June 2015, the non-controlling interest's share of losses in GSR Africa was USD 574,402.

18. Trade and Other Payables

Trade payables are non-interest bearing and are normally settled on 60 day terms.

Accruals relate to end of the financial period audit and accounting services.

Other payables relate to superannuation and tax withheld from salaries payable to the tax office.

19. Convertible Note

20. Commitments and Contingencies

There are no commitments or contingencies.

21. Related Party Transactions

During the period to 1 January 2015 to 30 June 2015, fees totalling AUD $17,674 were paid to Ledger Corporate, a company controlled by Mr Steve Ledger, a director of the Company during the period, in relation to professional services rendered.

Fees totalling AUD $3,341 were paid to David McDonald Legal, a company controlled by Mr David McDonald, a director of the Company, in relation to professional services rendered.

22. Financial risk management objectives and policies

The Group's activities expose it to a variety of financial risks. The Group's Board provides certain specific guidance in managing such risks, particularly as relates to credit and liquidity risk. Any form of borrowings requires approval from the Board and the Group does not currently use any derivative financial instruments to manage its financial risks. The key financial risks and the Group's major exposures are as follows:

Credit risk

The maximum exposure to credit risk is represented by the carrying amount of the financial assets. In relation to cash and cash equivalents, the Group limits its credit risk with regards to bank deposits by only dealing with reputable banks. In relation to sales receivables, the Group's credit risk is managed by credit checks for credit customers and approval of letters of credit by the Group's advising bank for offtake customers.

Foreign Currency Risk

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The table below indicates the currencies to which the Group had significant exposure at 30 June 2015 on its monetary assets and liabilities. The analysis calculates the effect of a reasonably possible movement of the currency rate against the US dollar, with all other variables held constant on the statement of comprehensive income (due to the fair value of currency sensitive non-trading monetary assets and liabilities). A positive amount in the table reflects a potential net increase in the consolidated statement of comprehensive income.

23. Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Numbers in the table below represent the gross, contractual, undiscounted amount payable in relation to the financial liabilities.

The Group monitors its risk to a shortage of funds using a combination of cash flow forecasts, budgeting and monitoring of operational performance.

24. Capital management

Capital includes equity attributable to the equity holders of the parent. Refer to the statement of changes in equity for quantitative information regarding equity.

The Group's primary objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders. For details of the capital managed by the Group as at 30 June 2015, please see Note 7.

The Group is not subject to any externally imposed capital requirements.

25. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. A sensitivity analysis is not presented, as all borrowing costs have been capitalised as at 30 June 2014; therefore profit or loss and equity would have not been affected by changes in the interest rate.

26. Parent Company Information (Golden Saint Resources Ltd)