FINDERS RESOURCES LIMITED ABN 82 108 547 413

FINANCIAL REPORT YEAR ENDED 31 DECEMBER 2015

CHAIRMAN'S STATEMENT

It gives me great pleasure to present the 2015 Annual Report for Finders Resources Limited.

The past 12 months has seen a period of significant transformation for Finders at our Wetar Copper Project in Indonesia, as we advance the construction of the 25,000 tonne per annum (t.p.a.) solvent extraction‐ electrowinning (SX‐EW) plant while continuing production of copper cathode from our 3,000 t.p.a plant. This expansion project was made possible by a US$162 million funding commitment from a consortium of lenders including BNP Paribas, Commonwealth Bank of Australia, HSBC and Societe Generale as well as US$45 million in project level equity from Daewoo International Corporation.

Notwithstanding the very tight construction schedule and logistical challenges operating in a remote location, it is a credit to our management and contractors that this project remains on budget with only a slight variation to the timeframe. We now expect to begin cathode production from the expansion project early in the second quarter of 2016, and this milestone will see Finders achieving its goal of becoming a significant and low‐cost copper cathode producer.

It was pleasing that our staff and contractors achieved a Lost Time Injury Frequency Rate of zero for the year and is a demonstration of our commitment to safety, even during such a busy construction period where the project workforce at times exceeded 800 personnel. Significantly, there were also no environmental non‐compliance issues reported throughout the year.

Finders has also been actively working with local communities on a number of initiatives targeting health and economic development. These programs included employment, agricultural initiatives and the provision of more accessible medical services. Our local residents now make up more than half of the total project workforce and have played a vital role during the construction phase at Wetar. It has been particularly gratifying to see the benefits that our employment and training programs have created for the local community.

Finally, I take this opportunity to thank my fellow Board members for their contribution over the past year, as well as all our management and staff both in Australia and Indonesia for their determination and diligence during such a busy and productive period. I also thank our shareholders for their loyalty and patience throughout the year.

The coming 12 months are set to be rewarding for Finders and I look forward to further updating you on the goals we have set.

Gary Comb

Chairman

31 March 2016

MANAGING DIRECTOR'S REVIEW

Wetar Copper Project, Indonesia (Finders ‐ 72%)

Background

The Wetar Copper Project is located on the remote and lightly populated island of Wetar in eastern Indonesia and comprises the development, mining and processing of massive sulphide deposits (Kali Kuning and Lerokis) located at or near the northern coastline of the island. The Project Ore Reserve is estimated at

8.9 million tonnes at an average copper grade of 2.4%, containing approximately 210,000 tonnes of copper.

Finders is currently operating a 3,000 tonnes per annum (t.p.a.) solvent extraction electrowinning (SX‐EW) copper cathode plant with construction activities at an advanced stage to expand the project to 28,000

3,000 t.p.a. SX‐EW Plant

The 3,000 t.p.a. plant performed to expectations throughout the year, producing a total of 1,226 tonnes of copper cathode with 889 tonnes of LME Grade A copper cathode sold at an average price of US$2.35/lb without any specification issues.

Process improvements were made to the heap leach pads following the introduction of raincoats for the purpose of shedding water during the wet season. The covers had previously restricted the flow of air during the heap aeration process, lowering recovered copper.

Ore stacking on the new Gold Pit Leach Pad (GPLP) commenced during the June 2015 quarter, with the GPLP providing sufficient capacity to allow for continuous crushing and stacking of ore until the main leach pads in the Kali Kuning Valley (KKV) are completed.

Late in the year, focus switched to stacking of the KKV heap leach pads in preparation for commissioning of the 25,000 t.p.a. SX‐EW plant, with the stacker and conveyors being moved for use with the new crushing circuit. At year end, ore mining was well advanced ahead of crusher commissioning, with more than 90,000 tonnes of ore stockpiled.

25,000 t.p.a SX‐EW Plant Construction

Development activities for the 25,000 t.p.a. SX‐EW expansion project commenced in late 2014 and construction was well advanced by year end.

Major earthmoving and construction works completed during 2015 included:

• Site works for 25,000 t.p.a. plant and other mine infrastructure

• Gold Pit Leach Pad

• Intermediate Leach Solution and Raffinate Pond

• Wetlands

• Emergency Airstrip

• Stormwater Pond 2

• Concrete works for the new SX‐EW plant

• Accommodation camp and associated facilities

• Power station

• Office and mess facilities

• On‐site medical clinic

  
  

  The majority of construction activities were complete by year end assisted by a late commencement to the wet season. The schedule has slipped slightly due to delivery delays on some materials, including structural steel. Activities outstanding as at 31 December 2015 included;

  • Construction of Stormwater Pond 3

  • Construction and stacking of the KKV leach pad

  • Solution ponds servicing the new SX‐EW plant

  • Construction of the SX‐EW plant

  • Electrical works

  • Installation of new fuel storage tanks

  • Construction of the workshop and warehouse

First cathode production is expected early in the 2nd quarter of 2016 and the project remains on budget.

Project Upside

There are opportunities to extend the mine life beyond the initial 10.5 years as outlined in the revised BFS released to the ASX on 20 November 2013. Exploration is planned to resume in 2016, focussing initially on the nearby satellite Meron massive sulphide deposit and then on other copper and gold targets identified on the island by previous explorers, including Karkopang.