"Directors’ report (continued)Review and results of operations...

"Directors’ report (continued)
Review and results of operations (continued)
Process relating to Potential Sale of Indophil’s Tampakan Interest
Whilst the global financial crisis has, and continues, to reshape the global economy and its
participants, the fundamental reality facing the copper market has not altered. The needs of
developing economies are no less today, than before the global financial crisis. However, a
serious lack of discovery, following a decade of unprecedented exploration expenditure, coupled
with significant and persistent production shortfalls are beginning to emphasise the strategic
significance of the Tampakan project.
With the flexibility to pursue a range of bonafide sale/funding options, following the overwhelming
approval given by shareholders in November 2008, Indophil has proceeded to do exactly that.
Indophil is currently in discussion with a number of parties which have been granted access to a
full electronic data room. Indophil will update the market on any material developments as they
occur."

"The Group recorded a net loss after tax of $2.878m for the half-year compared to a net loss after
tax of $6.339m for the corresponding period last year. The improvement resulted from a significant
decrease in corporate costs compared with the same period last year.
At 30 June 2009, the Group held $60.230m in cash balances, a decrease of $16.356m compared
with the balance of $76.586m held at 31 December 2008. The decrease is predominantly
attributable to the Group’s funding commitment to the Tampakan project, of which $11.548m was
advanced to the project’s operating arm in Sagittarius Mines Inc. (SMI) during this period.
Indophil has sufficient cash to meet its budgeted 34.23% share of the Tampakan project costs
through to completion of the Final Feasibility Study (FFS) which is due in the second quarter of
2010."