AURORA MINERALS LIMITED

ABN 46 106 304 787

INTERIM FINANCIAL REPORT

31 December 2015

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

CORPORATE DIRECTORY

DIRECTORS AUDITOR

Mr Phillip Jackson Non-executive Chairman RSM Australia Partners Mr Martin Pyle Managing Director 8 St Georges Terrace Mr Peter Cordin Non-executive Director PERTH WA 6000

Mr Tim Markwell Non-executive Director

COMPANY SECRETYARY SHARE REGISTRY

Mr Eric Moore

Computershare Investor Services

REGISTERED OFFICE Level 11, 172 St Georges Terrace

Suite 2, Level 2 PERTH WA 6000

20 Kings Park Road Telephone: +61 8 9323 2000

WEST PERTH WA 6005 Fax: +61 8 9323 2033

Telephone: +61 8 6143 1840

Fax: +61 8 9321 4692

Web Site: www.auroraminerals.com

POSTAL ADDRESS ASX CODE

PO Box 644 ARM

WEST PERTH WA 6872

CONTENTS

DIRECTORS' REPORT 3

STATEMENT OF COMPREHENSIVE INCOME 7

STATEMENT OF FINANCIAL POSITION 8

STATEMENT OF CHANGES IN EQUITY 9

STATEMENT OF CASH FLOWS 10

NOTES TO THE FINANCIAL STATEMENTS 11

DIRECTORS' DECLARATION 16

INDEPENDENT AUDITOR'S REPORT 17

AUDITOR'S INDEPENDENCE DECLARATION 19

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

DIRECTORS' REPORT

DIRECTORS' REPORT

Your directors submit their report for the half-year ended 31 December 2015.

DIRECTORS

The names of the Directors of Aurora during the whole of the financial period and up to the date of this report are: Mr Phillip Jackson (Chairman)

Mr Martin Pyle (Managing Director) Mr Peter Cordin (Director)

Mr Tim Markwell (Director)

PRINCIPAL ACTIVITIES

The principal activities of the group are mineral exploration and assessing, and if appropriate, acquiring either directly or indirectly exploration and mine development projects worldwide.

OPERATING RESULTS

The operating loss after tax after minority interests for the half-year ended 31 December 2015 was $982,130 (2014:

$825,558). A total of $468,797 (2014: $488,503) related to exploration expenditure written off.

DIVIDENDS

No dividends were paid during the period and the directors do not recommend the payment of a dividend.

REVIEW OF OPERATIONS

Aurora Minerals Limited and its subsidiary and associate companies conduct exploration across three continents with a focus on South Korea (Peninsula Mines Limited), West Africa (Predictive Discovery Limited and Golden Rim Resources Limited) and Western Australia (Aurora Minerals Limited).

Corporate

During the half year, Aurora continued to focus on business development, including supporting the expansion of the portfolio of South Korean exploration projects operated by Peninsula Mines Limited (Peninsula).

Aurora has continued to provide working capital to Peninsula. Peninsula undertook a capital raising of $305,000 to third parties and in addition part of Aurora's loan was converted to equity (28,300,000 shares and 14,150,000 0.5c options were issued to Aurora). In March 2016 Peninsula announced that it had received binding subscription agreements for a placement of shares to raise up to $1.58 million. Aurora and Peninsula also announced an

Agreement that Aurora would convert the remainder of its approximately $500,000 loan to equity subject to Peninsula shareholder.A1 Post placement and loan conversion Aurora's equity holding in Peninsula is estimated to be approximately 32.2%.

Aurora retained a 43.10% interest in Predictive Discovery after contributing its pro-rata share to that company's Rights Issue in December 2015, which was fully subscribed.P1,P2

Peninsula Mines Limited (Aurora 35.8%)

The Daehwa Project is located about 100 km southeast of Seoul in Chungbuk Province in Central South Korea. The Daehwa project consists of two former Mo-W mines, Daehwa and Donsan and is comprised of three Mining Rights over Tenements 76166, 77226 and 77227, with granted tenure until 2027-2028 subject to meeting performance conditions.

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

DI REC T O RS' REPORT

A single Diamond core was undertaken with the support of Korea Resources Corporation (KORES). The hole failed to reach the targeted footwall molybdenum lodes but did intersect a number of hangingwall molybdenum, cassiterite and tungsten bearing veinsD1.

With the support of Aurora Minerals, Peninsula continues to pursue business development in South Korea, a significantly underrated jurisdiction for metals and mining. Peninsula secured tenure applications over a large number of tenements prospective for both graphite and lithium mineralisation. During 2016, the Company plans to undertake the following works subject to the Company having sufficient funding capacity:

• Complete reconnaissance mapping and rock chip sampling across the new tenement applications.

• Preliminary metallurgical testwork of lithium and graphite samples to determine suitable for Lithium ion battery grade feedstock.

• Select suitable targets for Diamond drilling

• Rationalise the new tenement portfolio with the aim of completing Mineral Deposit Surveys and securing long term tenure over the most prospective ground by midyear.

Predictive Discovery Limited (Aurora 43.10%)

During the half year to December 2015, Predictive focussed on a new JV agreement with Ivorian company, XMI SARL, securing additional gold tenure in northern Côte D'Ivoire. The Bobosso - Wendene tenements cover a large, underexplored, NNE-trending gold system, with historical RC and Diamond drilling results including 5m at 20.6g/t Au from 48m, indicative of significant, near-surface gold potential. Predictive will fund and manage the exploration,

starting with geological mapping and re-logging drill holes to identify new anomalies and drill targets. This work will commence in the second quarter of 2016. P3,P4

Predictive's ongoing joint venture agreement with Toro Gold Limited, a UK based company, enabled Toro to earn 51% interest in Predictive's Ivoirian subsidiary, Predictive Discovery Cote D'Ivoire SARL, by spending US$1 million on exploration. Toro have progressed exploration over the four tenements by following up high grade rock chip samples (up to 98g/t Au at Kokoumbo Permit) with systematic soil sampling, which has defined a number of gold-in-soil anomalies (each over 3km long). Drilling is planned to commence in the first quarter of 2016.P5,P6,P7,P8

Predictive's work in the Samira Hill Greenstone Belt in Eastern Burkina Faso has enabled the definition of an Exploration Target (9.4 to 10.4 million tonnes averaging 1.5 to 1.7g/t Au) to supplement the existing Bongou Gold Resource. The prospects that make up the Exploration Target are open at depth and along strike and all located within 10km of Bongou, with additional prospects in the vicinity providing potential to expand this Target.

Golden Rim Limited (Aurora 13.4%)

Golden Rim has focussed on their Korongou Project located in the Samira Hill Greenstone Belt of eastern Burkina Faso, adjacent to Predictive's ground. Golden Rim is in the process of earning a 90% interest from a local Burkina operator which currently mines on a small scale within the permitG2. Golden Rim has defined an Exploration Target (non-JORC) at the Korongou Project of 7.95 to 9.72 million tonnes averaging between approximately 1.8 to 2.2 g/t Au and

containing approximately 500,000 to 611,000 ounces of gold.

In March 2016 Golden Rim announced it had restructured the sale of its Balogo gold project bringing forward sale proceed of US$3M now due for payment by the end of March. In addition, MNG Gold Burkina a subsidiary of Turkish Group MNG which is acquiring 100% of Balogo, has committed to a joint venture on the Korongou Project to earn 70% through the expenditure of US$2.5M.

Aurora Minerals' Western Australian Projects:

Camel Hills Joint Venture (Peninsula 49.75% / Aurora Minerals Limited 50.25%)

Camel Hills is located at the north-western margin of the Archaean Yilgarn Craton where it meets the Proterozoic Errabiddy Shear Zone in the southern Gascoyne Region of Western Australia. Peninsula has a 49.75% participating interest in the JV from Aurora Minerals Limited (50.25%).

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

DI REC T O RS' REPORT

Activities for the period consisted of ongoing data review and analysis. The 2012 Diamond drilling at Innouendy copper-nickel prospect was assayed for mineralisation associated with ultramafic volcanics. The results determined a high grade magnetite iron ore up to 46% Fe, with titanium up to 0.9% between 178m and 201m downhole. Relogging this section of the drill core enabled the interpretation of extremely high grade metamorphism which appears to have remobilised sulphide mineralisation, as determined from the evident structures. Drilling at this first-order bullseye electro-magnetic and magnetic anomaly has not been sufficient to determine where the remobilised mineralisation might have accumulated. However, another EM anomaly is located to the SW of the primary Innouendy target and

awaits investigation by drilling.A1

Glenburgh Project (ARM 100% owned)

The Glenburgh Project is located in the southern Gascoyne Province of Central Western Australia.

The Project focuses on the convergence zone of the major through-going structures, namely the Deadman Fault and Ti Tree Shear, both associated with precious and base metals mineralisation. No field activities were undertaken during the half year.

Summary List of all previous ASX releases referenced in this report. Aurora Minerals Limited

A1. PSM: Placement to Raise $1.58 M For Lithium and Graphite Targets, 10 March 2016

Peninsula Mines Limited

D1. Quarterly Activities Report Ending 31 December 2015, 11 January 2016 D2. Applications over Historical High Grade Graphite Mine, 11 February 2016 D3. Lithium Prospect Enhanced by Magnetic High, 1 February 2016

Predictive Discovery Limited

P1. Rights Issue Fully Subscribed, 14 December 2015

P2. Notice of Change of Interests of Substantial Shareholder (ARM), 14 December 2015

P3. Predictive Enters Agreement on Major Gold Mineralised System in Côte D'Ivoire, 28 October 2015 P4. Permit Granted in Côte D'Ivoire over Large Gold Mineralised System, 16 December 2015

P5. High Grade Gold Results From Côte D'Ivoire JV, 15 September 2015

P6. Infill Gold-In-Soil Results Strengthen Côte D'Ivoire Targets, 23 November 2015

P7. Excellent New Gold Exploration Results from Three Cote D'Ivoire Permits, 10 November 2015 P8. New 6km Long Gold Soil Anomaly in Northern Cote D'Ivoire, 20 November 2015

P9. Exploration Target Near Bongou, 3 September 2015

Golden Rim Resources

G1. Golden Rim Resources Quarterly Activities Report for the Period ended 31 December 2015, 29 January 2016

Competent Person Statement

The information in this report that relates to the exploration results and Mineral Resources of Aurora, Peninsula, Golden Rim and Predictive is summarised from publicly available reports as released to the ASX of the respective companies. The results are duly referenced in the text of this report and the source documents are listed in the Summary.

All the information in this half yearly report based on information compiled prior to 1 December 2013 was produced under the reporting directions as set out in the 2004 ed. JORC code. All subsequent releases have been compiled under the guidelines for reporting as set down under the 2012ed. JORC code. The information summarised herein has not changed materially from the greater detail that was originally disclosed in earlier public releases and which has been duly referenced in this report. The Company confirms that it is not aware of any new information or data that materially affects the information included in this announcement.

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

DI REC T O RS' REPORT

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the lead auditor's independence declaration as required by Section 307c of the Corporations Act 2001 is included within the Financial Report.

Signed in accordance with a resolution of Directors:

DIRECTOR

Perth, 15 March 2016

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Consolidated
Note	31 December 2015 $	31 December 2014 $
Revenue	2(i)	57,143	276,757
Administration expenses	2(ii)	(1,055,051)	(978,677)
Exploration and evaluation expenditure	(468,797)	(488,503)
Loss before tax	(1,466,705)	(1,190,423)
Income tax expense	-	-
Loss for the period from continuing operations	(1,466,705)	(1,190,423)
Other comprehensive income/(expenses)
Item that may be reclassified subsequently to operating result
Exchange differences on translating foreign controlled entities	66,758	6,284
Change in fair value of investment	(580,050)	(117,562)
Income tax relating to components of other comprehensive income	-	-
Total comprehensive loss for the period	(1,979,997)	(1,301,701)
Loss attributable to:
Non-controlling interest	(484,575)	(364,865)
Owners of the parent entity	(982,130)	(825,558)
(1,466,705)	(1,190,423)
Total comprehensive loss for the period is attributable to:
Non-controlling interest	(446,681)	(361,043)
Owners of the parent entity	(1,533,316)	(940,658)
(1,979,997)	(1,301,701)
Basic loss per share (cents per share)	(0.84)	(1.03)
Diluted loss per share (cents per share)	(0.84)	(1.03)

The accompanying notes form part of these financial statements.

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2015

Consolidated
Note	31 December 2015 $	30 June 2015 $
Current Assets
Cash and cash equivalents	5,160,869	5,547,036
Trade and other receivables	162,190	261,585
Other current assets	23,343	26,443
Total current assets	5,346,402	5,835,064
Non-Current Assets
Investments	3	386,700	966,750
Plant and equipment	173,925	215,997
Exploration and evaluation expenditure	-	-
Total non-current assets	560,625	1,182,747
Total assets	5,907,027	7,017,811
Current Liabilities
Trade and other payables	340,849	526,446
Total current liabilities	340,849	526,446
Total liabilities	340,849	526,446
Net Assets	5,566,178	6,491,365
Equity
Issued capital	4	37,317,961	37,317,961
Reserves	11,865,168	12,113,356
Accumulated losses	(43,205,901)	(42,223,771)
Parent entity interest	6,977,228	7,207,546
Non-controlling interest	(411,050)	(716,181)
Total Equity	5,566,178	6,491,365

The accompanying notes form part of these financial statements.

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

Issued Capital	Change in ownership interest	Accumulated Losses	Revaluation Reserve	Foreign Currency Reserve	Share- based Payments	Non- controlling Interests	Total
CONSOLIDATED	$	$	$	$	$	$	$	$
At 1 July 2014	36,436,047	5,507,064	(39,260,631)	-	1,698	6,465,476	284,478	9,434,132
Loss for the year	-	-	(825,558)	-	-	-	(364,865)	(1,190,423)
Other comprehensive income	-	-	-	(117,562)	2,462	-	3,822	(111,278)
Total comprehensive loss for the year	-	-	(825,558)	(117,562)	2,462	-	(361,043)	(1,301,701)
Transactions with owners in their capacity as owners:
Share based payments	-	47,610	-	-	-	94,174	73,906	215,690
Issue of share capital	883,527	-	-	-	-	-	-	883,527
Expense of share issue	-	(1,277)	-	-	-	-	(1,983)	(3,260)
Change due to acquisition of subsidiary	-	-	-	-	-	-	2,826,287	2,826,287
Change due to issue of shares by subsidiary	-	(11,487)	-	-	-	-	11,487	-
At 31 December 2014	37,319,574	5,541,910	(40,086,189)	(117,562)	4,160	6,559,650	2,833,132	12,054,675
At 1 July 2015	37,317,961	5,570,216	(42,223,771)	-	(16,509)	6,559,650	(716,182)	6,491,365
Loss for the year	-	-	(982,130)	-	-	-	(484,575)	(1,466,705)
Other comprehensive income	-	-	-	(580,050)	28,863	-	37,895	(513,292)
Total comprehensive loss for the year	-	-	(982,130)	(580,050)	28,863	-	(446,680)	(1,979,997)
Transactions with owners in their capacity as owners:
Share based payments	-	-	-	-	-	37,583	67,514	105,097
Issue of share capital	-	742,273	-	-	-	-	1,056,096	1,798,369
Expense of share issue	-	(58,060)	-	-	-	-	(77,558)	(135,618)
Change due to issue of shares by subsidiary	-	(418,798)	-	-	-	-	(294,240)	(713,038)
At 31 December 2015	37,317,961	5,835,631	(43,205,901)	(580,050)	12,354	6,597,233	(411,050)	5,566,178

The accompanying notes form part of these financial statements.

AURORA MINERALS LIMITED INTERIM FINANCIAL REPORT Page 9

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER

Consolidated
31 December 2015 $	31 December 2014 $
Cash flows from operating activities
Other payments to suppliers and employees	(828,620)	(743,198)
Payments for exploration expenditure	(614,570)	(525,495)
Receipts from security deposits and bonds	-	6,060
Other revenue	10,267	167,823
Interest received	56,416	101,712
Net cash outflow from operating activities	(1,376,507)	(993,098)
Cash flows from investing activities
Proceeds from sale of plant and equipment	6,637	59,785
Payments for purchases of plant and equipment	-	(4,716
Payments for purchase of shares	-	(1,546,539)
Cash acquired on acquisition of subsidiary	-	1,514,494
Net cash inflow / (outflow) from investing activities	6,637	23,024
Cash flows from financing activities
Proceeds from issue of shares	1,035,332	215,335
Share issue transaction costs	(85,928)	-
Share buyback transaction costs	-	(1,983)
Net cash inflow from financing activities	949,404	(213,352
Net decrease in cash held	(420,466)	(756,722)
Cash at the beginning of the financial year	5,547,036	6,278,945
Effects of exchange rate changes on balances held in foreign currency	34,299	-
Cash at the end of the financial year	5,160,869	5,522,223

The accompanying notes form part of these financial statements.

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION

These general purpose interim financial statements for the half-year reporting period ended 31 December 2015 have been prepared in accordance with Australian Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Act 2001. The consolidated entity is a for-profit entity for financial reporting purposes under Australian Accounting Standards.

This interim financial report does not include full disclosures of the type normally included in an annual report. It is recommended that this financial report to be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Aurora Minerals Limited during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies have been consistently applied with those of the previous financial year and corresponding interim reporting period, except in relation to the matters disclosed below.

New and Revised Accounting Standards

The consolidated entity has adopted all of the new and revised Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these new and revised Accounting Standards and Interpretations has not resulted in a significant or material change to the consolidated entity's accounting policies.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the consolidated entity.

Consolidated
31 December 2015 $	31 December 2014 $
NOTE 2 - REVENUE AND EXPENSES
(i) Revenue
Interest received	56,575	164,052
Underwriting fee	-	100,000
Gain on sale of assets	-	6,829
Other revenue	568	5,876
57,143	276,757

(ii) Administration expenditure
Depreciation	52,639	14,335
Less: capitalised to exploration	(48,071)	(9,439)
4,568	4,896
Consulting fees	347,290	284,008
Salaries and wages (administration)	158,961	71,615
ASX, ASIC and related fees	49,822	47,991
Equity based compensation(i)	105,097	253,655
Rent and outgoings	50,980	65,867
Insurance and legal	17,152	59,524
Foreign exchange (gain)/loss	27,501	-
Other expenses	293,680	191,121
1,055,051	978,677

(1) In relation to the prior comparative period, share based compensation includes $37,965 in shares in controlled entity Peninsula Mines Limited which were issued as compensation for fees to Directors and Consultants foregone for the period 1 October to 31 December 2014. 4,788,406 shares were issued subsequent to the period end.

AURORA MINERALS LIMITED INTERIM FINANCIAL REPORT Page 11

AURORA MINERALS LIMITED AND CONTROLLED ENTITIES ABN 46 106 304 787

NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2015

NOTE 3 - INVESTMENTS
Consolidated
31 December 2015 $	30 June 2015 $
Shares in Golden Rim Resources Ltd at balance date (1)	386,700	966,750
(1) Shares are valued using a 20 day Volume Weighted Average Price (VWAP, based on closing ASX share prices centred on 31 December 2015. The directors have not permanently impaired the change in value of the investment in Golden Rim in the half-year to 31 December 2015, as at the approximate date of release of this report, the closing share price of Golden Rim is within the range of $0.005 to $0.006 per share, valuing the investment at approximately $1m.

NOTE 4 - EQUITY SECURITIES ISSUED

`	Consolidated
31 December 2015 $	30 June 2015 $
116,808,609 (June 2015: 116,808,609) fully paid ordinary shares	37,317,961	36,436,047

1. (i) Details of Equity - the Company

Shares	Listed Options	Unlisted Options
At 1 July 2014	101,833,573	-	20,300,000
Shares issued	14,975,036	-	-
Issue of options	-	-	5,750,000
Options expired/cancelled	-	-	(11,300,000)
At 31 December 2014	116,808,609	-	14,750,000

At 1 July 2015	116,808,609	-	14,750,000
Shares issued	-	-	-
Issue of options	-	-	-
Options expired/cancelled	-	-	(9,000,000)
At 31 December 2015	116,808,609	-	5,750,000

1. (ii) Details of Movements in Equity - The Company

   
   

   Date	Action	Type	Quantity	Issued To	Ex/Issue Price	Expiry Date
   15 Nov 15	Expiry	Options - unlisted	1,500,000	Directors	$1.005	15 Nov 2015
   22 Nov 15	Expiry	Options - unlisted	7,500,000	Directors	$0.500	22 Nov 2015

   
   

2. (i) Details of Equity - Peninsula Mines Limited

Shares	Listed Options	Unlisted Options
At 1 July 2014	191,820,923	-	56,850,000
Issue of shares in lieu of consideration	10,095,470	-	-
Options cancelled/expired	-	-	(15,150,000)
At 31 December 2014	201,916,393	-	41,700,000

At 1 July 2015	210,932,915	-	41,700,000
Issue of shares	61,140,000	-	-
Issue of shares as partial loan repayment	28,300,000	-	-
Issue of options	-	-	60,996,000
Optionscancelled/expired	-	-	(15,600,000)
At 31 December 2015	300,372,915	-	87,096,000