Interim Results

24 September 2014

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 2014.

Highlights within the six month period to 30 June 2014

· The six month period to 30 June 2014 was a period of investment which focused on bulk sampling and exploration work across the Group's portfolio of tenements and artisanal licences;

· The Company has made a good start, although it needs to sustain progress notwithstanding the challenges of operating against the backdrop of the Ebola outbreak in Sierra Leone;

· No revenue was earned in the period (2013: USD $nil);

· The loss for the period was USD $1,861,000 (2013 loss: USD $552,000) and the loss per share was 0.44 cents (2013: n/a);

· Total assets at 30 June were USD $1,306,000 (2013: USD $563,000)

 Highlights of operations post 30 June 2014

· GSR continues to operate in Sierra Leone in most of its tenement and licence areas despite the international emergency arising from the Ebola outbreak and continue to take every precaution to safeguard its employees;

· Golden Saint Diamond Club launched its first sales of polished diamonds;

· Appointment of London based Wardell Armstrong International Ltd to provide ongoing assistance and guidance for exploration and operations in relation to the Company's diamond and gold projects in Sierra Leone;

· Initial mineral sample testing from the Company's Tongo tenement at the Diatech Heavy Minerals Services facility in Perth confirmed high traces of kimberlitic picro-ilmenites known to have prospectivity for diamond kimberlites;

· Sponsorship of new licence areas in the village of Gelehun and Mamie (the "Zimmi" areas) and Rowaka for artisanal mining operations;

· Discussion with a company in Mumbai, India for the cutting, polishing and grading of rough diamonds currently held by Golden Saint;

· Commencement of the washing of gravels in Rowaka;

· Achievement of first diamond sales revenue from private showing at an event held in Singapore;

· Recovery of a 3.75 carat intense yellow diamond and four yellow stones from early stage exploratory work of approximate sizes 2.3 carats, 4.2 carats, 10.0 carats and 10.34 carats from Zimmi areas.

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, Executive Chairman +618 61454400

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

Newgate Threadneedle Josh Royston / Robyn McConnachie +44 (0) 20 7653 9850

Optiva Securities Jeremy King +44 (0) 20 3137 1904

Executive Chairman's Statement

Exploration and bulk sampling operations

Throughout the period, the Group has continued to make positive developments in its exploration and bulk sampling operations despite the Ebola outbreak in Sierra Leone and neighbouring countries, mainly because of its capable in country management and strong relationships with local people.

In view of the government's decision to create an isolation cordon around the Kenema region to try to isolate the spread of Ebola, management decided to temporarily move the bulk sampling operations from the affected Tongo region. The Group took the appropriate security measures to secure the diamond gravel stockpiles at Tongo whilst arrangements were made for the Dove Explorer to be relocated to the Baja region where the diamond gravel stockpiles had been prepared for bulk sampling. Once the Ebola situation improves, the plan will be to resume bulk sampling operations at Tongo after completion of the work at Baja.

At Moa, the work program currently involves stream sediment sampling, mapping and soil sampling for gold.

Financial review

For the six months ended 30 June 2014, the Group made an operating loss of USD $1.861 million (2013 loss: USD $552,000). Exploration expenses and employee costs totaling USD $1.152 million (2013: Nil) constituted the main part of the operating expenses whilst the remaining expenses related to general administrative costs of a corporate and management level.

As at 30 June 2014, the Group had USD $327,000 (2013: USD $563,000) cash available for continuing exploration and working capital purposes.

Post period events 

Appointment of Wardell Armstrong International Limited

With the objective of advancing GSR's work in the field, on 16 July 2014, Wardell Armstrong International Limited was appointed to work with the local team by integrating data previously generated by GSR from its soil sampling analysis and data from neighbouring licences in order to provide an ongoing work program for its exploration operations.

Sponsorship of new licences

In addition to the existing 3 exploration licences at Baja, Tongo and Moa, the Group, through its 75% owned subsidiary company Golden Saint Diamonds (SL) Ltd ("GSD"), successfully concluded talks over the sponsorship of two new licence areas in the Pujehun District, collectively referred to as the Zimmi areas.

Under the terms of the agreement GSD will be responsible for providing machinery, tools, food, fuel and lubricants for the smooth running of the artisanal mining operation and in return the total value of all diamonds won under the licence are to be shared between GSD and the local land owner split as to 70% and 30% respectively. To date, a 3.75 carat intense yellow diamond along with four other yellow stones of approximate sizes 2.3 carats, 4.2 carats, 10.0 carats and 10.34 carats have been recovered from the Zimmi areas.

In addition to the diamond artisanal mining licences, the Group, through an agreement entered into by GSD, also sponsored gold artisanal mining work in the area of Rowaka. Pursuant to the three year agreement, GSD will provide machinery, mining tools, food, fuel, lubricants for artisanal mining operations and in return all gold won under the licence will be sold to GSD and the proceeds of such sales will be shared between GSD and the land holding family split as to 85% and 15% respectively.

As at the date of this report, the gold artisanal miners in Rowaka have just commenced washing of the gold gravels. An announcement will be made in due course as to how much gold has been recovered.

Diamond sales

The Group achieved a significant milestone when the Golden Saint Diamond Club launched its first sales of cut and polished diamonds. At a private showing of its diamonds on 22 August 2014, 11 diamonds comprising 12.74 polished carats were sold. The sale proceeds of USD $35,788 represented the first revenue stream for the Group.

Following a visit to a diamond processing facility in Mumbai, India, management is currently in negotiations to send the remaining 204.65 carats of rough diamonds for cutting and polishing in preparation for sale.

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.

This Going Concern statement is primarily dependent on an ongoing capital raising of the Company of approximately GBP1.71million by the end of the year as well as on the continuing shipment of diamonds and possible sale of gold from stockpiles commencing in 2015. As detailed in today's announcement entitled "Equity Placing", released simultaneously with these interim results for the six month period ended 30 June 2014, the Company has raised a total of GBP589,994.04 gross proceeds through the issue of 29,499,702 new ordinary shares of no par value in the Company at a price of 2 pence per share to date. 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 2014.

Outlook

The first six months of the current financial year has proven to be challenging but with a resilient management team and support staff accompanied by the continuous news flow and trading updates, the Company has not only prevailed but has now gained much exposure and recognition as one of the more exciting emerging mining companies in West Africa.

We envisage the remainder of 2014 will be characterised by increased exploration and bulk sampling activities in our existing tenements along with artisanal mining operations in the new licenced areas sponsored by the Group. The early recoveries of yellow diamonds from the Zimmi areas are a promising sign for future finds and hence the Company will consider sponsoring additional artisanal miners in that area on a case by case basis. When the company has built up sufficient cash reserves, we will invest in a dense media separation plant ("DMS") to enable it to enhance security and increase the processing rate of the exploration bulk samples. We will continue to evaluate prospective assets for investment so that the Company is well positioned to generate returns for its shareholders.

On behalf of the Board, I like to thank our shareholders, staff, consultants and business associates for their valuable and continued support.

Cyril D'Silva

Executive Chairman

24 September 2014

Consolidated Interim Statement of Comprehensive Income for the period 1 January 2014 to 30 June 2014

* Please refer to Note 27

Consolidated Interim Statement of Financial Position as at 30 June 2014

* Please refer to Note 27

Consolidated Interim Statement of Cash Flows for the period 1 January 2014 to 30 June 2014

* Please refer to Note 27

Consolidated Interim Statement of Changes in Equity for the period 1 July 2013 to 30 June 2014

Notes to the Financial StatementsAccounting Policies

1.1 Corporate information

The consolidated financial statements of Golden Saint Resources Limited for the period 1 January 2014 to 30 June 2014 were authorised for issue in accordance with a resolution of the Directors on 25 September 2014.

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 2014 to 30 June 2014.

The consolidated financial statements have been prepared on a historical cost 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 2014, 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 policies.

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

Since 1 July 2013, 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 remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured 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.

This Going Concern statement is primarily dependent on an ongoing capital raising of the Company of approximately GBP1.71million by the end of the year as well as on the continuing shipment of diamonds and possible sale of gold from stockpiles commencing in 2015. As detailed in today's announcement entitled "Equity Placing", released simultaneously with these interim results for the six month period ended 30 June 2014, the Company has raised a total of GBP589,994.04 gross proceeds through the issue of 29,499,702 new ordinary shares of no par value in the Company at a price of 2 pence per share to date. 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 2014.

Accruals

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 19 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.

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 New and amended standards and standards issued but not effective

The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective:

IFRS 9 - Financial Instruments (effective for annual periods beginning on or after 1 January 2015)

Amendments to IFRS 9 - Mandatory Effective Date of IFRS 9 & Transition Disclosures (effective for annual periods beginning on or after 1 January 2015)

IFRS 9 Financial Instruments

IFRS 9, issued in November 2009, introduced new requirements for the classification and measurement of financial assets. IFRS 9 was amended in October 2010 to include requirements for the classification and measurement of financial liabilities and for de-recognition.

Key requirements of IFRS 9:

- All recognised financial assets that are within the scope of IAS 39 Financial Instruments: Recognition and Measurement are required to be subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. All other debt investments and equity investments are measured at their fair value at the end of subsequent accounting periods. In addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in profit or loss.

- With regard to the measurement of financial liabilities designated as fair value through profit or loss, IFRS 9 requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk or that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability's credit risk are not subsequently reclassified to profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss is presented in profit or loss.

At this stage, the directors of the Company have not evaluated the impact of the changes to IFRS 9 on their financial statements going forward. They will do so at an appropriate time in the future.

1.6 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; and

· 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.

Cash and cash equivalents

Cash and cash equivalents are measured at fair value, based on the relevant exchange rates at 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.

 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 derecognition 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 recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

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.

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

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

2. Net Operating Expenses

3. Key Management Personnel

· Key Management personnel comprise the Directors.

4. Employee costs

5. Earnings per share

The Company was admitted to trading on AIM of the London Stock Exchange on 19 July 2013 with an issued capital of 420,172,001 ordinary shares.

6. Segment Information

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 relate to payments made in advance for services from the AIM Nomad and Broker as well as legal retainer for Golden Saint Resources (Africa) Ltd.

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 76.36 carats of cut, gem quality diamonds and 204.65 of uncut diamonds that have since been exported from Sierra Leone.

11. Property, Plant and Equipment

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 2014.

13. Intangible Assets

There was no impairment during the period to 30 June 2014.

14. Subsidiaries

Details of the Company's subsidiaries at 30 June 2014 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, GSR, 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:

Golden Saint Resources (Australia) Pty Ltd has accumulated losses of USD $1,090,648, while Golden Saint Resources (Africa) Ltd has accumulated losses of USD $1,332,886, 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 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.

For the period from the acquisition date to 31 December 2013, the non-controlling interest's share of the losses of Golden Saint Resources (Africa) Ltd was USD $117,189. These are the two components of the period end non-controlling interest position.

For the period from acquisition date to 30 June 2014, the non-controlling interest's accumulated share of losses in Golden Saint Resources (Africa) Ltd was USD $333,158. 

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. Commitments and Contingencies

There are no commitments or contingencies.

20. Related Party Transactions

During the period to 1 January 2014 to 30 June 2014, fees totalling USD $1,695 were paid to Lucas Resources, a company controlled by Mr Nick Burn, a director of the Company during the period, in relation to professional services rendered.

Fees totalling USD $8,929 were paid to David McDonald Legal, a company controlled by Mr David McDonald, a director of the Company, in relation to professional services rendered.

21. 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 2014 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. 

22. 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.

23. 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 2014, please see Note 7.

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

24. 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.

25. Parent Company Information

26. Golden Saint Resources(Africa) Ltd prior year information

27. Prior period comparatives for 30 June 2013

Pursuant to a share exchange agreement dated 1 July 2013 between the Company and Golden Saint Australia Limited, the Company acquired 75 shares of Le10,000 each in the issued share capital of Golden Saint Resources (Africa) Limited in consideration for the issue of 378,750,000 Ordinary Shares of no par value in the capital of the Company at a price of 12 pence per Ordinary Share.

As this transaction occurred post 30 June 2013, GSR Africa's financial results do not form part of the 30 June 2013 comparatives.