CORPORATE DIRECTORY 3

DIRECTORS' REPORT 4

AUDITORS INDEPENDENCE DECLARATION 23

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 25

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 26

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 27

CONSOLIDATED STATEMENT OF CASH FLOW 28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 29

DIRECTORS' DECLARATION 74

INDEPENDENT AUDITORS REPORT 75

CORPORATE GOVERNANCE STATEMENT 77

ASX ADDITIONAL INFORMATION 87

Directors

Auditors

Ian Ogilvie Managing Director PricewaterhouseCoopers Russell Neil Non-Executive Director Level 15, 125 St Georges Terrace David Yi Ngo Low Non-Executive Director Perth WA, 6000, Australia Trevor Butcher Independent Non-Executive Director

Susmit Shah Independent Non-Executive Director Solicitors

Clayton Utz

Company Secretary Level 15, 1 Bligh Street

Paul Jurman Sydney, NSW, 2000, Australia

Registered Office Norton Rose Fulbright Australia

C/o Corporate Consultants Pty Ltd Level 39, 108 St Georges Terrace

Level 1, Suite 5, The Business Centre Perth WA, 6000, Australia 55 Salvado Road

Subiaco, WA, 6008, Australia Susandarini & Partners

(In association with Norton Rose Fulbright

Principal Place of Business Australia)

C/o Corporate Consultants Pty Ltd Level 33, Equity Tower, Sudirman CBD

Level 1, Suite 5, The Business Centre Jl Jend Sudirman Kav 52-53

55 Salvado Road Jakarta, 12190, Indonesia

Subiaco, WA, 6008, Australia

Widyawan & Partners

Tel +61 (08) 9380 6789 The Energy 9th Floor, Sudirman CBD

Fax +61 (08) 9380 6761 Jl Jend Sudirman Kav 52-53

Jakarta, 12190, Indonesia

Stock Exchange

Australian Securities Exchange Limited ("ASX") Bankers

Level 40, Central Park, National Australia Bank Limited 152-158 St Georges Terrace

Perth, WA, 6000, Australia Share Registry

Advanced Share Registry Services

Quoted on the official list of the Australian 110 Stirling Highway

Securities Exchange Nedlands, WA, 6009, Australia

ASX Symbol: KRL Tel +61 (08) 9389 8033

Fax +61 (08) 9389 7871

Domicile and Country of Incorporation

Australia

Your directors present their report on the consolidated entity (referred to hereafter as the group) consisting of Kangaroo Resources Limited (KRL or the Company) and the entities it controlled at the end of, or during, the year ended 31 December 2015.

DIRECTORS AND COMPANY SECRETARIES

The directors and the company secretaries of the Company at any time during or since the end of the financial year are as follows:

Ian Ogilvie MIQ, MAusIMM, GIA (Cert) - Managing Director

Mr Ogilvie was appointed a director of Kangaroo Resources on 1 May 2013.

Mr Ogilvie has a civil and mining engineering background with over 35 years continuous mining industry experience, having worked in the UK, USA, Indonesian and Australian resource sectors as a mining contractor, a coal producer and also as a global supply chain manager.

Mr Ogilvie brings an extensive range of technical and management skills to KRL, developed through his long involvement in international operations, business development, field exploration, green-field developments, mining infrastructure, project management, risk management, joint ventures, mining contracts, cost estimating & tendering, asset valuations, corporate structures, project finance, acquisitions, supply chain logistics and also commodities trading.

Mr Ogilvie has been resident in Indonesia since 1995, engaged in a variety of senior management and country manager roles representing a number of major mining companies including Miller Mining, Adaro, Petrosea, Henry Walker Eltin, Kaltim Prima Coal and The Noble Group.

Mr Ogilvie joined KRL in April 2013 and was appointed Managing Director in May the same year. He did not hold any directorships in other listed companies in the previous 3 years.

David Low Yi Ngo BSc (Mechanical Engineering and Production) - Non-Executive Director

Mr Low was appointed a director of Kangaroo Resources on 13 June 2011.

Mr Low is Sales and Marketing manager for PT Bayan Resources Tbk. Mr Low has held various senior management roles within Indonesia and Asia over the past seven years and is currently CEO and Managing Director of Singapore entity Manhattan Resources Limited.

Mr Low did not hold any directorships in other listed companies in the previous 3 years.