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This sis from today's announcement...Annual report.

Annual Financial Report 2005

DIRECTORS’ REPORT
1
The directors of Sundance Resources Ltd
A.C.N. 055 719 394 (“Parent Entity”) present
their financial report including the consolidated
financial report of the Parent Entity and its
controlled entities (“Consolidated Entity”) for
the year ended 30th June 2005. The Parent
Entity is a listed public company limited by
shares, incorporated and domiciled in
Australia.

DIRECTORS
The names of the directors of the Parent
Entity in office at any time during or since the
financial year and up to the date of this
financial report are as follows. Directors were
in office for the entire period unless otherwise
stated.
John Francis Corr (app 10-Feb-2005)
Stephen John Dobson (app 12-May-2005)
Michael Julian Frayne (app 29-Nov-04)
Eduardo Javier Valenzuela (res 18-Aug-05)
Kim R Gardner (res 30-Nov-2004)
Ian R Sandover (res 22-Feb-2005)
Patrick J D Elliott (res 22-Feb-2005)

PRINCIPAL ACTIVITIES

The principal activities of the Consolidated
Entity during the year were Copper, gold,
nickel and other base metal exploration in
Bolivia.
There were no significant changes in the
nature of the principal activities during the
financial year:
OPERATING RESULTS
The operating loss for the Consolidated Entity,
after income tax amounted to $1,550,301.

DIVIDENDS
No dividends have been paid or declared
since the start of the financial year by the
Parent Entity.
The directors have recommended that no
dividend be paid by the Parent Entity in
respect of the year ended 30th June 2005.

SIGNIFICANT CHANGES IN THE STATE OF
AFFAIRS AND REVIEW OF OPERATIONS
The following significant changes in the state
of affairs of the Consolidated Entity occurred
during the financial year:
On 20 August 2004, the Parent Entity
announced encouraging results from a
recently completed geological and structural
interpretation of the Anaconda prospect area.
Copper mineralization identified to date
consists predominantly of malaquite, cuprite,
azurite, and chalcocite, with minor amounts of
native copper in some areas. Furthermore,
assay results from a small number of grab
samples collected by the Directors during a
site visit last May to the Anaconda Prospect
have returned some highly encouraging
copper grades.

DIRECTORS’ REPORT
2
On 21 September 2004, the Parent Entity
announced a 3 year option agreement for the
acquisition of 100% of the Mantos Grandes
project for a total price of US$4.0 million. The
agreement consists of a 12 month option for
an initial payment of US$250,000. Should The
Parent Entity decide to withdraw at the end of
12 months, it will retain a 6.25% interest in the
company holding the project at no additional
cost. The Parent Entity may extend the option
for a further 24 months by paying US$1.25
million. If thereafter The Parent Entity decides
not to exercise the purchase option, then the
project will be offered for sale and The Parent
Entity will receive 25% of the proceeds. The
Parent Entity may exercise the option on or
before the end of the 3 year period by paying
the remaining US$2.5 million of the total sale
price in two installments over a period of 12
months, with the second payment being
deferrable for up to 12 months subject to
interest.

On 18 October 2004, the Parent Entity
announced an agreement to acquire the 50%
in the Chacarilla Copper Project that it did not
already own for US$1 million.
On 25 October 2004, the Parent Entity allotted
and issued 43,500,000 fully paid ordinary
shares in the Parent Entity for 1.1 cents per
share in cash. The issue of these shares was
subsequently ratified at the annual general
meeting of shareholders held on 29 November
2004.

On 23 November 2004, the Parent Entity
announced highly encouraging assay results
from the initial sampling program at the
Anaconda copper project in Bolivia which
seem to confirm the existence of a medium to
high grade copper system within the
Anaconda leases. Results from the MMI
program confirm the existence of a very
strong polymetallic anomaly, strongly
characterized by copper and silver and
supported by lead and zinc over the examined
strike length of some 2km. Anomalous Cu
values were found in each of the soil samples
and ranged from 480 to 32,200 ppb (low
detection limit 10 ppb).
Results from the rock chip samples (1.5 to 3.6
kg in weight) seem to confirm the strong MMI
results, with 13 out of the 25 samples
returning copper values in the 1.09 to 14.6%
Cu range. The arithmetic average of the
mineralized samples was 4.7% Cu, whilst the
overall average for all rock samples was 2.4%
Cu.

On 2 December 2004, the Parent Entity issued
43,500,000 options to acquire shares in the
Parent Entity expiring on 29 November 2006
for an issue price of $0.003 per option in cash.
Each option would entitle the holder to acquire
one fully paid ordinary share in the Parent
Entity for 2 cents. The issue of these options
was approved by the Annual General Meeting
of shareholders of the Company held on 29
November 2004.

On 2 December 2004, the Parent Entity issued
5,000,000 options to acquire shares in the
Parent Entity expiring on 28 August 2005.
Each option would entitle the holder to acquire
one fully paid ordinary share in the Parent
Entity for 1.4 cents. These options were issued
as part consideration for a loan of $500,000 to
the Parent Entity. The issue of these options
was approved by the Annual General Meeting
of shareholders of the Company held on 29
November 2004.

On 25 January 2005, the Parent Entity
announced results from an expanded
geochemical sampling program at the
Anaconda prospect in Bolivia. Assay results
confirmed the existence of a number of
geochemical anomalies, strongly
characterized by copper and silver and
supported by lead and zinc. Anomalous Cu
values were found in each of the soil samples
and ranged from 390 to 75,000 ppb (low
detection limit 10 ppb). Silver values ranged
from 1 to 105ppb (low detection limit 0.1 ppb).

DIRECTORS’ REPORT
3
On 1 February 2005, the Parent Entity
announced that it had been issued with a
further 11,545,603 ordinary shares in
Austminex Ltd as the final payment due in
respect of the sale of its Coolgardie project to
Austminex and it therefore holds 21,813,433
ordinary shares in Austminex Ltd which is
listed on the Australian Stock Exchange.
On 7 February 2005, the Parent Entity
announced an initial geochemical sampling
program recently conducted at the Mantos
Grandes prospect in Chile, have confirmed the
existence of copper-gold-silver-molybdenum
geochemical anomalies in areas adjacent to
the old underground workings. A total of 22
soil samples were collected from geological
target areas in order to assess the
prospectivity of areas outside the known skarn
deposit. Anomalous Cu values were found in
each of the soil samples, and ranged from 550
to 59,700 ppb (low detection limit 10 ppb).
Silver values ranged from 2.3 to 235ppb (low
detection limit 0.1 ppb).

On 21 February 2005, the Parent Entity
announced that after further discussions with
relevant parties it is now planning to move to
100% ownership of the Chacarilla Copper
Project as announced on the 18th October
2004.

On 15 March 2005, the Parent Entity allotted
and issued 50,000,000 fully paid ordinary
shares in the Parent Entity for 1.2 cents per
share in cash. The issue of these shares was
subsequently ratified at the general meeting of
shareholders held on 12 May 2005.
On 12 May 2005, the Parent Entity issued 448
convertible notes redeemable on 11 May 2007
of $1,000 each which earn interest of 9% per
annum. These notes are convertible at the
lenders discretion to fully paid ordinary shares
in the Parent Entity at the lower of 1.2 cents
per share or 80% of the average market price
for the 5 business days prior to the date of
conversion. The funds raised from this facility
were for the repayment of existing debt. The
issue of these convertible notes was approved
at the general meeting of shareholders held on
12 May 2005.

On 12 May 2005, the Parent Entity issued
5,000,000 fully paid ordinary shares in the
Parent Entity and issued 5,000,000 options to
acquire shares in the Parent Entity expiring on
29 November 2006. Each option would entitle
the holder to acquire one fully paid ordinary
share in the Parent Entity for 2 cents. These
shares and options were issued free for
services rendered. The issue of these options
was approved by the General Meeting of
shareholders of the Company held on 12 May
2005.

On 12 May 2005, the Parent Entity issued
10,000,000 options to Mr John Corr, a director
of the Parent Entity, expiring on 31 May 2010.
Each option would entitle the holder to acquire
one fully paid ordinary share in the Parent
Entity for 2 cents. These shares and options
were issued free. The issue of these options
was approved by the General Meeting of
shareholders of the Company held on 12 May
2005.

On 19 May 2005, the Parent Entity allotted
and issued 50,000,000 fully paid ordinary
shares in the Parent Entity for 1.5 cents per
share in cash. The issue of these shares was
approved at the general meeting of
shareholders held on 12 May 2005.
On 20 May 2005, the Parent Entity allotted
and issued 50,000,000 fully paid ordinary
shares in the Parent Entity for 1.5 cents per
share in cash.

SIGNIFICANT EVENTS SUBSEQUENT TO
BALANCE DATE
On 26 August 2005, the Company allotted and
issued 5,000,000 fully paid ordinary shares in
the Company for 1.4 cents per share, pursuant
to the exercise of 5,000,000 options expiring
on 25 August 2005.

DIRECTORS’ REPORT
4
No other matters or circumstances have
arisen since the end of the financial year
which significantly affected or may
significantly affect the operations of the
Consolidated Entity, the results of those
operations, or the state of affairs of the
Consolidated Entity in subsequent financial
years.

LIKELY DEVELOPMENTS

The directors intend to actively pursue:
· Agreement among the partners in the
Chacarilla Copper Project to restructure
this project to facilitate its sale or
development.
· Acquisition and development of the
Anaconda Copper / Silver Project.
· Other projects in South America.

ENVIRONMENTAL ISSUES
The Consolidated Entity's operations are
subject to environmental regulation in Bolivia
and in Western Australia. The Consolidated
Entity continues to comply with these
regulations.

INFORMATION ON DIRECTORS
JOHN FRANCIS CORR
CHAIRMAN (EXECUTIVE)
Qualifications and Experience
Mr Corr has an honours degree in Law and
degrees in Commerce and Arts. Mr Corr has
worked with a number of major Australian
listed companies and has been extensively
involved in the stockbroking and investment
banking sectors.
Directorships of other listed companies in the
3 years prior to the end of the Financial Year:
Biron Capital Ltd (appointed 20 December
2004).
Interest in shares
and options:
2,750,000 ordinary shares in Sundance
Resources Ltd, 750,000 options expiring 29
November 2006 in the Parent Entity and
10,000,000 options expiring 31 May 2010 in
the Parent Entity.
Directors meetings
attended:
Attended 10 of the 10 meetings held during
the financial period while he was a director.
Remuneration
Remuneration earned by entities associated
with Mr Corr from the Parent Entity during the
financial year consisted of salary and
consulting fees of $39,310 superannuation
contributions of $2,312 and options to acquire
shares in the Parent Entity valued at
$129,554. Remuneration is based on fees
approved by the Board of directors of $9,000
per month in total.

STEPHEN JOHN DOBSON
EXECUTIVE DIRECTOR
Qualifications and Experience:
Mr Dobson has more than 20 years
experience in investment banking and
international capital management. From 1987
to 2001 he held a range of positions as
Managing Director of leading global
investment bank Merrill lynch & Co. His
responsibilities had him based in Sydney, New
York, London, Singapore and finally Perth
Australia. During this tenure his duties covered
a full range of debt and equity transactions for
Governments and corporations located across
many jurisdictions. Prior to joining Sundance
Resources Ltd he advised and was a director
of several Australian and US based financial
management firms with special focus on the
global resources sector. He is a foundation
director of Perth based advisory firm Capital
Investment Partners and he holds a Bachelor
of Commerce degree from the University of
Western Australia.