energy ventures

annual report

2015

CORPORATE DIRECTORY

DIRECTORS

Mr. Alasdair Cooke (Executive Chairman)

Mr. Gregory (Bill) Fry (Executive Director)

Mr. Michael Curnow (Non-Executive Director)

COMPANY SECRETARY

Mr. Steven Jackson

REGISTERED OFFICE

Suite 1

245 Churchill Avenue

Subiaco WA 6008

SHARE REGISTRY AUDITOR

Link Market Services Limited BDO Audit (WA) Pty Ltd

Level 4, Central Park 38 Station Street

152 St Georges Terrace Subiaco WA 6008 Perth WA 6000

STOCK EXCHANGE LISTING SOLICITORS

Energy Ventures Limited shares are listed Fairweather Corporate Lawyers on the Australian Stock Exchange (ASX: EVE) 595 Stirling Highway

Cottosloe WA 6011

BANKERS

www.energyventures.com.au HSBC Bank Australia Limited

ABN: 89 106 523 611 190 St Georges Terrace

Perth WA 6000

CONTENTS

Chairman's Letter 1

Operations Review 2

Director's Report 8

Director's Declaration 14

Auditor's Independence Declaration 15

Independent Audit Report 16

Consolidated Statement of Comprehensive Income 18

Consolidated Statement of Financial Position 19

Consolidated Statement of Changes in Equity 20

Consolidated Statement of Cash Flow 21

Notes to the Financial Statements 22

Shareholder Information 37

CHAIRMAN'S LETTER

Dear Shareholder,

This year has seen the Company investigating new investments outside our previous focus on mineral resources in a move toward emerging technology opportunities. This shift is driven by the subdued outlook for much of the resources sector and increased interest amongst our existing shareholders and new investors for opportunities in the emerging technologies.

The Company has spent the recent months reviewing several technology investment opportunities that cover a broad cross‐section of business sectors including human resources, data storage and security, agriculture, health and wellness. Integral to our pursuit of these new investments has been the Company's appointment of Mr Ben Rohr to the Company in the role of Investment Manager to assist the Company with its new focus. Mr Rohr who has recently returned from working in New York has a background in technology start‐ups as well as being a Charted Accountant with experience in banking, property and financial services.

As part of the re‐focus of the Company we are seeking approval at the upcoming Annual General Meeting to change the Company's name to EVE Investments Limited. The new name for the Company will better represent the evolution of the Company's investment strategy going forward.

In addition to the changes outlined above, the Company has recently flagged to shareholders a proposal to proceed with an in‐specie distribution of our 100% owned investment in Aurora Uranium Limited. This will allow all current shareholders in EVE to maintain their current level of ownership in the Aurora Uranium Project. Aurora is one of the largest undeveloped uranium projects in the USA, with over 40Mlbs in resource and an initial project scope for production of 2Mlbs U308 per annum with an initial mine life of greater than 10 years. This project remains a highly strategic asset in the world's largest market for uranium fuel where over 95% of nuclear fuel is imported, with nuclear energy contributing around 20% of the power generated in the USA. Whilst it has been a very difficult past 4 years for all investors in the uranium business, the fundamental business case for uranium remains as strong now as ever and the market price for uranium is showing signs of recovery. Aurora remains an attractive project for development once we see some improvement in uranium prices.

The in‐specie distribution will be put to shareholders at the Annual General Meeting and we hope that shareholders will see the benefits to the Company's decision to distribute the shares back to the shareholders. Aurora Uranium will be run as a low‐cost unlisted public company, allowing all shareholders to preserve their interest in this uranium asset whilst retaining your investment in the Company as it pursues exciting new technology focussed opportunities for the benefit of all shareholders

On behalf of the Board of Directors, I wish to thank all shareholders for your patience over the last year and hope you look forward to this new stage in the Company's life.

Yours Sincerely

Alasdair Cooke Executive Chairman

New Investment Opportunities

Energy Ventures Limited ('EVE' or 'the Company') is currently in advanced negotiations for an investment in a medical technology enterprise. At the present time the negotiations are incomplete and subject to conditions and commercial confidentiality. The Company will keep the market informed of any material development from the negotiations.

The Company is also currently reviewing several technology investment opportunities that cover a broad cross‐section of business sectors including human resources, data storage and security, agriculture, health and wellness.

To assist with the Company's current focus on the technology sector, during the quarter it appointed Mr Ben Rohr to the position of Investment Manager for an initial period of 12 months. Mr Rohr's responsibilities include both sourcing and appraisal of new investment opportunities for the Company.

Mr Rohr has recently been working in New York where he was co‐founder of a technology start‐up that developed a genetics based breeding algorithm which became the core technology in a gaming platform. Previously, whilst in the US, he reviewed and implemented IT data capture and reporting systems for private enterprise. In addition to his technology background Mr Rohr is a qualified Chartered Accountant who has experience in banking, property, financial services and consulting in Europe, Asia and Australia.

Aurora Uranium Limited

The Company is planning to conduct an in‐specie distribution of wholly owned subsidiary, Aurora Uranium Limited. Aurora Uranium is an Australian registered public company which, through its US subsidiary Oregon Energy LLC, holds 100% of the Aurora Uranium Project in southeast Oregon. Aurora Uranium also holds approximately 4.5m shares in African Energy Resources Ltd which, with its joint venture partner First Quantum Minerals Ltd, is progressing feasibility studies on the Sese Power Project in Botswana.

The in‐specie distribution is part of a reorganisation of the Company's investments associated with the decision to pursue the new investment in a medical technology. The proposed distribution of the key investment in uranium is designed to allow existing shareholders to retain exposure to this investment with minimal further dilution of equity and very low ongoing holding costs.

Aurora Uranium Project

The Aurora uranium project is a volcanic‐hosted uranium deposit located in the southeast part of Oregon, USA. Previous exploration on the deposit, including detailed drilling, showed that a significant uranium resource occurs within a near‐surface, flat‐lying zone of mineralisation that is potentially amenable to extraction by open pit methods.

The Aurora project is located in a historical mining area, approximately 5 km to the north of the Nevada border and approximately 15 km to the west of the town of McDermitt, where the Company has a base of operations. The project area comprises 116 federal unpatented lode mining claims and one State of Oregon Prospecting Permit application, covering an area of approximately 13.34 square km.

The project is located in a historical mining district and has excellent access to existing infrastructure. Technical feasibility studies on the viability of the deposit are in progress, in parallel with the advancement of environmental baseline studies and permitting of the project with both state and federal agencies.

Diagram 1: Location diagram for the Aurora uranium project showing local infrastructure and previous mine sites

Aurora Uranium deposit summary:

1 Main zone estimated using a 300 ppm eU3O8 cut‐off 2 Halo zone estimated using a 100 ppm eU3O8 cut‐off

Note: Appropriate rounding applied

Results of the previous feasibility work completed suggest that the Aurora project has potential to be developed as a low‐cost conventional open pit mine with co‐located processing plant producing around 2 Mt eU3O8 per annum over a 10 year mine life. The current uranium price would not support development at this point. However, given the level of new reactor builds and potential supply side constraints the Company remains optimistic for an improved outlook in the sector.

Picture 1: Diamond drilling at the Aurora uranium project

Mining is expected to be low cost due to the soft sedimentary rock overburden and low stripping ratio of the uranium deposit. A simple scrubbing beneficiation process appears to both upgrade the mineralisation and allow rejection of a coarse, low‐grade waste component. Scrubbing could also potentially contribute to a reduction in crushing and grinding costs, with the majority of uranium occurring within finer size fractions. The Company continues to assess the leaching characteristics of the mineralisation to determine typical uranium recoveries.

Existing power and transport infrastructure, plus the nearby town of McDermitt, indicate reductions in typical capital expenditure requirements are possible and greatly simplify access to the project area. Furthermore, the project has access to skilled labour in the immediate region, which also has excellent services and support for a mining operation at the appropriate point.

Diagram 2: Aurora uranium project cross‐section @ 10080mE

Diagram 3: Location diagram for Aurora uranium project showing prospective infrastructure layout

EVE holds a 35% interest in Wayland Copper, which holds the Ballek copper‐gold in Northern Sweden. Beowulf Mining Plc, the joint venture partner and manager of the project, is currently developing a work programme for the remainder of 2015 and an associated budget. EVE does not currently plan to contribute funds to the next round of work and its interest in the project will be diluted accordingly.

EVE also holds approximately 30% in UK incorporated Agricola Resources Plc. Agricola is intending to undergo a corporate restructure and is seeking a new project.

Competent person's statement

The Australian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations and guidelines for public reporting in Australasia of exploration results, mineral resources and ore reserves. The information contained in this report has been presented in accordance with the JORC Code and references to 'indicated and Inferred Resources' are to those terms as defined in the JORC Code.

Information in this report relating to Exploration Results and Mineral Resources has been compiled and reviewed by John Hasleby (a consultant to Energy Ventures Limited) who is a member of the Australian Institute of Mining and Metallurgy. Mr Hasleby has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hasleby consents to the inclusion of the data in the form and context in which it appears.

energy ventures limited

ABN 89 106 523 611

FINANCIAL REPORT 30 JUNE 2015

The Directors present their report together with the financial report of Energy Ventures Limited ('the Company' or 'EVE') and the Company and its controlled entities ('Group' or 'Consolidated Entity'), for the financial year ended 30 June 2015.

1. Directors and Company Secretary

   The Directors and Company Secretary in office at any time during or since the end of the financial year are:

   
   

   Mr Alasdair Cooke, Executive Chairman Mr Gregory (Bill) Fry, Executive Director Mr Michael Curnow, Non‐Executive Director Mr Steven Jackson, Company Secretary

   
   

   Directors' Meetings

   
   

   Board of Directors* Present Held		Remuneration Committee Present Held		Audit Committee Present Held
   6	6	‐	‐	‐	‐
   6	6	‐	‐	‐	‐
   6	6	‐	‐	‐	‐

   Alasdair Cooke Gregory Fry Michael Curnow

   *Includes meetings by circular resolution.

   Directors and Company Secretary Mr Alasdair Cooke BSc (Hons) | Executive Chairman

   Mr Cooke is a qualified geologist and has been involved throughout his career in mineral exploration and corporate development, including eight years spent with BHP Minerals Business Development Group and over fifteen years managing public resource companies.

   
   

   Mr Cooke is a founding partner of the Mitchell River Group, which over the past fifteen years has established a number of successful mining projects and resources companies, developing greenfield mines in Australia, Africa and South America.

   
   

   Other current directorships Special responsibilities

   African Energy Resources Limited Anova Metals Limited

   Executive Chairman Member of the remuneration committee

   
   

   Former directorships in the last three years Interests in shares and options

   Exco Resources Limited (2001‐2012) 137,133,629 ordinary shares

   
   

   Mr Gregory Fry | Executive Director Mr Fry has more than 20 years corporate experience in the mining and resources industry, specialising in accounting, management, business development and general corporate activities. He has vast experience in project evaluation and development, project funding, management, finance and operations. Over the past 15 years, Mr Fry has been a Director of several private and public companies with activities ranging from funds management, minerals exploration, mining and quarrying.

   
   

   Other current directorships Special responsibilities

   African Energy Resources Limited Anova Metals Limited

   Member of the audit committee

   
   

   Former directorships in the last three years Interests in shares and options

   n/a 29,606,549 ordinary shares

   
   

   Mr Michael Curnow | Non‐Executive Director

   Mr Curnow brings extensive and valuable experience in the resources sector to the Company with his past positions including gold, platinum and mineral sands exploration. He has been involved in the ownership and management of a range of businesses in his native South Africa and Australia, including being the founding Director of Gallery Gold Limited and AGR Limited, along with being a Director of a number of other public mining companies, three of which are now producing.

   
   

   Other current directorships Special responsibilities

   Namibian Copper Limited Chairman of the audit and remuneration committees

   
   

   Former directorships in the last three years Interests in shares and options

   African Energy Resources Limited (2006‐2014) Citation Resources Limited (2012‐2015)

   8,060,855 ordinary shares

   
   

   Mr Steven Jackson BEc CPA | Company Secretary

   Mr Jackson is a member of CPA Australia who graduated from the University of Western Australia in 2008 with a Bachelor of Economics having majored in International Business Economics and Money and Banking. Mr Jackson has been with Energy Ventures since 2008 and was appointed to the role of Company Secretary in May 2012.

2. Review of Operations

   Energy Ventures is an ASX listed investment company with a focus on technology enterprise investment opportunities. The Company is currently reviewing several technology investment opportunities that cover a broad cross‐section of business sectors including human resources, data storage and security, agriculture, health and wellness.

   
   

   In June, the Company appointed Mr Ben Rohr to the position of Investment Manager, his responsibilities include both sourcing and appraisal of new investment opportunities for the Company. Mr Rohr, a qualified Charted Accountant, has recently returned from New York where he was co‐founder of a technology start‐up that developed a genetics based breeding algorithm which became the core technology in a gaming platform. Previously, he has reviewed and implemented IT data capture and reporting systems for private enterprises.

   
   

   The Group ended the financial year with cash totalling $105,946 (2014: $345,981). A capital raising of A$400,000, before costs, was completed in early July.

   
   

   Aurora Uranium Limited

   Aurora Uranium holds the Company's 100% interest in the Aurora Uranium Project as well as 4.5m shares in African Energy Resources Ltd which, with its joint venture partner First Quantum Minerals Ltd, is progressing feasibility studies on the Sese Power Project in Botswana.

   
   

   The Aurora Uranium Project, located in southeast Oregon, is one of the largest undeveloped uranium deposits in the country. Mineralisation is hosted by a highly altered sequence of flat‐lying volcanic rocks that may be amenable to mining extraction by open pit methods at very low cost due to the low waste to ore ratio. Initial leach testwork by previous operators and EVE have shown potentially economic extraction of the uranium into solution by acid leaching at atmospheric temperature and pressure, though further work is required to optimise the leach regime and final flowsheet. The metallurgical test work programme on composite ore samples continued through the year.

   
   

   In June, the Company announced it is planning to conduct an in‐specie distribution of Aurora Uranium Limited. The proposed distribution is designed to allow existing shareholders to retain exposure to this investment with minimal further dilution of equity and very low ongoing holding costs, whilst the Company purses new investment opportunities. The in‐specie will be subject to shareholder approval at a forthcoming meeting of the Company's shareholders.

   
   

   Other Investments

   The Company holds a 35% interest in Wayland Copper, which holds the Ballek copper‐gold in Northern Sweden. Beowulf Mining Plc, the joint venture partner and manager of the project, is currently developing a work programme for 2015‐2016 and an associated budget. EVE does not currently plan to contribute funds to the next round of work and its interest in the project will be diluted accordingly.

   
   

   EVE also holds approximately 30% in UK incorporated Agricola Resources Plc. Agricola is intending to undergo a corporate restructure and is seeking a new project.

   
   

   The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 'JORC Code') sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. References to 'Measured, Indicated and Inferred Resources' are to those terms as defined in the JORC Code (2004 edition).

   
   

   Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Hasleby (a consultant to Energy Ventures Limited) who is a member of The Australasian Institute of Mining and Metallurgy. Mr Hasleby has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hasleby consents to the inclusion of the data in the form and context in which it appears.

   
   

3. Remuneration Report - Audited

   This Remuneration Report outlines the remuneration arrangements which were in place during the year, and remain in place as at the date of this report, for the Directors and key management personnel of Energy Ventures Limited.

   
   

   The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.

   
   

   Principles of compensation

   The objective of the Group's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders, and conforms with market practice for delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:

   • competitiveness and reasonableness;

   • acceptability to shareholders;

   • performance linkage / alignment of executive compensation;

   • transparency; and

   • capital management.

     The Group has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the organisation. Alignment to shareholders' interests:

   • has economic profit as a core component of plan design;

   • focuses on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering constant return on assets as well as focusing the executive on key non‐financial drivers of value; and

   • attracts and retains high calibre executives.

     
     

     Alignment to program participants' interests:

   • rewards capability and experience;

   • reflects competitive reward for contribution to growth in shareholder wealth;

   • provides a clear structure for earning rewards; and

   • provides recognition for contribution.