Kangaroo Resources Limited

ABN: 38 120 284 040

ASX Code: KRL

ASX RELEASE 27 March 2015

KANGAROO RESOURCES LIMITED - ANTICIPATED IMPAIRMENT

Kangaroo Resources Limited (ASX: KRL) ('the Company') advises that it has conducted a preliminary review of the carrying value of its non-current assets as at 31 December 2014.
While the actual numbers have not yet been finalised, the Company believes the impact on the loss from continuing operations for asset impairment will be in the range of $A120 to A$135 million (after tax). The estimate is subject to further work to confirm the amount, approval by the Board and review by the auditors as part of the process of finalising the financial statements for the year ended 31
December 2014.
The anticipated impairment charge has arisen due to a combination of factors, including:-
- Lower than expected prices for coal and market outlook for further declines over the next 3 years;
- Potential Indonesian mining regulation changes, permitting and licensing issues, and further deferral of production.

Implications of Impairment

The Company advises that the expected impairment charge will have no cash flow consequences and no effects on any covenants in the Company's debt facilities.
The financial statements for the year ended 31 December 2014 are expected to be released on Wednesday 31 March 2015.

Ian Ogilvie

Managing Director

Kangaroo Resources Limited