LEYSHON RESOURCES LIMITED

ABN 75 010 482 274

FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2015

CORPORATE DIRECTORY

Directors

Paul Atherley- Non-Executive Chairman Corey Nolan - Non-Executive Director Richard Seville - Non-Executive Director

Company Secretary

Murray Wylie

Principal and Registered Offices Australia

Suite 3, Level 3

1292 Hay Street

West Perth WA 6005 Telephone: +618 9321 0077

Facsimile: +618 9322 4073

Auditor

RSM Australia Partners

Bankers

National Australia Bank

Share Register

Computershare Investor Services Pty Ltd Level 11

172 St Georges Terrace Perth WA 6000 Australia

Telephone: 1300 787 272

International: +618 9323 2000

Facsimile: +618 9323 2033

Solicitors

Hopgood Ganim Lawyers - Brisbane

Stock Exchange Listing Australian Securities Exchange Home Branch - Perth

2 The Esplanade

Perth WA 6000

ASX Code

LRL

Index

Directors' Report 3

Auditor's Independence Declaration 15

Directors' Declaration 16

Consolidated Statement of Profit or Loss and Other Comprehensive Income 17

Consolidated Statement of Financial Position 18

Consolidated Statement of Changes in Equity 19

Consolidated Statement of Cash Flows 20

Notes to the Financial Statements 21

Independent Auditor's Report 47

DIRECTORS' REPORT

The Directors of Leyshon Resources Limited present their report on the Group consisting of Leyshon Resources Limited ("the Company" or "Leyshon Resources") and the entities it controlled at the end of, or during, the year ended 31 December 2015 ("Group"). All amounts presented in the annual report including the Directors' Report are presented in United States Dollars (US$) unless otherwise indicated.

DIRECTORS

The following persons were Directors of the Company during the year ended 31 December 2015 and up to the date of this report:

Paul C Atherley Corey Nolan Richard P Seville

INFORMATION ON DIRECTORS

Paul C Atherley

Non-Executive Chairman from 1 February 2015

Non-Executive Director from 14 February 2014 until 1 February 2015

Managing Director from date of appointment 4 May 2004 until 14 February 2014 Qualifications - BSc (Hons), MappSC, MBA, MAusIMM, ARSM

Mr Atherley graduated in mining engineering from the Royal School of Mines, Imperial College in 1982 and has over 30 years industry experience. He was an Executive Director of the Investment Bank arm of HSBC Australia where he undertook a range of advisory roles in the resources sector. During this period he completed a number of acquisitions and financings of resource projects in Australia, South- East Asia, Africa and Western Europe.

Mr Atherley is an experienced Managing Director with well established relationships in the London and Australian capital markets. He was based in Beijing for ten years until 2015 and pioneered the Company's former activities in China. During this period he has built the Leyshon Management team and established extensive government and industry relationships. He was the Chairman of the British Chamber of Commerce in China and Vice Chairman of the China Britain Business Council in London and has wide ranging international media experience.

During the three year period to the end of the financial year, Mr Atherley has held a directorship with Leyshon Energy Limited (January 2014 - present) and Berkeley Energia Limited (July 2015 - present).

Interest in shares: 31,330,000 Interest in options: Nil

Corey Nolan

Non-Executive Director from 8 May 2015

Managing Director from date of appointment 14 February 2014 until 8 may 2015 Qualifications - B Com, MMEE, GAICD

Nr Nolan has more than twenty years of diverse experience in the resources sector. This has included experience in mining operations, global resource evaluation, and the financing and development of new opportunities in Australia, South Africa, Asia and South America.

Mr Nolan is a qualified mineral economist. He has held specialist roles as an equities analyst in the mining and natural resources sector of stock broking firms Morgan Stanley and Wilson HTM. During this period he undertook detailed coverage of the Australian and global resources sector including the commodities market.

Mr Nolan has been a Director at PWC in the corporate finance and valuations practice, specialising in resources industry valuations for Australian and global resources firms.

During the three year period to the end of the financial year, Mr Nolan has held directorships with Elementos Limited (July 2009 - present).

Interest in shares: Nil Interest in options: 9,000,000