Strandline Resources Limited ABN 32 090 603 642

Annual Report

For the year ended 30 June 2016

Board of Directors

Didier Murcia Non‐Executive Chairman Luke Graham Managing Director Richard Hill Executive Director Asimwe Kabunga Non‐Executive Director Tom Eadie Non‐Executive Director John Hodder Non‐Executive Director

Company Secretary

Geoff James

Registered and Principal Office

35 Richardson Street

West Perth, Western Australia 6005 Tel: (61 8) 9226 3130

Fax: (61 8) 9485 2070

Email: [email protected]

Postal Address

PO Box 1217

West Perth, Western Australia 6872

Website

Website: www.strandline.com.au

Country of Incorporation

Strandline Resources Limited is domiciled and incorporated in Australia

Auditors

BDO Audit (WA) Pty Ltd 38 Station Street

Subiaco, Western Australia 6008

Share Registry

Computershare Investor Services Pty Limited Level 11, 172 St George's Terrace

Perth, Western Australia 6000 Tel: (61 8) 9323 2000

Fax: (61 8) 9323 2033

Home Stock Exchange Australian Securities Exchange Limited Level 40, Central Park

152‐158 St George's Terrace Perth, Western Australia 6000

ASX Code: STA

Directors' Report 2

Auditor's Independence Declaration. 18

Consolidated Statement of Profit or Loss and Other Comprehensive Income 19

Consolidated Statement of Financial Position 20

Consolidated Statement of Changes in Equity 21

Consolidated Statement of Cash Flows 22

Notes to the Consolidated Financial Statements 23

Directors' Declaration 48

Independent Auditor's Report. 49

Shareholding Information. 51

Tenement Information 53

Mineral Resources and Ore Reserves Information 55

Strandline Resources Limited Annual Report 2016 1

The Directors of Strandline Resources Limited ("Strandline" or "the Company") submit the Annual Report on the Consolidated Entity ("Group") consisting of Strandline Resources Limited and the entities it controlled at the end of, or during, for the year ended 30 June 2016. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

Names of Directors

The names of the Directors of the Company during or since the end of the year are:

Mr Didier Murcia (appointed 23 October 2014) Mr Luke Graham (appointed 19 September 2016) Mr Richard Hill (appointed 23 October 2014) Mr Asimwe Kabunga (appointed 18 June 2015) Mr Tom Eadie (appointed 9 October 2015)

Mr John Hodder (appointed 8 June 2016)

Mr Keith (Mike) Folwell (resigned 1 March 2016) Mr Mark Hanlon (resigned 1 March 2016)

Information about the Directors and Officers

The names and particulars of the Directors of the Company during or since the end of the financial year are:

Didier Murcia, age 54, Non‐Executive Chairman

AM, B.Juris, LL.B

Independent Non‐Executive Chairman appointed 1 March 2016. Previously Non‐Executive Director from 23 October 2014 to 29 February 2016. Lawyer with over 25 years' legal and corporate experience in the mining industry. Awarded Order of Australia for services to the international community through support for the provision of medical and educational resources in Tanzania. He is currently Honorary Australian Consul for the United Republic of Tanzania. He is Chairman and founding director of Perth‐based legal group MPH Lawyers. Has held directorships in the following ASX listed companies over the past three years:

• Alicanto Minerals Limited (appointed Chairman May 2012)

• Centaurus Metals Limited (appointed April 2009, Chairman since January 2010)

• Cradle Resources Limited (resigned May 2016)

• Gryphon Minerals Limited (appointed July 2006)

Luke Graham, age 41, Managing Director and Chief Executive Officer

A.Dip (Hons) (Elec Eng), MAICD

Managing Director appointed 19 September 2016. Engineer with over 20 years' experience in the resources sector. Former Regional Manager of global minerals engineering and project delivery company Sedgman Pty Limited (a member of the CIMIC Group). Extensive experience in major project development and delivery including mineral sands projects, and successfully managing multi‐functional operations. Has not held any other directorships in ASX listed companies over the past three years.

Richard Hill, age 48, Executive Director

Strandline Resources Limited Annual Report 2016 2