White Cliff Minerals : Half Yearly Report for the period ended 31 December 2016

Half year report 31 December 2016

Corporate information 3

Directors' report 4

Auditor's independence declaration 17

Condensed statement of comprehensive income 18

Condensed statement of financial position 19

Condensed statement of changes in equity 20

Condensed statement of cash flows 21

Notes to the condensed financial statements 22

Directors' declaration 27

Independent auditor's review report 28

Todd Hibberd Rodd Boland

Telephone: (08) 9321 2233

Facsimile: (08) 9324 2977

Website: www.wcminerals.com.au

Level 11, 172 St George's Terrace Perth, Western Australia 6000 Telephone: (08) 9323 2000

Level 4, 130 Stirling Street Perth, Western Australia 6000

Level 25, 140 St Georges Terrace Perth, Western Australia 6000

Your Directors present their report for the half year ended 31 December 2016.

The following persons were Directors of White Cliff Minerals Limited ("White Cliff" or the "Company") during the whole of the period and up to the date of this report unless otherwise stated:

Michael Langoulant - Executive Chairman

Todd Hibberd - Managing Director

Rodd Boland - Non-executive Director

White Cliff controls extensive tenement packages in Western Australia's Yilgarn Craton and the Pilbara region as well as a major gold-copper project in Central Asia.

Aucu Gold Project

• Aucu Gold deposit drilling campaign in the second half of 2016 identified exception gold intersections

• Key results on the high grade eastern section of the Upper Gold Zone include:

  • 12 metres at 15.6 g/t gold including 2 metres at 79.2 g/t gold o 11 metres at 15.2 g/t gold including 1 metre at 149 g/t gold o 3 metres at 11.2 g/t gold

  • 3 metres at 11.9 g/t gold

  • 5 metres at 7.6 g/t gold,

• Two new major mineralised structures identified,

• Drilling extends mineralisation along strike from the already established Inferred gold resource of 1.15Mt at 4.2 g/t gold for 156,000 ounces of contained Gold,

• Substantial growth potential with the resource remaining open along strike and at depth for both deposits,

• A new JORC compliant resource estimation which should be available in March, followed by a preliminary mining optimisation study to establish the baseline economics of the project.

Corporate

During the period the Company completed a partially underwritten share placement and a shareholder purchase plan that raised $2,549,750 to fund continued exploration both on the Aucu gold deposit in the Kyrgyz Republic and the Western Australian based gold, lithium and nickel projects.